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SIGNATURE PAUL SCHUBERT
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<PER-SHARE-NAV-BEGIN> 10.96
<PER-SHARE-NII> 0.49
<PER-SHARE-GAIN-APPREC> (0.07)
<PER-SHARE-DIVIDEND> (0.49)
<PER-SHARE-DISTRIBUTIONS> (0.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.88
<EXPENSE-RATIO> 1.62
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK>0000809991
<NAME> PAINEWEBBER MUNICIPAL SERIES
<SERIES>
<NUMBER> 1
<NAME> MUNICIPAL HIGH INCOME CLASS Y
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-START> MAR-01-1998
<PERIOD-END> FEB-28-1999
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<INVESTMENTS-AT-VALUE> 408
<RECEIVABLES> 22
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<TOTAL-ASSETS> 430
<PAYABLE-FOR-SECURITIES> 15
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<TOTAL-LIABILITIES> 17
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 396
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<SHARES-COMMON-PRIOR> 5
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
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<NET-INVESTMENT-INCOME> 16
<REALIZED-GAINS-CURRENT> 5
<APPREC-INCREASE-CURRENT> (8)
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (16)
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<NUMBER-OF-SHARES-REDEEMED> (61)
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<NET-CHANGE-IN-ASSETS> 357
<ACCUMULATED-NII-PRIOR> 0
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<PER-SHARE-NAV-BEGIN> 10.97
<PER-SHARE-NII> 0.58
<PER-SHARE-GAIN-APPREC> (0.08)
<PER-SHARE-DIVIDEND> (0.58)
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<CIK> 0000809991
<NAME> PAINEWEBBER MUNICIPAL SERIES
<SERIES>
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<NAME> NEW YORK TAX FREE INCOME FUND CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-START> MAR-01-1998
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<INVESTMENTS-AT-VALUE> 26850
<RECEIVABLES> 369
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<PAID-IN-CAPITAL-COMMON> 25581
<SHARES-COMMON-STOCK> 2463
<SHARES-COMMON-PRIOR> 2130
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1493
<NET-ASSETS> 27171
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1509
<OTHER-INCOME> 0
<EXPENSES-NET> 281
<NET-INVESTMENT-INCOME> 1228
<REALIZED-GAINS-CURRENT> 741
<APPREC-INCREASE-CURRENT> (373)
<NET-CHANGE-FROM-OPS> 1596
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1192
<DISTRIBUTIONS-OF-GAINS> 610
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 620
<NUMBER-OF-SHARES-REDEEMED> 400
<SHARES-REINVESTED> 113
<NET-CHANGE-IN-ASSETS> 3477
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (38)
<GROSS-ADVISORY-FEES> 165
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 346
<AVERAGE-NET-ASSETS> 26708
<PER-SHARE-NAV-BEGIN> 11.12
<PER-SHARE-NII> 0.53
<PER-SHARE-GAIN-APPREC> 0.15
<PER-SHARE-DIVIDEND> 0.53
<PER-SHARE-DISTRIBUTIONS> 0.24
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.03
<EXPENSE-RATIO> 1.02
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<NAME> PAINEWEBBER MUNICIPAL SERIES
<SERIES>
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<NAME> NEW YORK TAX FREE INCOME FUND CLASS B
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<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-START> MAR-01-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 5612
<INVESTMENTS-AT-VALUE> 5942
<RECEIVABLES> 82
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<OTHER-ITEMS-ASSETS> 4
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<OTHER-ITEMS-LIABILITIES> 24
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5661
<SHARES-COMMON-STOCK> 545
<SHARES-COMMON-PRIOR> 704
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<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 22
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 330
<NET-ASSETS> 6013
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 334
<OTHER-INCOME> 0
<EXPENSES-NET> 112
<NET-INVESTMENT-INCOME> 222
<REALIZED-GAINS-CURRENT> 164
<APPREC-INCREASE-CURRENT> (83)
<NET-CHANGE-FROM-OPS> 303
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 248
<DISTRIBUTIONS-OF-GAINS> 131
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<SHARES-REINVESTED> 18
<NET-CHANGE-IN-ASSETS> (1816)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
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<PER-SHARE-NAV-BEGIN> 11.12
<PER-SHARE-NII> 0.44
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<AVG-DEBT-PER-SHARE> 0
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<NAME> PAINEWEBBER MUNICIPAL SERIES
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<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-START> MAR-01-1998
