PAINEWEBBER LIFE
MILESTONES SM
[Photo]
For life's important
moments and the means
to afford them
[Photo]
[Photo]
Semi-Annual Report
June 30, 1995
[Photo]
[Photo]
<PAGE>
Dear Contract Owner:
We are pleased to present the June 30, 1995 Semi-Annual Report for
Milestones, offered exclusively through PaineWebber. This report contains
important information about the PaineWebber Life Variable Annuity Account and
PaineWebber Series Trust, including financial statements for the six months
ended June 30, 1995.
INVESTMENT OVERVIEW--DOMESTIC
During the six months ended June 30, 1995, the pace of U.S. economic growth
was perceived to have slowed in response to the Federal Reserve Board's repeated
increases in the benchmark Federal Funds rate, the rate banks charge each other
for overnight borrowing. The Federal Reserve Board raised the Federal Funds rate
to 6.0% after seven short-term interest rate hikes between February 1994 and
February 1995. On July 6, 1995, the Federal Reserve cut the benchmark Federal
Funds rate by 0.25% to 5.75%. 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 conditions.
The U.S. bond and stock markets rallied in the first half of 1995. Interest
rates trended downward, as the perception that the Federal Reserve had won its
battle with inflation and that the next policy action would be to lower
short-term interest rates became widespread. Strength in corporate earnings
pushed stock prices higher. Other important developments concerning the U.S.
economy during the six months included the dismal performance of the dollar and
efforts in Washington to implement a plan to balance the budget. Employment
reports indicated a slowing economy, with consumer spending declining
significantly from 1994 and consumer credit reports showing high ratios of
installment debt to disposable income. Side effects of higher interest rates
lingered, however. Markets for new and existing homes were sluggish until the
close of the six-month period, despite historically attractive mortgage rates.
Although the U.S. economy appears to have been flat in the second quarter, the
second half of 1995 should show signs of further, albeit slower, growth.
INVESTMENT OVERVIEW--GLOBAL
During the six months ended June 30, 1995, two crises shook the financial
world and led to an investor flight to quality. First was the overall decline in
emerging markets on the heels of the Mexican government's devaluation of the
peso in December 1994, followed by the unraveling of Barings plc, the British
investment bank, in February 1995. Another important development was the U.S.
dollar's continued depreciation against the yen and the Deutschemark.
1995 began with violent swings in currencies. Countries with weakening
currencies--the United States, Italy, Spain, Sweden and Mexico--might experience
improving trade balances, but lower than expected growth. For the United States,
where 40% of total exports go to emerging markets and over 10% to Latin America,
declining exports to these markets could significantly impact U.S. GDP growth.
Those countries that witnessed strong upward moves in currencies--Germany, Japan
and Switzerland--might be impacted by lower growth as well. Both Japan's and
Germany's recent economic turnarounds were due to strong export growth, which
will probably be negatively impacted by the strong yen and Deutschemark.
MONEY MARKET PORTFOLIO
In anticipation of a possible Federal Reserve Board action, the Portfolio
maintained a neutral weighted average maturity during the six months ended June
30, 1995. The Federal Reserve's
1
<PAGE>
consecutive increases in the Federal Funds rate during 1994 and early 1995 were
implemented to slow the pace of economic growth and forestall inflation.
However, on July 6, 1995, the Federal Reserve cut the Federal Funds rate by
0.25%, reducing the Federal Funds rate to 5.75%.
The Portfolio's money market instruments' seven-day average yield was 6.95%
as of June 30, 1995. Going forward, the Portfolio will maintain a neutral
weighted average maturity as short-term rates find stability. On June 30, 1995,
the Portfolio's weighted average maturity was 35 days. 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 Portfolio 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
Portfolio's emphasis on security, quality and liquidity.
GROWTH PORTFOLIO
During the six months ended June 30, 1995, the Portfolio underperformed
relative to the Standard & Poor's 500 Index. One factor affecting the
Portfolio's return was its higher weighting in small and mid-cap companies,
which have market capitalizations of less than $1 billion. During most of the
first half of the year, these stocks underperformed versus large-capitalization
stocks, as investors flocked to large-cap issues.
There were no major portfolio shifts during the six months ended June 30,
1995. Although small and mid-cap companies were out of favor during the period,
most posted earnings in line with expectations. There were signs in the second
quarter that investors were rotating into small and mid-cap companies, in search
of future earnings. We continue to believe that these companies have sound
fundamentals and offer attractive prospects for growth. Another area of
concentration continued to be the "Information Highway." While much investor
attention has been focused on who will build the "Highway" into the home, we
have concentrated on the business-oriented market and the variety of investment
opportunities it offers. We also continued our focus on companies that have
managed to reduce expenses, offer quality goods and services and pass on
productivity gains to consumers in the form of low prices. We believe companies
that can deliver products at the lowest price will be profitable in a slow
economic growth environment.
Net assets of the Portfolio totalled $45.2 million as of June 30, 1995. As
of that date, investments consisted of approximately 86.6% common stocks, 0.9%
preferred stocks, 0.6% long-term debt securities, and 11.9% long-term U.S.
government obligations and cash equivalents.
GLOBAL GROWTH PORTFOLIO
The six months ended June 30, 1995 were particularly turbulent for
international investors. In addition to the events involving Mexico's currency
and Barings plc, United States dollar weakness continued versus the Deutschemark
and many other European currencies. The result was falling equity markets due to
the expectation of lower corporate earnings and economic growth estimates.
Emerging markets experienced considerable turbulence after the peso devaluation
through April 1995, when a degree of recovery occurred.
Effective March 23, 1995, GE Investment Management Inc. (GEIM), a subsidiary
of GE Investments, became the sub-advisor of the Portfolio. Ralph Layman, who
heads the International Equity Department at GEIM, has been named manager of the
Portfolio. Mr. Layman's investment approach is a bottom-up stock picking style
that focuses on targeting undervalued stocks. He is a long-
2
<PAGE>
term investor, and he and his management team look at companies on a three- to
five-year time horizon. They look for globally competitive companies with a
secular growth story, such as new proprietary technology, management changes, or
restructuring. Asset allocation decisions are not made by country or industry.
Mr. Layman is a stock picker first and the country and industry allocation
develops from the stock selection process. However, diversification across
industries and countries is utilized as a risk control measure. He will continue
to look for value in stocks whose share prices have fallen due to market
volatility and sentiment and whose growth fundamentals remain strong.
The new portfolio management team see value in continental Europe, where
stocks are relatively cheap. Europe is pursuing long-term growth through
cost-cutting measures similar to those used by the United States a few years
ago. Their outlook for Mexico going forward is more positive because many
companies have restructured to reduce cost structures and repositioned their
products for export. Additionally, sound opportunities exist in the growing
Pacific region, excluding Japan, which is currently overvalued.
Going forward, Mr. Layman believes these are challenging times in world
equity markets. World growth seems to have slowed and as the operating
environment becomes more competitive, stock picking will become much more
important. Mr. Layman remains committed to his stock picking discipline, ready
to take advantage of investment opportunities offered by volatile markets.
As of June 30, 1995, net assets of the Portfolio totalled $34.7 million.
Investments consisted of approximately 89.9% preferred and common stocks and
8.5% short-term obligations and cash equivalents. By region, approximately 38.6%
of the Portfolio was invested in Europe, 24.1% in Asia, and 21.3% in North
America.
GLOBAL INCOME PORTFOLIO
During the six months ended June 30, 1995, the Portfolio benefitted from its
conservative interest rate, currency and duration strategies. (Duration is a
measurement of a portfolio's sensitivity to changes in interest rates.) The
first quarter of 1995 was marked by a particularly weak U.S. dollar, and the
Portfolio benefitted from its currency exposure in Germany, Denmark and the
Netherlands. During the period, the Portfolio maintained a more conservative
exposure to foreign currency risk than many of its competitors. Additionally,
the Portfolio did not participate in the substantial rally in yen-denominated
Japanese bonds during this time. Japanese bonds tend to have low yields and, in
keeping with the Portfolio's income focus, we did not invest in Japanese bonds
or currency.
The Portfolio focused on the short and intermediate sector of the yield
curve in both foreign and domestic bond markets because we believed this sector
offered value and because we did not want to extend portfolio risk with longer
duration bonds. Because emerging market debt exposure was eliminated during the
third quarter of 1994 when the Portfolio's credit quality was upgraded, the
Portfolio avoided the overall decline in emerging market debt after the Mexican
peso devaluation.
Going forward, our outlook remains positive for world fixed income markets.
Slower worldwide growth has provided a benevolent interest rate environment,
with less pressure for tighter monetary policy. Fixed income markets are
generally more liquid than they were in 1994, and this environment should
benefit many of the higher yielding, smaller markets in which the Fund invests.
The large U.S. current account deficit has continued to exert downward pressure
on the dollar and without a substantial improvement in the U.S. trade balance,
we do not foresee an extended dollar rally. However, currency markets are
extremely difficult to predict and often fluctuate more in response to sentiment
than economic fundamentals. As a result, we intend to maintain only moderate
currency exposure in the Portfolio.
3
<PAGE>
Net assets of the Portfolio totalled $48.2 million as of June 30, 1995. The
Portfolio's investments consisted of approximately 75.9% long-term debt
securities, 19.8% short-term debt securities, 2.4% repurchase agreements and
1.9% cash and cash equivalents.
GOVERNMENT PORTFOLIO
The bulk of the Portfolio's returns during the six months ended June 30,
1995 came from price appreciation resulting from a significant decline in
interest rates. Market psychology became increasingly fixated upon a soft
landing or possibly even a recession, and the prospect that the Fed had finished
its tightening, and was more inclined to ease. From December 1, 1994 through the
end of June, the 30-year U.S. Treasury bond enjoyed close to a 140-basis-point
rally.
As of June 30, 1995, 25.8% of net assets were invested in international
government and Supra-National issues, including the Alberta Province of Canada
and the African Development Bank. Approximately 8% of the Portfolio was invested
in U.S government agency securities. Mortgage pass-through securities of Freddie
Mac constituted 29.7% of the Portfolio, with the remaining 31% of net assets
held in U.S. Treasuries. A more conservative management style has been adopted
for the Fund, emphasizing liquidity and more rigorous analysis of specific
security selections.
Net assets of the Portfolio totalled $18.9 million as of June 30, 1995. The
Portfolio's investments consisted of 94.5% international/government agency
obligations and 5.5% cash and cash equivalents.
In September, shareholders will be asked to review several changes to the
Government Portfolio. These include a new sub-advisory agreement, a change in
investment objective, a change in fundamental investment limitations and a
change in name. If all proposals are approved, the name of the Portfolio will be
changed to "Strategic Fixed Income Portfolio," the current requirement that the
Portfolio invest at least 65% of its total assets in U.S. government securities
will be eliminated and a number of investment policy changes will be
implemented.
ASSET ALLOCATION PORTFOLIO
As of June 30, 1995, the Portfolio's asset allocation was 59.5% U.S.
government obligations and 40.5% common stocks, cash and cash equivalents.
During the six month period, Portfolio performance was enhanced by the rally in
both the stock and bond markets.
Performance during the six months ended June 30, 1995 was affected by the
decline in interest rates and the resulting bond market rally. The bond portion
of the Portfolio was positioned in intermediate U.S. Treasury bonds, selected
because they offered maximum yields on a relative return basis with decreased
volatility.
In the equity portion of the Portfolio, we concentrated on growth companies,
which we felt would come back into investor favor in 1995. We also moved to a
higher weighting in technology, seeking out companies like EMC Corp (2.4% of net
assets on June 30, 1995) and Cisco Systems (2.2%). These are examples of
companies where growth rates are relatively high, but the valuations are modest.
We remain committed to investing in stocks that have a combination of good
growth prospects and attractive valuations, which should outperform cyclical
stocks in a slowing economy.
As of June 30, 1995, net assets of the Portfolio totalled $27.1 million.
The Asset Allocation Portfolio is being restructured as of August 14, 1995
to operate as a "balanced fund." It will invest in a combination of equity
securities, investment grade debt obligations
4
<PAGE>
and money market instruments. To reflect these changes, the name of this
Portfolio will be changed to "Balanced Portfolio" after the substitution for the
current Balanced Portfolio takes place.
DIVIDEND GROWTH PORTFOLIO
The Portfolio performed well during the six months ended June 30, 1995.
While concerns over an impending recession resulted in relative underperformance
in economically sensitive areas during much of the second quarter of 1995,
capital goods and basic materials rebounded recently.
Effective April 3, 1995, Mark A. Tincher, a Managing Director and Chief
Investment Officer of Equity Investments at Mitchell Hutchins Asset Management
Inc., assumed management responsibility for the Portfolio. Mr. Tincher's
management style strives for "value at the right growth." To achieve this, he
relies on traditional valuation measures and earnings-momentum models as well as
his economic outlook. This approach combines both quantitative and fundamental
research. He specifically looks for cheap stocks that should not stay cheap for
long--stocks where he sees signs of change.
Based on the market's focus on the Fed easing and a possible increase in
economic activity, there was some portfolio restructuring during the six months
ended June 30, 1995. Portfolio positions in certain consumer related stocks
(both durables and non-durables) and interest sensitive issues (like utilities)
were reduced. The proceeds were used to overweight positions in the capital
goods area. Going forward, Mr. Tincher believes stocks of cyclical companies
that have done some restructuring in the past five to eight years and/or have
good exposure to sales and earnings growth should continue to reap more of the
benefit of economic growth than defensive stocks.
As of June 30, 1995, the Portfolio's net assets totalled $12.8 million. The
Portfolio's investments consisted of 86.5% equities, 2.4% corporate bonds and
11.1% cash and cash equivalents.
The investment policies of this Portfolio will be changed effective August
14, 1995, to provide the investment manager with more flexibility in selecting
stocks that meet the Portfolio's objectives. The new policy seeks to provide
current income and capital growth. To achieve this, the Portfolio will invest
primarily in dividend-paying equity securities (common and preferred stocks)
believed to have the potential for rapid earnings growth. To better reflect this
change in investment policy, the name of this Portfolio will be changed to
"Growth and Income Portfolio."
AGGRESSIVE GROWTH PORTFOLIO
Shares of larger companies continued to lead the equity benchmarks during
the six months ended June 30, 1995. However, signs of a possible rotation of
market leadership from blue-chip issues to the shares of mid-sized and smaller
companies were evident during the second quarter of 1995, as the slowing economy
drove investors to seek out smaller companies that could provide likely pockets
of future outperformance.
As of June 30, 1995, 20.5% of the Portfolio was positioned in technology
stocks, which logged strong returns during the six-month period, on the strength
of gains by electronic instrument and components manufacturers. Semiconductor
manufacturers in particular continued to enjoy strong share price growth. For
example, the Portfolio benefited from its holding in Micron Technology (3.8% of
net assets), which experienced solid growth on the strength of continued
improvement in earnings. Overall market developments have been encouraging. In
any economic environment, however, Nicholas-Applegate Capital Management, the
Portfolio's sub-advisor, will seek to identify companies that are adapting
positively to the environment around them and, as a result, are growing their
earnings and their share prices.
5
<PAGE>
Net assets of the Portfolio totalled $16.6 million as of June 30, 1995. The
Portfolio was 98.2% invested in common stocks and 1.8% invested in cash and cash
equivalents.
BALANCED PORTFOLIO
During the six months ended June 30, 1995, the Portfolio performance was
enhanced by the rally in both the stock and bond markets. The Portfolio's net
assets consisted of 75.4% common stocks, 20% fixed income and 4.6% cash and cash
equivalents.
The equity portion of the Portfolio outperformed the overall stock market
during the second quarter of 1995, with performance led by technology and
financial services issues. The Portfolio's performance picked up strength as
each month of the second quarter progressed, suggesting that the relative
valuations of Portfolio companies, which are at the low end of their range,
should begin to move higher as their earnings are recognized, cyclical earnings
come into question and the stock market makes a general transition toward
growth. Provident Investment Council ("PIC"), the Portfolio's sub-advisor,
focuses on companies with superior sales and earnings growth, above average
margins and strong balance sheets. The fixed income portion of the portfolio
benefitted from the bond market's significant rally, which drove long-term
interest rates back to levels not seen since the spring of 1994.
As of June 30, 1995, net assets of the Portfolio totalled $15.5 million.
To improve economies of scale and lower expense ratios for you and other
Milestones contract owners who are invested in either the Balanced Portfolio or
the Asset Allocation Portfolio, the Balanced Portfolio will no longer accept any
funds (i.e., new premiums, add-ons and transfers) effective July 21, 1995. This
action is in anticipation of moving all contract values from the Balanced
Portfolio into the Asset Allocation Portfolio, pursuant to a substitution.
Because this action requires approval from the Securities and Exchange
Commission, it may take several months for this to take place. Effective upon
receipt of regulatory approval, the Sub-Advisory Agreement between Mitchell
Hutchins, the investment adviser and administrator of the Balanced Portfolio,
and PIC will terminate. Until such time as the order is received and the
substitution effected, PIC will continue to provide day-to-day portfolio
management services to the Balanced Portfolio. We will notify contract owners
who are invested in the Balanced Portfolio before this substitution takes place.
FIXED INCOME PORTFOLIO
The bond market marched ever higher during the six months ended June 30,
1995, usually outpacing supporting economic fundamentals. Consequently, Wolf,
Webb, Burk and Campbell, Inc. ("WWBC"), the Portfolio's sub-advisor, remained
wary of extending maturities as it perceived the market risk to outweigh the
potential reward. Activity during the period consisted of improving yield in
shorter-term maturities by swapping Treasury bonds for corporate bonds and
increasing the Portfolio's exposure to discount mortgage-backed pass-through
securities.
Net assets of the Portfolio as of June 30, 1995 totalled $9.9 million. The
Portfolio consisted of 25.3% U.S. government and agency obligations, 16.6%
agency mortgage-backed securities, 25.8% high-quality corporate bonds and 32.3%
cash and cash equivalents.
6
<PAGE>
Due to a change in control in the management personnel of WWBC and the
anticipated purchase of WWBC by Consolidated Asset Management, Inc., this
investment firm will no longer be the sub-adviser of the Fixed Income Portfolio.
On July 20, 1995, the Board of Trustees of the PaineWebber Series Trust decided
to remove the sub-adviser. Mitchell Hutchins Asset Management Inc. will provide
all day-to-day investment management for the Fixed Income Portfolio's assets.
Dennis McCauley, Chief Investment Officer, Fixed Income at Mitchell Hutchins,
will be responsible for managing this Portfolio.
Thank you for your continuing support. As always, we welcome any comments or
questions you may have.
Sincerely,
/s/ DENNIS HESS /s/ FRANK P.L. MINARD
DENNIS HESS FRANK P.L. MINARD
Chairman and Chief Executive Officer, Chairman,
PaineWebber Life Insurance Company Mitchell Hutchins Asset
Management Inc.
