<PAGE>
CALIFORNIA TAX-FREE INCOME FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN/1/
-------------------------- -----------------------------
12 MONTHS 6 MONTHS
08/31/95 02/28/95 08/31/94 ENDED 08/31/95 ENDED 08/31/95
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $10.81 $10.68 $10.71 6.68% 3.97%
- ------------------------------------------------------------------------
Class B Shares 10.81 10.69 10.72 5.37 3.09
- ------------------------------------------------------------------------
Class D Shares 10.80 10.67 10.71 6.04 3.71
- ------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
--------------------
PERIOD CAPITAL GAINS TOTAL
COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
09/16/85 -
12/31/85 $ 9.57 $ 10.09 $ -- $0.1827 7.41%
- -----------------------------------------------------------------------------
1986 10.09 11.18 -- 0.7883 19.18
- -----------------------------------------------------------------------------
1987 11.18 10.49 -- 0.7564 0.65
- -----------------------------------------------------------------------------
1988 10.49 10.74 -- 0.7908 10.20
- -----------------------------------------------------------------------------
1989 10.74 10.95 -- 0.7384 9.11
- -----------------------------------------------------------------------------
1990 10.95 10.88 0.0340 0.7877 6.18
- -----------------------------------------------------------------------------
1991 10.88 11.29 0.0268 0.7064 10.84
- -----------------------------------------------------------------------------
1992 11.29 11.29 0.1701 0.6504 7.49
- -----------------------------------------------------------------------------
1993 11.29 11.70 0.3052 0.6077 11.96
- -----------------------------------------------------------------------------
1994 11.70 10.09 0.0969 0.5844 (8.07)
- -----------------------------------------------------------------------------
01/01/95 -
08/31/95 10.09 10.81 -- 0.3848 10.67
- -----------------------------------------------------------------------------
Total: $0.6330 $6.9780
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 08/31/95: 117.38%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/01/91 - 12/31/91 $10.95 $11.29 $0.0268 $0.3043 6.20%
- ----------------------------------------------------------------------------
1992 11.29 11.29 0.1701 0.5631 6.67
- ----------------------------------------------------------------------------
1993 11.29 11.70 0.3052 0.5188 11.11
- ----------------------------------------------------------------------------
1994 11.70 10.10 0.0969 0.5029 (8.69)
- ----------------------------------------------------------------------------
01/01/95 - 08/31/95 10.10 10.81 -- 0.3311 9.64
- ----------------------------------------------------------------------------
Total: $0.5990 $2.2202
- ----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 26.01%
- ----------------------------------------------------------------------------
</TABLE>
Performance Summary Class D Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/02/92 - 12/31/92 $11.41 $11.28 $0.1701 $0.2625 2.68%
- ----------------------------------------------------------------------------
1993 11.28 11.69 0.3052 0.5477 11.40
- ----------------------------------------------------------------------------
1994 11.69 10.09 0.0969 0.5295 (8.47)
- ----------------------------------------------------------------------------
01/01/95 - 08/31/95 10.09 10.80 -- 0.3476 10.22
- ----------------------------------------------------------------------------
Total: $0.5722 $1.6873
- ----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 15.40%
- ----------------------------------------------------------------------------
</TABLE>
Average Annual Return
<TABLE>
<CAPTION>
% RETURN AFTER DEDUCTING
% RETURN WITHOUT SALES CHARGE MAXIMUM SALES CHARGE
--------------------------------------------------------------
CLASS CLASS
--------------------------------------------------------------
A* B** D*** A* B** D***
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months
Ended 09/30/95 9.17% 8.45% 8.71% 4.76% 3.45% 8.71%
- -------------------------------------------------------------------------------
Five Years
Ended 09/30/95 7.44 N/A N/A 6.57 N/A N/A
- -------------------------------------------------------------------------------
Ten Years Ended
09/30/95 8.53 N/A N/A 8.08 N/A N/A
- -------------------------------------------------------------------------------
Commencement of
Operations
Through
09/30/95+ 8.08 5.79 4.66 7.64 5.40 4.66
- -------------------------------------------------------------------------------
</TABLE>
/1/ Figures assume reinvestment of all dividends and capital gains distributions
at net asset value on the payable dates and do not include sales charges;
results would be lower for Class A and Class B shares if sales charges were
included.
* Maximum sales charge for Class A shares is 4% 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 6 years. Class B shares bear ongoing 12b-1 distribution
and service fees.
*** Class D shares are sold without initial or contingent deferred sales
charges but bear ongoing 12b-1 distribution and service fees.
+ Commencement of operations dates are September 16, 1985, July 1, 1991 and
July 2, 1992 for Class A, Class B and Class D shares, respectively. The data
above represents past performance of the Fund's shares, which is no
guarantee of future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Capital gain
distributions, distributions of income from market discount amortization and
gains realized on the sale of Fund shares are taxable.
1
<PAGE>
NATIONAL TAX-FREE INCOME FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN/1/
-------------------------- -----------------------------
12 MONTHS 6 MONTHS
08/31/95 02/28/95 08/31/94 ENDED 08/31/95 ENDED 08/31/95
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $11.45 $11.26 $11.36 6.50% 4.37%
- ------------------------------------------------------------------------
Class B Shares 11.45 11.26 11.36 5.70 3.98
- ------------------------------------------------------------------------
Class D Shares 11.45 11.26 11.36 5.96 4.11
- ------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12/03/84 - 12/31/84 $ 9.57 $ 9.60 -- $ -- 0.31%
$
- -----------------------------------------------------------------------------
1985 9.60 10.45 -- 0.8903 19.00
- -----------------------------------------------------------------------------
1986 10.45 11.39 -- 0.8246 17.38
- -----------------------------------------------------------------------------
1987 11.39 10.74 -- 0.7823 1.30
- -----------------------------------------------------------------------------
1988 10.74 11.06 -- 0.8244 10.98
- -----------------------------------------------------------------------------
1989 11.06 11.23 -- 0.8041 9.11
- -----------------------------------------------------------------------------
1990 11.23 11.15 -- 0.7810 6.26
- -----------------------------------------------------------------------------
1991 11.15 11.56 0.0365 0.7585 10.49
- -----------------------------------------------------------------------------
1992 11.56 11.62 0.1314 0.7043 8.01
- -----------------------------------------------------------------------------
1993 11.62 12.25 0.1208 0.6507 12.32
- -----------------------------------------------------------------------------
1994 12.25 10.75 0.0135 0.6264 (7.14)
- -----------------------------------------------------------------------------
01/01/95 - 08/31/95 10.75 11.45 -- 0.3784 10.12
- -----------------------------------------------------------------------------
Total: $0.3022 $8.0250
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 152.45%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/01/91 - 12/31/91 $11.19 $11.55 $0.0365 $0.3222 6.50%
- -----------------------------------------------------------------------------
1992 11.55 11.62 0.1314 0.6139 7.27
- -----------------------------------------------------------------------------
1993 11.62 12.25 0.1208 0.5599 11.49
- -----------------------------------------------------------------------------
1994 12.25 10.75 0.0135 0.5406 (7.84)
- -----------------------------------------------------------------------------
01/01/95 - 08/31/95 10.75 11.45 -- 0.3253 9.61
- -----------------------------------------------------------------------------
Total: $0.3022 $2.3619
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 28.67%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class D Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/02/92 - 12/31/92 $11.71 $11.62 $0.1314 $0.2766 2.78%
- -----------------------------------------------------------------------------
1993 11.62 12.25 0.1208 0.5904 11.77
- -----------------------------------------------------------------------------
1994 12.25 10.75 0.0135 0.5696 (7.60)
- -----------------------------------------------------------------------------
01/01/95 - 08/31/95 10.75 11.45 -- 0.3424 9.77
- -----------------------------------------------------------------------------
Total: $0.2657 $1.7790
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 16.52%
- -----------------------------------------------------------------------------
</TABLE>
Average Annual Return
<TABLE>
<CAPTION>
% RETURN AFTER DEDUCTING
% RETURN WITHOUT SALES CHARGE MAXIMUM SALES CHARGE
--------------------------------------------------------------
CLASS CLASS
--------------------------------------------------------------
A* B** D*** A* B** D***
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months
Ended 09/30/95 9.32% 8.50% 8.77% 4.96% 3.50% 8.77%
- -------------------------------------------------------------------------------
Five Years
Ended 09/30/95 7.71 N/A N/A 6.84 N/A N/A
- -------------------------------------------------------------------------------
Ten Years Ended
09/30/95 8.53 N/A N/A 8.09 N/A N/A
- -------------------------------------------------------------------------------
Commencement of
Operations
Through
09/30/95+ 8.98 6.22 4.97 8.57 5.83 4.97
- -------------------------------------------------------------------------------
</TABLE>
/1/ Figures assume reinvestment of all dividends and capital gains distributions
at net asset value on the payable dates, and do not include sales charges;
results would be lower for Class A and Class B if sales charges were
included.
* Maximum sales charge for Class A shares is 4% 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 6 years. Class B shares bear ongoing 12b-1 distribution
and service fees.
*** Class D shares are sold without initial or contingent deferred sales
charges but hear ongoing 12b-1 distribution and service fees.
+ Commencement of operations dates are December 3, 1984, July 1, 1991 and July
2, 1992 for Class A, Class B and Class D shares, respectively. The data
above represents past performance of the Fund's shares, which is no
guarantee of future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Capital gain
distributions, distributions of income from market discount amortization and
gains realized on the sale of Fund shares are taxable.
2
<PAGE>
MUNICIPAL HIGH INCOME FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN/1/
-------------------------- -----------------------------
12 MONTHS 6 MONTHS
08/31/95 02/28/95 08/31/94 ENDED 08/31/95 ENDED 08/31/95
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $10.16 $9.92 $10.14 6.53% 5.59%
- ------------------------------------------------------------------------
Class B Shares 10.16 9.92 10.13 5.85 5.21
- ------------------------------------------------------------------------
Class D Shares 10.16 9.92 10.13 6.12 5.34
- ------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
06/23/87 - 12/31/87 $ 9.58 $ 9.40 -- $0.3131 1.46%
$
- -----------------------------------------------------------------------------
1988 9.40 9.90 -- 0.8091 14.45
- -----------------------------------------------------------------------------
1989 9.90 10.09 -- 0.7380 9.66
- -----------------------------------------------------------------------------
1990 10.09 9.89 -- 0.7322 5.52
- -----------------------------------------------------------------------------
1991 9.89 10.38 0.0678 0.7144 13.32
- -----------------------------------------------------------------------------
1992 10.38 10.54 0.1406 0.6736 9.79
- -----------------------------------------------------------------------------
1993 10.54 10.97 0.2037 0.6180 12.14
- -----------------------------------------------------------------------------
1994 10.97 9.52 0.0260 0.5865 (7.77)
- -----------------------------------------------------------------------------
01/01/95 - 08/31/95 9.52 10.16 -- 0.3607 10.63
- -----------------------------------------------------------------------------
Total: $0.4381 $5.5456
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 91.27%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/01/91 - 12/31/91 $10.05 $10.38 $0.0678 $0.3170 7.21%
- -----------------------------------------------------------------------------
1992 10.38 10.54 0.1406 0.5930 8.95
- -----------------------------------------------------------------------------
1993 10.54 10.97 0.2037 0.5349 11.30
- -----------------------------------------------------------------------------
1994 10.97 9.52 0.0260 0.5103 (8.47)
- -----------------------------------------------------------------------------
01/01/95 - 08/31/95 9.52 10.16 -- 0.3174 10.16
- -----------------------------------------------------------------------------
Total: $0.4381 $2.2726
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 31.08%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class D Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/02/92 - 12/31/92 $10.50 $10.54 $0.0135 $0.2635 3.06%
- -----------------------------------------------------------------------------
1993 10.54 10.97 0.2037 0.5620 11.57
- -----------------------------------------------------------------------------
1994 10.97 9.52 0.0260 0.5339 (8.23)
- -----------------------------------------------------------------------------
01/01/95 - 08/31/95 9.52 10.16 -- 0.3324 10.32
- -----------------------------------------------------------------------------
Total: $0.2432 $1.6918
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 16.41%
- -----------------------------------------------------------------------------
</TABLE>
Average Annual Return
<TABLE>
<CAPTION>
% RETURN AFTER DEDUCTING
% RETURN WITHOUT SALES CHARGE MAXIMUM SALES CHARGE
-------------------------------- -----------------------------
CLASS CLASS
-------------------------------- -----------------------------
A* B** D*** A* B** D***
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months
Ended 09/30/95 9.35% 8.45% 8.83% 5.00% 3.45% 8.83%
- -------------------------------------------------------------------------------
Five Years
Ended 09/30/95 8.31 N/A N/A 7.42 N/A N/A
- -------------------------------------------------------------------------------
Commencement of
Operations
Through
09/30/95+ 8.24 6.69 4.99 7.70 6.31 4.99
- -------------------------------------------------------------------------------
</TABLE>
/1/ Figures assume reinvestment of all dividends and capital gains distributions
at net asset value on the payable date, and do not include sales charges;
results would be lower for Class A and Class B if sales charges were
included.
* Maximum sales charge for Class A shares is 4% 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 6 years. Class B shares bear ongoing 12b-1 distribution
and service fees.
