<PAGE>
PAINEWEBBER AND
MITCHELL HUTCHINS/KIDDER, PEABODY MUTUAL FUNDS
PAINEWEBBER OFFERS A FAMILY OF 22 MUTUAL FUNDS WHICH ENCOMPASS A DIVERSIFIED
RANGE OF INVESTMENT GOALS. INVESTORS MAY EXCHANGE THEIR FUND SHARES WITH OTHER
FUNDS WITHIN THE FAMILY.
INCOME FUNDS
PW Global Income Fund
PW High Income Fund
PW Investment Grade Income Fund
PW Low Duration U.S. Government Income Fund
PW Strategic Income Fund
PW U.S. Government Income Fund
TAX-FREE INCOME FUNDS
PW California Tax-Free Income Fund
PW Municipal High Income Fund
PW National Tax-Free Income Fund
PW New York Tax-Free Income Fund
GROWTH FUNDS
MH/KP Emerging Markets Equity Fund
MH/KP Small Cap Growth Fund
PW Capital Appreciation Fund
PW Global Equity Fund
PW Growth Fund
PW Regional Financial Growth Fund
PW Small Cap Value Fund
GROWTH AND INCOME FUNDS
MH/KP Asset Allocation Fund
PW Balanced Fund
PW Growth and Income Fund
PW Utility Income Fund
------------------
'c'1995 PAINEWEBBER INCORPORATED
[Logo]
Recycled
Paper
PAINEWEBBER
MONEY
MARKET
FUND
SEMI-ANNUAL REPORT
August 31, 1995
<PAGE>
- --------------------------------------------------------------------------------
October 15, 1995
Dear Shareholder,
During the six months ended August 31, 1995, the pace of U.S. economic growth
slowed, as consumer spending declined significantly from 1994 levels, and
markets for new and existing homes were sluggish until the close of the
six-month period, despite historically attractive mortgage rates. This slowdown
was in response to the Federal Reserve Board's increases in the benchmark
Federal Funds rate, the rate banks charge each other for overnight borrowing.
After seven short-term interest rate hikes between February 1994 and February
1995, the Federal Reserve Board raised the Federal Funds rate to 6.0%, and
effectively doubled short-term interest rates in twelve months.
Besides concerns over the strength of the recovery, news concerning the economy
centered around debate over whether inflation was still likely to become a
threat and details of efforts in Washington to implement a plan to balance the
budget. While the outcome of the budgetary process remains in question, the
perception that the Federal Reserve is winning its war against inflation is
becoming increasingly widespread. On July 6, 1995, the Federal Reserve cut the
benchmark Federal Funds rate by 0.25%. This decrease, the first in nearly three
years, signals that the Federal Reserve Board believes that inflationary
pressures have eased enough to accommodate an adjustment in monetary policy from
restrictive toward neutral.
After a 13-month long correction in the wake of the Fed's monetary tightening
policy, interest rates trended lower and the bond market rallied from
mid-November throughout the first half of 1995. The U.S. stock market has also
rallied strongly during 1995, pushing the popular Dow Jones Industrial Average
and S&P 500 indices to a string of new highs. The value of the U.S. dollar
declined for much of the period, but began to show signs of recovery in August.
Although the U.S. economy appears to have been basically flat in the second
quarter, the second half of 1995 should show signs of further, albeit slower,
growth.
PORTFOLIO REVIEW
PaineWebber Money Market Fund's current yields for Class A, B and D shares for
the seven-day period ended August 31, 1995 were 4.38%, 3.91% and 3.88%,
respectively. The Fund maintained a weighted average maturity of 21 days as of
August 31, 1995.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Going forward, the Fund expects to maintain a neutral weighted average maturity
as short-term rates find stability. The Federal Reserve Board appears to have
engineered a soft landing and it seems as though the next short-term interest
rate move will be another decrease in the Federal Funds rate. However, if
inflation becomes problematic, further increases in short-term interest rates
could be possible. Investment decisions in the Fund will continue to be
dominated by credit quality and liquidity. Although we are interested in
maintaining higher yields, we will not do so by sacrificing the Fund's emphasis
on security, quality and liquidity.