7
<PAGE>
PaineWebber Life Variable Annuity Account
--------------------------------------------------------------------------------
Statement of Net Assets
June 30, 1995 (unaudited)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
MONEY
MARKET GOVERNMENT
COMBINED DIVISION DIVISION
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS
Investments at net asset value:
PaineWebber Series Trust Money Market Portfolio,
8,666,963 shares at $1.00 per share
(cost--$8,666,963).................................... $ 8,666,963 $ 8,666,963
PaineWebber Series Trust Government Portfolio, 453,526
shares at $11.47 per share (cost--$5,138,722)......... 5,201,941 $ 5,201,941
PaineWebber Series Trust Fixed Income Portfolio,
1,045,584 shares at $9.45 per share
(cost--$9,571,073).................................... 9,880,773
PaineWebber Series Trust Global Income Portfolio,
1,352,561 shares at $11.62 per share
(cost--$15,747,746)................................... 15,716,753
PaineWebber Series Trust Balanced Portfolio, 1,410,431
shares at $10.97 per share (cost--$13,808,805)........ 15,472,432
PaineWebber Series Trust Asset Allocation Portfolio,
744,316 shares at $10.94 per share
(cost--$8,341,949).................................... 8,142,814
PaineWebber Series Trust Dividend Growth Portfolio,
447,275 shares at $10.61 per share
(cost--$4,308,400).................................... 4,745,586
PaineWebber Series Trust Growth Portfolio, 1,055,887
shares at $16.35 per share (cost--$17,560,437)........ 17,263,760
PaineWebber Series Trust Aggressive Growth Portfolio,
1,488,696 shares at $11.11 per share
(cost--$14,773,480)................................... 16,539,410
PaineWebber Series Trust Global Growth Portfolio,
1,542,305 shares at $11.76 per share
(cost--$21,663,324)................................... 18,137,503
------------- ------------- -------------
TOTAL INVESTMENTS (COST--$119,580,899)............. 119,767,935 8,666,963 5,201,941
Accrued investment income............................. 35,787 35,787 --
Payable to PaineWebber Life Insurance Company......... (413 ) -- --
------------- ------------- -------------
TOTAL NET ASSETS................................... $119,803,309 $ 8,702,750 $ 5,201,941
------------- ------------- -------------
------------- ------------- -------------
NET ASSETS REPRESENTED BY:
<CAPTION>
Currently payable annuity contracts:
------------------------------------------------------
<S> <C>
Fixed Income Division................................................................ $ 2,411
Global Income Division............................................................... 4,708
Asset Allocation Division............................................................ 17,562
Growth Division...................................................................... 7,213
Aggressive Growth Division........................................................... 2,608
Global Growth Division............................................................... 14,766
-------------
49,268
</TABLE>
<TABLE><CAPTION>
Contracts in accumulation period:
-------------------------------------------------
UNITS VALUE
-------------- --------------
Contracts sold subject to Early Withdrawal
Charges:
-------------------------------------------------
<S> <C> <C> <C>
Money Market Division............................ 787,006 $10.39 8,176,383
Government Division.............................. 457,298 10.20 4,665,776
Fixed Income Division............................ 944,828 9.51 8,981,290
Global Income Division........................... 1,432,452 10.18 14,584,395
Balanced Division................................ 1,301,647 10.80 14,058,374
Asset Allocation Division........................ 713,586 10.44 7,451,966
Dividend Growth Division......................... 386,169 10.67 4,121,804
Growth Division.................................. 1,721,775 9.72 16,741,977
Aggressive Growth Division....................... 1,394,113 10.85 15,122,400
Global Growth Division........................... 1,765,002 9.57 16,891,215
--------------
110,795,580
</TABLE>
8
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE><CAPTION>
FIXED GLOBAL ASSET DIVIDEND AGGRESSIVE
INCOME INCOME BALANCED ALLOCATION GROWTH GROWTH GROWTH
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$ 9,880,773
$15,716,753
$15,472,432
$ 8,142,814
$ 4,745,586
$17,263,760
$16,539,410
------------ ------------ ------------ ------------ ------------ ------------ ------------
9,880,773 15,716,753 15,472,432 8,142,814 4,745,586 17,263,760 16,539,410
-- -- -- -- -- -- --
-- -- -- -- -- (413) --
------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 9,880,773 $15,716,753 $15,472,432 $ 8,142,814 $ 4,745,586 $17,263,347 $16,539,410
------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
GLOBAL
GROWTH
DIVISION
-------------
$18,137,503
-------------
18,137,503
--
--
-------------
$18,137,503
-------------
-------------
<TABLE><CAPTION>
UNITS VALUE
------------- -------------
Contracts sold not subject to Early Withdrawal
Charges:
---------------------------------------------------
<S> <C> <C> <C>
Money Market Division.............................. 50,841 10.35 526,367
Government Division................................ 52,620 10.19 536,165
Fixed Income Division.............................. 94,639 9.48 897,072
Global Income Division............................. 112,774 10.00 1,127,650
Balanced Division.................................. 131,281 10.77 1,414,058
Asset Allocation Division.......................... 64,350 10.46 673,286
Dividend Growth Division........................... 57,004 10.94 623,782
Growth Division.................................... 53,419 9.62 514,157
Aggressive Growth Division......................... 130,764 10.82 1,414,402
Global Growth Division............................. 141,039 8.73 1,231,522
-------------
8,958,461
-------------
$ 119,803,309
-------------
-------------
</TABLE>
See accompanying notes.
9
<PAGE>
PaineWebber Life Variable Annuity Account
--------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended June 30, 1995 (unaudited)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
MONEY
MARKET GOVERNMENT
COMBINED DIVISION DIVISION
---------------- ---------------- ----------------
INVESTMENT INCOME (LOSS)
<S> <C> <C> <C>
Income:
Dividends............................... $ 209,389 $209,389 $--
Capital gains distributions............. -- -- --
Expenses (Note 2):
Administrative charges.................. (151,534) (33,526) (3,343)
Mortality, distribution and expense risk
and enhanced death benefit fees....... (908,861) (64,039) (38,017)
---------------- -------- --------
NET INVESTMENT INCOME (LOSS)........ (851,006) 111,824 (41,360)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 4)
Net realized gain (loss) on
investments........................... (676,483) -- (14,806)
Net unrealized appreciation
(depreciation) of investments......... 9,607,369 -- 500,284
---------------- -------- --------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS........................ $8,079,880 $111,824 $444,118
---------------- -------- --------
---------------- -------- --------
</TABLE>
See accompanying notes.
10
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE><CAPTION>
FIXED GLOBAL ASSET DIVIDEND AGGRESSIVE GLOBAL
INCOME INCOME BALANCED ALLOCATION GROWTH GROWTH GROWTH GROWTH
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
-------- --------- ---------- ---------- -------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
-- -- -- -- -- -- -- --
(8,063) (20,309) (17,050) (6,238) (5,875) (14,311) (25,558) (17,261)
(77,002) (127,769) (113,774) (57,456) (32,989) (127,508) (120,630) (149,677)
-------- --------- ---------- ---------- -------- ---------- ---------- -----------
(85,065) (148,078) (130,824) (63,694) (38,864) (141,819) (146,188) (166,938)
26,025 (85,441) 114,652 (37,695) 7,962 (70,894) 40,630 (656,916)
754,697 1,127,380 2,049,647 1,040,642 590,739 1,938,676 2,131,489 (526,185)
-------- --------- ---------- ---------- -------- ---------- ---------- -----------
$695,657 $ 893,861 $2,033,475 $ 939,253 $559,837 $1,725,963 $2,025,931 $(1,350,039)
-------- --------- ---------- ---------- -------- ---------- ---------- -----------
-------- --------- ---------- ---------- -------- ---------- ---------- -----------
</TABLE>
11
<PAGE>
PaineWebber Life Variable Annuity Account
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
Year ended December 31, 1994 and Six Months Ended June 30, 1995 (unaudited)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
MONEY
MARKET GOVERNMENT
COMBINED DIVISION DIVISION
------------- ------------- -------------
<S> <C> <C> <C>
NET ASSETS AT JANUARY 1, 1994........................ $ 19,471,410 $ 1,215,765 $ 324,549
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)........................ 2,931,758 76,794 286,077
Net realized loss on investments.................... (355,956 ) -- (24,543)
Net unrealized depreciation of investments.......... (9,008,878 ) -- (416,230)
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. (6,433,076 ) 76,794 (154,696)
Changes from principal transactions:
Purchase payments.................................. 98,757,595 16,778,326 3,384,732
Contract distributions and terminations............. (5,110,803 ) (1,438,329) (168,128)
Transfer payments (to) from other divisions......... -- (8,617,840) 521,553
Annuity payments.................................... (2,543 ) -- --
Actuarial adjustment in reserves for currently
payable annuity contracts......................... 29,037 -- --
------------- ------------- -------------
INCREASE IN NET ASSETS DERIVED FROM PRINCIPAL
TRANSACTIONS.................................... 93,673,286 6,722,157 3,738,157
------------- ------------- -------------
TOTAL INCREASE.................................. 87,240,210 6,798,951 3,583,461
------------- ------------- -------------
NET ASSETS AT DECEMBER 31, 1994................. 106,711,620 8,014,716 3,908,010
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)........................ (851,006 ) 111,824 (41,360)
Net realized gain (loss) on investments............. (676,483 ) -- (14,806)
Net unrealized appreciation (depreciation) of
investments....................................... 9,607,369 -- 500,284
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. 8,079,880 111,824 444,118
Changes from principal transactions:
Purchase payments................................... 10,209,448 2,414,963 353,409
Contract distributions and terminations............. (5,215,285 ) (844,560) (154,363)
Transfer payments (to) from other divisions......... (187 ) (994,193) 650,767
Annuity payments.................................... (3,811 ) -- --
Actuarial adjustment in reserves for currently
payable annuity contracts......................... 21,644 -- --
------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS DERIVED FROM
PRINCIPAL TRANSACTION........................... 5,011,809 576,210 849,813
------------- ------------- -------------
TOTAL INCREASE (DECREASE)....................... 13,091,689 688,034 1,293,931
------------- ------------- -------------
NET ASSETS AT JUNE 30, 1995..................... $119,803,309 $ 8,702,750 $ 5,201,941
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
See accompanying notes.
12
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE><CAPTION>
FIXED GLOBAL ASSET DIVIDEND AGGRESSIVE GLOBAL
INCOME INCOME BALANCED ALLOCATION GROWTH GROWTH GROWTH GROWTH
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,482,547 $ 3,625,846 $ 2,264,479 $ 799,007 $ 683,426 $ 1,811,876 $ 2,816,406 $ 4,447,509
143,204 70,954 (26,803) 677,601 (1,005) 957,740 (145,769) 892,965
(26,731) (146,507) (12,254) (22,616) (4,897) (45,093) (19,887) (53,428)
(443,886) (870,107) (381,258) (1,163,839) (145,968) (2,207,272) (369,861) (3,010,457)
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
(327,413) (945,660) (420,315) (508,854) (151,870) (1,294,625) (535,517) (2,170,920)
6,411,815 14,370,056 9,126,818 5,837,235 2,692,033 12,316,174 10,684,571 17,155,835
(357,801) (745,020) (532,742) (294,074) (85,135) (519,241) (469,774) (500,559)
644,514 (132,456) 1,721,363 701,539 202,347 1,782,719 1,116,820 2,059,441
-- (460) -- (224) -- (452) -- (1,407)
-- 5,047 -- 2,747 -- 5,291 -- 15,952
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
6,698,528 13,497,167 10,315,439 6,247,223 2,809,245 13,584,491 11,331,617 18,729,262
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
6,371,115 12,551,507 9,895,124 5,738,369 2,657,375 12,289,866 10,796,100 16,558,342
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
7,853,662 16,177,353 12,159,603 6,537,376 3,340,801 14,101,742 13,612,506 21,005,851
(85,065) (148,078) (130,824) (63,694) (38,864) (141,819) (146,188) (166,938)
26,025 (85,441) 114,652 (37,695) 7,962 (70,894) 40,630 (656,916)
754,697 1,127,380 2,049,647 1,040,642 590,739 1,938,676 2,131,489 (526,185)
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
695,657 893,861 2,033,475 939,253 559,837 1,725,963 2,025,931 (1,350,039)
1,479,641 432,718 1,081,267 343,032 329,200 1,415,201 1,272,640 1,087,377
(354,867) (658,948) (1,277,018) (148,145) (147,661) (366,607) (834,537) (428,579)
204,653 (1,127,815) 1,475,105 459,578 663,409 385,690 460,843 (2,178,224)
(226) (299) -- (1,506) -- (523) (225) (1,032)
2,253 (117) -- 13,226 -- 1,881 2,252 2,149
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
1,331,454 (1,354,461) 1,279,354 666,185 844,948 1,435,642 900,973 (1,518,309)
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
2,027,111 (460,600) 3,312,829 1,605,438 1,404,785 3,161,605 2,926,904 (2,868,348)
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 9,880,773 $15,716,753 $15,472,432 $ 8,142,814 $ 4,745,586 $17,263,347 $16,539,410 $18,137,503
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
13
<PAGE>
PaineWebber Life Variable Annuity Account
--------------------------------------------------------------------------------
Notes to Financial Statements
June 30, 1995
--------------------------------------------------------------------------------
1. INVESTMENT AND ACCOUNTING POLICIES
PaineWebber Life Variable Annuity Account was organized by PaineWebber Life
Insurance Company (the Company) in accordance with the provisions of California
Insurance laws and is a part of the total operations of the Company. The assets
and liabilities of the PaineWebber Life Variable Annuity Account are clearly
identified and distinguished from the other assets and liabilities of the
Company. The PaineWebber Life Variable Annuity Account invests solely in
specified portfolios of PaineWebber Series Trust, an open-end management
investment company under the Investment Company Act of 1940, as directed by
eligible contract owners. All series of shares are diversified except Global
Income Portfolio. Investments are stated at the closing net asset values per
share on June 30, 1995.
The average cost method is used to determine realized gains and losses.
Dividends are taken into income on an accrual basis as of the ex-dividend date.
Currently payable annuity contract reserves are computed according to the
Individual Annuity Valuation 1983 Table using an assumed interest rate of 4.0%.
If the amount paid to the contractholder is less than originally estimated,
charges paid for mortality and expense risks are reimbursed to the Company. If
additional amounts are required, the Company reimburses the PaineWebber Life
Variable Annuity Account.
2. EXPENSES
The Company is compensated for mortality, distribution and expense risks and
enhanced death benefits by a charge equivalent to an annual rate of 1.60% of the
asset value of each contract sold subject to early withdrawal charges and 1.77%
of the asset value of each contract sold not subject to early withdrawal
charges. These charges amounted to $908,861 for the six months ended June 30,
1995.
An annual contract administration charge of $30 is deducted on the first
valuation date on or after each contract anniversery prior to the annuity date.
A transfer charge of $10 will be imposed on each transfer between divisions
(portfolios) of the account in excess of twelve in any one calendar year.
However, the Company has waived this charge until further notice. A withdrawal
transaction charge of the lesser of $25 or 2% of the amount withdrawn will be
imposed on each withdrawal in excess of two per policy year. Total
administrative charges for the six months ended June 30, 1995, were $151,534.
3. FEDERAL INCOME TAXES
Operations of the PaineWebber Life Variable Annuity Account forms a part of the
operations of the Company which is taxed as a life insurance company under the
Internal Revenue Code. Under current law, no federal income taxes are payable
with respect to operations of the PaineWebber Life Variable Annuity Account.
14
<PAGE>
PaineWebber Life Variable Annuity Account
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
June 30, 1995
--------------------------------------------------------------------------------
4. PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments were as
follows:
<TABLE><CAPTION>
FOR THE SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
-------------------------------------- --------------------------------------
PURCHASES SALES PURCHASES SALES
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Portfolio:
Money Market.... $ 4,998,851 $ 4,312,728 $ 15,899,666 $ 9,133,295
Government...... 1,517,513 379,348 4,371,432 656,851
Fixed Income.... 2,856,516 1,390,659 7,338,995 714,448
Global Income... 917,133 2,143,938 15,823,091 2,218,561
Balanced........ 3,380,801 2,122,275 10,680,140 498,837
Asset
Allocation.... 1,664,911 317,028 6,638,099 373,793
Dividend
Growth........ 1,097,949 255,855 3,010,575 227,758
Growth.......... 3,301,733 1,019,044 14,746,301 1,134,296
Aggressive
Growth........ 1,888,125 1,116,956 12,046,789 873,741
Global Growth... 2,388,589 2,910,097 19,479,978 875,645
----------------- ----------------- ----------------- -----------------
$ 24,012,121 $15,967,928 $ 110,035,066 $16,707,225
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
</TABLE>
5. SUMMARY OF CHANGES FROM UNIT TRANSACTIONS
Transactions in units were as follows:
<TABLE><CAPTION>
FOR THE SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
-------------------------------------- --------------------------------------
PURCHASED REDEEMED PURCHASED REDEEMED
----------------- ----------------- ----------------- -----------------
CONTRACTS SOLD
SUBJECT TO EARLY
WITHDRAWAL CHARGE
<S> <C> <C> <C> <C>
Division:
Money Market.... 831,434 773,917 1,972,868 1,345,459
Government...... 143,773 52,043 401,999 58,883
Fixed Income.... 847,039 691,031 837,699 188,712
Global Income... 88,530 223,263 1,578,700 323,231
Balanced........ 416,592 206,693 988,190 85,212
Asset
Allocation.... 100,940 33,735 629,776 48,389
Dividend
Growth........ 107,896 29,900 273,190 26,410
Growth.......... 1,010,926 850,580 1,650,367 246,582
Aggressive
Growth........ 263,722 161,975 1,159,849 108,333
Global Growth... 196,597 334,655 1,740,093 153,753
--------- --------- ---------- ---------
4,007,449 3,357,792 11,232,731 2,584,964
--------- --------- ---------- ---------
--------- --------- ---------- ---------
</TABLE>
15
<PAGE>
PaineWebber Life Variable Annuity Account
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
June 30, 1995
--------------------------------------------------------------------------------
<TABLE><CAPTION>
FOR THE SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
-------------------------------------- --------------------------------------
PURCHASED REDEEMED PURCHASED REDEEMED
----------------- ----------------- ----------------- -----------------
CONTRACTS SOLD
NOT SUBJECT TO
EARLY WITHDRAWAL
CHARGE
<S> <C> <C> <C> <C>
Division:
Money Market.... 30,837 36,429 209,584 172,458
Government...... 1,504 4,927 56,564 10,680
Fixed Income.... 52,513 58,565 136,677 50,540
Global Income... 22,511 27,662 101,415 23,688
Balanced........ 8,900 80,212 186,832 24,775
Asset
Allocation.... 7,246 8,435 57,878 4,844
Dividend
Growth........ 10,216 3,423 50,832 7,003
Growth.......... 47,313 49,522 61,681 29,156
Aggressive
Growth........ 11,326 21,798 126,078 27,412
Global Growth... 3,613 33,688 133,084 28,628
-------- -------- -------- --------
195,979 324,661 1,120,625 379,184
-------- -------- -------- --------
-------- -------- -------- --------
</TABLE>
6. NET ASSETS
Net assets at June 30, 1995, consisted of the following:
<TABLE><CAPTION>
MONEY FIXED GLOBAL
MARKET GOVERNMENT INCOME INCOME BALANCED
COMBINED DIVISION DIVISION DIVISION DIVISION DIVISION
------------ ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Unit transactions.................... $117,310,658 $8,624,939 $4,893,000 $9,514,684 $15,557,351 $13,956,946
Accumulated net investment income.... 2,305,615 77,811 245,722 56,389 190,395 (148,141)
Net unrealized appreciation
(depreciation) of investments...... 187,036 -- 63,219 309,700 (30,993) 1,663,627
------------ ---------- ---------- ---------- ----------- -----------
$119,803,309 $8,702,750 $5,201,941 $9,880,773 $15,716,753 $15,472,432
------------ ---------- ---------- ---------- ----------- -----------
------------ ---------- ---------- ---------- ----------- -----------
</TABLE>
<TABLE><CAPTION>
ASSET DIVIDEND AGGRESSIVE GLOBAL
ALLOCATION GROWTH GROWTH GROWTH GROWTH
DIVISION DIVISION DIVISION DIVISION DIVISION
---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Unit transactions.................... $7,687,593 $4,337,439 $16,735,108 $15,054,996 $20,948,602
Accumulated net investment income.... 654,356 (29,039) 824,916 (281,516) 714,722
Net unrealized appreciation
(depreciation) of investments...... (199,135) 437,186 (296,677) 1,765,930 (3,525,821)
---------- ---------- ----------- ----------- -----------
$8,142,814 $4,745,586 $17,263,347 $16,539,410 $18,137,503
---------- ---------- ----------- ----------- -----------
---------- ---------- ----------- ----------- -----------
</TABLE>
16
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Portfolio of Investments
June 30, 1995 (unaudited)
--------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- -----------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--5.18%
$ 500 Federal Home Loan Bank................... 09/14/95 6.870% $ 492,844
450 Federal Home Loan Mortgage Discount
Notes.................................... 07/05/95 5.880 449,706
500 Federal National Mortgage Association.... 08/14/95 6.210 496,205
-----------
Total U.S. Government and Agency Obligations
1,438,755
(cost--$1,438,755)..................................
-----------
BANKERS ACCEPTANCE (YANKEE)--3.54%
1,000 Dai Ichi Kangyo Bank N.Y., Ltd.