*** Class D shares are sold without initial or contingent deferred sales
charges but bear ongoing 12b-1 distribution and service fees.
+ Commencement of operations dates are June 23, 1987, July 1, 1991 and July 2,
1992 for Class A, Class B and Class D shares, respectively. The data above
represents past performance of the Fund's shares, which is no guarantee of
future results. The investment return and principal value of an investment
in the Fund will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Capital gain distributions,
distributions of income from market discount amortization and gains realized
on the sale of Fund shares are taxable.
3
<PAGE>
NEW YORK TAX-FREE INCOME FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN/1/
-------------------------- -----------------------------
12 MONTHS 6 MONTHS
08/31/95 02/28/95 08/31/94 ENDED 08/31/95 ENDED 08/31/95
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $10.45 $10.27 $10.37 6.31% 4.45%
- ------------------------------------------------------------------------
Class B Shares 10.45 10.27 10.36 5.63 4.06
- ------------------------------------------------------------------------
Class D Shares 10.46 10.28 10.37 5.92 4.19
- ------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
09/23/88 - 12/31/88 $ 9.60 $ 9.61 -- $0.1630 1.82%
$
- -----------------------------------------------------------------------------
1989 9.61 9.84 -- 0.6931 9.90
- -----------------------------------------------------------------------------
1990 9.84 9.68 -- 0.6797 5.02
- -----------------------------------------------------------------------------
1991 9.68 10.22 -- 0.6637 12.31
- -----------------------------------------------------------------------------
1992 10.22 10.55 -- 0.6442 9.85
- -----------------------------------------------------------------------------
1993 10.55 11.26 0.0253 0.5796 12.72
- -----------------------------------------------------------------------------
1994 11.26 9.68 0.1017 0.5095 (8.48)
- -----------------------------------------------------------------------------
01/01/95 - 08/31/95 9.68 10.45 -- 0.3193 11.34
- -----------------------------------------------------------------------------
Total: $0.1270 $4.2521
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 68.13%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/01/91 - 12/31/91 $ 9.81 $10.22 -- $0.2930 7.25%
$
- -----------------------------------------------------------------------------
1992 10.22 10.55 -- 0.5654 8.91
- -----------------------------------------------------------------------------
1993 10.55 11.25 0.0253 0.4959 11.78
- -----------------------------------------------------------------------------
1994 11.25 9.68 0.1017 0.4362 (9.08)
- -----------------------------------------------------------------------------
01/01/95 - 08/31/95 9.68 10.45 -- 0.2741 10.86
- -----------------------------------------------------------------------------
Total: $0.1270 $2.0646
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 31.73%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class D Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/02/92 - 12/31/92 $10.45 $10.56 -- $0.2663 3.65%
$
- -----------------------------------------------------------------------------
1993 10.56 11.26 0.0253 0.5226 12.04
- -----------------------------------------------------------------------------
1994 11.26 9.69 0.1017 0.4613 (8.81)
- -----------------------------------------------------------------------------
01/01/95 - 08/31/95 9.69 10.46 -- 0.2892 11.01
- -----------------------------------------------------------------------------
Total: $0.1270 $1.5394
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
08/31/95: 17.54%
- -----------------------------------------------------------------------------
</TABLE>
Average Annual Return
<TABLE>
<CAPTION>
% RETURN WITHOUT SALES CHARGE % RETURN AFTER DEDUCTING
-------------------------------- MAXIMUM SALES CHARGE
-------------------------------
CLASS CLASS
-------------------------------- -------------------------------
A* B** D*** A* B** D***
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months
Ended
09/30/95 9.89% 8.98% 9.38% 5.49% 3.98% 9.38%
- -------------------------------------------------------------------------------
Five Years
Ended
09/30/95 8.51 N/A N/A 7.63 N/A N/A
- -------------------------------------------------------------------------------
Commencement
of Opera-
tions
Through
09/30/95+ 7.80 6.84 5.30 7.17 6.46 5.30
- -------------------------------------------------------------------------------
</TABLE>
/1/ Figures assume reinvestment of all dividends and capital gains distributions
at net asset value on the payable dates, and do not include sales charges;
results would be lower for Class A and Class B if sales charges were
included.
* Maximum sales charge for Class A shares is 4% 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 6 years. Class B shares bear ongoing 12b-1 distribution
and service fees.
*** Class D shares are sold without initial or contingent deferred sales
charges but bear ongoing 12b-1 distribution and service fees.
+ Commencement of operations dates are September 23, 1988, July 1, 1991 and
July 2, 1992 for Class A, Class B and Class D shares, respectively. The data
above represents past performance of the Fund's shares, which is no
guarantee of future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Capital gain
distributions, distributions of income from market discount amortization and
gains realized on the sale of Fund shares are taxable.
4
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - 98.60%
$ 3,250 California General
Obligation Bonds....... 10/01/00 to 11/01/00 8.250 to 9.100% $ 3,861,103
8,140 California Department of
Water Resources........ 12/01/13 to 12/01/20 6.000 to 6.125 8,162,144
5,000 California Educational
Facilities Authority
California Institute of
Technology............. 01/01/21 6.000 5,002,100
3,000 California Educational
Facilities Authority
Carnegie Institute of
Washington............. 10/01/23 5.600 2,799,390
2,000 California Educational
Facilities Authority
Claremont College...... 05/01/22 6.375 2,001,740
4,500 California Educational
Facilities Authority
Pepperdine University
(MBIA-Insured)......... 06/01/19 5.500 4,211,190
1,140 California Educational
Facilities Authority
St Mary's College Of
California (Pre-
refunded with U.S.
Government Securities
to 10/01/00 @ 102)..... 10/01/20 7.500 1,313,656
6,000 California Educational
Facilities Authority
Stanford University.... 01/01/13 to 11/01/16 6.000 to 6.750 6,241,305
15,750 California Educational
Facilities Authority
University of Southern
California............. 10/01/15 5.800 to 7.200 16,332,853
1,250 California Health
Facilities Financing
Authority Children's
Hospital of San
Francisco
(MBIA-Insured)......... 10/01/20 7.500 1,405,713
7,600 California Health
Facilities Financing
Authority
Kaiser Permanente
Hospital............... 10/01/15 to 10/01/19 6.750 to 9.125 7,963,806
4,000 California Health
Facilities Financing
Authority Marin General
Hospital (FSA-Insured). 08/01/14 5.500 3,779,680
540 California Health
Facilities Financing
Authority O'Connor
Hospital (Pre-refunded
with U.S. Government
Securities to 03/01/96
@ 102)................. 03/01/15 9.250 565,418
100 California Health
Facilities Financing
Authority St. Joseph's
Health System*......... 07/01/24 3.200 100,000
1,000 California Pollution
Control Financing
Authority
Atlantic Richfield..... 11/01/04 9.125 1,028,480
890 California Pollution
Control Financing
Authority Southern
California Edison...... 12/01/08 6.850 942,902
1,600 California Pollution
Control Financing
Authority Southern
California Edison*..... 02/28/08 3.450 1,600,000
3,500 California State
Department of
Transportation......... 03/01/16 6.500 3,595,900
1,355 California State
University............. 11/01/09 to 11/01/12 8.800 1,406,921
15 University of California
Faculty Mortgage....... 01/01/18 9.200 15,535
1,390 Beverly Hills
Certificates of
Participation.......... 06/01/15 to 06/01/19 6.750 to 7.000 1,436,939
710 Beverly Hills
Certificates of
Participation
(Pre-refunded with U.S.
Government Securities
to 06/01/99 @ 102)..... 06/01/15 7.000 788,043
1,505 Big Bear Lake Water
Revenue Bonds
(FGIC-Insured)......... 04/01/22 6.375 1,543,347
1,350 Contra Costa County
Transportation
Commission Sales Tax
Revenue Bonds.......... 03/01/07 6.875 1,442,475
4,000 Contra Costa Water
Authority (FGIC-
Insured)............... 10/01/20 5.750 3,880,960
6,175 Contra Costa Water
District (AMBAC-
Insured)............... 10/01/22 6.375 6,343,639
1,235 East Bay Municipal
Utility District
(AMBAC-Insured)........ 06/01/21 6.375 1,269,481
1,000 Intermodal Container
Transfer Facilities
Southern Pacific
Transfer Company....... 11/01/14 7.700 1,055,000
3,000 Kings River Conservation
District
Pine Flat Power........ 01/01/12 6.375 3,070,950
3,555 Long Beach Water Revenue
Bonds.................. 05/01/19 6.125 3,569,824
</TABLE>
5
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - (CONCLUDED)
$ 6,000 Los Angeles Department
of Airports (Pre-
refunded with U.S.
Government Securities
to 05/01/97 @ 102)..... 05/01/10 7.400% $ 6,440,580
5,000 Los Angeles Department
of Water & Power....... 01/15/31 7.100 5,610,900
1,500 Los Angeles Department
of Water & Power
(Crossover refunded to
02/15/99 @ 102)........ 02/15/19 7.200 1,650,885
4,595 Los Angeles Harbor
Department Revenue
Bonds.................. 08/01/20 6.400 4,704,269
990 Los Angeles Harbor
Department Revenue
Bonds (Pre-refunded
with U.S. Government
Securities to 09/01/99
@ 100)................. 09/01/15 8.700 1,071,576
3,500 Los Angeles Metropolitan
Transportation
Authority Sales Tax
Revenue (AMBAC
Insured)............... 07/01/17 5.500 3,292,275
5,700 Los Angeles
Transportation
Commission
Sales Tax Revenue
Bonds.................. 07/01/15 7.400 6,280,260
4,000 Los Angeles Wastewater
System
Revenue Bonds (MBIA-
Insured)............... 06/01/21 5.800 3,885,120
5,000 M-S-R Public Power
Agency of California... 07/01/19 6.875 5,219,200
955 Marin County Housing
Authority (FNMA
Insured)............... 09/01/07 9.200 987,795
9,000 Metropolitan Water
District of Southern
California............. 07/01/19 to 03/01/20 5.500 to 5.550 8,525,320
3,700 Newport Beach Health
Facilities
Hoag Memorial Hospital*. 10/01/22 3.600 3,700,000
5,000 Oakland General
Obligation Bonds
(FGIC Insured)......... 06/15/22 6.000 4,999,400
860 Orange County Mortgage
Revenue Bonds (GNMA)... 09/01/16 7.800 893,196
1,455 Pasadena Certificate of
Participation
Civic Center
(Pre-refunded with U.S.
Government Securities
to 12/01/99 @ 102)..... 12/01/14 7.000 1,636,322
1,500 Pasadena Certificate of
Participation
Convention Center...... 01/01/13 5.750 1,428,750
1,000 Riverside County
Certificate of
Participation.......... 12/01/15 7.875 1,050,460
6,250 Riverside Electric
Revenue Bonds.......... 10/01/15 6.000 6,227,938
1,000 Riverside Hospital
Revenue Kaiser
Permanente............. 12/01/15 9.000 1,029,140
3,000 Sacramento Utility
District Electric
Revenue Bonds (MBIA
Insured)............... 01/01/24 6.000 2,999,700
6,300 San Diego Industrial
Development Authority
San Diego Gas &
Electric............... 09/01/18 to 09/01/20 6.400 to 9.250 6,420,410
9,500 San Francisco Airport
Revenue Bonds
(AMBAC Insured)........ 05/01/13 6.500 9,986,496
8,000 San Francisco Sewer
(AMBAC Insured)........ 10/01/11 6.000 8,100,000
3,750 San Jose Airport Revenue
Bonds (MBIA Insured)... 03/01/16 5.750 3,670,500
2,800 Santa Barbara County
Certificate of
Participation
(Pre-refunded with U.S.
Government Securities
to 12/01/98 @ 102)..... 12/01/10 7.500 3,134,796
2,000 Santa Clara County
Financing Authority
Lease (AMBAC-Insured) . 11/15/20 6.750 2,141,080
5,085 Santa Monica Malibu
Unified School
District............... 08/01/18 5.500 4,746,288
5,000 Santa Monica Parking
Authority.............. 07/01/16 6.375 5,092,250
5,000 Southern California
Public Power Authority. 07/01/20 5.500 4,618,250
5,200 Stockton Health
Facilities Revenue St.
Joseph Medical Center
(MBIA Insured)......... 06/01/23 5.500 4,803,968
------------
Total Investments (cost -
$211,402,901) - 98.60%........... 221,077,617
Other assets in excess of liabili-
ties - 1.40%...................... 3,148,739
------------
Net Assets - 100.00%............... $224,226,356
============
</TABLE>
- -------
* Variable rate demand notes which are payable on demand. The maturity dates
shown are the stated maturities; the interest rates shown are the current rates
as of August 31, 1995.
