<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, ASIA PACIFIC GROWTH FUND,
EMERGING MARKETS EQUITY FUND
SEMIANNUAL REPORT
June 15, 1999
Dear Shareholder,
We are pleased to present you with the semiannual report for PaineWebber
Global Equity Fund, PaineWebber Asia Pacific Growth Fund and PaineWebber
Emerging Markets Equity Fund for the six-month period ended April 30, 1999.
- ---------------------------------------------------------------------------
PAINEWEBBER GLOBAL EQUITY FUND
PERFORMANCE--
[ICON]
The Fund's total return consists of the change in net asset value
with any dividends reinvested. For the six-month period ended April 30, 1999,
without deducting sales charges, Class A shares gained 15.18%, Class B shares
gained 14.69%, Class C shares gained 14.74% and Class Y shares gained 15.34%.
The Fund's total return may be lower for shareowners who purchased or
redeemed Fund shares during the period. After deducting the maximum
applicable sales charges, Class A shares gained 9.97%, Class B shares gained
9.69% and Class C shares gained 13.74%. Class Y shares are not subject to
sales charges.
MARKET REVIEW--
The global markets recovered during the first half of the fiscal year as
the global growth outlook for the world economy improved and the risk of
global recession declined. The main contribution to this turn-around was
global monetary easing, which occurred in the fourth quarter of 1998 and
resulted in generally higher equity prices. Commodity prices other than oil
remained low, indicating that world trade was still weak. As measured by the
MSCI World Index (the "Index"), global markets gained 19.78% for the six
months ended April 30, 1999.
The Euro was introduced in January as an official currency
for Europe's key economies. Since its debut the euro has been weak vs. the
U.S. dollar because of strong economic growth in the United States and
sluggish growth in Europe. Although the European Monetary Union's local
equity markets performed well (+22% in local currency terms during the first
half of the fiscal year), the change in currency value resulted in a lower
return for U.S. investors (+9.3%). The strongest performance of the six-month
period came from the emerging markets, which had lagged in the prior period
when global risk seemed very high. Japan also performed well thanks to
corporate restructuring and a strong yen.
PORTFOLIO HIGHLIGHTS--
The Fund was positioned somewhat defensively during the first half with
large positions in food and household product companies. The stocks performed
well early in the period and began to underperform at the end of the six
months as the global growth outlook improved. Throughout the period business
services (2.5%) and media (2.4%) were the best performing industries in the
portfolio.* Several of the Fund's holdings benefited from strong mergers and
acquisitions activity in Europe during the period. The Fund's emerging market
exposure (6.0%) helped performance as those markets recovered.
The Japanese equity market gained 30% on a local currency basis,
although the
PAINEWEBBER GLOBAL EQUITY FUND
FUND PROFILE
[ARROW]GOAL:
Long-term growth of
capital
[ARROW]PORTFOLIO MANAGERS/
SUBADVISERS:
Kirk Barneby and
Mark Tincher, Mitchell
Hutchins Asset
Management Inc.;
Scott Opsal, Invista
Capital Management,
Inc.
[ARROW]TOTAL NET ASSETS:
$385.9 million as of
April 30, 1999
[ARROW]DIVIDEND PAYMENTS:
Annually, if any
PAINEWEBBER
GLOBAL
EQUITY FUND
TOP FIVE COUNTRIES*
United States 41.1%
United Kingdom 12.7%
Netherlands 6.3%
Sweden 4.5%
France 4.4%
* Weightings represent percentages of portfolio assets as of April 30, 1999.
The Fund's portfolio is actively managed and its composition will vary over
time.
1
<PAGE>
SEMIANNUAL REPORT
economy continued to languish. Investor perceptions of Japan have shifted:
bad economic and corporate news is viewed less negatively and investors seem
to believe there is a way out of the current crisis. Because the fundamental
outlook remains weak, the Fund is under-weighted in Japan (1.8%).*
OUTLOOK--
In Europe we believe that deregulation and increased competition
will sustain the current disinflationary trend. We expect economic growth to
remain below U.S. levels, though growth could get a boost from easier
monetary policy. The euro's present weakness is likely to benefit domestic
producers and exporters.
We expect to maintain the Fund's weighting in Latin America--national
economic outputs are rising and recessions are not as bad as expected. Select
companies in Japan may be fairly valued if they successfully restructure, and
we are researching investment possibilities among such companies. We intend
to increase our weighting in Asia, where economic growth is expected for most
of the countries in the region.
- ------------------------------------------------------------------------------
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PERFORMANCE--
The Fund's total return consists of the change in net asset value with any
dividends reinvested. For the six-month period ended April 30, 1999, without
deducting sales charges, Class A shares gained 32.11%, Class B shares gained
31.75%, Class C shares gained 31.75% and Class Y shares gained 32.11%.
The Fund's total return may be lower for shareowners who purchased or
redeemed Fund shares during the period. After deducting the maximum
applicable sales charges, Class A shares gained 26.19%, Class B shares gained
26.75% and Class C shares gained 30.75%. Class Y shares are not subject to
sales charges.
MARKET REVIEW--
Markets across the region rose during the six month period ending April
30, 1999 as investor sentiment improved. Improvement came as industrial
production and domestic demand appeared to stabilize and trend upward in many
of the region's economies. Also helpful was good news from Japan, where the
yen saw a rally late in 1998 and corporate restructuring was announced in
early 1999. Foreign investment in the region continued to grow despite
corporate earnings reports that generally were worse than expected. For the
six months ended April 30, 1999, the MSCI All Country Asia Pacific Free
ex-Japan Index (the "Index") gained 35.99%.
PORTFOLIO HIGHLIGHTS--
Hong Kong (25.4%)* and Singapore (10.9%) both rose strongly during the
period and the Fund benefited from its overweightings in these markets vs.
the Index. Hong Kong benefited from
PAINEWEBBER
GLOBAL
EQUITY FUND
TOP FIVE SECTORS*
Consumer Cyclical 25.0%
Financial Services 20.6%
Capital Goods 9.1%
Utilities 9.0%
Consumer Noncyclical 8.2%
PAINEWEBBER ASIA PACIFIC GROWTH FUND
FUND PROFILE
[ARROW]GOAL:
Long-term capital
appreciation
[ARROW]PORTFOLIO MANAGERS/
SUBADVISERS:
Louise Croset and
Heather Crighton,
Schroder Capital
Management
International Inc.
[ARROW]TOTAL NET ASSETS:
$36.7 million as of
April 30, 1999
[ARROW]DIVIDEND PAYMENTS:
Annually, if any
* Weightings represent percentages of portfolio assets as of April 30, 1999.
The Fund's portfolio is actively managed and its composition will vary over
time.
2
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, ASIA PACIFIC GROWTH FUND,
EMERGING MARKETS EQUITY FUND
SEMIANNUAL REPORT
continued demand for residential real estate and a stimulative budget.
Singapore announced a cost-cutting package which boosted its market and
emphasized the proactive nature of its government.
Australia (22.7%)* produced positive returns as resource stocks,
particularly oil, recovered and the Australian dollar rallied towards the end
of the period. The Fund's Australia component outperformed the Australian
component of the Index due to strong stock selection, even though the Fund
was underweighted in Australia versus the Index.
Structural reform continues within many emerging markets. We believe
industrial production and consumer demand will continue to improve in these
markets. Although underweighted versus the Index, the Fund benefited from its
exposure to emerging markets such as Thailand (2.1%) and Indonesia (1.3%).
Korea (12.7%)--where the Fund was overweighted--also significantly helped
Fund performance.
OUTLOOK--
The reemergence of domestic demand is the vital sign that suggests Asian
economies are on the road to recovery. While corporate earnings have been
disappointing, provisions taken have been realistic. Earnings growth is
expected to recover in the second half of 1999. More economic reform and
restructuring is needed, however, and implementation of measures already in
place will be the key to continued recovery.
Generally, we intend to focus the Fund on companies with strong
franchises, improving fundamentals and those businesses that are
restructuring.
PAINEWEBBER
ASIA PACIFIC
GROWTH FUND
TOP FIVE COUNTRIES*
Hong Kong 25.4%
Australia 22.7%
Korea 12.7%
Singapore 10.9%
Malaysia 6.2%
PAINEWEBBER
ASIA PACIFIC
GROWTH FUND
TOP FIVE STOCKS*
Pohang Iron and
Steel Co. Ltd. 3.2%
Cheung Kong
Holdings Ltd. 3.2%
Sung Hung Kai
Properties Ltd. 3.2%
Hutchison Whampoa Ltd 2.9%
Samsung Electronic 2.7%
* Weightings represent percentages of portfolio assets as of April 30, 1999.
The Fund's portfolio is actively managed and its composition will vary over
time.
3
<PAGE>
SEMIANNUAL REPORT
- -------------------------------------------------------------------------------
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PERFORMANCE--
The Fund's total return consists of the change in net asset value with
any dividends reinvested. For the six-month period ended April 30, 1999,
without deducting sales charges, Class A shares gained 29.29%, Class B shares
gained 28.89%, Class C shares gained 28.80% and Class Y shares gained 29.48%.
The Fund's total return may be lower for shareowners who purchased or
redeemed Fund shares during the period. After deducting the maximum
applicable sales charges, Class A shares gained 23.43%, Class B shares gained
23.89% and Class C shares gained 27.80%. Class Y shares are not subject to
sales charges.
MARKET REVIEW--
The most significant event during the six month period was the
devaluation of the Brazilian REAL in January. Brazil remained relatively
stable, however, and emerging stock markets rallied significantly. The MSCI
Emerging Markets Free Index (the "Index") saw a sharp rise in March, led by
Latin America and Asia, as commodity prices stabilized, signs of economic
stability appeared in Asia and some confidence returned to Brazil. As
measured by the Index, emerging markets gained 34.87% for the six months
ended April 30, 1999. In contrast, the developed markets as measured by the
MSCI Europe, Australia and Far East Index gained 15.44% for the same period.
PORTFOLIO HIGHLIGHTS--
At the time of Brazil's currency devaluation, the Fund was underweighted
in Latin America vs. the Index, including Brazil. This underweighting,
combined with a real hedge position, helped performance over the period. The
Fund moved to an overweighted position vs. the Index after the International
Monetary Fund arranged another support package and the outlook for the region
improved.
During the period the Fund benefited from its Asian exposure, especially
its overweighting in Korea (13.1%),* which performed strongly as
restructuring progressed. The Fund's overweighting in China/Hong Kong (2.5%)
detracted from performance as fears of currency instability grew following
the Brazilian devaluation. We reduced cash over the period as the prospects
for emerging markets improved.
As the outlook for Europe, the Middle East and Africa deteriorated, the
Fund moved from an overweighting to an underweighting (26.8%). This was
particularly true of Greece (3.7%), where company valuations are among the
highest of the emerging markets.
OUTLOOK--
The recent recovery in emerging markets increases our confidence that we
are seeing a significant turning point for the asset class. Several positive
factors support our present optimism. First, global growth has not slowed as
dramatically as feared and growth in the U.S. has exceeded expectations.
Second, oil prices have risen following OPEC's announcement of
production cuts. Rising prices have helped many emerging markets, such as
Mexico, which rely on oil for a significant portion of government revenues.
Other commodity prices also have started to stabilize. Finally, there is
evidence of ongoing structural reform in the crisis economies. For example,
Thailand has passed its bankruptcy laws and Taiwan has eased restrictions on
foreign ownership.
The Brazilian devaluation did not lead to widespread financial contagion
as feared, and removed a major source of uncertainty. China/Hong Kong is now
the only major economy with a managed exchange rate. China could devalue its
currency later this year if the yen weakens significantly--this possibility
remains one of the key risks within the emerging markets.
PAINEWEBBER EMERGING MARKETS EQUITY FUND
FUND PROFILE
[ARROW]GOAL:
Long-term capital
appreciation
[ARROW]PORTFOLIO MANAGER/
SUBADVISER:
John Troiano,
Schroder Capital
Management
International Inc.
[ARROW]TOTAL NET ASSETS:
$8.9 million as of
April 30, 1999
[ARROW]DIVIDEND PAYMENTS:
Annually, if any
PAINEWEBBER EMERGING
MARKETS EQUITY FUND
REGIONAL ALLOCATION*
[PIE CHART]
<TABLE>
<S> <C>
Asia 38.3%
Latin America 34.9%
Africa, Europe, Middle East 26.8%
</TABLE>
* Weightings represent percentages of portfolio assets as of April 30, 1999.
The Fund's portfolio is actively managed and its composition will vary over
time.
4
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, ASIA PACIFIC GROWTH FUND,
EMERGING MARKETS EQUITY FUND
SEMIANNUAL REPORT
Our ultimate objective in managing your investments is to help you
successfully meet your financial goals. We thank you for your continued
support and welcome any comments or questions you may have.
For a QUARTERLY REVIEW on PaineWebber Global Equity Fund, PaineWebber
Asia Pacific Growth Fund and PaineWebber Emerging Markets Equity Fund, or
another fund in the PaineWebber Family of Funds(1), please contact your
Financial Advisor.
Sincerely,
/s/ MARGO ALEXANDER
MARGO ALEXANDER
Chairman and Chief Executive
Officer
Mitchell Hutchins Asset
Management Inc.
/s/ BRIAN M. STORMS
BRIAN M. STORMS
President and Chief Operating
Officer
Mitchell Hutchins Asset
Management Inc.
/s/ T. KIRKHAM BARNEBY
T. KIRKHAM BARNEBY
Managing Director and Chief
Investment Officer -- Quantitative
Investments
Mitchell Hutchins Asset
Management Inc.
/s/ MARK A. TINCHER
MARK A. TINCHER
Managing Director and Chief
Investment Officer -- Equities
Mitchell Hutchins Asset
Management Inc.
Portfolio Manager, PaineWebber
Global Equity Fund
/s/ LOUISE CROSET
LOUISE CROSET
Portfolio Manager, PaineWebber
Asia Pacific Growth Fund
/s/ HEATHER CRIGHTON
HEATHER CRIGHTON
Portfolio Manager, PaineWebber
Asia Pacific Growth Fund
/s/ JOHN TROIANO
JOHN TROIANO
Portfolio Manager, PaineWebber
Emerging Markets Equity Fund
/s/ SCOTT OPSAL
SCOTT OPSAL
Portfolio Manager, PaineWebber
Global Equity Fund
This letter is intended to assist shareholders in understanding how the
Funds performed during the six-month period ended April 30, 1999, and
reflects our views at the time of its writing. Of course, these views may
change in response to changing circumstances. We encourage you to consult
your Financial Advisor regarding your personal investment program.
(1) Mutual Funds are sold by prospectus only. The prospectuses for the funds
contain more complete information regarding risks, charges and expenses,
and should be read carefully before investing.
PAINEWEBBER
EMERGING MARKETS
EQUITY FUND
TOP FIVE STOCKS*
Telefonos de Mexico,
S.A. de C.V. ADR 4.9%
Samsung Electronics Corp. 3.8%
Pohang Iron & Steel Co. Ltd. 2.0%
YPF Sociedad Anonima
Class D ADR 2.0%
Korea Electric Power Corp. 2.0%
* Weightings represent percentages of portfolio assets as of April 30, 1999.
The Fund's portfolio is actively managed and its composition will vary over
time.
5
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
PERFORMANCE RESULTS(UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN(1)
---------------------------------------- -----------------------------------
12 MONTHS ENDED 6 MONTHS
04/30/99 10/31/98 04/30/98 04/30/99 ENDED 04/30/99
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Class A Shares $17.84 $16.27 $ 19.17 (2.25)% 15.18%
- ---------------------------------------------------------------------------------------------------------------
Class B Shares 16.82 15.43 18.26 (3.08) 14.69
- ---------------------------------------------------------------------------------------------------------------
Class C Shares 16.85 15.45 18.28 (3.02) 14.74
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS A SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
11/14/91-12/31/91 $12.00 $12.29 -- -- 2.42%
- ---------------------------------------------------------------------------------------------------------------
1992 12.29 12.45 $ 0.1610 $ 0.0800 3.26
- ---------------------------------------------------------------------------------------------------------------
1993 12.45 16.07 0.2100 -- 30.77
- ---------------------------------------------------------------------------------------------------------------
1994 16.07 14.43 1.2530 -- (2.38)
- ---------------------------------------------------------------------------------------------------------------
1995 14.43 15.81 0.5743 -- 13.54
- ---------------------------------------------------------------------------------------------------------------
1996 15.81 17.57 0.5784 -- 14.80
- ---------------------------------------------------------------------------------------------------------------
1997 17.57 16.14 2.4768 -- 6.34
- ---------------------------------------------------------------------------------------------------------------
1998 16.14 17.15 0.8142 0.0185 11.61
- ---------------------------------------------------------------------------------------------------------------
01/01/99-04/30/99 17.15 17.84 -- -- 4.02
- ---------------------------------------------------------------------------------------------------------------
Total: $ 6.0677 $ 0.0985
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: 117.26%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS B SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
08/25/95-12/31/95 $15.83 $15.46 $ 0.5743 -- 1.29%
- ---------------------------------------------------------------------------------------------------------------
1996 15.46 17.03 0.5784 -- 13.91
- ---------------------------------------------------------------------------------------------------------------
1997 17.03 15.42 2.4768 -- 5.49
- ---------------------------------------------------------------------------------------------------------------
1998 15.42 16.22 0.8142 -- 10.67
- ---------------------------------------------------------------------------------------------------------------
01/01/99-04/30/99 16.22 16.82 -- -- 3.70
- ---------------------------------------------------------------------------------------------------------------
Total: $ 4.4437 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: 39.67%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS C SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
05/10/93-12/31/93 $13.80 $15.99 $ 0.2100 -- 17.39%
- ---------------------------------------------------------------------------------------------------------------
1994 15.99 14.23 1.2530 -- (3.12)
- ---------------------------------------------------------------------------------------------------------------
1995 14.23 15.46 0.5743 -- 12.67
- ---------------------------------------------------------------------------------------------------------------
1996 15.46 17.03 0.5784 -- 13.91
- ---------------------------------------------------------------------------------------------------------------
1997 17.03 15.43 2.4768 -- 5.55
- ---------------------------------------------------------------------------------------------------------------
1998 15.43 16.24 0.8142 -- 10.73
- ---------------------------------------------------------------------------------------------------------------
01/01/99-04/30/99 16.24 16.85 -- -- 3.76
- ---------------------------------------------------------------------------------------------------------------
Total: $ 5.9067 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: 77.01%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
- -----------------
(1) Figures assume reinvestment of all dividends and capital gain distributions,
if any, 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. Total investment returns for periods of less than one year have not
been annualized.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the six months ended
April 30, 1999, and since inception, May 10, 1993, through April 30, 1999, Class
Y shares had a total return of 15.34% and 88.70%, respectively. Class Y shares
do not have initial or contingent deferred sales charges or ongoing distribution
and service fees.
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.