(cost--$983,283)....................... 10/11/95 5.900 983,283
-----------
BANK NOTE (DOMESTIC)--1.80%
500 NationsBank, Texas (cost--$500,108)...... 01/26/96 7.300 500,108
-----------
COMMERCIAL PAPER--90.03%
AEROSPACE/DEFENSE--2.69%
750 Rockwell International Corp. ............ 07/14/95 5.950 748,388
-----------
ASSET-BACKED--6.44%
996 Delaware Funding Corp. .................. 07/21/95 5.950 992,707
800 Eiger Capital Corp. ..................... 07/13/95 5.970 798,408
-----------
1,791,115
-----------
AUTO-TRUCK--7.14%
1,000 Daimler-Benz North America Corp. ........ 07/21/95 5.900 996,722
1,000 Toyota Motor Credit Co. ................. 07/05/95 to 11/13/95 5.940 to 6.300 987,858
-----------
1,984,580
-----------
BROKER-DEALER--3.05%
850 Goldman Sachs Group, LP.................. 07/18/95 5.900 847,632
-----------
BUSINESS SERVICES--3.58%
500 PHH Corp. ............................... 08/08/95 5.980 496,844
500 Pitney Bowes Credit Corp. ............... 07/21/95 5.940 498,350
-----------
995,194
-----------
CHEMICALS--1.80%
500 E I Dupont De Nemours & Co. ............. 07/07/95 5.930 499,506
-----------
CONGLOMERATE--2.81%
786 BTR Dunlop Finance, Inc. ................ 08/21/95 6.160 779,141
-----------
CONSUMER PRODUCTS--5.75%
800 Procter & Gamble Co. .................... 07/12/95 5.850 798,570
800 Unilever Capital Corp. .................. 07/06/95 5.920 799,342
-----------
1,597,912
-----------
DRUGS & HEALTH CARE--11.49%
1,000 Abbott Laboratories...................... 07/13/95 5.930 998,023
800 Eli Lilly & Co. ......................... 07/19/95 5.930 797,628
1,000 Smithkline Beecham Corp. ................ 07/14/95 5.850 997,887
400 Warner-Lambert Co. ...................... 07/14/95 5.950 399,141
-----------
3,192,679
-----------
</TABLE>
17
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO--(CONCLUDED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- -----------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER--(CONCLUDED)
ELECTRONICS--8.37%
$ 700 Emerson Electric Co...................... 07/28/95 6.000% $ 696,850
467 Motorola Credit Corp. ................... 07/18/95 5.950 465,688
250 Motorola, Inc. .......................... 07/12/95 5.920 249,548
916 Siemens Corp. ........................... 07/03/95 6.200 915,684
-----------
2,327,770
-----------
ENERGY--1.80%
500 Exxon Asset Management................... 07/14/95 5.850 498,944
-----------
FINANCE-DIVERSIFIED--5.61%
762 Associates Corp. of North America........ 07/24/95 5.960 759,098
800 Barclays US Funding...................... 07/03/95 5.980 799,734
-----------
1,558,832
-----------
FINANCE-INDEPENDENT--1.16%
325 American Express Co. .................... 07/26/95 5.970 323,653
-----------
FINANCE-SUBSIDIARY--4.66%
800 Creditanstalt Finance, Inc. ............. 07/24/95 5.950 796,959
500 Deutsche Bank Financial, Inc. ........... 07/06/95 5.850 499,594
-----------
1,296,553
-----------
FOOD & BEVERAGE--10.89%
1,000 Coca Cola Company........................ 07/27/95 5.940 995,710
1,000 Nestle Capital Corp. .................... 10/23/95 5.720 981,887
500 Pepsico, Inc. ........................... 07/14/95 5.930 498,929
555 Philip Morris Capital Corp. ............. 08/07/95 5.900 551,635
-----------
3,028,161
-----------
INSURANCE--1.79%
500 St Paul Cos., Inc. ...................... 07/14/95 5.850 498,944
-----------
OIL EQUIPMENT & SERVICES--3.22%
900 Colonial Pipeline Co. ................... 08/04/95 5.950 894,942
-----------
RETAIL-MERCHANDISE--4.91%
500 Melville Corp. .......................... 12/07/95 6.190 486,330
878 Toys 'R' Us, Inc. ....................... 07/07/95 5.920 877,134
-----------
1,363,464
-----------
TELECOMMUNICATIONS--2.87%
800 Bellsouth Telecommunications, Inc........ 07/13/95 5.900 798,427
-----------
Total Commercial Paper (cost--$25,025,837)........... 25,025,837
-----------
Total Investments (cost--$27,947,983)--100.55%....... 27,947,983
Liabilities in excess of other assets--(0.55)%....... (151,606)
-----------
Net Assets (applicable to 27,811,532 shares of
beneficial interest equivalent to $1.00 per
share)--100.00%..................................... $27,796,377
-----------
-----------
</TABLE>
Weighted Average Maturity--35 Days
See accompanying notes to financial statements
18
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS--86.64%
APPAREL, TEXTILES--1.74%
20,000 Cyrk, Inc.*............................................................ $ 177,500
45,000 Norwood Promotional Products, Inc.*.................................... 607,500
----------
785,000
----------
BANKS--2.58%
21,400 Marshall and Ilsley Corporation*....................................... 484,175
30,000 Synovus Financial Corp................................................. 682,500
----------
1,166,675
----------
BEVERAGES--1.69%
12,000 The Coca-Cola Company.................................................. 765,000
----------
BROADCASTING--0.87%
15,000 British Sky Broadcasting Group, plc, ADR*.............................. 391,875
----------
BUSINESS MACHINES--2.56%
7,500 Cisco Systems, Inc.*................................................... 379,219
24,000 EMC Corp.*............................................................. 582,000
5,000 Seagate Technology*.................................................... 196,250
----------
1,157,469
----------
CHEMICALS--1.61%
11,500 Sealed Air Corporation*................................................ 506,000
10,000 The Scotts Company, Class A*........................................... 218,750
----------
724,750
----------
CONSUMER DURABLES--1.62%
15,000 Sunbeam-Oster Company, Inc............................................. 208,125
50,000 The Forschner Group, Inc.*............................................. 525,000
----------
733,125
----------
DOMESTIC PETROLEUM--1.03%
43,293 Garnet Resources Corporation*.......................................... 97,409
25,000 Louis Dreyfus Natural Gas Corp.*....................................... 368,750
----------
466,159
----------
DRUGS, MEDICINE--10.36%
7,564 Advanced Therapeutic Systems (1)*...................................... 276,086
13,000 Columbia Labs, Inc.*................................................... 96,687
12,000 Elan Corporation, plc, ADR*............................................ 489,000
15,000 Forest Laboratories, Inc.*............................................. 665,625
40,000 North American Vaccine, Inc.*.......................................... 397,500
21,500 R.P. Scherer Corporation*.............................................. 908,375
</TABLE>
19
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- ----------
<C> <S> <C>
DRUGS, MEDICINE--(CONCLUDED)
18,000 Teva Pharmaceutical Industries Ltd., ADR............................... $ 675,000
30,000 Watson Pharmaceuticals, Inc.*.......................................... 1,170,000
----------
4,678,273
----------
ELECTRONICS--5.00%
30,000 Lattice Semiconductor Corporation*..................................... 1,031,250
4,000 Micron Technology, Inc................................................. 219,500
15,000 Motorola, Inc.......................................................... 1,006,875
----------
2,257,625
----------
FOREST PRODUCTS--0.44%
25,000 Universal Forest Products, Inc. ....................................... 200,000
----------
HEALTH (NON-DRUG)--4.47%
8,000 Easco, Inc. ........................................................... 98,000
25,000 Humana, Inc. .......................................................... 440,625
12,000 Phycor, Inc.*.......................................................... 421,500
18,000 Sunrise Medical, Inc.*................................................. 560,250
37,500 VISX, Incorporated*.................................................... 496,875
----------
2,017,250
----------
HOTELS, RESTAURANTS--3.53%
16,000 Hospitality Franchise Systems, Inc.*................................... 554,000
25,000 Mirage Resorts Incorporated*........................................... 765,625
20,000 Rio Hotel & Casino, Inc.*.............................................. 275,000
----------
1,594,625
----------
HOUSEHOLD & CONSUMER PRODUCTS--0.16%
12,280 Belding Hemingway, Inc.*............................................... 70,610
----------
IRON AND STEEL--1.13%
40,000 Northwestern Steel and Wire Company*................................... 325,000
20,000 Olympic Steel, Inc.*................................................... 185,000
----------
510,000
----------
LEISURE, LUXURY--1.42%
15,000 Anthony Industries, Inc................................................ 275,625
20,000 Syratech Corporation*.................................................. 367,500
----------
643,125
----------
MEDIA--7.96%
15,000 Comcast Corp., Class A................................................. 272,813
31,500 Comcast Corp., Class A Special......................................... 584,719
60,000 Savoy Pictures Entertainment, Inc.*.................................... 547,500
60,000 TDX Corporation (2)*................................................... 30,000
20,000 Tele-Communications, Inc., Class A*.................................... 468,750
</TABLE>
20
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- ----------
<C> <S> <C>
MEDIA--(CONCLUDED)
20,000 Time Warner, Inc.*..................................................... $ 822,500
18,700 Viacom, Inc., Class B*................................................. 867,212
----------
3,593,494
----------
MISCELLANEOUS FINANCE--1.37%
9,000 Federal Home Loan Mortgage Corporation................................. 618,750
----------
MISCELLANEOUS MINING, METALS--4.31%
30,000 Belden, Inc.*.......................................................... 810,000
25,000 Madeco, S.A., ADR...................................................... 718,750
7,500 Potash Corporation of Saskatchewan, Inc. .............................. 419,063
----------
1,947,813
----------
MORTGAGE FINANCING--3.50%
39,375 Countrywide Credit Industries, Inc..................................... 826,875
8,000 Federal National Mortgage Association.................................. 755,000
----------
1,581,875
----------
OTHER INSURANCE--1.13%
27,500 PennCorp Financial Group, Inc. ........................................ 508,750
----------
PHOTO, OPTICAL--0.95%
70,000 Noel Group, Inc.*...................................................... 428,750
----------
PRODUCER'S GOODS--2.71%
10,000 Camco International, Inc............................................... 233,750
16,000 Duracell International, Inc............................................ 692,000
20,000 Microcom, Inc.......................................................... 300,000
----------
1,225,750
----------
RAILROAD, TRANSIT--1.32%
25,000 Railtex, Inc.*......................................................... 593,750
----------
RETAIL (ALL OTHER)--6.85%
5,000 Borders Group, Inc..................................................... 71,875
38,500 Rawlings Sporting Goods Company, Inc.*................................. 322,438
36,000 Staples, Inc.*......................................................... 1,039,500
12,000 The Home Depot, Inc.................................................... 487,500
15,000 Toys 'R' Us, Inc.*..................................................... 438,750
20,000 Viking Office Products, Inc.*.......................................... 732,500
----------
3,092,563
----------
RETAIL (FOOD)--1.56%
20,000 General Nutrition Companies, Inc.*..................................... 702,500
----------
SERVICES--5.26%
75,000 Excalibur Technologies Corp.*.......................................... 1,200,000
8,000 First Data Corp. ...................................................... 455,000
</TABLE>
21
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GROWTH PORTFOLIO--(CONCLUDED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
SERVICES--(CONCLUDED)
30,000 Pediatric Services of America, Inc.*................................... $ 495,000
800,000 Quality Care Systems, Inc.............................................. 224,000
----------
2,374,000
----------
TELEPHONE & TELECOMMUNICATIONS--9.51%
17,500 AT&T Corp.............................................................. 929,687
20,000 International CableTel Incorporated*................................... 650,000
11,000 MFS Communications Company, Inc.*...................................... 354,750
30,000 Mobile Telecommunications Technologies Corp.*.......................... 821,250
30,000 NYNEX Cabecomms Group, plc, ADR........................................ 607,500
12,500 Rogers Cantel Mobile Communications Inc., Class B*..................... 296,875
10,000 Telefonica de Argentina, S.A., ADR..................................... 247,500
15,000 TeleWest Communications, plc, ADR*..................................... 386,250
----------
4,293,812
----------
Total Common Stocks (cost--$28,680,409)............................................ 39,123,368
----------
PREFERRED STOCK--0.89%
MEDIA--0.89%
20,000 The News Corporation Limited, ADR (cost--$348,452)..................... 400,000
----------
</TABLE>
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
--------- -------------------- --------------
<C> <S> <C> <C> <C>
LONG-TERM DEBT SECURITIES--0.60%
$ 560 IntelCom Group, Inc. (cost--$560,000)............... 09/17/98 8.000% 272,720
-----------
U.S. GOVERNMENT OBLIGATIONS--11.06%
5,000 U.S. Treasury Bills (cost--$4,996,239).............. 07/06/95 5.280 to 5.450 4,996,239
-----------
REPURCHASE AGREEMENT--0.90%
405 Repurchase Agreement dated 06/30/95 with State
Street Bank & Trust Co., collateralized by $411,600
U.S. Treasury Notes, 5.125%, due 11/15/95;
proceeds: $405,186 (cost--$405,000)................ 07/03/95 5.500 405,000
-----------
Total Investments (cost--$34,990,100)--100.09%................. 45,197,327
Liabilities in excess of other assets--(0.09)%................. (40,533)
-----------
Net Assets (applicable to 2,762,678 shares of beneficial
interest equivalent to $16.35 per share)--100.00%....................... $45,156,794
-----------
-----------
</TABLE>
------------
* Non-income producing security.
ADR American Depositary Receipt.
(1) Rights Attached.
(2) Investments in Affiliated Company--See notes to financial statements.
See accompanying notes to financial statements
22
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GLOBAL GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS--88.20%
AUSTRALIA--1.75%
FOOD--1.75%
291,375 Burns Philp & Co., Ltd................................................ $ 608,859
-----------
AUSTRIA--3.13%
BANKING--0.59%
3,526 Creditanstalt Bankverein.............................................. 203,404
-----------
CONSTRUCTION--0.37%
2,449 Flughafen Wein AG..................................................... 130,447
-----------
TECHNOLOGY--1.79%
4,965 VA Technologie AG..................................................... 622,355
-----------
OIL & GAS--0.38%
1,135 OMV AG................................................................ 131,066
-----------
Total Austria Common Stocks........................................................ 1,087,272
-----------
BRAZIL--0.66%
FOOD--0.66%
20,100,000 Ceval Alimentos....................................................... 229,278
-----------
DENMARK--2.32%
SERVICES--0.81%
10,742 International SVS "B"................................................. 280,570
-----------
TELECOMMUNICATIONS--1.51%
9,465 Tele Danmark AS--(Series B)........................................... 525,992
-----------
Total Denmark Common Stocks........................................................ 806,562
-----------
FRANCE--8.58%
AUTOMOTIVE--1.99%
14,194 Valeo SA.............................................................. 690,207
-----------
BANKING--0.92%
6,603 Banque Nationale de Paris............................................. 318,496
-----------
CAPITAL GOODS--0.72%
4,000 Technip SA/Compagnie Francaise........................................ 249,008
-----------
ENERGY--2.34%
13,538 Total SA (Class B).................................................... 814,861
-----------
FOOD--1.95%
1,326 Carrefour SA.......................................................... 679,229
-----------
</TABLE>
23
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GLOBAL GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
FRANCE--(CONCLUDED)
PRODUCERS' GOODS--0.66%
9,042 Coflexip SA, ADR...................................................... $ 229,441
-----------
Total France Common Stocks......................................................... 2,981,242
-----------
GERMANY--3.42%
AUTO--1.92%
1,698 Veba AG............................................................... 667,363
-----------
PHARMACEUTICAL--0.94%
598 Gehe AG............................................................... 274,599
118 Gehe (new) AG......................................................... 52,137
-----------
326,736
-----------
RETAIL--0.56%
500 AVA Allgemeine Handelsgesellschaftder der Verbraucher AG.............. 195,249
-----------
Total German Common Stocks......................................................... 1,189,348
-----------
HONG KONG--4.97%
BROADCAST--1.52%
150,000 Television Broadcasting Ltd. ......................................... 527,282
-----------
CONGLOMERATE--1.09%
78,000 Hutchison Whampoa Ltd. ............................................... 378,014
-----------
INSURANCE--0.51%
277,000 National Mutual Asia Ltd. ............................................ 177,201
-----------
RETAIL--1.08%
505,000 Giordano Holdings Ltd. ............................................... 375,268
-----------
UTILITIES--0.77%
115,200 Consolidated Electric Power Asia...................................... 267,239
-----------
Total Hong Kong Common Stocks...................................................... 1,725,004
-----------
INDONESIA--0.82%
AUTOMOTIVE--0.82%
160,000 Astra International................................................... 283,790
-----------
ITALY--1.59%
TELECOMMUNICATIONS--1.59%
248,905 Stet Di Risp Non-Convertible.......................................... 553,536
-----------
</TABLE>
24
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GLOBAL GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
JAPAN--14.49%
AUTOMOTIVE--2.12%
66,000 Suzuki Motor Corporation, Ltd. ....................................... $ 735,886
-----------
ELECTRONICS--6.60%
32,000 Canon, Inc. .......................................................... 521,031
16,000 Murata Manufacturing Co., Ltd. ....................................... 605,982
5,000 Nintendo Corporation.................................................. 287,299
14,000 Secom Co. ............................................................ 880,420
-----------
2,294,732
-----------
FOOD--1.82%
12,000 Ito-Yokado............................................................ 632,883
-----------
EQUIPMENT--1.64%
11,000 Rohm Co............................................................... 568,462
-----------
TELECOMMUNICATIONS--2.31%
100 DDI Corporation....................................................... 802,312
-----------
Total Japan Common Stocks.......................................................... 5,034,275
-----------
KOREA--1.09%
ELECTRIC UTILITY--1.09%
10,121 Korea Electric Power Corporation...................................... 379,079
-----------
MALAYSIA--1.81%
BANKING--1.03%
30,000 AMMB Holdings Berhad.................................................. 356,850
-----------
TELECOMMUNICATIONS--0.78%
36,000 Telekom Malaysia Berhad............................................... 273,175
-----------
Total Malaysia Common Stocks....................................................... 630,025
-----------
MEXICO--1.48%
MEDIA--0.73%
12,443 Grupo Televisa S.A. de C.V., ADR...................................... 253,526
-----------
TELECOMMUNICATIONS--0.75%
23,905 Grupo Carso S.A. de C.V., ADR*........................................ 259,967
-----------
Total Mexico Common Stocks......................................................... 513,493
-----------
NETHERLANDS--1.40%
FINANCIAL SERVICES--1.40%
8,790 Internationale Nederlanden Groep N.V. ................................ 486,338
-----------
</TABLE>
25
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GLOBAL GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
NORWAY--1.85%
COMMERCIAL SERVICES--1.85%
22,178 Petroleum Geo-Service*................................................ $ 644,179
-----------
SOUTH AFRICA--1.48%
MINING--1.48%
1,944 Randfontein Estates Goldmine.......................................... 12,964
440,000 South African Iron & Steel/Iscor...................................... 499,746
-----------
Total South Africa Common Stocks................................................... 512,710
-----------
SWEDEN--3.53%
APPLIANCES--1.45%
11,044 Electrolux Ab 'B' Free................................................ 502,042
-----------
AUTOMOTIVE MANUFACTURING--0.58%
3,767 Autoliv Ab 'B' Free*.................................................. 201,247
-----------
PHARMACEUTICAL--1.50%
17,373 Astra Ab 'B' Free*.................................................... 522,521
-----------
Total Sweden Common Stocks......................................................... 1,225,810
-----------
SWITZERLAND--7.54%
EQUIPMENT--2.11%
709 BBC Brown Boveri Ltd.................................................. 733,936
-----------
FOOD--2.07%
689 Nestle SA--Registered................................................. 717,422
-----------
INSURANCE--0.65%
293 Swiss Reinsurance--Registered......................................... 225,698
-----------
PHARMACEUTICAL--2.71%
146 Roche Holdings AG..................................................... 940,790
-----------
Total Switzerland Common Stocks.................................................... 2,617,846
-----------
THAILAND--0.87%
BANKING--0.87%
31,700 Thai Farmers Bank Ltd. ............................................... 303,067
-----------
TURKEY--0.05%
BANKING--0.05%
63,250 Akbank................................................................ 16,093
-----------
UNITED KINGDOM--4.07%
DRUGS--0.92%
80,000 Medeva plc............................................................ 318,210
-----------
</TABLE>
26
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GLOBAL GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
UNITED KINGDOM--(CONCLUDED)
BUILDING MATERIALS & PAPER PACKAGING--0.99%
69,778 BPB Industries........................................................ $ 344,718
-----------
ENTERTAINMENT--1.43%
23,976 Thorn EMI plc......................................................... 496,674
-----------
MINING--0.73%
50,000 Antofagasta Holdings.................................................. 252,977
-----------
Total United Kingdom Common Stocks................................................. 1,412,579
-----------
UNITED STATES--21.30%
BANKS--0.75%
3,701 J.P. Morgan & Co. .................................................... 259,533
-----------
CHEMICALS--2.76%
21,508 Allied Signal, Inc. .................................................. 957,106
-----------
DRUGS, MEDICINE--0.46%
2,000 Amgen Inc.*........................................................... 160,875
-----------
ELECTRONICS--2.51%
4,508 Intel Corporation..................................................... 285,413
8,752 Motorola, Inc. ....................................................... 587,478
-----------
872,891
-----------
HEALTH (NON-DRUG)--1.71%
19,078 Sunrise Medical, Inc.* ............................................... 593,803
-----------
INSURANCE--1.10%
8,769 The Travelers......................................................... 383,644
-----------
MORTGAGE FINANCING--2.54%
25,041 Countrywide Credit Industries, Inc.................................... 525,861
4,182 First Financial Management Corporation................................ 357,561
-----------
883,422
-----------
PAPER--0.86%
3,503 International Paper Co................................................ 300,382
-----------
POLLUTION CONTROL--2.17%
48,983 Wheelabrator Technologies, Inc. ...................................... 753,114
-----------
PRODUCERS' GOODS--1.02%
15,000 Giddings & Lewis, Inc. ............................................... 268,125
1,645 Zebra Technologies Corporation (Class A).............................. 87,596
-----------
355,721
-----------
</TABLE>
27
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GLOBAL GROWTH PORTFOLIO--(CONCLUDED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
UNITED STATES--(CONCLUDED)
RETAIL (ALL OTHER)--2.41%
28,569 Toys 'R' Us, Inc.*.................................................... $ 835,643
-----------
SERVICES--1.41%
20,007 Ecolab, Inc........................................................... 490,171
-----------
SOAPS, HARDWARES--1.60%
7,580 Colgate Palmolive..................................................... 554,287
-----------
Total United States Common Stocks.................................................. 7,400,592
-----------
Total Common Stocks (cost--$29,728,523)............................................ 30,640,977
-----------
PREFERRED STOCKS--1.65%
BRAZIL--0.56%
MACHINERY--0.56%
1,050,000 Brasmotor Reg'd....................................................... 193,916
-----------
TELEPHONE COMPANIES--0.00%
3,713 Telebras Reg'd........................................................ 122
-----------
Total Brazil Preferred Stocks...................................................... 194,038
-----------
GERMANY--1.09%
TECHNOLOGY--1.09%
301 SAP AG................................................................ 379,284
-----------
Total Preferred Stocks (cost--$623,510)............................................ 573,322
-----------
</TABLE>
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- -----------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--6.02%
$ 2,094 U.S. Treasury Bills (cost--$2,092,620)..... 07/06/95 to 08/24/95 5.280 to 5.330% 2,092,616
-----------
REPURCHASE AGREEMENT--2.49%
865 Repurchase Agreement dated 06/30/95 with 07/03/95 5.500 865,000
Brown Brothers Harriman & Co.,
collateralized by $898,427 U.S. Treasury
Notes, 7.250% due 08/31/96; proceeds:
$865,396 (cost--$865,000)..................
