PAINEWEBBER
SEMIANNUAL REPORT
MONEY MARKET
FUND
PAINEWEBBER
(C)1999 PaineWebber Incorporated
Member SIPC
AUGUST 31, 1999
<PAGE>
SEMIANNUAL REPORT
October 15, 1999
Dear Shareholder,
We are pleased to present you with the semiannual report for the PaineWebber
Money Market Fund (the "Fund") for the six-month period ended August 31, 1999.
MARKET REVIEW
- -------------------------------------------------------------------------------
During the six-month period, fears of higher inflation became the dominant
theme of the fixed income markets, and bond yields rose in response. Interest
rates rose as the markets reacted to improving economic prospects in Asia and
Latin America, rapidly growing U.S. demand, higher oil prices and fears that
future wage increases might not be offset by commodity deflation. By the end of
the semiannual period on August 31, 1999, the Federal Reserve had raised the
federal funds rate twice, by 0.25% each time, to 5.25%.
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PORTFOLIO REVIEW
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PERFORMANCE AND CHARACTERISTICS AS OF 8/31/99
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7-Day Weighted Average
Yield1 Maturity
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Class A Shares 4.31% 28.7 days
Class B Shares 3.74% 28.7 days
Class C Shares 3.84% 28.7 days
- -------------------------------------------------------------------------------
1Yields will fluctuate.
HIGHLIGHTS
We remained slightly bullish on the fixed income markets during the first
part of the period, expecting interest rates to remain unchanged. Since we did
not expect major changes in rates, we kept the Fund's weighted average maturity
slightly long, about 5-10 days above the average of its peer group. During the
last three months of the period, we shortened the maturity to 3-5 days above the
peer group average in anticipation of rising interest rates. We maintained our
focus on top-tier credit quality instruments.
SECTOR ALLOCATION*
As of 8/31/99 As of 2/28/99
- -------------------------------------------------------------------------------
Commercial Paper 64.6 U.S. Gov't & Agency 46.8
U.S. Gov't & Agency 18.0 Commercial Paper 34.3
Short-Term Corporate 5.6 Short-Term Corporate 8.2
Certificates of Deposit 7.1 Certificates of Deposit 4.1
Bank Notes 4.7 Bank Notes 3.3
Repurchase Agreements 0.0 Repurchase Agreements 3.3
- -------------------------------------------------------------------------------
*Weightings represent percentages of portfolio assets as of August 31, 1999, or
as of February 28, 1999. The Fund's portfolio is actively managed and its
composition will vary over time.
1
<PAGE>
SEMIANNUAL REPORT
PAINEWEBBER
MONEY MARKET FUND
PROFILE
AS OF AUGUST 31, 1999
GOAL:
principal stability and current income
PORTFOLIO MANAGER:
Susan P. Ryan,
Mitchell Hutchins Asset Management Inc.
COMMENCEMENT:
July 1, 1991, Class A
shares; September 26,
1986, Class B shares;
July 14, 1992, Class C
shares
DIVIDEND PAYMENTS:
monthly
TOTAL NET ASSETS:
$91.0 million
OUTLOOK
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We are closely monitoring the market as Y2K approaches. It is likely that issues
of new short-term debt will decrease toward year-end, limiting supplies and
potentially triggering price increases. Also, investors might seek safety by
reducing their exposure to corporate credits and increasing their positions in
U.S. government securities, precipitating a "flight to quality." To provide
sufficient liquidity at year-end, we expect to maintain a position of about 20%
in U.S. Government securities. However, this planned defensive posture may
change in response to changing market circumstances as Y2K approaches. Our
ultimate objective in managing your investments is to help you successfully meet
your financial goals. We thank you for your continued support and welcome any
comments or questions you may have. For a QUARTERLY REVIEW of a fund in the
PaineWebber Family of Funds,2 please contact your Financial Advisor.
