<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
RECENT PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN/1/
-------------------------- -----------------------------
12 MONTHS 6 MONTHS
04/30/96 10/31/95 04/30/95 ENDED 04/30/96 ENDED 04/30/96
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $10.24 $10.35 $10.23 8.02% 2.78%
- -------------------------------------------------------------------------
Class B Shares 10.21 10.31 10.20 7.16 2.45
- -------------------------------------------------------------------------
Class C Shares* 10.23 10.33 10.22 7.44 2.59
- -------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------
PERIOD CAPITAL GAINS DIVIDENDS PAID FROM TOTAL
COVERED BEGINNING ENDING DISTRIBUTED PAID CAPITAL RETURN/1/
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
07/01/91 -
12/31/91 $10.40 $11.05 $0.0100 $0.4800 -- 11.11%
- --------------------------------------------------------------------------
1992 11.05 10.42 0.1644 0.6029 -- 1.22
- --------------------------------------------------------------------------
1993 10.42 10.97 0.1445 0.7486 -- 14.16
- --------------------------------------------------------------------------
1994 10.97 9.90 0.0009 0.3213 $0.3178 (3.89)
- --------------------------------------------------------------------------
1995 9.90 10.44 -- 0.7325 -- 13.20
- --------------------------------------------------------------------------
01/01/96 -
04/30/96 10.44 10.24 -- 0.2489 -- 0.47
- --------------------------------------------------------------------------
Totals: $0.3198 $3.1342 $0.3178
- --------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/96: 40.35%
- --------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------
PERIOD CAPITAL GAINS DIVIDENDS PAID FROM TOTAL
COVERED BEGINNING ENDING DISTRIBUTED PAID CAPITAL RETURN/1/
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
03/20/87 -
12/31/87 $10.00 $10.86 $0.1800 $0.6647 -- 17.58%
- --------------------------------------------------------------------------
1988 10.86 10.64 0.1489 1.3436 -- 12.15
- --------------------------------------------------------------------------
1989 10.64 10.25 -- 0.9200 -- 5.44
- --------------------------------------------------------------------------
1990 10.25 10.87 -- 1.1300 -- 17.72
- --------------------------------------------------------------------------
1991 10.87 11.05 0.0100 0.7300 -- 10.75
- --------------------------------------------------------------------------
1992 11.05 10.41 0.1644 0.5214 -- 0.38
- --------------------------------------------------------------------------
1993 10.41 10.96 0.1445 0.6689 -- 13.36
- --------------------------------------------------------------------------
1994 10.96 9.87 0.0009 0.2852 $0.2810 (4.77)
- --------------------------------------------------------------------------
1995 9.87 10.41 -- 0.6538 -- 12.39
- --------------------------------------------------------------------------
01/01/96 -
04/30/96 10.41 10.21 -- 0.2234 -- 0.23
- --------------------------------------------------------------------------
Totals: $0.6487 $7.1410 $0.2810
- --------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/96: 127.09%
- --------------------------------------------------------------------------
</TABLE>
Performance Summary Class C Shares*
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------
PERIOD CAPITAL GAINS DIVIDENDS PAID FROM TOTAL
COVERED BEGINNING ENDING DISTRIBUTED PAID CAPITAL RETURN/1/
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
07/02/92 -
12/31/92 $10.94 $10.42 $0.1644 $0.3744 -- 0.10%
- --------------------------------------------------------------------------
1993 10.42 10.97 0.1445 0.6973 -- 13.64
- --------------------------------------------------------------------------
1994 10.97 9.89 0.0009 0.2978 $0.2938 (4.43)
- --------------------------------------------------------------------------
1995 9.89 10.42 -- 0.6801 -- 12.54
- --------------------------------------------------------------------------
01/01/96 -
04/30/96 10.42 10.23 -- 0.2318 -- 0.40
- --------------------------------------------------------------------------
Totals: $0.3098 $2.2814 $0.2938
- --------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/96: 22.84%
- --------------------------------------------------------------------------
</TABLE>
* Formerly Class D shares
/1/ Figures/assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable dates, and do not include
sales charges; results for each class would be lower if sales charges were
included.
1
<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
PERFORMANCE RESULTS (UNAUDITED) (CONCLUDED)
Average Annual Return
<TABLE>
<CAPTION>
% RETURN AFTER DEDUCTING
% RETURN WITHOUT SALES CHARGE MAXIMUM SALES CHARGE
----------------------------- --------------------------
CLASS CLASS
----------------------------- --------------------------
A* B** C*** A* B** C***
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months Ended
03/31/96 8.47% 7.58% 7.90% 4.13% 2.58% 7.15%
- -------------------------------------------------------------------------------
Five Years Ended
03/31/96 N/A 6.37 N/A N/A 6.06 N/A
- -------------------------------------------------------------------------------
Commencement of
Operations Through
03/31/96+ 7.26 9.43 5.48 6.35 9.43 5.48
- -------------------------------------------------------------------------------
</TABLE>
* Maximum sales charge for Class A shares is 4.0% of the public offering
price. Class A shares bear ongoing 12b-1 service fees.
** Maximum contingent deferred sales charge for Class B shares is 5% and is
reduced to 0% after 6 years. Class B shares bear ongoing 12b-1 distribution
and service fees.
*** Maximum contingent deferred sales charge for Class C shares (formerly Class
D shares) is 0.75% and is reduced to 0% after 1 year. Class C shares bear
ongoing 12b-1 distribution and service fees.
+ Commencement of operations dates are July 1, 1991, March 20, 1987 and July
2, 1992 for Class A, Class B and Class C, respectively.