6
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
PERFORMANCE RESULTS(UNAUDITED)(CONCLUDED)
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
% RETURN WITHOUT DEDUCTING % RETURN AFTER DEDUCTING
MAXIMUM SALES CHARGE MAXIMUM SALES CHARGE
-------------------------------------- --------------------------------------
CLASS A* B** C*** A* B** C***
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
Twelve Months Ended 03/31/99 (3.35)% (4.14)% (4.13)% (7.71)% (8.69)% (5.05)%
- -----------------------------------------------------------------------------------------------------------------
Five Years Ended 03/31/99 8.69 N/A 7.86 7.70 N/A 7.86
- -----------------------------------------------------------------------------------------------------------------
Commencement of Operations
Through 03/31/99+ 10.50 8.56 9.45 9.81 8.11 9.45
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* Maximum sales charge for Class A shares is 4.5% of the public offering price.
Class A shares bear ongoing 12b-1 services fees.
** Maximum contingent deferred sales charge for Class B shares is 5.0% 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 is 1.0% and is
reduced to 0% after 1 year. Class C shares bear ongoing 12b-1 distribution
and service fees.
+ Commencement of operations was November 14, 1991, August 25, 1995 and May 10,
1993 for Class A, Class B and Class C shares, respectively.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the twelve months
ended March 31, 1999, the five years ended March 31, 1999, and since inception,
May 10, 1993 through March 31, 1999, Class Y shares had an average annual total
return of (3.01)%, 9.03% and 10.63%, respectively. Class Y shares do not have
initial or contingent deferred sales charges or ongoing distribution and service
fees.
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.
7
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PERFORMANCE RESULTS(UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN(1)
---------------------------------------- ---------------------------------
12 MONTHS SIX MONTHS
04/30/99 10/31/98 04/30/98 ENDED 04/30/99 ENDED 04/30/99
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Class A Shares $ 9.01 $ 6.82 $ 8.14 10.69% 32.11%
- -------------------------------------------------------------------------------------------------------------
Class B Shares 8.88 6.74 8.07 10.04 31.75
- -------------------------------------------------------------------------------------------------------------
Class C Shares 8.88 6.74 8.07 10.04 31.75
- -------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS A SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
03/25/97-12/31/97 $12.50 $ 8.26 -- -- (33.92)%
- ---------------------------------------------------------------------------------------------------------------
1998 8.26 7.29 -- -- (11.74)
- ---------------------------------------------------------------------------------------------------------------
01/01/99-04/30/99 7.29 9.01 -- -- 23.59
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: (27.92)%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS B SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
03/25/97-12/31/97 $12.50 $ 8.21 -- -- (34.32)%
- ---------------------------------------------------------------------------------------------------------------
1998 8.21 7.20 -- -- (12.30)
- ---------------------------------------------------------------------------------------------------------------
01/01/99-04/30/99 7.20 8.88 -- -- 23.33
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: (28.96)%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS C SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
03/25/97-12/31/97 $12.50 $ 8.21 -- -- (34.32)%
- ---------------------------------------------------------------------------------------------------------------
1998 8.21 7.20 -- -- (12.30)
- ---------------------------------------------------------------------------------------------------------------
01/01/99-04/30/99 7.20 8.88 -- -- 23.33
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: (28.96)%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gain distributions,
if any, at net asset value on the payable dates and do not include sales
charges; results would be lower if sales charges were included. Total
investment returns for periods of less than one year have not been
annualized.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the six months ended
April 30, 1999 and since inception, March 13, 1998 through April 30, 1999, Class
Y shares had a total return of 32.11% and 3.58%, respectively. Class Y shares do
not have initial or contingent deferred sales charges or ongoing distribution
and service fees.
The above data 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.
8
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PERFORMANCE RESULTS(UNAUDITED)(CONCLUDED)
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
% RETURN WITHOUT DEDUCTING % RETURN AFTER DEDUCTING
MAXIMUM SALES CHARGE MAXIMUM SALES CHARGE
-------------------------------------- --------------------------------------
CLASS A* B** C*** A* B** C***
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
Twelve Months Ended 03/31/99 (10.61)% (11.27)% (11.27)% (14.65)% (15.70)% (12.15)%
- -----------------------------------------------------------------------------------------------------------------
Commencement of Operations
Through 03/31/99+ (21.08) (21.64) (21.64) (22.86) (23.21) (21.64)
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* Maximum sales charge for Class A shares is 4.5% of the public offering price.
Class A shares bear ongoing 12b-1 service fees.
** Maximum contingent deferred sales charge for Class B shares is 5.0% 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 is 1.0% and is reduced
to 0% after 1 year. Class C shares bear ongoing 12b-1 distribution and
service fees.
+ Commencement of operations was March 25, 1997 for Class A, Class B and Class C
shares, respectively.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the twelve months
ended March 31, 1999 and since inception, March 13, 1998 through March 31, 1999,
Class Y shares had an average annual total return of (10.96)% and (10.35)%,
respectively. Class Y shares do not have initial or contingent deferred sales
charges or ongoing distribution and service fees.
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.
9
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PERFORMANCE RESULTS(UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN(1)
---------------------------------------- ------------------------------------
12 MONTHS ENDED 6 MONTHS
04/30/99 10/31/98 04/30/98 04/30/99 ENDED 04/30/99
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
Class A Shares $ 8.43 $ 6.52 $ 9.69 (13.00)% 29.29%
- ----------------------------------------------------------------------------------------------------------------
Class B Shares 8.21 6.37 9.45 (13.12) 28.89
- ----------------------------------------------------------------------------------------------------------------
Class C Shares 8.14 6.32 9.43 (13.68) 28.80
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS A SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
01/19/94-12/31/94 $12.00 $10.49 -- -- (12.58)%
- ---------------------------------------------------------------------------------------------------------------
1995 10.49 9.26 -- $ 0.0517 (11.20)
- ---------------------------------------------------------------------------------------------------------------
1996 9.26 9.71 -- -- 4.86
- ---------------------------------------------------------------------------------------------------------------
1997 9.71 9.27 -- -- (4.53)
- ---------------------------------------------------------------------------------------------------------------
1998 9.27 6.82 -- -- (26.43)
- ---------------------------------------------------------------------------------------------------------------
01/01/99-04/30/99 6.82 8.43 -- -- 23.61
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0517
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: (29.33)%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS B SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
12/05/95-12/31/95 $ 9.13 $ 9.18 -- -- 0.55%
- ---------------------------------------------------------------------------------------------------------------
1996 9.18 9.56 -- -- 4.14
- ---------------------------------------------------------------------------------------------------------------
1997 9.56 9.06 -- -- (5.23)
- ---------------------------------------------------------------------------------------------------------------
1998 9.06 6.66 -- -- (26.49)
- ---------------------------------------------------------------------------------------------------------------
01/01/99-04/30/99 6.66 8.21 -- -- 23.27
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: (10.08)%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS C SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
01/19/94-12/31/94 $12.00 $10.42 -- -- (13.17)%
- ---------------------------------------------------------------------------------------------------------------
1995 10.42 9.18 -- $ 0.0034 (11.87)
- ---------------------------------------------------------------------------------------------------------------
1996 9.18 9.55 -- -- 4.03
- ---------------------------------------------------------------------------------------------------------------
1997 9.55 9.04 -- -- (5.34)
- ---------------------------------------------------------------------------------------------------------------
1998 9.04 6.60 -- -- (26.99)
- ---------------------------------------------------------------------------------------------------------------
01/01/99-04/30/99 6.60 8.14 -- -- 23.33
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0034
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: (32.14)%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gain distributions,
if any, 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. Total investment returns for periods of less than one year have not
been annualized.
Note: The Fund offers Class Y shares to a limited group of eligible investors
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the six months ended
April 30, 1999 and since inception, January 19, 1994 through April 30, 1999,
Class Y shares had a total return of 29.48% and (28.46)%, respectively. Class Y
shares do not have initial or contingent deferred sales charges or ongoing
distribution and service fees.
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.
10
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PERFORMANCE RESULTS(UNAUDITED)(CONCLUDED)
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
% RETURN WITHOUT DEDUCTING % RETURN AFTER DEDUCTING
MAXIMUM SALES CHARGE MAXIMUM SALES CHARGE
-------------------------------------- --------------------------------------
CLASS A* B** C*** A* B** C***
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
Twelve Months Ended 03/31/99 (21.23)% (21.24)% (21.82)% (24.75)% (25.18)% (22.60)%
- -----------------------------------------------------------------------------------------------------------------
Five Years Ended 03/31/99 (7.14) N/A (7.86) (7.99) N/A (7.86)
- -----------------------------------------------------------------------------------------------------------------
Commencement of Operations
Through 03/31/99+ (8.37) (6.20) (9.08) (9.19) (7.06) (9.08)
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* Maximum sales charge for Class A shares is 4.5% of the public offering price.
Class A shares bear ongoing 12b-1 services fees.
** Maximum contingent deferred sales charge for Class B shares is 5.0% 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 is 1.0% and is reduced
to 0% after 1 year. Class C shares bear ongoing 12b-1 distribution and
service fees.
+ Commencement of operations was January 19, 1994, December 5, 1995 and January
19, 1994 for Class A, Class B and Class C shares, respectively.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the twelve months
ended March 31, 1999, for the five years ended March 31, 1999, and since
inception, January 19, 1994 through March 31, 1999, Class Y shares had an
average annual total return of (20.97)%, (6.92)% and (8.16)%, respectively.
Class Y shares do not have initial or contingent deferred sales charges or
ongoing distribution and service fees.
The data above represents past performance of the Fund's shares, which is no
guarantee of future results. The investment return and 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.
11
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1999(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
COMMON STOCKS--96.70%
ARGENTINA--1.95%
ENERGY SOURCES--1.95%
179,000 YPF Sociedad Anonima, ADR............... $ 7,518,000
-------------
AUSTRALIA--2.96%
BANKS--2.52%
621,000 Australia & New Zealand Banking Group
Ltd................................... 4,919,032
246,000 National Australia Bank, Ltd.(1)........ 4,789,295
-------------
9,708,327
-------------
INSURANCE--0.44%
381,000 Qbe Insurance Group Ltd................. 1,704,377
-------------
Total Australia Common Stocks...................... 11,412,704
-------------
AUSTRIA--2.04%
BANKS--0.77%
47,900 Bank of Austria AG...................... 2,970,818
-------------
ENERGY SOURCES--0.75%
30,000 OMV AG.................................. 2,899,818
-------------
MATERIALS & COMMODITIES--0.52%
66,000 RHI AG.................................. 2,014,281
-------------
Total Austria Common Stocks........................ 7,884,917
-------------
CANADA--2.63%
BANKS--1.11%
88,200 Royal Bank of Canada.................... 4,300,816
-------------
METALS AND MINING--0.06%
126,619 Boliden Ltd............................. 240,542
-------------
MULTI INDUSTRY--1.46%
255,000 Imasco Ltd.............................. 5,613,813
-------------
Total Canada Common Stocks......................... 10,155,171
-------------
DENMARK--1.08%
FOOD & HOUSEHOLD PRODUCTS--1.08%
89,000 Danisco A/S............................. 4,162,071
-------------
FINLAND--3.30%
BANKS--1.18%
760,889 Merita PLC.............................. 4,541,488
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
FINLAND--(CONCLUDED)
<TABLE>
<C> <S> <C>
CHEMICALS--0.37%
219,000 Kemira OY(1)............................ $ 1,422,813
-------------
ELECTRICAL & ELECTRONICS--1.13%
56,732 Nokia OYJ "A" Shares.................... 4,372,017
-------------
FOREST PRODUCTS, PAPER--0.62%
79,400 UPM-Kymmene OY.......................... 2,403,110
-------------
Total Finland Common Stocks........................ 12,739,428
-------------
FRANCE--4.42%
AEROSPACE & MILITARY TECHNOLOGY--0.49%
48,000 Lagardere S.C.A......................... 1,900,506
-------------
BEVERAGES & TOBACCO--0.82%
52,600 Seita................................... 3,167,299
-------------
BUILDING MATERIALS & COMPONENTS--1.09%
43,300 Lafarge................................. 4,208,275
-------------
ENERGY SOURCES--0.94%
23,202 Elf Aquitaine........................... 3,603,058
-------------
HEALTH & PERSONAL CARE--0.31%
25,000 Rhone Poulenc S.A.*..................... 1,188,450
-------------
RECREATION & OTHER CONSUMER GOODS--0.77%
53,000 Bic..................................... 2,973,027
-------------
Total France Common Stocks......................... 17,040,615
-------------
GERMANY--2.34%
HEALTH & PERSONAL CARE--1.30%
106,000 Hoechst AG(1)........................... 5,022,232
-------------
MOTOR VEHICLES--1.04%
40,600 DaimlerChrysler AG(1)................... 4,008,056
-------------
Total Germany Common Stocks........................ 9,030,288
-------------
GREECE--1.12%
WIRELESS TELECOMMUNICATIONS--1.12%
386,000 Hellenic Telecommunications ADR(1)...... 4,342,500
-------------
IRELAND--1.27%
BANKS--1.27%
244,232 Bank of Ireland......................... 4,883,693
-------------
</TABLE>
12
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
<TABLE>
<C> <S> <C>
ISRAEL--1.70%
ELECTRICAL & ELECTRONICS--1.10%
115,295 ECI Telecommunications Ltd.............. $ 4,251,503
-------------
ELECTRICAL EQUIPMENT--0.60%
48,000 Orbotech Ltd.*.......................... 2,304,000
-------------
Total Israel Common Stocks......................... 6,555,503
-------------
ITALY--2.83%
BANKS--1.09%
280,505 San Paolo-IMI SPA(1).................... 4,207,822
-------------
WIRELESS TELECOMMUNICATIONS--1.74%
1,251,000 Telecom Italia SPA...................... 6,726,723
-------------
Total Italy Common Stocks.......................... 10,934,545
-------------
JAPAN--1.86%
FINANCIAL SERVICES--0.88%
41,000 Takefuji Corp........................... 3,398,928
-------------
HEALTH & PERSONAL CARE--0.62%
55,000 Takeda Chemical Industries.............. 2,390,303
-------------
MERCHANDISING--0.36%
37,400 Yamada Denki Co......................... 1,393,653
-------------
Total Japan Common Stocks.......................... 7,182,884
-------------
KOREA--0.29%
BANKS--0.29%
101,000 Shinhan Bank............................ 1,113,252
-------------
MEXICO--0.64%
MULTI INDUSTRY--0.64%
99,893 Desc S.A. De C.V.(1).................... 2,472,352
-------------
NETHERLANDS--6.32%
APPLIANCE & HOUSEHOLD DURABLES--1.77%
79,427 Koninklijke Philips Electronics N.V..... 6,838,396
-------------
BUSINESS & PUBLIC SERVICES--1.05%
180,000 Vedior N.V. CVA......................... 4,050,238
-------------
FOOD & HOUSEHOLD PRODUCTS--0.97%
54,600 Unilever N.V............................ 3,737,628
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
NETHERLANDS--(CONCLUDED)
<TABLE>
<C> <S> <C>
FOREST PRODUCTS, PAPER--1.12%
24,000 Benckiser N.V........................... $ 1,323,458
163,000 Buhrmann N.V............................ 2,987,552
-------------
4,311,010
-------------
MACHINERY & ENGINEERING SERVICES--0.51%
137,000 New Holland N.V......................... 1,986,500
-------------
WIRELESS TELECOMMUNICATIONS--0.90%
83,500 Kon KPN N.V............................. 3,484,272
-------------
Total Netherlands Common Stocks.................... 24,408,044
-------------
NEW ZEALAND--1.21%
WIRELESS TELECOMMUNICATIONS--1.21%
896,000 Telecom Corp. of
New Zealand Ltd.(1)................... 4,667,200
-------------
NORWAY--1.11%
MULTI INDUSTRY--1.11%
256,000 Orkla ASA(1)............................ 4,293,707
-------------
SOUTH AFRICA--0.43%
ENERGY SOURCES--0.43%
233,000 Sasol Ltd............................... 1,646,508
-------------
SWEDEN--4.54%
BANKS--1.19%
123,000 Svenska Handelsbanken A Shares(1)....... 4,606,851
-------------
BEVERAGES & TOBACCO--0.97%
1,134,000 Swedish Match AB(1)..................... 3,723,101
-------------
DRUGS & MEDICINE--0.64%
44,169 Pharmacia & Upjohn, Inc. ADR............ 2,473,464
-------------
INDUSTRIAL PARTS--0.75%
83,068 Autoliv, Inc............................ 2,884,784
-------------
MULTI INDUSTRY--0.52%
218,000 Trelleborg AB(1)........................ 2,015,408
-------------
WIRELESS TELECOMMUNICATIONS--0.47%
68,562 Ericsson LM B Shares.................... 1,799,986
-------------
Total Sweden Common Stocks......................... 17,503,594
-------------
</TABLE>
13
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
<TABLE>
<C> <S> <C>
SWITZERLAND--2.72%
BANKS--1.20%
13,600 UBS AG(1)............................... $ 4,617,421
-------------
HEALTH & PERSONAL CARE--1.12%
2,954 Novartis AG............................. 4,323,446
-------------
INSURANCE--0.40%
2,390 Zurich Allied AG........................ 1,539,864
-------------
Total Switzerland Common Stocks.................... 10,480,731
-------------
UNITED KINGDOM--12.84%
AEROSPACE & MILITARY TECHNOLOGY--0.71%
178,000 Smiths Industries PLC................... 2,748,946
-------------
BEVERAGES & TOBACCO--1.34%
448,000 Diageo PLC.............................. 5,160,194
-------------
BROADCASTING & PUBLISHING--2.44%
958,000 Mirror Group PLC........................ 3,482,964
488,000 United News & Media PLC................. 5,934,944
-------------
9,417,908
-------------
BUSINESS & PUBLIC SERVICES--1.52%
323,000 Securicor PLC........................... 3,018,934
319,000 WPP Group PLC........................... 2,827,596
-------------
5,846,530
-------------
FINANCIAL SERVICES--1.15%
418,000 Amvescap PLC............................ 4,451,530
-------------
FOOD & HOUSEHOLD PRODUCTS--0.98%
317,000 Reckitt & Colman PLC.................... 3,763,489
-------------
HEALTH & PERSONAL CARE--1.06%
104,936 Astrazeneca PLC......................... 4,091,969
-------------
LEISURE & TOURISM--0.81%
323,000 Carlton Communications PLC.............. 3,120,259
-------------
MATERIALS & COMMODITIES--0.83%
746,000 Bunzl PLC............................... 3,204,241
-------------
MULTI INDUSTRY--2.00%
233,000 Charter PLC............................. 1,720,456
1,966,000 Cookson Group PLC....................... 5,534,732
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
UNITED KINGDOM--(CONCLUDED)
MULTI INDUSTRY--(CONCLUDED)
<TABLE>
<C> <S> <C>
111,104 Tomkins PLC............................. $ 471,855
-------------
7,727,043
-------------
Total United Kingdom Common Stocks................. 49,532,109