AMBAC-American Municipal Bond Assurance Corporation
FGIC-Financial Guaranty Insurance Company
FNMA-Federal National Mortgage Association
FSA-Financial Security Assurance Incorporated
GNMA-Government National Mortgage Association
MBIA-Municipal Bond Investors Assurance
See accompanying notes to financial statements
6
<PAGE>
NATIONAL TAX-FREE INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - 99.54%
Alabama - 0.84%
$ 4,000 Birmingham Warrants Series A................... 06/01/13 5.700% $ 3,964,360
------------
Alaska - 1.81%
5,800 Valdez Marine Terminal Revenue
Exxon Pipeline Company Project*............... 10/01/25 3.750 5,800,000
2,500 Valdez Marine Terminal British Petroleum Co.... 12/01/25 7.125 2,709,975
------------
8,509,975
------------
Arizona - 2.37%
10,510 Maricopa County Community College District..... 07/01/07 6.000 11,113,800
------------
California - 1.20%
5,000 California State (FGIC Insured)................ 11/01/12 7.000 5,652,700
------------
Connecticut - 3.38%
15,885 Connecticut State.............................. 03/15/14 to 03/15/15 5.800 15,871,394
------------
Florida - 8.92%
125 Florida General Obligation Bonds............... 07/01/14 10.000 185,604
14,670 Florida State Board of Education............... 01/01/15 to 06/01/20 5.900 to 7.000 15,036,986
2,000 Hillsborough County Aviation Authority Tampa
Airport (Pre-refunded with U.S. Government
Securities to 10/01/99 @ 102) (AMBAC Insured). 10/01/09 7.100 2,249,200
6,200 Hillsborough County Pollution Control*......... 05/15/18 3.700 6,200,000
8,000 Jacksonville Electric Authority................ 10/01/13 to 10/01/15 5.375 to 6.900 7,935,140
4,100 Jacksonville Electric Authority (Crossover
refunded to 10/01/95 @ 102)................... 10/01/15 8.500 4,198,441
1,750 Marion County Hospital District
Monroe Regional Medical Center (FGIC Insured). 10/01/20 6.000 1,749,860
3,800 Palm Beach County Criminal Justice Facilities
Board (Pre-refunded with U.S. Government
Securities to 06/01/00 @ 102) (FGIC Insured).. 06/01/11 7.250 4,325,464
------------
41,880,695
------------
Georgia - 4.96%
3,000 Georgia Municipal Electric Authority........... 01/01/20 8.375 3,209,100
500 Georgia Municipal Electric Authority (Crossover
refunded to 01/01/97 @ 102).................. 01/01/20 8.375 534,850
5,000 Georgia Municipal Electric Authority (Pre-
refunded
with U.S. Government Securities to 01/01/99 @
102).......................................... 01/01/09 to 01/01/25 7.250 to 7.400 5,546,110
5,000 Conyers Georgia Water and Sewage Revenue
(AMBAC Insured)............................... 07/01/15 6.600 5,346,900
8,000 Hall County School District (AMBAC Insured).... 12/01/14 6.700 8,635,920
------------
23,272,880
------------
</TABLE>
7
<PAGE>
NATIONAL TAX-FREE INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - (CONTINUED)
Hawaii - 0.99%
$ 4,515 Hawaii General
Obligation Bonds....... 01/01/15 6.250% $ 4,633,203
------------
Illinois - 5.94%
4,335 Illinois Development
Finance Authority
Citizens Utilities..... 08/01/20 7.150 4,594,103
2,000 Illinois Health
Facilities Authority
Children's Memorial
Hospital (MBIA
Insured)............... 11/01/13 7.125 2,162,900
1,000 Illinois Health
Facilities Authority
Evangelical Hospital... 04/15/17 6.750 1,047,760
2,675 Illinois Health
Facilities Authority
Sherman Hospital (MBIA
Insured)............... 08/01/21 6.750 2,794,653
5,000 Bloomingdale Water (MBIA
Insured)............... 05/01/16 6.400 5,143,250
5,000 Chicago Gas Supply
People's Gas........... 03/01/15 6.875 5,353,800
1,170 Northern Illinois
University (Pre-
refunded with
U.S. Government
Securities to 04/01/09
@ 100)................. 04/01/13 10.400 1,656,088
4,620 Regional Transportation
Authority (FGIC
Insured)............... 06/01/14 7.100 5,120,069
------------
27,872,623
------------
Indiana - 1.06%
3,000 Indiana Health Facility
Finance Authority
Methodist Hospital of
Indiana................ 09/01/15 5.750 2,843,160
2,000 Purdue University....... 07/01/15 6.700 2,131,340
------------
4,974,500
------------
Kentucky - 2.44%
1,000 Kentucky Development
Finance Authority
Baptist Hospital-(Pre-
refunded with U.S.
Government Securities
to 09/01/99 @ 102)
(MBIA Insured)......... 09/01/15 7.200 1,122,790
4,855 Kentucky State Turnpike
Authority (AMBAC
Insured)............... 07/01/12 5.750 4,896,025
5,010 Louisville & Jefferson
County (AMBAC Insured). 05/15/16 6.750 5,449,277
------------
11,468,092
------------
Louisiana - 1.88%
800 Louisiana Offshore
Terminal Authority*.... 09/01/08 3.850 800,000
4,500 Louisiana Offshore
Terminal Authority..... 09/01/10 7.600 4,964,355
1,500 Louisiana Public
Facilities Authority
Loyola University
(Crossover pre-refunded
to
10/01/95 @ 102)........ 10/01/10 9.750 1,537,440
1,400 Louisiana Public
Facilities Authority
Tulane University (Pre-
refunded with U.S.
Government Securities
to 08/15/97 @ 102)..... 08/15/15 8.000 1,531,040
------------
8,832,835
------------
Maryland - 1.12%
5,020 Anne Arundel County
Consolidated General
Improvement............ 08/01/14 to 08/01/15 6.300 5,280,086
------------
Massachusetts - 8.79%
20,000 Massachusetts General
Obligation Bonds....... 06/01/13 6.500 21,147,000
3,290 Massachusetts General
Obligation Bonds
(FGIC Insured)......... 11/01/13 to 11/01/14 7.000 3,649,728
4,850 Massachusetts State
Special Obligation
Revenue ............... 06/01/14 5.800 4,800,288
</TABLE>
8
<PAGE>
NATIONAL TAX-FREE INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - (CONTINUED)
Massachusetts - (concluded)
$ 1,200 Massachusetts Water
Pollution Abatement
Trust.................. 02/01/14 5.700% $ 1,181,124
8,315 Massachusetts Water
Resources Authority
(Pre-refunded
with U.S. Government
Securities to 07/15/02
@ 102)................. 07/15/21 6.500 9,342,068
1,000 Massachusetts Water
Resources Authority
(Pre-refunded
with U.S. Government
Securities to 04/01/00
@ 102)................. 04/01/16 7.500 1,140,590
------------
41,260,798
------------
Michigan - 4.55%
1,000 Michigan State Hospital
Finance Authority
McLaren Regional
Medical Center (Pre-
refunded with U.S.
Government Securities
to 09/15/01 @ 102)..... 09/15/21 7.500 1,168,880
6,500 Lake Orion Community
School District
(AMBAC Insured)........ 05/01/15 5.800 6,469,190
5,695 Lansing Building
Authority.............. 06/01/15 5.800 5,582,865
7,850 Royal Oak Hospital
Finance Authority
William Beaumont
Hospital............... 01/01/19 to 01/01/20 6.625 to 6.750 8,152,832
------------
21,373,767
------------
Minnesota - 1.34%
6,000 Minnesota Public
Facilities Authority
Water Pollution........ 03/01/15 6.250 6,302,340
------------
Nebraska - 1.94%
5,930 Nebraska Public Power
District............... 01/01/15 to 01/01/22 5.375 to 6.250 5,703,961
3,500 Omaha Public Power
District............... 02/01/17 5.700 3,407,005
------------
9,110,966
------------
Nevada - 0.59%
2,810 Clark County Sanitation
District (FGIC
Insured)............... 07/01/11 5.700 2,792,381
------------
New Jersey - 1.84%
1,650 New Jersey Highway
Authority
Garden State Parkway... 01/01/19 5.750 1,616,621
7,000 New Jersey State
Transportation Trust
Fund Authority
Transportation Systems
Series B............... 06/15/14 5.750 7,005,180
------------
8,621,801
------------
New Mexico - 3.26%
4,500 Albuquerque Airport..... 07/01/19 6.500 4,545,720
8,000 Farmington Pollution
Control
Southern California
Edison................. 04/01/21 7.200 8,723,360
2,000 Santa Fe Water Revenue
(AMBAC Insured)........ 06/01/24 6.300 2,051,080
------------
15,320,160
------------
New York - 13.44%
900 New York State Dormitory
Authority Revenue Bonds
Oxford University Press
Incorporated*.......... 07/01/23 3.450 900,000
7,300 New York State
Environmental
Facilities Corporation. 06/15/12 to 06/15/14 6.875 to 7.500 8,102,644
2,630 New York State Local
Government Assistance
Corporation (Pre-
refunded with U.S.
Government Securities
to 4/01/01 @ 102)...... 04/01/16 7.000 2,997,937
</TABLE>
9
<PAGE>
NATIONAL TAX-FREE INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - (CONTINUED)
New York - (concluded)
$14,900 New York State Power
Authority.............. 01/01/18 6.750% $ 15,950,748
12,300 New York City General
Obligation*............ 08/01/19 to 08/15/23 3.750 to 3.850 12,300,000
9,135 New York City Municipal
Water Finance
Authority.............. 06/15/12 to 06/15/19 6.000 to 7.100 9,751,553
3,100 Triborough Bridge &
Tunnel Authority....... 01/01/10 7.100 3,381,697
10,000 United Nations
Development
Corporation............ 07/01/26 6.000 9,752,200
------------
63,136,779
------------
North Carolina - 1.60%
2,135 North Carolina Eastern
Municipal Power Agency. 01/01/21 7.250 2,204,857
4,000 North Carolina Medical
Care Facility
Rex Hospital........... 06/01/17 6.250 4,109,680
1,250 Fayetteville Public
Works
Commission Revenue
(AMBAC Insured)........ 03/01/13 5.250 1,178,975
------------
7,493,512
------------
Ohio - 0.48%
500 Ohio Higher Education
Facilities Authority
Kenyon College (Pre-
refunded with U.S.
Government Securities
to 12/01/96 @ 102)..... 12/01/16 7.125 529,035
1,000 Ohio State
Infrastructure
Improvement............ 08/01/13 6.200 1,048,050
650 Columbus General
Obligation............. 06/15/11 5.650 657,261
------------
2,234,346
------------
Oklahoma - 0.81%
3,500 Grand River Dam
Authority Revenue
(AMBAC Insured)........ 06/01/11 6.250 3,796,975
------------
Oregon - 2.29%
10,400 Portland Sewer Systems
Revenue................ 06/01/15 6.250 10,735,607
------------
Pennsylvania - 1.95%
3,700 Bucks County............ 05/01/15 5.950 3,723,939
5,400 Pennsylvania State
Higher Educational
Facilities Authority-
University of
Pennsylvania........... 09/01/14 5.900 5,440,500
------------
9,164,439
------------
Puerto Rico - 0.55%
1,500 Puerto Rico Commonwealth
(MBIA Insured)......... 07/01/15 5.650 1,491,015
1,000 Puerto Rico Industrial
Medical & Environmental
Pollution Control
Facilities
Warner Lambert......... 05/01/14 7.600 1,115,350
------------
2,606,365
------------
</TABLE>
10
<PAGE>
NATIONAL TAX-FREE INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - (CONCLUDED)
South Carolina - 1.19%
$ 5,000 South Carolina Public
Service Authority
Santee Cooper Project.. 07/01/26 6.500% $ 5,573,850
------------
Texas - 11.65%
5 Texas Housing Agency
Mortgage............... 09/01/16 9.375 5,138
18,200 Texas State Public
Finance Authority...... 10/01/12 to 10/01/15 5.900 to 6.000 18,507,228
2,660 Bexar Metropolitan Water
District Waterworks.... 05/01/15 6.000 2,656,675
5,125 El Paso Independent
School District........ 02/15/14 6.000 5,172,099
4,200 Gulf Coast Waste
Disposal Authority
Pollution Control
Revenue
Amoco Oil*............. 10/01/17 3.750 4,200,000
710 Harris County Toll Road
Authority (AMBAC
Insured)............... 08/15/17 6.500 737,775
7,665 Houston Water & Sewer
System (AMBAC Insured). 12/01/17 6.375 7,884,066
7,750 Houston Water & Sewer
System................. 12/01/14 6.375 7,936,465
3,000 San Antonio Water (MBIA
Insured)............... 05/15/10 6.500 3,187,920
4,000 Texarkana Health
Facilities Development
Corporation Wadley
Regional Medical Center
(MBIA Insured)......... 10/01/19 7.000 4,419,080
------------
54,706,446
------------
Utah - 1.34%
5,975 Intermountain Power
Agency................. 07/01/16 to 07/01/19 7.200 to 7.500 6,294,141
------------
Virginia - 3.96%
5,850 Virginia State Public
Facilities Authority... 06/01/15 6.500 6,299,982
7,465 Fairfax County Public
Improvement............ 06/01/11 to 06/01/13 5.400 to 5.500 7,342,075
4,000 Fairfax County Water
Authority.............. 04/01/14 5.750 3,892,960
1,000 Hampton Roads Medical
College................ 11/15/16 6.875 1,057,910
------------
18,592,927
------------
Wyoming - 1.06%
4,800 Lincoln County Pollution
Control*............... 11/01/14 to 08/01/15 3.750 4,800,000
200 Platte County Pollution
Control Revenue*....... 07/01/14 3.900 200,000
------------
5,000,000
------------
Total Investments (cost -
$446,381,824) - 99.54%........... 467,444,743
Other assets in excess of
liabilities - 0.46%............... 2,171,829
------------
Net Assets - 100.00%............... $469,616,572
============
</TABLE>
- -------
* Variable rate demand notes and variable rate certificates of participation
which are payable on demand. The maturity dates shown are the stated
maturities; the interest rates are the current rates as of August 31, 1995.
