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PAINEWEBBER P A C E-SM-
Personalized Asset Consulting and Evaluation
Going The
Distance
To Meet Your
Financial Needs
Semi-Annual Report
January 31, 1997
This material is intended for use only by current PACE investors and must be
preceded or accompanied by the current PACE prospectus.
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Dear PaineWebber PACE-SM- Shareholder:
We are pleased to provide our semi-annual report to you on the PACE
Portfolios making up the Managed Accounts Services Portfolio Trust.
On the following pages you will find: Mitchell Hutchins' summary of the
domestic and international market environments for the semi-annual report period
from August 1, 1996 through January 31, 1997, information regarding the
performance of each PACE Portfolio over the reporting period, and brief
commentaries from each of the PACE investment managers. Please note that the
opinions of the managers do not necessarily represent the opinions of
PaineWebber Incorporated or Mitchell Hutchins Asset Management Inc.
We appreciate the opportunity to help you achieve your financial goals. If
you have any questions regarding the PACE program, please contact your
PaineWebber Investment Executive.
Sincerely,
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[SIGNATURE] [SIGNATURE]
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Margo Alexander Bruce A. Bursey
President Senior Vice President
Mitchell Hutchins Asset Management Inc. Managed Accounts Consulting Services
PaineWebber Incorporated
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March 31, 1997
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INVESTMENT OVERVIEW--DOMESTIC
The time period covered by this semi-annual report--August 1, 1996 through
January 31, 1997--saw continued new highs for the stock market and ongoing
uncertainty in the bond market. This period was marked by low inflation and
moderate economic growth--an overall positive environment for corporate earnings
and profit growth--as well as strong cash flows into equity mutual funds. The
stock market correction in July, which was primarily due to a spate of
disappointing earnings announcements, was short-lived. The market continually
gained ground throughout August, September and October as investor confidence
returned (a circumstance that underscores the hazards of market timing). In
November, investors perceived the re-election of a Republican Congress and a
Democratic White House as positive for budget and fiscal responsibility, which,
in turn, propelled the Standard & Poor's 500 Index, a commonly used measure of
stock market performance, to set record highs. On December 5, Federal Reserve
Chairman Alan Greenspan's comments implying overstated stock valuations caused
volatility to return to the stock market. However, the market quickly recovered
and resumed its upward climb, which continued through January. From August 1,
1996 through January 31, 1997, the S&P 500 Index was up 24.2%.
Overall, the word "volatile" best described the nature of the bond market
over the six months ended January 31, 1997. Ongoing uncertainty over the
direction of interest rates early in the period persisitently unsettled an
already jittery market. By mid-summer, a moderating economy helped bolster the
market for a short period of time, a situation that was, however, only fleeting
as renewed fears of an overheating economy quickly re-emerged. The market would
repeat this about-face late in the period, when the release of new economic data
appeared to affirm the moderation in economic activity that brought about
mid-summer's brief revival in the market. A 28-basis point rally ensued that
would be over before year-end as the release of unexpected economic data would
again cause a correction in yields that would last well into January 1997.
INVESTMENT OVERVIEW--GLOBAL
The equity markets worldwide continued to perform strongly. The strong
performance of U.S. stocks was one of the more surprising developments. Outside
the U.S., markets also finished the year up substantially. Germany and France
rose 8.1%* and 15.0%*, respectively, throughout the period. European prices were
driven higher by progress towards the European Union, historically low interest
rates and a stronger dollar. Japan was the world's major underperformer, with
stocks declining 22.0%* over the period. Despite the Japanese government's best
efforts to stimulate the economy, growth has not returned to the nation, leaving
investors pessimistic on that market's near-term outlook.
Following a back-up in U.S. Treasuries early in 1996, foreign bond markets
performed strongly during the summer and through the winter. In an environment
characterized by ample liquidity, low short-term interest rates, moderate growth
and low inflation, most markets rose to, or rose close to, historically high
valuations, while yields compressed everywhere. Higher yielding markets, in
particular, did well. Foreign fixed income markets were also helped by moves
taken by governments to achieve fiscal austerity--moves that seem to have spread
across all major markets independently of one another. European governments,
driven by the need to achieve a currency union under terms specified in the
Maastricht Treaty, decreased spending and/or increased tax revenues. Japan's
government, despite years of low growth, made a decision to raise sales taxes
next year. More recently, in the U.S., politicians finally appear prepared to
agree on a balanced budget. Of course, tighter fiscal policies allow governments
to pursue easier monetary and lower interest rate policies; this combination
strongly contributed to bond performance this year.
* Source: Frank Russell Company
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PACE MONEY MARKET INVESTMENTS
MANAGED BY MITCHELL HUTCHINS ASSET MANAGEMENT INC., THE PORTFOLIO'S
INVESTMENT OBJECTIVE IS CURRENT INCOME CONSISTENT WITH THE PRESERVATION OF
CAPITAL AND LIQUIDITY THROUGH INVESTMENTS IN HIGH-QUALITY, U.S. DOLLAR-
DENOMINATED MONEY MARKET INSTRUMENTS WITH MATURITIES OF 13 MONTHS OR LESS. THE
PORTFOLIO MAINTAINS A DOLLAR-WEIGHTED AVERAGE PORTFOLIO MATURITY OF 90 DAYS OR
LESS.
INVESTMENT PROCESS
MITCHELL HUTCHINS' FOCUS IS ON QUALITY, DIVERSITY, AND LIQUIDITY. INVESTMENT
CONSIDERATIONS INCLUDE A REVIEW OF INTEREST RATES VIS-A-VIS THE ECONOMIC
ENVIRONMENT, CURRENT SUPPLY AND DEMAND OF MONEY MARKET PRODUCTS, AND A REVIEW OF
CREDIT RISK. SECURITIES SELECTION FOLLOWS AN APPROVED LIST OF TOP-TIER RATED
SECURITIES REVIEWED BY THE FIRM'S CREDIT ANALYSTS.
COMMENTS FROM MITCHELL HUTCHINS ASSET MANAGEMENT INC.
For the six-month period covered by this report--August 1, 1996 through
January 31, 1997--the Portfolio provided investors with a return of 2.51%
(exclusive of the PACE Program Fee), in line with the 2.53% return of 90-Day
U.S. Treasury Bills. As of January 31, 1997, the Portfolio's 7-day yield was
4.97% and net assets of the Portfolio totalled $12.9 million.
During this period, we shortened the Portfolio's average weighted maturity
from 75 days (as of July 31, 1996) to 62 days (as of January 31, 1997). However,
due to our continued belief that short-term rates would not rise too
dramatically, we continued to keep the Portfolio's average maturity slightly
longer than the money market fund average of 59 days (as of January 31). This
benefited the Portfolio, as did the fact that, as always, we were well
diversified within the issuer and industry areas.
Due to the possibility of incremental Fed tightenings going forward, we will
continue to gradually shorten the Portfolio's average weighted maturity to
approximately 50 days.
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PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
MANAGED BY PACIFIC INVESTMENT MANAGEMENT COMPANY (PIMCO), THE PORTFOLIO'S
INVESTMENT OBJECTIVE IS CURRENT INCOME THROUGH INVESTMENTS PRIMARILY IN U.S.
GOVERNMENT AND AGENCY SECURITIES OF VARYING MATURITIES, AS WELL AS
MORTGAGE-BACKED SECURITIES, WITH A DOLLAR-WEIGHTED AVERAGE PORTFOLIO DURATION OF
BETWEEN TWO AND SEVEN YEARS.
INVESTMENT PROCESS
PIMCO'S INVESTMENT PROCESS BEGINS WITH A MACROECONOMIC ANALYSIS OF SECULAR
AND CYCLICAL INTEREST RATE TRENDS. THE PORTFOLIO'S DURATION IS ESTABLISHED BASED
ON PIMCO'S EXPECTATIONS FOR CHANGES IN INTEREST RATES. THEN, PIMCO EVALUATES THE
YIELD CURVE'S POTENTIAL FOR STEEPING OR FLATTENING. INDIVIDUAL ISSUES ARE CHOSEN
FOR THEIR RELATIVE VALUE.
COMMENTS FROM PACIFIC INVESTMENT MANAGEMENT COMPANY
For the six-month period covered by this report--August 1, 1996 through
January 31, 1997--the Portfolio's return of 5.35% (exclusive of the PACE Program
Fee) nearly matched the Lehman Brothers Mortgage Backed Securities Index return
of 5.38%. As of January 31, 1997, net assets of the Portfolio had increased to
$80.9 million.
The Portfolio's performance relative to the Index was a result of interest
rate strategy and security selection in the mortgage sector. Longer-than-index
duration (4.1 years for the Portfolio vs. 3.8 years for the Index) benefited
relative returns as interest rates moderately declined over this time period.
Mortgage-backed securities also aided performance because of their yield
premiums and relative price gains over Treasuries. Within the mortgage sector,
fixed-rate pass-throughs continued to benefit from the range-bound movement of
Treasury yields, which drive borrowing rates for their underlying mortgage
loans. Adjustable rate mortgage issues remained contributors to performance as
their higher yields and tightening spreads led them to outperform other
short-duration instruments. However, a concentration in discount securities,
used to protect the Portfolio against prepayment risk, hurt performance as
higher coupon securities outperformed during this time period.
Going forward, while there is evidence of slightly accelerated economic
activity, we remain confident that the U.S. economy will grow less quickly than
market expectations. This, together with a benign inflation outlook, create a
backdrop for potentially attractive returns for 1997.
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PACE INTERMEDIATE FIXED INCOME INVESTMENTS
MANAGED BY PACIFIC INCOME ADVISERS, INC., THE PORTFOLIO'S INVESTMENT
OBJECTIVE IS CURRENT INCOME CONSISTENT WITH REASONABLE STABILITY OF PRINCIPAL
THROUGH INVESTMENTS IN FIXED INCOME SECURITIES WITH A DOLLAR-WEIGHTED AVERAGE
PORTFOLIO DURATION OF BETWEEN TWO AND FOUR AND ONE-HALF YEARS.
INVESTMENT PROCESS
PACIFIC INCOME ADVISERS FOCUSES ON YIELD CURVE ANALYSIS AND ACTIVE SECTOR
ROTATION, OVERWEIGHTING OR UNDERWEIGHTING SECTORS BASED ON A RISK/REWARD
ASSESSMENT AND ANTICIPATION OF CHANGING YIELD CURVE SHAPES. THE MANAGER UTILIZES
A PROPRIETARY MODEL TO IDENTIFY SECURITIES THAT ARE UNDERVALUED ON A
RISK-ADJUSTED BASIS.
COMMENTS FROM PACIFIC INCOME ADVISERS
For the six-month period covered by this report--August 1, 1996 through
January 31, 1997--the Portfolio provided investors with a total return of 3.85%
(exclusive of the PACE Program Fee), which underperformed the Lehman Brothers
Intermediate-Term Government/Corporate Index return of 4.36%. As of January 31,
1997, net assets of the Portfolio were $54.0 million.