-------------
UNITED STATES--37.10%
AEROSPACE & MILITARY TECHNOLOGY--0.19%
21,600 Lafarge Corp. ADR....................... 730,350
-------------
APPAREL, RETAIL--0.69%
80,000 TJX Companies, Inc...................... 2,665,000
-------------
APPAREL, TEXTILES--0.21%
23,600 Westpoint Stevens Inc.*................. 808,300
-------------
BANKS--1.96%
39,900 Bank of New York Co. Inc................ 1,596,000
38,700 The Chase Manhattan Corp................ 3,202,425
37,200 Mellon Bank Corp........................ 2,764,425
-------------
7,562,850
-------------
COMPUTER HARDWARE--2.68%
24,200 Cisco Systems Inc.*..................... 2,760,312
44,100 Compaq Computer Corp.................... 983,981
52,400 Dell Computer Corp.*.................... 2,158,225
27,700 Hewlett-Packard Co...................... 2,184,838
10,800 International Business Machines......... 2,259,225
-------------
10,346,581
-------------
COMPUTER SOFTWARE--2.21%
53,700 Autodesk, Inc........................... 1,597,575
20,100 BMC Software, Inc.*(1).................. 865,556
50,100 Cadence Design Systems, Inc.*........... 679,481
40,200 Compuware Corp.*........................ 979,875
18,100 Microsoft Corp.*........................ 1,471,756
34,900 Sterling Software Inc.*................. 721,994
70,000 Unisys Corp.*........................... 2,200,625
-------------
8,516,862
-------------
CONSUMER DURABLES--0.68%
27,900 Furniture Brands International Inc.*.... 699,244
28,200 Maytag Corp............................. 1,928,175
-------------
2,627,419
-------------
DEFENSE/AEROSPACE--1.14%
41,100 Allied-Signal, Inc...................... 2,414,625
</TABLE>
14
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
UNITED STATES--(CONTINUED)
DEFENSE/AEROSPACE--(CONCLUDED)
<TABLE>
<C> <S> <C>
34,800 Lockheed Martin Corp.................... $ 1,498,575
18,800 Newport News Shipbuilding Inc........... 492,325
-------------
4,405,525
-------------
DIVERSIFIED RETAIL--1.74%
40,000 Dayton Hudson Corp...................... 2,692,500
55,300 Family Dollar Stores Inc................ 1,334,113
40,200 Federated Department Stores, Inc.*...... 1,876,837
15,000 Fred Meyer Inc.*........................ 811,875
-------------
6,715,325
-------------
DRUGS & MEDICINE--2.06%
55,400 Amerisource Health Corp.*............... 1,533,888
10,700 Biogen Inc.*............................ 1,017,169
16,932 Cardinal Health, Inc.................... 1,012,745
31,700 Schering-Plough Corp.................... 1,531,506
25,400 Warner Lambert Co....................... 1,725,612
27,400 Watson Pharmaceuticals, Inc.*........... 1,109,700
-------------
7,930,620
-------------
ELECTRIC UTILITIES--0.61%
22,800 Consolidated Edison of New York, Inc.... 1,035,975
29,600 Energy East Corp........................ 782,550
22,500 Utilicorp United Inc.................... 549,844
-------------
2,368,369
-------------
ELECTRICAL EQUIPMENT--0.30%
30,100 SCI Systems Inc.*(1).................... 1,145,681
-------------
ENERGY RESERVES & PRODUCTION--0.87%
16,000 Mobil Corp.............................. 1,676,000
28,700 Royal Dutch Petroleum Co................ 1,684,331
-------------
3,360,331
-------------
ENTERTAINMENT--0.31%
29,200 Viacom, Inc., Class B*.................. 1,193,550
-------------
ENVIRONMENTAL SERVICES--0.53%
24,000 Allied Waste Industries Inc.*(1)........ 424,500
28,700 Waste Management, Inc................... 1,621,550
-------------
2,046,050
-------------
FINANCIAL SERVICES--0.87%
27,600 Associates First Capital Corp........... 1,223,025
26,900 CIT Group Inc........................... 874,250
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
UNITED STATES--(CONTINUED)
FINANCIAL SERVICES--(CONCLUDED)
<TABLE>
<C> <S> <C>
16,500 Marsh & McLennan Companies, Inc......... $ 1,263,281
-------------
3,360,556
-------------
FOOD RETAIL--0.43%
20,000 Food Lion Inc........................... 205,000
26,900 Kroger Co.*(1).......................... 1,461,006
-------------
1,666,006
-------------
FOREST PRODUCTS, PAPER--0.69%
38,000 Fort James Corp......................... 1,444,000
17,900 Weyerhaeuser Co......................... 1,201,538
-------------
2,645,538
-------------
GAS UTILITY--0.31%
25,200 Columbia Energy Group................... 1,211,175
-------------
INDUSTRIAL PARTS--2.20%
15,700 American Standard Companies, Inc.*...... 718,275
41,000 Ingersoll Rand Co....................... 2,836,687
48,200 Mettler Toledo International Inc.*...... 1,259,225
7,600 SPX Corp.*.............................. 496,375
22,000 United Technologies Corp................ 3,187,250
-------------
8,497,812
-------------
INDUSTRIAL SERVICES/SUPPLIES--0.63%
30,000 Tyco International Ltd.................. 2,437,500
-------------
INFORMATION & COMPUTER SERVICES--0.34%
9,400 Computer Sciences Corp.*................ 559,888
13,200 Valassis Communications Inc.*........... 739,200
-------------
1,299,088
-------------
LEISURE--0.53%
27,400 Eastman Kodak Co........................ 2,044,725
-------------
LIFE INSURANCE--1.27%
20,900 American General Corp................... 1,546,600
15,000 Lincoln National Corp................... 1,440,937
23,600 Protective Life Corp.................... 924,825
26,900 Reliastar Financial Corp................ 988,575
-------------
4,900,937
-------------
LONG DISTANCE & PHONE COMPANIES--2.69%
18,450 AT&T Corp............................... 931,725
40,000 BellSouth Corp.......................... 1,790,000
17,850 Century Telephone Enterprises, Inc...... 718,462
</TABLE>
15
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONCLUDED)
UNITED STATES--(CONTINUED)
LONG DISTANCE & PHONE COMPANIES--(CONCLUDED)
<TABLE>
<C> <S> <C>
28,500 GTE Corp................................ $ 1,907,719
20,000 MCI WorldCom Inc.*...................... 1,643,750
60,490 SBC Communications, Inc................. 3,387,440
-------------
10,379,096
-------------
MEDIA--0.29%
17,300 Comcast Corp., Class A.................. 1,136,394
-------------
MEDICAL PRODUCTS--0.23%
32,000 St. Jude Medical, Inc.*................. 892,000
-------------
MEDICAL PROVIDERS--0.24%
13,400 Wellpoint Health Networks Inc.*......... 941,350
-------------
MINING & METALS--0.26%
15,900 Martin Marietta Materials, Inc.......... 982,819
-------------
MOTOR VEHICLES--1.49%
27,600 Borg Warner Automotive, Inc............. 1,566,300
40,000 Ford Motor Co........................... 2,557,500
18,200 General Motors Corp..................... 1,618,662
-------------
5,742,462
-------------
OIL REFINING--0.82%
15,086 BP Amoco PLC, ADR....................... 1,707,547
26,900 Coastal Corp............................ 1,028,925
19,800 K N Energy, Inc......................... 408,375
-------------
3,144,847
-------------
OTHER INSURANCE--2.17%
9,700 ACE Ltd................................. 293,425
54,000 Allstate Corp........................... 1,964,250
17,200 Ambac Financial Group Inc............... 1,038,450
15,571 American International Group Inc........ 1,828,619
6,000 Loews Corp.............................. 439,125
24,000 MBIA Inc................................ 1,614,000
34,300 Travelers Property Casualty Corp........ 1,183,350
-------------
8,361,219
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
UNITED STATES--(CONCLUDED)
RESTAURANTS--0.56%
24,000 Brinker International Inc.*............. $ 663,000
26,400 CKE Restaurants, Inc.................... 432,300
30,150 Outback Steakhouse Inc.*................ 1,079,747
-------------
2,175,047
-------------
SECURITIES & ASSET MANAGEMENT--0.43%
16,800 Morgan Stanley Dean Witter & Co......... 1,666,350
-------------
SEMICONDUCTOR--1.83%
47,000 Applied Materials, Inc.*................ 2,520,375
38,600 Intel Corp.............................. 2,361,838
10,000 Uniphase Corp.*......................... 1,213,750
20,900 Vitesse Semiconductor Corp.............. 967,931
-------------
7,063,894
-------------
SPECIALTY RETAIL--1.65%
30,300 Home Depot, Inc......................... 1,816,106
79,600 Office Depot Inc.*(1)................... 1,751,200
34,650 Staples, Inc.*.......................... 1,039,500
33,100 Williams Sonoma Inc.*................... 959,900
21,400 Zale Corp.*............................. 809,188
-------------
6,375,894
-------------
THRIFT--0.63%
53,800 Dime Bancorp Inc........................ 1,240,763
33,600 Greenpoint Financial Corp............... 1,176,000
-------------
2,416,763
-------------
TOBACCO--0.36%
40,000 Philip Morris Co. Inc................... 1,402,500
-------------
Total United States Common Stocks.................. 143,166,785
-------------
Total Common Stocks (cost--$312,511,980)........... 373,126,601
-------------
</TABLE>
16
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- --------- ----------- --------- -------------
<S> <C> <C> <C> <C>
SHORT-TERM U.S. GOVERNMENT AND AGENCY [email protected]%
$ 4,000 United States Treasury Bills (cost--$3,961,278)................................. 07/22/99 4.250% $ 3,961,278
-------------
REPURCHASE AGREEMENTS--3.43%
Repurchase Agreement dated 04/30/99 with State Street Bank & Trust Company,
collateralized by $1,015,308 U.S. Treasury Bills, 4.350% due 07/15/99;
(value-- $1,005,662); proceeds: $985,328...................................... 05/03/99 4.000 985,000
985
Repurchase Agreement dated 04/30/99 with State Street Bank & Trust Company,
collateralized by $9,875,000 U.S. Treasury Bonds, 10.375% due 11/15/09;
(value-- $12,640,000); proceeds: $12,277,960.................................. 05/03/99 4.850 12,273,000
12,273
-------------
Total Repurchase Agreements (cost--$13,258,000).................................................................... 13,258,000
-------------
Total Investments (cost--$329,731,258)--101.16%.................................................................... 390,345,879
Liabilities in excess of other assets--(1.16)%..................................................................... (4,471,459)
-------------
Net Assets--100.00%................................................................................................ $ 385,874,420
-------------
-------------
</TABLE>
- -----------------
* Non-income producing security.
ADR American Depository Receipt.
(1) Security, or portion thereof, was on loan at April 30, 1999.
@ Interest Rate shown is the discount rate at date of purchase.
FUTURES CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF OUTSTANDING LONG FUTURE IN EXPIRATION APPRECIATION
CONTRACTS CONTRACTS EXCHANGE FOR DATES (DEPRECIATION)
- --------------- ------------------------------ ------------ ----------- -------------
<C> <S> <C> <C> <C>
18 CAC40 Ten Euro (France)....... $1,077,272 May 1999 $ 45,091
8 DAX Index (Germany)........... 1,108,323 June 1999 72,097
21 FTSE Index (United Kingdom)... 2,139,161 June 1999 107,470
4 Hang Seng Index (Hong Kong)... 343,870 May 1999 1,674
4 IBEX Plus (Spain)............. 437,867 May 1999 (8,045)
2 MIB 30 Index (Italy).......... 399,244 June 1999 (2,699)
37 OMX Index (Sweden)............ 341,030 May 1999 519
19 S&P 500 (U.S.)................ 6,453,375 June 1999 (105,000)
6 SPI Futures (Australia)....... 289,876 June 1999 4,499
22 Topix Index (Japan)........... 2,211,735 June 1999 235,620
-------------
$ 351,226
-------------
-------------
</TABLE>
17
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1999(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
COMMON STOCKS--96.55%
AUSTRALIA--22.51%
BANKS--4.15%
99,900 Australia & New Zealand Banking Group
Ltd................................... $ 791,323
95,900 Westpac Bank Corp.(1)................... 732,095
-------------
1,523,418
-------------
BREWERIES, PUBS & RESTAURANTS--1.46%
184,200 Foster's Brewing Group Ltd.............. 537,310
-------------
CONSTRUCTION/BUILDING MATERIALS--0.33%
49,500 Pioneer International Ltd............... 120,872
-------------
DIVERSIFIED INDUSTRIALS--3.20%
71,839 Broken Hill Propriety Co. Ltd.(1)....... 812,164
84,100 WMC Ltd................................. 363,415
-------------
1,175,579
-------------
ENGINEERING--0.92%
88,100 Pacific BBA Ltd......................... 338,141
-------------
EXTRACTIVE INDUSTRIES--3.33%
24,000 Brambles Industries Ltd.(1)............. 705,240
30,700 Rio Tinto Ltd........................... 517,035
-------------
1,222,275
-------------
LEISURE & HOTELS--1.29%
58,500 TABCORP Holdings Ltd.................... 475,775
-------------
MEDIA--2.25%
98,900 News Corp. Ltd.......................... 828,822
-------------
MINING--0.42%
99,000 Delta Gold NL........................... 153,956
-------------
OIL EXPLORATION & PRODUCTION--1.40%
75,300 Woodside Petroleum Ltd.................. 513,246
-------------
PROPERTY--1.48%
40,300 Lend Lease Corp. Ltd.................... 543,318
-------------
TELECOMMUNICATIONS--2.28%
154,700 Telstra Corp............................ 839,456
-------------
Total Australia Common Stocks...................... 8,272,168
-------------
HONG KONG--25.27%
BANKS--2.84%
310,600 Bank of East Asia....................... 755,362
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
HONG KONG--(CONCLUDED)
BANKS--(CONCLUDED)
<TABLE>
<C> <S> <C>
52,500 Dao Heng Bank Grp....................... $ 213,359
2,000 HSBC Holdings PLC....................... 74,313
-------------
1,043,034
-------------
COMMERCE/INDUSTRIAL--2.26%
133,000 Citic Pacific Ltd....................... 360,341
84,000 Swire Pacific Ltd....................... 471,423
-------------
831,764
-------------
COMMUNICATIONS--3.42%
276,000 China Telecom*.......................... 630,267
233,000 Hong Kong Telecom Co. Ltd............... 626,764
-------------
1,257,031
-------------
ELECTRICITY & GAS--1.08%
280,530 Hong Kong & China Gas Ltd............... 394,501
-------------
FOODS--0.53%
132,000 Dairy Farm International Holdings....... 195,360
-------------
LAND TRANSPORTATION--0.44%
736,000 Jiangsu Expressway...................... 160,475
-------------
REAL ESTATE--13.53%
130,000 Cheung Kong Holdings Ltd................ 1,182,428
311,000 China Resources Development Enterprises
Ltd................................... 523,616
110,000 Henderson Land Development Co. Ltd...... 665,592
117,000 Hutchison Whampoa Ltd................... 1,049,090
353,500 Kerry Properties Ltd.................... 394,501
132,000 Sun Hung Kai Properties Ltd............. 1,158,044
-------------
4,973,271
-------------
SERVICES--1.17%
311,000 Mandarin Oriental....................... 217,700
351,000 South China Morning Post................ 211,705
-------------
429,405
-------------
Total Hong Kong Common Stocks...................... 9,284,841
-------------
INDIA--5.61%
BANKS--0.20%
20,600 State Bank of India..................... 74,717
-------------
</TABLE>
18
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
INDIA--(CONCLUDED)
<TABLE>
<C> <S> <C>
CONSTRUCTION/BUILDING MATERIALS--0.25%
2,800 Associated Cement Co.................... $ 93,017
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT--0.47%
29,000 Bharat Heavy Electricals Ltd............ 114,875
16,000 Bharat Petroleum Corp................... 58,369
-------------
173,244
-------------
ENGINEERING VEHICLES--0.45%
13,600 Bajaj Auto Ltd.......................... 165,272
-------------
HOUSEHOLD GOODS & TEXTILES--1.03%
6,000 Hindustan Lever......................... 287,731
30,000 Reliance Industries Ltd................. 90,441
-------------
378,172
-------------
OIL EXPLORATION & PRODUCTION--0.72%
10,300 Castrol India Ltd....................... 196,239
17,000 Hindustan Petroleum Corp................ 68,056
-------------
264,295
-------------
PHARMACEUTICALS--0.38%
11,050 Ranbaxy Laboratories Ltd................ 139,448
-------------
SUPPORT SERVICES--0.42%
4,000 NIIT Ltd................................ 151,998
-------------
TELECOMMUNICATIONS--0.86%
54,400 Mahanagar Telephone Nigam Ltd........... 197,310
8,500 Videsh Sanchar Nigam Ltd................ 118,789
-------------
316,099
-------------
TOBACCO--0.83%
14,000 ITC Ltd................................. 305,913
-------------
Total India Common Stocks.......................... 2,062,175
-------------
INDONESIA--1.31%
COMMUNICATIONS--0.98%
96,000 P.T. Indosat............................ 185,518
389,000 P.T. Telekomunikasi Indonesia........... 173,478
-------------
358,996
-------------
FOODS--0.05%
23,000 Indofoods Sukses Mak.................... 18,235
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
INDONESIA--(CONCLUDED)
<TABLE>
<C> <S> <C>
MISCELLANEOUS MANUFACTURING--0.28%
57,000 P.T. Gudang Garam....................... $ 103,444
-------------
Total Indonesia Common Stocks...................... 480,675
-------------
KOREA--12.62%
BANKS--2.41%
64,840 Kookmin Bank............................ 883,810
-------------
COMMUNICATIONS--1.80%
303 SK Telecom Co. Ltd...................... 317,086
25,020 SK Telecom Co. Ltd.(1).................. 344,025
-------------
661,111
-------------
ELECTRICAL APPLIANCES--2.70%
12,908 Samsung Electronics Corp................ 992,672
-------------
ELECTRICITY & GAS--2.49%
31,800 Korea Electric Power Corp............... 915,069
-------------
IRON & STEEL--3.22%
12,800 Pohang Iron & Steel Co. Ltd............. 1,080,650
4,000 Pohang Iron & Steel Co. Ltd. ADR(1)..... 103,000
-------------
1,183,650
-------------
Total Korea Common Stocks.......................... 4,636,312
-------------
MALAYSIA--6.15%
CHEMICALS--0.36%
128,000 Chemical Co. Malaysia Berhad............ 132,581
-------------
COMMUNICATIONS--0.92%
143,500 Telekom Malaysia Berhad................. 338,358
-------------
CONSTRUCTION--0.89%
268,000 Gamuda Berhad........................... 327,242
-------------
ELECTRICITY & GAS--1.52%
51,000 Petronas Gas Berhad..................... 95,021
274,000 Tenaga Nasional Berhad.................. 464,358
-------------
559,379
-------------
FOODS--1.26%
484,000 IOI Corp. Berhad........................ 245,566
241,000 KFC Holdings (Malaysia) Berhad.......... 217,154
-------------
462,720
-------------
</TABLE>
19
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
MALAYSIA--(CONCLUDED)
<TABLE>
<C> <S> <C>
INSURANCE--0.04%
12,000 Malaysian Assurance Berhad.............. $ 12,429
-------------
METALS--0.36%
105,000 Kian Joo Can Factory Berhad............. 132,632
-------------
SERVICES--0.35%
77,000 Tanjong Berhad.......................... 128,874
-------------
SHIPPING--0.45%
130,000 Malaysia International Shipping
Berhad................................ 164,210
-------------
Total Malaysia Common Stocks....................... 2,258,425
-------------
NEW ZEALAND--1.98%
BUILDING & CONSTRUCTION--0.39%
86,300 Fletcher Challenge Building............. 143,077
-------------
COMMUNICATIONS--0.94%
66,300 Telecom Corp. of New Zealand Ltd.(1).... 345,352
-------------
FOOD PRODUCERS--0.03%
7,000 Carter Holt Harvey...................... 10,272
-------------
PHARMACEUTICALS--0.62%
62,300 Fisher & Paykel......................... 228,557
-------------
Total New Zealand Common Stocks.................... 727,258
-------------
PHILIPPINES--2.08%
BANKS--0.33%
12,000 Metropolitan Bank & Trust Co............ 119,921
-------------
COMMERCE/INDUSTRIAL--0.10%
97,000 Ayala Corp.............................. 35,076
-------------
COMMUNICATIONS--0.44%
5,000 Philippine Long Distance Telephone
Co.................................... 161,736
-------------
ELECTRICITY & GAS--0.53%
51,300 Manila Electric Co. Class B............. 195,621
-------------
FOODS--0.03%
6,000 San Miguel Corp. Class B................ 12,781
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
PHILIPPINES--(CONCLUDED)
<TABLE>
<C> <S> <C>
REAL ESTATE--0.65%
652,200 Ayala Land Inc.......................... $ 240,126
-------------
Total Philippines Common Stocks.................... 765,261
-------------
SINGAPORE--10.83%
BANKS--3.29%
58,500 Development Bank of Singapore Ltd....... 620,763
76,000 United Overseas Bank Ltd................ 586,924
-------------
1,207,687
-------------
COMMUNICATIONS--1.24%
246,700 Singapore Telecom....................... 456,663
-------------
LAND TRANSPORTATION--0.27%
17,000 Cycle & Carriage........................ 101,220
-------------
MISCELLANEOUS MANUFACTURING--0.80%
43,000 Natsteel Electronics Ord................ 144,491
27,000 Venture Manufacturing (Singapore) Ltd... 148,028
-------------
292,519
-------------
REAL ESTATE--1.63%
165,000 Allgreen Properties*.................... 100,189
75,000 City Development Ltd.................... 499,617
-------------
599,806
-------------
SERVICES--2.15%
53,642 Singapore Press Holdings Ltd............ 790,574
-------------
TEXTILES--0.45%
311,000 Courts Singapore........................ 165,006
-------------
TRANSPORTATION--1.00%
40,000 Singapore International Airlines........ 367,860
-------------
Total Singapore Common Stocks...................... 3,981,335
-------------
TAIWAN--6.04%
CHEMICALS--0.79%
181,324 Nan Ya Plastics......................... 288,344
-------------
COMMERCE/INDUSTRIAL--1.12%
31,390 Asustek Computer Inc. GDR............... 412,779
-------------
</TABLE>
20
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONCLUDED)
TAIWAN--(CONCLUDED)
<TABLE>
<C> <S> <C>
ELECTRICAL APPLIANCES--2.44%
152,000 Siliconware Precision Industries Co..... $ 271,926
185,000 Taiwan Semiconductor Manufacturing Co.