AMBAC-American Municipal Bond Assurance Corporation
FGIC-Financial Guaranty Insurance Company
MBIA-Municipal Bond Investors Assurance
See accompanying notes to financial statements
11
<PAGE>
MUNICIPAL HIGH INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - 100.18%
Alabama - 1.48%
$ 1,500 Courtland Industrial
Development Board
Champion International. 12/01/13 7.200% $ 1,612,635
------------
Arizona - 3.08%
3,000 Gila County Industrial
Development Authority
ASARCO................. 07/01/06 8.900 3,332,220
------------
California - 2.18%
2,275 Foothill/Eastern
Transportation Corridor
Agency................. 01/01/34 6.000 2,073,389
300 Santa Clara County
California Transit
District*.............. 06/01/15 3.500 300,000
------------
2,373,389
------------
Colorado - 2.95%
3,000 Denver City & County
Airport................ 11/15/25 7.250 3,207,180
------------
Georgia - 5.17%
675 Municipal Electric
Authority of Georgia... 01/01/20 8.375 722,047
2,500 Effingham County
Development Authority
Fort Howard Paper...... 10/01/05 7.900 2,632,175
2,500 Tri City Hospital
Authority
South Fulton Medical
Center................. 07/01/16 6.375 2,263,875
------------
5,618,097
------------
Illinois - 11.97%
750 Illinois Development
Finance Authority
Illinois Power......... 07/01/21 7.375 810,922
6,000 Illinois Educational
Facilities Authority
Columbia College....... 12/01/17 to 12/01/18 6.125 to 6.875 5,970,640
545 Illinois Health
Facilities Authority
Hinsdale Health System. 11/15/19 9.500 638,462
1,000 Illinois Health
Facilities Authority
Holy Cross Hospital.... 03/01/14 6.700 985,420
2,000 Chicago O'Hare
International Airport
American Airlines...... 12/01/24 8.200 2,282,520
2,340 Chicago O'Hare
International Airport
Delta Airlines......... 05/01/18 6.450 2,320,438
------------
13,008,402
------------
Indiana - 6.96%
1,000 Indiana Health Facility
Financing Authority
Jackson County Schneck
Memorial Hospital...... 02/15/22 7.500 1,029,510
1,000 Indiana State
Development Finance
Authority
Pollution Control
Revenue................ 12/01/12 6.850 1,017,850
1,300 Crawfordsville Economic
Development Authority
Kroger Co. ............ 11/01/12 7.700 1,384,110
4,000 Indianapolis Airport
Facility
Federal Express........ 04/01/17 6.800 4,133,280
------------
7,564,750
------------
</TABLE>
12
<PAGE>
MUNICIPAL HIGH INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - (CONTINUED)
Kentucky - 2.20%
$ 1,250 Kenton County Airport
Delta Airlines......... 02/01/22 7.250% $ 1,312,400
1,000 Russell Health Financing
Authority
Franciscan Sisters of
the Poor Health System. 07/01/15 8.100 1,078,760
------------
2,391,160
------------
Louisiana - 8.46%
8,905 Orleans Levee District.. 11/01/14 to 11/01/15 8.250 9,194,413
------------
Massachusetts - 1.00%
1,000 Agawam Resource Recovery
Springfield Project.... 12/01/08 8.500 1,078,390
------------
Michigan - 3.99%
3,000 Greater Detroit Resource
Recovery Authority..... 12/13/08 9.250 3,127,140
1,150 Monroe County Pollution
Control
Detroit Edison......... 12/01/16 10.500 1,203,142
------------
4,330,282
------------
New Hampshire - 0.76%
800 New Hampshire Higher
Educational Health Care
Facilities--St. Joseph
Hospital............... 01/01/16 7.500 825,296
------------
New Jersey - 5.22%
5,500 New Jersey Health Care
Facilities Financing
Authority Columbus
Hospital............... 07/01/21 7.500 5,669,510
------------
New Mexico - 4.19%
4,475 Chaves County Hospital
Revenue Bonds
Eastern New Mexico
Medical Center......... 12/01/10 to 12/01/22 7.250 4,551,501
------------
New York - 7.74%
800 New York State Dormitory
Authority Revenue Bonds
Oxford University Press
Incorporated*.......... 07/01/23 3.450 800,000
850 Brookhaven Industrial
Development Agency
St. Joseph's College... 04/01/08 8.100 936,199
3,000 Hempstead Town
Industrial Development
Agency American Refuel. 12/01/05 7.375 3,098,370
3,540 New York City........... 08/01/07 to 08/01/19 6.000 to 8.250 3,575,994
------------
8,410,563
------------
Ohio - 1.71%
1,150 Butler County Hospital
Facilities
Ft. Hamilton Hughes
Memorial Hospital...... 01/01/10 7.500 1,195,045
600 Meigs County Kroger
Co. ................... 10/01/11 8.375 657,198
------------
1,852,243
------------
</TABLE>
13
<PAGE>
MUNICIPAL HIGH INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- ------------------ -------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - (CONCLUDED)
Pennsylvania - 8.12%
$ 1,450 Pennsylvania State
Higher Education
Drexel University ..... 05/01/17 6.375% $ 1,449,826
1,975 Allegheny County
Hospital Development
Authority
South Side Hospital.... 06/01/03 8.625 2,098,062
1,150 Beaver County Industrial
Development Authority
Cleveland Electric..... 09/01/15 10.500 1,173,000
1,500 Beaver County Industrial
Development Authority
Pollution Control
Revenue................ 05/01/20 7.750 1,547,460
2,610 Philadelphia Hospitals
and Higher Education
Facilities Authority--
Jeanes Health Systems.. 07/01/10 6.600 2,551,849
------------
8,820,197
------------
Tennessee - 5.71%
5,950 Memphis Shelby County
Airport
Federal Express........ 09/01/12 6.750 6,202,280
------------
Texas - 8.78%
1,875 El Paso International
Airport Revenue Bonds
Marriott Hotel......... 03/01/22 7.875 1,894,012
300 Harris County Industrial
Development Corporation
Pollution Control
Revenue*............... 03/01/24 3.350 300,000
2,300 Harris County Industrial
Development GATX....... 02/01/22 6.950 2,376,636
2,000 Houston Water & Sewer
System................. 12/01/14 6.375 2,048,120
2,600 Port of Corpus Christi
Industrial Development
Corporation--Valero
Industries............. 06/01/17 10.250 2,919,696
------------
9,538,464
------------
Utah - 2.28%
2,350 Intermountain Power
Agency................. 07/01/19 7.200 2,480,073
------------
Virginia - 0.95%
1,000 Virginia College
Building Authority
Marymount University... 07/01/22 7.000 1,033,070
------------
West Virginia - 3.20%
1,900 Harrison County
Commercial Development
Bonds
Kroger Co. ............ 11/01/14 8.100 2,081,279
1,300 Kanawha County
Commercial Development
Bonds
Kroger Co. ............ 10/01/11 8.000 1,398,566
------------
3,479,845
------------
Wisconsin - 2.08%
2,150 Janesville Industrial
Development Revenue
Bonds
Simmons Manufacturing
Co. (Paramount
Communications)........ 10/15/17 7.000 2,259,091
------------
Total Investments (cost -
$103,917,804) - 100.18%.......... 108,833,051
Liabilities in excess of other
assets - (0.18)%.................. (199,982)
------------
Net Assets - 100.00%............... $108,633,069
============
</TABLE>
- -------
* Variable rate demand notes and variable rate certificates of participation
which are payable on demand. The maturity dates shown are the stated
maturities; the interest rates shown are the current rates as of August 31,
1995.
See accompanying notes to financial statements
14
<PAGE>
NEW YORK TAX-FREE INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- -----------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - 99.35%
$1,705 Metropolitan
Transportation
Authority.............. 07/01/11 to 07/01/17 5.500 to 6.250% $ 1,659,388
1,000 Metropolitan
Transportation
Authority (FGIC
Insured)............... 07/01/18 6.500 1,044,230
700 Metropolitan
Transportation
Authority (MBIA
Insured)............... 01/01/08 6.875 762,944
1,465 Municipal Assistance
Corporation............ 07/01/06 to 07/01/08 6.900 to 7.625 1,565,399
400 New York State Dormitory
Authority Revenue Bonds
City University of New
York................... 07/01/16 6.500 400,848
3,000 New York State Dormitory
Authority Revenue Bonds
Columbia University.... 07/01/14 to 07/01/15 4.750 to 5.750 2,699,340
1,200 New York State Dormitory
Authority Revenue Bonds
Cornell University..... 07/01/06 to 07/01/30 6.875 to 7.375 1,287,331
40 New York State Dormitory
Authority Revenue Bonds
Fordham University
(AMBAC Insured)........ 07/01/15 7.200 44,637
1,300 New York State Dormitory
Authority Revenue Bonds
Oxford University Press
Incorporated*.......... 07/01/23 3.450 1,300,000
585 New York State Dormitory
Authority Revenue Bonds
Rockefeller University. 07/01/14 7.375 642,494
2,015 New York State Dormitory
Authority Revenue Bonds
State University of New
York................... 05/15/16 to 07/01/18 6.000 to 7.600 2,054,012
1,600 New York State Dormitory
Authority Revenue Bonds
Union College (FGIC
Insured)............... 07/01/10 5.750 1,613,072
1,200 New York State Energy
Research & Development
Brooklyn Union Gas..... 12/01/20 7.000 1,237,692
800 New York State Energy
Research & Development
Central Hudson Gas &
Electric (FGIC
Insured)............... 10/01/14 7.375 888,008
2,400 New York State Energy
Research & Development
Consolidated Edison
Company................ 08/15/20 6.100 2,396,856
700 New York State Energy
Research & Development
Niagara Mohawk......... 11/01/25 8.875 716,660
500 New York State Energy
Research & Development
Niagara Mohawk (FGIC
Insured)............... 10/01/13 6.625 530,585
1,500 New York State
Environmental
Facilities Corporation
Spring Valley Water
(AMBAC Insured)........ 08/01/24 6.150 1,520,115
1,400 New York State
Environmental
Facilities Corporation
State Water Pollution
Control................ 06/15/10 to 06/15/12 7.250 to 7.500 1,558,984
300 New York State Housing
Finance Agency......... 09/15/12 7.300 323,541
3,100 New York State Local
Government Assistance
Corporation............ 04/01/18 to 04/01/20 5.500 to 6.500 3,076,846
580 New York State Medical
Care Facilities
Hospital & Nursing (FHA
Insured)............... 02/15/09 7.500 625,837
1,500 New York State Medical
Care Facilities
Hospital & Nursing
(Huntington Hospital).. 11/01/14 6.500 1,494,930
185 New York State Mortgage
Agency................. 10/01/15 7.950 197,891
1,000 New York State Power
Authority.............. 01/01/23 6.250 1,018,710
2,100 New York State Thruway
Authority
Thruway Revenue........ 01/01/19 5.750 2,011,443
2,000 New York State Thruway
Authority
Highway and Bridge
Trust Fund............. 04/01/14 6.000 1,993,200
850 New York State Thruway
Authority
Highway & Bridge Trust
Fund (MBIA Insured).... 04/01/15 5.500 814,572
</TABLE>
15
<PAGE>
NEW YORK TAX-FREE INCOME FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- -----------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - (CONCLUDED)
$1,600 Port Authority of New
York & New Jersey...... 08/01/14 5.625% $ 1,544,832
1,350 Triborough Bridge &
Tunnel Authority....... 01/01/10 to 01/01/13 6.000 to 7.100 1,395,796
700 Triborough Bridge &
Tunnel Authority (MBIA
Insured)............... 01/01/17 6.625 739,578
1,500 Battery Park City
Authority.............. 11/01/20 5.700 1,413,990
350 Brookhaven Industrial
Development Agency
St. Joseph's College... 04/01/08 8.100 385,494
1,000 Erie County Water
Revenue Authority
(AMBAC Insured) 12/01/14 6.750 1,110,420
1,500 Hempstead Town
Industrial Development
Agency American Refuel. 12/01/05 7.375 1,549,185
3,050 New York City........... 06/01/05 to 05/15/20 6.000 to 8.250 3,052,186
2,000 New York City Industrial
Development Agency
Rockefeller Foundation. 07/01/23 5.375 1,877,860
3,030 New York City Industrial
Development Bonds
Lighthouse Project..... 07/01/22 6.500 3,086,631
2,545 New York City Municipal
Water Finance
Authority.............. 06/15/12 to 06/15/21 6.250 to 7.100 2,602,895
870 New York City Trust for
Cultural Resources
Museum Of Modern Art
(AMBAC Insured)........ 01/01/12 5.400 843,317
2,200 Niagara Falls (FGIC
Insured)............... 06/15/08 to 06/15/11 5.500 to 5.550 2,198,247
1,250 Oneida Herkimer Waste
Management Authority... 04/01/14 6.750 1,267,488
700 Westchester County...... 11/01/05 to 11/01/07 6.700 807,951
1,000 Puerto Rico Electric
Power Authority Power
Revenue................ 07/01/15 6.000 989,600
250 Puerto Rico Industrial
Medical & Environmental
Authority Baxter
Travenol............... 09/01/12 8.000 280,185
400 Puerto Rico Industrial
Medical & Environmental
Authority Dr. Pila
Hospital (Pre-refunded
to 08/01/98 @ 102) (FHA
Insured)............... 08/01/08 7.700 438,276
785 Puerto Rico Industrial
Medical & Environmental
Authority Warner
Lambert................ 05/01/14 7.600 875,550
-----------
Total Investments (cost -
$59,934,712) - 99.35%............ 61,939,046
Other assets in excess of liabili-
ties - 0.65%...................... 406,790
-----------
Net Assets - 100.00%............... $62,345,836
===========
</TABLE>
- -------
* Variable rate demand notes and variable rate certificates of participation
which are payable on demand. The maturity dates shown are the stated
maturities; the interest rates shown are the current rates as of August 31,
1995.