-----------
Total Investments (cost--$33,309,653)--98.36%.......... 34,171,915
Other assets in excess of liabilities--1.64%........... 570,041
-----------
Net Assets (applicable to 2,956,869 shares of
beneficial interest equivalent to $11.75 per
share)--100.00%........................................ $34,741,956
-----------
-----------
</TABLE>
------------
* Non-income producing security.
ADR American Depositary Receipt.
See accompanying notes to financial statements
28
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GLOBAL INCOME PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
------------- --------------------- ---------------- -----------
<C> <S> <C> <C> <C>
LONG-TERM DEBT SECURITIES--75.87%
AUSTRALIA--7.28%
1,617 New South Wales Treasury Corp.
Exchangeable** ................. 12/01/01 12.000% $ 1,315,401
1,150 New South Wales Treasury Corp.
Exchangeable.................... 07/01/99 11.500 898,101
1,600 Queensland Treasury Corp. Global
Issue........................... 08/15/01 12.000 1,298,103
-----------
3,511,605
-----------
CANADA--4.26%
2,099 Ontario Hydro Global Bonds........ 04/11/07 to 04/11/11 9.390 to 10.551@ 487,985
US$ 1,250 Petro Canada...................... 10/15/01 8.600 1,352,580
1,190 Province of British Columbia
Residual Bonds.................. 01/09/12 9.000 to 9.061@ 211,858
-----------
2,052,423
-----------
DENMARK--2.98%
7,834 Government of Denmark............. 11/15/00 to 05/15/03 8.000 to 9.000 1,439,025
-----------
FINLAND--2.52%
5,000 Government of Finland............. 03/15/04 9.500 1,213,929
-----------
FRANCE--4.88%
11,100 Government of France.............. 04/25/03 to 10/25/19 7.750 to 8.500 2,352,680
-----------
GERMANY--5.91%
4,065 Federal Republic of Germany....... 05/22/00 to 01/04/24 6.250 to 8.750 2,851,183
-----------
IRELAND--2.60%
750 Republic of Ireland............... 07/15/01 9.000 1,253,398
-----------
ITALY--2.05%
1,700,000 Government of Italy............... 12/01/97 9.500 986,804
-----------
NETHERLANDS--4.59%
3,070 Government of the Netherlands..... 10/16/00 to 09/15/01 8.750 to 9.250 2,214,230
-----------
NEW ZEALAND--5.31%
3,180 Government of New Zealand......... 11/15/96 to 07/15/97 9.000 to 10.000 2,168,877
540 International Bank for
Reconstruction and Development
(1).............................. 07/25/97 12.500 389,898
-----------
2,558,775
-----------
SPAIN--7.80%
452,400 Government of Spain............... 08/30/96 to 03/25/00 11.450 to 12.250 3,763,610
-----------
UNITED KINGDOM--5.55%
1,435 United Kingdom Gilt............... 01/27/97 to 07/14/00 13.000 to 15.500 2,677,597
-----------
</TABLE>
29
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GLOBAL INCOME PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
------------- --------------------- ---------------- -----------
<C> <S> <C> <C> <C>
LONG-TERM DEBT SECURITIES--(CONCLUDED)
UNITED STATES--20.14%
1,250 Chase Manhattan Corp.............. 12/01/97 7.500% $ 1,282,085
2,000 Clorox Corporation................ 07/15/01 8.800 2,231,926
1,000 General Motors Acceptance Corp.
MTN............................. 07/15/96 8.625 1,022,614
5,000 U.S. Treasury Notes............... 12/31/96 to 05/15/05 6.500 to 7.750 5,176,999
-----------
9,713,624
-----------
Total Long-Term Debt Securities
(cost--$35,375,816)............................... 36,588,883
-----------
SHORT-TERM DEBT SECURITIES--19.76%
CANADA--1.24%
800 Province of Ontario............... 05/01/96 10.750 599,119
-----------
SWEDEN--2.82%
10,000 Kingdom of Sweden Treasury
Bills............................. 08/16/95 8.920 to 9.040@ 1,358,840
-----------
UNITED KINGDOM--0.47%
136 Government of United Kingdom
Exchequer......................... 05/15/96 13.250 227,608
-----------
UNITED STATES--15.23%
7,400 U.S. Treasury Bills............... 07/06/95 to 03/07/96 5.255 to 6.173@ 7,344,589
-----------
Total Short-Term Debt Securities
(cost--$9,518,539).............................. 9,530,156
-----------
REPURCHASE AGREEMENT--2.39%
1,155 Repurchase Agreement dated
06/30/95 with Brown Brothers
Harriman & Co., collateralized by
$1,134,988 U.S. Treasury Notes,
7.250% due 08/31/96; proceeds:
$1,155,529 (cost--$1,155,000).... 07/03/95 5.500 1,155,000
-----------
Total Investments (cost--$46,049,355)--98.02%..... 47,274,039
Other assets in excess of liabilities--1.98%...... 957,712
-----------
Net Assets (applicable to 4,150,467 shares of
beneficial interest equivalent to $11.62 per
share)--100.00%.................................. $48,231,751
-----------
-----------
</TABLE>
------------
Note: The Portfolio of Investments is listed by the security issuer's country of
origin.
* In local currency unless otherwise indicated.
** Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
@ Yield to maturity for zero coupon bonds.
(1) "Supranational" security denominated in New Zealand Dollars.
MTN Medium term note.
30
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GLOBAL INCOME PORTFOLIO--(CONCLUDED)
--------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE><CAPTION>
UNREALIZED
CONTRACT TO MATURITY APPRECIATION
DELIVER IN EXCHANGE FOR DATES (DEPRECIATION)
------------- --------------- --------------------- --------------
<S> <C> <C> <C> <C>
Australian Dollars................. 2,758,000 US$ 2,014,289 07/19/95 to 11/03/95 $ 60,478
Australian Dollars................. 3,000,000 US$ 2,200,200 10/13/95 76,479
Belgian Francs..................... 56,500,000 US$ 1,846,405 08/21/95 (140,554)
Belgian Francs..................... 22,000,000 US$ 699,701 01/03/96 (78,635)
British Pounds..................... 892,500 US$ 1,395,602 07/10/95 (24,403)
British Pounds..................... 892,500 US$ 1,415,505 09/12/95 (2,993)
Danish Kronas...................... 7,600,000 US$ 1,403,350 07/26/95 (3,611)
Finnish Markkas.................... 3,194,322 US$ 745,745 07/17/95 (2,671)
French Francs...................... 2,524,700 US$ 502,438 07/06/95 (17,866)
French Francs...................... 4,713,200 US$ 967,962 07/27/95 (2,918)
German Deutsche Marks.............. 1,427,000 US$ 1,020,561 07/19/95 (12,058)
German Deutsche Marks.............. 850,000 US$ 603,693 09/11/95 (12,766)
German Deutsche Marks.............. 850,000 US$ 603,607 09/11/95 (12,851)
Greek Drachmas..................... 222,450,500 US$ 957,207 09/20/95 to 09/26/95 (12,602)
New Zealand Dollars................ 1,665,000 US$ 1,112,220 09/11/95 5,351
Spanish Pesetas.................... 702,281,374 US$ 5,416,592 07/10/95 to 09/22/95 (367,206)
U.S. Dollars....................... 492,746 AUD 684,275 07/19/95 (6,398)
U.S. Dollars....................... 517,299 AUD 723,000 10/13/95 (3,427)
U.S. Dollars....................... 673,154 BFR 19,616,500 08/31/95 16,553
U.S. Dollars....................... 1,970,968 ESB 244,839,957 07/10/95 to 09/12/95 51,242
U.S. Dollars....................... 1,171,188 GBP 754,000 07/10/95 28,463
--------------
$ (462,393)
--------------
--------------
</TABLE>
CURRENCY TYPE ABBREVIATIONS:
AUD--Australian Dollars
BFR--Belgian Francs
ESB--Spanish Pesetas
GBP--British Pounds
INVESTMENTS BY TYPE OF ISSUER
PERCENTAGE OF NET
ASSETS
-----------------------
LONG-TERM SHORT-TERM
--------- ----------
Government and other public issuers................... 62.85% 19.76%
Financial institutions................................ 2.12 0.00
Banks................................................. 3.47 0.00
Repurchase agreement.................................. 0.00 2.39
Other................................................. 7.43 0.00
------- -----
75.87% 22.15%
------- -----
------- -----
See accompanying notes to financial statements
31
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- -----------
<C> <S> <C> <C> <C>
INTERNATIONAL GOVERNMENT AND AGENCY OBLIGATIONS--25.80%
AFRICAN DEVELOPMENT BANK--8.43%
$ 1,500 .......................................... 12/15/01 7.750% $ 1,589,880
-----------
ALBERTA PROVINCE OF CANADA--8.90%
1,500 .......................................... 04/01/00 9.250 1,679,325
-----------
EXPORT DEVELOPMENT CORPORATION--8.47%
1,500 .......................................... 08/10/99 8.125 1,597,575
-----------
Total International Government and Agency Obligations
(cost--$4,700,565)................................... 4,866,780
-----------
LONG-TERM U.S. GOVERNMENT AND AGENCY OBLIGATIONS--68.74%
FDIC REMIC TRUST--2.19%
400 .......................................... 09/25/25 7.850 413,250
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES--29.69%
1,448 .......................................... 03/01/24 to 06/01/24 7.000 1,423,148
2,326 .......................................... 03/10/99 to 10/01/24 7.500 2,339,401
500 .......................................... 04/10/02 7.900 511,529
1,302 .......................................... 05/01/25 to 06/01/25 8.000 1,326,120
-----------
5,600,198
-----------
PRIVATE EXPORT FUNDING CORPORATION--5.90%
1,000 .......................................... 07/31/01 8.400 1,111,524
-----------
UNITED STATES TREASURY NOTES--30.96%
5,360 .......................................... 02/15/05 7.500 5,839,050
-----------
Total Long-Term U.S. Government and Agency Obligations
(cost--$12,571,449).................................. 12,964,022
-----------
REPURCHASE AGREEMENT--3.95%
745 Repurchase Agreement dated 06/30/95 with
State Street Bank & Trust Co.,
collateralized by $757,260 U.S. Treasury
Notes, 5.125% due 11/15/95; proceeds:
$745,341 (cost--$745,000)................ 07/03/95 5.500 745,000
-----------
Total Investments (cost--$18,017,014)--98.49%......... 18,575,802
Other assets in excess of liabilities--1.51%.......... 285,070
-----------
Net Assets (applicable to 1,644,357 shares of
beneficial interest equivalent to $11.47 per
share)--100.00%...................................... $18,860,872
-----------
-----------
</TABLE>
See accompanying notes to financial statements
32
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSET ALLOCATION PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--42.01%
BANKS--0.87%
1,300 Wells Fargo & Company................................................. $ 234,325
-----------
BEVERAGES--2.07%
12,300 Pepsico, Inc. ........................................................ 561,187
-----------
BUSINESS MACHINES--8.81%
11,700 Cisco Systems, Inc.*.................................................. 591,581
8,500 Compaq Computer Corporation........................................... 385,688
26,500 EMC Corp.*............................................................ 642,625
5,000 Hewlett-Packard Company............................................... 372,500
10,000 Seagate Technology*................................................... 392,500
-----------
2,384,894
-----------
CHEMICALS--4.51%
10,000 Allied-Signal Incorporated............................................ 445,000
9,700 IMC Global Incorporated............................................... 525,012
11,500 The Scotts Company, Class A*.......................................... 251,563
-----------
1,221,575
-----------
DRUGS, MEDICINE--2.08%
15,000 Teva Pharmaceutical Industries Ltd., ADR.............................. 562,500
-----------
ELECTRONICS--4.81%
9,600 Intel Corporation..................................................... 607,800
5,300 Micron Technology, Inc. .............................................. 290,837
6,000 Motorola, Inc. ....................................................... 402,750
-----------
1,301,387
-----------
HEALTH (NON-DRUG)--1.55%
13,500 Sunrise Medical, Inc.*................................................ 420,188
-----------
MISCELLANEOUS MINING, METALS--3.23%
22,000 Belden, Inc.* ........................................................ 594,000
5,000 Potash Corporation of Saskatchewan, Inc. ............................. 279,375
-----------
873,375
-----------
OIL REFINING, DISTRIBUTION--1.75%
15,000 Repsol SA, ADR........................................................ 474,375
-----------
OTHER INSURANCE--1.84%
7,500 MBIA Incorporated..................................................... 498,750
-----------
PRODUCER'S GOODS--2.12%
24,000 Albany International Corporation, Class A............................. 573,000
-----------
RAILROAD, TRANSIT--1.87%
8,000 Burlington Northern, Inc. ............................................ 507,000
-----------
</TABLE>
33
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSET ALLOCATION PORTFOLIO--(CONCLUDED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
RETAIL (ALL OTHER)--3.57%
36,000 Arbor Drugs Incorporated.............................................. $ 576,000
6,500 Sears Roebuck & Company............................................... 389,187
-----------
965,187
-----------
SERVICES--1.98%
14,500 Ceridian Corporation*................................................. 534,688
-----------
SOAPS, HARDWARES--0.95%
6,000 First Brands Corporation.............................................. 257,250
-----------
11,369,681
Total Common Stocks (cost--$9,270,886)............................................
-----------
</TABLE>
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
--------- -------------------- ---------------
<C> <S> <C> <C> <C>
LONG-TERM U.S. GOVERNMENT OBLIGATIONS--38.47%
$ 2,500 U.S. Treasury Bonds...................... 11/15/24 7.500% 2,768,750
7,500 U.S. Treasury Notes...................... 11/30/96 7.250 7,640,625
-----------
Total Long-Term U.S. Government Obligations
(cost--$10,264,453)............................... 10,409,375
-----------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--21.04%
5,000 U.S. Treasury Bills...................... 07/06/95 5.200 4,996,389
700 U.S. Treasury Bills...................... 07/27/95 5.150 697,397
-----------
Total Short-Term U.S. Government Obligations
(cost--$5,693,785)................................ 5,693,786
-----------
REPURCHASE AGREEMENT--0.76%
205 Repurchase Agreement, dated 06/30/95 with 07/03/95 5.500 205,000
State Street Bank & Trust Co.,
collateralized by $208,374 U.S. Treasury
Notes, 5.125%, due 11/15/95; proceeds:
$205,094 (cost--$205,000)................
-----------
Total Investments (cost--$25,434,124)--102.28%....... 27,677,842
Liabilities in excess of other assets--(2.28)%...... (620,189)
-----------
Net Assets (applicable to 2,473,263 shares of
beneficial interest equivalent to $10.94 per
share)--100.00%............. $27,057,653
-----------
-----------
</TABLE>
------------
* Non-income producing security.
ADR American Depositary Receipt.
See accompanying notes to financial statements
34
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DIVIDEND GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--86.48%
AEROSPACE--0.96%
1,600 McDonnell Douglas Corporation........................................... $ 122,800
-----------
AGRICULTURE, FOOD--5.40%
8,500 Archer Daniels Midland Company.......................................... 158,313
2,100 Campbell Soup Co........................................................ 102,900
5,800 ConAgra, Inc............................................................ 202,275
]3,100 Philip Morris Companies, Inc. .......................................... 230,562
-----------
694,050
-----------
AIR TRANSPORT--2.48%
2,100 AMR Corporation Delaware................................................ 156,713
2,200 Delta Air Lines Incorporated............................................ 162,250
-----------
318,963
-----------
APPAREL, TEXTILES--0.62%
2,800 Sara Lee Corporation (1)................................................ 79,800
-----------
BANKS--4.23%
800 First Empire State Corporation.......................................... 137,200
5,000 Marshall and Ilsley Corporation*........................................ 113,125
1,800 J.P. Morgan & Co........................................................ 126,225
3,100 NationsBank Corp........................................................ 166,237
-----------
542,787
-----------
BEVERAGES--1.07%
3,000 Pepsico, Inc............................................................ 136,875
-----------
BUSINESS MACHINES--6.94%
1,800 Cirrus Logic Incorporated............................................... 112,838
3,700 Cisco Systems, Inc.*.................................................... 187,081
7,700 EMC Corp.*.............................................................. 186,725
2,700 International Business Machines Corporation............................. 259,200
3,000 Sun Microsystems Incorporated........................................... 145,500
-----------
891,344
-----------
CHEMICALS--4.04%
3,000 Ashland Incorporated.................................................... 105,375
1,800 Loctite Corporation..................................................... 81,900
3,600 Lubrizol Corporation.................................................... 127,350
9,000 Methanex Corporation.................................................... 75,375
3,100 RPM, Inc................................................................ 61,612
2,000 Union Carbide Corporation............................................... 66,750
-----------
518,362
-----------
CONSUMER DURABLES--1.01%
2,500 Premark International, Inc. ............................................ 129,688
-----------
COSMETICS--0.84%
1,500 Procter & Gamble Co..................................................... 107,813
-----------
</TABLE>
35
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DIVIDEND GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
DRUGS, MEDICINE--6.34%
5,000 Abbott Laboratories..................................................... $ 202,500
2,500 Allergan Incorporated................................................... 67,813
2,500 Johnson & Johnson....................................................... 169,062
1,900 Eli Lilly & Co. (1)..................................................... 149,150
4,100 Mylan Labs, Inc. ....................................................... 126,075
2,200 Smithkline Beecham Corp. ............................................... 99,550
-----------
814,150
-----------
ELECTRIC UTILITIES--1.71%
2,400 DPL Incorporated........................................................ 53,100
4,000 Duke Power Co........................................................... 166,000
-----------
219,100
-----------
ELECTRONICS--3.81%
4,000 AMP Incorporated (1).................................................... 169,000
2,900 Loral Corporation....................................................... 150,075
2,200 Raytheon Company (1).................................................... 170,775
-----------
489,850
-----------
GAS UTILITIES--0.95%
5,000 Panhandle Eastern Corporation........................................... 121,875
-----------
HEALTH (NON-DRUG)--4.44%
1,200 Beckman Instruments Incorporated, New (1)............................... 33,450
2,100 Becton Dickinson & Company.............................................. 122,325
1,400 Bristol Myers Squibb Company............................................ 95,375
1,900 Medtronic, Inc. ........................................................ 146,537
8,000 Tenet Healthcare Corporation............................................ 115,000
3,400 Ventritex Incorporated.................................................. 57,375
-----------
570,062
-----------
INDUSTRIAL & ELECTRONIC PRODUCTS--0.88%
5,550 Worthington Industries, Inc. ........................................... 113,428
-----------
INTERNATIONAL OIL--3.38%
4,200 Chevron Corporation..................................................... 195,825
1,600 Mobil Corp. (1)......................................................... 153,600
1,300 Texaco, Inc. (1)........................................................ 85,313
-----------
434,738
-----------
LIFE INSURANCE--0.72%
2,800 Equitable of Iowa Companies............................................. 92,050
-----------
MISCELLANEOUS--2.25%
2,200 Apria Healthcare Group Incorporated..................................... 62,150
3,600 Lockheed Martin Corporation............................................. 227,250
-----------
289,400
-----------
MISCELLANEOUS FINANCE--0.96%
3,500 American Express Co..................................................... 122,938
-----------
MISCELLANEOUS MINING, METALS--0.43%
1,000 Potash Corporation of Saskatchewan, Inc. ............................... 55,875
-----------
</TABLE>
36
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DIVIDEND GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
MOTOR VEHICLES--0.55%
3,600 Fleetwood Enterprises, Inc. ............................................ $ 71,100
-----------
OTHER INSURANCE--6.33%
3,500 AFLAC Incorporated...................................................... 153,125
4,000 American Bankers Insurance Group, Inc. ................................. 127,000
1,500 American International Group............................................ 171,000
500 ITT Corporation......................................................... 58,750
2,500 Progressive Corporation................................................. 95,937
4,200 St. Paul Cos., Inc. .................................................... 206,850
-----------
812,662
-----------
PAPER--2.08%
1,700 Champion International Corporation...................................... 88,613
3,600 Scott Paper Company..................................................... 178,200
-----------
266,813
-----------
PRODUCER'S GOODS--10.49%
2,300 American Brands, Inc. (1)............................................... 91,425
1,300 Caterpillar, Inc........................................................ 83,525
6,700 Donaldson, Inc. (1)..................................................... 175,037
1,500 Dover Corporation (1)................................................... 109,125
2,400 DSC Communications Corporation (1)...................................... 111,600
2,400 Emerson Electric Co. (1)................................................ 171,600
3,400 Federal Signal Corporation.............................................. 73,525
900 General Electric Company................................................ 50,738
2,700 Pentair, Inc. (1)....................................................... 117,450
2,000 Textron Incorporated.................................................... 116,250
1,000 United States Robotics Corporation...................................... 109,000
2,500 Varian Associates Incorporated (1)...................................... 138,125
-----------
1,347,400
-----------
PUBLISHING--2.08%
2,800 Gannett Company, Inc. .................................................. 151,900
3,900 Reynolds & Reynolds Co., Class A........................................ 115,050
-----------
266,950
-----------
RAILROAD, TRANSIT--0.87%
2,000 Conrail, Inc. .......................................................... 111,250
-----------
RETAIL (ALL OTHER)--3.48%
4,000 Dollar General Corporation.............................................. 126,500
6,000 Rite Aid Corporation (1)................................................ 153,750
2,796 Sears Roebuck & Company................................................. 167,410
-----------
447,660
-----------
RETAIL (FOOD)--1.63%
4,200 Albertson's, Inc. ...................................................... 124,950
3,000 American Stores Co. (1)................................................. 84,375
-----------
209,325
-----------
</TABLE>
37
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DIVIDEND GROWTH PORTFOLIO--(CONCLUDED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
SERVICES--4.09%
800 BMC Software, Inc. ..................................................... $ 61,800
4,000 Cadence Design Systems, Inc. (1)........................................ 129,500
1,600 Computer Associates International, Inc. ................................ 108,400
4,600 Healthcare Compare Corp. ............................................... 138,000
2,000 Legent Corp. ........................................................... 87,500
-----------
525,200
-----------
TELEPHONE & TELECOMMUNICATIONS--1.42%
5,000 Telephone & Data Systems Incorporated................................... 181,875
-----------
Total Common Stocks (cost--$9,724,132).............................................. 11,106,183
-----------
</TABLE>
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
--------- -------------------- --------------
<C> <S> <C> <C> <C>
CORPORATE BONDS--2.35%
$ 100 Browning Ferris Indiana................... 07/18/05 6.750% 99,000
100 Cooper Industries Incorporated............ 01/01/15 7.050 103,250
100 Developers Diversified Realty
Corporation............................. 08/15/99 7.000 99,750
-----------
302,000
Total Corporate Bonds (cost--$299,044)................