Ltd................................... 625,153
-------------
897,079
-------------
INSURANCE--0.43%
44,000 Cathay Life Insurance................... 157,431
-------------
IRON & STEEL--1.03%
478,000 China Steel Corp........................ 380,061
-------------
TEXTILES--0.23%
43,000 Nien Hsing Textile Co. Ltd.............. 84,817
-------------
Total Taiwan Common Stocks......................... 2,220,511
-------------
THAILAND--2.15%
BANKS--0.34%
15,000 Bangkok Bank Public Co. Ltd.*........... 44,915
52,500 Siam Commercial Bank.................... 37,190
16,000 Thai Farmers Bank PLC*.................. 44,457
-------------
126,562
-------------
COMMUNICATIONS--0.72%
5,000 Advanced Information Service PCL*....... 53,143
<CAPTION>
NUMBER OF
SHARES/WARRANTS VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
THAILAND--(CONCLUDED)
COMMUNICATIONS--(CONCLUDED)
<TABLE>
<C> <S> <C>
162,000 Telecom Asia Corp. PCL*(1).............. $ 139,843
21,000 Total Access Communication.............. 71,400
-------------
264,386
-------------
CONSTRUCTION--0.16%
2,000 Siam Cement*............................ 59,131
-------------
ELECTRICITY & GAS--0.50%
82,000 Electricity Generating Public Co.
Ltd................................... 182,493
-------------
MINING--0.43%
17,300 PTT Exploration & Production Public Co.
Ltd................................... 159,606
-------------
Total Thailand Common Stocks....................... 792,178
-------------
Total Common Stocks (cost--$33,215,551)............ 35,481,139
-------------
WARRANTS--0.01%
HONG KONG--0.01%
ELECTRICITY & GAS--0.01%
18,650 Hong Kong & China Gas Ltd., warrants
expiring 09/30/99; exercise price HKD
12.27 (cost--$0)...................... 3,104
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE
- --------- --------- ---------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENT--2.74%
$ 1,005 Repurchase Agreement dated 04/30/99 with State Street Bank & Trust Company,
collateralized by 1,000,000 U.S. Treasury Notes, 5.625% due 11/30/99
(value--$1,028,750); proceeds: $1,005,335 (cost--$1,005,000)...................... 05/03/99 4.000% 1,005,000
-----------
Total Investments (cost--$34,220,551)--99.30%........................................................................ 36,489,243
Other assets in excess of liabilities--0.70%......................................................................... 258,788
-----------
Net Assets--100.00%.................................................................................................. $36,748,031
-----------
-----------
</TABLE>
21
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
- -----------------
* Non-income producing securities
+ Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration normally to qualified institutional buyers.
ADR American Depository Receipt
GDR Global Depositary Receipts
HKD Hong Kong Dollars
(1) Security, or portion thereof, was on loan at April 30, 1999.
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
CONTRACT
TO IN MATURITY UNREALIZED
DELIVER EXCHANGE FOR DATES DEPRECIATION
---------- ----------------- --------- -----------
<S> <C> <C> <C> <C>
Hong Kong Dollars........................................................ 14,000,000 USD 1,768,570 03/03/00 $ (24,703)
-----------
-----------
</TABLE>
- -------------
USD United States Dollar
See accompanying notes to financial statements
22
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1999(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
COMMON STOCKS--83.51%
ARGENTINA--4.73%
BANKS--0.44%
1,100 Banco De Galicia Y Buenos Aires S.A. de
C.V. ADR.............................. $ 25,369
1,200 Banco Hipotecario S.A................... 13,685
-------------
39,054
-------------
BEVERAGES--0.34%
2,800 Quilmes Industrial S.A. ADR............. 30,625
-------------
DISTRIBUTORS--0.10%
3,000 Siderar S.A. ADR........................ 9,244
-------------
DIVERSIFIED INDUSTRIALS--0.29%
4,195 Perez Companc S.A. Class B.............. 26,020
-------------
GAS DISTRIBUTION--0.16%
7,400 Gas Natural Ban S.A. Class B............ 14,214
-------------
OIL EXPLORATION & PRODUCTION--1.87%
3,967 YPF Sociedad Anonima Class D ADR........ 166,614
-------------
TELECOMMUNICATIONS--1.53%
4,400 Telecom Argentina S.A................... 30,152
2,830 Telefonica de Argentina S.A. Class B
ADR................................... 105,771
-------------
135,923
-------------
Total Argentina Common Stocks...................... 421,694
-------------
BOTSWANA--0.26%
BREWERIES, PUBS & RESTAURANTS--0.26%
21,400 Sechaba Breweries Ltd.(2)............... 23,058
-------------
BRAZIL--1.04%
BREWERIES, PUBS & RESTAURANTS--0.33%
1,700 Companhia Brasileire De Distribuicao.... 29,644
-------------
DISTRIBUTORS--0.21%
870,000 Sider Nacional CIA...................... 18,594
-------------
ELECTRICITY--0.21%
280,000 Companhia Paulista de Forca e Luz....... 18,880
-------------
MEDIA--0.29%
1,300 Aracruz Celulose S.A. ADR............... 26,000
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
BRAZIL--(CONCLUDED)
<TABLE>
<C> <S> <C>
TELECOMMUNICATIONS--0.00%
300 Telecomunicacoes Brasileiras S.A. ADR... $ 24
-------------
Total Brazil Common Stocks......................... 93,142
-------------
CHILE--2.63%
BANKS--0.17%
900 Banco Santander Chile Series A ADR...... 15,525
-------------
BREWERIES, PUBS & RESTAURANTS--0.54%
1,000 Compania Cervecerias Unidas S.A. ADR.... 24,563
1,600 Embotelladora Andina S.A. ADR........... 23,400
-------------
47,963
-------------
DIVERSIFIED INDUSTRIALS--0.24%
2,000 Quinenco SA ADR......................... 21,500
-------------
ELECTRICITY--0.52%
2,150 Chilectra S.A. ADR+..................... 46,259
-------------
EXTRACTIVE INDUSTRIES--0.27%
646 Sociedad Quimica Y Minera de Chile S.A.
Series B ADR.......................... 23,712
-------------
RETAILERS, FOOD--0.32%
1,900 Distribucion Y Servicio D&S............. 28,737
-------------
TELECOMMUNICATIONS--0.57%
1,925 Compania de Telecomunicaciones de Chile
S.A. ADR.............................. 50,892
-------------
Total Chile Common Stocks.......................... 234,588
-------------
CHINA--0.39%
ELECTRICITY & GAS--0.31%
2,050 Huaneng Power International Inc. ADR.... 27,547
-------------
TRANSPORTATION--0.08%
48,000 Qingling Motors Co. Class H............. 7,493
-------------
Total China Common Stocks.......................... 35,040
-------------
CROATIA--0.34%
HEALTH/PERSONAL CARE--0.34%
1,950 Pliva D.D. GDR.......................... 30,420
-------------
</TABLE>
23
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
<TABLE>
<C> <S> <C>
CZECH REPUBLIC--0.56%
UTILITIES--0.56%
3,450 SPT Telecom A.S.*....................... $ 50,014
-------------
EGYPT--0.50%
CONSTRUCTION--0.37%
4,285 Arab International Construction......... 33,122
-------------
OTHER FINANCIAL--0.13%
1,100 EFG Hermes Holding S A E GDS............ 11,330
-------------
Total Egypt Common Stocks.......................... 44,452
-------------
GREECE--3.44%
BANKS--1.36%
1,034 Alpha Credit Bank....................... 73,809
700 National Bank of Greece................. 47,708
-------------
121,517
-------------
BEVERAGE/TOBACCO MANUFACTURING--0.68%
2,050 Hellenic Bottling Co. S.A............... 60,662
-------------
COMMUNICATIONS--0.33%
1,090 Stet Hellas Telecommunications*......... 29,430
-------------
COMPUTER/OFFICE EQUIPMENT--0.99%
3,782 Greek Telecom........................... 87,739
-------------
MEDIA--0.08%
630 Antenna Tv Sa........................... 7,403
-------------
Total Greece Common Stocks......................... 306,751
-------------
HONG KONG--1.98%
COMMERCE/INDUSTRIAL--0.37%
110,000 Beijing Datang Power Generation Company
Ltd................................... 32,996
-------------
COMMUNICATIONS--0.33%
13,000 China Telecom*.......................... 29,686
-------------
CONSTRUCTION--0.05%
2,000 Cheung Kong Infrastucture Holdings...... 4,180
-------------
FOODS--0.18%
17,000 NG Fung Hong Ltd........................ 16,449
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
HONG KONG--(CONCLUDED)
<TABLE>
<C> <S> <C>
GLASS & CERAMICS--0.11%
14,000 China Merchants Holdings
International......................... $ 9,844
-------------
REAL ESTATE--0.51%
27,000 China Resources Developement Enterprises
Ltd................................... 45,459
-------------
SHIPPING--0.36%
47,000 Cosco Pacific Ltd....................... 31,835
-------------
TRANSPORTATION EQUIPMENT--0.07%
38,000 Zhejiang Expressway Co. Ltd............. 6,324
-------------
176,773
Total Hong Kong Common Stocks......................
-------------
HUNGARY--1.35%
BANKS--0.25%
540 OTP Bank National Savings & Commerical
Bank.................................. 22,734
-------------
OIL--0.50%
2,000 Moayar Olaj-Es Gazipare Reszvnytaras AG
GDR................................... 44,500
-------------
UTILITIES--0.60%
1,920 Matav RT ADR(1)......................... 53,472
-------------
Total Hungary Common Stocks........................ 120,706
-------------
INDIA--6.24%
BANKS--0.21%
5,100 State Bank of India..................... 18,498
-------------
BUILDING MATERIALS--0.30%
800 Associated Cement Co.................... 26,576
-------------
ELECTRICAL EQUIPMENT--0.40%
9,000 Bharat Heavy Electricals Ltd............ 35,651
-------------
ELECTRICITY & GAS--0.08%
5,000 Tata Power Co.*......................... 7,286
-------------
ENGINEERING VEHICLES--0.36%
2,600 Bajaj Auto Ltd.......................... 31,596
-------------
HOUSEHOLD GOODS & TEXTILES--1.68%
2,150 Hindustan Lever......................... 103,103
</TABLE>
24
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
INDIA--(CONCLUDED)
HOUSEHOLD GOODS & TEXTILES--(CONCLUDED)
<TABLE>
<C> <S> <C>
15,600 Reliance Industry....................... $ 47,030
-------------
150,133
-------------
OIL EXPLORATION & PRODUCTION--0.21%
3,000 Bharat Petroleum Corp. Ltd.............. 10,944
2,000 Hindustan Petroleum Corp. Ltd........... 8,007
-------------
18,951
-------------
OIL, INTEGRATED--0.34%
1,600 Castrol India Ltd....................... 30,484
-------------
PHARMACEUTICALS--0.33%
2,300 Ranbaxy Laboratories Ltd................ 29,025
-------------
SUPPORT SERVICES--0.68%
1,600 Niit Ltd................................ 60,537
-------------
TELECOMMUNICATIONS--0.47%
9,700 Mahanagar Telephone Nigam Ltd........... 35,182
500 Videsh Sanchar Nigam Ltd................ 6,988
-------------
42,170
-------------
TOBACCO--1.18%
4,800 ITC Ltd................................. 104,884
-------------
Total India Common Stocks.......................... 555,791
-------------
INDONESIA--1.42%
COMMUNICATIONS--0.59%
11,000 P.T. Indosat............................ 21,257
71,000 P.T. Telekomunikasi Indonesia........... 31,663
-------------
52,920
-------------
FOODS--0.53%
18,000 H.M. Sampoerna*......................... 24,973
28,000 Indofoods Sukses Makmur*................ 22,199
-------------
47,172
-------------
MISCELLANEOUS MANUFACTURING--0.30%
14,500 P.T. Gudang Garam....................... 26,315
-------------
Total Indonesia Common Stocks...................... 126,407
-------------
ISRAEL--3.99%
BANKS--1.11%
22,430 Bank Hapoalim Ltd....................... 53,529
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
ISRAEL--(CONCLUDED)
BANKS--(CONCLUDED)
<TABLE>
<C> <S> <C>
26,460 Bank Leumi.............................. $ 45,278
-------------
98,807
-------------
PHARMACEUTICALS--0.82%
1,600 Teva Pharmaceutical Industries Ltd.,
ADS................................... 73,200
-------------
RETAIL TRADE--0.54%
17,850 Supersol Ltd.*.......................... 48,262
-------------
TELECOMMUNICATIONS--1.12%
2,710 ECI Telecommunications Ltd.............. 99,931
-------------
UTILITIES--0.40%
9,106 Bezek Israel Telecommunications......... 35,344
-------------
Total Israel Common Stocks......................... 355,544
-------------
KOREA--11.29%
BANKS--1.15%
7,501 Kookmin Bank............................ 102,243
-------------
CHEMICALS--0.94%
4,874 LG Chemicals Ord........................ 84,070
-------------
COMMUNICATIONS--0.21%
18 Korea Mobile Telecom Corp............... 18,837
-------------
CONSTRUCTION/BUILDING MATERIALS--1.09%
8,800 Shinhan Bank............................ 96,996
-------------
ELECTRICAL APPLIANCES--3.56%
4,121 Samsung Electronics Corp................ 316,920
-------------
ELECTRICITY & GAS--1.87%
4,900 Korea Electric Power Corp............... 141,001
1,600 Korea Electric Power Corp. ADR.......... 25,600
-------------
166,601
-------------
IRON & STEEL--1.90%
1,700 Pohang Iron & Steel Co. Ltd............. 143,524
1,000 Pohang Iron & Steel Ltd. ADR............ 25,750
-------------
169,274
-------------
OILS--0.28%
1,200 Yukong Ltd.............................. 25,242
-------------
</TABLE>
25
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
KOREA--(CONCLUDED)
<TABLE>
<C> <S> <C>
SECURITIES--0.29%
1,060 Daewoo Securities....................... $ 26,177
-------------
Total Korea Common Stocks.......................... 1,006,360
-------------
MALAYSIA--0.62%
ELECTRICITY & GAS--0.27%
14,000 Tenaga Nasional Berhad.................. 23,726
-------------
SERVICES--0.35%
6,000 Resorts World Berhad.................... 7,895
14,000 Tanjong PLC............................. 23,432
-------------
31,327
-------------
Total Malaysia Common Stocks....................... 55,053
-------------
MAURITIUS--0.14%
BANKS--0.14%
21,000 State Bank of Mauritius................. 12,237
-------------
MEXICO--14.22%
BANKS--0.83%
29,000 Grupo Financiero Banamex*............... 73,912
-------------
BEVERAGES--0.52%
17,500 Grupo Modelo S.A. de C.V................ 46,117
-------------
BREWERIES, PUBS & RESTAURANTS--1.06%
26,500 Fomento Economico Mexicano, S.A. de C.V.