Sincerely,
MARGO ALEXANDER BRIAN M. STORMS
Chairman and Chief Executive Officer President and Chief Operating Officer
Mitchell Hutchins Asset Management Inc. Mitchell Hutchins Asset Management Inc.
DENNIS L. MCCAULEY SUSAN P. RYAN
Managing Director and Senior Vice President
Chief Investment Officer -- Mitchell Hutchins Asset Management Inc.
Fixed Income
Mitchell Hutchins Asset Management Inc.
This letter is intended to assist shareholders in understanding how the Fund
performed during the six-month period ended August 31, 1999, and reflects our
views at the time of its writing. Of course, these views may change in response
to changing circumstances. We encourage you to consult your Financial Advisor
regarding your personal investment program.
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2Mutual funds are sold by prospectus only. The prospectuses for the funds
contain more complete information regarding risks, charges and expenses, and
should be read carefully before investing.
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2
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PAINEWEBBER MONEY MARKET FUND
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AUGUST 31, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
-------- --------- --------- ---------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY [email protected]%
$ 3,009 Federal Home Loan Mortgage ............... 09/15/99 5.030% $ 3,003,114
13,362 Federal National Mortgage Association .... 09/01/99 5.420 13,362,000
---------
Total U.S. Government and Agency Obligations
(cost--$16,365,114) ................................. 16,365,114
---------
BANK NOTES--4.68%
DOMESTIC--4.68%
2,000 First Tennessee Bank N. A. - Memphis ..... 08/31/99 5.577* 2,000,000
2,250 Key Bank N.A. ............................ 04/25/00 5.750 2,257,277
---------
Total Bank Notes (cost--$4,257,277) 4,257,277
---------
CERTIFICATES OF DEPOSIT--7.14%
YANKEE--7.14%
2,000 Bayerische Hypo-und Vereinsbank AG ....... 04/28/00 5.150 1,998,803
2,000 Canadian Imperial Bank of Commerce ....... 02/29/00 to 04/12/00 5.100 to 5.195 1,999,904
2,000 Royal Bank of Canada ..................... 08/31/99 5.395* 1,999,328
500 Toronto-Dominion Bank .................... 04/17/00 5.060 499,819
---------
Total Certificates of Deposit (cost--$6,497,854) 6,497,854
---------
COMMERCIAL [email protected]%
ASSET BACKED-AUTO & TRUCK--3.30%
3,000 New Center Asset Trust ................... 09/07/99 5.140 2,997,430
---------
ASSET BACKED-BANKING--0.78%
706 Woodstreet Funding Corp. ................. 09/10/99 5.300 705,065
---------
AUTO & TRUCK--12.07%
3,000 BMW US Capital Corp. ..................... 09/01/99 5.170 3,000,000
2,000 Diamler-Chrysler N.A. Holding Corp. ...... 09/16/99 5.150 1,995,708
3,000 Ford Motor Credit Corp. .................. 09/27/99 5.240 2,988,647
3,000 General Motors Acceptance Corp. .......... 09/07/99 5.150 2,997,425
---------
10,981,780
---------
BANKING--3.30%
3,000 Morgan (J.P.) & Co., Inc. ................ 09/07/99 5.150 2,997,425
---------
BROKER-DEALER--4.40%
4,000 Merrill Lynch & Co., Inc. ................ 09/01/99 5.550 4,000,000
---------
CHEMICALS--7.69%
4,000 Dow Chemical Co. ......................... 09/01/99 5.550 4,000,000
3,000 Henkel Corp. ............................. 09/13/99 5.200 2,994,800
---------
6,994,800
---------
COMPUTERS--3.29%
3,000 IBM Credit Corp. ......................... 09/21/99 5.210 2,991,317
---------
</TABLE>
3
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PAINEWEBBER MONEY MARKET FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
-------- --------- --------- ---------
<S> <C> <C> <C>
COMMERCIAL PAPER@--(CONCLUDED)
DRUGS, HEALTH CARE--3.29%
$ 3,000 Warner Lambert Co. ....................... 09/13/99 5.180% $ 2,994,820
-----------
ELECTRONICS--2.50%
2,279 Motorola Inc. ............................ 09/09/99 5.200 2,276,366
-----------
ENERGY--4.40%
4,000 Koch Industries .......................... 09/01/99 5.530 4,000,000
-----------
FINANCE-SUBSIDIARY--3.29%
3,000 Deutsche Bank Financial Inc. ............. 09/09/99 5.155 2,996,563
-----------
FOOD & BEVERAGE--4.40%
4,000 Diageo Capital PLC ....................... 09/01/99 5.530 4,000,000
-----------
INSURANCE--3.29%
3,000 American General Corp. ................... 09/14/99 5.160 2,994,410
-----------
METALS & MINING--3.29%
3,000 Rio Tinto America Inc. ................... 09/22/99 5.250 2,990,812
-----------
PRINTING & PUBLISHING--3.29%