The data above represents past performance of the Fund's shares, which is no
guarantee of future results. The principal value of an investment in the
Fund will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
Note: The Fund offers Class Y (formerly Class C) shares to the INSIGHT
Investment Advisory Program and to the trustees of the PaineWebber
Savings Investment Plan. For the six months ended April 30, 1996 and
since inception, August 26, 1991 through April 30, 1996, Class Y shares
had a total return of 3.06% and 40.49%, respectively. For the twelve
months ended March 31, 1996 and for the period since inception through
March 31, 1996, Class Y shares have an average annual return of 8.76% and
7.53%, respectively. Class Y shares do not have initial or contingent
deferred sales charges or ongoing distribution and service fees.
2
<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
---------- -------------------- ---------------- -----------
LONG-TERM DEBT SECURITIES - 70.18%
<C> <S> <C> <C> <C>
AUSTRALIA - 7.58%
51,600 New South Wales Treasury
Corporation............ 12/01/01 to 05/01/06 6.500 to 12.000% $42,028,462
46,650 Queensland Treasury
Corporation Global
Issue.................. 08/15/01 to 06/14/05 6.500 to 12.000 37,800,071
-----------
79,828,533
-----------
CANADA - 6.33%
41,355 Government of Canada.... 09/01/99 to 06/01/23 7.750 to 8.000 30,695,033
67,638 Ontario Hydro Global.... 04/11/07 to 04/11/11 10.502 to 10.551@ 16,690,063
37,025 Province of British
Columbia Residual...... 01/09/12 9.061 to 9.155@ 7,100,368
14,500 Province of Ontario..... 01/10/01 10.875 12,183,835
-----------
66,669,299
-----------
DENMARK - 4.77%
279,092 Government of Denmark... 05/15/03 to 03/15/06 8.000 50,188,172
-----------
FRANCE - 1.74%
83,000 Government of France.... 04/25/03 8.500 18,278,204
-----------
GERMANY - 9.77%
147,057 Federal Republic of
Germany................ 07/22/02 to 01/04/24 6.250 to 8.000 102,880,233
-----------
IRELAND - 1.69%
10,275 Republic of Ireland..... 11/15/97 to 07/11/03 9.250 to 11.500 17,802,297
-----------
ITALY - 3.66%
62,850,000 Republic of Italy....... 04/01/04 to 02/01/06 8.500 to 9.500 38,535,143
-----------
NEW ZEALAND - 3.16%
50,643 Government of New
Zealand................ 02/15/00 to 03/15/02 6.500 to 10.000 33,241,602
-----------
SPAIN - 6.44%
7,941,530 Government of Spain..... 08/30/98 to 01/31/06 10.150 to 12.250 67,807,213
-----------
UNITED KINGDOM - 6.83%
40,995 United Kingdom Gilt..... 09/30/98 to 02/26/01 10.000 to 15.500 71,940,131
-----------
UNITED STATES - 18.21%
18,000 Chase Manhattan
Corporation............ 12/01/97 7.500 18,339,228
16,000 Clorox Corporation...... 07/15/01 8.800 17,270,672
15,000 Ford Motor Credit
Corporation............ 07/01/01 9.500 16,564,740
141,142 United States Treasury
Notes.................. 10/31/97 to 02/28/01 5.625 139,658,527
-----------
191,833,167
-----------
TOTAL LONG-TERM DEBT SECURITIES
(cost - $750,432,930)............... 739,003,994
-----------
</TABLE>
3
<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
---------- -------------------- ----------------- --------------
SHORT-TERM DEBT SECURITIES - 23.90%
<C> <S> <C> <C> <C>
AUSTRALIA - 3.00%
22,005 Government of Australia
Treasury Bills......... 10/17/96 7.500@% $ 16,702,624
18,200 New South Wales Treasury
Corporation............ 04/01/97 12.500 14,885,904
--------------
31,588,528
--------------
ITALY - 2.19%
35,900,488 Swiss Bank Corp. TD..... 05/27/96 to 08/22/96 9.813 to 10.000 23,038,005
--------------
NEW ZEALAND - 1.66%
25,000 Government of New
Zealand................ 10/15/96 14.000 17,496,211
--------------
POLAND - 2.86%
90,900 Government of Poland
Treasury Bills......... 08/07/96 to 04/23/97 20.906 to 21.400@ 30,063,772
--------------
UNITED STATES - 14.19%
50,000 General Motors
Acceptance Corporation
MTN.................... 07/15/96 to 04/30/97 7.950 to 8.625 50,425,505
29,000 United States Treasury
Bills.................. 05/02/96 5.070@ 28,995,940
69,200 United States Treasury
Notes.................. 12/31/96 7.500 70,086,452
--------------
149,507,897
--------------
TOTAL SHORT-TERM DEBT SECURITIES
(cost - $250,446,124)............. 251,694,413
--------------
REPURCHASE AGREEMENTS - 4.35%
30,000 Repurchase Agreement
dated 04/30/96, with
First Chicago Capital
Markets, Inc.,
collateralized by
$30,890,000 U.S.
Treasury Bills, due
07/05/96; proceeds:
$30,004,417............ 05/01/96 5.300 30,000,000
15,783 Repurchase Agreement
dated 04/30/96, with
Salomon Brothers Inc.,
collateralized by
$15,993,000 U.S.
Treasury Notes 6.875%
due 10/31/96; proceeds:
$15,785,302............ 05/01/96 5.250 15,783,000
--------------
TOTAL REPURCHASE AGREEMENTS (cost -
$45,783,000)....................... 45,783,000
--------------
Total Investments (cost -
$1,046,662,054) - 98.43%........... 1,036,481,407
Other assets in excess of
liabilities - 1.57%................ 16,496,386
--------------
Net Assets - 100.00%................ $1,052,977,793
==============
</TABLE>
- -------
Note: The Portfolio of Investments is listed by the issuer's country of origin.