We value you as a shareholder and as a client, and thank you for your continued
support. We welcome any comments or questions you may have.
Sincerely,
<TABLE>
<S> <C>
FRANK P.L. MINARD DENNIS L. MCCAULEY
FRANK P.L. MINARD DENNIS L. MCCAULEY
Chairman, Managing Director and Chief Investment
Mitchell Hutchins Asset Management Inc. Officer -- Fixed Income,
Mitchell Hutchins Asset Management Inc.
SUSAN P. MESSINA
SUSAN P. MESSINA
Senior Vice President,
Taxable Money Funds
Mitchell Hutchins Asset Management Inc.
</TABLE>
- --------------------------------------------------------------------------------
2
<PAGE>
PAINEWEBBER MONEY MARKET FUND
- --------------------------------------------------------------------------------
Statement of Net Assets
August 31, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- --------------------- ------------------ -----------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 16.86%
$ 1,000 Federal National Mortgage Association.......... 09/05/95 5.680*% $ 1,000,000
500 Student Loan Marketing Association............. 07/01/96 6.080* 500,000
8,000 U.S. Treasury Bills............................ 09/21/95 5.415@ 7,975,933
-----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(cost -- $9,475,933)................................... 9,475,933
-----------
CERTIFICATES OF DEPOSIT -- 5.34%
Yankee -- 5.34%
1,000 Dai-Ichi Kangyo Bank Ltd. ..................... 09/29/95 5.900 1,000,015
2,000 Fuji Bank Ltd. ................................ 09/07/95 5.875 2,000,004
-----------
TOTAL CERTIFICATES OF DEPOSIT (cost -- $3,000,019)......... 3,000,019
-----------
COMMERCIAL PAPER@ -- 76.21%
Asset - Backed -- 7.09%
2,000 New Center Asset Trust......................... 09/08/95 5.760 1,997,760
2,000 Preferred Receivables Funding Corp. ........... 10/05/95 5.770 1,989,101
-----------
3,986,861
-----------
Auto/Truck -- 5.31%
2,000 Daimler-Benz North America Corp. .............. 09/15/95 5.720 1,995,551
1,000 Toyota Motor Credit Corp. ..................... 11/13/95 6.300 987,225
-----------
2,982,776
-----------
Banking -- 12.44%
2,000 Abbey National North America................... 09/11/95 5.690 1,996,839
2,000 BEX America Finance Inc. ...................... 09/06/95 5.740 1,998,406
1,500 Commerzbank U.S. Finance Inc. ................. 09/01/95 5.730 1,500,000
1,500 CREGEM North America Inc. ..................... 09/14/95 5.710 1,496,907
-----------
6,992,152
-----------
Broker/Dealer -- 7.08%
2,000 CS First Boston, Inc. ......................... 10/02/95 5.760 1,990,080
2,000 Merrill Lynch & Co., Inc. ..................... 09/25/95 5.730 1,992,360
-----------
3,982,440
-----------
Business Services -- 3.56%
2,000 PHH Corp. ..................................... 09/01/95 5.730 2,000,000
-----------
Conglomerate -- 1.76%
1,000 BTR Dunlop Finance Inc. ....................... 11/21/95 5.670 987,243
-----------
Electronics -- 1.78%
1,000 Siemens Corp. ................................. 09/13/95 5.720 998,093
-----------
Energy -- 3.54%
2,000 Chevron Oil Finance Co. ....................... 09/26/95 5.750 1,992,014
-----------
Finance-Conduit -- 0.99%
559 Metlife Funding Inc. .......................... 09/05/95 5.720 558,645
-----------
</TABLE>
3
<PAGE>
PAINEWEBBER MONEY MARKET FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- --------------------- ------------------ -----------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER@ -- (concluded)
Finance-Consumer -- 10.67%
$ 2,000 American General Finance Corp. ................ 09/07/95 5.730% $ 1,998,090
2,000 Household Finance Corp. ....................... 09/01/95 5.730 2,000,000
2,000 Transamerica Finance Corp. .................... 09/01/95 5.740 2,000,000
-----------
5,998,090
-----------
Finance-Diversified -- 7.10%
2,000 Associates Corp. of North America.............. 09/05/95 5.730 1,998,727
2,000 Sanwa Business Credit Corp. ................... 09/22/95 5.780 1,993,257
-----------
3,991,984
-----------
Finance-Independent -- 1.77%
1,000 National Rural Utilities Co-op Finance
Corp. ......................................... 09/20/95 5.920 996,876
-----------
Food & Beverage -- 3.55%
2,000 Heinz (H.J.) Co. .............................. 09/21/95 5.730 1,993,633
-----------
Insurance -- 3.55%
2,000 Prudential Funding Corp. ...................... 09/19/95 5.620 1,994,380
-----------
Metals & Mining -- 2.47%
1,400 RTZ America Inc. .............................. 10/19/95 5.630 1,389,491
-----------
Retail-Merchandise -- 3.55%
2,000 Wal-Mart Stores Inc. .......................... 09/08/95 5.700 1,997,783
-----------
TOTAL COMMERCIAL PAPER (cost -- $42,842,461)............... 42,842,461
SHORT-TERM CORPORATE OBLIGATIONS -- 3.11%
Food & Beverage -- 2.22%
1,250 Anheuser-Busch Companies, Inc. ................ 09/18/95 4.720 1,249,319
-----------
Miscellaneous -- 0.89%
500 Beta Finance Inc. ............................. 12/08/95 7.050 500,000
-----------
TOTAL SHORT-TERM CORPORATE OBLIGATIONS
(cost -- $1,749,319)....................................... 1,749,319