3,000 Gannett Co. .............................. 09/16/99 5.150 2,993,562
-----------
TELECOMMUNICATIONS--2.19%
2,000 BellSouth Capital Funding Corp. .......... 09/14/99 5.150 1,996,281
-----------
Total Commercial Paper (cost--$58,910,631) 58,910,631
-----------
SHORT-TERM CORPORATE OBLIGATIONS--5.62%
BANKING--1.99%
1,800 Bank One Corp. ........................... 03/24/00 6.700 1,814,914
-----------
FINANCE-DIVERSIFIED--3.63%
3,300 Associates Corp. N. A. ................... 09/17/99 6.680 3,301,606
-----------
Total Short-Term Corporate Obligations (cost--$5,116,520) 5,116,520
-----------
Total Investments (cost--$91,147,396 which approximates
cost for federal income tax purposes)--100.20% ..... 91,147,396
Liabilities in excess of other assets--(0.20)% ....... (180,031)
------------
Net Assets (applicable to 40,240,681, 34,377,356 and 16,350,208
shares of Class A, Class B and Class C, respectively,
each equivalent to $1.00 per share)--100.00% ....... $90,967,365
===========
</TABLE>
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* Variable rate securities-maturity date reflects earlier of reset date or
maturity date. The interest rates shown are the current rates as of August
31, 1999, and reset periodically.
@ Interest rates shown are discount rates at date of purchase.
Weighted Average Maturity--29 Days
See accompanying notes to financial statements
4
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PAINEWEBBER MONEY MARKET FUND
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
AUGUST 31, 1999
(UNAUDITED)
--------------
<S> <C>
INVESTMENT INCOME:
Interest ....................................................................... $1,988,174
---------
EXPENSES:
Investment advisory and administration ......................................... 192,735
Service fees--Class A .......................................................... 49,842
Service and distribution fees--Class B ......................................... 89,423
Service and distribution fees--Class C ......................................... 50,153
Legal and audit ................................................................ 40,355
State registration fees ........................................................ 33,873
Reports and notices to shareholders ............................................ 24,922
Transfer agency and related services fees ...................................... 23,567
Directors' fees ................................................................ 5,250
Custody and accounting ......................................................... 4,632
Other expenses ................................................................. 1,118
---------
515,870
---------
NET INVESTMENT INCOME .......................................................... 1,472,304
NET REALIZED LOSS FROM INVESTMENT TRANSACTIONS ................................. (937)
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........................... $1,471,367
=========
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX
MONTHS ENDED FOR THE
AUGUST 31, 1999 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1999
-------------- ---------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income .......................................................... $ 1,472,304 $ 2,554,316
Net realized gains (losses) from investment transactions ....................... (937) 11,401
----------- -----------
Net increase in net assets resulting from operations ........................... 1,471,367 2,565,717
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income--Class A ................................................. (820,482) (1,514,274)
Net investment income--Class B ................................................. (416,798) (672,891)
Net investment income--Class C ................................................. (235,024) (367,151)
----------- -----------
(1,472,304) (2,554,316)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS .......... (1,042,967) 58,993,707
----------- -----------
Net increase (decrease) in net assets .......................................... (1,043,904) 59,005,108
NET ASSETS:
Beginning of period ............................................................ 92,011,269 33,006,161
----------- -----------
End of period .................................................................. $90,967,365 $92,011,269
=========== ===========
See accompanying notes to financial statements
</TABLE>
5
<PAGE>
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.