-----------
U.S. GOVERNMENT OBLIGATIONS--7.00%
900 U.S. Treasury Bills (cost--$899,320)...... 07/06/95 5.440 to 5.450 899,319
-----------
REPURCHASE AGREEMENT--3.58%
460 Repurchase Agreement dated 06/30/95 with
State Street Bank & Trust Co.,
collateralized by $467,250 U.S. Treasury
Notes, 5.125%, due 11/15/95; proceeds:
$460,211 (cost--$460,000)............... 07/03/95 5.500 460,000
-----------
Total Investments (cost--$11,382,496)--99.41%......... 12,767,502
Other assets in excess of liabilities--0.59%.......... 77,675
-----------
Net Assets (applicable to 1,210,390 shares of
beneficial interest equivalent to $10.61 per
share)--100.00%....................................... $12,845,177
-----------
-----------
</TABLE>
------------
* Non-income producing security.
(1) Rights Attached.
See accompanying notes to financial statements
38
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
AGGRESSIVE GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--98.24%
APPAREL, TEXTILES--0.76%
1,500 Nike Incorporated..................................................... $ 126,000
-----------
AUTOMOTIVE EQUIPMENT--2.41%
3,500 Breed Technologies Incorporated....................................... 84,000
4,100 Cummins Engine Incorporated........................................... 178,862
3,100 Varity Corporation.................................................... 136,400
-----------
399,262
-----------
BANKS--1.74%
3,700 Bank New York Incorporated............................................ 149,388
3,300 Union Bank San Francisco California................................... 139,425
-----------
288,813
-----------
BEVERAGES--1.65%
12,500 Coca Cola Enterprises Incorporated.................................... 273,438
-----------
BUSINESS MACHINES--9.99%
2,100 3Com Corporation...................................................... 140,700
4,000 Adaptec Incorporated.................................................. 148,000
3,400 Bay Networks Incorporated............................................. 140,675
2,800 Cisco Systems, Inc. .................................................. 141,575
2,800 Dell Computer Corporation............................................. 168,350
3,500 Digital Equipment Corporation......................................... 142,625
5,000 EMC Corp. ............................................................ 121,250
3,400 International Business Machines Corporation........................... 326,400
6,700 Sun Microsystems Incorporated......................................... 324,950
-----------
1,654,525
-----------
CHEMICALS--6.07%
3,300 Cabot Corporation..................................................... 174,075
4,100 Eastman Chemicals Company............................................. 243,950
6,600 Lyondell Petrochemical Company........................................ 169,125
7,100 Union Carbide Corporation............................................. 236,962
6,600 Wellman Incorporated.................................................. 180,675
-----------
1,004,787
-----------
CONSUMER ELECTRICALS--0.75%
800 Matsushita Electric Industrial Ltd., ADR.............................. 124,000
-----------
CONTAINERS--0.69%
2,400 Temple Inland Incorporated............................................ 114,300
-----------
DOMESTIC PETROLEUM--2.20%
2,200 Atlantic Richfield Company............................................ 241,450
3,100 The Louisiana Land and Exploration Company............................ 123,612
-----------
365,062
-----------
</TABLE>
39
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
AGGRESSIVE GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
DRUGS, MEDICINE--3.13%
3,800 Amgen Inc.* .......................................................... $ 305,662
4,500 Bergen Brunswig Corporation........................................... 102,938
3,600 Mylan Labs, Inc. ..................................................... 110,700
-----------
519,300
-----------
ELECTRONICS--10.66%
2,600 Alliance Semiconductor Corporation.................................... 127,400
4,000 Cypress Semiconductor Corporation..................................... 162,000
2,200 Intel Corporation..................................................... 139,288
11,500 Micron Technology, Inc. .............................................. 631,062
3,600 Tencor Instruments.................................................... 147,600
2,300 Teradyne Incorporated................................................. 150,362
5,000 Varian Associates Incorporated........................................ 276,250
1,400 Xilinx Incorporated................................................... 131,600
-----------
1,765,562
-----------
FOREIGN PETROLEUM--1.49%
6,200 Union Texas Petroleum Holdings Incorporated........................... 130,975
2,500 British Gas plc....................................................... 115,000
-----------
245,975
-----------
GAS UTILITIES--0.78%
5,300 Panhandle Eastern Corporation......................................... 129,188
-----------
GROCERY PRODUCTS--2.93%
10,900 Archer Daniels Midland Company........................................ 203,013
6,500 IBP Incorporated...................................................... 282,750
-----------
485,763
-----------
HEALTH--3.28%
2,300 Becton Dickinson & Company............................................ 133,975
4,600 Boston Scientific Corporation......................................... 146,625
1,700 Medtronic, Inc. ...................................................... 131,112
2,800 Oxford Health Plans Incorporated...................................... 132,300
-----------
544,012
-----------
INTEGRATED OIL--1.52%
1,800 Exxon Corporation..................................................... 127,125
1,300 Mobil Corp. (1)....................................................... 124,800
-----------
251,925
-----------
INVESTMENT COMPANIES--1.59%
6,100 Bear Stearns Co. Incorporated......................................... 130,388
6,100 Lehman Brothers Holdings Incorporated................................. 133,437
-----------
263,825
-----------
</TABLE>
40
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
AGGRESSIVE GROWTH PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
MEDIA--3.34%
2,700 Capital Cities/ABC Incorporated....................................... $ 291,600
4,200 Infinity Broadcasting Corporation..................................... 140,175
3,000 King World Productions Incorporated................................... 121,500
-----------
553,275
-----------
MEDICAL/HEALTH--1.27%
7,000 Healthcare Compare Corporation*....................................... 210,000
-----------
METALS--6.93%
8,100 Alcan Aluminum Limited................................................ 245,025
5,200 Aluminum Company America.............................................. 260,650
7,300 Asarco Incorporated................................................... 222,650
3,600 Phelps Dodge Corporation.............................................. 212,400
4,000 Reynolds Metals Company............................................... 207,000
-----------
1,147,725
-----------
MILITARY/DEFENSE TECHNOLOGY--5.96%
3,800 FMC Corporation....................................................... 255,550
5,400 McDonnell Douglas Corporation......................................... 414,450
3,600 Olin Corporation...................................................... 185,400
1,700 Raytheon Company...................................................... 131,963
-----------
987,363
-----------
OIL/GAS PRODUCTION--2.99%
5,000 Occidental Petroleum Corporation...................................... 114,375
9,300 Oryx Energy Company................................................... 127,875
1,700 The Shell Transportation and Trading Company.......................... 123,038
6,000 USX Marathon Group.................................................... 130,350
-----------
495,638
-----------
OTHER INSURANCE--3.02%
2,000 American National Insurance Company................................... 122,000
1,700 Cigna Corporation..................................................... 131,962
4,700 Old Republic International Corporation................................ 122,788
2,500 St. Paul Cos., Inc. .................................................. 123,125
-----------
499,875
-----------
OTHER PRODUCTION/MANUFACTURING--0.79%
3,600 Parker Hannifin Corporation........................................... 130,500
-----------
OTHER TECHNOLOGY--0.78%
3,300 Itel Corporation New.................................................. 128,700
-----------
</TABLE>
41
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
AGGRESSIVE GROWTH PORTFOLIO--(CONCLUDED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
PAPER--11.95%
7,400 Boise Cascade Corporation............................................. $ 299,700
3,600 Bowater Incorporated.................................................. 161,550
1,500 International Paper Company........................................... 128,625
4,900 James River Corporation............................................... 135,362
6,100 Jefferson Smurfit Corporation New..................................... 80,063
6,600 Scott Paper Company................................................... 326,700
14,100 Stone Container Corporation........................................... 299,625
2,400 Union Camp Corporation................................................ 138,900
6,500 Westvaco Corporation.................................................. 287,625
2,200 Willamette Industries Incorporated.................................... 122,100
-----------
1,980,250
-----------
RETAIL (ALL OTHER)--2.62%
3,100 Harcourt General Incorporated......................................... 131,750
8,100 Safeway Incorporated*................................................. 302,737
-----------
434,487
-----------
SERVICES--1.39%
9,000 Manpower Incorporated................................................. 229,500
-----------
SOFTWARE--2.17%
5,300 Computer Associates International Incorporated........................ 359,075
-----------
TELECOMMUNICATIONS EQUIPMENT--0.92%
1,400 United States Robotics Corporation.................................... 152,600
-----------
TELEPHONE & TELECOMMUNICATIONS--0.01%
147 Citizens Utilities Company Delaware................................... 1,746
-----------
TOBACCO PRODUCTS--2.46%
1,100 Loews Corporation..................................................... 133,100
3,700 Philip Morris Companies Incorporated.................................. 275,187
-----------
408,287
-----------
Total Common Stocks (cost--$13,650,346)........................................... 16,274,758
-----------
</TABLE>
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE
--------- -------------------- --------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER--1.56%
$259 Delmarva Power and Light Company
(cost--$258,911).......................... 07/03/95 6.200% 258,911
-----------
Total Investments (cost--$13,909,257)--99.80%......... 16,533,669
Other assets in excess of liabilities--0.20%.......... 33,737
-----------
Net Assets (applicable to 1,490,574 shares of
beneficial interest equivalent to $11.11 per
share)--100.00%..................................... $16,567,406
-----------
-----------
</TABLE>
------------
* Non-income producing security.
ADR American Depositary Receipt.
(1) Rights Attached.
See accompanying notes to financial statements
42
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
BALANCED PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--75.37%
AEROSPACE--1.17%
2,900 Boeing Company........................................................ $ 181,613
-----------
BROADCASTING--0.64%
3,800 British Sky Broadcasting Group, plc, ADR*............................. 99,275
-----------
BUSINESS MACHINES--4.52%
2,300 3Com Corporation...................................................... 154,100
1,875 Cabletron Systems Incorporated........................................ 99,844
2,500 Cisco Systems, Inc. .................................................. 126,406
4,300 Hewlett-Packard Company............................................... 320,350
-----------
700,700
-----------
DRUGS, MEDICINE--2.33%
1,600 Cardinal Health Incorporated.......................................... 75,600
2,400 Pfizer Incorporated................................................... 221,700
1,500 R.P. Scherer Corporation*............................................. 63,375
-----------
360,675
-----------
ELECTRONICS--12.01%
4,900 Analog Devices Incorporated........................................... 166,600
2,400 Andrew Corporation.................................................... 138,900
9,600 Intel Corporation..................................................... 607,800
8,000 Motorola, Inc. ....................................................... 537,000
4,000 Sensormatic Electronics Corporation................................... 142,000
2,000 Texas Instruments Incorporated........................................ 267,750
-----------
1,860,050
-----------
GAS UTILITIES--2.79%
12,300 Enron Corporation..................................................... 432,037
-----------
HEALTH (NON-DRUG)--3.31%
2,700 Medtronic Incorporated................................................ 208,237
1,400 Oxford Health Plans Incorporated...................................... 66,150
1,700 St. Jude Med Incorporated............................................. 85,213
3,700 United HealthCare Corporation*........................................ 153,087
-----------
512,687
-----------
HOTELS, RESTAURANTS--1.44%
1,900 Hospitality Franchise Systems, Inc.*.................................. 65,788
4,000 McDonalds Corporation................................................. 156,500
-----------
222,288
-----------
LEISURE--0.84%
3,700 Circus Circus Enterprises Incorporated................................ 130,425
-----------
MEDIA--4.34%
4,300 Capital Cities/ABC Incorporated....................................... 464,400
5,400 General Instruments Corporation....................................... 207,225
-----------
671,625
-----------
MISCELLANEOUS--4.28%
5,000 Autozone Incorporated................................................. 125,625
8,000 Nokia Corporation..................................................... 477,000
1,400 PMI Group Incorporated................................................ 60,725
-----------
663,350
-----------
</TABLE>
43
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
BALANCED PORTFOLIO--(CONTINUED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
MISCELLANEOUS FINANCE--3.82%
1,500 Federal Home Loan Mortgage Corporation................................ $ 103,125
3,800 First USA Incorporated................................................ 168,625
9,500 MBNA Corporation...................................................... 320,625
-----------
592,375
-----------
MORTGAGE FINANCING--3.91%
3,600 Federal National Mortgage Association................................. 339,750
3,100 First Financial Management Corporation................................ 265,050
-----------
604,800
-----------
OTHER INSURANCE--1.28%
500 American International Group Incorporated............................. 57,000
3,000 MGIC Investment Corporation Wisconsin................................. 140,625
-----------
197,625
-----------
PAPER--0.41%
800 Alco Standard Corporation............................................. 63,900
-----------
POLLUTION CONTROL--1.12%
4,800 Browning Ferris Industries Incorporated............................... 173,400
-----------
PRODUCER'S GOODS--5.67%
2,000 Applied Materials Incorporated*....................................... 173,250
24,400 Ericsson L M Telephone Company, ADR................................... 488,000
2,000 Tyco International Limited............................................ 108,000
1,000 United States Robotics Corporation.................................... 109,000
-----------
878,250
-----------
RETAIL (ALL OTHER)--4.38%
6,500 Office Depot Incorporated............................................. 182,812
5,950 The Home Depot, Inc................................................... 241,719
9,500 Wal Mart Stores, Inc.................................................. 254,125
-----------
678,656
-----------
SERVICES--15.18%
1,850 Automatic Data Processing Incorporated................................ 116,319
3,100 Computer Associates International Incorporated........................ 210,025
2,200 Computer Sciences Corporation......................................... 125,125
7,050 First Data Corporation................................................ 400,969
7,000 Informix Corporation.................................................. 177,625
5,100 Loewen Group Incorporated............................................. 181,687
7,400 Microsoft Corporation................................................. 668,775
12,200 Oracle Systems Corporation............................................ 471,225
-----------
2,351,750
-----------
SOAPS, HARDWARES--1.38%
4,800 Gillette Company...................................................... 214,200
-----------
TELEPHONE & TELECOMMUNICATIONS--0.55%
1,900 ALC Communications Corporation........................................ 85,738
-----------
Total Common Stocks (cost--$9,529,774)............................................ 11,675,419
-----------
</TABLE>
44
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
BALANCED PORTFOLIO--(CONCLUDED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
----- ----------------- ------------ ----------
<S> <C> <C> <C>
Corporate Bonds--5.40%
Auto-Truck--1.65%
$ 150 Ford Credit Auto Lease Trust . . . . . . 10/15/98 6.350% $ 150,327
100 Ford Motor Credit Company . . . . . . . . 03/15/05 7.750 105,209
-------
255,536
-------
Conglomerate---0.77%
100 ITT Corporation . . . . . . . . . . . . . . 02/01/08 8.875 118,937
-------
Finance---0.80%
125 MBNA Corporation . . . . . . . . . . . . . 03/09/00 6.613 124,501
-------
Miscellaneous--0.70%
100 Cone Mills Corporation North Carolina . . . 03/15/05 8.125 107,825
-------
Mortgage Financing--0.80%
125 Fleet Mortgage Group Incorporated . . . . . 06/15/00 6.500 124,376
-------
Transportation--0.68%
100 Penske Truck Leasing Company . . . . . . . 11/01/99 8.250 105,704
-------
Total Corporate Bonds (cost--$811,630) . . . . 836,879
-------
U.S. Government Obligations--14.56%
600 United States Treasury Bonds . . . . . . . 02/15/99 to 08/15/23 6.250 to 8.500 687,609
1,550 United States Treasury Notes . . . . . . 07/31/99 to 02/15/03 5.625 to 7.500 1,568,154
---------
Total U.S. Government Obligations (cost--$2,162,791) 2,255,763
---------
Repurchase Agreement--1.52%
235 Repurchase Agreement dated 06/30/95 with State
Street Bank & Trust Co., collateralized by $235,000
U.S. Treasury Note, 5.125%, due 11/15/95;
proceeds: $235,108; (cost--$235,000) . . 07/03/95 5.500 235,000
-------
Total Investments (cost--$12,739,195)--96.85% . 15,003,061
Other assets in excess of liabilities--3.15% . 487,577
-------
Net Assets (applicable to 1,412,336 shares of beneficial interest
equivalent to $10.97 per share)--100.00% . . . $15,490,638
-----------
-----------
</TABLE>
__________________
* Non-income producing security.
ADR American Depositary Receipt.
