Report of Independent Auditors
To the Shareholders and
Board of Trustees of
PaineWebber Emerging Markets Fund
In planning and performing our audit of the financial
statements of PaineWebber Emerging Markets Fund for
the year ended October 31, 2000, we considered its
internal control, including control activities for
safeguarding securities, to determine our auditing
procedures for the purpose of expressing our opinion on
the financial statements and to comply with the
requirements of Form N-SAR, and not to provide
assurance on internal control.
The management of PaineWebber Emerging Markets
Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility,
estimates and judgments by management are required
to assess the expected benefits and related costs of
control. Generally, internal controls that are relevant to
an audit pertain to the entitys objective of preparing
financial statements for external purposes that are fairly
presented in conformity with generally accepted
accounting principles. Those internal controls include
the safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in internal control,
misstatements due to errors or fraud may occur and not
be detected. Also, projections of any evaluation of
internal control to future periods are subject to the risk
that internal control may become inadequate because of
changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
Our consideration of internal control would not
necessarily disclose all matters in internal control that
might be material weaknesses under standards
established by the American Institute of Certified
Public Accountants. A material weakness is a
condition in which the design or operation of one or
more of the specific internal control components does
not reduce to a relatively low level the risk that errors
or fraud in amounts that would be material in relation
to the financial statements being audited may occur and
not be detected within a timely period by employees in
the normal course of performing their assigned
functions. However, we noted no matters involving
internal control, including control activities for
safeguarding securities, and its operation that we
consider to be material weaknesses as defined above at
October 31, 2000.
This report is intended solely for the information and
use of the shareholders, Board of Trustees and
management of PaineWebber Emerging Markets Fund,
and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other
than these specified parties.
ERNST & YOUNG LLP
December 22, 2000