The Portfolio's duration range of 2.7 to 3.1 years averaged a shorter
duration than that of the benchmark Index's range of 3.2 to 3.3 years during the
period. This reduced performance during the months of September, October, and
November when the market rallied, and enhanced performance during the interest
rate backups of August, December, and January. During the period we tactically
changed the Portfolio duration based on our yield curve process, reducing it to
2.9 years by the end of the period.
We were overweighted in mortgage-backed securities, which benefited the
Portfolio, and underweighted in corporates, which reduced returns. Returns for
spread product were higher than Treasuries during the period, reflecting
investors' expectations for stable growth and low inflation. In addition, we
increased the allocation of the Portfolio to government bonds as mortgage and
corporate spreads continued to tighten.
Going forward, we remain constructive about the fixed income markets in the
longer-term, as the economy appears to be heading toward a period of moderate
growth and low inflation. In the shorter-term, however, the uncertainty as to
the number of Federal Reserve interest rate increases should cause significant
volatility in the marketplace. Also, a considerably steeper yield curve would be
necessary to significantly increase the Portfolio's duration. Corporate bond
yield spreads relative to Treasuries and mortgages must also improve, on a
risk-adjusted basis, before this sector of the Portfolio is significantly
increased.
5
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PACE STRATEGIC FIXED INCOME INVESTMENTS
MANAGED BY PACIFIC INVESTMENT MANAGEMENT COMPANY (PIMCO), THE PORTFOLIO'S
INVESTMENT OBJECTIVE IS TOTAL RETURN CONSISTING OF INCOME AND CAPITAL
APPRECIATION THROUGH INVESTMENTS IN FIXED INCOME SECURITIES OF VARYING
MATURITIES WITH A DOLLAR-WEIGHTED AVERAGE PORTFOLIO DURATION OF BETWEEN THREE
AND EIGHT YEARS. PORTFOLIO HOLDINGS WILL BE INVESTED IN AREAS OF THE BOND MARKET
(BASED ON QUALITY, SECTOR, COUPON, OR MATURITY) WHICH PIMCO BELIEVES TO BE
RELATIVELY UNDERVALUED.
INVESTMENT PROCESS
PIMCO'S INVESTMENT PROCESS BEGINS WITH A MACROECONOMIC ANALYSIS OF SECULAR
AND CYCLICAL INTEREST RATES TRENDS. THE PORTFOLIO'S DURATION IS ESTABLISHED
BASED ON PIMCO'S EXPECTATIONS FOR CHANGES IN INTEREST RATES. THEN, PIMCO
EVALUATES THE YIELD CURVES POTENTIAL FOR STEEPENING OR FLATTENING. INDIVIDUAL
ISSUES ARE CHOSEN FOR THEIR RELATIVE VALUE.
COMMENTS FROM PACIFIC INVESTMENT MANAGEMENT COMPANY
For the six-month period covered by this report--August 1, 1996 through
January 31, 1997--the Portfolio's 5.53% return (exclusive of the PACE Program
Fee) outperformed the Lehman Brothers Government/Corporate Bond Index return of
4.75%. As of January 31, 1997, net assets of the Portfolio had increased to
$59.3 million.
Moderate interest rate declines were beneficial to the Portfolio during the
period due to its longer-than-index duration (5.7 years for the Portfolio vs.
5.1 years for the Index). Exposure to coupon pass-through collateral,
adjustable-rate mortgage issues (ARMs) and collateralized mortgage obligations,
as well as judicious use of cash equivalents, also aided relative performance.
Mortgage-backed securities continued to outperform because of their yield
premiums and relative price gains over Treasuries. Within the mortgage sector,
fixed-rate pass-throughs continued to benefit from the range-bound movement of
Treasury yields, which drive borrowing rates for their underlying mortgage
loans. Also, ARMs continued to perform strongly during the period as their
higher yields and tightening spreads led them to outperform other short-duration
instruments.
The Portfolio remained underweighted in the corporate sector throughout the
period. This was a slight drag on relative performance as yield spreads to
Treasuries continued to contract. We, however, continue to believe that yield
differentials in the corporate market do not offer adequate compensation for
credit risk.
Despite recently stronger GDP growth, we remain confident that coming
quarters will see the U.S. economy grow less quickly than market expectations.
This, together with a benign inflation outlook, create a backdrop for
potentially attractive returns for 1997.
6
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PACE MUNICIPAL FIXED INCOME INVESTMENTS
MANAGED BY MORGAN GRENFELL CAPITAL MANAGEMENT, INCORPORATED, THE PORTFOLIO'S
INVESTMENT OBJECTIVE IS HIGH CURRENT INCOME EXEMPT FROM FEDERAL INCOME TAX
THROUGH INVESTMENT IN GENERAL OBLIGATION, REVENUE, AND PRIVATE ACTIVITY BONDS
AND NOTES, THE INTEREST ON WHICH IS EXEMPT FROM FEDERAL INCOME TAX, WITH A
DOLLAR-WEIGHTED AVERAGE PORTFOLIO DURATION OF BETWEEN THREE AND SEVEN YEARS.
INVESTMENT PROCESS
MORGAN GRENFELL SEEKS TO PROVIDE CONSISTENT RETURNS WITH LOW VOLATILITY BY
FOCUSING ON OPTIMAL ISSUE SELECTION AND NOT ATTEMPTING TO FORECAST INTEREST RATE
MOVES. THE PORTFOLIO IS CONSTRUCTED OF HIGH-QUALITY SECURITIES ACROSS ALL
MATURITIES SO THAT ITS AVERAGE DURATION APPROXIMATES THAT OF ITS BENCHMARK.
ISSUES WITH FEDERAL GOVERNMENT BACKING, MORTGAGE COLLATERAL, AND OTHER CREDIT
ENHANCEMENTS ARE PREFERRED, WITH A LIMITED INVESTMENT IN REVENUE AND GENERAL
OBLIGATION ISSUES. ISSUE SIZE IS NOT AS IMPORTANT AS THE ISSUER'S ABILITY TO PAY
PRINCIPAL AND INTEREST.
COMMENTS FROM MORGAN GRENFELL CAPITAL MANAGEMENT, INC.
For the six-month period covered by this report--August 1, 1996 through
January 31, 1997--the Portfolio had a total return of 4.04% (exclusive of the
PACE Program Fee), which outperformed the Lehman Brothers Municipal Five-Year
Index return of 3.26%. As of January 31, 1997, net assets of the Portfolio had
grown to $24.6 million.
The municipal markets outperformed the U.S. Treasury bond market during this
timeframe, due to continued low new muni issue supply and investors' dissipating
fears regarding major tax code changes. Within this environment, we kept the
Portfolio's duration (4.5 years) slightly longer than that of the Index (4.2
years), which positively impacted performance as longer maturities outperformed.
As is consistent with our investment style, we continued to focus on securities
of the highest investment quality and were overweighted in high-quality, U.S.
government-backed sectors, including FHA, FNMA, and GNMA during the period.
Higher quality credit issues underperformed lower quality credit issues during
the period as investors' optimism about the economy's low inflation and stable
growth increased risk tolerance and, therefore, caused investors to seek higher
yielding securities.
Looking ahead, we believe that with inflation under control and a healthy
municipal issue supply/ demand relationship, municipals should perform in line
with Treasuries going forward. We also believe that an increase in interest
rates would cause a reversal of last period's trend of lower quality issues
outperforming higher quality issues. As always, we will continue to focus on
high quality municipal securities that we believe offer relative value.
7
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PACE GLOBAL FIXED INCOME INVESTMENTS
MANAGED BY ROGGE GLOBAL PARTNERS PLC, THE PORTFOLIO'S INVESTMENT OBJECTIVE
IS HIGH TOTAL RETURN THROUGH INVESTMENT IN HIGH-GRADE FIXED INCOME SECURITIES
ISSUED BY DOMESTIC AND FOREIGN GOVERNMENTS AND SUPRANATIONAL ENTITIES AND
PRIVATE ISSUERS LOCATED OVERSEAS, WITH A DOLLAR-WEIGHTED AVERAGE PORTFOLIO
DURATION OF BETWEEN FOUR AND EIGHT YEARS.
INVESTMENT PROCESS
ROGGE GLOBAL PARTNERS BELIEVES THAT, OVER TIME, FINANCIALLY HEALTHY
COUNTRIES PRODUCE THE HIGHEST BOND AND CURRENCY RETURNS. THEY USE A TOP-DOWN
FUNDAMENTAL APPROACH TO IDENTIFY RELATIVE VALUE ACROSS COUNTRIES. RATINGS BASED
ON THIS ANALYSIS ALLOW THEM TO FORECAST EXPECTED CHANGES IN INTEREST AND
EXCHANGE RATES OVER A 12-MONTH HORIZON. AN OPTIMIZATION MODEL IS THEN USED TO
DETERMINE COUNTRY/CURRENCY AND DURATION POSITIONS.
COMMENTS FROM ROGGE GLOBAL PARTNERS PLC
For the six-month period covered by this report--August 1, 1996 through
January 31, 1997--the Portfolio's total return of 1.50% (excluding the PACE
Program Fee) outperformed the Salomon Brothers World Government Index's 0.44%
return. The Portfolio's net assets as of January 31, 1997 had increased to $48.6
million.
The generally favorable environment for global bonds lasted through much of
1996, but turned negative in December when concern over Fed Chairman Greenspan's
comments about better-than-expected U.S. economic figures provoked some year-end
profit taking. In January, the dollar rose sharply against both the yen and the
deutschemark, hurting global bond returns. Themes that bolstered the global
markets included tight fiscal policies worldwide, coupled with moderate global
growth and inflation. Given this, the countries that are working hardest to
reduce spending and bolster saving performed the best. These included Italy,
Sweden, Australia and Canada, countries in which we were overweighted during the
period, thereby benefiting performance. We maintained an underweighting in Japan
because of an economic environment in which real interest rates are low, debt is
rising, and savings are falling.
During this time period, the Portfolio's duration was longer than its
benchmark and, due to falling inflation expectations, long maturity bonds
outperformed. Toward the latter part of the period, we held 30-year bonds, among
others, in the U.S., Germany, and Denmark, and raised cash in the U.K. and
Canada given our belief that rates were due to come under pressure.
Looking forward, we continue to believe that global bonds can offer
attractive yields. Real interest rates remain high in selected countries while
inflation remains stable globally. In most countries, fiscal policy remains
tight, with European countries pushing to qualify for EMU, and Dollar Bloc
countries trying to reform after years of overspending. Given this, we believe
that in spite of some signs of growth in the U.S., we are moving once again into
an era when economic growth is decoupled from bond yields. This implies lower
rates even if economic growth picks up slightly.