Series B.............................. 94,643
-------------
BUILDING & CONSTRUCTION--0.72%
7,600 Consocio Ara, S.A. de C.V............... 27,883
9,800 Grupo Industrial Saltillo, S.A. de
C.V................................... 36,061
-------------
63,944
-------------
BUILDING MATERIALS & MERCHANTS--1.01%
19,395 Cemex, S.A. de C.V...................... 90,258
-------------
DIVERSIFIED INDUSTRIALS--0.57%
6,000 Alfa, S.A. de C.V. Series A............. 23,864
5,500 Grupo Carso, S.A. de C.V. Series A...... 26,518
-------------
50,382
-------------
EXTRACTIVE INDUSTRIES--0.28%
7,400 Industrias Penoles...................... 25,027
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
MEXICO--(CONCLUDED)
<TABLE>
<C> <S> <C>
FOOD, BEVERAGE & TOBACCO--0.29%
13,000 Grupo Sanborn*.......................... $ 25,747
-------------
FOOD PRODUCERS--0.58%
24,000 Grupo Industrial Bimbo, S.A. de C.V..... 51,688
-------------
MEDIA--0.84%
2,100 Grupo Televisa, S.A. de C.V............. 42,046
800 Grupo Televisa, S.A. de C.V. GDS........ 32,800
-------------
74,846
-------------
PAPER, PACKAGING & PRINTING--0.69%
15,900 Kimberly Clark de Mexico S.A. de C.V.... 61,948
-------------
RETAIL--0.50%
43,000 Controladora Commerical Mexicana........ 44,303
-------------
RETAILERS, GENERAL--1.71%
81,600 Cifra, S.A. de C.V. Series C............ 152,779
-------------
TELECOMMUNICATIONS--4.62%
5,440 Telefonos de Mexico, S.A. de C.V. ADR... 412,080
-------------
Total Mexico Common Stocks......................... 1,267,674
-------------
PAKISTAN--0.49%
CHEMICALS--0.33%
11,878 Engro Chemicals Pakistan Ltd............ 19,767
9,000 Fauji Fertilizer Co. Ltd................ 9,503
-------------
29,270
-------------
ELECTRICITY--0.15%
39,000 Hub Power Co.*.......................... 12,881
-------------
OIL EXPLORATION & PRODUCTION--0.01%
662 Pakistan State Oil Company Ltd.*........ 1,165
-------------
Total Pakistan Common Stocks....................... 43,316
-------------
PERU--0.94%
BANKS--0.24%
41,000 Banco Continental....................... 21,256
-------------
BUILDING & CONSTRUCTION--0.00%
1 Cementos Norte Pacasmayo, S.A........... 1
-------------
</TABLE>
26
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
PERU--(CONCLUDED)
<TABLE>
<C> <S> <C>
EXTRACTIVE INDUSTRIES--0.20%
1,100 Compania De Minas Buenaventura.......... $ 17,738
-------------
TELECOMMUNICATIONS--0.50%
3,000 Telefonica Del Peru S.A. Class B ADS.... 45,187
-------------
Total Peru Common Stocks........................... 84,182
-------------
PHILIPPINES--2.30%
BANKS--0.22%
2,000 Metropolitan Bank & Trust Co............ 19,987
-------------
COMMERCE/INDUSTRIAL--0.51%
127,000 Ayala Corp*............................. 45,924
-------------
COMMUNICATIONS--0.45%
1,231 Philippine Long Distance Telephone
Co.................................... 39,819
-------------
ELECTRICITY & GAS--0.59%
13,861 Manila Electric Co. Class B............. 52,856
-------------
FOODS--0.11%
4,500 San Miguel Corporation Class B.......... 9,586
-------------
REAL ESTATE--0.42%
101,104 Ayala Land Inc.......................... 37,224
-------------
Total Philippines Common Stocks.................... 205,396
-------------
POLAND--1.60%
BANKS--0.22%
1,180 Bank Handlowy Warsza.................... 14,327
110 Bank Przemyslowo-Handlowy S.A........... 5,620
-------------
19,947
-------------
DIVERSIFIED HOLDINGS COMPANIES--0.89%
6,650 Elektrim Spolka Akcyjna S.A............. 79,056
-------------
UTILITIES--0.49%
7,100 Telekomunikacja Cta Polska*............. 43,310
-------------
Total Poland Common Stocks......................... 142,313
-------------
PORTUGAL--0.06%
RETAILERS, GENERAL--0.06%
180 Jeronimo Martins*....................... 5,762
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
RUSSIA--1.27%
ELECTRICITY--0.15%
2,440 Unified Energy System GDR*.............. $ 13,664
-------------
OILS--0.91%
1,240 Lukoil Holdings ADR..................... 42,799
5,280 Surgutneftegaz ADR...................... 38,280
-------------
81,079
-------------
OTHER ENERGY--0.21%
7,890 Ao Mosenergo ADR........................ 18,739
-------------
Total Russia Common Stocks......................... 113,482
-------------
SOUTH AFRICA--8.37%
BANKS--0.37%
6,200 Amalgamated Banks of South Africa....... 32,605
-------------
BREWERIES, PUBS & RESTAURANTS--0.51%
5,417 South African Breweries Ltd.*........... 45,401
-------------
DIVERSIFIED INDUSTRIALS--1.65%
12,477 Barlow Ltd.............................. 74,841
38,900 Malbak Ltd. Ord......................... 22,375
6,500 Rembrandt Group Ltd..................... 49,404
-------------
146,620
-------------
EXTRACTIVE INDUSTRIES--1.44%
2,495 Anglo American Corporation of South
Africa Ltd. S.A....................... 128,748
-------------
FINANCIAL SERVICES--0.52%
41,850 First Rand Ltd.......................... 46,080
-------------
INSURANCE--0.43%
39,318 Sanlam Ltd.*............................ 38,575
-------------
LIFE ASSURANCE--0.45%
2,788 Liberty Life Association................ 40,182
-------------
OIL EXPLORATION & PRODUCTION--0.60%
7,615 Sasol Ltd............................... 53,812
-------------
OTHER FINANCIAL--0.34%
3,400 Fedsure Holdings Ltd.................... 30,452
-------------
PAPER, PACKAGING & PRINTING--0.96%
9,600 Nampak Ltd.............................. 20,273
</TABLE>
27
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
SOUTH AFRICA--(CONCLUDED)
PAPER, PACKAGING & PRINTING--(CONCLUDED)
<TABLE>
<C> <S> <C>
9,000 Sappi................................... $ 65,078
-------------
85,351
-------------
PHARMACEUTICALS--0.32%
5,500 South African Druggist Ltd.............. 28,833
-------------
RETAILERS, GENERAL--0.78%
6,000 Ellerine Holdings Ltd................... 23,911
13,773 LA Retail Stores Ltd.................... 19,239
31,142 Metro Cash And Carry.................... 26,101
-------------
69,251
-------------
Total South Africa Common Stocks................... 745,910
-------------
TAIWAN--7.59%
BANKS--1.31%
16,000 Bank Sinopac............................ 11,254
32,000 First Bank.............................. 53,333
31,000 Hua Nan Bank............................ 52,141
-------------
116,728
-------------
CHEMICALS--0.71%
39,885 Nan Ya Plastic.......................... 63,426
-------------
COMMERCE/INDUSTRIAL--0.47%
4,000 Asustek Computer........................ 41,835
-------------
ELECTRICAL APPLIANCES--2.46%
24,000 Acer Inc................................ 35,083
16,000 Siliconware Precision Industries Co.
GDR................................... 28,624
46,000 Taiwan Semiconductor Manufacturing
Company Ltd........................... 155,443
-------------
219,150
-------------
IRON & STEEL--0.65%
73,000 China Steel Corp........................ 58,043
-------------
LIFE ASSURANCE--1.17%
29,000 Cathay Life Insurance................... 103,761
-------------
MACHINERY--0.12%
2,000 Hon Hai Precision....................... 10,887
-------------
SHIPPING--0.61%
42,000 Evergreen Marine........................ 54,330
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
TAIWAN--(CONCLUDED)
<TABLE>
<C> <S> <C>
TEXTILES--0.09%
6,000 Far East Textile........................ $ 8,055
-------------
Total Taiwan Common Stocks......................... 676,215
-------------
THAILAND--2.46%
BANKS--0.20%
4,000 Bangkok Bank Public Co. Ltd.*........... 11,977
2,200 Thai Farmers Bank PCL*.................. 6,113
-------------
18,090
-------------
COMMUNICATIONS--0.89%
3,500 Advanced Information Service PCL*....... 37,200
13,000 Telecom Asia Corporation PCL*........... 11,222
9,000 Total Access Communication Public
Company Ltd........................... 30,600
-------------
79,022
-------------
CONSTRUCTION--0.43%
1,300 Siam Cement Co.*........................ 38,435
-------------
ELECTRICITY & GAS--0.39%
15,500 Electricity Generating Public Co.
Ltd................................... 34,496
-------------
MINING--0.55%
5,300 PTT Exploration & Production Public
Company Ltd........................... 48,897
-------------
Total Thailand Common Stocks....................... 218,940
-------------
TURKEY--2.74%
BANKS--1.37%
1,762,595 Akbank.................................. 56,225
2,726,742 Yapi ve Kredi Bankasi A.S............... 65,410
-------------
121,635
-------------
ELECTRICAL EQUIPMENT--0.16%
134,380 Vestel Elektronik Sanayi ve Ticarer*.... 14,403
-------------
FINANCIAL INSTITUTIONS/SERVICES--0.56%
1,814,660 Haci Omer Sabanci....................... 49,782
-------------
RETAIL--0.54%
35,130 Migros Turk T.A.S....................... 48,410
-------------
</TABLE>
28
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONCLUDED)
TURKEY--(CONCLUDED)
<TABLE>
<C> <S> <C>
UTILITIES--0.11%
422,184 Northern Electric Telekomunikasyon
A.S................................... $ 9,912
-------------
Total Turkey Common Stocks......................... 244,142
-------------
ZIMBABWE--0.55%
LEISURE & HOTELS--0.42%
400,000 Econet Wireless Holdings................ 37,212
-------------
OTHER FINANCIAL--0.13%
39,000 NMBZ Holdings Ltd.*..................... 11,700
-------------
48,912
Total Zimbabwe Common Stocks.......................
-------------
Total Common Stocks (cost--$6,696,894)............. 7,444,274
-------------
PREFERRED STOCKS--9.25%
BRAZIL--9.15%
BANKS--2.25%
5,620,000 Banco Bradesco S.A...................... 29,944
67,000 Banco Itau S.A.......................... 35,295
7,200 Companhia Vale Do Rio Doce.............. 135,677
-------------
200,916
-------------
BREWERIES, PUBS & RESTAURANTS--0.52%
93,000 Cia Cervejaria Brahma................... 46,472
-------------
BUILDING MATERIALS & MERCHANTS--0.16%
130,000 Companhia Cimento Portland Itau (CIA)... 14,087
-------------
ELECTRICITY--1.15%
3,548,000 Centrais Electricas Brasileiras S.A.
(Electrobras)......................... 75,083
3,400 Companhia Paranaense De ADR............. 27,837
-------------
102,920
-------------
ENGINEERING--0.49%
2,800,000 Gerdau S.A. Siderurgia.................. 43,694
-------------
OIL EXPLORATION & PRODUCTION--0.80%
436,000 Petroleo Brasileiros S.A. (Petrobras)... 70,873
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
</TABLE>
BRAZIL--(CONCLUDED)
<TABLE>
<C> <S> <C>
SUPPORT SERVICES--0.59%
2,168,524 Companhia Energetica de Minas Gerias
(CEMIG)............................... $ 52,222
-------------
TELECOMMUNICATIONS--3.19%
1,900 Embratel Participacoes S. A. ADR........ 30,875
6,920,000 Tele Centro Sul Part.................... 74,991
300 Telecomunicacoes Brasileiras............ 27,356
897,864 Telecomunicacoes de Sao Paulo S.A.
(Electrobras)......................... 112,166
129,472 Telecomunicacoes do Parana S.A.
(Telepar)............................. 18,489
472,864 Telesp Celular S.A...................... 20,213
-------------
284,090
-------------
Total Brazil Preferred Stocks...................... 815,274
-------------
THAILAND--0.10%
BANKS--0.10%
12,500 Siam Commercial Bank.................... 8,855
-------------
Total Preferred Stocks (cost--$997,197)............ 824,129
-------------
WARRANTS--0.94%
KOREA--0.94%
TELECOMMUNICATIONS--0.94%
100 SK Telcom, Warrants expiring 02/26/01... 83,737
-------------
RIGHTS--0.04%
GREECE--0.04%
BANKS--0.04%
1,040 National Bank Greece, rights expiring
05/28/99.............................. 3,208
-------------
Total Investments (cost--$7,746,292)--93.74%....... 8,355,348
Other assets in excess of liabilities--6.26%....... 558,384
-------------
Net Assets--100.00%................................ $ 8,913,732
-------------
-------------
</TABLE>
29
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
- ---------------
* Non-income producing securities
+ Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration; normally to qualified institutional buyers.
ADR American Depositary Receipts
GDR Global Depositary Receipts
GDS Global Depositary Shares
(1) Security or portion thereof, was on loan at April 30, 1999.
(2) Illiquid securities represent 0.26% of net assets.
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
CONTRACT UNREALIZED
TO IN MATURITY APPRECIATION
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
---------- ------------ --------- -------------
<S> <C> <C> <C> <C>
Brazilian Real.............................................................. 150,018 USD 110,00 06/16/99 $ 23,988
Brazilian Real.............................................................. 70,000 USD 50,000 06/22/99 9,981
Hong Kong Dollars........................................................... 755,000 USD 94,603 06/21/00 (2,273)
-------------
$ 31,696
-------------
-------------
</TABLE>
- -----------------
USD United States Dollars
See accompanying notes to financial statements
30
<PAGE>
PAINEWEBBER
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1999(UNAUDITED)
<TABLE>
<CAPTION>
EMERGING
GLOBAL EQUITY ASIA PACIFIC MARKETS
FUND GROWTH FUND EQUITY FUND
------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS
Investments, at value (cost--$329,731,258,
$34,220,551 and $7,746,292, respectively)..... $ 390,345,879 $ 36,489,243 $ 8,355,348
Investments of cash collateral received for
securities loaned, at value
(cost--$48,019,535, $2,923,880 and $49,300,
respectively)................................. 48,019,535 2,923,880 49,300
Cash............................................ 10,004,883 294,920 186,921
Cash denominated in foreign currencies, at value
(cost--$242,165, $244,224 and $216,054,
respectively)................................. 228,913 247,653 216,047
Receivable for investments sold................. 1,684,221 739,679 185,121
Receivable for shares of beneficial interest
sold.......................................... 57,558 136,908 106,508
Dividends and interest receivable............... 2,181,461 62,399 32,975
Futures variation margin receivable............. 38,679 -- --
Deferred organizational expenses................ -- 87,568 --
Unrealized appreciation of forward foreign
currency contracts............................ -- -- 33,969
Other assets.................................... 237,742 5,070 32,715
------------- --------------- ---------------
Total assets.................................... 452,798,871 40,987,320 9,198,904
------------- --------------- ---------------
LIABILITIES
Collateral for securities loaned................ 48,019,535 2,923,880 49,300
Payable for investments purchased............... 17,076,189 1,052,365 154,062
Payable for shares of beneficial interest
repurchased................................... 947,266 38,525 10,409
Payable to affiliates........................... 402,829 53,250 4,890
Unrealized depreciation of foreign currency
contracts..................................... -- 24,703 2,273
Accrued expenses and other liabilities.......... 478,632 146,566 64,238
------------- --------------- ---------------
Total liabilities............................... 66,924,451 4,239,289 285,172
------------- --------------- ---------------
NET ASSETS
Beneficial interest shares of $0.001 par value
outstanding (unlimited amount authorized)..... 289,311,430 64,612,709 27,738,687
Accumulated net investment income (loss)........ 436,927 (363,218) (15,132)
Accumulated net realized gains (losses) from
investments and foreign currency.............. 35,191,858 (29,711,968) (19,438,833)
Net unrealized appreciation of investments and
other assets and liabilities denominated in
foreign currencies............................ 60,934,205 2,210,508 629,010
------------- --------------- ---------------
Net assets...................................... $ 385,874,420 $ 36,748,031 $ 8,913,732
------------- --------------- ---------------
------------- --------------- ---------------
CLASS A:
Net assets...................................... $ 244,501,134 $ 14,092,587 $ 4,773,099
------------- --------------- ---------------
Shares outstanding.............................. 13,703,725 1,563,755 565,870
------------- --------------- ---------------
Net asset and redemption value per share........ $17.84 $9.01 $8.43
----- ---- -----
----- ---- -----
Maximum offering price per share (net asset
value plus sales charge of 4.50% of offering
price)........................................ $18.68 $9.43 $8.83
----- ---- -----
----- ---- -----
CLASS B:
Net assets...................................... $ 45,630,180 $ 14,006,160 $ 481,051
------------- --------------- ---------------
Shares outstanding.............................. 2,712,686 1,578,131 58,592
------------- --------------- ---------------
Net asset value and offering price per share.... $16.82 $8.88 $8.21
----- ---- -----
----- ---- -----
CLASS C:
Net assets...................................... $ 39,222,117 $ 8,551,871 $ 2,728,543
------------- --------------- ---------------
Shares outstanding.............................. 2,328,232 963,156 335,314
------------- --------------- ---------------
Net asset value and offering price per share.... $16.85 $8.88 $8.14
----- ---- -----
----- ---- -----
CLASS Y:
Net assets...................................... $ 56,520,989 $ 97,413 $ 931,039
------------- --------------- ---------------
Shares outstanding.............................. 3,103,226 10,862 109,270
------------- --------------- ---------------
Net asset value, offering price and redemption
value per share............................... $18.21 $8.97 $8.52
----- ---- -----
----- ---- -----
</TABLE>
See accompanying notes to financial statements
31
<PAGE>
PAINEWEBBER
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 1999(UNAUDITED)
<TABLE>
<CAPTION>
GLOBAL ASIA PACIFIC EMERGING MARKETS
EQUITY FUND GROWTH FUND EQUITY FUND
------------ ------------ ----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $228,003, $19,418 and $11,753,
respectively).................................................................... $ 3,165,502 $ 283,110 $ 81,021
Interest........................................................................... 606,260 19,949 2,934
------------ ------------ ----------------
3,771,762 303,059 83,955
------------ ------------ ----------------
EXPENSES:
Investment advisory and administration............................................. 1,679,295 185,416 46,549
Service fees--Class A.............................................................. 311,381 14,817 5,184
Service and distribution fees--Class B............................................. 251,365 62,555 2,230
Service and distribution fees--Class C............................................. 204,341 32,364 11,633
Custody and accounting............................................................. 498,733 54,235 14,399
Transfer agency and related services fees.......................................... 188,489 30,276 10,070
Reports and notices to shareholders................................................ 102,885 23,331 8,718
Legal and audit.................................................................... 57,351 44,463 36,130
State registration fees............................................................ 28,075 58,607 13,018
Trustees' fees..................................................................... 7,810 7,810 7,810
Amortization of organizational expenses............................................ -- 15,113 8,801
Other expenses..................................................................... 3,995 1,260 1,802
------------ ------------ ----------------
3,333,720 530,247 166,344
Less: Fee waivers and reimbursements from adviser.................................. -- -- (62,337)
------------ ------------ ----------------
Net expenses....................................................................... 3,333,720 530,247 104,007
------------ ------------ ----------------
Net investment income (loss)....................................................... 438,042 (227,188) (20,052)
------------ ------------ ----------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT TRANSACTIONS:
Net realized gains (losses) from:
Investments.................................................................... 33,719,859 (1,176,220) (627,583)
Foreign currency transactions.................................................. (995,310) (60,319) (405,930)
Futures transactions........................................................... 6,095,175 -- --
Net change in unrealized appreciation/depreciation of:
Investments.................................................................... 20,321,098 10,302,221 3,054,500
Futures........................................................................ (2,513,158) -- --
Other assets and liabilities denominated in foreign currencies................. (141,269) (9,473) 35,261
------------ ------------ ----------------
NET REALIZED AND UNREALIZED GAINS FROM INVESTMENT TRANSACTIONS..................... 56,486,395 9,056,209 2,056,248
------------ ------------ ----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................... $ 56,924,437 $8,829,021 $ 2,036,196
------------ ------------ ----------------
------------ ------------ ----------------
</TABLE>
See accompanying notes to financial statements
32
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS
ENDED FOR THE YEAR
APRIL 30, 1999 ENDED
(UNAUDITED) OCTOBER 31, 1998
---------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss).................... $ 438,042 $ (81,072)
Net realized gains (losses) from:
Investments................................... 33,719,859 14,395,205
Foreign currency transactions................. (995,310) 481,069
Futures contracts............................. 6,095,175 4,092,682
Net changes in unrealized
appreciation/depreciation of:
Investments................................... 20,321,098 934,114
Futures....................................... (2,513,158) 2,864,384
Other assets and liabilities denominated in
foreign currencies............................ (141,269) 69,896
---------------- ----------------
Net increase in net assets resulting from
operations.................................... 56,924,437 22,756,278
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income Class A................... (270,090) --
Net investment income Class Y................... (131,022) --
Net realized gains from investment
transactions--Class A......................... (11,886,871) (37,180,745)
Net realized gains from investment
transactions--Class B......................... (2,646,732) (11,285,760)
Net realized gains from investment
transactions--Class C......................... (2,064,240) (7,351,661)
Net realized gains from investment
transactions--Class Y......................... (2,546,029) (7,350,899)
---------------- ----------------
(19,544,984) (63,169,065)
---------------- ----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares............ 277,808,923 714,822,072
Cost of shares repurchased...................... (344,474,311) (831,906,775)
Proceeds from dividends reinvested.............. 18,643,466 59,838,962
---------------- ----------------
Net decrease in net assets from beneficial
interest transactions......................... (48,021,922) (57,245,741)
---------------- ----------------
Net decrease in net assets...................... (10,642,469) (97,658,528)
NET ASSETS:
Beginning of period............................. 396,516,889 494,175,417
---------------- ----------------
End of period (including undistributed net
investment income of $436,927 and $399,997,
respectively)................................. $385,874,420 $396,516,889
---------------- ----------------
---------------- ----------------
</TABLE>
See accompanying notes to financial statements
33
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS
ENDED FOR THE YEAR
APRIL 30, 1999 ENDED
(UNAUDITED) OCTOBER 31, 1998
---------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss............................. $ (227,188) $ (199,382)
Net realized losses from:
Investments................................... (1,176,220) (26,226,085)
Foreign currency transactions................. (60,319) (76,554)
Net change in unrealized
appreciation/depreciation of:
Investments................................... 10,302,221 14,069,096
Other assets and liabilities denominated in
foreign currencies............................ (9,473) (46,985)
---------------- ----------------
Net increase (decrease) in net assets resulting
from operations............................... 8,829,021 (12,479,910)
---------------- ----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares............ 6,877,504 23,242,085
Cost of shares repurchased...................... (9,497,640) (38,524,648)
---------------- ----------------
Net decrease in net assets from beneficial
interest transactions......................... (2,620,136) (15,282,563)
---------------- ----------------
Net increase (decrease) in net assets........... 6,208,885 (27,762,473)
NET ASSETS:
Beginning of period............................. 30,539,146 58,301,619
---------------- ----------------
End of period................................... $ 36,748,031 $ 30,539,146
---------------- ----------------
---------------- ----------------
</TABLE>
See accompanying notes to financial statements
34
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 1999 ENDED
(UNAUDITED) OCTOBER 31, 1998
--------------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss............................. $ (20,052) $ (57,683)
Net realized losses from:
Investments................................... (627,583) (2,824,156)
Foreign currency transactions................. (405,930) (136,681)
Net change in unrealized
appreciation/depreciation of:
Investments................................... 3,054,500 (1,564,207)
Other assets and liabilities denominated in
foreign currencies............................ 35,261 (24,657)
----------- ----------------
Net increase (decrease) in net assets resulting
from operations............................... 2,036,196 (4,607,384)
----------- ----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares............ 1,110,506 9,078,922
Cost of shares repurchased...................... (2,383,528) (22,538,713)
----------- ----------------
Net decrease in net assets from beneficial
interest transactions......................... (1,273,022) (13,459,791)
----------- ----------------
Net increase (decrease) in net assets........... 763,174 (18,067,175)
NET ASSETS:
Beginning of period............................. 8,150,558 26,217,733
----------- ----------------
End of period (including undistributed net
investment income of $4,920 at October 31,
1998)......................................... $ 8,913,732 $ 8,150,558
----------- ----------------
----------- ----------------
</TABLE>
See accompanying notes to financial statements
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The PaineWebber Global Equity Fund ("Global Equity Fund"), a diversified
series of PaineWebber Investment Trust ("Investment Trust"), the PaineWebber
Asia Pacific Growth Fund ("Asia Pacific Growth Fund"), a diversified series of
PaineWebber Managed Investments Trust ("Managed Trust") and the PaineWebber
Emerging Markets Equity Fund ("Emerging Markets Equity Fund"), a diversified
series of PaineWebber Investment Trust II ("Investment Trust II") (each a
"Fund"), are registered with the Securities and Exchange Commission under the
Investment Company Act of 1940, as amended, as open-end management investment
companies. Global Equity Fund seeks long-term growth of capital by investing
primarily in U.S. and foreign equity securities. Asia Pacific Growth Fund seeks
long-term capital appreciation by investing primarily in equity securities of
companies in the Asia Pacific region, excluding Japan. Emerging Markets Equity
Fund seeks long-term capital appreciation by investing primarily in equity
securities of companies in emerging market countries. (Investment Trust,
Investment Trust II and Managed Trust are each sometimes referred to herein as a
"Trust.") Organizational costs have been deferred and are being (or, in the case
of Global Equity Fund, have been) amortized using the straight-line method over
a period not to exceed 60 months from the date the Funds commenced operations.