-----------
REPURCHASE AGREEMENT -- 0.27%
155 Repurchase Agreement dated 08/31/95, with PNC
Securities Corp., collateralized by $165,000
U.S. Treasury Notes, 5.00% due 01/31/99;
proceeds: $155,022 (cost -- $155,000).......... 09/01/95 5.000 155,000
-----------
TOTAL INVESTMENTS (which approximates cost for federal
income tax purposes) -- 101.79%..........................
57,222,732
Liabilities in excess of other assets -- (1.79%)...........
(1,006,554)
-----------
NET ASSETS (applicable to 15,406,719; 32,249,990; and
8,578,674 shares of Class A, Class B, and Class D,
respectively, each equivalent to $1.00 per
share) -- 100.00%........................................ $56,216,178
-----------
-----------
</TABLE>
- ------------
* Variable Rate Security -- Maturity date reflects earlier of reset date or
maturity date. The interest rates shown are the current rates as of August
31, 1995 and reset periodically.
@ Interest rates shown represent yield to maturity for discounted securities.
Weighted average maturity -- 21 days
See accompanying notes to financial statements
4
<PAGE>
PAINEWEBBER MONEY MARKET FUND
- --------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended August 31, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest........................................................................................ $2,115,375
----------
EXPENSES:
Investment advisory and administration.......................................................... 172,773
Service fees -- Class A......................................................................... 23,876
Service and distribution fees -- Class B........................................................ 136,914
Service and distribution fees -- Class D........................................................ 50,619
Legal and audit................................................................................. 39,391
Transfer agency and service fees................................................................ 33,920
Custody and accounting.......................................................................... 28,022
Reports and notices to shareholders............................................................. 15,556
State registration fees......................................................................... 7,380
Directors' fees................................................................................. 5,000
Other expenses.................................................................................. 13,299
----------
526,750
----------
NET INVESTMENT INCOME............................................................................... 1,588,625
NET REALIZED GAINS FROM INVESTMENT TRANSACTIONS..................................................... 2,465
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................................ $1,591,090
----------
----------
</TABLE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Six Months
Ended For the
August 31, 1995 Year Ended
(unaudited) February 28, 1995
--------------- -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income............................................... $ 1,588,625 $ 3,802,358
Net realized gains (losses) from investment transactions............ 2,465 (6,398)
--------------- -----------------
Net increase in net assets resulting from operations................ 1,591,090 3,795,960
--------------- -----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income -- Class A.................................... (472,015) (1,257,492)
Net investment income -- Class B.................................... (811,300) (1,465,996)
Net investment income -- Class D.................................... (305,310) (1,078,870)
--------------- -----------------
(1,588,625) (3,802,358)
--------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS... (20,088,558) 42,855,410
--------------- -----------------
Net increase (decrease) in net assets................................... (20,086,093) 42,849,012
NET ASSETS:
Beginning of period................................................. 76,302,271 33,453,259
--------------- -----------------
End of period....................................................... $56,216,178 $76,302,271
--------------- -----------------
--------------- -----------------
</TABLE>
See accompanying notes to financial statements
5
<PAGE>
PAINEWEBBER MONEY MARKET FUND
- --------------------------------------------------------------------------------
Notes to Financial Statements -- (unaudited)
- --------------------------------------------------------------------------------
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Master Series, Inc. ('Master Series') was incorporated in Maryland
on October 29, 1985 and is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended, as an open-end,
diversified series investment company which currently offers two series of
shares: PaineWebber Money Market Fund ('Fund') and PaineWebber Balanced Fund.