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PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
MANAGED BY BRINSON PARTNERS, INC., THE PORTFOLIO'S INVESTMENT OBJECTIVE IS
CAPITAL APPRECIATION AND DIVIDEND INCOME THROUGH INVESTMENT IN EQUITY SECURITIES
THAT, IN BRINSON'S OPINION, ARE UNDERVALUED. UNDER NORMAL CONDITIONS, AT LEAST
65% OF THE PORTFOLIO'S TOTAL ASSETS WILL BE INVESTED IN COMMON STOCKS OF
COMPANIES WITH TOTAL MARKET CAPITALIZATION OF $2.5 BILLION OR GREATER.
INVESTMENT PROCESS
BRINSON PARTNERS' PHILOSOPHY INCORPORATES BOTH TOP-DOWN AND BOTTOM-UP
ELEMENTS. BRINSON PARTNERS LOOKS FOR UNDERVALUED ISSUES IN THE CONTEXT OF AN
OVERALL MACROECONOMIC AND MARKET OUTLOOK. FUNDAMENTAL ANALYSIS IS CONDUCTED BY
THE FIRM'S INDUSTRY ANALYSTS ON A UNIVERSE OF 700 STOCKS. THE RESULTS OF THEIR
GROWTH AND CASH FLOW PROJECTIONS ARE INCORPORATED INTO A PROPRIETARY VALUATION
MODEL. THIS MODEL AIDS IN THE CALCULATION AND RANKING OF SECURITIES. THESE
QUANTITATIVE TOOLS, IN COMBINATION WITH THE JUDGMENT OF SENIOR INVESTMENT
PROFESSIONALS, DETERMINE WHICH SECURITIES ARE INCLUDED IN THE PORTFOLIO.
COMMENTS FROM BRINSON PARTNERS, INC.
For the period covered by this report--August 1, 1996 through January 31,
1997--the Portfolio returned 22.85% (exclusive of the PACE Program Fee), which
outperformed the Wilshire Large Company Value Index return of 20.35%. During
this time period, the Portfolio's net assets grew to $128.3 million. Its top
five sector allocations as of January 31, 1997 were health care (13.4% of the
Portfolio's net assets), non-durables (11.7%), financials/banks (10.9%), capital
goods (10.0%), and financial/non-banks (8.8%).
Contributing to the Portfolio's strong performance during this time period
was the banking sector, with both Chase Manhattan (4.8%) and Citicorp (3.7%),
two of the Portfolio's top ten holdings, outperforming the market. However, we
trimmed our Citicorp position toward the latter part of the period because we
believe the current price is approaching its fair value. Litigation concerns
negatively impacted tobacco stocks at the beginning of the period, including
Philip Morris (3.4%), but the industry rebounded at the end of the period and
benefited performance. Other contributors to performance were the cosmetics
industry, particularly the Portfolio's holdings in Avon (1.5%), which
experienced strong earnings growth from its expansion in emerging markets,
technology holdings such as EMC Corporation (1.9%) and Tyson Foods (1.5%).
The Portfolio has maintained underweight exposure to energy stocks since its
inception, which detracted from performance only recently in the fourth quarter
of 1996. The pollution control industry, where we hold WMX Technologies (2.1%),
was weak as well, and Forest Labs (0.9%), a drug company, which has also
underperformed.
Looking ahead, we continue to find attractive valuations in the banking and
insurance industries, where mergers have increased efficiency and raised market
share. We continue to hold a meaningful underweight in telephones, where
deregulation, new technology, and intensifying competition will continue to
pressure profitability. The transportation industry will benefit from regulatory
change that enables railroads to shed excess and abandon unprofitable routes. We
have exposure to the railroad industry through Burlington Northern Santa Fe
(3.6%). We estimate that health care spending by the year 2000 will rise to 16%
of GDP from its current level of 14%, which is supported by demographics. Our
overweight in health care is concentrated in drug companies that can maintain
profitability in an increasingly competitive environment. Finally, electric
utilities, where we continue to hold a meaningful underweight in the Portfolio,
are likely to suffer from a reduction in regulatory protection.
9
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PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS
MANAGED BY CHANCELLOR LGT ASSET MANAGEMENT, INC., THE PORTFOLIO'S OBJECTIVE
IS CAPITAL APPRECIATION THROUGH INVESTMENT IN EQUITY SECURITIES OF COMPANIES
THAT, IN CHANCELLOR'S OPINION, ARE CHARACTERIZED BY AN EARNINGS GROWTH RATE
FASTER THAN THAT OF THE S&P 500 INDEX. UNDER NORMAL CONDITIONS, AT LEAST 65% OF
TOTAL ASSETS WILL BE INVESTED IN COMMON STOCKS OF COMPANIES WITH TOTAL MARKET
CAPITALIZATION OF $2.5 BILLION OR GREATER.
INVESTMENT PROCESS
CHANCELLOR LGT ASSET MANAGEMENT, INC. SEEKS TO INVEST IN LARGE
CAPITALIZATION COMPANIES THAT HAVE SECURE, ABOVE-AVERAGE SECULAR GROWTH PROFILES
AND POTENTIAL FOR IMPROVING NEAR-TERM EARNINGS MOMENTUM. STOCK SELECTION IS
BASED ON A RANKING SYSTEM THAT WEIGHS FUNDAMENTAL RESEARCH AND QUANTITATIVE AND
VALUATION INPUTS IN 40/40/20 PROPORTIONS. CHANCELLOR PURCHASES STOCKS FOR THE
PORTFOLIO RANKED IN THE TOP 30% OF THE COMBINED STOCK RANKING AND BUILDS THE
PORTFOLIO REFLECTING THE ESTABLISHED INDUSTRY WEIGHTS.
COMMENTS FROM CHANCELLOR LGT ASSET MANAGEMENT, INC.
For the time period covered by this report--August 1, 1996 through January
31, 1997--the portfolio returned 23.33% (excluding the PACE Program Fee),
underperforming the Wilshire Large Company Growth Index return of 26.73%. As of
January 31, 1997, the Portfolio's net assets had increased to $113.2 million,
and its top five sector allocations were in information processing (19.0% of the
Portfolio's net assets), health care (19.0%), electronics (9.0%), finance/banks
(7.0%) and aerospace/transportation (7.0%).
While the Portfolio's performance was strong at the beginning of the period,
it lagged during the latter part of the period relative to the benchmark. In the
earlier three month period, stocks with positive earnings revisions performed
well, which benefited the Portfolio. However, between November and January, the
overall stock market's performance was heavily skewed toward liquid, mega
large-cap issues, while large cap stocks in the $1B-$10B capitalization range
trailed meaningfully. Because we typically equal-weight our holdings, the
largest cap issues in the Portfolio are generally underweighted compared to the
largest capitalization stocks in the Wilshire Large Cap Growth Index. Therefore,
the significant outperformance of the largest cap stocks versus other large- and
mid-cap issues adversely affected the Portfolio's performance relative to the
Index. Also, the Portfolio's exposure in technology issues (28.0% as of January
31, 1997), more specifically in networking stocks, which represented a sizable
overweight relative to the Index, was costly during the period. These networking
stocks have high price-to-earnings ratios, fall within the lower range of the
large-capitalization stocks, and suffered price declines with changes in
sentiment in the technology sector.
Some of the Portfolio's changes during this period were strategically
beneficial. We increased our exposure in electronics by adding Adaptec (1.4%),
Motorola (1.1%) and Texas Instruments (1.1%) in light of improving business
fundamentals and a favorable outlook for 1997. We raised our exposure to
finance-banks by adding Citicorp (1.5%) to the Portfolio in light of improving
competitive dynamics and reasonable valuation among money center banks. We
lowered our exposure to retail based on weaker-than-expected sales. The
Portfolio's position in Federated was eliminated, and we trimmed positions in
Dayton Hudson (1.6%) and Kohls Corp. (1.0%).
Looking ahead, we believe that equities have the potential to produce
positive, though less impressive, returns for investors in 1997. Given the 70%
rise in the broad market over the last two years, it would not be surprising to
see a 3% to 7% correction at some point during the year. However, our large-cap
growth focus remains on owning companies where the key business fundamentals are
strong and there is a high probability of positive earnings surprises. We expect
earnings growth of around 30% for the stocks in the Portfolio.
10
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PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
MANAGED BY BRANDYWINE ASSET MANAGEMENT, INC., THE PORTFOLIO'S INVESTMENT
OBJECTIVE IS CAPITAL APPRECIATION THROUGH INVESTMENT PRIMARILY IN EQUITY
SECURITIES THAT, IN BRANDYWINE'S OPINION, ARE UNDERVALUED OR OVERLOOKED IN THE
MARKETPLACE AT THE TIME OF PURCHASE, WHICH GENERALLY HAVE BELOW-MARKET AVERAGE
PRICE-TO-EARNINGS RATIOS. UNDER NORMAL CONDITIONS, AT LEAST 65% OF THE
PORTFOLIO'S TOTAL ASSETS WILL BE INVESTED IN COMPANIES WITH TOTAL MARKET
CAPITALIZATION OF LESS THAN $2.5 BILLION.
INVESTMENT PROCESS
BRANDYWINE FIRST NARROWS THE SMALL COMPANY UNIVERSE TO APPROXIMATELY 650
SMALL CAPITALIZATION VALUE STOCKS THROUGH THE USE OF THREE QUANTITATIVE
SCREENING CRITERIA: POSITIVE TRAILING 12-MONTH OPERATING EARNINGS; THE LOWEST
PRICE-TO-EARNINGS QUARTILE BASED ON THE TRAILING 12-MONTH OPERATING EARNINGS;
AND MARKET CAP GREATER THAN $10 MILLION BUT LOWER THAN MEDIAN CAPITALIZATION OF
THE NEW YORK STOCK EXCHANGE. A HANDS-ON FUNDAMENTAL REVIEW OF EACH STOCK FURTHER
NARROWS THE LIST BY EXCLUDING STOCKS FOR THE FOLLOWING: ADJUSTMENTS TO EARNINGS
THAT ELIMINATE NON-OPERATING GAINS, THUS RAISING THE STOCK'S PRICE-TO-EARNINGS
RATIO ABOVE THE LOWER QUARTILE; STRONG RECENT PRICE GAINS; OR SEVERE OR SUDDEN
FUNDAMENTAL DETERIORATION.
COMMENTS FROM BRANDYWINE ASSET MANAGEMENT, INC.
For the time period covered by this report--August 1, 1996 through January
31, 1997--the Portfolio's 23.16% return (exclusive of the PACE Program Fee)
significantly outperformed the Wilshire Small Company Value Index return of
17.34%. As of January 31, 1997, the Portfolio's net assets had increased to
$98.3 million. The top five sector allocations were in finance (32.9% of the
Portfolio's net assets), producer manufacturing (12.9%), technology (10.2%),
utilities (8.4%) and consumer durables (7.7%).