AMBAC-American Municipal Bond Assurance Corporation
FGIC-Financial Guaranty Insurance Company
FHA-Federal Housing Authority
MBIA-Municipal Bond Investors Assurance
See accompanying notes to financial statements
16
<PAGE>
PAINEWEBBER
STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
CALIFORNIA NATIONAL MUNICIPAL NEW YORK
TAX-FREE TAX-FREE HIGH TAX-FREE
INCOME FUND INCOME FUND INCOME FUND INCOME FUND
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Assets
Investments in
securities, at value
(cost-$211,402,901,
$446,381,824,
$103,917,804 and
$59,934,712,
respectively).......... $221,077,616 $467,444,743 $108,833,051 $61,939,046
Cash.................... 54,165 23,960 50,012 48,423
Interest receivable..... 4,208,159 7,547,671 2,155,448 869,452
Receivable for shares of
beneficial interest
sold................... 66,081 76,068 76,333 10,000
Receivable for
investments sold....... -- -- -- 885,860
Other assets............ 37,731 87,662 61,475 29,844
------------ ------------ ------------ -----------
Total assets............ 225,443,752 475,180,104 111,176,319 63,782,625
------------ ------------ ------------ -----------
Liabilities
Dividends payable....... 741,646 971,426 485,101 237,361
Payable to affiliates... 176,915 374,472 104,741 61,625
Payable for shares of
beneficial interest
repurchased............ 166,722 1,342,091 282,328 68,236
Payable for investments
purchased.............. -- 2,630,598 1,514,854 979,917
Accrued expenses and
other liabilities...... 132,114 244,945 156,226 89,650
------------ ------------ ------------ -----------
Total liabilities....... 1,217,397 5,563,532 2,543,250 1,436,789
------------ ------------ ------------ -----------
Net Assets
Beneficial interest
shares of $0.001 par
value outstanding
(unlimited amount
authorized)............ 224,071,945 460,547,310 109,757,973 62,246,675
Accumulated net realized
losses from investment
transactions........... (9,520,305) (11,993,657) (6,040,151) (1,905,173)
Net unrealized
appreciation of
investments............ 9,674,715 21,062,919 4,915,247 2,004,334
------------ ------------ ------------ -----------
Net assets.............. $224,226,355 $469,616,572 $108,633,069 $62,345,836
============ ============ ============ ===========
Class A:
Net assets.............. $168,752,811 $328,294,187 $ 61,479,772 $30,620,787
------------ ------------ ------------ -----------
Shares outstanding...... 15,614,825 28,668,375 6,048,866 2,929,364
------------ ------------ ------------ -----------
Net asset value and
redemption value per
share.................. $ 10.81 $ 11.45 $ 10.16 $ 10.45
============ ============ ============ ===========
Maximum offering price
per share (net asset
value plus sales charge
of 4.00% of offering
price)................. $ 11.26 $ 11.93 $ 10.58 $ 10.89
============ ============ ============ ===========
Class B:
Net assets.............. $ 30,403,308 $ 54,881,396 $ 24,875,570 $13,100,519
------------ ------------ ------------ -----------
Shares outstanding...... 2,811,229 4,793,987 2,448,417 1,253,592
------------ ------------ ------------ -----------
Net asset value and
offering price per
share.................. $ 10.81 $ 11.45 $ 10.16 $ 10.45
============ ============ ============ ===========
Class D:
Net assets.............. $ 25,070,236 $ 86,440,989 $ 22,277,727 $18,624,530
------------ ------------ ------------ -----------
Shares outstanding...... 2,321,286 7,548,774 2,192,563 1,781,331
------------ ------------ ------------ -----------
Net asset value,
offering price and
redemption value per
share.................. $ 10.80 $ 11.45 $ 10.16 $ 10.46
============ ============ ============ ===========
</TABLE>
See accompanying notes to financial statements
17
<PAGE>
PAINEWEBBER
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
CALIFORNIA NATIONAL MUNICIPAL NEW YORK
TAX-FREE TAX-FREE HIGH TAX-FREE
INCOME FUND INCOME FUND INCOME FUND INCOME FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment Income:
Interest....................... $7,339,288 $15,059,941 $3,993,706 $2,043,266
---------- ----------- ---------- ----------
Expenses:
Investment advisory and
administration fees........... 587,866 1,234,290 336,819 198,136
Service fees--Class A.......... 219,852 426,804 79,443 39,747
Service and distribution fees--
Class B....................... 161,748 290,465 128,438 71,027
Service and distribution fees--
Class D....................... 100,931 353,176 86,369 75,161
Custody and accounting......... 64,400 85,245 29,067 21,447
Legal and audit................ 44,528 39,751 14,402 13,135
Transfer agency and service
fees.......................... 43,601 93,421 24,217 23,437
State registration............. 23,607 42,045 29,509 21,962
Reports and notices to
shareholders.................. 21,435 59,435 20,112 4,651
Trustees' fees................. 4,063 4,063 5,313 5,313
Other expenses................. 11,653 11,869 7,890 1,565
---------- ----------- ---------- ----------
1,283,684 2,640,564 761,579 475,581
Less: Fee waivers from adviser. -- -- -- (35,260)
---------- ----------- ---------- ----------
Net Expenses................... 1,283,684 2,640,564 761,579 440,321
---------- ----------- ---------- ----------
Net investment income.......... 6,055,604 12,419,377 3,232,127 1,602,945
---------- ----------- ---------- ----------
Realized and unrealized gains
(losses) from investment
activities:
Net realized gains (losses)
from investment transactions.. 698,114 4,735,119 421,128 (220,508)
Net change in unrealized
appreciation/depreciation of
investments................... 2,106,754 3,611,760 2,271,541 1,378,541
---------- ----------- ---------- ----------
Net realized and unrealized
gains from investment
activities.................... 2,804,868 8,346,879 2,692,669 1,158,033
---------- ----------- ---------- ----------
Net increase in net assets
resulting from operations..... $8,860,472 $20,766,256 $5,924,796 $2,760,978
========== =========== ========== ==========
</TABLE>
See accompanying notes to financial statements
18
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
AUGUST 31, 1995 ENDED
(UNAUDITED) FEBRUARY 28, 1995
--------------- -----------------
<S> <C> <C>
From operations:
Net investment income........................ $ 6,055,604 $ 14,403,375
Net realized gains (losses) from investment
transactions................................ 698,114 (10,217,814)
Net change in unrealized
appreciation/depreciation of investments.... 2,106,754 (9,344,955)
------------ ------------
Net increase (decrease) in net assets
resulting from operations................... 8,860,472 (5,159,394)
------------ ------------
Dividends and distributions to shareholders
from:
Net investment income--Class A............... (4,672,509) (10,753,281)
Net investment income--Class B............... (737,168) (1,729,251)
Net investment income--Class D............... (645,927) (1,929,403)
Net realized gains from investment
transactions--Class A....................... -- (1,807,929)
Net realized gains from investment
transactions--Class B....................... -- (334,849)
Net realized gains from investment
transactions--Class D....................... -- (362,876)
------------ ------------
Total dividends and distributions to
shareholders................................ (6,055,604) (16,917,589)
------------ ------------
From beneficial interest transactions:
Net proceeds from the sale of shares......... 5,161,615 37,898,363
Cost of shares repurchased................... (26,329,502) (108,667,003)
Proceeds from dividends reinvested........... 3,131,653 9,271,310
------------ ------------
Net decrease in net assets from beneficial
interest transactions....................... (18,036,234) (61,497,330)
------------ ------------
Net decrease in net assets................... (15,231,366) (83,574,313)
Net assets:
Beginning of period.......................... 239,457,721 323,032,034
------------ ------------
End of period................................ $224,226,355 $239,457,721
============ ============
</TABLE>
See accompanying notes to financial statements
19
<PAGE>
NATIONAL TAX-FREE INCOME FUND
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
AUGUST 31, 1995 ENDED
(UNAUDITED) FEBRUARY 28, 1995
--------------- -----------------
<S> <C> <C>
From operations:
Net investment income........................ $ 12,419,377 $ 31,355,780
Net realized gains (losses) from investment
transactions................................ 4,735,119 (16,725,603)
Net change in unrealized
appreciation/depreciation of investments.... 3,611,760 (27,594,131)
------------ -------------
Net increase (decrease) in net assets
resulting from operations................... 20,766,256 (12,963,954)
------------ -------------
Dividends and distributions to shareholders
from:
Net investment income--Class A............... (8,902,655) (21,139,476)
Net investment income--Class B............... (1,295,650) (3,087,440)
Net investment income--Class D............... (2,221,072) (7,128,978)
Net realized gains from investment
transactions--Class A....................... -- (466,250)
Net realized gains from investment
transactions--Class B....................... -- (79,017)
Net realized gains from investment
transactions--Class D....................... -- (176,196)
------------ -------------
Total dividends and distributions to
shareholders................................ (12,419,377) (32,077,357)
------------ -------------
From beneficial interest transactions:
Net proceeds from the sale of shares......... 38,383,808 111,184,759
Cost of shares repurchased................... (91,897,401) (271,144,962)
Proceeds from dividends reinvested........... 7,604,182 20,588,449
------------ -------------
Net decrease in net assets from beneficial
interest transactions....................... (45,909,411) (139,371,754)
------------ -------------
Net decrease in net assets................... (37,562,532) (184,413,065)
Net assets:
Beginning of period.......................... 507,179,104 691,592,169
------------ -------------
End of period................................ $469,616,572 $ 507,179,104
============ =============
</TABLE>
See accompanying notes to financial statements
20
<PAGE>
MUNICIPAL HIGH INCOME FUND
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
AUGUST 31, 1995 ENDED
(UNAUDITED) FEBRUARY 28, 1995
--------------- -----------------
<S> <C> <C>
From operations:
Net investment income........................ $ 3,232,127 $ 7,282,798
Net realized gains (losses) from investment
transactions................................ 421,128 (6,460,311)
Net change in unrealized
appreciation/depreciation of investments.... 2,271,541 (5,273,473)
------------ ------------
Net increase (decrease) in net assets
resulting from operations................... 5,924,796 (4,450,986)
------------ ------------
Dividends and distributions to shareholders
from:
Net investment income--Class A............... (1,914,437) (4,189,927)
Net investment income--Class B............... (679,236) (1,474,018)
Net investment income--Class D............... (638,454) (1,619,104)
Net realized gains from investment
transactions--Class A....................... -- (187,891)
Net realized gains from investment
transactions--Class B....................... -- (74,685)
Net realized gains from investment
transactions--Class D....................... -- (81,737)
------------ ------------
Total dividends and distributions to
shareholders................................ (3,232,127) (7,627,362)
------------ ------------
From beneficial interest transactions:
Net proceeds from the sale of shares......... 7,499,531 24,601,158
Cost of shares repurchased................... (15,614,561) (55,028,010)
Proceeds from dividends reinvested........... 1,787,832 4,365,166
------------ ------------
Net decrease in net assets from beneficial
interest transactions....................... (6,327,198) (26,061,686)
------------ ------------
Net decrease in net assets................... (3,634,529) (38,140,034)
Net assets:
Beginning of period.......................... 112,267,598 150,407,632
------------ ------------
End of period ............................... $108,633,069 $112,267,598
============ ============
</TABLE>
See accompanying notes to financial statements
21
<PAGE>
NEW YORK TAX-FREE INCOME FUND
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
AUGUST 31, 1995 ENDED
(UNAUDITED) FEBRUARY 28, 1995
--------------- -----------------
<S> <C> <C>
From operations:
Net investment income........................ $ 1,602,945 $ 4,054,804
Net realized losses from investment
transactions................................ (220,508) (1,684,198)
Net change in unrealized
appreciation/depreciation of investments.... 1,378,541 (5,028,753)
----------- ------------
Net increase (decrease) in net assets
resulting from operations................... 2,760,978 (2,658,147)
----------- ------------
Dividends and distributions to shareholders
from:
Net investment income--Class A............... (821,114) (1,951,739)
Net investment income--Class B............... (313,596) (766,052)
Net investment income--Class D............... (468,235) (1,337,013)
Net realized gains from investment
transactions--Class A....................... -- (371,191)
Net realized gains from investment
transactions--Class B....................... -- (169,704)
Net realized gains from investment
transactions--Class D....................... -- (282,222)
----------- ------------
Total dividends and distributions to
shareholders................................ (1,602,945) (4,877,921)
----------- ------------
From beneficial interest transactions:
Net proceeds from the sale of shares......... 1,941,185 12,977,985
Cost of shares repurchased................... (9,964,821) (43,175,356)
Proceeds from dividends reinvested........... 981,159 3,572,415
----------- ------------
Net decrease in net assets from beneficial
interest transactions....................... (7,042,477) (26,624,956)
----------- ------------
Net decrease in net assets................... (5,884,444) (34,161,024)
Net assets:
Beginning of period.......................... 68,230,280 102,391,304
----------- ------------
End of period................................ $62,345,836 $ 68,230,280
=========== ============
</TABLE>
See accompanying notes to financial statements
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS-- (UNAUDITED)
PAINEWEBBER
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Mutual Fund Trust ("Mutual Fund Trust") and PaineWebber Municipal
Series ("Municipal Series") (collectively, the "Trusts") were organized under
Massachusetts law by Declarations of Trust dated November 21, 1986 and January
28, 1987, respectively, and are registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended, as an open-end
diversified management investment company and an open-end non-diversified
management investment company, respectively. Mutual Fund Trust has two series:
PaineWebber California Tax-Free Income Fund ("California Tax-Free Income Fund")
and PaineWebber National Tax-Free Income Fund ("National Tax-Free Income
Fund"). Municipal Series has two series: PaineWebber Municipal High Income Fund
("Municipal High Income Fund") and PaineWebber New York Tax-Free Income Fund
("New York Tax-Free Income Fund") (collectively, the "Funds").