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</TABLE>
PaineWebber Municipal
Series
Attachment 77O
FORM 10f-3
Municipal Securities
FUND: PaineWebber New York Tax ?Free
Income Fund
Record of Securities Purchased Under the
Fund's Rule 10f-3 Procedures
1. Issuer: New York State
2. Date of Purchase: 7-16-98 3.
Date offering commenced: 7-10-98
4. Underwriters from whom purchased:
Goldman
5. "Affiliated Underwriter" managing or
participating in syndicate:
PaineWebber
6. Aggregate principal amount of
purchase: $1,000 M
7. Aggregate principal amount of
offering: 563
8. Purchase price (net of fees and
expenses): 103.35
9. Initial public offering price:
103.35
10. Commission, spread or profit:
% $5.00
11. Have the following conditions been
satisfied?
YES
NO
a. The securities are "municipal
securities" as defined in Section 3(a)(29)
of the Securities Exchange Act of 1934.
___X___
_______
b. The securities were purchased
prior to the end of the first day on which
any sales are made
___X___
_______
c. The Securities were purchased
at a price not more than the price paid by
each other purchaser in the offering.
___X___
_______
d. The underwriting was a firm
commitment underwriting.
___X___
_______
e. The commission, spread or
profit was reasonable and fair in relation
to that being received by others for
underwriting similar securities during the
same period.
___X___
_______
f. The issuer had received an
investment grade rating from a nationally
recognized statistical rating organization
or, if the issuer or entity supplying the
revenues from which the issue is to be
paid shall have been in continuous
preparation for less than three years
(including any predecessor), the issue has
received on of the three highest ratings
from at least one such rating
organization.
___X___
_______
g. The amount of such
securities purchased by all of the
investment companies advised by Mitchell
Hutchins (or the Fund?s Sub-Adviser, if
applicable) did not exceed 25% of the
principal amount of the offering.
___X___
_______
h. No purchases were designated
as group sales or otherwise allocated to
the account of any Affiliated Underwriter.
___X____
_______
Note: Refer to Rule 10f-3 Procedures for
the definitions of capitalized terms. In
particular, ?Affiliated Underwriter? is
defined as PaineWebber Group Inc. and any
of its affiliates, including PaineWebber
incorporated and PaineWebber Puerto Rico.
In the case of a Fund advised by a Sub-
Adviser, ?Affiliated Underwriter? shall
also include any brokerage affiliate of
the Sub-Adviser.
Approved: R Suy Date: 7-10-98
FORM 10f-3
Municipal Securities
FUND: PaineWebber New York Tax ?Free
Income Fund
Record of Securities Purchased Under the
Fund's Rule 10f-3 Procedures
1. Issuer: NYSOA (City)
2. Date of Purchase: 7-10-98 3.
Date offering commenced: 7-10-98
4. Underwriters from whom purchased:
Smith Barney
5. "Affiliated Underwriter" managing or
participating in syndicate:
PaineWebber
6. Aggregate principal amount of
purchase: 2,000 M
7. Aggregate principal amount of
offering: 264
8. Purchase price (net of fees and
expenses): 94.944
9. Initial public offering price:
94.944
10. Commission, spread or profit:
% $5.00
11. Have the following conditions been
satisfied?
YES
NO
a. The securities are "municipal
securities" as defined in Section 3(a)(29)
of the Securities Exchange Act of 1934.
___X___
_______
b. The securities were purchased
prior to the end of the first day on which
any sales are made
___X___
_______
c. The Securities were purchased
at a price not more than the price paid by
each other purchaser in the offering.
___X___
_______
d. The underwriting was a firm
commitment underwriting.
___X___
_______
e. The commission, spread or
profit was reasonable and fair in relation
to that being received by others for
underwriting similar securities during the
same period.
___X___
_______
f. The issuer had received an
investment grade rating from a nationally
recognized statistical rating organization
or, if the issuer or entity supplying the
revenues from which the issue is to be
paid shall have been in continuous
preparation for less than three years
(including any predecessor), the issue has
received on of the three highest ratings
from at least one such rating
organization.
___X___
_______
g. The amount of such
securities purchased by all of the
investment companies advised by Mitchell
Hutchins (or the Fund?s Sub-Adviser, if
applicable) did not exceed 25% of the
principal amount of the offering.
___X___
_______
h. No purchases were designated
as group sales or otherwise allocated to
the account of any Affiliated Underwriter.