Though small cap stocks trailed the market for most of this time period, the
Portfolio's strong relative performance was due to a number of factors. We
increased our weightings in technology and financials as poor performance early
in the year generated attractive valuations. Both these sectors did well in the
fourth quarter of 1996 and early 1997, leading to strong Portfolio returns.
Financials benefited from lower interest rates and continued consolidation in
the bank and insurance fields. The small-cap semiconductor and semiconductor
equipment firms we added to the Portfolio rallied on the belief that the
semiconductor cycle had bottomed in late 1996. The Portfolio's economically
sensitive holdings also performed well as the economy continued to grow with no
indications of overheating.
Over the last two years, the market's exceptional performance has primarily
been driven by the very largest stocks. Because many of these stocks have
reached rich valuations, we believe that in 1997, smaller cap stocks have a
better opportunity to provide superior returns. Within the Portfolio, we have
begun to reduce our financial and technology weightings as many of these stocks
have risen to our valuation targets. We are increasing our holdings in stocks
and sectors, such as utilities, that have lagged the market and are now at
attractive valuations.
11
<PAGE>
PACE SMALL/MEDIUM COMPANY GROWTH EQUITY INVESTMENTS
MANAGED BY DELAWARE INVESTMENT ADVISERS, THE PORTFOLIO'S INVESTMENT
OBJECTIVE IS CAPITAL APPRECIATION THROUGH INVESTMENT PRIMARILY IN THE COMMON
STOCK OF "EMERGING GROWTH" COMPANIES, COMPANIES CHARACTERIZED BY ABOVE-AVERAGE
GROWTH OF EARNINGS RATES. UNDER NORMAL CONDITIONS, AT LEAST 80% OF THE
PORTFOLIO'S TOTAL ASSETS WILL BE INVESTED IN COMMON STOCK OF ISSUERS WITH A
TOTAL MARKET CAPITALIZATION OF LESS THAN $2.5 BILLION.
INVESTMENT PROCESS
DELAWARE INVESTMENT ADVISERS LOOKS FOR COMPANIES EXHIBITING ANNUAL EARNINGS
GROWTH OF 25% OR MORE BUT PRICED AT A MODEST PREMIUM TO THE S&P'S MULTIPLE.
OTHER IMPORTANT FACTORS IN THE INVESTMENT PROCESS INCLUDE FREE CASH FLOW, STRONG
MANAGEMENT WITH INSIDER OWNERSHIP, AND POTENTIAL FOR EARNINGS SURPRISES.
COMPANIES ARE IDENTIFIED USING IN-DEPTH FUNDAMENTAL, BOTTOM-UP ANALYSIS.
COMMENTS FROM DELAWARE INVESTMENT ADVISERS
For the time period covered by this report--August 1, 1996 through January
31, 1997--the Portfolio's total return was 17.59% (exclusive of the PACE Program
Fee), which outperformed the Wilshire Small Company Growth Index return of
16.26%. As of January 31, 1997, the Portfolio's net assets had increased to
$94.4 million. The top five sector allocations were in technology (20.4% of the
Portfolio's net assets), business services (14.2%), consumer nondurables
(13.9%), consumer services (12.9%) and health care (11.0%).
Though the Portfolio did well against the Index, divergence in performance
between large-cap and small-cap issues continued through the period. Slower cash
flows into aggressive growth mutual funds, and a record number of new offerings
impacted small-cap performance a great deal during the period; yet by the end of
the period, the number of new offerings coming to market had somewhat
dissipated.
Significant portfolio changes were made during this reporting period due to
a management change. On December 17, 1996, Delaware Investment Advisers assumed
management of the Portfolio, replacing Westfield Capital Management Company,
Inc. At the start of the period, the Portfolio had been heavily weighted in
technology, which was the worst performer in the Index, and cyclicals, which
impaired relative performance as premium retailers underperformed discounters in
their industry. Changes in the Portfolio included shifting to a moderate
overweighting in the technology, business services and consumer services
sectors. We continue to seek the best quality companies at reasonable
valuations. Fundamentals remain intact for the majority of companies within our
universe; however, areas of weakness may be found in certain soft good
retailers, the direct sales of personal computers to the consumer, and the
health care sector, which turned sluggish in the fourth quarter of 1996.
Given our outlook for moderate economic growth and stable interest rates,
plus the relative undervaluation of small-company growth stocks, we are
cautiously optimistic for 1997.
12
<PAGE>
PACE INTERNATIONAL EQUITY INVESTMENTS
MANAGED BY MARTIN CURRIE INC., THE PORTFOLIO'S INVESTMENT OBJECTIVE IS
CAPITAL APPRECIATION THROUGH INVESTMENT IN EQUITY SECURITIES OF COMPANIES
DOMICILED OUTSIDE THE UNITED STATES. UNDER NORMAL CONDITIONS, AT LEAST 65% OF
THE PORTFOLIO'S TOTAL ASSETS WILL BE INVESTED IN EQUITY SECURITIES OF COMPANIES
DOMICILED IN THREE OR MORE COUNTRIES OUTSIDE THE U.S. UP TO 10% OF THE
PORTFOLIO'S TOTAL ASSETS MAY BE INVESTED IN EMERGING MARKETS.
INVESTMENT PROCESS
MARTIN CURRIE LOOKS FOR COMPANIES THAT EXHIBIT STRONG FUNDAMENTALS AND
ATTRACTIVE VALUATIONS BASED ON ESTIMATES OF FUTURE EARNINGS. COUNTRY ALLOCATION
DECISIONS ARE BASED ON CRITERIA THAT INCLUDE ECONOMIC AND POLITICAL STABILITY,
THE BREADTH AND LIQUIDITY OF THE MARKET, THE NATURE OF THE LOCAL INVESTOR,
CURRENCY OUTLOOK, SETTLEMENT SYSTEM, AND VALUATION. UP TO 75% OF THE FOREIGN
CURRENCY EXPOSURE MAY BE HEDGED BACK TO THE U.S. DOLLAR.
COMMENTS FROM MARTIN CURRIE INC.
For the time period covered by this report--August 1, 1996 through January
31, 1997--the Portfolio's return of 4.93% (exclusive of the PACE Program Fee)
significantly outperformed the Morgan Stanley Capital International's Europe,
Australia and Far East (MSCI EAFE) Index return of 0.86%. The Portfolio's
performance was due in large part to a reduction in the Portfolio's yen hedge,
which improved return as the yen depreciated against the dollar, and an increase
in our U.K. holdings.
As of January 31, 1997, the Portfolio's net assets had grown to $69.2
million. The top five country allocations were Japan (17.2% of the Portfolio's
net assets), United Kingdom (16.7%), Germany (7.5%), Hong Kong (7.3%) and France
(7.3%). The top five sector allocations were in finance (25.0%), consumer
(22.5%), capital goods (21.9%), utilities (10.3%) and basic industries (9.9%).
At the beginning of the period, the Portfolio benefited from its holdings in
Continental Europe and the U.K. Continental Europe continued to exhibit
strength, particularly in the manufacturing sector, which stands to benefit from
a stronger global economy and improved competitiveness through lower exchange
rates. Japan continued to be the worst performer of the major markets. Hong Kong
led most Asian markets, with both property stocks and the financial sector
fueling the rally. The rest of Asia showed sharp declines.
Continuing through the period, European markets strengthened, boosted by
lower bond yields and a firm dollar, as well as continued corporate
restructuring. We sold off holdings where valuations had become stretched, such
as L'Oreal and Vienna Airport, due to our concerns over their earnings outlook.
We continued to add to U.K. holdings, particularly utilities, and maintained an
underweight position in financials as we anticipate higher interest rates this
year. We continued to reduce our exposure to Japan. Asian markets began to
recover during the period, and our overweight position in Hong Kong was
beneficial. Here, the real estate market strengthened, and stocks such as Amoy
(0.8%) enjoyed a good quarter. We sold all our holdings in the Thai market due
to our concerns about the banking system and currency. We expect interest rates
in the region to fall a little further, particularly in Malaysia, Indonesia and
the Philippines. Latin markets strengthened, and out stock selection in Mexico
has centered on domestic plays that have performed well. In addition, we added
to our holdings in Venezuela, with the purchase of CanTV (0.7%).
Looking ahead, we are optimistic that international equities can make
further progress. We favor selected markets in the Far East, particularly Hong
Kong and India. We will continue to hold positions in Central and South America,
where there has been a return in confidence as economies recover. In Continental
Europe, we have backed stocks where we see the potential for restructuring, and
expect the focus to remain on shareholder value. Finally, we are pessimistic
about the outlook for Japan in the absence of strong economic growth.
13
<PAGE>
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
MANAGED BY SCHRODER CAPITAL MANAGEMENT INTERNATIONAL INC., THE PORTFOLIO'S
INVESTMENT OBJECTIVE IS LONG-TERM CAPITAL APPRECIATION PRIMARILY THROUGH
INVESTING, UNDER NORMAL CONDITIONS, AT LEAST 65% OF ITS TOTAL ASSETS IN EQUITY
SECURITIES OF ISSUERS IN THREE OR MORE EMERGING MARKETS.
INVESTMENT PROCESS
SCHRODER CAPITAL MANAGEMENT INTERNATIONAL INC. UTILIZES AN EXTENSIVE NETWORK
OF REGIONAL SPECIALISTS AND ANALYSTS IN 11 COUNTRIES. THIS LOCAL PRESENCE
SUPPORTS AN INTENSIVE COMPANY RESEARCH PROGRAM THAT IS ESSENTIAL IN EMERGING
MARKETS. THE PROPRIETARY RESEARCH COMPILED IS THEN USED TO IDENTIFY COMPANIES
WHOSE CHARACTERISTICS FALL WITHIN SCHRODER'S CRITERIA, INCLUDING PROFESSIONAL
MANAGEMENT, SUSTAINABLE EARNINGS GROWTH, A HIGH DOMESTIC MARKET SHARE, AND
CREDIBLE ACCOUNTING STANDARDS.
COMMENTS FROM SCHRODER CAPITAL MANAGEMENT INTERNATIONAL INC.
For the time period covered by this report--August 1, 1996 through January
31, 1997--the Portfolio returned 7.48% (exclusive of the PACE Program Fee),
which underperformed the MSCI Emerging Markets Free Index return of 9.13%. A
large part of this underperformance was due to a significant overweight position
in Korea, where the market declined 20.9% for the period as a result of
political scandals.
As of January 31, 1997, the Portfolio's net assets had increased to $38.1
million. The regional allocations as of the same date were: East Asia (39.0% of
the Portfolio's net assets), Latin America (29.9%), and Europe/South Africa
(21.6%). The top five sector allocations were in services (26.6%), finance
(19.9%), energy (17.7%), capital equipment (9.3%) and materials (7.1%).