Currently, each Fund offers Class A, Class B, Class C and Class Y shares. Each
class represents interests in the same assets of the Fund, and the classes are
identical except for differences in their sales charge structures, ongoing
service and distribution charges and certain transfer agency and related
expenses. In addition, Class B shares and all corresponding dividend reinvested
shares automatically convert to Class A shares approximately six years after
initial issuance. All classes of shares have equal voting privileges, except
that Class A, Class B and Class C shares have exclusive voting rights with
respect to their service and/or distribution plan.
The preparation of financial statements in accordance with generally accepted
accounting principles requires the Funds' management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies:
VALUATION 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"), an asset management subsidiary of
PaineWebber Incorporated ("PaineWebber") and investment adviser, administrator
and distributor of each Fund, or a Fund's sub-adviser, Invista Capital
Management, Inc. ("Invista") (for foreign investments only), for Global Equity
Fund, or Schroder Capital Management International Inc. ("Schroder"), for
Emerging Markets Equity Fund and the Asia Pacific Growth Fund, as the primary
market. Securities traded in the over-the-counter ("OTC") market and listed on
the Nasdaq Stock Market, Inc. ("Nasdaq") are valued at the last trade price on
Nasdaq prior to the time of valuation. When market quotations are not readily
available, securities are valued based upon appraisals derived from information
concerning those securities or similar securities received from a recognized
dealer in those securities. The amortized cost method of valuation, which
approximates market value, is used to value short-term debt instruments with 60
days
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
or less remaining to maturity unless a Trust's Board determines that this does
not represent fair value. 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 each Trust's Board.
All investments quoted in foreign currencies are valued daily in U.S. dollars
on the basis of the foreign currency exchange rates prevailing at the time such
valuation is determined by each Fund's custodian, unless each Trust's Board
determines that this does not represent fair value. Foreign currency exchange
rates are generally determined prior to the close of trading on 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 trading on the NYSE, which will not be reflected in
a computation of each Fund's net asset value. If events materially affecting the
value of such investments or currency exchange rates occur during such time
period, the investments will be valued at their fair value as determined in good
faith by or under the direction of a Trust's Board.
REPURCHASE AGREEMENTS--Each 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 Funds have 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 Funds occasionally
participate in joint repurchase agreement transactions with other funds managed
by Mitchell Hutchins.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
recorded on the trade date. Realized gains and losses from investment and
foreign exchange transactions are calculated using the identified cost method.
Dividend income is recorded on the ex-dividend date ("ex-date") (except in the
case of certain foreign dividends which are recorded as soon after the
ex-dividend date as each Fund using reasonable diligence becomes aware of such
dividends). Interest income is recorded on an accrual basis. Discounts are
accreted and premiums are amortized as adjustments to interest income and the
identified cost of investments.
Income, expenses (excluding class-specific expenses) and realized/unrealized
gains/losses are allocated proportionately to each class of shares based upon
the relative net asset value of outstanding shares (or the value of dividend-
eligible shares, as appropriate) 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 each Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into 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.
Although the net assets and the market values of each Fund's securities are
presented at the foreign exchange rates at the end of the period, the Funds do
not generally isolate the effect of fluctuations in foreign exchange rates from
the effect of the changes in market prices of securities. However, the Funds 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
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
debt obligations pursuant to 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. Net realized foreign currency gain (loss) is treated as
ordinary income for income tax reporting purposes. Gains/losses from translating
foreign currency denominated assets and liabilities at year-end exchange rates
are included in the change in unrealized appreciation/depreciation of other
assets and liabilities denominated in foreign currencies.
FUTURES CONTRACTS--Using financial futures contracts involves various market
risks. The maximum amount at risk from the purchase of a futures contract is the
contract value. The Funds use financial futures contracts for hedging purposes,
and in the case of Global Equity Fund, to adjust Global Equity's exposure to
U.S. and foreign equity markets in connection with a reallocation of that Fund's
assets. However, imperfect correlations between futures contracts and the
related portfolio securities or markets, or market disruptions, do not normally
permit full control of these risks at all times.
Upon entering into a financial futures contract, a Fund is required to pledge
to a broker an amount equal to a certain percentage of the contract amount. This
amount is known as the "initial margin." Subsequent payments, known as
"variation margin," are made or received by the Fund each day, depending on the
daily fluctuations in the value of the underlying financial futures contracts.
Such variation margin is recorded for financial statement purposes on a daily
basis as an unrealized gain or loss until the financial futures contract is
closed, at which time the net gain or loss is reclassified to realized.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-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.
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. These risks are greater with respect to securities of issuers located
in emerging market countries in which each of the Funds invest. The ability of
the issuers of debt securities held by a Fund to meet their obligations may be
affected by economic and political developments in a specific industry, country
or region.
INVESTMENT ADVISER AND ADMINISTRATOR
Each Fund has an investment advisory and administration contract ("Advisory
Contract") with Mitchell Hutchins, under which Mitchell Hutchins serves as
investment adviser and administrator of the Fund. In accordance with the
Advisory Contract for the Global Equity Fund, Mitchell Hutchins receives
compensation from the Fund, computed daily and paid monthly, at an annual rate
of 0.85% of the Fund's average daily net assets up to and including $500
million,
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
0.83% of its average daily net assets over $500 million and up to and including
$1 billion and 0.805% of its average daily net assets over $1 billion. In
accordance with the Advisory Contract for the Asia Pacific Growth Fund, Mitchell
Hutchins receives compensation from the Fund, computed daily and paid monthly,
at an annual rate of 1.20% of the Fund's average daily net assets up to and
including $100 million and 1.10% of its average daily net assets over $100
million. In accordance with the Advisory Contract for the Emerging Markets
Equity Fund, Mitchell Hutchins receives compensation from the Fund, computed
daily and paid monthly, at a rate of 1.20% of its average daily net assets.
Mitchell Hutchins has entered into a contract with Invista dated October 1,
1998 ("Invista Contract"), pursuant to which Invista serves as investment
sub-adviser for the foreign investments of Global Equity Fund. Mitchell Hutchins
allocates the Fund's investments between domestic and foreign investments and is
responsible for the day-to-day management of the Fund's domestic investments.
Under the Invista Contract, Mitchell Hutchins (not the Fund) is obligated to pay
Invista at the annual rate of 0.40% of the Fund's average daily net assets
allocated to Invista's management up to and including $100 million, 0.29% of the
Fund's average daily net assets allocated to Invista's management in excess of
$100 million up to and including $300 million, and 0.26% of such assets in
excess of $300 million.
Under a contract with Mitchell Hutchins ("Sub-Advisory Contract"), Schroder
serves as the sub-adviser to the Emerging Markets Equity Fund. Under a
Sub-Advisory Contract, Mitchell Hutchins (not the Fund) pays Schroder a fee,
computed daily and paid monthly, at an annual rate of 0.70% of the Fund's
average daily net assets.
Under a contract with Mitchell Hutchins ("Sub-Advisory Contract"), Schroder
serves as the sub-adviser to the Asia Pacific Growth Fund. Under the
Sub-Advisory Contract, Mitchell Hutchins (not the Fund) pays Schroder a fee,
computed daily and paid monthly, at an annual rate of 0.65% of the Fund's
average daily net assets up to and including $100 million and 0.55% of the
Fund's average daily net assets over $100 million.
At April 30, 1999 the Global Equity Fund, the Asia Pacific Growth Fund, and
the Emerging Markets Equity Fund owed Mitchell Hutchins $272,035, $33,180 and
$1,524, respectively, in investment advisory and administrative fees. Mitchell
Hutchins voluntarily waived $43,694 of its management fee and reimbursed other
expenses of $6,353 for the Emerging Markets Equity Fund for the six months ended
April 30, 1999.
For the six months ended April 30, 1999, the Global Equity Fund, the Asia
Pacific Growth Fund, and the Emerging Markets Equity Fund paid $6,126, $0, and
$0, respectively, in brokerage commissions to PaineWebber for transactions
executed on behalf of the Funds.
DISTRIBUTION PLAN
Mitchell Hutchins is the distributor of each Fund's shares and has appointed
PaineWebber as the exclusive dealer for the sale of those shares. Under separate
plans of service and/or distribution pertaining to Class A, Class B and Class C
shares, each 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 rate of 0.75% of the average daily
net assets of Class B and Class C shares. At April 30, 1999 the Global Equity
Fund, the Asia Pacific Growth Fund and the Emerging Markets Equity Fund owed
Mitchell Hutchins $121,386, $19,624 and $3,338, respectively, in service and
distribution fees. Mitchell Hutchins voluntarily waived $12,290 of its service &
distribution fees for the Emerging Markets Equity Fund for the six months ended
April 30, 1999.
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
Mitchell Hutchins also receives the proceeds of the initial sales charges paid
by shareholders upon the purchase of Class A shares and the contingent deferred
sales charges paid by the shareholders upon certain redemptions of Class A,
Class B and Class C shares. Mitchell Hutchins has informed the Global Equity
Fund, the Asia Pacific Growth Fund and the Emerging Markets Equity Fund that for
the six months ended April 30, 1999 it had earned $82,561, $101,391 and $1,921,
respectively, in sales charges.
SECURITY LENDING
Each Fund may lend up to 33 1/3% of its total assets to qualified
institutions. The loans are secured at all times by cash or U.S. government
securities in an amount at least equal to the market value of the securities
loaned, plus accrued interest and dividends, determined on a daily basis and
adjusted accordingly. Each Fund will regain record ownership of loaned
securities to exercise certain beneficial rights; however, each Fund may bear
the risk of delay in recovery of, or even loss of rights in, the securities
loaned should the borrower fail financially. Each Fund receives compensation,
which is included in interest income, for lending its securities from interest
earned on the cash or U.S. government securities held as collateral, net of fee
rebates paid to the borrower plus reasonable administrative and custody fees.
Each Fund's lending agent is PaineWebber, who received compensation from the
Funds for the six months ended April 30, 1999 as follows:
<TABLE>
<S> <C>
Global Equity Fund........................................................ $ 24,714
Asia Pacific Growth Fund.................................................. $ 2,973
Emerging Markets Equity Fund.............................................. $ 85
</TABLE>
At April 30, 1999, the Global Equity Fund, Asia Pacific Growth Fund and
Emerging Markets Equity Fund owed PaineWebber $9,408, $446 and $28,
respectively, in security lending fees.
For the six months ended April 30, 1999, the Funds earned compensation for
lending its securities as follows:
<TABLE>
<CAPTION>
<S> <C>
Global Equity Fund........................................................ $ 73,071
Asia Pacific Growth Fund.................................................. $ 8,837
Emerging Markets Equity Fund.............................................. $ 250
</TABLE>
As of April 30, 1999, each Fund held cash and/or cash equivalents as
collateral for securities loaned as follows:
<TABLE>
<CAPTION>
COLLATERAL MARKET
FOR VALUES OF
SECURITIES SECURITIES
LOANED LOANED
------------ ------------
<S> <C> <C>
Global Equity Fund....................................... $48,019,535 $45,645,852
Asia Pacific Growth Fund................................. $ 2,923,880 $ 2,778,718
Emerging Markets Equity Fund............................. $ 49,300 $ 47,345
</TABLE>
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
As of April 30, 1999 the Funds invested the collateral in the following money
market funds and certificates of deposit:
<TABLE>
<CAPTION>
NUMBER OF
SHARES/
PRINCIPAL
AMOUNT
(000)
- ----------
<C> <S> <C>
GLOBAL EQUITY FUND
Cayman Island Bank Certificate of Deposit, 4.938%, due
$10,000 05/03/99................................................. $10,000,000
107 Janus Investment Fund..................................... 106,795
418 Liquid Assets Portfolio................................... 418,457
37,488 MH Private Money Market Fund LLC.......................... 37,487,673
2 Prime Portfolio........................................... 2,340
4 TempFund Portfolio........................................ 4,270
-----------
Total investments of cash collateral received for
securities on loan (cost--$48,019,535)..................... $48,019,535
-----------
-----------
</TABLE>
ASIA PACIFIC GROWTH FUND
<TABLE>
<C> <S> <C>
299 Janus Investment Fund..................................... $ 298,617
698 Liquid Assets Portfolio................................... 697,769
1,927 MH Private Money Market Fund LLC.......................... 1,927,494
-----------
Total investments of cash collateral received for securities on loan
(cost--$2,923,880).................................................... $2,923,880
-----------
-----------
</TABLE>
EMERGING MARKETS EQUITY FUND
<TABLE>
<C> <S> <C>
49 Janus Investment Fund (cost--$49,300)..................... $ 49,300
-----------
-----------
</TABLE>
BANK LINE OF CREDIT
Each Fund may participate with other funds managed by Mitchell Hutchins in a
$200 million committed credit facility ("Facility") to be utilized for temporary
financing until settlement of sales or purchases of portfolio securities, the
repurchase or redemption of shares of each fund at the request of the
shareholders and other temporary or emergency purposes. In connection therewith,
each Fund has agreed to pay a commitment fee, pro rata, based on the relative
asset size of the funds in the Facility. Interest is charged to a fund at rates
based on prevailing market rates in effect at the time of borrowings. For the
six months ended April 30, 1999, the Funds did not borrow under the Facility.
TRANSFER AGENCY AND RELATED SERVICES FEES
PaineWebber provides transfer agency related services to each Fund pursuant to
a delegation of authority from PFPC Inc., the Funds' transfer agent, and is
compensated for these services by PFPC Inc., not the Funds. For the six months
ended April 30, 1999, PaineWebber received from PFPC, Inc., not the Funds,
approximately 52%, 52% and 45% of the total transfer agency and related services
fees collected by PFPC from the Global Equity Fund, Asia Pacific Growth Fund and
Emerging Markets Equity Fund, respectively.