The financial statements for PaineWebber Balanced Fund are not included herein.
Organizational Matters -- Prior to commencing its operations, the Fund had no
activities other than organizational matters and activities related to the
initial public offering and the issuance, at net asset value, of one Class B
share of the Fund to PaineWebber Incorporated ('PaineWebber').
The Fund offers Class A, Class B and Class D shares. Each class represents
interest in the same assets of the Fund and the classes are identical except for
differences in their sales charge structure, 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. All classes of
shares may be obtained only through an exchange of shares of the corresponding
class of other PaineWebber mutual funds.
Valuation and Accounting for Investments -- Investments are valued at amortized
cost which approximates market value. Investment transactions are recorded on
the trade date. Realized gains and losses from investment transactions are
calculated using the identified cost method. Interest income is recorded on an
accrual basis. Premiums are amortized and discounts are accreted as adjustments
to interest income and the identified cost of investments.
The ability of the issuers of the debt securities held by the Fund to meet their
obligations may be affected by economic developments, including those particular
to a specific industry or region.
Repurchase Agreements -- The Fund's custodian takes possession of the collateral
pledged for investments in repurchase agreements. The underlying collateral is
valued daily on a mark-to-market basis to ensure that the value, including
accrued interest, is at least equal to the repurchase price. In the event of
default of the obligation to repurchase, the Fund has the right to liquidate the
collateral and apply the proceeds in satisfaction of the obligation. Under
certain circumstances, in the event of default or bankruptcy by the other party
to the agreement, realization and/or retention of the collateral may be subject
to legal proceedings. The Fund may participate in joint repurchase agreement
transactions with other funds managed by Mitchell Hutchins Asset Management Inc.
('Mitchell Hutchins'), a wholly owned subsidiary of PaineWebber and investment
adviser and administrator of the Fund.
Net Investment Income -- Income and expenses (excluding class-specific expenses)
are allocated proportionately to each class of shares based upon the relative
net asset 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 upon the relative value of shares outstanding at
the beginning of the day (after adjusting for current capital share activity of
the respective classes). Class-specific expenses are charged directly to the
applicable class of shares.
6
<PAGE>
PAINEWEBBER MONEY MARKET FUND
- --------------------------------------------------------------------------------
Notes to Financial Statements -- (continued)
- --------------------------------------------------------------------------------
Federal Tax Status -- The Fund intends to distribute substantially all of its
taxable income and to comply with the other requirements of the Internal Revenue
Code applicable to regulated investment companies. Accordingly, no provision for
federal income taxes is required. In addition, by distributing during each
calendar year substantially all of its net investment income, capital gains and
certain other amounts, if any, the Fund intends not to be subject to a federal
excise tax. At February 28, 1995, the Fund had capital loss carryforwards of
$21,669 available as reductions, to the extent provided in the regulations, of
any future net realized gains, which will expire between February 28, 1999 and
February 28, 2003. 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.
Dividends and Distributions to Shareholders -- 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 federal income tax regulations, which may differ
from generally accepted accounting principles. These 'book/tax' differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal income tax classification. Net capital
gains, if any, will be distributed at least annually, but the Fund may make more
frequent distributions of such gains, if necessary, to maintain its net asset
value per share at $1.00 or to avoid income or excise taxes.