The Portfolio's continued strategy has been to emphasize the regional
weighting in Asia, since we believe that Asian emerging markets provide
long-term investment opportunities, particularly in China. The easing of the
austerity program should fuel the pickup in cyclical economic activity. We also
anticipate a smooth transition for Hong Kong, which should further benefit
China's overall growth. However, performance throughout the region has been
extremely varied. During the fall, the best performer was Indonesia, while
Korea, India and Thailand fell back on current political pressures. This
continued through the winter, with the economy in the Philippines boosting
market returns along with Indonesia.
Latin American markets also turned in a mixed performance, but the Portfolio
benefited from an overweight position in Mexico, where inflation has improved
expectations and the peso has stabilized, and Brazil, where the market rose in
recognition of successful inflation controls. Argentina was positive for most of
the period in light of the expectation that the economy is about to emerge from
its year-long recession following the Mexican crisis.
Other countries showing gains over the period include Turkey, which
benefited from its government's new economic program that hopes to help cut the
budget deficit and keep inflation in check; Poland, though trade remained
moderate in the winter; and Israel, which was buoyed by the prospect of strong
economic growth for 1997. Poor performers include the Czech Republic, where
rumors of a banking crisis depressed the market, and South Africa, due to weak
gold prices and a weak Rand.
Going forward, we have strategically overweighted regionally in Asia.
Although there has been a cyclical slowdown in the general economies of this
region, emerging Asia remains attractive on a long-term outlook. GDP growth
should continue to out-pace those of the developed countries, albeit at a more
moderate level. Beginning signs of a cyclical recovery in Japan and continued G7
growth should reignite regional economic activity. But country selectivity is
still important. Thailand and Korea are now trading at attractive valuations
after suffering from major market corrections, but we remain cautious.
Thailand's financial sectors are still shaky, and Korea's political environment
is too uncertain to commit to new investments. Taiwan is starting to look
expensive, while India is a wait-and-see case depending on election outcome.
14
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Portfolios of Investments
January 31, 1997 (unaudited)
- --------------------------------------------------------------------------------
PACE MONEY MARKET INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL MATURITY INTEREST
AMOUNT (000) DATES RATES VALUE
- ------------ ------------------ ----------------- ----------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--17.51%
$100 U.S. Treasury Note................................. 02/01/97 6.875 % $ 100,129
500 Federal Farm Credit Bank*.......................... 06/03/97 5.245 499,960
605 Federal Home Loan Bank............................. 08/14/97 to 5.810 to 6.050 605,000
02/12/98
100 Federal Home Loan Bank*............................ 03/20/97 5.582 100,000
450 Student Loan Marketing Association................. 11/28/97 to 5.630 to 5.750 450,000
01/08/98
500 Student Loan Marketing Association*................ 02/04/97 5.290 500,000
----------
Total U.S. Government and Agency Obligations
(cost--$2,255,089)............................................... 2,255,089
----------
BANK NOTES--7.38%
DOMESTIC--7.38%
600 Bank America National Trust & Savings Assoc. ...... 05/07/97 to 5.500 to 5.520 599,869
11/21/97
150 PNC Bank, N.A.*.................................... 02/04/97 5.440 149,970
200 FCC National Bank.................................. 05/12/97 5.500 200,026
----------
Total Bank Notes (cost--$949,865)................................ 949,865
----------
CERTIFICATES OF DEPOSIT--15.30%
BANKING--1.94%
250 Bankers Trust New York Corp.*...................... 02/04/97 5.540 250,000
----------
YANKEE--13.36%
600 Dai-Ichi Kangyo Bank Ltd. ......................... 02/10/97 5.430 600,003
600 Industrial Bank of Japan Ltd. ..................... 02/06/97 5.500 to 5.540 600,008
520 Societe Generale................................... 03/31/97 to 5.580 to 6.090 520,042
10/21/97
----------
1,720,053
----------
Total Certificates of Deposit (cost--$1,970,053)................. 1,970,053
----------
COMMERCIAL PAPER--44.58%
ASSET-BACKED--11.23%
600 Asset Securitization Cooperative Corp. ............ 02/14/97 to 5.340 to 5.400 597,368
03/19/97
325 Falcon Asset Securitization Corp................... 02/03/97 5.370 324,903
275 Preferred Receivables Funding Corp................. 02/05/97 5.320 274,837
250 Triple-A One Funding Corp. ........................ 03/04/97 5.330 248,853
----------
1,445,961
----------
AUTO & TRUCK--4.70%
605 General Motors Acceptance Corp. ................... 02/03/97 5.360 604,811
----------
BANKING--8.53%
400 BEX America Finance Inc............................ 02/07/97 5.350 399,643
300 BHF Finance (DE) Inc............................... 02/13/97 5.340 299,466
400 Den Danske Corp. Inc............................... 02/07/97 5.320 399,645
----------
1,098,754
----------
FINANCE-CONDUIT--3.10%
400 Compagnie Bancaire................................. 02/20/97 5.310 398,879
----------
FINANCE-DIVERSIFIED--3.10%
400 Heller Financial Inc............................... 02/13/97 5.360 399,285
----------
GENERAL TRADE--2.33%
300 Mitsubishi International Corp...................... 02/11/97 5.380 299,552
----------
</TABLE>
15
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE MONEY MARKET INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL MATURITY INTEREST
AMOUNT (000) DATES RATES VALUE
- ------------ ------------------ ----------------- ----------
</TABLE>
COMMERCIAL PAPER--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
INSURANCE--7.72%
$618 ITT Hartford Group Inc. ........................... 02/11/97 to 5.350 % $ 616,821
02/18/97
378 St. Paul Companies, Inc............................ 02/06/97 5.280 377,723
----------
994,544
----------
TELECOMMUNICATIONS--3.87%
500 Ameritech Capital Funding Corp..................... 02/18/97 5.550 498,690
----------
Total Commercial Paper (cost--$5,740,476)........................ 5,740,476
----------
<CAPTION>
<C> <S> <C> <C> <C>
SHORT-TERM CORPORATE OBLIGATIONS--15.37%
BANKING--1.55%
200 Bankers Trust New York Corp.*...................... 02/14/97 5.510 200,000
----------
BROKER-DEALER--6.41%
375 Bear Stearns Companies Inc......................... 04/21/97 to 5.750 to 6.010 375,061
07/03/97
150 Merrill Lynch & Company Inc........................ 03/17/97 5.560 150,000
300 Merrill Lynch & Company Inc.*...................... 02/03/97 to 5.430 to 5.530 299,980
02/04/97
----------
825,041
----------
FINANCE-DIVERSIFIED--5.06%
150 Associates Corporation of North America............ 06/15/97 8.625 151,475
500 CIT Group Holdings Inc.*........................... 02/03/97 5.330 to 5.350 499,805
----------
651,280
----------
FOOD & BEVERAGE--0.80%
100 Philip Morris Companies Inc........................ 12/01/97 9.250 102,847
----------
INSURANCE--1.55%
200 Prudential Funding Corp............................ 01/06/98 5.680 200,000
----------
Total Short-Term Corporate Obligations (cost--$1,979,168)........ 1,979,168
----------
Total Investments (cost--$12,894,651)--100.14%................... 12,894,651
Liabilities in excess of other assets--(0.14)%................... (17,662)
----------
Net Assets--100.00%.............................................. $12,876,989
<CAPTION>
<C> <S> <C> <C> <C>
----------
----------
</TABLE>
- ---------------
* Variable rate securities--maturity date reflects earlier of reset date or
maturity date. The interest rates shown are the current rates as of January
31, 1997, and reset periodically.
Weighted average maturity--62 days
See accompanying notes to financial statements
16
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL MATURITY INTEREST
AMOUNT (000) DATES RATES VALUE
- ------------ ------------------ ----------------- -----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--20.76%
$ 3,615 GNMA II ARM....................................... 11/20/21 to 6.000 to 7.000% $ 3,682,205
04/20/24
11,750 GNMA TBA.......................................... TBA 7.500 11,775,697
1,371 GNMA.............................................. 08/15/21 to 7.500 1,336,381
04/20/24
-----------
Total Government National Mortgage Association Certificates
(cost--$16,640,424)........................................... 16,794,283
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES--29.79%
1,111 FHLMC............................................. 08/01/25 6.500 1,064,298
22,625 FHLMC Gold 30 Year TBA............................ TBA 6.000 to 7.500 22,102,809
936 FHLMC ARM......................................... 02/01/26 6.919 936,911
-----------
Total Federal Home Loan Mortgage Corporation Certificates
(cost--$24,001,621)........................................... 24,104,018
-----------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES--2.12%
966 FHA Project Note.................................. 05/01/17 7.880 971,688
737 FHA Project Note.................................. 08/01/20 7.430 747,447
-----------
Total Federal Housing Administration Certificates
(cost--$1,767,568)............................................ 1,719,135
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS--26.06%
316 FHLMC Series 1347, Class HC....................... 12/15/21 4.250 242,135
1,088 FHLMC Series 1360, Class PE....................... 12/15/17 3.500 974,772
209 FHLMC Series 1502, Class PXZ...................... 04/15/23 7.000 181,115
591 FHLMC Series 1552, Class C........................ 05/15/11 5.000 589,321
352 FHLMC Series 1585, Class C........................ 08/15/10 4.500 350,114
650 FHLMC Series 159, Class H......................... 09/15/21 4.500 537,829
2,696 FHLMC Series 1609, Class C........................ 02/15/11 5.000 2,686,148
497 FHLMC Series 1628, Class KZ....................... 12/15/23 6.250 405,491
239 FHLMC Series 1628, Class LZ....................... 12/15/23 6.500 195,030
936 FHLMC Series 1640, Class F (FRN).................. 10/15/07 5.900 936,503
117 FHLMC Series 1658, Class GZ....................... 01/15/24 7.000 99,339
352 FHLMC Series 1694, Class Z........................ 03/15/24 6.500 294,143
334 FHLMC Series 1755, Class J........................ 02/15/11 6.000 333,497
82 FHLMC Series 1775B, Class Z....................... 03/15/25 8.500 84,741
636 FHLMC Series 1808, Class ZK....................... 02/15/24 6.800 510,721
6,945 FHLMC Series 1927, Class PA....................... 11/15/04 6.500 6,966,703
71 FHLMC Series 23, Class KZ......................... 11/25/23 6.500 58,462
478 FHLMC Series 1534, Class Z........................ 06/15/23 5.000 313,441
56 FNMA Series 1993 - 250, Class Z................... 12/25/23 7.000 50,945
102 FNMA REMIC Trust 1992 - 147, Class PD............. 12/25/13 6.000 101,276
899 FNMA REMIC Trust 1992 - 48, Class E............... 04/25/03 7.300 899,738