See accompanying notes to financial statements
45
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FIXED INCOME PORTFOLIO
--------------------------------------------------------------------------------
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ----------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--25.27%
$ 450 U.S. Treasury Bonds....................... 02/15/23 7.125% $ 475,031
200 U.S. Treasury Lincs....................... 08/15/09 6.000 186,982
850 U.S. Treasury Notes....................... 11/15/96 to 11/15/01 4.750 to 7.500 865,749
975 Federal Home Loan Bank Notes.............. 09/27/96 to 09/09/02 4.400 to 7.050 968,338
----------
Total U.S. Government and Agency Obligations
(cost--$2,450,527).................................... 2,496,100
----------
AGENCY-MORTGAGE BACKED SECURITIES--16.59%
90 Federal National Mortgage Association
Pool.................................... 12/01/08 6.000 86,696
481 Federal National Mortgage Association
Pool.................................... 10/01/23 7.000 473,144
454 Federal National Mortgage Association
Pool.................................... 07/01/09 7.500 460,661
142 Federal National Mortgage Association
Pool.................................... 04/01/09 7.000 142,253
484 Government National Mortgage Association
Pool.................................... 01/15/24 7.000 476,180
----------
Total Agency-Mortgage Backed Securities
(cost--$1,588,268).................................. 1,638,934
----------
CORPORATE BONDS--25.84%
AUTO-TRUCK--1.48%
150 Ford Motor Credit Company................. 01/15/99 5.625 145,821
----------
BANKS--4.65%
200 BankAmerica Corp. ........................ 06/15/04 7.625 208,345
250 Society Bank.............................. 04/25/97 6.500 251,242
----------
459,587
----------
ELECTRIC UTILITIES--3.03%
300 Consolidated Edison Co. .................. 04/01/98 6.250 299,135
----------
FINANCIAL SERVICES--5.66%
350 Associates Corporation of North America... 07/15/97 to 11/01/97 6.750 to 7.750 356,823
200 Cit Group Holdings, Inc. ................. 09/30/97 7.000 202,826
----------
559,649
----------
LIFE INSURANCE--2.11%
200 American General Corporation.............. 10/15/99 7.700 208,530
----------
OTHER INSURANCE--2.52%
100 AON Corp. ................................ 01/15/04 6.300 96,095
150 Lincoln National Corp. ................... 05/15/05 7.250 152,546
----------
248,641
----------
RETAIL (ALL OTHER)--2.37%
250 Wal Mart Stores, Inc. .................... 10/15/05 5.875 233,808
----------
</TABLE>
46
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FIXED INCOME PORTFOLIO--(CONCLUDED)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ----------
<C> <S> <C> <C> <C>
CORPORATE BONDS--(CONCLUDED)
UTILITIES--ELECTRIC, GAS & WATER--4.02%
$ 300 Georgia Power Company..................... 03/01/96 4.750% $ 297,330
100 Louisville Gas & Electric Co. ............ 06/01/96 5.625 99,658
----------
396,988
----------
Total Corporate Bonds (cost--$2,456,454).............. 2,552,159
----------
FEDERALLY SPONSORED AGENCY OBLIGATIONS--4.05%
400 Student Loan Marketing Association
(cost--$399,575).......................... 10/04/96 to 07/21/97 6.000 to 6.050 400,344
----------
YANKEE BONDS--1.45%
BANKS--1.45%
150 Toronto Dominion Bank of Ontario
(cost--$135,510).......................... 08/15/08 6.500 143,743
----------
REPURCHASE AGREEMENT--26.01%
2,570 Repurchase Agreement dated 06/30/95 with
State Street Bank & Trust Co.,
collateralized by $2,614,500 U.S.
Treasury Notes, 5.125%, due 11/15/95;
proceeds: $2,571,178 (cost--$2,570,000). 07/03/95 5.500 2,570,000
----------
Total Investments (cost--$9,600,334)--99.21%.......... 9,801,280
Other assets in excess of liabilities--0.79%.......... 77,643
----------
Net Assets (applicable to 1,045,590 shares of
beneficial interest equivalent to $9.45 per
share)--100.00%..................................... $9,878,923
----------
----------
</TABLE>
See accompanying notes to financial statements
47
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
June 30, 1995 (unaudited)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
MONEY GLOBAL
MARKET GROWTH GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS
Investments, at value (cost--$27,947,983; $34,585,100;
$32,444,653; $44,894,355; $17,272,014; $25,229,123;
$10,922,496; $13,909,257; $12,504,195 and
$7,030,334,
respectively)....................................... $27,947,983 $44,792,327 $33,306,915
Repurchase agreements, at value (cost--$0; $405,000;
$865,000; $1,155,000; $745,000; $205,000; $460,000;
$0; $235,000 and $2,570,000, respectively).......... -- 405,000 865,000
----------- ----------- -----------
27,947,983 45,197,327 34,171,915
Cash.................................................. 851 4,616 3,473
Cash denominated in foreign currencies, at value...... -- -- --
Receivable for investments sold....................... -- 10,625 847,653
Receivable for shares of beneficial interest sold..... -- -- 130
Unrealized appreciation on forward foreign currency
contracts........................................... -- -- --
Dividends and interest receivable..................... 15,817 38,872 83,193
Receivable for foreign taxes withheld................. -- -- 40,508
Deferred organizational expenses and other assets..... 1,111 2,474 2,092
----------- ----------- -----------
Total assets...................................... 27,965,762 45,253,914 35,148,964
----------- ----------- -----------
LIABILITIES
Payable for investments purchased..................... -- -- 220,908
Payable for shares of beneficial interest
repurchased......................................... -- -- 51,374
Unrealized depreciation on forward foreign currency
contracts........................................... -- -- --
Payable to affiliates................................. 11,324 27,126 21,510
Dividends payable to shareholders..................... 122,509 -- --
Accrued expenses and other liabilities................ 35,552 69,994 113,216
----------- ----------- -----------
Total liabilities................................. 169,385 97,120 407,008
----------- ----------- -----------
NET ASSETS
Beneficial interest shares of $0.001 par value
outstanding-- 27,811,532; 2,762,678; 2,956,869;
4,150,467; 1,644,357; 2,473,263; 1,210,390;
1,490,574; 1,412,336 and 1,045,590,
respectively (unlimited amount authorized).......... $27,811,076 $34,200,365 $38,608,146
Accumulated undistributed net investment income....... 2,067 49,730 295,418
Accumulated net realized gains (losses) from
investments, other assets, liabilities, options and
forward contracts denominated in foreign
currencies.......................................... (16,766) 699,472 (5,026,185)
Net unrealized appreciation/depreciation of
investments, other assets, liabilities, options and
forward contracts denominated in foreign
currencies.......................................... -- 10,207,227 864,577
----------- ----------- -----------
Net assets........................................ $27,796,377 $45,156,794 $34,741,956
----------- ----------- -----------
----------- ----------- -----------
Net asset value, offering and redemption price per
share................................................ $1.00 $16.35 $11.75
</TABLE>
See accompanying notes to financial statements
48
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE><CAPTION>
GLOBAL ASSET DIVIDEND AGGRESSIVE FIXED
INCOME GOVERNMENT ALLOCATION GROWTH GROWTH BALANCED INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
$46,119,039 $17,830,802 $27,472,842 $12,307,502 $16,533,669 $14,768,061 $7,231,280
1,155,000 745,000 205,000 460,000 -- 235,000 2,570,000
----------- ----------- ----------- ----------- ----------- ----------- ----------
47,274,039 18,575,802 27,677,842 12,767,502 16,533,669 15,003,061 9,801,280
92,020 4,384 3,858 2,748 281 4,850 506
326,662 -- -- -- -- -- --
2,045,614 -- -- 140,211 47,578 621,354 --
-- -- -- -- -- -- --
238,566 -- -- -- -- -- --
1,271,744 331,914 85,110 24,085 25,064 72,805 103,848
32,548 -- -- -- -- -- --
1,097 2,409 646 15,224 303 5,174 126
----------- ----------- ----------- ----------- ----------- ----------- ----------
51,282,290 18,914,509 27,767,456 12,949,770 16,606,895 15,707,244 9,905,760
----------- ----------- ----------- ----------- ----------- ----------- ----------
2,048,518 -- 642,689 57,429 -- 181,500 --
86,013 -- -- -- -- -- --
700,959 -- -- -- -- -- --
30,208 7,790 16,406 7,288 10,635 9,511 4,286
-- -- -- -- -- -- --
184,841 45,847 50,708 39,876 28,854 25,595 22,551
----------- ----------- ----------- ----------- ----------- ----------- ----------
3,050,539 53,637 709,803 104,593 39,489 216,606 26,837
----------- ----------- ----------- ----------- ----------- ----------- ----------
47,080,182 17,592,650 24,300,274 11,805,548 14,773,601 13,727,298 9,571,833
1,273,520 617,317 436,762 49,168 33,020 91,692 261,834
(901,017) 92,117 76,899 (394,545) (863,627) (592,218) (155,690)
779,066 558,788 2,243,718 1,385,006 2,624,412 2,263,866 200,946
----------- ----------- ----------- ----------- ----------- ----------- ----------
$48,231,751 $18,860,872 $27,057,653 $12,845,177 $16,567,406 $15,490,638 $9,878,923
----------- ----------- ----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------- ----------- ----------
$11.62 $11.47 $10.94 $10.61 $11.11 $10.97 $9.45
------ ------ ------ ------ ------ ------ -----
------ ------ ------ ------ ------ ------ -----
</TABLE>
49
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended June 30, 1995 (unaudited)
--------------------------------------------------------------------------------
<TABLE><CAPTION>
MONEY GLOBAL
MARKET GROWTH GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding taxes, if any)...... $ 796,706 $ 162,219 $ 121,538
Dividends (net of foreign withholding taxes, if any)..... -- 121,648 450,655
--------- ---------- -----------
796,706 283,867 572,193
--------- ---------- -----------
EXPENSES:
Investment advisory and administration................... 64,959 162,541 137,501
Custody and accounting................................... 21,879 21,869 104,975
Legal and audit.......................................... 12,038 28,546 20,225
Reports and notices to shareholders...................... 5,054 13,966 10,984
Trustees' fees and expenses.............................. 1,488 1,488 1,488
Transfer agency fees and expenses........................ 750 750 750
Amortization of organizational expenses.................. -- -- --
Other expenses........................................... 414 2,086 852
--------- ---------- -----------
106,582 231,246 276,775
--------- ---------- -----------
Net investment income.................................... 690,124 52,621 295,418
--------- ---------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT
ACTIVITIES:
Net realized gains (losses) from investment
transactions................................................ 101 669,622 (4,702,500)
Net realized gains (losses) from foreign currency
transactions................................................ -- -- (116,437)
Net change in unrealized appreciation/depreciation of:
Investments............................................ -- 4,347,077 2,006,646
Other assets, liabilities, options and forward
contracts denominated in foreign currencies.......... -- -- 4,497
--------- ---------- -----------
Net realized and unrealized gains (losses) from
investment activities.................................. 101 5,016,699 (2,807,794)
--------- ---------- -----------
Net increase (decrease) in net assets resulting from
operations............................................. $ 690,225 $5,069,320 $(2,512,376)
--------- ---------- -----------
--------- ---------- -----------
</TABLE>
See accompanying notes to financial statements
50
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE><CAPTION>
GLOBAL ASSET DIVIDEND AGGRESSIVE FIXED
INCOME GOVERNMENT ALLOCATION GROWTH GROWTH BALANCED INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
$2,142,176 $ 708,468 $ 523,740 $ 28,470 $ 22,977 $ 41,402 $ 313,787
-- -- 60,837 110,688 110,703 137,336 --
---------- ---------- ---------- ---------- ---------- ---------- ---------
2,142,176 708,468 584,577 139,158 133,680 178,738 313,787
---------- ---------- ---------- ---------- ---------- ---------- ---------
186,795 46,680 97,756 42,236 60,037 52,033 23,653
129,504 16,350 13,719 22,399 18,236 13,271 6,264
31,612 12,942 17,620 11,605 9,998 9,858 9,969
48,568 6,290 9,077 2,965 3,955 2,854 2,457
1,488 1,488 1,488 1,488 1,488 1,488 1,488
750 750 750 750 750 750 750
-- -- -- 5,249 -- -- --
12,315 1,467 5,022 1,078 410 738 1,448
---------- ---------- ---------- ---------- ---------- ---------- ---------
411,032 85,967 145,432 87,770 94,874 80,992 46,029
---------- ---------- ---------- ---------- ---------- ---------- ---------
1,731,144 622,501 439,145 51,388 38,806 97,746 267,758
---------- ---------- ---------- ---------- ---------- ---------- ---------
(65,983) 92,265 297,044 174,556 (135,217) 3,750 (74,136)
353,254 -- -- -- -- -- --
2,244,528) 1,247,791 2,860,981 1,589,524 2,271,342 2,064,583 581,408
(930,652 -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------
1,601,147 1,340,056 3,158,025 1,764,080 2,136,125 2,068,333 507,272
---------- ---------- ---------- ---------- ---------- ---------- ---------
$3,332,291 $1,962,557 $3,597,170 $1,815,468 $2,174,931 $2,166,079 $ 775,030
---------- ---------- ---------- ---------- ---------- ---------- ---------
---------- ---------- ---------- ---------- ---------- ---------- ---------
</TABLE>
51
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
MONEY MARKET PORTFOLIO
---------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEAR
1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------ -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income...................................... $ 690,124 $ 734,045
Net realized gains (losses) from investment transactions... 101 (15,083)
------------ -----------------
Net increase in net assets resulting from operations....... 690,225 718,962
------------ -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income...................................... (690,124 ) (734,045)
------------ -----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares....................... 11,286,198 36,901,166
Cost of shares repurchased................................. (9,208,804 ) (27,969,522)
Proceeds from dividends reinvested......................... 676,688 658,122
------------ -----------------
Net increase in net assets derived from beneficial interest
transactions............................................. 2,754,082 9,589,766
------------ -----------------
Net increase in net assets................................. 2,754,183 9,574,683
NET ASSETS:
Beginning of period........................................ 25,042,194 15,467,511
------------ -----------------
End of period.............................................. $27,796,377 $25,042,194
------------ -----------------
------------ -----------------
</TABLE>
See accompanying notes to financial statements
52
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
GROWTH PORTFOLIO
---------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEAR
1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------ -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income...................................... $ 52,621 $ 19,344
Net realized gains from investment transactions............ 669,622 2,975,347
Net change in unrealized appreciation/depreciation of
investments.............................................. 4,347,077 (9,049,293)
------------ -----------------
Net increase (decrease) in net assets resulting from
operations............................................... 5,069,320 (6,054,602)
------------ -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income...................................... -- (22,235)
Net realized gains from investment transactions............ -- (3,714,713)
------------ -----------------
-- (3,736,948)
------------ -----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares....................... 3,454,069 21,466,135
Cost of shares repurchased................................. (5,529,273 ) (26,957,944)
Proceeds from dividends reinvested......................... 2,997,682 2,722,424
------------ -----------------
Net increase (decrease) in net assets derived from
beneficial interest transactions......................... 922,478 (2,769,385)
------------ -----------------
Net increase (decrease) in net assets...................... 5,991,798 (12,560,935)
NET ASSETS:
Beginning of period........................................ 39,134,996 51,695,931
------------ -----------------
End of period.............................................. $45,126,794 $ 39,134,996
------------ -----------------
------------ -----------------
</TABLE>
See accompanying notes to financial statements
53
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
GLOBAL GROWTH PORTFOLIO
---------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR
JUNE 30, 1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------------ -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss)........................... $ 295,418 $ (55,523)
Net realized gains (losses) from investment
transactions......................................... (4,702,500) 4,058,510
Net realized losses from foreign currency
transactions......................................... (116,437) (2,376,224)
Net change in unrealized appreciation/depreciation
from:
Investment transactions............................. 2,006,646 (7,325,051)
Other assets, liabilities and forward contracts
denominated in foreign currencies................. 4,497 (101,917)
---------- -----------------
Net decrease in net assets resulting from operations... (2,512,376) (5,800,205)
---------- -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................. -- (18,320)
Net realized gains from investment transactions........ -- (2,355,256)
---------- -----------------
-- (2,373,576)
---------- -----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares................... 2,153,549 22,436,105
Cost of shares repurchased............................. (7,747,380) (13,265,659)
Proceeds from dividends reinvested..................... 2,355,062 1,461,895
---------- -----------------
Net increase (decrease) in net assets derived from
beneficial interest transactions..................... (3,238,769) 10,632,341
---------- -----------------
Net increase (decrease) in net assets.................. (5,751,145) 2,458,560
NET ASSETS:
Beginning of period.................................... 40,493,101 38,034,541
---------- -----------------
End of period.......................................... $ 34,741,956 $ 40,493,101
---------- -----------------
---------- -----------------
</TABLE>
See accompanying notes to financial statements
54
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
GLOBAL INCOME PORTFOLIO
---------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEAR
1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------ -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income...................................... $ 1,731,144 $ 4,574,255
Net realized losses from investment transactions........... (65,983 ) (1,051,761)
Net realized gains (losses) from foreign currency
transactions............................................. 353,254 (3,269,773)
Net change in unrealized appreciation/depreciation from:
Investment transactions................................. 2,244,528 (4,218,170)
Other assets, liabilities and forward contracts
denominated in foreign currencies..................... (930,652 ) (77,672)
------------ -----------------
Net increase (decrease) in net assets resulting from
operations............................................... 3,332,291 (4,043,121)
------------ -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income...................................... -- (1,029,860)
------------ -----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares....................... 663,013 16,258,202
Cost of shares repurchased................................. (9,363,655 ) (30,366,903)
Proceeds from dividends reinvested......................... 911,656 7,259,738
------------ -----------------
Net decrease in net assets derived from beneficial interest
transactions............................................. (7,788,986 ) (6,848,963)
------------ -----------------
Net decrease in net assets................................. (4,456,695 ) (11,921,944)
NET ASSETS:
Beginning of period........................................ 52,688,446 64,610,390
------------ -----------------
End of period.............................................. $48,231,751 $ 52,688,446
------------ -----------------
------------ -----------------
</TABLE>
See accompanying notes to financial statements
55
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
GOVERNMENT PORTFOLIO
---------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEAR
1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------ -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income...................................... $ 622,501 $ 1,405,206
Net realized gains from investment transactions............ 92,265 163,750
Net change in unrealized appreciation/depreciation of
investments.............................................. 1,247,791 (2,805,179)
------------ -----------------
Net increase (decrease) in net assets resulting from
operations............................................... 1,962,557 (1,236,223)
------------ -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income...................................... -- (1,407,083)
Net realized gains from investment transactions............ -- (163,150)
------------ -----------------
-- (1,570,233)
------------ -----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares....................... 1,987,908 8,119,615
Cost of shares repurchased................................. (3,679,801 ) (12,517,855)
Proceeds from dividends reinvested......................... 1,570,233 1,871,128
------------ -----------------
Net decrease in net assets derived from beneficial interest
transactions............................................. (121,660 ) (2,527,112)
------------ -----------------
Net increase (decrease) in net assets...................... 1,840,897 (5,333,568)
NET ASSETS:
Beginning of period........................................ 17,019,975 22,353,543
------------ -----------------
End of period.............................................. $18,860,872 $ 17,019,975
------------ -----------------
------------ -----------------
</TABLE>
See accompanying notes to financial statements
56
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
ASSET ALLOCATION PORTFOLIO
---------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEAR
1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------ -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income...................................... $ 439,145 $ 723,629
Net realized gains from investment transactions............ 297,044 2,076,190
Net change in unrealized appreciation/depreciation of
investments.............................................. 2,860,981 (5,970,967)
------------ -----------------
Net increase (decrease) in net assets resulting from
operations............................................... 3,597,170 (3,171,148)
------------ -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income...................................... -- (726,012)
Net realized gains from investment transactions............ -- (2,382,107)
------------ -----------------
-- (3,108,119)
------------ -----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares....................... 1,442,530 7,251,661
Cost of shares repurchased................................. (4,267,012 ) (15,327,061)
Proceeds from dividends reinvested......................... 3,021,779 4,250,712
------------ -----------------
Net increase (decrease) in net assets derived from
beneficial interest transactions......................... 197,297 (3,824,688)
------------ -----------------
Net increase (decrease) in net assets...................... 3,794,467 (10,103,955)
NET ASSETS:
Beginning of period........................................ 23,263,186 33,367,141
------------ -----------------
End of period.............................................. $27,057,653 $23,263,186
------------ -----------------
------------ -----------------
</TABLE>
See accompanying notes to financial statements
57
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
DIVIDEND GROWTH PORTFOLIO
---------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEAR
1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------ -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income...................................... $ 51,388 $ 141,269
Net realized gains from investment transactions............ 174,556 213,925
Net change in unrealized appreciation/depreciation of
investments.............................................. 1,589,524 (1,235,102)
------------ -----------------
Net increase (decrease) in net assets resulting from
operations............................................... 1,815,468 (879,908)
------------ -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income...................................... -- (140,023)
------------ -----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares....................... 1,513,334 5,138,623
Cost of shares repurchased................................. (3,495,238 ) (7,799,194)
Proceeds from dividends reinvested......................... 140,023 271,161
------------ -----------------
Net decrease in net assets derived from beneficial interest
transactions............................................. (1,841,881 ) (2,389,410)
------------ -----------------
Net decrease in net assets................................. (26,413 ) (3,409,341)
NET ASSETS:
Beginning of period........................................ 12,871,590 16,280,931
------------ -----------------
End of period.............................................. $12,845,177 $12,871,590
------------ -----------------
------------ -----------------
</TABLE>
See accompanying notes to financial statements
58
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
-------------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEAR
1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------ ---------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income.................................... $ 38,806 $ 6,815
Net realized losses from investment transactions......... (135,217 ) (728,410)
Net change in unrealized appreciation/depreciation of
investments............................................ 2,271,342 348,478
------------ ----------
Net increase (decrease) in net assets resulting from
operations............................................. 2,174,931 (373,117)
------------ ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................... -- (13,041)
------------ ----------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares..................... 1,880,569 12,037,722
Cost of shares repurchased............................... (1,096,103 ) (873,740)
Proceeds from dividends reinvested....................... 7,555 9,067
------------ ----------
Net increase in net assets derived from beneficial
interest transactions.................................. 792,021 11,173,049
------------ ----------
Net increase in net assets............................... 2,966,952 10,786,891
NET ASSETS:
Beginning of period...................................... 13,600,454 2,813,563
------------ ----------
End of period............................................ $16,567,406 $13,600,454
------------ ----------
------------ ----------
</TABLE>
See accompanying notes to financial statements
59
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
BALANCED PORTFOLIO
---------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEAR
1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------ -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income...................................... $ 97,746 $ 105,120
Net realized gains (losses) from investment transactions... 3,750 (595,968)
Net change in unrealized appreciation/depreciation of
investments.............................................. 2,064,583 203,706
------------ -----------------
Net increase (decrease) in net assets resulting from
operations............................................... 2,166,079 (287,142)
------------ -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income...................................... -- (111,181)
------------ -----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares....................... 3,275,695 10,671,404
Cost of shares repurchased................................. (2,101,395 ) (498,837)
Proceeds from dividends reinvested......................... 105,106 8,736
------------ -----------------
Net increase in net assets derived from beneficial interest
transactions............................................. 1,279,406 10,181,303
------------ -----------------
Net increase in net assets................................. 3,445,485 9,782,980
NET ASSETS:
Beginning of period........................................ 12,045,153 2,262,173
------------ -----------------
End of period.............................................. $15,490,638 $12,045,153
------------ -----------------
------------ -----------------
</TABLE>
See accompanying notes to financial statements
60
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE><CAPTION>
FIXED INCOME PORTFOLIO
-------------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEAR
1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------ ---------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income.................................... $ 267,758 $ 219,153
Net realized losses from investment transactions......... (74,136) (81,553)
Net change in unrealized appreciation/depreciation of
investments............................................ 581,408 (379,175)
------------ --------
Net increase (decrease) in net assets resulting from
operations............................................. 775,030 (241,575)
------------ --------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................... -- (225,030)
------------ --------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares..................... 2,639,984 7,331,767
Cost of shares repurchased............................... (1,394,167) (714,447)
Proceeds from dividends reinvested....................... 220,084 7,228
------------ --------
Net increase in net assets derived from beneficial
interest transactions.................................. 1,465,901 6,624,548
------------ --------
Net increase in net assets............................... 2,240,931 6,157,943
NET ASSETS:
Beginning of period...................................... 7,637,992 1,480,049
------------ --------
End of period............................................ $9,878,923 $ 7,637,992
------------ --------
------------ --------
</TABLE>
See accompanying notes to financial statements
61
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Notes to Financial Statements--(unaudited)
--------------------------------------------------------------------------------
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Series Trust (the "Fund") is organized under Massachusetts law
by a Declaration of Trust dated November 21, 1986 and is registered with the
Securities and Exchange Commission ("SEC") under the Investment Company Act of
1940, as amended, as an open-end management investment company. The Trustees
have the authority to issue an unlimited number of shares of beneficial
interest, par value $0.001.