INVESTMENTS IN SECURITIES
For federal income tax purposes, the cost of securities owned at April 30,
1999 was substantially the same as the cost of securities for financial
statement purposes.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
At April 30, 1999, the components of net unrealized appreciation were as
follows:
<TABLE>
<CAPTION>
EMERGING
GLOBAL EQUITY ASIA PACIFIC MARKETS
FUND GROWTH FUND EQUITY FUND
------------- -------------- -------------
<S> <C> <C> <C>
Gross appreciation (investments having an excess of
value over cost)....................................... $ 68,823,925 $ 6,553,893 $ 1,755,250
Gross depreciation (investments having an excess of cost
over value)............................................ (8,209,304) (4,285,201) (1,146,194)
------------- -------------- -------------
Net appreciation of investments......................... $ 60,614,621 $ 2,268,692 $ 609,056
------------- -------------- -------------
------------- -------------- -------------
</TABLE>
For the six month period ended April 30, 1999, total aggregate purchases and
sales of portfolio securities, excluding short term securities were as follows:
<TABLE>
<CAPTION>
GLOBAL EMERGING
EQUITY ASIA PACIFIC MARKETS
FUND GROWTH FUND EQUITY FUND
------------ ------------ ------------
<S> <C> <C> <C>
Purchases............................................... $159,616,016 $ 9,585,418 $ 2,635,832
Sales................................................... $208,093,242 $12,483,705 $ 3,758,249
</TABLE>
FEDERAL INCOME TAX STATUS
The Funds intend to distribute substantially 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. In addition, by distributing during each calendar year,
substantially all of their net investment income, capital gains and certain
other amounts, if any, the Funds intend not to be subject to a federal excise
tax.
At October 31, 1998 the Funds had the following net capital loss carryforwards
available as reductions, to the extent provided in the regulations, of future
net realized capital gains which expire as follows:
<TABLE>
<CAPTION>
GLOBAL EMERGING
EQUITY ASIA PACIFIC MARKETS
FISCAL YEAR ENDING FUND GROWTH FUND EQUITY FUND
- -------------------------------------------------------- --------- ------------ ------------
<S> <C> <C> <C>
2002.................................................... -- -- $ 7,735,682
2003.................................................... -- -- 7,723,267
2005.................................................... -- $ 5,254,850 --
2006.................................................... -- 22,379,279 2,795,275
--- ------------ ------------
-- $27,634,129 $ 18,254,224
--- ------------ ------------
--- ------------ ------------
</TABLE>
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
SHARES OF BENEFICIAL INTEREST
There is 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
-------------------------- ------------------------- ------------------------- -------------------------
GLOBAL EQUITY FUND SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED
APRIL 30, 1999
Shares sold........... 14,700,461 $ 250,803,553 81,445 $ 1,333,627 550,613 $ 8,958,726 960,679 $ 16,713,017
Shares repurchased.... (17,503,463) (299,709,532) (576,203) (9,348,028) (1,010,532) (16,419,484) (1,091,291) (18,997,267)
Shares converted from
Class B to Class A... 345,025 5,908,790 (365,083) (5,908,790) -- -- -- --
Dividend reinvested... 697,012 11,514,628 157,538 2,459,166 127,936 1,999,640 158,271 2,670,032
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
Net increase
(decrease)........... (1,760,965) $ (31,482,561) (702,303) $ (11,464,025) (331,983) $ (5,461,118) 27,659 $ 385,782
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
YEAR ENDED
OCTOBER 31, 1998
Shares sold........... 36,060,226 $ 628,537,391 171,632 $ 2,956,175 2,845,323 $ 47,554,292 1,974,996 $ 35,774,214
Shares repurchased.... (39,766,228) (701,469,147) (1,441,098) (23,820,379) (3,737,235) (62,542,179) (2,453,452) (44,075,070)
Shares converted from
Class B to Class A... 887,156 15,790,653 (929,606) (15,790,653) -- -- -- --
Dividend reinvested... 2,234,439 35,103,031 688,904 10,340,457 471,391 7,080,291 458,058 7,315,183
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
Net decrease.......... (584,407) $ (22,038,072) (1,510,168) $ (26,314,400) (420,521) $ (7,907,596) (20,398) $ (985,673)
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS Y
ASIA PACIFIC GROWTH -------------------------- ------------------------- ------------------------- -------------------------
FUND SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED
APRIL 30, 1999
Shares sold........... 504,763 $ 3,859,143 71,650 $ 557,971 305,365 $ 2,424,677 5,006 $ 35,713
Shares repurchased.... (634,960) (4,749,491) (380,352) (2,773,609) (264,679) (1,966,804) (1,055) (7,736)
Shares converted from
Class B to Class
A................... 4,351 31,949 (4,410) (31,949) -- -- -- --
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
Net increase
(decrease).......... (125,846) $ (858,399) (313,112) $ (2,247,587) 40,686 $ 457,873 3,951 $ 27,977
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
YEAR ENDED OCTOBER 31,
1998+
Shares sold........... 833,285 $ 6,176,465 643,643 $ 4,984,246 1,740,391 $ 12,038,987 6,911 $ 42,387
Shares repurchased.... (1,558,123) (11,548,589) (1,308,266) (9,734,562) (2,375,214) (17,241,497) -- --
Shares converted from
Class B to Class
A................... 17,787 152,282 (17,910) (152,282) -- -- -- --
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
Net increase
(decrease).......... (707,051) $ (5,219,842) (682,533) $ (4,902,598) (634,823) $ (5,202,510) 6,911 $ 42,387
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
</TABLE>
- ---------------
+ Class Y shares are for the period March 25, 1998 (commencement of operations)
through October 31, 1998.
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
SHARES OF BENEFICIAL INTEREST(CONCLUDED)
There is 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
EMERGING MARKETS EQUITY -------------------------- --------------------- -------------------------- ------------------------
FUND SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30,
1999
Shares sold............... 85,584 $ 613,816 15,887 $ 112,373 43,317 $ 342,656 5,860 $ 41,661
Shares repurchased........ (174,093) (1,206,661) (24,760) (174,743) (115,752) (790,865) (29,832) (211,259)
Shares converted from
Class B to Class A....... 4,826 32,906 (4,944) (32,906) -- -- -- --
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
Net decrease.............. (83,683) $ (559,939) (13,817) $ (95,276) (72,435) $ (448,209) (23,972) $ (169,598)
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
YEAR ENDED
OCTOBER 31, 1998
Shares sold............... 65,135 $ 601,062 26,773 $ 232,787 1,042,209 $ 7,954,963 37,276 $ 290,110
Shares repurchased........ (416,028) (3,554,345) (109,930) (944,387) (1,217,647) (9,505,610) (967,273) (8,534,371)
Shares converted from
Class B to Class A....... 17,862 162,330 (18,300) (162,330) -- -- -- --
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
Net decrease.............. (333,031) $ (2,790,953) (101,457) $ (873,930) (175,438) $ (1,550,647) (929,997) $ (8,244,261)
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
</TABLE>
44
<PAGE>
(This page has been left blank intentionally.)
45
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding in each class
throughout each period is presented below:
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE
ENDED FOR THE YEARS ENDED TWO MONTHS FOR THE YEARS ENDED
APRIL 30, OCTOBER 31, ENDED AUGUST 31,
1999 ----------------------- OCTOBER 31, -----------------------------------
(UNAUDITED) 1998# 1997 1996 1996 1995** 1994
------------ ---------- ---------- ----------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 16.27 $ 18.37 $ 17.43 $ 16.81 $ 16.12 $ 16.98 $ 14.55
------------ ---------- ---------- ----------- --------- --------- ---------
Net investment income
(loss)................. 0.03@ 0.03@ 0.00 (0.02) 0.02 0.02 0.01
Net realized and
unrealized gains
(losses) from
investments and foreign
currency............... 2.37@ 0.35@ 1.52 0.64 1.24 0.37 2.63
------------ ---------- ---------- ----------- --------- --------- ---------
Net increase (decrease)
from investment
operations............. 2.40 0.38 1.52 0.62 1.26 0.39 2.64
------------ ---------- ---------- ----------- --------- --------- ---------
Dividends from net
investment income...... (0.02) -- -- -- -- -- --
Distributions from net
realized gains from
investment
transactions........... (0.81) (2.48) (0.58) -- (0.57) (1.25) (0.21)
------------ ---------- ---------- ----------- --------- --------- ---------
Total dividends and
distributions to
shareholders........... (0.83) (2.48) (0.58) -- (0.57) (1.25) (0.21)
------------ ---------- ---------- ----------- --------- --------- ---------
Net asset value, end of
period................. $ 17.84 $ 16.27 $ 18.37 $ 17.43 $ 16.81 $ 16.12 $ 16.98
------------ ---------- ---------- ----------- --------- --------- ---------
------------ ---------- ---------- ----------- --------- --------- ---------
Total investment return
(1).................... 15.18% 2.53% 8.87% 3.69% 8.06% 3.24% 18.23%
------------ ---------- ---------- ----------- --------- --------- ---------
------------ ---------- ---------- ----------- --------- --------- ---------
Ratios/Supplemental Data:
Net assets, end of period
(000's)................ $244,501 $ 251,680 $ 294,878 $307,267 $ 305,218 $ 360,652 $ 185,493
Expenses to average net
assets................. 1.55%* 1.55% 1.44% 1.53%* 1.48% 1.71%(2) 1.58%
Net investment income
(loss) to average net
assets................. 0.37%* 0.17% 0.01% (0.80)%* 0.10% 0.09%(2) 0.07%
Portfolio turnover
rate................... 43% 151% 86% 3% 33% 40% 51%
</TABLE>
- ---------------
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
# Effective October 1, 1998, Invista Capital Management, Inc. began
overseeing the day-to-day management of the foreign portion of the Fund's
assets and Mitchell Hutchins allocates the portfolio between domestic and
foreign investments and manages the domestic portion of the Fund's assets.
@ Calculated using the average monthly shares outstanding for the period.
++ Commencement of offering of shares.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and other
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges; results for each class would be lower if sales
charges were included. Total investment returns for periods of less than a
year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.06% and 0.00%
for Class A and Class B shares, respectively.
46
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE FOR THE FOR THE PERIOD
ENDED YEARS ENDED TWO MONTHS YEAR AUGUST 25,
APRIL 30, OCTOBER 31, ENDED ENDED 1995++
1999 --------------------- OCTOBER 31, AUGUST 31, TO AUGUST 31,
(UNAUDITED) 1998# 1997 1996 1996 1995**
------------ --------- --------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period..... $ 15.43 $ 17.69 $ 16.93 $ 16.35 $ 15.82 $ 15.83
------------ --------- --------- ----------- ----------- ---------------
Net investment income
(loss).................. (0.04)@ (0.12)@ (0.21) (0.05) (0.12) 0.00
Net realized and
unrealized gains
(losses) from
investments and foreign
currency................ 2.24@ 0.34@ 1.55 0.63 1.22 (0.01)
------------ --------- --------- ----------- ----------- ---------------
Net increase (decrease)
from investment
operations.............. 2.20 0.22 1.34 0.58 1.10 (0.01)
------------ --------- --------- ----------- ----------- ---------------
Dividends from net
investment income....... -- -- -- -- -- --
Distributions from net
realized gains from
investment
transactions............ (0.81) (2.48) (0.58) -- (0.57) --
------------ --------- --------- ----------- ----------- ---------------
Total dividends and
distributions to
shareholders............ (0.81) (2.48) (0.58) 0.00 (0.57) 0.00
------------ --------- --------- ----------- ----------- ---------------
Net asset value, end of
period.................. $ 16.82 $ 15.43 $ 17.69 $ 16.93 $ 16.35 $ 15.82
------------ --------- --------- ----------- ----------- ---------------
------------ --------- --------- ----------- ----------- ---------------
Total investment return
(1)..................... 14.69% 1.62% 8.05% 3.55% 7.18% (0.06)%
------------ --------- --------- ----------- ----------- ---------------
------------ --------- --------- ----------- ----------- ---------------
Ratios/Supplemental Data:
Net assets, end of period
(000's)................. $45,630 $ 52,709 $ 87,104 $113,445 $113,235 $142,880
Expenses to average net
assets.................. 2.39%* 2.38% 2.26% 2.34%* 2.25% 2.17%*(2)
Net investment income
(loss) to average net
assets.................. (0.52)%* (0.74)% (0.80)% (1.61)%* (0.68)% (1.92)%*(2)
Portfolio turnover
rate.................... 43% 151% 86% 3% 33% 40%
</TABLE>
- ---------------
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
# Effective October 1, 1998, Invista Capital Management, Inc. began
overseeing the day-to-day management of the foreign portion of the Fund's
assets and Mitchell Hutchins allocates the portfolio between domestic and
foreign investments and manages the domestic portion of the Fund's assets.
@ Calculated using the average monthly shares outstanding for the period.
++ Commencement of offering of shares.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and other
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges; results for each class would be lower if sales
charges were included. Total investment returns for periods of less than a
year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.06% and 0.00%
for Class A and Class B shares, respectively.
47
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
FINANCIAL HIGHLIGHTS(CONCLUDED)
Selected data for a share of beneficial interest outstanding in each class
throughout each period is presented below:
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE
ENDED YEARS ENDED TWO MONTHS FOR THE YEARS ENDED
APRIL 30, OCTOBER 31, ENDED AUGUST 31,
1999 --------------------- OCTOBER 31, ------------------------------------
(UNAUDITED) 1998# 1997 1996 1996 1995** 1994
------------ -------- -------- ----------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 15.45 $ 17.69 $ 16.93 $ 16.35 $ 15.82 $ 16.81 $ 14.52
------------ -------- -------- ----------- -------- -------- --------
Net investment income
(loss)................. (0.03)@ (0.11)@ (0.23) (0.05) (0.13) (0.11) (0.07)
Net realized and
unrealized gains from
investments
and foreign currency... 2.24@ 0.35@ 1.57 0.63 1.23 0.37 2.57
------------ -------- -------- ----------- -------- -------- --------
Net increase from
investment
operations............. 2.21 0.24 1.34 0.58 1.10 0.26 2.50
------------ -------- -------- ----------- -------- -------- --------
Dividends from net
investment income...... -- -- -- -- -- -- --
Distributions from net
realized gains from
investment
transactions........... (0.81) (2.48) (0.58) -- (0.57) (1.25) (0.21)
------------ -------- -------- ----------- -------- -------- --------
Total dividends and
distributions to
shareholders........... (0.81) (2.48) (0.58) 0.00 (0.57) (1.25) (0.21)
------------ -------- -------- ----------- -------- -------- --------
Net asset value, end of
period................. $ 16.85 $ 15.45 $ 17.69 $ 16.93 $ 16.35 $ 15.82 $ 16.81
------------ -------- -------- ----------- -------- -------- --------
------------ -------- -------- ----------- -------- -------- --------
Total investment return
(1).................... 14.74% 1.74% 8.05% 3.55% 7.18% 2.46% 17.29%
------------ -------- -------- ----------- -------- -------- --------
------------ -------- -------- ----------- -------- -------- --------
Ratios/Supplemental Data:
Net assets, end of period
(000's)................ $ 39,222 $ 41,103 $ 54,510 $67,530 $ 66,585 $ 83,485 $ 31,837
Expenses to average net
assets................. 2.32%* 2.32% 2.20% 2.30%* 2.27% 2.48%(2) 2.33%
Net investment income
(loss) to average net
assets................. (0.43)%* (0.65)% (0.75)% (1.57)%* (0.70)% (0.68)%(2) (0.68)%
Portfolio turnover
rate................... 43% 151% 86% 3% 33% 40% 51%
</TABLE>
- ---------------
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
# Effective October 1, 1998, Invista Capital Management, Inc. began
overseeing the day-to-day management of the international portion of the
Fund's assets and Mitchell Hutchins allocates the portfolio between
domestic and international investments and manages the domestic portion of
the Fund's assets.
@ Calculated using the average monthly 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 other
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges or program fees; results for each class would be
lower if sales charges or program fees were included. Total investment
returns for periods of less than a year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.06% and 0.06%
for Class C and Class Y shares, respectively.
48
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
CLASS Y
----------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE
ENDED FOR THE YEARS ENDED TWO MONTHS FOR THE YEARS ENDED
APRIL 30, OCTOBER 31, ENDED AUGUST 31,
1999 --------------------- OCTOBER 31, -----------------------------------
(UNAUDITED) 1998# 1997 1996 1996 1995** 1994
------------ --------- --------- ----------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period..... $ 16.59 $ 18.63 $ 17.60 $ 16.97 $ 16.22 $ 17.03 $ 14.56
------------ --------- --------- ----------- -------- -------- --------
Net investment income
(loss).................. 0.06@ 0.09@ 0.10 (0.01) 0.07 0.07 0.05
Net realized and
unrealized gains from
investments
and foreign currency.... 2.41@ 0.35@ 1.51 0.64 1.25 0.37 2.63
------------ --------- --------- ----------- -------- -------- --------
Net increase from
investment operations... 2.47 0.44 1.61 0.63 1.32 0.44 2.68
------------ --------- --------- ----------- -------- -------- --------
Dividends from net
investment income....... (0.04) -- -- -- -- -- --
Distributions from net
realized gains from
investment
transactions............ (0.81) (2.48) (0.58) -- (0.57) (1.25) (0.21)
------------ --------- --------- ----------- -------- -------- --------
Total dividends and
distributions to
shareholders............ (0.85) (2.48) (0.58) 0.00 (0.57) (1.25) (0.21)
------------ --------- --------- ----------- -------- -------- --------
Net asset value, end of
period.................. $ 18.21 $ 16.59 $ 18.63 $ 17.60 $ 16.97 $ 16.22 $ 17.03
------------ --------- --------- ----------- -------- -------- --------
------------ --------- --------- ----------- -------- -------- --------
Total investment return
(1)..................... 15.34% 2.86% 9.31% 3.71% 8.39% 3.54% 18.49%
------------ --------- --------- ----------- -------- -------- --------
------------ --------- --------- ----------- -------- -------- --------
Ratios/Supplemental Data:
Net assets, end of period
(000's)................. $56,521 $ 51,025 $ 57,683 $63,225 $ 61,736 $ 57,150 $ 28,390
Expenses to average net
assets.................. 1.21%* 1.21% 1.10% 1.18%* 1.17% 1.46%(2) 1.33%
Net investment income
(loss) to average net
assets.................. 0.71%* 0.50% 0.36% (0.45)%* 0.46% 0.36%(2) 0.32%
Portfolio turnover
rate.................... 43% 151% 86% 3% 33% 40% 51%
</TABLE>
- ---------------
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
# Effective October 1, 1998, Invista Capital Management, Inc. began
overseeing the day-to-day management of the international portion of the
Fund's assets and Mitchell Hutchins allocates the portfolio between
domestic and international investments and manages the domestic portion of
the Fund's assets.