980 FNMA REMIC Trust 1993 - 037, Class PXZ............ 03/25/23 7.000 831,523
400 FNMA REMIC Trust 1994 - 81, Class PB.............. 05/25/10 6.500 399,159
165 FNMA REMIC Trust 1992 - 129, Class L.............. 07/25/22 6.000 143,603
463 Prudential Home Mortgage 1993 - 29, Class A 8..... 08/25/08 6.750 436,183
172 Prudential Home Mortgage 1993 - 43, Class A1...... 10/25/23 5.400 169,193
1,123 Prudential Home Mortgage Pass Thru Series 1993-54,
Class A19....................................... 01/25/24 6.500 864,839
791 Resolution Trust Corporation Series 1993, Class
A2.............................................. 09/25/19 6.770 789,454
635 Resolution Trust Corporation Series 1995C1, Class
A3.............................................. 02/25/27 5.950 634,799
-----------
Total Collateralized Mortgage Obligations (cost--$21,003,190)... 21,080,217
-----------
</TABLE>
17
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL MATURITY INTEREST
AMOUNT (000) DATES RATES VALUE
- ------------ ------------------ ----------------- -----------
STRIPPED MORTGAGE-BACKED SECURITIES--1.24%
$ 2,789 FHLMC Series 1583, Class IB***.................... 11/15/13 7.000 (1) $ 121,139
325 FHLMC Series 1700, Class D**...................... 02/15/24 5.057 + 266,314
683 FHLMC Series 173-F**.............................. 06/15/21 5.978 + 618,646
-----------
Total Stripped Mortgage-Backed Securities (cost--$977,087)...... 1,006,099
-----------
COMMERCIAL PAPER--25.51%
2,800 Amoco Corp........................................ 03/19/97 5.270 2,779,845
1,000 Dupont E. I. De Nemours & Co. .................... 04/09/97 5.270 989,706
3,500 Ford Motor Credit Co.............................. 04/09/97 5.320 3,463,971
3,000 General Motors Acceptance Corp.................... 03/31/97 5.350 2,973,257
1,500 National Rural Utilities Co-op Financial Corp..... 02/19/97 to 5.290 to 5.310 1,495,023
03/24/97
3,500 New Center Asset Trust............................ 04/02/97 5.300 3,467,677
1,000 Procter & Gamble Co............................... 03/26/97 5.270 991,592
1,000 Shell Oil Co. .................................... 03/26/97 5.280 991,592
3,500 Southwestern Public Services Co. ................. 03/07/97 5.320 3,482,414
-----------
Total Commercial Paper (cost--$20,641,848)...................... 20,635,077
-----------
LONG-TERM U.S. GOVERNMENT OBLIGATIONS--12.22%
9,825 U.S. Treasury Notes (cost--$9,835,627)............ 07/31/00 to 6.125 to 7.000 9,882,894
07/15/06
-----------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--18.90%
4,500 Federal Home Loan Mortgage Discount Notes......... 02/26/97 to 5.230 to 5.390 4,478,965
04/16/97
10,900 Federal National Mortgage Association Discount
Notes........................................... 02/13/97 to 5.230 to 5.260 10,797,911
06/16/97
15 U.S. Treasury Bills ++............................ 05/01/97 5.020 14,814
-----------
Total Short-Term U.S. Government Obligations
(cost--$15,296,450)........................................... 15,291,690
-----------
REPURCHASE AGREEMENTS--3.86%
2,600 Repurchase Agreement dated 01/31/97 with Goldman
Sachs, collateralized by $2,664,024 U.S.
Treasury Notes, 12.375% due 05/15/04; proceeds:
$2,601,176 (cost--$2,600,000)................... 02/03/97 5.430 2,600,000
524 Repurchase Agreement dated 01/31/97 with State
Street Bank & Trust Company, collateralized by
$540,937 U.S. Treasury Notes, 11.250% due
02/15/15; proceeds: $524,207 (cost--$524,000)... 02/03/97 4.750 524,000
-----------
Total Repurchase Agreements (cost--$3,124,000).................. 3,124,000
-----------
Total Investments (cost--$113,287,815)--140.46%................. 113,637,413
Liabilities in excess of other assets--(40.46)%................. (32,732,169)
-----------
Net Assets--100.00%............................................. $80,905,244
-----------
-----------
</TABLE>
- ---------------
** Principal Only Security--This security entitles the holder to receive
principal payments from an underlying pool of mortgages. High
prepayments return principal faster than expected and cause the yield to
increase. Low prepayments return principal more slowly than expected and
cause the yield to decrease.
*** Interest Only Security--This security entitles the holder to receive
interest payments from an underlying pool of mortgages. The risk
associated with this security is related to the speed of principal
paydowns. High prepayments would result in a smaller amount of interest
being received and cause the yield to decrease. Low prepayments would
result in a greater amount of interest being received and cause the
yield to increase.
+ Estimated yield to maturity at January 31, 1997.
++ Entire or partial amount pledged as collateral for futures transactions.
ARM Adjustable Rate Mortgage--The interest rate shown is the current rate as
of January 31, 1997.
18
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
FRN Floating Rate Note--The interest rate shown is as of January 31, 1997.
REMIC Real Estate Mortgage Investment Conduit
TBA To Be Assigned--Securities are purchased on a forward commitment with an
approximate (generally +/-1.0%) principal amount and no definite maturity
date. The actual principal amount and maturity date will be determined
upon settlement when the specific mortgage pools are assigned.
(1) Annualized Yield at date of purchase was 9.05%
FUTURES CONTRACTS
<TABLE>
<CAPTION>
NUMBER OF IN EXPIRATION UNREALIZED
CONTRACTS CONTRACTS TO RECEIVE EXCHANGE FOR DATE APPRECIATION
- ----------------- ------------------------------------------------------------ ------------- ----------- -------------
<S> <C> <C> <C> <C>
8 10 year U.S. Treasury Notes................................. $ 870,250 March 1997 $ 7,250
------
------
</TABLE>
See accompanying notes to financial statements
19
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERMEDIATE FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL MATURITY INTEREST
AMOUNT (000) DATES RATES VALUE
- ------------ ------------------ ------------------- ----------
U.S. GOVERNMENT OBLIGATIONS--45.48%
$24,325 U.S. Treasury Notes (cost--$24,590,763).......... 07/31/98 to 5.625 to 7.500% $24,558,820
10/15/06
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--8.19%
826 GNMA............................................. 12/15/01 to 9.000 868,107
01/15/02
473 GNMA............................................. 07/15/04 to 9.500 503,568
09/15/04
957 GNMA............................................. 12/15/25 7.500 958,730
2,062 GNMA............................................. 10/20/25 to 6.500 2,094,401
07/20/26
----------
Total Government National Mortgage Association Certificates
(cost--$4,419,072)........................................... 4,424,806
----------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES--10.39%
5,124 FHLMC............................................ 01/01/25 to 8.000 5,230,213
11/01/25
383 FHLMC............................................ 12/01/99 5.500 380,473
----------
Total Federal Home Loan Mortgage Corporation Certificates
(cost--$5,657,244)........................................... 5,610,686
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--2.12%
1,130 FNMA (cost--$1,152,672).......................... 06/01/10 to 7.500 1,147,483
09/01/10
----------
COLLATERALIZED MORTGAGE OBLIGATIONS--12.51%
850 Aetna Commercial Mortgage Corp................... 12/26/30 6.590 842,297
193 American Southwest Financial Co.................. 03/01/18 9.000 199,193
489 FDIC REMIC Trust Series 1994 Class A............. 09/25/25 7.850 495,460
478 FHLMC Series 1865 Class VA....................... 12/15/10 7.500 480,101
500 FHLMC Series 1497 Class O........................ 10/15/22 7.000 484,060
194 FHLMC Series 1588 Class TB....................... 06/15/23 6.500 183,761
50 FHLMC Series 171 Class G......................... 04/15/04 9.000 50,560
500 FNMA REMIC Trust 1993-241, Class PC***........... 08/25/19 5.180 + 488,947
220 FNMA REMIC Trust 1990-9, Class D................. 08/25/18 8.500 221,902
184 FNMA REMIC Trust 1991-04, Class E................ 09/25/05 8.250 188,134
675 FNMA REMIC Trust 1993-70, Class C................ 03/25/18 6.900 666,556
985 LB Mortgage Trust................................ 03/25/12 8.000 1,005,612
400 Merrill Lynch Trust.............................. 08/01/18 9.450 411,546
1,000 Westam Mortgage Financial Corp................... 12/01/18 9.400 1,036,831
----------
Total Collateralized Mortgage Obligations (cost--$6,774,848)... 6,754,960
----------
ASSET-BACKED SECURITIES--1.15%
600 UCFC Loan Trust (cost--$599,437)................. 11/15/27 8.200 621,375
----------
CORPORATE NOTES--10.71%
500 Citicorp MTN..................................... 02/01/00 8.800 500,000
347 Continental Bank NA.............................. 04/01/01 to 11.250 to 12.500 381,716
07/01/01
535 Countrywide Funding Corp. MTN.................... 09/16/03 7.450 548,353
400 Ford Motor Credit Corp........................... 11/19/99 7.500 411,041
250 Health Care Properties Investments Inc........... 02/15/06 6.500 235,602
200 ITT Corp......................................... 03/01/06 8.750 205,268
625 K Mart Corp. MTN................................. 08/01/97 to 7.240 to 8.700 611,035
07/06/99
325 Kimco Realty Corp................................ 10/01/03 6.500 311,760
305 Lucent Technologies Inc.......................... 07/15/06 7.250 310,850
490 Mellon Bank...................................... 06/01/03 6.750 485,316
245 New Plan Realty Trust Corp....................... 04/06/05 7.750 251,821
1,015 New York State Electric & Gas Corp............... 02/01/20 to 9.875 1,069,140
05/01/20
83 Resolution Trust Corp............................ 02/25/27 6.550 82,648
380 Structured Asset Securities Corp................. 02/25/28 5.751 377,267
----------
Total Corporate Notes (cost--$5,795,110)....................... 5,781,817
----------
</TABLE>
20
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERMEDIATE FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL MATURITY INTEREST
AMOUNT (000) DATES RATES VALUE
- ------------ ------------------ ------------------- ----------
FOREIGN CURRENCY DENOMINATED ISSUES--1.73%
DEM 1,500 Federal Republic of Germany (cost--$1,025,560)... 01/05/06 6.000 % $ 935,139
----------
<CAPTION>
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--5.76%
$3,108 Repurchase Agreement dated 01/31/97 with State
Street Bank & Trust Company, collateralized by
$3,170,432 U.S. Treasury Notes, 11.250% due
02/15/15; proceeds: $3,109,230
(cost--$3,108,000)............................. 02/03/97 4.750 3,108,000
----------
Total Investments (cost--$53,122,706)--98.04%.................. 52,943,086
Other assets in excess of liabilities--1.96%................... 1,058,293
----------
Net Assets--100.00%............................................ $54,001,379
----------
----------
<CAPTION>
</TABLE>
- ---------------
*** Principal Only Security--This security entitles the holder to receive
principal payments from an underlying pool of mortgages. High prepayments
return principal faster than expected and cause the yield to increase. Low
prepayments return principal more slowly than expected and cause the yield
to decrease.