INVESTMENT ADVISER AND ADMINISTRATOR
The Board of Directors of Master Series has approved an Investment Advisory and
Administration Contract ('Advisory Contract') with Mitchell Hutchins, under
which Mitchell Hutchins serves as investment adviser and administrator of the
Fund. In accordance with the Advisory Contract, the Fund pays Mitchell Hutchins
an investment advisory and administration fee, which is accrued daily and paid
monthly, at the annual rate of 0.50% of the Fund's average daily net assets. At
August 31, 1995, the Fund owed Mitchell Hutchins $25,848 for investment advisory
and administration fees.
In compliance with applicable state securities laws, Mitchell Hutchins will
reimburse the Fund if and to the extent that the aggregate operating expenses in
any fiscal year, exclusive of taxes, interest, brokerage fees, distribution fees
and extraordinary expenses, exceed limitations imposed by various state
regulations. Currently, the most restrictive limitation applicable to the Fund
is 2.5% of the first $30 million of average daily net assets, 2.0% of the next
$70 million and 1.5% of any excess over $100 million. For the six months ended
August 31, 1995, no reimbursements were required pursuant to the above
limitation.
DISTRIBUTION PLANS
Mitchell Hutchins is the distributor of the Fund's shares and has appointed
PaineWebber as the exclusive dealer for the sale of those shares. Under separate
plans of distribution pertaining to the Class A, Class B and Class D shares, the
Fund pays Mitchell Hutchins monthly service fees at the annual rate of 0.25% of
the average daily net assets of each class of shares and monthly distribution
fees at an annual rate of 0.50% of the average daily net assets of Class B and
Class D shares. At August 31, 1995, the Fund owed Mitchell Hutchins $31,121 in
service and distribution fees.
7
<PAGE>
PAINEWEBBER MONEY MARKET FUND
- --------------------------------------------------------------------------------
Notes to Financial Statements -- (concluded)
- --------------------------------------------------------------------------------
Mitchell Hutchins also receives the proceeds of the contingent deferred sales
charges paid upon certain redemptions of Class B shares. Mitchell Hutchins has
informed the Fund that for the six months ended August 31, 1995, it earned
$156,109 in contingent deferred sales charges.
TRANSFER AGENCY SERVICE FEES
The Fund pays PaineWebber an annual fee of $4.00 per active PaineWebber
shareholder account for certain services not provided by the Fund's transfer
agent. For these services for the six months ended August 31, 1995, PaineWebber
earned $9,265 in service fees. At August 31, 1995, the Fund owed PaineWebber
$1,391 for such fees.
OTHER LIABILITIES
At August 31, 1995, the amounts payable for Fund shares repurchased and
dividends payable aggregated $855,605 and $187,087, respectively.
CAPITAL STOCK
There are 10 billion shares of $0.001 par value common stock authorized for
Master Series, of which 1 billion were allocated to the Fund. Transactions in
shares of common stock, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Class A Class B Class D
--------------------------- --------------------------- ---------------------------
For the For the For the
Six Months For the Six Months For the Six Months For the
Ended Year Ended Ended Year Ended Ended Year Ended
August 31, February 28, August 31, February 28, August 31, February 28,
1995 1995 1995 1995 1995 1995
----------- ------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold........................ 33,198,458 117,676,115 26,333,652 116,941,605 28,378,633 159,907,120
Shares repurchased................. (39,877,365) (113,830,133) (33,231,233) (86,598,306) (36,203,738) (154,003,721)
Shares converted from Class B to
Class A.......................... 640,833 2,107,427 (640,833) (2,107,427) -- --
Dividends reinvested in additional
Fund shares...................... 401,365 886,345 649,267 1,069,086 262,403 807,299
----------- ------------- ----------- ------------- ----------- -------------
Net increase (decrease) in shares
outstanding...................... (5,636,709) 6,839,754 (6,889,147) 29,304,958 (7,562,702) 6,710,698
----------- ------------- ----------- ------------- ----------- -------------
----------- ------------- ----------- ------------- ----------- -------------
</TABLE>
8
<PAGE>
PAINEWEBBER MONEY MARKET FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period is