Organizational Matters - Each Fund offers Class A, Class B and Class D shares.
Each class represents interests in the same assets of the applicable Fund and
the classes are identical except for differences in their sales charge
structures, ongoing distribution charges and certain transfer agency expenses.
In addition, Class B shares automatically convert to Class A shares
approximately six years after initial issuance. All classes of shares have
equal voting privileges, except that each class has exclusive voting rights
with respect to its distribution plan.
Valuation of Investments - Where market quotations are readily available,
portfolio securities are valued thereon, provided such quotations adequately
reflect, in the judgment of Mitchell Hutchins Asset Management Inc. ("Mitchell
Hutchins"), a wholly owned subsidiary of PaineWebber Incorporated
("PaineWebber") and investment adviser, administrator and distributor of the
Funds, the fair value of the securities. When market quotations are not readily
available, securities are valued based upon appraisals received from a pricing
service which utilizes a computerized matrix system, or based upon appraisals
derived from information concerning those securities or similar securities
received from recognized dealers in those securities. All other securities are
valued at fair value as determined in good faith by or under the direction of
each Trust's board of trustees. The amortized cost method of valuation, which
approximates market value, is used to value debt obligations with 60 days or
less remaining to maturity, unless the respective Trust's board of trustees
determines that this does not represent fair value.
Each Fund follows an investment policy of investing primarily in municipal
obligations of various states except for California Tax-Free Income Fund and
New York Tax-Free Income Fund which invest solely in municipal obligations of
their
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS-- (CONTINUED)
PAINEWEBBER
respective state. Economic changes affecting those states and certain of their
public bodies and municipalities may affect the ability of the issuers within
those states to pay interest on, or repay principal of, municipal obligations
held by those Funds.
Investment Transactions and Investment Income - Investment transactions are
recorded on the trade date. Realized gains and losses from investment
transactions are calculated on the identified cost method. Interest income is
recorded on an accrual basis. Discounts are accreted and premiums are amortized
as adjustments to interest income and the identified cost of securities.
Income and expenses (excluding class-specific expenses) are allocated
proportionately to each class of shares based upon the relative value of
dividend-eligible shares of each class at the beginning of the day (after
adjusting for current capital share activity of the respective classes).
Realized and unrealized gains and losses are allocated proportionately to each
class of shares based on the relative value of shares outstanding at the
beginning of the day (after adjusting for current capital share activity of the
respective class). Class-specific expenses are charged directly to the
applicable class of shares.
Federal Tax Status - Each Fund intends to distribute substantially all of its
tax-exempt and taxable income and to comply with the other requirements of the
Internal Revenue Code applicable to regulated investment companies.
Accordingly, no provisions for federal income taxes are required. In addition,
by distributing during each calendar year substantially all of its net
investment income, capital gains and certain other amounts, if any, each Fund
intends not to be subject to a federal excise tax.
At February 28, 1995, California Tax-Free Income Fund, National Tax-Free Income
Fund, Municipal High Income Fund and New York Tax-Free Income Fund had net
capital loss carryforwards of $5,757,844, $6,647,094, $4,924,213 and $436,117,
respectively. These loss carryforwards are available as reductions, to the
extent provided in the regulations, of future net realized capital gains, and
will expire by February 28, 2003.
In accordance with Treasury Regulations, California Tax-Free Income Fund,
National Tax-Free Income Fund, Municipal High Income Fund and New York Tax-Free
Income Fund have elected to defer realized losses arising after October 31,
1994. Such losses have been treated for tax purposes as arising on March 1,
1995. To the extent that such losses are used to offset future capital gains,
it is probable that the gains so offset will not be distributed to
shareholders.
Dividends and Distributions - Dividends and distributions to shareholders are
recorded on the ex-dividend date. Dividends from net investment income and
distributions from realized gains from investment transactions are determined
in accordance with income tax regulations which may differ from generally
accepted
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS-- (CONTINUED)
PAINEWEBBER
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 income tax classification.
INVESTMENT ADVISER AND ADMINISTRATOR
Each Trust's board of trustees has approved an Investment Advisory and
Administration Contract ("Advisory Contract") with Mitchell Hutchins, under
which Mitchell Hutchins serves as investment adviser and administrator of the
Funds. In accordance with the Advisory Contracts, each Fund pays Mitchell
Hutchins an investment advisory and administration fee, which is accrued daily
and paid monthly, at the annual rates of 0.50% of California Tax-Free Income
Fund's and National Tax-Free Income Fund's average daily net assets and 0.60%
of Municipal High Income Fund's and New York Tax-Free Income Fund's average
daily net assets. At August 31, 1995, California Tax-Free Income Fund, National
Tax-Free Income Fund, Municipal High Income Fund and New York Tax-Free Income
Fund owed Mitchell Hutchins $94,736, $198,760, $55,190 and $31,536,
respectively, in investment advisory and administration fees.
In compliance with applicable state securities laws, Mitchell Hutchins will
reimburse each Fund if and to the extent that the aggregate operating expenses
in any fiscal year, exclusive of taxes, interest, brokerage fees, distribution
fees and extraordinary expenses, exceed limitations imposed by various state
regulations. Currently, the most restrictive limitation applicable to the Funds
is 2.5% of the first $30 million of average daily net assets, 2.0% of the next
$70 million and 1.5% of any excess over $100 million. For the six months ended
August 31, 1995, no reimbursements were required pursuant to the above
limitation for any of the Funds.
DISTRIBUTION PLANS
Mitchell Hutchins is the distributor of each Fund's shares and has appointed
PaineWebber as dealer for the sale of those shares. Under separate plans of
distribution pertaining to Class A, Class B and Class D shares, each Fund pays
Mitchell Hutchins monthly service fees at the annual rate of 0.25% of the
average daily net assets of each class of shares and monthly distribution fees
at the annual rate of 0.75% and 0.50% of the average daily net assets of Class
B and Class D shares, respectively. At August 31, 1995, California Tax-Free
Income Fund, National Tax-Free Income Fund, Municipal High Income Fund and New
York Tax-Free Income Fund owed Mitchell Hutchins $77,211, $171,330, $48,207 and
$29,311, respectively, in service and distribution fees. For the six months
ended August 31, 1995, Mitchell Hutchins voluntarily waived $35,260 in service
fees from New York Tax-Free Income Fund.
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS-- (CONTINUED)
PAINEWEBBER
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 shareholders upon certain redemptions of Class B shares.
Mitchell Hutchins has informed each Fund that, for the six months ended August
31, 1995, it earned the following amounts in sales charges:
<TABLE>
<CAPTION>
CALIFORNIA NATIONAL NEW YORK
TAX-FREE TAX-FREE MUNICIPAL HIGH TAX-FREE
INCOME FUND INCOME FUND INCOME FUND INCOME FUND
----------- ----------- -------------- -----------
<S> <C> <C> <C> <C>
Initial sales charges--Class
A.......................... $ 31,399 $ 32,763 $32,106 $ 7,041
Contingent deferred sales
charges--Class B........... $100,346 $225,969 $81,150 $49,200
</TABLE>
TRANSFER AGENCY SERVICE FEES
Each Fund pays PaineWebber an annual fee of $4.00 per active PaineWebber
shareholder account for certain services not provided by the Funds' transfer
agent. For these services for the six months ended August 31, 1995, PaineWebber
earned $12,533, $27,477, $8,404 and $4,893 from California Tax-Free Income
Fund, National Tax-Free Income Fund, Municipal High Income Fund and New York
Tax-Free Income Fund, respectively. At August 31, 1995, California Tax-Free
Income Fund, National Tax-Free Income Fund, Municipal High Income Fund and New
York Tax-Free Income Fund owed PaineWebber $4,968, $4,382, $1,344 and $778,
respectively, for transfer agency service fees.
INVESTMENTS IN SECURITIES
For federal income tax purposes, the cost of securities owned at August 31,
1995, was substantially the same as the cost of securities for financial
statement purposes.