___X____
_______
Note: Refer to Rule 10f-3 Procedures for
the definitions of capitalized terms. In
particular, ?Affiliated Underwriter? is
defined as PaineWebber Group Inc. and any
of its affiliates, including PaineWebber
incorporated and PaineWebber Puerto Rico.
In the case of a Fund advised by a Sub-
Adviser, ?Affiliated Underwriter? shall
also include any brokerage affiliate of
the Sub-Adviser.
Approved: R Suy Date: 7-10-98
FORM 10f-3
Municipal Securities
FUND: PaineWebber New York Tax ?Free
Income Fund
Record of Securities Purchased Under the
Fund's Rule 10f-3 Procedures
1. Issuer: LI Power Auth.
2. Date of Purchase: 5-14-98 3.
Date offering commenced: 5-13-98
4. Underwriters from whom purchased:
Bear Stearns
5. "Affiliated Underwriter" managing or
participating in syndicate:
PaineWebber
6. Aggregate principal amount of
purchase: 2 M
7. Aggregate principal amount of
offering: $3B
8. Purchase price (net of fees and
expenses):
9. Initial public offering price:
10. Commission, spread or profit:
% $6.25
11. Have the following conditions been
satisfied?
YES
NO
a. The securities are "municipal
securities" as defined in Section 3(a)(29)
of the Securities Exchange Act of 1934.
___X___
_______
b. The securities were purchased
prior to the end of the first day on which
any sales are made
___X___
_______
c. The Securities were purchased
at a price not more than the price paid by
each other purchaser in the offering.
___X___
_______
d. The underwriting was a firm
commitment underwriting.
___X___
_______
e. The commission, spread or
profit was reasonable and fair in relation
to that being received by others for
underwriting similar securities during the
same period.
___X___
_______
f. The issuer had received an
investment grade rating from a nationally
recognized statistical rating organization
or, if the issuer or entity supplying the
revenues from which the issue is to be
paid shall have been in continuous
preparation for less than three years
(including any predecessor), the issue has
received on of the three highest ratings
from at least one such rating
organization.
___X___
_______
g. The amount of such
securities purchased by all of the
investment companies advised by Mitchell
Hutchins (or the Fund?s Sub-Adviser, if
applicable) did not exceed 25% of the
principal amount of the offering.
___X___
_______
h. No purchases were designated
as group sales or otherwise allocated to
the account of any Affiliated Underwriter.
___X____
_______
Note: Refer to Rule 10f-3 Procedures for
the definitions of capitalized terms. In
particular, ?Affiliated Underwriter? is
defined as PaineWebber Group Inc. and any
of its affiliates, including PaineWebber
incorporated and PaineWebber Puerto Rico.
In the case of a Fund advised by a Sub-
Adviser, ?Affiliated Underwriter? shall
also include any brokerage affiliate of
the Sub-Adviser.
Approved: R Suy Date: 5-14-98
??
Report of Independent Auditors
To the Shareholders and Board of Trustees of
PaineWebber Municipal Series
In planning and performing our audit of the financial
statements of PaineWebber Municipal Series
(comprising, respectively, PaineWebber Municipal
High Income Fund and PaineWebber New York Tax-
Free Income Fund) for the year ended February 28,
1999, we considered its internal control, including
control activities for safeguarding securities, in order
to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements
and to comply with the requirements of Form N-SAR,
and not to provide assurance on the internal control.
The management of PaineWebber Municipal Series is
responsible for establishing and maintaining internal
control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the
expected benefits and related costs of controls.
Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly
presented in conformity with generally accepted
accounting principles. Those controls include the
safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control,
errors or fraud may occur and not be detected. Also,
projection of any evaluation of internal control to
future periods is subject to the risk that it may become
inadequate because of changes in conditions or that
the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not
necessarily disclose all matters in internal control that
might be material weaknesses under standards
established by the American Institute of Certified
Public Accountants. A material weakness is a
condition in which the design or operation of one or
more of the specific internal control components does
not reduce to a relatively low level the risk that errors
or fraud in amounts that would be material in relation
to the financial statements being audited may occur
and not be detected within a timely period by
employees in the normal course of performing their
assigned functions. However, we noted no matters
involving internal control and its operation, including
controls for safeguarding securities, that we consider
to be material weaknesses as defined above at
February 28, 1999.
This report is intended solely for the information and
use of the board of trustees and management of
PaineWebber Municipal Series and the Securities and
Exchange Commission and is not intended to be and
should not be used by anyone other than these
specified parties.
ERNST & YOUNG LLP
April 16, 1999