presented below:
<TABLE>
<CAPTION>
Class A
--------------------------------------------------------------------
For the
Six
Months
Ended For the Years Ended For the Period
August 31, February 28, July 1, 1991`D'
1995 ------------------------------- to
(unaudited) 1995 1994 1993 February 29, 1992
----------- ------- ------- ------- ------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period............................. $1.00 $1.00 $1.00 $1.00 $1.00
----------- ------- ------- ------- --------
Net investment income............................... 0.025 0.037 0.016 0.022 0.026
Dividends from net investment income................ (0.025) (0.037) (0.016) (0.022) (0.026)
----------- ------- ------- ------- --------
Net asset value,
end of period................................... $1.00 $1.00 $1.00 $1.00 $1.00
----------- ------- ------- ------- --------
----------- ------- ------- ------- --------
Total investment return(1).......................... 2.48% 3.95% 1.64% 2.25% 2.47%
----------- ------- ------- ------- --------
----------- ------- ------- ------- --------
Ratios/supplemental data:
Net assets, end of period (000's)............... $15,406 $21,042 $14,204 $11,716 $3,806
Ratio of expenses to average net assets......... 1.17%* 1.06% 1.72% 1.74% 1.90%*
Ratio of net investment income to average net
assets........................................ 4.93%* 3.85% 1.70% 2.18% 3.61%*
</TABLE>
- ------------
* Annualized
`D' Commencement of issuance of shares.
(1) Total return is calculated assuming a $1,000 investment in Fund shares on
the first day of each period reported, reinvestment of all dividends and
capital gain 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 of Class B shares would be lower if
sales charges were included. Total return information for periods less than
one year is not annualized.
9
<PAGE>
PAINEWEBBER MONEY MARKET FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B Class D
----------------------------------------------------------------- ---------------------------------------------------
For the For the
Six For the Years Ended Six For the
Months ----------------------------------------------------- Months Years Ended
Ended Ended ----------------- For the Period
August 31, February 28, February 29, February 28, August 31, February 28, July 14, 1992'D'
1995 ----------------------------- ----------- ------------ 1995 ----------------- to
(unaudited) 1995 1994 1993 1992 1991 (unaudited) 1995 1994 February 28, 1993
---------- ------- ------- ------- ------- ------- ---------- ------- ------ -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
0.022 0.032 0.011 0.016 0.039 0.068 0.022 0.033 0.012 0.009
(0.022) (0.032) (0.011) (0.016) (0.039) (0.068) (0.022) (0.033) (0.012) (0.009)
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
2.23% 3.41% 1.12% 1.73% 4.16% 6.98% 2.23% 3.44% 1.19% 0.81%
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
------- ------- ------- ------- ------- ------- ------- ------- ------ ------
$32,235 $39,123 $9,819 $15,280 $29,341 $50,842 $8,575 $16,137 $9,430 $2,220
1.65%* 1.55% 2.25% 2.28% 2.06% 1.40% 1.66%* 1.55% 2.14% 2.14%*
4.43%* 3.46% 1.16% 1.69% 4.07% 6.82% 4.51%* 3.35% 1.36% 1.67%*
</TABLE>
10
<PAGE>
--------------------------------------
DIRECTORS
E. Garrett Bewkes, Jr., Chairman
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Frank P.L. Minard
Judith Davidson Moyers
--------------------------------------
OFFICERS
Margo N. Alexander
President
Victoria E. Schonfeld
Vice President
Dianne E. O'Donnell
Vice President and Secretary
Julian F. Sluyters
Vice President and Treasurer
--------------------------------------
INVESTMENT ADVISER,
ADMINISTRATOR AND
DISTRIBUTOR
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, New York 10019
--------------------------------------
This report is not to be used in
connection with the offering of shares
of the Fund unless accompanied or
preceded by an effective prospectus.
The financial information included
herein is taken from the records of
the Fund without examination by
independent accountants who do not
express an opinion thereon.
A prospectus containing more complete
information for any of the Funds
listed on the back cover can be
obtained from a PaineWebber investment
executive or correspondent firm. Read
the prospectus carefully before
investing.
STATEMENT OF DIFFERENCES
The copyright symbol shall be expressed as 'c'
The dagger symbol shall be expressed as 'D'