* In local currency unless otherwise indicated
@ Yield to Maturity
MTN Medium Term Note
TD Time Deposit
4
<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT TO IN EXCHANGE MATURITY APPRECIATION
DELIVER FOR DATES (DEPRECIATION)
-------------- ----------------- -------------------- --------------
<S> <C> <C> <C> <C>
Australian Dollars...... 35,680,781 US$ 26,831,947 05/20/96 $(1,166,452)
Australian Dollars...... 30,850,000 US$ 23,106,650 05/22/96 (1,097,330)
Australian Dollars...... 15,983,600 US$ 12,563,110 06/17/96 39,823
Australian Dollars...... 15,307,075 US$ 11,954,979 07/29/96 (12,240)
Belgian Francs.......... 1,770,721,789 US$ 59,910,547 06/04/96 to 09/30/96 3,439,349
Belgian Francs.......... 634,112,770 US$ 21,903,723 09/30/96 1,625,755
British Pounds.......... 14,822,000 US$ 22,766,592 05/31/96 486,301
British Pounds.......... 12,108,000 US$ 18,319,404 01/13/97 164,895
Canadian Dollars........ 19,403,600 US$ 14,272,075 02/24/97 13,669
Canadian Dollars........ 61,776,000 US$ 45,129,131 05/29/96 to 03/24/97 (258,619)
Danish Kronas........... 77,990,000 US$ 13,516,464 07/15/96 257,525
Finnish Markka.......... 116,652,106 US$ 25,751,017 02/24/97 1,351,885
Finnish Markka.......... 78,668,800 US$ 17,419,632 03/24/97 947,957
French Francs........... 159,200,000 US$ 31,624,071 05/07/96 830,407
German Deutschemarks.... 39,889,000 US$ 28,412,992 05/17/96 2,341,751
German Deutschemarks.... 36,500,000 US$ 24,356,228 07/12/96 398,374
Italian Lira............ 16,499,769,240 US$ 10,495,836 05/22/96 (46,847)
New Zealand Dollars..... 26,300,000 US$ 17,857,700 05/09/96 (185,417)
New Zealand Dollars..... 46,890,000 US$ 31,921,436 05/01/96 to 06/25/96 (188,196)
Spanish Pesetas......... 952,940,138 US$ 7,608,001 05/13/96 120,852
Spanish Pesetas......... 3,751,284,274 US$ 30,006,959 05/09/96 to 05/20/96 556,769
Spanish Pesetas......... 7,407,400,000 US$ 59,108,474 05/23/96 to 06/04/96 907,199
U.S. Dollars............ 28,224,146 BFR 849,721,789 06/04/96 (1,204,907)
U.S. Dollars............ 22,711,765 CAD 30,888,000 05/29/96 (20,856)
U.S. Dollars............ 27,477,576 DEM 39,889,000 05/17/96 (1,406,334)
U.S. Dollars............ 3,356,064 ESP 421,018,178 05/13/96 (45,883)
U.S. Dollars............ 27,771,551 ESP 3,480,000,000 06/04/96 (410,673)
U.S. Dollars............ 13,474,816 FRF 68,700,000 05/07/96 (187,386)
U.S. Dollars............ 11,883,889 NZD 17,300,000 05/01/96 (6,573)
-----------
$ 7,244,798
===========
</TABLE>
- -------
CURRENCY TYPE ABBREVIATIONS:
BFR - Belgian Francs
CAD - Canadian Dollars
DEM - German Deutschemarks
ESP - Spanish Pesetas
FRF - French Francs
NZD - New Zealand Dollars
<TABLE>
<CAPTION>
PERCENT OF NET ASSETS
INVESTMENTS BY TYPE OF ISSUER -------------------------
LONG-TERM SHORT-TERM
--------- -----------
<S> <C> <C>
Government and other public issuers............. 65.23% 16.92%
Repurchase Agreements........................... -- 4.35
Financial institutions.......................... 1.57 4.79
Banks........................................... 1.74 2.19
Other........................................... 1.64 --
-------- ---------
70.18% 28.25%
======== =========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
Assets
Investments in securities, at value (cost - $1,046,662,054).... $1,036,481,407
Cash denominated in foreign currencies, at value (cost -
$3,572,949).................................................. 3,553,170
Interest receivable............................................ 21,885,746
Unrealized appreciation on forward foreign currency contracts.. 13,482,511
Receivable for shares of beneficial interest sold.............. 60,402
Other assets................................................... 180,125
--------------
Total assets................................................... 1,075,643,361
--------------
Liabilities
Payable for investments purchased.............................. 8,970,123
Unrealized depreciation on forward foreign currency contracts.. 6,237,713
Payable for shares of beneficial interest repurchased.......... 4,962,097
Payable to affiliates.......................................... 1,192,000
Accrued expenses and other liabilities......................... 1,303,635
--------------
Total liabilities.............................................. 22,665,568
--------------
Net Assets
Beneficial interest shares of $0.001 par value outstanding
(unlimited amount authorized)................................. 1,092,899,213
Distributions in excess of net investment income............... (8,423,186)
Accumulated net realized losses from investment and foreign
currency transactions......................................... (28,214,232)
Net unrealized depreciation of investments, other assets,
liabilities and forward contracts denominated in foreign
currencies.................................................... (3,284,002)
--------------
Net assets..................................................... $1,052,977,793
==============
Class A:
Net assets..................................................... $ 568,656,270
--------------
Shares outstanding............................................. 55,521,559
--------------
Net asset value and redemption value per share................. $10.24
======
Maximum offering price per share (net asset value plus sales
charge of 4.00% of offering price)............................ $10.67
======
Class B:
Net assets..................................................... $ 411,816,041
--------------
Shares outstanding............................................. 40,318,015
--------------
Net asset value and offering price per share................... $10.21
======
Class C:
Net assets..................................................... $ 57,307,407
--------------
Shares outstanding............................................. 5,601,114
--------------
Net asset value and offering price per share................... $10.23
======
Class Y:
Net assets..................................................... $ 15,198,075
--------------
Shares outstanding............................................. 1,483,116
--------------
Net asset value, offering price and redemption value per share. $10.25
======
</TABLE>
See accompanying notes to financial statements
6
<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
Investment income:
Interest (net of foreign withholding taxes)........................ $45,067,604
-----------
Expenses:
Investment advisory and administration............................. 4,168,196
Service fees--Class A.............................................. 763,697
Service and distribution fees--Class B............................. 2,238,311
Service and distribution fees--Class C............................. 236,388
Transfer agency and service fees................................... 558,507
Custody and accounting............................................. 507,559
Reports and notices to shareholders................................ 210,613
Legal and audit fees............................................... 133,202
State registration fees............................................ 61,707