At August 31, 1995, the components of net unrealized appreciation of
investments were as follows:
<TABLE>
<CAPTION>
CALIFORNIA NATIONAL NEW YORK
TAX-FREE TAX-FREE MUNICIPAL HIGH TAX-FREE
INCOME FUND INCOME FUND INCOME FUND INCOME FUND
----------- ----------- -------------- -----------
<S> <C> <C> <C> <C>
Gross appreciation
(investments having an
excess of value over
cost)................... $10,604,014 $21,804,300 $5,459,377 $2,567,041
Gross depreciation
(investments having an
excess of cost over
value).................. (929,299) (741,381) (544,130) (562,707)
----------- ----------- ---------- ----------
Net unrealized
appreciation of
investments............. $ 9,674,715 $21,062,919 $4,915,247 $2,004,334
=========== =========== ========== ==========
</TABLE>
For the six months ended August 31, 1995, total aggregate purchases and sales
of portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
CALIFORNIA NATIONAL NEW YORK
TAX-FREE TAX-FREE MUNICIPAL HIGH TAX-FREE
INCOME FUND INCOME FUND INCOME FUND INCOME FUND
----------- ------------ -------------- -----------
<S> <C> <C> <C> <C>
Purchases................... $15,946,680 $139,412,717 $ 6,717,731 $ 4,153,000
Sales....................... $36,481,060 $199,761,694 $11,724,691 $11,487,295
</TABLE>
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
PAINEWEBBER
SHARES OF BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial interest
authorized. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS D
------------------------- ------------------------ -------------------------
Shares Amount Shares Amount Shares Amount
----------- ------------ ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
California Tax-Free Income Fund
Six months ended August 31, 1995:
Shares sold............. 188,504 $ 2,023,248 135,177 $ 1,461,335 156,444 $ 1,677,032
Shares repurchased...... (1,487,427) (15,989,962) (440,085) (4,733,507) (521,794) (5,606,033)
Shares converted from
Class B to Class A..... 3,484 37,391 (3,482) (37,391) -- --
Dividends reinvested in
additional Fund shares. 218,466 2,347,035 30,743 330,498 42,303 454,120
----------- ------------ ---------- ------------ ----------- ------------
Net decrease............ (1,076,973) $(11,582,288) (277,647) $ (2,979,065) (323,047) $ (3,474,881)
=========== ============ ========== ============ =========== ============
Year Ended February 28, 1995:
Shares sold............. 2,134,302 $ 22,622,544 525,879 $ 5,611,240 904,455 $ 9,664,579
Shares repurchased...... (6,021,282) (63,129,517) (1,168,617) (12,295,934) (3,148,117) (33,241,551)
Shares converted from
Class B to Class A..... 44,953 478,312 (44,934) (478,312) -- --
Dividends reinvested in
additional Fund shares. 616,881 6,514,811 98,867 1,045,011 161,815 1,711,487
----------- ------------ ---------- ------------ ----------- ------------
Net decrease............ (3,225,146) $(33,513,850) (588,805) $ (6,117,995) (2,081,847) $(21,865,485)
=========== ============ ========== ============ =========== ============
National Tax-Free Income Fund
Six months ended August 31, 1995:
Shares sold............. 2,813,397 $ 31,992,598 307,062 $ 3,492,426 254,279 $ 2,898,784
Shares repurchased...... (5,392,578) (61,463,690) (805,987) (9,181,948) (1,868,540) (21,251,763)
Shares converted from
Class B to Class A..... 6,236 70,914 (6,236) (70,914) -- --
Dividends reinvested in
additional Fund shares. 467,020 5,323,163 62,518 712,229 137,659 1,568,790
----------- ------------ ---------- ------------ ----------- ------------
Net decrease............ (2,105,925) $(24,077,015) (442,643) $ (5,048,207) (1,476,602) $(16,784,189)
=========== ============ ========== ============ =========== ============
Year ended February 28, 1995:
Shares sold............. 5,957,610 $66,318,464 955,454 $ 10,658,612 3,013,454 $ 34,207,682
Shares repurchased...... (12,519,609) (138,989,202) (1,732,673) (19,157,681) (10,137,360) (112,998,080)
Shares converted from
Class B to Class A..... 65,470 728,149 (65,470) (728,149) -- --
Dividends reinvested in
additional Fund shares. 1,188,102 13,268,602 159,664 1,781,450 494,843 5,538,397
----------- ------------ ---------- ------------ ----------- ------------
Net decrease............ (5,308,427) $(58,673,987) (683,025) $ (7,445,768) (6,629,063) $(73,252,001)
=========== ============ ========== ============ =========== ============
Municipal High Income Fund
Six months ended August 31, 1995:
Shares sold............. 302,593 $ 3,034,988 211,727 $ 2,124,794 234,142 $ 2,339,749
Shares repurchased...... (735,689) (7,411,510) (399,184) (4,018,971) (417,554) (4,184,080)
Shares converted from
Class B to Class A..... 945 9,444 (945) (9,444) -- --
Dividends reinvested in
additional Fund shares. 103,052 1,036,116 33,370 335,267 41,449 416,449
----------- ------------ ---------- ------------ ----------- ------------
Net decrease............ (329,099) $ (3,330,962) (155,032) $ (1,568,354) (141,963) $ (1,427,882)
=========== ============ ========== ============ =========== ============
Year Ended February 28, 1995:
Shares sold............. 720,430 $ 7,168,272 550,580 $ 5,501,098 1,193,461 $ 11,931,788
Shares repurchased...... (2,251,267) (22,313,165) (997,368) (9,856,871) (2,307,181) (22,857,974)
Shares converted from
Class B to Class A..... 30,243 298,033 (30,243) (298,033) -- --
Dividends reinvested in
additional Fund shares. 241,093 2,399,332 81,216 807,852 116,205 1,157,982
----------- ------------ ---------- ------------ ----------- ------------
Net decrease............ (1,259,501) $(12,447,528) (395,815) $(3,845,954) (997,515) $ (9,768,204)
=========== ============ ========== ============ =========== ============
</TABLE>
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
PAINEWEBBER
SHARES OF BENEFICIAL INTEREST -- (CONCLUDED)
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS D
----------------------- --------------------- ------------------------
Shares Amount Shares Amount Shares Amount
---------- ----------- -------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
New York Tax-Free Income Fund
Six months ended August 31, 1995:
Shares sold............. 39,591 $ 463,077 53,160 $ 551,884 88,826 $ 926,224
Shares repurchased...... (321,554) (3,348,156) (241,099) (2,505,756) (394,981) (4,110,909)
Shares converted from
Class B to Class A..... 1,179 12,497 (1,179) (12,497) -- --
Dividends reinvested in
additional Fund shares. 49,351 459,978 15,458 160,607 34,691 360,574
---------- ----------- -------- ----------- ---------- ------------
Net decrease............ (231,433) $(2,412,604) (173,660) $(1,805,762) (271,464) $ (2,824,111)
========== =========== ======== =========== ========== ============
Year Ended February 28, 1995
Shares sold............. 283,990 $ 2,947,431 301,219 $ 3,116,930 663,852 $ 6,913,624
Shares repurchased...... (1,369,728) (13,922,406) (670,547) (6,771,023) (2,201,138) (22,481,927)
Shares converted from
Class B to Class A..... 15,724 163,362 (15,731) (163,362) -- --
Dividends reinvested in
additional Fund shares. 148,031 1,507,461 71,731 732,650 130,636 1,332,304
---------- ----------- -------- ----------- ---------- ------------
Net decrease............ (921,983) $(9,304,152) (313,328) $(3,084,805) (1,406,650) $(14,235,999)
========== =========== ======== =========== ========== ============
</TABLE>
28
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
29
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND
PAINEWEBBER
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE YEAR THREE
ENDED ENDED MONTHS FOR THE YEAR
AUGUST 31, FEBRUARY 28, ENDED ENDED NOVEMBER 30,
1995 ------------------ FEBRUARY 28, ----------------------------
(UNAUDITED) 1995 1994 1993 1992 1991 1990
----------- -------- -------- ------------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 10.68 $ 11.41 $ 11.80 $ 11.39 $ 11.13 $ 10.94 $ 10.95
-------- -------- -------- -------- -------- -------- --------
Net investment income... 0.29 0.58 0.60 0.16 0.66 0.71 0.78
Net realized and
unrealized gains
(losses) from
investment
transactions........... 0.13 (0.63) (0.08) 0.58 0.29 0.22 (0.01)
-------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
from investment
operations............. 0.42 (0.05) 0.52 0.74 0.95 0.93 0.77
-------- -------- -------- -------- -------- -------- --------
Dividends from net
investment income...... (0.29) (0.58) (0.60) (0.16) (0.66) (0.71) (0.78)
Distributions from net
realized gains from
investment
transactions........... -- (0.10) (0.31) (0.17) (0.03) (0.03) --
-------- -------- -------- -------- -------- -------- --------
Total dividends and
distributions to
shareholders........... (0.29) (0.68) (0.91) (0.33) (0.69) (0.74) (0.78)
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of
period................. $ 10.81 $ 10.68 $ 11.41 $ 11.80 $ 11.39 $ 11.13 $ 10.94
======== ======== ======== ======== ======== ======== ========
Total investment
return(1).............. 3.97% (0.18)% 4.46% 6.52% 8.73% 8.84% 6.89%
======== ======== ======== ======== ======== ======== ========
Ratios and supplemental
data:
Net assets, end of
period (000's)......... $168,753 $178,234 $227,179 $247,025 $239,851 $231,987 $211,701
Ratio of expenses to
average net assets..... 0.93%* 0.88% 0.90% 0.99%* 0.93% 0.83% 0.68%
Ratio of net investment
income to average net
assets................. 5.31%* 5.55% 5.10% 5.61%* 5.80% 6.46% 6.78%
Portfolio turnover rate. 7.07% 10.61% 36.73% 3.42% 24.78% 2.44% 22.82%
- ---------------------
</TABLE>
+ Commencement of issuance of shares
* Annualized
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gains
distributions at net asset value on the payable dates and a sale at net
asset value on the last day of each period reported. The figures do not
include sales charges; results for Class A and Class B shares would be
lower if sales charges were included. Total returns for periods of less
than one year have not been annualized.
30
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS D
- ------------------------------------------------------------ -------------------------------------------------
FOR THE FOR THE
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
SIX MONTHS FOR THE YEAR THREE FOR THE JULY 1, SIX MONTHS FOR THE YEAR THREE JULY 2,
ENDED ENDED MONTHS YEAR 1991+ ENDED ENDED MONTHS 1992+
AUGUST 31, FEBRUARY 28, ENDED ENDED THROUGH AUGUST 31, FEBRUARY 28, ENDED THROUGH
1995 ---------------- FEBRUARY NOVEMBER NOVEMBER 1995 ---------------- FEBRUARY NOVEMBER
(UNAUDITED) 1995 1994 28, 1993 30, 1992 30, 1991 (UNAUDITED) 1995 1994 28, 1993 30, 1992
- ----------- ------- ------- -------- -------- -------- ----------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.69 $ 11.41 $ 11.81 $ 11.39 $ 11.14 $ 10.95 $ 10.67 $ 11.40 $ 11.79 $ 11.38 $ 11.41
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
0.25 0.50 0.51 0.14 0.57 0.25 0.26 0.53 0.54 0.14 0.21
0.12 (0.62) (0.09) 0.59 0.28 0.19 0.13 (0.63) (0.08) 0.58 (0.03)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
0.37 (0.12) 0.42 0.73 0.85 0.44 0.39 (0.10) 0.46 0.72 0.18
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(0.25) (0.50) (0.51) (0.14) (0.57) (0.25) (0.26) (0.53) (0.54) (0.14) (0.21)
-- (0.10) (0.31) (0.17) (0.03) -- -- (0.10) (0.31) (0.17) --
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(0.25) (0.60) (0.82) (0.31) (0.60) (0.25) (0.26) (0.63) (0.85) (0.31) (0.21)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
$ 10.81 $ 10.69 $ 11.41 $ 11.81 $ 11.39 $ 11.14 $ 10.80 $ 10.67 $ 11.40 $ 11.79 $ 11.38
======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
3.09% (0.85)% 3.56% 6.50% 7.80% 3.69% 3.71% (0.70)% 3.91% 6.49% 1.28%
======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
$30,403 $33,007 $41,979 $36,693 $30,205 $10,743 $25,070 $28,217 $53,874 $39,029 $30,141
1.69%* 1.64% 1.65% 1.74%* 1.68% 1.62%* 1.45%* 1.40% 1.39% 1.48%* 1.39%*
4.56%* 4.78% 4.32% 4.81%* 4.91% 5.02%* 4.80%* 5.05% 4.55% 5.06%* 4.79%*
7.07% 10.61% 36.73% 3.42% 24.78% 2.44% 7.07% 10.61% 36.73% 3.42% 24.78%
</TABLE>
31
<PAGE>
NATIONAL TAX-FREE INCOME FUND
PAINEWEBBER
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE YEAR FOR THE
ENDED ENDED THREE MONTHS FOR THE YEAR
AUGUST 31, FEBRUARY 28, ENDED ENDED NOVEMBER 30,
1995 ------------------- FEBRUARY 28, ----------------------------
(UNAUDITED) 1995 1994 1993 1992 1991 1990
----------- -------- -------- ------------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 11.26 $ 12.00 $ 12.09 $ 11.67 $ 11.40 $ 11.20 $ 11.21
-------- -------- -------- -------- -------- -------- --------
Net investment income... 0.30 0.63 0.64 0.17 0.71 0.76 0.78
Net realized and
unrealized gains
(losses) from
investment
transactions........... 0.19 (0.73) 0.03 0.55 0.31 0.20 (0.01)
-------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
from investment
operations............. 0.49 (0.10) 0.67 0.72 1.02 0.96 0.77
-------- -------- -------- -------- -------- -------- --------
Dividends from net
investment income...... (0.30) (0.63) (0.64) (0.17) (0.71) (0.76) (0.78)
Distributions from net
realized gains from
investment
transactions........... -- (0.01) (0.12) (0.13) (0.04) -- --
-------- -------- -------- -------- -------- -------- --------
Total dividends and
distributions to
shareholders........... (0.30) (0.64) (0.76) (0.30) (0.75) (0.76) (0.78)
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of
period................. $ 11.45 $ 11.26 $ 12.00 $ 12.09 $ 11.67 $ 11.40 $ 11.20
======== ======== ======== ======== ======== ======== ========
Total investment
return(1).............. 4.37% (0.63)% 5.65% 6.31% 9.21% 8.85% 7.17%
======== ======== ======== ======== ======== ======== ========
Ratios and supplemental
data:
Net assets, end of
period (000's)......... $328,294 $346,579 $432,825 $419,596 $396,587 $366,300 $343,539
Ratio of expenses to
average net assets..... 0.88%* 0.88% 0.89% 0.88%* 0.91% 0.83% 0.69%
Ratio of net investment
income to average net
assets................. 5.21%* 5.62% 5.28% 5.86%* 6.13% 6.66% 7.08%
Portfolio turnover rate. 30.19% 59.85% 15.87% 5.36% 21.40% 26.69% 24.45%
- ---------------------
</TABLE>
+ Commencement of issuance of shares
* Annualized
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends, and capital gains
distributions at net asset value on the payable date and a sale at net
asset value on the last day of each period reported. The figures do not
include sales charges; results for Class A and Class B shares would be
lower if sales charges were included. Total returns for periods of less
than one year have not been annualized.