+ Estimated yield to maturity at January 31, 1997
MTN Medium Term Note
See accompanying notes to financial statements
21
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE STRATEGIC FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ ------------------ ------------------ ----------
MORTGAGE-BACKED SECURITIES--54.98%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--6.50%
$1,492 GNMA ARM........................................ 10/20/24 7.000 % $1,529,222
1,937 GNMA ARM........................................ 01/20/26 5.500 1,916,358
396 GNMA ARM........................................ 11/20/23 7.000 405,957
----------
Total Government National Mortgage Association Certificates
(cost--$3,841,581).......................................... 3,851,537
----------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES--1.61%
1,000 FHLMC Gold 30 Year TBA (cost--$950,313)......... TBA 6.500 955,312
----------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES--5.30%
1,457 FHA............................................. 10/01/20 7.430 1,478,177
990 FHA............................................. 12/01/21 7.430 975,239
680 FHA............................................. 08/01/20 7.430 689,951
----------
Total Federal Housing Administration Certificates
(cost--$3,193,423).......................................... 3,143,367
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--19.56%
2,029 FNMA ARM........................................ 12/01/26 4.834 1,891,744
460 FNMA ARM........................................ 03/01/27 6.084 456,450
492 FNMA ARM........................................ 08/01/28 6.084 488,232
47 FNMA ARM........................................ 12/01/17 7.375 49,070
5,000 FNMA TBA........................................ TBA 6.124 4,967,187
1,000 FNMA TBA........................................ TBA 6.500 954,686
3,000 FNMA TBA........................................ TBA 6.000 2,782,500
----------
Total Federal National Mortgage Association Certificates
(cost--$11,663,230)......................................... 11,589,869
----------
COLLATERALIZED MORTGAGE OBLIGATIONS--17.94%
584 Bear Stearns Mortgage Securities Incorporated
ARM........................................... 05/25/23 7.020 585,884
455 California Federal Bank Series 1990 BN1, Class
A-ARM......................................... 08/25/30 6.540 452,675
500 Federal National Mortgage Association REMIC..... 05/25/22 5.000 435,409
368 Federal National Mortgage Association REMIC..... 07/25/22 7.000 342,252
1,000 FHLMC Series 1278 Class K....................... 05/15/22 7.000 930,802
100 FHLMC Series 1366 Class H....................... 08/15/07 6.000 95,093
29 FHLMC Series 1367 Class KA...................... 09/15/22 6.500 26,118
133 FHLMC Series 1502 Class PX-Z.................... 04/15/23 7.000 114,744
686 FHLMC Series 1503 Class PZ...................... 05/15/23 7.000 621,889
407 FHLMC Series 1534 Class Z....................... 06/15/23 5.000 266,425
614 FHLMC Series 1548 Class Z....................... 07/15/23 7.000 521,407
895 FHLMC Series 1562 Class Z....................... 07/15/23 7.000 757,497
136 FHLMC Series 1611 Class I....................... 02/15/23 6.000 128,180
66 FHLMC Series 1614 Class QZ...................... 11/15/23 6.500 54,721
637 FHLMC Series 1628 Class KZ...................... 12/15/23 6.250 520,215
470 FHLMC Series 1628 Class LZ...................... 12/15/23 6.500 383,095
243 FHLMC Series 1694 Class Z....................... 03/15/24 6.500 202,788
246 FHLMC-GNMA Series 15 Class PZ................... 07/25/23 7.000 202,878
246 FHLMC Series 23 Class KZ........................ 11/25/23 6.500 201,594
164 FNMA REMIC Trust 1991 65 Class Z................ 06/25/21 6.500 143,866
75 FNMA REMIC Trust 1992 118 Class K............... 09/25/08 7.500 76,486
160 FNMA REMIC Trust 1992 129 Class L............... 07/25/22 6.000 139,251
81 FNMA REMIC Trust 1992 G36 Class Z............... 07/25/22 7.000 80,440
68 FNMA REMIC Trust 1993 37 Class PXZ.............. 03/25/23 7.000 57,652
106 FNMA REMIC Trust 1993 56 Class PZ............... 05/25/23 7.000 94,382
66 FNMA REMIC Trust 1993 60 Class Z................ 05/25/23 7.000 56,034
109 FNMA REMIC Trust 1993 70 Class Z................ 05/25/23 6.900 89,881
</TABLE>
22
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE STRATEGIC FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ ------------------ ------------------ ----------
COLLATERALIZED MORTGAGE OBLIGATIONS--(CONCLUDED)
$ 315 FNMA REMIC Trust 1993 96 Class PZ............... 06/25/23 7.000 % $ 284,825
279 FNMA REMIC Trust 1993 122 Class L............... 01/25/23 6.500 251,804
76 FNMA REMIC Trust 1993 149 Class L............... 08/25/23 6.000 69,596
120 FNMA REMIC Trust 1993 160 Class ZB.............. 09/25/23 6.500 103,319
115 FNMA REMIC Trust 1993 163 Class ZA.............. 09/25/23 7.000 101,420
81 FNMA REMIC Trust 1993 199 Class Z............... 10/25/23 7.000 67,974
597 FNMA Remic Trust 1993 65 Class ZZ............... 06/25/13 7.000 552,158
122 FNMA REMIC Trust 1993 40 Class Z................ 12/25/23 6.500 97,964
119 FNMA REMIC Trust 1994 23 Class PXZ.............. 08/25/23 6.000 90,979
150 Residential Funding Mortgage Series 1993-S30,
Class A9...................................... 08/25/23 7.500 141,702
1,000 Resolution Trust Corporation Mortgage Series
92-C1 Class B ARM............................. 08/25/23 7.500 1,018,488
310 U.S. Department of Veteran Affairs Vendee
Mortgage Trust Series 1993-3, Class 2ZA....... 06/15/20 6.500 271,414
----------
Total Collateralized Mortgage Obligations
(cost--$10,456,358)......................................... 10,633,301
----------
STRIPPED MORTGAGE-BACKED SECURITIES--4.07%
928 FHLMC Series 1625 Class GA***................... 01/15/08 6.000 (1) 76,775
1,366 FHLMC Series 173-F **........................... 06/15/21 5.979 + 1,237,292
5 FNMA REMIC Trust 1993 134 Class EA***........... 11/25/05 1159.746 (2) 103,483
1,217 FNMA REMIC Trust 1993 201 Class JA***........... 09/25/21 6.500 (3) 191,519
3,227 FNMA REMIC Trust 1993 201 Class JC***........... 05/25/19 6.500 (4) 799,565
----------
Total Stripped Mortgage-Backed Securities
(cost--$2,383,805)............................................ 2,408,634
----------
Total Mortgage-Backed Securities (cost--$32,488,710).......... 32,582,020
----------
CORPORATE BONDS--7.85%
500 AMR Corp........................................ 02/01/01 10.000 554,706
450 Continental Cablevision Inc. ................... 06/01/07 11.000 513,473
200 Gulf States Utilities Co........................ 07/01/98 9.720 206,212
500 Niagara Mohawk Power Co. ....................... 04/01/24 7.875 440,011
1,300 RJR Nabisco Inc. ............................... 12/01/02 8.625 1,335,642
1,000 Time Warner Inc. ............................... 06/15/05 7.750 1,005,300
500 United Air Lines Inc............................ 11/27/12 10.360 595,998
----------
Total Corporate Bonds (cost--$4,633,811)...................... 4,651,342
----------
COMMERCIAL PAPER--34.51%
200 American Telephone & Telegraph Co. ............. 02/10/97 5.390 199,731
2,100 Bellsouth Telecommunications Inc. .............. 02/04/97 5.430 2,099,050
2,500 The Coca Cola Co................................ 03/25/97 5.280 2,480,933
800 Electricite de France........................... 04/28/97 to 5.300 789,403
04/29/97
1,100 KFW International Finance Inc................... 02/14/97 to 5.310 to 5.320 1,096,707
03/26/97
1,500 Kimberly-Clark Corp............................. 02/12/97 5.420 1,497,516
3,900 National Rural Utilities Corp. ................. 03/20/97 to 5.280 to 5.290 3,867,861
04/01/97
800 New Center Asset Trust.......................... 02/12/97 5.410 798,678
2,500 Procter & Gamble Co............................. 04/14/97 5.280 2,472,372
1,000 Queensland Treasury Corp........................ 03/10/97 5.330 994,522
2,300 Shell Oil Co. .................................. 03/26/97 5.280 2,282,121
1,900 Wool International.............................. 04/24/97 5.330 1,876,126
----------
Total Commercial Paper (cost--$20,458,456).................... 20,455,020
----------
LONG-TERM U.S. GOVERNMENT OBLIGATIONS--0.19%
115 U.S. Treasury Bonds (cost--$112,780)............ 08/15/26 6.750 113,778
----------
</TABLE>
23
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE STRATEGIC FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT
(000) VALUE
- ------------ ----------
OPTIONS--0.53%
$2,800 Call-U.S. Treasury Notes, due 11/15/05 Par Value
$2,800,000, price $88.97, expiring 02/19/97
(cost--$219,625).............................. $ 194,348
DEM 2,000 Call-Bundesrepublic (5); 6.875%, due 06/11/03
Par Value DEM 2,000,000, price DEM 98.65,
expiring 03/11/97 (cost--$115,803)............ 120,259
----------
Total Options (cost--$335,428)................................ 314,607
----------
<CAPTION>
MATURITY INTEREST
DATES RATES
------------------ ------------------
<C> <S> <C> <C> <C>
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--17.51%
$1,800 Federal Home Loan Mortgage Discount Notes....... 02/03/97 to 5.370 to 5.410% 1,794,764
02/24/97
265 U.S. Treasury Bills ++.......................... 03/06/97 to 4.900 to 5.020 263,053
05/01/97
8,300 U.S. Treasury Notes............................. 07/31/97 to 5.875 to 6.000 8,318,238
08/31/97
----------
Total Short-Term U.S. Government Obligations
(cost--$10,353,692)........................................... 10,376,055
----------
<CAPTION>
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--2.00%
1,183 Repurchase Agreement dated 01/31/97 with State
Street Bank & Trust Company, collateralized by
$1,209,595 U.S. Treasury Notes, 11.250% due
02/15/15; proceeds: $1,183,468
(cost--$1,183,000)............................ 02/03/97 4.750 1,183,000
----------
Total Investments (cost--$69,565,877)--117.57%................ 69,675,822
Liabilities in excess of other assets--(17.57)%............... (10,410,086)
----------
Net Assets--100.00%........................................... $59,265,736
----------
----------
</TABLE>
- ---------------
** Principal Only Security--This security entitles the holder to receive
principal payments from an underlying pool of mortgages. High
prepayments return principal faster than expected and cause the yield to
increase. Low prepayments return principal more slowly than expected and
cause the yield to decrease.