Trustees' fees..................................................... 11,810
Other expenses..................................................... 76,232
-----------
8,966,222
-----------
Net investment income.............................................. 36,101,382
-----------
Realized and unrealized gains (losses) from investment transac-
tions:
Net realized gains from:
Investment transactions........................................... 11,565,503
Foreign currency transactions..................................... 3,018,707
Net change in unrealized appreciation/depreciation of:
Investments....................................................... (32,438,751)
Other assets, liabilities and forward contracts denominated in
foreign currencies............................................... 12,955,345
-----------
Net realized and unrealized losses from investment transactions.... (4,899,196)
-----------
Net increase in net assets resulting from operations............... $31,202,186
===========
</TABLE>
See accompanying notes to financial statements
7
<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
APRIL 30, 1996 ENDED
(UNAUDITED) OCTOBER 31, 1995
-------------- ----------------
<S> <C> <C>
From operations:
Net investment income.............................. $ 36,101,382 $ 89,739,771
Net realized gains (losses) from investment
transactions...................................... 11,565,503 (16,067,201)
Net realized gains (losses) from foreign currency
transactions...................................... 3,018,707 (954,350)
Net change gains in unrealized
appreciation/depreciation of investments.......... (32,438,751) 48,868,150
Net changes in unrealized appreciation/depreciation
of other assets, liabilities and forward contracts
denominated in foreign currencies................. 12,955,345 5,687,668
-------------- --------------
Net increase in net assets resulting from
operations........................................ 31,202,186 127,274,038
-------------- --------------
Dividends and distributions to shareholders from:
Net investment income--Class A..................... (23,571,527) (40,376,543)
Net investment income--Class B..................... (15,341,210) (35,685,366)
Net investment income--Class C..................... (2,248,256) (4,526,987)
Net investment income--Class Y..................... (641,172) (782,694)
-------------- --------------
(41,802,165) (81,371,590)
-------------- --------------
From beneficial interest transactions:
Net proceeds from the sale of shares............... 9,707,984 24,154,810
Proceeds from shares issued in connection with the
acquisition of Global Income Plus Fund, Inc. ..... -- 230,782,432
Proceeds from shares issued in connection with the
acquisition of Mitchell Hutchins/Kidder, Peabody
Global Fixed Income Fund.......................... -- 64,455,167
Cost of shares repurchased......................... (208,324,083) (625,332,239)
Proceeds from dividends reinvested................. 26,695,854 52,671,643
-------------- --------------
Net decrease in net assets from beneficial interest
transactions...................................... (171,920,245) (253,268,187)
-------------- --------------
Net decrease in net assets......................... (182,520,224) (207,365,739)
Net assets:
Beginning of period................................ 1,235,498,017 1,442,863,756
-------------- --------------
End of period ..................................... $1,052,977,793 $1,235,498,017
============== ==============
</TABLE>
See accompanying notes to financial statements
8
<PAGE>
PAINEWEBBER NOTES TO FINANCIAL STATEMENTS
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Investment Series ("Trust") was organized under
Massachusetts law by a Declaration of Trust dated December 22,
1986 and is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as
amended, as a non-diversified open-end management investment
company.
The Fund offers Class A, Class B, Class C and Class Y shares.
Class Y shares are offered for sale to participants in the
INSIGHT Investment Advisory Program and to the trustees of the
PaineWebber Savings Investment Plan on behalf of the Plan. Each
class of shares represents interests in the same assets of the
Fund and the classes are identical except for differences in
their sales charge structures, ongoing service/distribution
charges and certain transfer agency expenses. In addition,
Class B shares and all corresponding reinvested dividend shares
automatically convert to Class A shares approximately six years
after initial issuance. All classes of shares have equal rights
as to voting privileges, except that Class A, Class B and Class
C shares each have exclusive voting rights with respect to
their individual distribution plan.
The preparation of financial statements in accordance with
generally accepted accounting principles requires Fund
management to make estimates and assumptions that affect the
reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
Valuation of Investments -Securities which are listed on 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 valued on
the exchange designated as the primary market by Mitchell
Hutchins Asset Management Inc. ("Mitchell Hutchins"), an
affiliate and wholly owned subsidiary of PaineWebber
Incorporated ("PaineWebber") and investment advisor,
administrator and distributor of the Fund. 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 available sale 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 amortized cost method of
valuation generally is used to value short-term debt
instruments with sixty days or less remaining to maturity.
Securities and assets for which market quotations are not
readily available (including restricted securities subject to
limitations as to their sale) are valued at fair value as
determined in good faith by or under the direction of the
Trust's Board of Trustees. All investments quoted in foreign
currencies generally will be valued daily in U.S. dollars on
the basis of the foreign currency exchange rates prevailing at
the time such valuation is determined by the Fund's custodian.
9
<PAGE>
PAINEWEBBER
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 Fund's net asset value on
that day. If events occur materially affecting the value of
such securities or currency exchange rates during such time
period, the securities will be valued at their fair value as
determined in good faith by or under the direction of the
Trust's Board of Trustees.
Repurchase Agreements - The Fund's custodian takes possession
of the collateral pledged for investments in repurchase
agreements. The underlying collateral is valued daily on a mark
to-market basis to ensure that the value, including accrued
interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Fund has
the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. Under certain circumstances, in
the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may
be subject to legal proceedings. The Fund occasionally
participates in joint repurchase agreement transactions with
other funds managed by Mitchell Hutchins.