The Fund currently offers Class A, Class B and Class C shares. Each class
represents interests in the same assets of the Fund and the classes are
identical except for differences in their sales charge structures, ongoing
service and distribution charges and certain transfer agency and related
services 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 service and/or distribution plan. All classes of shares may
be obtained only through an exchange of shares of the corresponding class of
other PaineWebber mutual funds.
The preparation of financial statements in accordance with generally accepted
accounting principles requires Fund management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies:
VALUATION 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.
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"), an asset management
subsidiary of PaineWebber Incorporated ("PaineWebber"), and investment adviser
and administrator of the Fund.
NET INVESTMENT INCOME AND INVESTMENT TRANSACTIONS--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 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.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-dividend date. Dividends and distributions are determined in
accordance with federal income tax regulations which may differ from generally
accepted accounting principles. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the capital accounts
based on their federal tax-basis treatment; temporary differences do not require
reclassification.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
CONCENTRATION OF RISK
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.
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, 1999, the Fund owed Mitchell Hutchins $40,720 for investment advisory
and administration fees. 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 service and/or distribution pertaining to the Class A, Class B and
Class C 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 C shares. At August 31, 1999 the Fund owed Mitchell
Hutchins $42,017 in service and distribution fees.
Mitchell Hutchins also receives the proceeds of the contingent deferred sales
charges paid upon certain redemptions of Class A, Class B and Class C shares.
Mitchell Hutchins has informed the Fund that for the six months ended August 31,
1999, it earned $201,446 in sales charges. TRANSFER AGENCY AND RELATED SERVICES
FEES
PaineWebber provides transfer agency related services to the Fund pursuant
to a delegation of authority from PFPC, Inc., the Fund's transfer agent, and is
compensated for these services by PFPC, Inc., not the Fund. For the six months
ended August 31, 1999, PaineWebber received from PFPC, Inc., not the Fund,
approximately 52% of the total transfer agency and related services fees
collected by PFPC, Inc. from the Fund.
OTHER LIABILITIES
At August 31, 1999, the amounts payable for Fund shares repurchased and
dividends payable aggregated $303,937 and $60,140, respectively.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 C
------------------------ ----------------------- -----------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
AUGUST 31, FEBRUARY 28, AUGUST 31, FEBRUARY 28, AUGUST 31, FEBRUARY 28,
1999 1999 1999 1999 1999 1999
---------- ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 443,318,493 724,078,370 46,572,175 48,405,259 88,098,834 185,696,212
Shares repurchased (465,777,720) (683,232,436) (29,365,164) (39,655,873) (84,900,169) (178,311,578)
Dividends reinvested 459,642 1,135,151 361,554 611,122 189,388 267,480
Shares converted from Class B to Class A 1,980,531 5,296,686 (1,980,531) (5,296,686) -- --
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in shares
outstanding (20,019,054) 47,277,771 15,588,034 4,063,822 3,388,053 7,652,114
=========== =========== ========== ========== ========== ==========
</TABLE>
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 federal excise tax.
At February 28, 1999, the Fund had capital loss carryforwards of $11,343
available as a reduction, to the extent provided in the regulations, of future
net realized gains, which will expire between February 28, 1999 and February 28,
2006. 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.