32
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS D
- ------------------------------------------------------------- ----------------------------------------------------
FOR THE FOR THE
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
SIX MONTHS FOR THE YEAR THREE FOR THE JULY 1, SIX MONTHS FOR THE YEAR THREE JULY 2,
ENDED ENDED MONTHS YEAR 1991+ ENDED ENDED MONTHS 1992+
AUGUST 31, FEBRUARY 28, ENDED ENDED THROUGH AUGUST 31, FEBRUARY 28, ENDED THROUGH
1995 ----------------- FEBRUARY NOVEMBER NOVEMBER 1995 ------------------- FEBRUARY NOVEMBER
(UNAUDITED) 1995 1994 28, 1993 30, 1992 30, 1991 (UNAUDITED) 1995 1994 28, 1993 30, 1992
- ----------- ------- ------- -------- -------- -------- ----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 11.26 $ 11.99 $ 12.08 $ 11.67 $ 11.40 $11.19 $ 11.26 $ 12.00 $ 12.09 $ 11.67 $ 11.71
------- ------- ------- ------- ------- ------ ------- -------- -------- -------- --------
0.26 0.54 0.55 0.15 0.62 0.27 0.27 0.57 0.58 0.15 0.23
0.19 (0.72) 0.03 0.54 0.31 0.21 0.19 (0.73) 0.03 0.55 (0.04)
------- ------- ------- ------- ------- ------ ------- -------- -------- -------- --------
0.45 (0.18) 0.58 0.69 0.93 0.48 0.46 (0.16) 0.61 0.70 0.19
------- ------- ------- ------- ------- ------ ------- -------- -------- -------- --------
(0.26) (0.54) (0.55) (0.15) (0.62) (0.27) (0.27) (0.57) (0.58) (0.15) (0.23)
-- (0.01) (0.12) (0.13) (0.04) -- -- (0.01) (0.12) (0.13) --
------- ------- ------- ------- ------- ------ ------- -------- -------- -------- --------
(0.26) (0.55) (0.67) (0.28) (0.66) (0.27) (0.27) (0.58) (0.70) (0.28) (0.23)
------- ------- ------- ------- ------- ------ ------- -------- -------- -------- --------
$ 11.45 $ 11.26 $ 11.99 $ 12.08 $ 11.67 $11.40 $ 11.45 $ 11.26 $ 12.00 $ 12.09 $ 11.67
======= ======= ======= ======= ======= ====== ======= ======== ======== ======== ========
3.98% (1.29)% 4.87% 6.02% 8.36% 4.06% 4.11% (1.13)% 5.13% 6.18% 1.41%
======= ======= ======= ======= ======= ====== ======= ======== ======== ======== ========
$54,881 $58,958 $70,988 $50,064 $39,564 $8,620 $86,441 $101,642 $187,778 $138,989 $105,854
1.64%* 1.64% 1.63% 1.63%* 1.65% 1.65%* 1.40%* 1.40% 1.37% 1.37%* 1.42%*
4.46%* 4.86% 4.50% 5.08%* 5.16% 5.26%* 4.72%* 5.13% 4.75% 5.30%* 5.17%*
30.19% 59.85% 15.87% 5.36% 21.40% 26.69% 30.19% 59.85% 15.87% 5.36% 21.40%
</TABLE>
33
<PAGE>
MUNICIPAL HIGH INCOME FUND
PAINEWEBBER
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE YEAR ENDED
ENDED ----------------------------------------------------
AUGUST 31, FEBRUARY 28,
1995 ------------------------- FEBRUARY 29, FEBRUARY 28,
(UNAUDITED) 1995 1994 1993 1992 1991
----------- ------- ------- ------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 9.92 $ 10.77 $ 10.96 $ 10.29 $ 9.92 $ 10.00
------- ------- ------- ------- ------- -------
Net investment income... 0.31 0.59 0.61 0.67 0.71 0.72
Net realized and
unrealized gains
(losses) from
investment
transactions........... 0.24 (0.82) 0.01 0.81 0.44 (0.08)
------- ------- ------- ------- ------- -------
Net increase (decrease)
from investment
operations............. 0.55 (0.23) 0.62 1.48 1.15 0.64
------- ------- ------- ------- ------- -------
Dividends from net
investment income...... (0.31) (0.59) (0.61) (0.67) (0.71) (0.72)
Distributions from net
realized gains from
investment
transactions........... -- (0.03) (0.20) (0.14) (0.07) --
------- ------- ------- ------- ------- -------
Total dividends and
distributions to
shareholders........... (0.31) (0.62) (0.81) (0.81) (0.78) (0.72)
------- ------- ------- ------- ------- -------
Net asset value, end of
period................. $ 10.16 $ 9.92 $ 10.77 $ 10.96 $ 10.29 $ 9.92
======= ======= ======= ======= ======= =======
Total investment
return(1).............. 5.59% (2.03)% 5.77% 15.05% 11.94% 6.69%
======= ======= ======= ======= ======= =======
Ratios and supplemental
data:
Net assets, end of
period (000's)......... $61,480 $63,287 $82,248 $82,251 $68,830 $62,559
Ratio of expenses, net
of waivers from
adviser, to average net
assets................. 1.09%* 1.13% 1.03% 0.87% 0.75% 0.69%
Ratio of expenses,
before waivers from
adviser, to average net
assets................. 1.09%* 1.13% 1.16% 1.29% 1.25% 1.54%
Ratio of net investment
income, net of waivers
from adviser, to
average net assets..... 6.02%* 5.96% 5.52% 6.31% 6.99% 7.32%
Ratio of net investment
income, before waivers
from adviser, to
average net assets..... 6.02%* 5.96% 5.39% 5.89% 6.49% 6.47%
Portfolio turnover rate. 5.99% 28.44% 23.19% 10.05% 45.93% 19.82%
- ---------------------
</TABLE>
+ Commencement of issuance of shares
* Annualized
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gains
distributions at net asset value on the payable dates and a sale at net
asset value on the last day of each period reported. The figures do not
include sales charges; results for Class A and Class B shares would be
lower if sales charges were included. Total returns for periods of less
than one year have not been annualized.
34
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS D
- ----------------------------------------------------- -------------------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS PERIOD MONTHS FOR THE YEAR PERIOD
ENDED FOR THE YEAR ENDED JULY 1, 1991+ ENDED ENDED JULY 2, 1992+
AUGUST 31, FEBRUARY 28, THROUGH AUGUST 31, FEBRUARY 28, THROUGH
1995 ------------------------- FEBRUARY 1995 ---------------- FEBRUARY
(UNAUDITED) 1995 1994 1993 29, 1992 (UNAUDITED) 1995 1994 28, 1993
- ----------- ------- ------- ------- ------------- ----------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.92 $ 10.76 $ 10.96 $ 10.29 $10.05 $ 9.92 $ 10.77 $ 10.96 $ 10.50
------- ------- ------- ------- ------ ------- ------- ------- -------
0.27 0.52 0.52 0.59 0.42 0.28 0.55 0.55 0.36
0.24 (0.81) -- 0.81 0.31 0.24 (0.82) 0.01 0.47
------- ------- ------- ------- ------ ------- ------- ------- -------
0.51 (0.29) 0.52 1.40 0.73 0.52 (0.27) 0.56 0.83
------- ------- ------- ------- ------ ------- ------- ------- -------
(0.27) (0.52) (0.52) (0.59) (0.42) (0.28) (0.55) (0.55) (0.36)
-- (0.03) (0.20) (0.14) (0.07) -- (0.03) (0.20) (0.01)
------- ------- ------- ------- ------ ------- ------- ------- -------
(0.27) (0.55) (0.72) (0.73) (0.49) (0.28) (0.58) (0.75) (0.37)
------- ------- ------- ------- ------ ------- ------- ------- -------
$ 10.16 $ 9.92 $ 10.76 $ 10.96 $10.29 $ 10.16 $ 9.92 $ 10.77 $ 10.96
======= ======= ======= ======= ====== ======= ======= ======= =======
5.21% (2.67)% 4.88% 14.81% 6.89% 5.34% (2.51)% 5.24% 7.72%
======= ======= ======= ======= ====== ======= ======= ======= =======
$24,876 $25,823 $32,287 $22,922 $8,176 $22,278 $23,158 $35,872 $21,638
1.83%* 1.87% 1.79% 1.63% 1.50%* 1.57%* 1.63% 1.54% 1.40%*
1.83%* 1.87% 1.90% 2.01% 1.98%* 1.57%* 1.63% 1.64% 1.69%*
5.29%* 5.21% 4.72% 5.48% 5.80%* 5.54%* 5.48% 4.95% 5.26%*
5.29%* 5.21% 4.61% 5.10% 5.32%* 5.54%* 5.48% 4.85% 4.97%*
5.99% 28.44% 23.19% 10.05% 45.93% 5.99% 28.44% 23.19% 10.05%
</TABLE>
35
<PAGE>
NEW YORK TAX-FREE INCOME FUND
PAINEWEBBER
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
FOR THE FOR THE YEAR ENDED
SIX MONTHS -----------------------------------------------------
ENDED FEBRUARY 28,
AUGUST 31, 1995 -------------------------- FEBRUARY 29, FEBRUARY 28,
(UNAUDITED) 1995 1994 1993 1992 1991
--------------- ------- ------- ------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 10.27 $ 11.03 $ 10.99 $ 10.12 $ 9.76 $ 9.72
------- ------- ------- ------- ------- -------
Net investment income... 0.27 0.54 0.57 0.63 0.66 0.67
Net realized and
unrealized gains
(losses) from
investment
transactions........... 0.18 (0.66) 0.07 0.87 0.36 0.04
------- ------- ------- ------- ------- -------
Net increase (decrease)
from investment
operations............. 0.45 (0.12) 0.64 1.50 1.02 0.71
------- ------- ------- ------- ------- -------
Dividends from net
investment income...... (0.27) (0.54) (0.57) (0.63) (0.66) (0.67)
Distributions from net
realized gains from
investment
transactions........... -- (0.10) (0.03) -- -- --
------- ------- ------- ------- ------- -------
Total dividends and
distributions to
shareholders........... (0.27) (0.64) (0.60) (0.63) (0.66) (0.67)
------- ------- ------- ------- ------- -------
Net asset value, end of
period................. $ 10.45 $ 10.27 $ 11.03 $ 10.99 $ 10.12 $ 9.76
======= ======= ======= ======= ======= =======
Total investment
return(1).............. 4.45% (0.83)% 5.89% 15.44% 10.80% 7.59%
======= ======= ======= ======= ======= =======
Ratios and supplemental
data:
Net assets, end of
period (000's)......... $30,621 $32,475 $45,033 $43,443 $35,961 $30,173
Ratio of expenses, net
of waivers from
adviser, to average net
assets................. 1.02%* 1.01% 0.75% 0.34% 0.25% 0.21%
Ratio of expenses,
before waivers from
adviser, to average net
assets................. 1.13%* 1.26% 1.25% 1.47% 1.53% 1.84%
Ratio of net investment
income, net of waivers
from adviser, to
average net assets..... 5.16%* 5.38% 5.13% 6.07% 6.65% 6.93%
Ratio of net investment
income, before waivers
from adviser, to
average net assets..... 5.05%* 5.13% 4.63% 4.94% 5.37% 5.30%
Portfolio turnover rate. 6.52% 6.30% 8.14% 5.76% 5.55% 2.65%
- ---------------------
</TABLE>
+ Commencement of issuance of shares
* Annualized
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gains
distributions at net asset value on the payable dates and a sale at net
asset value on the last day of each period reported. The figures do not
include sales charges; results for Class A and Class B shares would be
lower if sales charges were included. Total returns for periods of less
than one year have not been annualized.
36
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS D
- ---------------------------------------------------------- -------------------------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE YEAR FOR THE PERIOD
SIX MONTHS FOR THE YEAR ENDED JULY 1, 1991+ SIX MONTHS ENDED JULY 2, 1992+
ENDED FEBRUARY 28, THROUGH ENDED FEBRUARY 28, THROUGH
AUGUST 31, 1995 ------------------------- FEBRUARY 29, AUGUST 31, 1995 ----------------- FEBRUARY 28,
(UNAUDITED) 1995 1994 1993 1992 (UNAUDITED) 1995 1994 1993
- --------------- ------- ------- ------- -------------- --------------- ------- ------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.27 $ 11.03 $ 10.98 $ 10.12 $ 9.81 $ 10.28 $ 11.03 $ 10.99 $ 10.45
------- ------- ------- ------- ------ ------- ------- ------- -------
0.23 0.47 0.49 0.56 0.39 0.25 0.49 0.51 0.36
0.18 (0.66) 0.08 0.86 0.31 0.18 (0.65) 0.07 0.54
------- ------- ------- ------- ------ ------- ------- ------- -------
0.41 (0.19) 0.57 1.42 0.70 0.43 (0.16) 0.58 0.90
------- ------- ------- ------- ------ ------- ------- ------- -------
(0.23) (0.47) (0.49) (0.56) (0.39) (0.25) (0.49) (0.51) (0.36)
-- (0.10) (0.03) -- -- -- (0.10) (0.03) --
------- ------- ------- ------- ------ ------- ------- ------- -------
(0.23) (0.57) (0.52) (0.56) (0.39) (0.25) (0.59) (0.54) (0.36)
------- ------- ------- ------- ------ ------- ------- ------- -------
$ 10.45 $ 10.27 $ 11.03 $ 10.98 $10.12 $ 10.46 $ 10.28 $ 11.03 $ 10.99
======= ======= ======= ======= ====== ======= ======= ======= =======
4.06% (1.57)% 5.19% 14.35% 6.80% 4.19% (1.20)% 5.35% 8.38%
======= ======= ======= ======= ====== ======= ======= ======= =======
$13,101 $14,660 $19,193 $13,776 $6,026 $18,625 $21,095 $38,165 $19,553
1.77%* 1.76% 1.51% 1.10% 1.00%* 1.52%* 1.52% 1.27% 0.90%*
1.87%* 2.01% 1.99% 2.19% 2.20%* 1.62%* 1.75% 1.72% 1.83%*
4.42%* 4.63% 4.34% 5.22% 5.59%* 4.67%* 4.89% 4.55% 5.04%*
4.31%* 4.38% 3.86% 4.13% 4.39%* 4.57%* 4.65% 4.10% 4.11%*
6.52% 6.30% 8.14% 5.76% 5.55% 6.52% 6.30% 8.14% 5.76%
</TABLE>
37