Investment Transactions and Investment Income - Investment
transactions are recorded on trade date. Realized gains and
losses from sales of investments and foreign exchange
transactions are calculated using the identified cost method.
Interest income is recorded on an accrual basis. Discounts are
accreted as adjustments to interest income and the identified
cost of investments.
Income, expenses (excluding class-specific expenses), and
realized/unrealized gains and losses are allocated
proportionately to each class of shares based upon the relative
net asset value of outstanding shares of each class at the
beginning of the day (after adjusting for current capital share
activity of the respective classes). Class-specific expenses
are charged directly to the applicable class of shares. Foreign
Currency Translation - The books and records of the Fund are
maintained in U.S. dollars.
Foreign currency amounts are translated into U.S. dollars on
the following basis:
(1) Market value of investment securities, other assets
and liabilities--at the exchange rates prevailing at the
end of the period.
(2) Purchases and sales of investment securities, income
and expenses--at the rates of exchange prevailing on the
respective dates of such transactions.
Although the net assets and the market values of the Fund are
presented at the foreign exchange rates at the end of the
period, the Fund does not generally
10
<PAGE>
PAINEWEBBER
isolate the effect of fluctuations in foreign exchange rates
from the effect of the changes in market prices of securities.
However, the Fund does isolate the effect of fluctuations in
foreign exchange rates when determining the gain or loss upon
the sale or maturity of foreign currency-denominated debt
obligations pursuant to U.S. federal income tax regulations.
Certain foreign exchange gains and losses included in realized
and unrealized gains and losses are included in or are a
reduction of ordinary income in accordance with federal income
tax regulations.
Forward Foreign Currency Contracts - The Fund may enter into
forward foreign currency exchange contracts ("forward
contracts") in connection with planned purchases or sales of
securities or to hedge the U.S. dollar value of portfolio
securities denominated in a particular currency.
The Fund has no specific limitation on the percentage of assets
which may be committed to such contracts. The Fund 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 Fund to deliver an amount of foreign currency
in excess of the value of the position being hedged by such
contracts or (2) the Fund maintains cash, U.S. government
securities or liquid, high-grade debt securities in a
segregated account in an amount not less than the value of its
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 with respect to entering into forward contracts
from the potential inability of counterparties to meet the
terms of their forward 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 Fund.
Realized gains and losses include net gains and losses
recognized by the Fund on contracts which have matured.
Dividends and Distributions - Dividends and distributions to
shareholders are recorded on the ex-dividend date.
Dividends from net investment income and distributions from
realized capital gains 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.
11
<PAGE>
PAINEWEBBER
ACQUISITIONS
Acquisition of Global Income Plus Fund, Inc. ("Global Income
Plus Fund") - On June 30, 1995, the Fund acquired all the net
assets of Global Income Plus Fund pursuant to a plan of
reorganization approved by the Global Income Plus Fund
shareholders on May 25, 1995. The acquisition was accomplished
by a tax-free exchange of 22,661,242 Class A shares of the Fund
for the 26,096,317 shares of Global Income Plus Fund
outstanding on June 30, 1995. Global Income Plus Fund's net
assets at that date, valued at $230,782,432, including
accumulated net realized losses of $5,949,592, net unrealized
appreciation on investments of $5,094,121 and net unrealized
foreign exchange losses of $1,867,298, were combined with those
of the Fund.
Acquisition of Mitchell Hutchins/Kidder, Peabody Global Fixed
Income Fund ("MH/KP Global Fixed Income Fund") -On October 27,
1995, the Fund acquired all the net assets of MH/KP Global
Fixed Income Fund pursuant to a plan of reorganization approved
by MH/KP Global Fixed Income Fund shareholders on October 5,
1995. The acquisition was accomplished by tax free exchanges of
4,138,263 Class A, 776,391 Class C (currently Class Y) and
1,332,238 Class D shares (currently Class C) of the Fund for
3,520,765 Class A, 659,996 Class C and 1,131,249 Class B
shares, respectively, of MH/KP Global Fixed Income Fund
outstanding on October 27, 1995. MH/KP Global Fixed Income
Fund's net assets at that date, valued at $64,455,167,
including accumulated net realized losses of $2,407,711, net
unrealized appreciation of investments of $1,481,458 and net
unrealized F/X losses of $165,549, were combined with those of
the Fund.
CONCENTRATION OF RISK
Investing in securities of foreign issuers and currency
transactions may involve certain considerations and risks not
typically associated with investments in the United States.
These risks include revaluation of currencies, adverse
fluctuations in foreign currency values and possible adverse
political, social and economic developments, including those
particular to a specific industry, country or region, which
could cause the securities and their markets to be less liquid
and prices more volatile than those of comparable U.S.
companies and U.S. government securities. These risks are
greater with respect to securities of issuers located in
emerging market countries in which the Fund is authorized to
invest. The ability of the issuers of debt securities held by
the Fund to meet their obligations may be affected by economic
and political developments particular to specific industry,
country or region.
INVESTMENT ADVISER AND ADMINISTRATOR
The Fund has an Investment Advisory and Administration Contract
("Advisory Contract") with Mitchell Hutchins. In accordance
with the Advisory Contract, the
12
<PAGE>
PAINEWEBBER
Fund pays Mitchell Hutchins an investment advisory and administration fee, which
is accrued daily and paid monthly, in accordance with the following schedule:
<TABLE>
<CAPTION>
ANNUAL
AVERAGE DAILY NET ASSETS RATE
- ------------------------ ------
<S> <C>
Up to $500 million................................................... 0.750%
In excess of $500 million up to $1.0 billion......................... 0.725
In excess of $1.0 billion up to $1.5 billion......................... 0.700
In excess of $1.5 billion up to $2.0 billion......................... 0.675
Over $2.0 billion.................................................... 0.650
</TABLE>
At April 30, 1996, the Fund owed Mitchell Hutchins $643,285 for investment
advisory and administration fees.