@ Calculated using the average monthly 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 other
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges or program fees; results for each class would be
lower if sales charges or program fees were included. Total investment
returns for periods of less than a year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.06% and 0.06%
for Class C and Class Y shares, respectively.
49
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding in each class
throughout the period is presented below:
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE FOR THE PERIOD
APRIL 30, YEAR ENDED ENDED
1999 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1998 1997+
------------ ------------ ---------------
<S> <C> <C> <C>
Net asset value,
beginning of period.... $ 6.82 $ 8.96 $ 12.50
------------ ------------ -------
Net investment income
(loss)................. (0.04) 0.00@ 0.03
Net realized and
unrealized gains
(losses) from
investments and foreign
currency............... 2.23 (2.14)@ (3.57)
------------ ------------ -------
Net increase (decrease)
from investment
operations............. 2.19 (2.14) (3.54)
------------ ------------ -------
Net asset value, end of
period................. $ 9.01 $ 6.82 $ 8.96
------------ ------------ -------
------------ ------------ -------
Total investment return
(1).................... 32.11% (23.88)% (28.32)%
------------ ------------ -------
------------ ------------ -------
Ratios/Supplemental Data:
Net assets, end of period
(000's)................ $14,093 $11,526 $21,466
Expenses to average net
assets................. 2.96%* 2.88% 2.33%*
Net investment income
(loss) to average net
assets................. (1.00)%* (0.02)% 0.37%*
Portfolio turnover
rate................... 32% 59% 13%
</TABLE>
- ---------------
* Annualized
+ For the period March 25, 1997 (commencement of operations) through October
31, 1997.
++ For the period March 13, 1998 (commencement of offering) through October
31, 1998.
@ Calculated using the average monthly shares outstanding for the period.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and other
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges or program fees; results for each class would be
lower if sales charges or program fees were included. Total investment
returns for periods less than a year has not been annualized.
50
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
CLASS B CLASS C
--------------------------------------------- ---------------------------------------------
FOR THE FOR THE
SIX MONTHS SIX MONTHS
ENDED FOR THE FOR THE PERIOD ENDED FOR THE FOR THE PERIOD
APRIL 30, YEAR ENDED ENDED APRIL 30, YEAR ENDED ENDED
1999 OCTOBER 31, OCTOBER 31, 1999 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1998 1997+ (UNAUDITED) 1998 1997+
------------ ------------ --------------- ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period..... $ 6.74 $ 8.92 $ 12.50 $ 6.74 $ 8.92 $ 12.50
------------ ------------ ------- ------ ------------ -------
Net investment income
(loss).................. (0.09) (0.06)@ (0.03) (0.05) (0.06)@ (0.03)
Net realized and
unrealized gains
(losses) from
investments and foreign
currency................ 2.23 (2.12)@ (3.55) 2.19 (2.12)@ (3.55)
------------ ------------ ------- ------ ------------ -------
Net increase (decrease)
from investment
operations.............. 2.14 (2.18) (3.58) 2.14 (2.18) (3.58)
------------ ------------ ------- ------ ------------ -------
Net asset value, end of
period.................. $ 8.88 $ 6.74 $ 8.92 $ 8.88 $ 6.74 $ 8.92
------------ ------------ ------- ------ ------------ -------
------------ ------------ ------- ------ ------------ -------
Total investment return
(1)..................... 31.75% (24.44)% (28.64)% 31.75% (24.44)% (28.64)%
------------ ------------ ------- ------ ------------ -------
------------ ------------ ------- ------ ------------ -------
Ratios/Supplemental Data:
Net assets, end of period
(000's)................. $14,006 $12,746 $22,949 $8,552 $ 6,220 $13,887
Expenses to average net
assets.................. 3.74%* 3.63% 3.12%* 3.70%* 3.60% 3.10%*
Net investment income
(loss) to average net
assets.................. (1.78)%* (0.78)% (0.43)%* (1.75)%* (0.79)% (0.42)%*
Portfolio turnover
rate.................... 32% 59% 13% 32% 59% 13%
<CAPTION>
CLASS Y
------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE PERIOD
APRIL 30, ENDED
1999 OCTOBER 31,
(UNAUDITED) 1998++
------------ ---------------
<S> <C> <C>
Net asset value,
beginning of period..... $ 6.79 $ 8.66
------ -------
Net investment income
(loss).................. 0.01 0.06@
Net realized and
unrealized gains
(losses) from
investments and foreign
currency................ 2.17 (1.93)@
------ -------
Net increase (decrease)
from investment
operations.............. 2.18 (1.87)
------ -------
Net asset value, end of
period.................. $ 8.97 $ 6.79
------ -------
------ -------
Total investment return
(1)..................... 32.11% (21.59)%
------ -------
------ -------
Ratios/Supplemental Data:
Net assets, end of period
(000's)................. $ 97 $ 47
Expenses to average net
assets.................. 2.68%* 2.66%*
Net investment income
(loss) to average net
assets.................. (0.70)%* (1.46)%*
Portfolio turnover
rate.................... 32% 59%
</TABLE>
- ---------------
* Annualized
+ For the period March 25, 1997 (commencement of operations) through October
31, 1997.
++ For the period March 13, 1998 (commencement of offering) through October
31, 1998.
@ Calculated using the average monthly shares outstanding for the period.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and other
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges or program fees; results for each class would be
lower if sales charges or program fees were included. Total investment
returns for periods less than a year has not been annualized.
51
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding in each class
throughout each period is presented below:
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE YEARS FOUR FOR THE YEARS
ENDED ENDED MONTHS ENDED FOR THE
APRIL 30, OCTOBER 31, ENDED JUNE 30, PERIOD ENDED
1999 ------------------- OCTOBER --------------------- JUNE 30,
(UNAUDITED) 1998 1997*** 31, 1996 1996 1995** 1994+
------------ -------- -------- ---------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 6.52 $ 9.39 $ 9.46 $ 10.06 $ 9.73 $ 10.79 $ 12.00
------ -------- -------- ---------- --------- --------- ------------
Net investment income (loss)............ (0.01) (0.01)@ (0.06) (0.13) (0.14) (0.04) 0.04
Net realized and unrealized gains
(losses) from investments and foreign
currency............................... 1.92 (2.86)@ (0.01) (0.47) 0.47 (0.97) (1.25)
------ -------- -------- ---------- --------- --------- ------------
Net increase (decrease) from investment
operations............................. 1.91 (2.87) (0.07) (0.60) 0.33 (1.01) (1.21)
------ -------- -------- ---------- --------- --------- ------------
Dividends from net investment income.... -- -- -- -- -- (0.05) --
------ -------- -------- ---------- --------- --------- ------------
Net asset value, end of period.......... $ 8.43 $ 6.52 $ 9.39 $ 9.46 $ 10.06 $ 9.73 $ 10.79
------ -------- -------- ---------- --------- --------- ------------
------ -------- -------- ---------- --------- --------- ------------
Total investment return (1)............. 29.29% (30.56)% (0.74)% (5.96)% 3.39% (9.29)% (10.08)%
------ -------- -------- ---------- --------- --------- ------------
------ -------- -------- ---------- --------- --------- ------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 4,773 $ 4,237 $9,222 $14,992 $ 20,680 $ 33,043 $ 46,758
Expenses, net of fee waivers, to average
net assets............................. 2.44%* 2.44% 2.44% 2.44%* 2.44% 2.44% 2.47%*
Expenses, before fee waivers, to average
net assets............................. 4.00%* 3.71% 3.01% 3.48%* 3.42% 2.54% 2.47%*
Net investment income (loss), net of fee
waivers, to average net assets......... (0.26)%* (0.16)% (0.40)% (1.42)%* (0.52)% (0.76)% 0.72%*
Net investment income (loss), before fee
waivers, to average net assets......... (1.82)%* (1.43)% (0.97)% (2.46)%* (1.50)% (0.86)% 0.72%*
Portfolio turnover rate................. 35% 64% 87% 22% 69% 76% 8%
</TABLE>
- ---------------
+ For the period January 19, 1994 (commencement of operations) to June 30,
1994.
++ For the period December 5, 1995 (commencement of offering of shares) to June
30, 1996.
@ Calculated using the average shares outstanding for the year.
* Annualized.
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
*** Investment Sub-Advisory functions for the Fund were transferred from
Emerging Markets Management to Schroder Capital Management International
Inc. effective February 25, 1997.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends at net
asset value on the payable dates and a sale at net asset value on the last
day of each period reported. The figures do not include sales charges;
results for each class would be lower if sales charges were included. Total
investment return for periods of less than one year has not been
annualized.
52
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE YEARS
ENDED ENDED FOR THE FOR THE
APRIL 30, OCTOBER 31, FOUR MONTHS PERIOD ENDED
1999 ----------------------------- ENDED OCTOBER JUNE 30,
(UNAUDITED) 1998 1997*** 31, 1996 1996++
------------- ------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 6.37 $ 9.19 $ 9.32 $ 9.94 $ 9.13
----- ----- ------ ------ -----
Net investment income (loss)............ (0.04) (0.08)@ (0.10) (0.07) (0.01)
Net realized and unrealized gains
(losses) from investments and foreign
currency............................... 1.88 (2.74)@ (0.03) (0.55) 0.82
----- ----- ------ ------ -----
Net increase (decrease) from investment
operations............................. 1.84 (2.82) (0.13) (0.62) 0.81
----- ----- ------ ------ -----
Dividends from net investment income.... -- -- -- -- --
----- ----- ------ ------ -----
Net asset value, end of period.......... $ 8.21 $ 6.37 $ 9.19 $ 9.32 $ 9.94
----- ----- ------ ------ -----
----- ----- ------ ------ -----
Total investment return (1)............. 28.89% (30.69)% (1.39)% (6.24)% 8.87%
----- ----- ------ ------ -----
----- ----- ------ ------ -----
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 481 $ 461 $1,598 $ 879 $ 936
Expenses, net of fee waivers, to average
net assets............................. 3.19%* 3.19% 3.19% 3.19%* 3.19%*
Expenses, before fee waivers, to average
net assets............................. 4.92%* 4.92% 3.82% 4.23%* 4.97%*
Net investment income (loss), net of fee
waivers, to average net assets......... (1.05)%* (0.99)% (1.25)% (2.12)%* (0.21)%*
Net investment income (loss), before fee
waivers, to average net assets......... (2.78)%* (2.72)% (1.88)% (3.16)%* (1.99)%*
Portfolio turnover rate................. 35% 64% 87% 22% 69%
<CAPTION>
CLASS C
-------------------------------------------------------------------------------------
FOR THE
SIX FOR THE
MONTHS FOR THE YEARS FOUR FOR THE YEARS
ENDED ENDED MONTHS ENDED FOR THE
APRIL 30, OCTOBER 31, ENDED JUNE 30, PERIOD ENDED
1999 --------------------- OCTOBER --------------------- JUNE 30,
(UNAUDITED) 1998 1997*** 31, 1996 1996 1995** 1994+
--------- --------- --------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 6.32 $ 9.17 $ 9.32 $ 9.94 $ 9.67 $ 10.75 $12.00
--------- --------- --------- --------- --------- --------- -------------
Net investment income (loss)............ (0.03) (0.08)@ (0.14) (0.22) (0.24) (0.17) --
Net realized and unrealized gains
(losses) from investments and foreign
currency............................... 1.85 (2.77)@ (0.01) (0.40) 0.51 (0.90) (1.25)
--------- --------- --------- --------- --------- --------- -------------
Net increase (decrease) from investment
operations............................. 1.82 (2.85) (0.15) (0.62) 0.27 (1.07) (1.25)
--------- --------- --------- --------- --------- --------- -------------
Dividends from net investment income.... -- -- -- -- -- (0.01) --
--------- --------- --------- --------- --------- --------- -------------
Net asset value, end of period.......... $ 8.14 $ 6.32 $ 9.17 $ 9.32 $ 9.94 $ 9.67 $10.75
--------- --------- --------- --------- --------- --------- -------------
--------- --------- --------- --------- --------- --------- -------------
Total investment return (1)............. 28.80% (31.08)% (1.61)% (6.24)% 2.79% (10.01)% (10.42)%
--------- --------- --------- --------- --------- --------- -------------
--------- --------- --------- --------- --------- --------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 2,729 $ 2,575 $ 5,345 $ 7,882 $ 11,561 $ 18,551 $26,721
Expenses, net of fee waivers, to average
net assets............................. 3.19%* 3.19% 3.19% 3.19%* 3.19% 3.19% 3.22%*
Expenses, before fee waivers, to average
net assets............................. 4.83%* 4.42% 3.78% 4.23%* 4.17% 3.29% 3.22%*
Net investment income (loss), net of fee
waivers, to average net assets......... (1.04)%* (0.96)% (1.18)% (2.16)%* (1.28)% (1.50)% (0.03)%*
Net investment income (loss), before fee
waivers, to average net assets......... (2.68)%* (2.19)% (1.77)% (3.20)%* (2.26)% (1.60)% (0.03)%*
Portfolio turnover rate................. 35% 64% 87% 22% 69% 76% 8%
</TABLE>
53
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
FINANCIAL HIGHLIGHTS(CONCLUDED)
Selected data for a share of beneficial interest outstanding in each class
throughout each period is presented below:
<TABLE>
<CAPTION>
CLASS Y
--------------------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE YEARS FOUR FOR THE YEARS
ENDED ENDED MONTHS ENDED FOR THE
APRIL 30, OCTOBER 31, ENDED JUNE 30, PERIOD ENDED
1999 ------------------- OCTOBER --------------------- JUNE 30,
(UNAUDITED) 1998 1997*** 31, 1996 1996 1995** 1994+
------------ -------- -------- ---------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 6.58 $ 9.46 $ 9.51 $ 10.11 $ 9.75 $ 10.80 $ 12.00
------ -------- -------- ---------- --------- --------- ------------
Net investment income (loss)............ 0.00 (0.01)@ (0.02) (0.05) (0.01) 0.01 0.05
Net realized and unrealized gains
(losses) from investments and foreign
currency............................... 1.94 (2.87)@ (0.03) (0.55) 0.37 (0.99) (1.25)
------ -------- -------- ---------- --------- --------- ------------
Net increase (decrease) from investment
operations............................. 1.94 (2.88) (0.05) (0.60) 0.36 (0.98) (1.20)
------ -------- -------- ---------- --------- --------- ------------
Dividends from net investment income.... -- -- -- -- -- (0.07) --
------ -------- -------- ---------- --------- --------- ------------
Net asset value, end of period.......... $ 8.52 $ 6.58 $ 9.46 $ 9.51 $ 10.11 $ 9.75 $ 10.80
------ -------- -------- ---------- --------- --------- ------------
------ -------- -------- ---------- --------- --------- ------------
Total investment return (1)............. 29.48% (30.44)% (0.53)% (5.93)% 3.69% (9.03)% (10.00)%
------ -------- -------- ---------- --------- --------- ------------
------ -------- -------- ---------- --------- --------- ------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 931 $ 877 $10,053 $11,375 $ 12,979 $ 12,332 $ 15,435
Expenses, net of fee waivers, to average
net assets............................. 2.19%* 2.19% 2.19% 2.19%* 2.19% 2.19% 2.22%*
Expenses, before fee waivers, to average
net assets............................. 3.86%* 3.36% 2.69% 3.23%* 3.29% 2.29% 2.22%*
Net investment income (loss), net of fee
waivers, to average net assets......... (0.06)%* (0.08)% (0.15)% (1.13)%* (0.15)% (0.51)% 0.97%*
Net investment income (loss), before fee
waivers, to average net assets......... (1.73)%* (1.25)% (0.65)% (2.17)%* (1.25)% (0.61)% 0.97%*
Portfolio turnover rate................. 35% 64% 87% 22% 69% 76% 8%
</TABLE>
- ---------------
+ For the period January 19, 1994 (commencement of operations) to June 30,
1994.
@ Calculated using the average shares outstanding for the year.
* Annualized.
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
*** Investment Sub-Advisory functions for the Fund were transferred from
Emerging Markets Management to Schroder Capital Management International
Inc. effective February 25, 1997.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and other
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include program fees; results for each class would be lower if program
fees were included. Total investment return for periods of less than one
year has not been annualized.
54
<PAGE>
- --------------------------------------------------------------
TRUSTEES
E. Garrett Bewkes, Jr.
CHAIRMAN
Margo N. Alexander
Richard Q. Armstrong
Richard R. Burt
Mary C. Farrell
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Carl W. Schafer
Brian M. Storms
PRINCIPAL OFFICERS
Margo N. Alexander
PRESIDENT
Victoria E. Schonfeld
VICE PRESIDENT
Dianne E. ODonnell
VICE PRESIDENT AND SECRETARY
Paul H. Schubert
VICE PRESIDENT AND TREASURER
T. Kirkham Barneby
VICE PRESIDENT
PAINEWEBBER INVESTMENT TRUST
Mark A. Tincher
VICE PRESIDENT
INVESTMENT ADVISER,
ADMINISTRATOR AND DISTRIBUTOR
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, New York 10019
INVESTMENT SUBADVISERS
Invista Capital Management Inc.
1800 Hub Tower
699 Walnut
Des Moines, Iowa 50309
Schroder Capital Management International Inc.
1301 Avenue of the Americas
New York, New York 10019
THIS REPORT IS NOT TO BE USED IN CONNECTION WITH THE OFFERING OF SHARES OF
THE FUNDS UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS.
THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE
FUNDS WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN
OPINION THEREON.
A PROSPECTUS CONTAINING MORE COMPLETE INFORMATION FOR ANY OF THE FUNDS LISTED
ON THE BACK COVER CAN BE OBTAINED FROM A PAINEWEBBER INVESTMENT EXECUTIVE OR
CORRESPONDENT FIRM.
READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
<PAGE>
PaineWebber offers a family of 27 funds which
encompass a diversified range of investment goals.
BOND FUNDS
- - High Income Fund
- - Investment Grade Income Fund
- - Low Duration U.S. Government Income Fund
- - Strategic Income Fund
- - U.S. Government Income Fund
TAX-FREE BOND FUNDS
- - California Tax-Free Income Fund
- - Municipal High Income Fund
- - National Tax-Free Income Fund
- - New York Tax-Free Income Fund
STOCK FUNDS
- - Financial Services Growth Fund
- - Growth Fund
- - Growth and Income Fund
- - Mid Cap Fund
- - Small Cap Fund
- - S&P 500 Index Fund
- - Tax-Managed Equity Fund
- - Utility Income Fund
ASSET ALLOCATION FUNDS
- - Balanced Fund
- - Tactical Allocation Fund
GLOBAL FUNDS
- - Asia Pacific Growth Fund
- - Emerging Markets Equity Fund
- - Global Equity Fund
- - Global Income Fund
MITCHELL HUTCHINS PORTFOLIOS
- - Aggressive Portfolio
- - Moderate Portfolio
- - Conservative Portfolio
PAINEWEBBER MONEY MARKET FUND
[LOGO]
- -C-1999 PaineWebber Incorporated
Member SIPC
PAINEWEBBER
- -------------------------------
GLOBAL EQUITY
FUND
ASIA PACIFIC
GROWTH FUND
EMERGING
MARKETS
EQUITY FUND
APRIL 30, 1999
SEMIANNUAL REPORT