As of June 30, 1995, the Fund had ten series of shares available for
investment, each having its own investment objectives and policies: the Money
Market Portfolio, the Growth Portfolio, the Global Growth Portfolio, the Global
Income Portfolio, the Government Portfolio, the Asset Allocation Portfolio, the
Dividend Growth Portfolio, the Aggressive Growth Portfolio, the Balanced
Portfolio and the Fixed Income Portfolio (collectively referred to as the
"Portfolios").
All series of shares are diversified except Global Income Portfolio. Shares
of each series of the Fund are offered only to insurance company separate
accounts which fund certain variable contracts. Shares of each series of the
fund are offered to separate accounts of Paine Webber Life Insurance Company
("PaineWebber Life"). PaineWebber Life is a wholly-owned subsidiary of
PaineWebber Life Holdings Inc., which in turn is a wholly-owned subsidiary of
PaineWebber Group Inc.
Organizational Matters--The costs incurred by the Fund in connection with
its organization and registration of shares of each Portfolio have been deferred
and are being amortized using the straight-line method over the period of
benefit, not to exceed five years, beginning with the commencement of operations
of each Portfolio.
Valuation of Investments--Securities which are listed on U.S. and foreign
stock exchanges are valued at the last sale price on the day the securities are
being valued or, lacking any sales on such day, at the last available bid price.
In cases where securities are traded on more than one exchange, the securities
are generally valued on the exchange designated by Mitchell Hutchins Asset
Management Inc. ("Mitchell Hutchins"), a wholly owned subsidiary of PaineWebber
Incorporated ("PaineWebber"), as the primary market for the Growth Portfolio,
Global Growth Portfolio, Global Income Portfolio, Government Portfolio, Asset
Allocation Portfolio and Dividend Growth Portfolio. For the Aggressive Growth
Portfolio, Balanced Portfolio and Fixed Income Portfolio, the securities are
generally valued on the exchange designated by Nicholas-Applegate Capital
Management, Provident Investment Counsel, and Wolf, Webb, Burk & Campbell, Inc.
("Sub-Advisers"), the respective sub-advisers of the Portfolios, as the primary
market. Securities traded in the over-the-counter ("OTC") market and listed on
the National Association of Securities Dealers Automated Quotation System
("NASDAQ") are valued at the last trade price on NASDAQ prior to the time of
valuation; other OTC securities are valued at the last bid price available in
the OTC market prior to the time of valuation. The Money Market Portfolio uses
the amortized cost method, which approximates market value, for valuing its
investments. For the other Portfolios the amortized cost method of valuation is
used with respect only to debt obligations with sixty days or less remaining to
maturity unless the Fund's board of trustees determines that this does not
represent fair value. Securities and assets for which market quotations are
62
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
--------------------------------------------------------------------------------
not readily available are valued at fair value as determined in good faith by or
under the direction of the Fund's board of trustees.
The ability of the issuers of the debt securities held by the Portfolios to
meet their obligations may be affected by economic and political developments,
including those particular to a specific industry, country or region.
All investments quoted in foreign currencies are valued daily in U.S.
dollars on the basis of the foreign currency exchange rate prevailing at the
time such valuation is determined by the Fund's custodians. Foreign currency
exchange rates are generally determined prior to the close of the New York Stock
Exchange ("NYSE"). Occasionally, events affecting the value of foreign
investments and such exchange rates occur between the time at which they are
determined and the close of the NYSE, which will not be reflected in a
computation of the Portfolios' net asset value. If events materially affecting
the value of such investments or currency exchange rates occurred during such
time period, the securities are valued at their fair value as determined in good
faith by or under the direction of the Fund's board of trustees.
Investment Transactions and Investment Income--Investment transactions are
accounted for on the trade date. Realized gains and losses on sales of
investments and foreign security and foreign exchange transactions are
calculated using the identified cost basis. Dividend income and other
distributions are recorded on the ex-dividend date ("ex-date") (except for
certain dividends from foreign securities that are recorded as soon after the
ex-date as the respective Portfolio becomes aware of such dividends). Interest
income is recorded on an accrual basis. Discounts are accreted as adjustments to
interest income and the identified cost of investments.
Foreign Currency Translation--The books and records of the Global Growth
Portfolio and Global Income Portfolio are maintained in U.S. dollars as follows:
(1) the foreign currency market value of investment securities and other assets
and liabilities stated in foreign currencies are translated at the exchange
rates prevailing at the end of the period; and (2) purchases, sales, income and
expenses are translated at the rate of exchange prevailing on the respective
dates of such transactions. The resulting exchange gains and losses are included
in the Statement of Operations.
The Global Growth Portfolio and Global Income Portfolio do not generally
isolate the effect of fluctuations in foreign exchange rates from the effects of
fluctuations in the market price of investment securities. However, these
Portfolios do isolate the effect of fluctuations in foreign exchange rates when
determining the realized gain or loss upon the sale or maturity of foreign
currency-denominated debt obligations pursuant to federal income tax
regulations; such amount is categorized as foreign exchange gain or loss for
both financial reporting and income tax purposes.
Forward Foreign Currency Contracts--The Global Growth, Global Income and
Government Portfolios may enter into forward foreign currency exchange contracts
("forward contracts") in connection with planned purchases or sales of
securities to hedge the U.S. dollar value of portfolio securities denominated in
a particular currency. These portfolios may also engage in cross-hedging by
using forward contracts in one currency to hedge fluctuations in the value of
securities denominated in a
63
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
--------------------------------------------------------------------------------
different currency if Mitchell Hutchins anticipates that there will be a
correlation between the two currencies. Forward contracts may also be used to
shift a Portfolio's exposure to foreign currency fluctuations from one country
to another.
These Portfolios have no specific limitation on the percentage of assets
which may be committed to such contracts; however, the value of all forward
contracts will not exceed the total market value of the Portfolio's total
assets. These Portfolios may enter into forward contracts or maintain a net
exposure to forward contracts only if (1) the consummation of the contracts
would not obligate the Portfolio to deliver an amount of foreign currency in
excess of the value of the positions being hedged by such contracts or (2) the
Portfolios maintain cash, U.S. government securities or liquid, high-grade debt
securities in a segregated account in an amount not less than the value of the
Portfolio's total assets committed to the consummation of the forward contracts
and not covered as provided in (1) above, as marked to market daily.
Risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar.
Fluctuations in the value of forward contracts are recorded for book
purposes as unrealized gains or losses by the Portfolios. Realized gains and
losses include net gains or losses recognized by the Portfolio on contracts
which have matured.
Option Writing--When the Portfolios write a call or a put option, an amount
equal to the premium received by the Portfolios is included in the Portfolios'
Statement of Assets and Liabilities as an asset and as an equivalent liability.
The amount of the liability is subsequently marked-to-market to reflect the
current market value of the option written. If an option which the Portfolios
have written either expires on its stipulated expiration date or the Portfolios
enter into a closing purchase transaction, the Portfolios realize a gain (or
loss if the cost of a closing purchase transaction exceeds the premium received
when the option was written) without regard to any unrealized gain or loss on
the underlying security, and the liability related to such option is
extinguished. If a call option which the Portfolios have written is exercised,
the Portfolios realize a capital gain or loss (long-term or short-term,
depending on the holding period of the underlying security) from the sale of the
underlying security and the proceeds from the sale are increased by the premium
originally received. If a put option which the Portfolios have written is
exercised, the amount of the premium originally received reduces the cost of the
security which the Portfolios purchase upon exercise of the option.
Repurchase Agreements--Each Portfolio'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 Portfolios have the right
to liquidate the collateral and apply the proceeds in satisfaction of the
obligations. 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.
64
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
--------------------------------------------------------------------------------
Each Portfolio occasionally participates in joint repurchase agreement
transactions with other Funds managed by Mitchell Hutchins. At June 30, 1995 the
Asset Allocation, Dividend Growth, Government, Growth, Balanced and Fixed Income
Portfolios have a proportionate interest in a joint transaction outstanding with
State Street Bank & Trust Co. Also at June 30, 1995, the Global Growth and
Global Income Portfolios have a proportionate interest in a joint transaction
outstanding with Brown Brothers Harriman & Co.
Reverse Repurchase Agreements--Each Portfolio may enter into reverse
repurchase agreements with banks and broker-dealers up to an aggregate value of
not more than 5% of its total assets (10% of total assets for Global Income and
Balanced Portfolios). At June 30, 1995, the Portfolios had no reverse repurchase
agreements outstanding.
Federal Tax Status--Each of the Portfolios intends to distribute all of
their taxable income and to comply with the other requirements of the Internal
Revenue Code applicable to regulated investment companies. Accordingly, no
provision for federal income taxes is required.
Dividends and Distributions to Shareholders--Dividends and distributions to
shareholders are recorded on the ex-dividend date. The amount of dividends and
distributions are determined in accordance with federal income tax regulations
which may differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distributions of
paid-in-capital.
INVESTMENT ADVISER AND ADMINISTRATOR
The Fund's board of trustees has approved an investment advisory and
administration contract ("Advisory Contract") with Mitchell Hutchins, under
which Mitchell Hutchins serves as investment
65
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
--------------------------------------------------------------------------------
adviser and administrator of the Fund and each Portfolio. Mitchell Hutchins
receives compensation from the Fund, computed daily and payable monthly, as
follows:
ANNUAL RATE
-----------
Money Market Portfolio......................................... 0.50%
Growth Portfolio............................................... 0.75
Global Growth Portfolio........................................ 0.75
Global Income Portfolio........................................ 0.75
Government Portfolio........................................... 0.50
Asset Allocation Portfolio..................................... 0.75
Dividend Growth Portfolio...................................... 0.70
Aggressive Growth Portfolio.................................... 0.80
Balanced Portfolio............................................. 0.75
Fixed Income Portfolio......................................... 0.50
Under separate contracts with each Sub-Adviser Mitchell Hutchins (not the
Portfolios) pays the Sub-Advisers a fee, computed daily and paid monthly, at an
annual rate of 0.50%, 0.45% and 0.30% of the fee paid to Mitchell Hutchins under
the Advisory Contracts for the Aggressive Growth Portfolio, the Balanced
Portfolio and the Fixed Income Portfolio, respectively.
During the six months ended June 30, 1995, Growth Portfolio, Global Growth
Portfolio, Asset Allocation Portfolio, and Dividend Growth Portfolio paid $900,
$2,659, $360, and $980, respectively, in brokerage commissions to PaineWebber
for transactions executed on behalf of that Portfolio.
TRANSACTION WITH AFFILIATED COMPANY
An affiliated company represents ownership of at least 5% of the voting
securities of the issuer during the period, as defined in the Investment Company
Act of 1940.
At June 30, 1995, the Growth Portfolio owned 60,000 shares of common stock
of TDX Corporation with an original cost of $307,500 and a market value of
$30,000.
66
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
--------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
For the six months ended June 30, 1995, total aggregate purchases and sales
of portfolio securities, excluding short-term securities, were:
PURCHASES SALES
----------- -----------
Growth Portfolio................................ $ 4,943,234 $ 8,031,250
Global Growth Portfolio......................... 42,397,243 48,364,633
Global Income Portfolio......................... 25,393,149 29,747,200
Government Portfolio............................ 13,324,795 13,086,953
Asset Allocation Portfolio...................... 13,987,985 18,651,510
Dividend Growth Portfolio....................... 6,179,063 7,590,955
Aggressive Growth Portfolio..................... 8,893,188 7,635,530
Balanced Portfolio.............................. 10,461,791 8,485,618
Fixed Income Portfolio.......................... 2,101,125 1,757,694
At June 30, 1995, the components of net unrealized appreciation of
investments were as follows:
<TABLE><CAPTION>
NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
<S> <C> <C> <C>
Growth Portfolio..................................... $ 12,613,510 $ 2,406,283 $ 10,207,227
Global Growth Portfolio.............................. 1,738,709 876,447 862,262
Global Income Portfolio.............................. 1,657,299 432,615 1,224,684
Government Portfolio................................. 569,273 10,485 558,788
Asset Allocation Portfolio........................... 2,292,997 49,279 2,243,718
Dividend Growth Portfolio............................ 1,609,340 224,334 1,385,006
Aggressive Growth Portfolio.......................... 2,918,555 294,143 2,624,412
Balanced Portfolio................................... 2,338,927 75,061 2,263,866
Fixed Income Portfolio............................... 238,333 37,387 200,946
</TABLE>
For federal income tax purposes, the cost of securities owned at June 30,
1995 was substantially the same as the cost of securities for financial
statement purposes.
67
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
--------------------------------------------------------------------------------
FEDERAL INCOME TAX STATUS
At December 31, 1994, the following Portfolios had net capital loss
carryforwards available as reductions, to the extent provided in the
regulations, of any future net gains realized before the end of the fiscal years
indicated below:
<TABLE><CAPTION>
MONEY GLOBAL DIVIDEND AGGRESSIVE FIXED
MARKET INCOME GROWTH GROWTH BALANCED INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
2001.......................... $ 1,784 -- $ 494,715 -- -- --
2002.......................... 15,083 $ 781,570 -- $ 680,022 $461,040 $ 30,573
--------- --------- --------- ---------- -------- ---------
$ 16,867 $ 781,570 $ 494,715 $ 680,022 $461,040 $ 30,573
--------- --------- --------- ---------- -------- ---------
--------- --------- --------- ---------- -------- ---------
</TABLE>
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.
WRITTEN OPTION ACTIVITY
Written option activity for the six months ended June 30, 1995 for the
Dividend Growth Portfolio were as follows:
<TABLE><CAPTION>
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
--------- ---------
<S> <C> <C>
Options outstanding at December 31, 1994............................... 3 $ 291
Options written during the six months ending June 30, 1995............. 7 1,212
Options cancelled in closing purchase transactions..................... (3) (291)
Options expired prior to exercise...................................... (2) (406)
Options exercised...................................................... (5) (806)
--
---------
Options outstanding at June 30, 1995................................... 0 $ 0
-- ---------
-- ---------
</TABLE>
68
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
--------------------------------------------------------------------------------
SHARES OF BENEFICIAL INTEREST
At June 30, 1995, there was an unlimited amount of $0.001 par value shares
of beneficial interest authorized. Transactions in shares of beneficial interest
for each of the Portfolios were as follows:
<TABLE><CAPTION>
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
-------------------------------------------------------------------------------------------------------
MONEY GLOBAL GLOBAL ASSET DIVIDEND AGGRESSIVE
MARKET GROWTH GROWTH INCOME GOVERNMENT ALLOCATION GROWTH GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ---------- --------- ---------- ---------- ---------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold . 11,286,198 226,230 183,715 58,899 184,425 140,593 153,272 187,589
Shares
redeemed... (9,208,804) (360,498) (674,638) (835,934) (338,463) (422,065) (364,009) (106,728)
Reinvestment
of
dividends.. 676,688 208,462 193,445 84,024 152,154 317,414 15,387 787
----------- ---------- --------- ---------- ---------- ---------- --------- ------------
Net increase
(decrease)
in shares
outstanding 2,754,082 74,194 (297,478) (693,011) (1,884) 35,942 (195,350) 81,648
----------- ---------- --------- ---------- ---------- ---------- --------- ------------
----------- ---------- --------- ---------- ---------- ---------- --------- ------------
<CAPTION>
FIXED
BALANCED INCOME
PORTFOLIO PORTFOLIO
------------ ------------
<S> <C> <C>
Shares sold.. 332,043 293,373
Shares
redeemed... (203,335) (149,567)
Reinvestment
of
dividends.. 11,229 25,297
------------ ------
Net increase
(decrease)
in
shares
outstanding 139,937 169,103
------------ ------
------------ ------
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1994
-------------------------------------------------------------------------------------------------------
MONEY GLOBAL GLOBAL ASSET DIVIDEND AGGRESSIVE
MARKET GROWTH GROWTH INCOME GOVERNMENT ALLOCATION GROWTH GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ---------- --------- ---------- ---------- ---------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold.. 36,901,166 1,273,859 1,580,027 1,420,486 706,654 634,690 545,528 1,214,882
Shares
redeemed... (27,969,522) (1,605,950) (963,682) (2,707,108) (1,092,356) (1,350,041) (817,625) (89,600)
Reinvestment
of
dividends.. 658,122 157,923 96,512 619,553 157,635 360,587 27,783 947
----------- ---------- --------- ---------- ---------- ---------- --------- ------------
Net increase
(decrease)
in shares
outstanding 9,589,766 (174,168) 712,857 (667,069) (228,067) (354,764) (244,314) 1,126,229
----------- ---------- --------- ---------- ---------- ---------- --------- ------------
----------- ---------- --------- ---------- ---------- ---------- --------- ------------
<CAPTION>
FIXED
BALANCED INCOME
PORTFOLIO PORTFOLIO
------------ ------------
<S> <C> <C>
Shares sold.. 1,094,747 800,545
Shares
redeemed... (51,967) (78,881)
Reinvestment
of
dividends.. 921 788
------------ ------
Net increase
(decrease)
in shares
outstanding 1,043,701 722,452
------------ ------
------------ ------
</TABLE>
69
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Notes to Financial Statements--(concluded)
--------------------------------------------------------------------------------
ERRATA
Subsequent to the release of the annual report as of December 31, 1994,
several discrepancies were ascertained. The following annual total returns for
the five years ended December 31, 1994 have been restated:
ORIGINAL RESTATED
-------- --------
Global Growth Portfolio............................... 8.93 5.17
Global Income Portfolio............................... 8.94 7.52
Additionally, two graphs were adjusted as follows:
<TABLE>
GLOBAL INCOME PORTFOLIO
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
PORTFOLIO AND THE SALOMON BROTHERS WORLD GOVERNMENT BOND INDEX
<CAPTION>
5/1/88 12/31/88 12/31/89 12/31/90 12/31/91 12/31/92 12/31/93 12/31/94
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Global Income Portfolio $10,000 $10,670 $11,396 $13,096 $14,451 $14,636 $17,068 $16,146
Salomon Brothers World
Government Bond Index $10,000 $10,271 $10,715 $11,999 $13,896 $14,665 $16,611 $17,000
</TABLE>
BALANCED PORTFOLIO
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE PORTFOLIO AND THE S&P 500 STOCK INDEX
11/2/93 12/31/93 12/31/94
Balanced Portfolio $10,000 $9,300 $9,576
S&P 500 Stock Index $10,000 $10,037 $10,173
70
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
MONEY MARKET PORTFOLIO
-------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 1995 --------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
------------- ------- ------- ------- ------- ------
<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
------ ------- ------- ------- ------- ------
Income from investment operations:
Net investment income................. 0.03 0.03 0.02 0.03 0.05 0.05
------ ------- ------- ------- ------- ------
Total income from investment
operations........................... 0.03 0.03 0.02 0.03 0.05 0.05
------ ------- ------- ------- ------- ------
Less dividends from net investment
income............................... (0.03) (0.03) (0.02) (0.03) (0.05) (0.05)
------ ------- ------- ------- ------- ------
Net asset value, end of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------- ------- ------- ------- ------
------ ------- ------- ------- ------- ------
Total return(1)........................ 2.63% 3.43% 2.45% 3.00% 5.00% 5.00%
------ ------- ------- ------- ------- ------
------ ------- ------- ------- ------- ------
Ratios/Supplemental Data:
Net assets, end of period (000's)... $27,796 $25,042 $15,468 $19,383 $20,249 $8,720
Expenses to average net assets**.... 0.82%* 0.88% 0.86% 0.81% 1.00% 2.02%
Net investment income to average net
assets**.......................... 5.31%* 3.56% 2.43% 3.13% 4.92% 6.13%
</TABLE>
------------
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported.