In compliance with applicable state securities laws, Mitchell Hutchins will
reimburse the Fund if and to the extent that the aggregate operating expenses
in any fiscal year, exclusive of taxes, distribution fees, interest, brokerage
fees and extraordinary expenses, exceed limitations imposed by various state
regulations. Currently, the most restrictive limitation applicable to the Fund
is 2.5% of the first $30 million of average daily net assets, 2.0% of the next
$70 million and 1.5% of any excess over $100 million. For the six months ended
April 30, 1996, no reimbursements were required pursuant to the above
limitation for the Fund.
DISTRIBUTION PLANS
Mitchell Hutchins is the distributor of the Fund's shares and has appointed
PaineWebber as the exclusive dealer for the sale of those shares. Under
separate plans of distribution pertaining to the Class A, Class B and Class C
shares, the Fund pays Mitchell Hutchins monthly service fees at the annual rate
of 0.25% of the average daily net assets of Class A, Class B and Class C shares
and monthly distribution fees at the annual rates of 0.75% and 0.50% of the
average daily net assets of Class B and Class C shares, respectively. At April
30, 1996, the Fund owed Mitchell Hutchins $496,398 for service and distribution
fees.
Mitchell Hutchins also receives the proceeds of the initial sales charges paid
upon the purchase of Class A shares and the contingent deferred sales charge
paid upon certain redemptions of Class A, Class B and Class C shares. Mitchell
Hutchins has informed the Fund that for the six months ended April 30, 1996, it
received $587,614 in sales charges.
TRANSFER AGENCY SERVICE FEES
The Fund pays PaineWebber an annual fee of $4.00 per active PaineWebber
shareholder account for certain services not provided by the Fund's transfer
agent.
13
<PAGE>
PAINEWEBBER
For these services for the six months ended April 30, 1996, PaineWebber earned
$161,980 from the Fund. At April 30, 1996, the Fund owed PaineWebber $52,317
for service fees.
INVESTMENTS IN SECURITIES
For federal income tax purposes, the cost of securities owned at April 30, 1996
was substantially the same as the cost of securities for financial statement
purposes.
At April 30, 1996, the components of the net unrealized depreciation of
investments were as follows:
<TABLE>
<S> <C>
Gross depreciation (investments having an excess of cost over
value).......................................................... $(20,893,187)
Gross appreciation (investments having an excess of value over
cost)........................................................... 10,712,540
------------
Net unrealized depreciation of investments....................... $(10,180,647)
============
</TABLE>
For the six months ended April 30, 1996, total aggregate purchases and sales of
portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<S> <C>
Purchases.......................................................... $628,302,349
Sales.............................................................. $697,444,677
</TABLE>
FEDERAL INCOME TAX STATUS
The Fund intends to distribute substantially all of its taxable income and to
comply with the other requirements of the Internal Revenue Code applicable to
regulated investment companies. Accordingly, no provision for federal income
taxes is required. In addition, by distributing during each calendar year
substantially all of its net investment income, capital gains and certain other
amounts, if any, the Fund intends not to be subject to a federal excise tax.
At October 31, 1995, the Fund had available a capital loss carryforward of
$41,643,329 which expires as follows: $3,629,142 in 2001, $22,260,372 in 2002
and $15,753,815 in 2003. The capital loss carryforward includes capital losses
acquired by the Fund pursuant to its reorganizations with PaineWebber Short-
Term Global Income Fund (which was acquired by the Fund in fiscal 1993), Global
Income Plus Fund and MH/KP Global Fixed Income Fund in the amounts of
$1,285,400, $6,031,866 and $2,490,780, respectively.
14
<PAGE>
PAINEWEBBER
SHAREHOLDER INFORMATION
A Special Meeting of Shareholders was held on April 15, 1996, at which the
following proposals were approved for the Fund:
PROPOSAL 1
- ----------
<TABLE>
<CAPTION>
SHARES SHARES FOR AS SHARES
VOTED A % OF TOTAL WITHHOLD
TO VOTE FOR OR AGAINST THE ELECTION OF FOR SHARES VOTED AUTHORITY
TRUSTEES ---------- ------------- ---------
<S> <C> <C> <C>
Margo N. Alexander......................... 52,484,962 93.72% 3,517,962
Richard Q. Armstrong....................... 52,512,632 93.77% 3,490,292
E. Garrett Bewkes, Jr. .................... 52,454,097 93.66% 3,548,827
Richard Burt............................... 52,504,530 93.75% 3,498,394
Mary C. Farrell............................ 52,507,894 93.76% 3,495,030
Meyer Feldberg............................. 52,492,741 93.73% 3,510,183
George W. Gowen............................ 52,469,294 93.69% 3,533,630
Frederic V. Malek.......................... 52,477,558 93.71% 3,525,366
Carl W. Schafer............................ 52,494,125 93.73% 3,508,799
John R. Torell III......................... 52,509,251 93.76% 3,493,673
</TABLE>
PROPOSAL 2
- ----------
<TABLE>
<CAPTION>
SHARES SHARES FOR AS SHARES
VOTED A % OF TOTAL VOTED SHARES
FOR SHARES VOTED AGAINST ABSTAIN
---------- ------------- ------- ---------
<S> <C> <C> <C> <C>
To vote for or against the
ratification of the selection of
Price Waterhouse LLP as the Fund's
independent auditors for the fiscal
year ending October 31, 1996....... 52,465,797 93.68% 199,253 3,337,874
</TABLE>
15
<PAGE>
PAINEWEBBER
PROPOSAL 3
- ----------
<TABLE>
<CAPTION>
TO VOTE FOR OR AGAINST THE
FOLLOWING CHANGES TO THE FUND'S SHARES FOR
FUNDAMENTAL INVESTMENT RESTRICTIONS SHARES AS A % OF SHARES
AND POLICIES (THE ENUMERATION BELOW VOTED TOTAL SHARES VOTED SHARES
FOLLOWS THAT USED IN THE RELATED FOR VOTED AGAINST ABSTAIN
PROXY STATEMENT): ---------- ------------ ------- ---------
<C> <S> <C> <C> <C> <C>
1b. Modification of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on portfolio
diversification for non-
diversified funds
2. Modification of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on concentration
3. Modification of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on senior
securities and borrowing
4. Modification of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on making loans
5. Modification of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on underwriting
securities
6. Modification of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on real estate
investments
7. Modification of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on investing in
commodities
8. Elimination of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on margin
transactions
9. Elimination of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on short sales
10. Elimination of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on investments in
oil, gas and mineral leases
and programs
11. Elimination of fundamental 51,134,959 91.31% 845,404 4,022,561
restriction on investment in
other investment companies
</TABLE>
(Broker non-votes and abstentions are included within the "Shares Withhold
Authority" and "Shares Abstain" totals.)