8
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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 FOR THE YEARS ENDED
ENDED ------------------------------------------------------------
AUGUST 31, FEBRUARY 28, FEBRUARY 29,FEBRUARY 28,
1999 ----------------------------------- ----------- -----------
(UNAUDITED) 1999 1998 1997 1996 1995
---------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Net investment income ................................... 0.020 0.042 0.042 0.040 0.046 0.037
Dividends from net investment income .................... (0.020) (0.042) (0.042) (0.040) (0.046) (0.037)
------ ------ ------ ------ ------ ------
Net asset value, end of period .......................... $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
Total investment return(1) .............................. 2.01% 4.32% 4.33% 4.11% 4.69% 3.95%
====== ====== ====== ====== ====== ======
Ratios/Supplemental data:
Net assets, end of period (000's) ....................... $40,247 $60,267 $12,983 $11,808 $23,735 $21,042
Expenses to average net assets .......................... 1.10%* 1.17% 1.41% 1.42% 1.31% 1.06%
Net investment income to average net assets ............. 4.12%* 4.29% 4.29% 4.09% 4.68% 3.85%
</TABLE>
- ------------------
* Annualized.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of the period reported, reinvestment of all dividends and
distributions at net asset value on the payable dates and a sale at net asset
value on the last day of each period reported. The figures do not include sales
charges; results would be lower if sales charges were included. Total investment
returns for periods of less than one year have been annualized.
10
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PAINEWEBBER MONEY MARKET FUND
<TABLE>
<CAPTION>
CLASS B CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE YEARS ENDED SIX MONTHS FOR THE YEARS ENDED
ENDED --------------------------------------------------------- ENDED
AUGUST 31, FEBRUARY 28, FEBRUARY 29, FEBRUARY 28, AUGUST 31, FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
1999 ------------------------------- ---------- ---------- 1999 ------------------------- -------------- ----------
(UNAUDITED) 1999 1998 1997 1996 1995 (UNAUDITED) 1999 1998 1997 1996 1995
- --------- -------- ---------- -------- ---------- ---------- -------- -------- -------- ------- --------- ---------
<S> <C> <C> <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 $ 1.00 $ 1.00
------ ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
0.017 0.037 0.037 0.035 0.041 0.032 0.017 0.037 0.037 0.034 0.041 0.033
(0.017) (0.037) (0.037) (0.035) (0.041) (0.032) (0.017) (0.037) (0.037) (0.034) (0.041) (0.033)
------ ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ======= ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
1.74% 3.79% 3.81% 3.60% 4.18% 3.41% 1.75% 3.81% 3.78% 3.50% 4.14% 3.44%
====== ======= ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
$34,370 $18,782 $14,715 $18,389 $26,592 $39,123 $16,350 $ 12,962 $ 5,308 $5,504 $5,754 $16,137
1.60%* 1.73% 1.90% 1.90% 1.79% 1.55% 1.59%* 1.70% 1.95% 1.99% 1.79% 1.55%
3.50%* 3.75% 3.78% 3.55% 4.17% 3.46% 3.51%* 3.80% 3.76% 3.47% 4.27% 3.35%
</TABLE>
11
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- -------------------------------------------------------------------------------
DIRECTORS
E. Garrett Bewkes, Jr. Meyer Feldberg
CHAIRMAN George W. Gowen
Margo N. Alexander Frederic V. Malek
Richard Q. Armstrong Carl W. Schafer
Richard R. Burt Brian M. Storms
Mary C. Farrell
PRINCIPAL OFFICERS
Margo N. Alexander Paul H. Schubert
PRESIDENT VICE PRESIDENT AND TREASURER
Victoria E. Schonfeld Dennis McCauley
VICE PRESIDENT VICE PRESIDENT
Dianne E. O'Donnell Susan P. Ryan
VICE PRESIDENT AND SECRETARY VICE PRESIDENT
INVESTMENT ADVISER,
ADMINISTRATOR AND DISTRIBUTOR
Mitchell Hutchins Asset Management Inc.
51 West 52nd Street
New York, New York 10019
THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE FUND
WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN OPINION
THEREON.
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.