* Annualized.
** During certain periods presented above, Mitchell Hutchins agreed to
reimburse the Portfolio for all of its operating expenses and waived all or
a portion of its advisory fee. If such reimbursements and waivers had not
been made, the annualized ratio of expenses to average net assets and the
annualized ratio of net investment income to average net assets would have
been 2.04% and 6.11%, respectively, for the year ended December 31, 1990.
71
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Highlights--(continued)
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
GROWTH PORTFOLIO
--------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 1995 ---------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 14.56 $ 18.06 $ 15.68 $ 14.92 $ 10.57 $ 11.66
------ ------- ------- ------- ------- -------
Income from investment operations:
Net investment income.............. 0.02 0.01 -- 0.11 0.10 0.14
Net realized and unrealized gains
(losses) from investment
transactions..................... 1.77 (2.13) 3.08 0.76 4.35 (1.09)
------ ------- ------- ------- ------- -------
Total income (loss) from investment
operations.......................... 1.79 (2.12) 3.08 0.87 4.45 (0.95)
------ ------- ------- ------- ------- -------
Less dividends and distributions from:
Net investment income.............. -- (0.01) -- (0.11) (0.10) (0.14)
Net realized gains on
investments...................... -- (1.37) (0.70) -- -- --
------ ------- ------- ------- ------- -------
Total dividends and distributions..... -- (1.38) (0.70) (0.11) (0.10) (0.14)
------ ------- ------- ------- ------- -------
Net asset value, end of period........ $ 16.35 $ 14.56 $ 18.06 $ 15.68 $ 14.92 $ 10.57
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Total return(1)....................... 12.29% (11.65)% 19.61% 5.83% 42.10% (8.15)%
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Ratios/Supplemental Data:
Net assets, end of period
(000's).......................... $45,157 $39,135 $51,696 $46,479 $37,470 $12,283
Expenses to average net assets**... 1.07%* 1.00% 0.92% 0.94% 1.13% 1.85%
Net investment income to average
net assets**..................... 0.24%* 0.04% 0.00% 0.78% 1.07% 1.90%
Portfolio turnover................. 13% 27% 35% 29% 28% 35%
</TABLE>
------------
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported.
* Annualized.
** During certain periods presented above, Mitchell Hutchins agreed to
reimburse the Portfolio for a portion of its operating expenses and waived
all or a portion of its advisory fee. If such reimbursements and waivers had
not been made, the annualized ratio of expenses to average net assets and
the annualized ratio of net investment income to average net assets would
have been 1.91% and 1.84%, respectively, for the year ended December 31,
1990.
72
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Highlights--(continued)
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
GLOBAL GROWTH PORTFOLIO
--------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 1995 ---------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 12.44 $ 14.97 $ 11.10 $ 12.06 $ 11.76 $ 11.43
------ ------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss)....... 0.10 (0.03) 0.03 0.10 0.23 0.19
Net realized and unrealized gains
(losses) from investment
transactions..................... (0.79) (1.76) 4.42 (1.01) 0.35 0.67
------ ------- ------- ------- ------- -------
Total income (loss) from investment
operations.......................... (0.69) (1.79) 4.45 (0.91) 0.58 0.86
------ ------- ------- ------- ------- -------
Less dividends and distributions from:
Net investment income.............. -- (0.01) -- (0.05) (0.23) (0.19)
Net realized gains on
investments...................... -- (0.73) (0.58) -- (0.05) (0.34)
------ ------- ------- ------- ------- -------
Total dividends and distributions..... -- (0.74) (0.58) (0.05) (0.28) (0.53)
------ ------- ------- ------- ------- -------
Net asset value, end of period........ $ 11.75 $ 12.44 $ 14.97 $ 11.10 $ 12.06 $ 11.76
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Total return (1)...................... (5.55)% (11.94)% 40.02% (7.55)% 4.93% 7.53%
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Ratios/Supplemental Data:
Net assets, end of period
(000's).......................... $34,742 $40,493 $38,035 $21,493 $24,308 $16,149
Expenses to average net assets**... 1.51%* 1.48% 1.40% 1.46% 1.53% 2.07%
Net investment income (loss) to
average net assets**............. 1.61%* (0.13)% 0.38% 0.82% 2.12% 3.29%
Portfolio turnover................. 131% 175% 267% 127% 89% 120%
</TABLE>
------------
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported.
* Annualized.
** During certain periods presented above, Mitchell Hutchins agreed to
reimburse the Portfolio for a portion of its operating expenses and waived
all or a portion of its advisory fee. If such reimbursements and waivers had
not been made, the annualized ratio of expenses to average net assets and
the annualized ratio of net investment income to average net assets would
have been 2.19% and 3.17%, respectively, for the year ended December 31,
1990.
73
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Highlights--(continued)
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
GLOBAL INCOME PORTFOLIO
--------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 1995 ---------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 10.88 $ 11.72 $ 11.17 $ 11.65 $ 11.16 $ 10.19
------ ------- ------- ------- ------- -------
Income from investment operations:
Net investment income.............. 0.58 0.97 0.96 0.80 0.75 0.52
Net realized and unrealized gains
(losses) from investment
transactions..................... 0.16 (1.60) 0.90 (0.65) 0.40 1.00
------ ------- ------- ------- ------- -------
Total income (loss) from investment
operations.......................... 0.74 (0.63) 1.86 0.15 1.15 1.52
------ ------- ------- ------- ------- -------
Less dividends and distributions
from/in:
Net investment income.............. -- (0.21) (0.94) (0.56) (0.65) (0.52)
Excess of net investment income.... -- -- (0.16) -- -- --
Net realized gains on
investments...................... -- -- (0.21) (0.07) (0.01) (0.03)
------ ------- ------- ------- ------- -------
Total dividends and distributions..... -- (0.21) (1.31) (0.63) (0.66) (0.55)
------ ------- ------- ------- ------- -------
Net asset value, end of period........ $ 11.62 $ 10.88 $ 11.72 $ 11.17 $ 11.65 $ 11.16
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Total return (1)...................... 6.80% (5.56)% 16.65% 1.29% 10.30% 14.92%
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Ratios/Supplemental Data:
Net assets, end of period
(000's).......................... $48,232 $52,688 $64,610 $63,172 $51,988 $30,778
Expenses to average net assets**... 1.65%* 1.17% 0.98% 1.07% 1.20% 1.72%
Net investment income to average
net assets**..................... 6.93%* 7.23% 7.47% 7.20% 7.59% 8.64%
Portfolio turnover................. 65% 97% 69% 75% 14% 110%
</TABLE>
------------
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported.
* Annualized.
** During certain periods presented above, Mitchell Hutchins agreed to
reimburse the Portfolio for a portion of its operating expenses and waived
all or a portion of its advisory fee. If such reimbursements and waivers had
not been made, the annualized ratio of expenses to average net assets and
the annualized ratio of net investment income to average net assets would
have been 1.75% and 8.61%, respectively, for the year ended December 31,
1990.
74
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Highlights--(continued)
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
GOVERNMENT PORTFOLIO
-------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 1995 --------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
------------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ 10.34 $ 11.93 $ 11.58 $ 11.61 $ 10.49 $10.17
------ ------- ------- ------- ------- ------
Income from investment operations:
Net investment income............... 0.38 0.85 0.87 0.74 0.47 0.45
Net realized and unrealized gains
(losses) from investment
transactions...................... 0.75 (1.49) 0.48 0.05 1.12 0.32
------ ------- ------- ------- ------- ------
Total income (loss) from investment
operations........................... 1.13 (0.64) 1.35 0.79 1.59 0.77
------ ------- ------- ------- ------- ------
Less dividends and distributions from:
Net investment income............... -- (0.85) (0.87) (0.74) (0.47) (0.45)
Net realized gains on investments... -- (0.10) (0.13) (0.08) -- --
------ ------- ------- ------- ------- ------
Total dividends and distributions...... -- (0.95) (1.00) (0.82) (0.47) (0.45)
------ ------- ------- ------- ------- ------
Net asset value, end of period......... $ 11.47 $ 10.34 $ 11.93 $ 11.58 $ 11.61 $10.49
------ ------- ------- ------- ------- ------
------ ------- ------- ------- ------- ------
Total return (1)....................... 10.93% (5.34)% 11.66% 6.76% 15.17% 7.58%
------ ------- ------- ------- ------- ------
------ ------- ------- ------- ------- ------
Ratios/Supplemental Data:
Net assets, end of period (000's)... $18,861 $17,020 $22,354 $24,103 $15,690 $5,192
Expenses to average net assets**.... 0.92%* 0.89% 0.79% 0.76% 1.25% 1.55%
Net investment income to average net
assets**.......................... 6.67%* 6.64% 6.13% 6.59% 6.43% 6.80%
Portfolio turnover.................. 75% 54% 8% 23% 1% 66%
</TABLE>
------------
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported.
* Annualized.
** During certain periods presented above, Mitchell Hutchins agreed to
reimburse the Portfolio for a portion of its operating expenses and waived
all or a portion of its advisory fee. If such reimbursements and waivers had
not been made, the annualized ratio of expenses to average net assets and
the annualized ratio of net investment income to average net assets would
have been 1.28% and 6.40%, 3.14% and 5.20%, respectively, for the years
ended December 31, 1991 and 1990.
75
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Highlights--(continued)
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
ASSET ALLOCATION PORTFOLIO
--------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 1995 ---------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 9.54 $ 11.95 $ 11.63 $ 11.39 $ 9.99 $ 10.37
------ ------- ------- ------- ------- -------
Income from investment operations:
Net investment income.............. 0.18 0.30 0.33 0.35 0.47 0.65
Net realized and unrealized gains
(losses) from investment
transactions..................... 1.22 (1.44) 1.48 0.24 1.40 (0.38)
------ ------- ------- ------- ------- -------
Total income (loss) from investment
operations.......................... 1.40 (1.14) 1.81 0.59 1.87 0.27
------ ------- ------- ------- ------- -------
Less dividends and distributions from:
Net investment income.............. -- (0.30) (0.33) (0.35) (0.47) (0.65)
Net realized gains on
investments...................... -- (0.97) (1.16) -- -- --
------ ------- ------- ------- ------- -------
Total dividends and distributions..... -- (1.27) (1.49) (0.35) (0.47) (0.65)
------ ------- ------- ------- ------- -------
Net asset value, end of period........ $ 10.94 $ 9.54 $ 11.95 $ 11.63 $ 11.39 $ 9.99
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Total return (1)...................... 14.68% (9.59)% 15.76% 5.18% 18.73% 2.63%
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Ratios/Supplemental Data:
Net assets, end of period
(000's).......................... $27,058 $23,263 $33,367 $38,583 $33,327 $25,681
Expenses to average net assets**... 1.12%* 1.03% 0.95% 0.93% 0.94% 1.48%
Net investment income to average
net assets**..................... 3.37%* 2.30% 2.27% 3.11% 4.64% 5.71%
Portfolio turnover................. 62% 112% 60% 31% 101% 169%
</TABLE>
------------
(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.
* Annualized.
** During certain periods presented above, Mitchell Hutchins agreed to
reimburse the Portfolio for a portion of its operating expenses and waived
all or a portion of its advisory fee. If such reimbursements and waivers had
not been made, the annualized ratio of expenses to average net assets and
the annualized ratio of net investment income to average net assets would
have been 1.50% and 5.69%, respectively, for the year ended December 31,
1990.
76
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Highlights--(continued)
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
DIVIDEND GROWTH PORTFOLIO
-------------------------------------------------------------
FOR THE SIX
MONTHS FOR THE YEARS ENDED FOR THE PERIOD
ENDED DECEMBER 31, JANUARY 2, 1992+
JUNE 30, 1995 ----------------------- TO DECEMBER 31,
(UNAUDITED) 1994 1993 1992
------------- ------- ------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period..................... $ 9.16 $ 9.87 $ 10.26 $ 10.00
------ ------- ------- ------
Income from investment
operations:
Net investment income..... 0.04 0.10 0.16 0.08
Net realized and
unrealized gains
(losses) from investment
transactions............ 1.41 (0.71) (0.39) 0.26
------ ------- ------- ------
Total income (loss) from
investment operations...... 1.45 (0.61) (0.23) 0.34
------ ------- ------- ------
Less dividends from net
investment income.......... -- (0.10) (0.16) (0.08)
------ ------- ------- ------
Net asset value, end of
period..................... $ 10.61 $ 9.16 $ 9.87 $ 10.26
------ ------- ------- ------
------ ------- ------- ------
Total return (1)............. 15.83% (6.18)% (2.26)% 3.40%
------ ------- ------- ------
------ ------- ------- ------
Ratios/Supplemental Data:
Net assets, end of period
(000's)................. $12,845 $12,872 $16,281 $20,037
Expenses to average net
assets.................. 1.45%* 1.35% 1.12% 1.29%*
Net investment income to
average net assets...... 0.87%* 1.06% 1.37% 1.21%*
Portfolio turnover........ 54% 150% 52% 14%
</TABLE>
------------
+ Commencement of operations.
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported. Total returns for
periods less than one year are not annualized.
* Annualized.
77
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Highlights--(continued)
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
----------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR FOR THE PERIOD
JUNE 30,1995 ENDED NOVEMBER 2, 1993+
(UNAUDITED) DECEMBER 31, 1994 TO DECEMBER 31, 1993
------------- ----------------- --------------------
<S> <C> <C> <C>
Net asset value, beginning of
period........................... $ 9.65 $ 9.95 $10.00
------------- ------- -------
Income from investment operations:
Net investment income........... 0.03 0.01 0.01
Net realized and unrealized
gains (losses) from investment
transactions.................. 1.43 (0.30) (0.05)
------------- ------- -------
Total income (losses) from
investment operations............ 1.46 (0.29) (0.04)
------------- ------- -------
Less dividends from net investment
income........................... -- (0.01) (0.01)
------------- ------- -------
Net asset value, end of period..... $ 11.11 $ 9.65 $ 9.95
------------- ------- -------
------------- ------- -------
Total return (1)................... 15.13% (2.90)% (0.36)%
------------- ------- -------
------------- ------- -------
Ratios/Supplemental Data:
Net assets, end of period
(000's)....................... $16,567 $13,600 $2,814
Expenses to average net
assets**...................... 1.26%* 1.59% 0.00%
Net investment income to average
net assets**.................. 0.52%* 0.07% 3.31%*
Portfolio turnover.............. 53% 90% 0%
</TABLE>
------------
+ Commencement of operations.
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported. Total returns for
periods less than one year are not annualized.
* Annualized.
** During the period ended December 31, 1993, Mitchell Hutchins agreed to
reimburse the Portfolio for all of its operating expenses and waived all or
a portion of its advisory fee. If such reimbursements and waivers had not
been made, the annualized ratio of expenses to average net assets and the
annualized ratio of net investment income (loss) to average net assets would
have been 12.28% and (8.97)%, respectively.
78
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Highlights--(continued)
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
BALANCED PORTFOLIO
---------------------------------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE YEAR NOVEMBER 2, 1993+
JUNE 30, 1995 ENDED TO DECEMBER 31,
(UNAUDITED) DECEMBER 31, 1994 1993
------------- ----------------- -------------------
<S> <C> <C> <C>
Net asset value, beginning of
period...................... $ 9.47 $ 9.89 $ 10.00
------ ------ ------
Income from investment
operations:
Net investment income...... 0.07 0.09 0.01
Net realized and unrealized
gains (losses) from
investment
transactions............. 1.43 (0.42) (0.11)
------ ------ ------
Total income (losses) from
investment operations....... 1.50 (0.33) (0.10)
------ ------ ------
Less dividends from net
investment income........... -- (0.09) (0.01)
------ ------ ------
Net asset value, end of
period...................... $ 10.97 $ 9.47 $ 9.89
------ ------ ------
------ ------ ------
Total return (1).............. 15.84% (3.31)% (0.97)%
------ ------ ------
------ ------ ------
Ratios/Supplemental Data:
Net assets, end of period
(000's).................. $15,491 $12,045 $ 2,262
Expenses to average net
assets**................. 1.17%* 1.56% 0.00%
Net investment income to
average net assets**..... 1.41%* 1.24% 2.92%*
Portfolio turnover......... 64% 36% 0%
</TABLE>
------------
+ Commencement of operations.
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported. Total returns for
periods less than one year are not annualized.
* Annualized.
** During the period ended December 31, 1993, Mitchell Hutchins agreed to
reimburse the Portfolio for all of its operating expenses and waived all or
a portion of its advisory fee. If such reimbursements and waivers had not
been made, the annualized ratio of expenses to average net assets and the
annualized ratio of net investment income (loss) to average net assets would
have been 15.95% and (13.03)%, respectively.
79
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Financial Hightlights--(concluded)
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE><CAPTION>
FIXED INCOME PORTFOLIO
---------------------------------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE YEAR NOVEMBER 8, 1993+
JUNE 30, 1995 ENDED TO DECEMBER 31,
(UNAUDITED) DECEMBER 31, 1994 1993
------------- ----------------- -------------------
<S> <C> <C> <C>
Net asset value, beginning of
period...................... $ 8.71 $ 9.61 $ 10.00
------ ------ ------
Income from investment
operations:
Net investment income...... 0.26 0.26 0.02
Net realized and unrealized
gains (losses) from
investment
transactions............. 0.48 (0.89) (0.39)
------ ------ ------
Total income (losses) from
investment operations....... 0.74 (0.63) (0.37)
------ ------ ------
Less dividends from net
investment income........... -- (0.27) (0.02)
------ ------ ------
Net asset value, end of
period...................... $ 9.45 $ 8.71 $ 9.61
------ ------ ------
------ ------ ------
Total return (1).............. 8.50% (6.56)% (3.73)%
------ ------ ------
------ ------ ------
Ratios/Supplemental Data:
Net assets, end of period
(000's).................. $ 9,879 $ 7,638 $ 1,480
Expenses to average net
assets**................. 0.97%* 1.56% 0.00%
Net investment income to
average net assets**..... 5.66%* 4.61% 3.90%*
Portfolio turnover......... 25% 36% 0%
</TABLE>
------------
+ Commencement of operations.
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported. Total returns for
periods less than one year are not annualized.
* Annualized.
** During the period ended December 31, 1993, Mitchell Hutchins agreed to
reimburse the Portfolio for all of its operating expenses and waived all or
a portion of its advisory fee. If such reimbursements and waivers had not
been made, the annualized ratio of expenses to average net assets and the
annualized ratio of net investment income (loss) to average net assets would
have been 23.52% and (19.62)%, respectively.
80
<PAGE>
PaineWebber Series Trust
--------------------------------------------------------------------------------
Shareholder Information
--------------------------------------------------------------------------------
A special meeting of shareholders of the Balanced Portfolio of PaineWebber
Series Trust was held on January 26, 1995. At the meeting a new investment
subadvisory contract between Mitchell Hutchins and Provident Investment Counsel
with respect to the assets of the Balanced Portfolio was approved.
The votes were as follows:
SHARES SHARES VOTED SHARES WITHHOLD
VOTED FOR AGAINST AUTHORITY
--------- ------------- ------------------
1,121,874 48,546 57,349
A special meeting of shareholders of the Global Growth Portfolio of
PaineWebber Series Trust was held on June 8, 1995. At the meeting a new
investment subadvisory contract between Mitchell Hutchins and GE Investment
Management Incorporated with respect to the Global Growth Portfolio was
approved.
The votes were as follows:
SHARES SHARES VOTED SHARES WITHHOLD
VOTED FOR AGAINST AUTHORITY
--------- ------------- ------------------
2,563,975 126,809 398,633
81
<PAGE>
[LOGO]
(C) 1995 PAINEWEBBER INCORPORATED 931227-1114
(R) REGISTERED TRADEMARK OF PAINEWEBBER INCORPORATED. U351
811 0060 0895