16
<PAGE>
PAINEWEBBER
SHARES OF BENEFICIAL INTEREST
There are an unlimited amount of $0.001 par value shares of
beneficial interest authorized. Transactions in shares of
beneficial interest were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C* CLASS Y**
-------------------------- -------------------------- ------------------------ ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- ------------- ---------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED
APRIL 30, 1996:
Shares sold..... 297,891 $ 3,080,092 393,356 $ 4,065,103 154,726 $ 1,602,921 92,754 $ 959,868
Shares
repurchased.... (11,145,212) (115,321,043) (7,119,071) (73,372,362) (1,625,002) (16,792,973) (274,671) (2,837,705)
Dividends
reinvested..... 1,404,970 14,506,703 954,695 9,832,866 167,666 1,729,313 60,689 626,972
Shares converted
from Class B to
Class A........ 890,591 9,229,094 (893,300) (9,229,094) -- -- -- --
----------- ------------- ----------- ------------- ---------- ------------ -------- -----------
Net decrease.... (8,551,760) $ (88,505,154) (6,664,320) $ (68,703,487) (1,302,610) $(13,460,739) (121,228) $(1,250,865)
=========== ============= =========== ============= ========== ============ ======== ===========
YEAR ENDED
OCTOBER 31,
1995:
Shares sold..... 769,482 $ 7,829,343 1,097,002 $ 11,102,275 283,304 $ 2,865,085 231,829 $ 2,358,107
Shares issued in
connection with
the acquisition
of:
Global Income
Plus Fund...... 22,661,242 230,782,432 -- -- -- -- -- --
MH/KP Global
Fixed Income
Fund 4,138,263 42,716,735 -- -- 1,332,238 13,723,085 776,391 8,015,347
Shares
repurchased.... (32,813,653) (334,286,327) (23,655,674) (239,410,776) (4,310,582) (43,639,719) (779,383) (7,995,417)
Dividends
reinvested..... 2,518,835 25,654,246 2,254,509 22,871,888 330,949 3,362,814 76,872 782,695
Shares converted
from Class B to
Class A........ 5,525,275 55,754,624 (5,541,079) (55,754,624) -- -- -- --
----------- ------------- ----------- ------------- ---------- ------------ -------- -----------
Net increase
(decrease)..... 2,799,444 $ 28,451,053 (25,845,242) $(261,191,237) (2,364,091) $(23,688,735) 305,709 $ 3,160,732
=========== ============= =========== ============= ========== ============ ======== ===========
</TABLE>
- -------
*Formerly Class D shares
**Formerly Class C shares
17
<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED JULY 1,
APRIL 30, FOR THE YEARS ENDED OCTOBER 31, 1991+ TO
1996 -------------------------------------------- OCTOBER 31,
(UNAUDITED) 1995 1994 1993 1992 1991
----------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period......... $ 10.35 $ 9.99 $ 10.97 $ 10.64 $ 10.75 $ 10.40
-------- -------- -------- -------- -------- -------
Net investment
income......... 0.35@ 0.77@ 0.72 0.59 0.83 0.20
Net realized and
unrealized
gains (losses)
from investment
and foreign
currency
transactions... (0.06)@ 0.31@ (1.05) 0.68 (0.12) 0.40
-------- -------- -------- -------- -------- -------
Total
increase/decrease
from investment
operations..... 0.29 1.08 (0.33) 1.27 0.71 0.60
-------- -------- -------- -------- -------- -------
Dividends from
net investment
income......... (0.40) (0.72) (0.33) (0.80) (0.64) (0.23)
Distributions
from realized
gains on
investments and
foreign
currency
transactions... -- -- -- (0.14) (0.18) (0.02)
Distributions
from paid in
capital........ -- -- (0.32) -- -- --
-------- -------- -------- -------- -------- -------
Total dividends
and
distributions.. (0.40) (0.72) (0.65) (0.94) (0.82) (0.25)
-------- -------- -------- -------- -------- -------
Net asset value,
end of period.. $ 10.24 $ 10.35 $ 9.99 $ 10.97 $ 10.64 $ 10.75
======== ======== ======== ======== ======== =======
Total investment
return (1)..... 2.78% 11.09% (3.10)% 12.41% 6.70% 5.79%
======== ======== ======== ======== ======== =======
Ratios/Supplemental
Data:
Net assets, end
of
period (000's). $568,656 $663,022 $611,855 $648,853 $107,033 $16,501
Expenses to
average net
assets......... 1.27%* 1.24%(2) 1.17% 1.32%** 1.21% 1.35%*
Net investment
income to
average net
assets......... 6.66%* 7.47%(2) 6.94% 6.82%** 7.84% 8.59%*
Portfolio
turnover rate.. 68% 113% 108% 90% 92% 53%
<CAPTION>
CLASS B
---------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED
APRIL 30, FOR THE YEARS ENDED OCTOBER 31,
1996 -------------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
------------- ------------ ---------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period......... $ 10.31 $ 9.96 $ 10.95 $ 10.62 $ 10.74 $ 11.07
------------- ------------ ---------- ------------- ----------- -----------
Net investment
income......... 0.31@ 0.69@ 0.86 0.78 0.94 0.85
Net realized and
unrealized
gains (losses)
from investment
and foreign
currency
transactions... (0.06)@ 0.30@ (1.28) 0.40 (0.32) (0.09)
------------- ------------ ---------- ------------- ----------- -----------
Total
increase/decrease
from investment
operations..... 0.25 0.99 (0.42) 1.18 0.62 0.76
------------- ------------ ---------- ------------- ----------- -----------
Dividends from
net investment
income......... (0.35) (0.64) (0.29) (0.71) (0.56) (0.97)
Distributions
from realized
gains on
investments and
foreign
currency
transactions... -- -- -- (0.14) (0.18) (0.12)
Distributions
from paid in
capital........ -- -- (0.28) -- -- --
------------- ------------ ---------- ------------- ----------- -----------
Total dividends
and
distributions.. (0.35) (0.64) (0.57) (0.85) (0.74) (1.09)
------------- ------------ ---------- ------------- ----------- -----------
Net asset value,
end of period.. $ 10.21 $ 10.31 $ 9.96 $ 10.95 $ 10.62 $ 10.74
============= ============ ========== ============= =========== ===========
Total investment
return (1)..... 2.45% 10.24% (3.90)% 11.45% 5.93% 7.39%
============= ============ ========== ============= =========== ===========
Ratios/Supplemental
Data:
Net assets, end
of
period (000's). $411,816 $484,534 $725,553 $1,188,890 $1,542,255 $1,593,814
Expenses to
average net
assets......... 2.00%* 2.00%(2) 1.94% 2.11%** 1.98% 1.94%
Net investment
income to
average net
assets......... 5.93%* 6.71%(2) 6.05% 5.97%** 7.11% 8.09%
Portfolio
turnover rate.. 68% 113% 108% 90% 92% 33%
</TABLE>
- -------------
* Annualized
** Includes 0.15% of interest expense related to the reverse repurchase
agreement transactions entered into during the fiscal year
+ Commencement of issuance of shares
++ Formerly Class D
+++ Formerly Class C
@ Calculated using the average shares outstanding for the year
(1) Total investment 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. The
figures do not include sales charge; results of Class A, Class B and Class
C would be lower if sales charges were included. Total investment return
information for periods less than one year is not annualized.
(2) These ratios include non-recurring reorganization expenses of 0.04% for
each Class.
18
<PAGE>
PAINEWEBBER GLOBAL INCOME FUND
<TABLE>
<CAPTION>
CLASS C++
- ------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE YEARS
ENDED ENDED FOR THE PERIOD
APRIL 30, OCTOBER 31, JULY 2, 1992+
1996 ------------------------------ TO OCTOBER 31,
(UNAUDITED) 1995 1994 1993 1992
- ----------- ------- ------- -------- --------------
<S> <C> <C> <C> <C>
$ 10.33 $ 9.98 $ 10.96 $ 10.64 $ 10.94
------- ------- ------- -------- -------
0.32 @ 0.71@ 0.70 0.68 0.20
(0.05)@ 0.31@ (1.09) 0.52 (0.13)
------- ------- ------- -------- -------
0.27 1.02 (0.39) 1.20 0.07
------- ------- ------- -------- -------
(0.37) (0.67) (0.30) (0.74) (0.21)
-- -- -- (0.14) (0.16)
-- -- (0.29) -- --
------- ------- ------- -------- -------
(0.37) (0.67) (0.59) (0.88) (0.37)
------- ------- ------- -------- -------
$ 10.23 $ 10.33 $ 9.98 $ 10.96 $ 10.64
======= ======= ======= ======== =======
2.59% 10.49% (3.56)% 11.64% 0.61%
======= ======= ======= ======== =======
$57,307 $71,329 $92,480 $135,847 $36,598
1.74%* 1.75%(2) 1.68% 1.83%** 1.75%*
6.18%* 6.96%(2) 6.34% 6.17%** 7.02%*
68% 113% 108% 90% 92%
<CAPTION>
CLASS Y++
- -------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEARS ENDED FOR THE PERIOD
APRIL 30, OCTOBER 31, AUGUST 26, 1991+
1996 ---------------------------------------- TO OCTOBER 31,
(UNAUDITED) 1995 1994 1993 1992 1991
- ----------- ----------- --------- ---------- ------- ----------------
<C> <C> <C> <C> <C> <C>
$ 10.35 $ 9.99 $ 10.97 $ 10.64 $10.76 $10.53
- ----------- ----------- --------- ---------- ------- ----------------
0.36@ 0.78@ 0.75 0.71 0.81 0.17
(0.05)@ 0.32@ (1.06) 0.58 (0.08) 0.32
- ----------- ----------- --------- ---------- ------- ----------------
0.31 1.10 (0.31) 1.29 0.73 0.49
- ----------- ----------- --------- ---------- ------- ----------------
(0.41) (0.74) (0.34) (0.82) (0.67) (0.24)
-- -- -- (0.14) (0.18) (0.02)
-- -- (0.33) -- -- --
- ----------- ----------- --------- ---------- ------- ----------------
(0.41) (0.74) (0.67) (0.96) (0.85) (0.26)
- ----------- ----------- --------- ---------- ------- ----------------
$ 10.25 $ 10.35 $ 9.99 $ 10.97 $10.64 $10.76
=========== =========== ========= ========== ======= ================
3.06% 11.39% (2.86)% 12.60% 6.98% 4.63%
=========== =========== ========= ========== ======= ================
$15,198 $16,613 $12,975 $12,043 $7,252 $2,565
0.96%* 0.95%(2) 0.88% 1.06%** 0.94% 1.09%*
6.97%* 7.77%(2) 7.23% 7.00%** 8.15% 8.79%*
68% 113% 108% 90% 92% 53%
</TABLE>
19
<PAGE>
[This Page Intentionally Left Blank]