*** Interest Only--This security entitles the holder to receive interest
payments from an underlying pool of mortgages. The risk associated with
this security is related to the speed of the principal paydowns. High
prepayments would result in a smaller amount of interest being paid and
cause the yield to decrease. Low prepayments would result in a greater
amount of interest being received and cause the yield to increase.
+ Estimated yield to maturity at January 31, 1997.
++ Entire or partial amount pledged as collateral for futures transactions.
ARM Adjustable Rate Mortgage--The interest rate shown is the current rate as
of January 31, 1997.
REMIC Real Estate Mortgage Investment Conduit
TBA To Be Assigned--Securities are purchased on a forward commitment with an
approximate (generally +/- 1.0%) principal amount and no definite maturity
date. The actual principal amount and maturity date will be determined
upon settlement when the specific mortgage pools are assigned.
(1) Annualized yield at date of purchase was 8.33%
(2) Annualized yield at date of purchase was 10.48%
(3) Annualized yield at date of purchase was 8.31%
(4) Annualized yield at date of purchase was 8.13%
(5) Principal amount denoted in indicated currency: DEM--German
Deutschemarks
<TABLE>
<CAPTION>
WRITTEN OPTIONS OPEN
PRINCIPAL
AMOUNT UNDERLYING EXPIRATION EXERCISE
OF OPTIONS CONTRACT DATE PRICE VALUE
----------- --------------- --------- ----------- ---------
Put.............. March
$ 10,000 Eurodollar 1998 $ 93.50 $ 1,271
<S> <C> <C> <C> <C> <C>
---------
---------
<CAPTION>
</TABLE>
FUTURES CONTRACTS
<TABLE>
<CAPTION>
NUMBER OF IN EXPIRATION UNREALIZED
CONTRACTS CONTRACTS TO RECEIVE EXCHANGE FOR DATE DEPRECIATION
- --------------- ------------------------------------------------------------- ------------ ----------- ------------
<C> <S> <C> <C> <C>
153 10 year U.S. Treasury Notes.................................. $16,643,531 March 1997 $(156,969)
15 30 year U.S. Treasury Bonds.................................. $1,671,563 March 1997 (23,437)
------------
$(180,406)
------------
------------
</TABLE>
See accompanying notes to financial statements
24
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE MUNICIPAL FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ --------------- ----------------- ----------
MUNICIPAL BONDS AND NOTES--90.32%
ALABAMA--0.63%
$ 155 Pell City Alabama Industrial Development Board Revenue
Shelby Steel Fabricators (Letter of Credit--South
Trust Bank)*........................................ 09/01/01 7.700 % $ 155,363
----------
ARIZONA--0.30%
65 Pima County Arizona Hospital Revenue St. Joseph
Hospital Project (Escrow to Maturity)............... 01/01/09 7.500 73,503
----------
ARKANSAS--1.60%
100 Arkansas State Development Finance Authority (MBIA
Insured)............................................ 10/01/16 5.100 98,892
25 Pulaski County Arkansas Residental Housing Single
Family (Escrow to Maturity)......................... 06/01/10 7.250 28,013
248 Springdale Arkansas Residential Housing Mortgage
Series A (FNMA Collateralized)...................... 09/01/11 7.650 266,780
----------
393,685
----------
CALIFORNIA--13.39%
205 California Statewide Community Housing Senior Lien
(FHA Insured)....................................... 09/01/00 5.000 207,470
125 Inglewood California Residential Rehabilitation
(Escrow to Maturity)................................ 08/01/10 7.500 141,324
490 Lancaster California Redevelopment Agency Multi Family
High Valley Apartments (FHA Insured)................ 12/01/05 5.250 487,913
700 Los Angeles California Community Redevelopment Agency
Monterey Hills Redevelopment Project B.............. 12/01/22 8.650 783,020
40 Palmdale California Residential Mortgage (Escrow to
Maturity)........................................... 11/01/12 9.250 51,833
275 Sacramento California Utility District Electric
(Escrow to Maturity)................................ 03/01/10 6.750 299,921
230 Sacramento California Utility District Electric White
Rock Project (Escrow to Maturity)................... 05/01/10 6.800 251,484
1,045 Vista California Multi Family Housing Pepperwood
Apartments (Mandatory put 06/01/05 @ par)
(FNMA Collateralized)............................... 06/01/25 5.700 1,075,618
----------
3,298,583
----------
COLORADO--2.99%
125 Colorado Health Facilities Authority Rose Medical
Center (Escrow to Maturity)......................... 09/01/08 7.125 135,794
600 Colorado Housing Finance Authority Single Family
Progam Subordinated*................................ 11/01/04 5.750 601,428
----------
737,222
----------
DELAWARE--0.94%
240 Seaford Delaware Economic Development Seaford
Association Project................................. 01/01/04 6.375 230,753
----------
FLORIDA--3.01%
190 Altamonte Springs Florida Health Facilities Authority
Revenue (Escrow to Maturity)........................ 10/01/09 8.750 231,361
100 Dade County Florida Educational Facilities Authority
Revenue (Letter of Credit-Sun Bank)................. 01/01/02 5.150 101,951
</TABLE>
25
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE MUNICIPAL FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ --------------- ----------------- ----------
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
FLORIDA--(CONCLUDED)
$ 95 Lee County Florida Capital Bonds (Escrow to Maturity)
(MBIA Insured)...................................... 10/01/05 9.500 % $ 114,141
85 Lee County Florida Southwest Florida (Escrow to
Maturity) (MBIA Insured)............................ 10/01/09 8.625 105,295
55 Orange County Florida Health Facilities Authority
Southern Adv Hospital (Escrow to Maturity).......... 10/01/09 8.750 66,745
75 Pasco County Florida MBIA West Pasco Water and Sewer
Unit (Escrow to Maturity) (MBIA Insured)............ 08/01/08 6.375 81,244
35 Plantation Florida Health Facilities (Escrow to
Maturity)........................................... 06/01/09 8.000 40,201
----------
740,938
----------
GEORGIA--2.51%
600 Marietta Georgia Housing Authority Muti Family Housing
Refunding Ridge Part Apartments Project A (Mandatory
put 06/01/05 @ par) (FNMA Collateralized)........... 06/01/25 5.700 619,212
----------
ILLINOIS--6.09%
25 Belleville Illinois St. Clair County (Escrow to
Maturity)........................................... 11/01/09 7.250 27,808
120 Granite City Illinois Hospital Facility Revenue
(Escrow to Maturity)................................ 01/01/08 7.000 131,021
350 Greater Peoria Illinois Airport Authority (AMBAC
Insured)*........................................... 12/01/07 6.700 386,236
325 Illinois Health Facilities Authority Revenue Methodist
Medical Center (Escrow to Maturity)................. 10/01/10 9.000 393,448
505 Illinois Health Facilities Authority Revenue
Ravenswood Hospital (Escrow to Maturity)............ 08/01/06 7.250 562,166
----------
1,500,679
----------
INDIANA--3.78%
430 Fort Wayne Indiana Hospital Authority Revenue Parkview
Memorial Hospital (Escrow to Maturity).............. 01/01/05 6.500 460,749
440 Indianapolis Indiana Economic Development Revenue Knob
In The Woods Project (Mandatory put 12/01/04 @ 100)
(FNMA Collateralized)............................... 12/01/24 6.375 469,674
----------
930,423
----------
KENTUCKY--0.11%
25 Kentucky State Revenue Turnpike Authority Resources
Recovery Road Revenue (Escrow to Maturity).......... 07/01/09 7.200 28,196
----------
LOUISIANA--4.26%
155 East Baton Rouge Louisiana Single Family Authority
Authority Single Family Mortgage Series C........... 04/01/32 7.000 161,036
110 East Baton Rouge Parish Louisiana Womans Hospital
Foundation (Escrow to Maturity)..................... 10/01/08 7.200 122,378
385 Jefferson Parish Louisiana Hospital Service District
No.001 Hospital Revenue (Escrow to Maturity)........ 01/01/09 7.250 437,691
285 Louisiana State Health Education Authority Alton
Ochsner Medical Foundation (Escrow to Maturity)..... 05/01/05 8.750 327,998
----------
1,049,103
----------
</TABLE>
26
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE MUNICIPAL FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ --------------- ----------------- ----------
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
MAINE--0.11%
$ 25 Maine Health & High Educational Facilities Hospital
St. Mary's General Hospital (Pre-Refunded 07/01/99 @
102)................................................ 07/01/09 8.500 % $ 27,263
----------
MICHIGAN--6.07%
655 Detroit Michigan Water Supply Systems Revenue (Escrow
to Maturity)........................................ 01/01/05 8.875 761,392
85 Michigan Municipal Bond Authority Revenue Wayne County
Project (Escrow to Maturity) (MBIA Insured)......... 12/01/02 7.400 93,933
80 Michigan State Hospital Finance Authority Revenue
Harper Grace Hospital (Escrow to Maturity).......... 05/01/09 7.125 91,167
160 Michigan State Hospital Finance Authority Revenue
Mount Carmel Mercy Hospital (Escrow to Maturity).... 08/01/05 7.500 175,509
245 Michigan State Housing Development Authority*......... 12/01/12 7.650 256,240
110 Petoskey Michigan Hospital Finance Authority (Escrow
to Maturity)........................................ 03/01/07 6.700 117,862
----------
1,496,103
----------
MINNESOTA--1.67%
200 Coon Rapids Minnesota Hospital Revenue Health Central
Incorporated (Escrow to Maturity)................... 08/01/08 7.625 223,540
184 Eden Prairie Minnesota Multi Family Housing (GNMA
Collateralized)..................................... 01/20/06 5.500 188,311
----------
411,851
----------
MISSOURI--1.27%
300 St Louis County Missouri Single Family Housing (AMBAC
Insured)............................................ 10/01/16 9.250 312,741
----------
NEBRASKA--4.25%
1,000 Nebraska Higher Education Learning Program*........... 12/01/02 6.700 1,047,930
----------
NEW JERSEY--3.27%
90 New Jersey Health Care Facilities Financing St
Barnabas Medical Center (Escrow to Maturity)........ 07/01/11 7.000 98,606
155 New Jersey State Highway Garden State Parkway (Escrow
to Maturity)........................................ 01/01/11 6.600 167,540
390 New Jersey State Highway Garden State Parkway (Escrow
to Maturity)........................................ 01/01/11 6.500 424,382
30 Secaucus New Jersey Municipal Utilities Authority
Sewer Revenue (Escrow to Maturity).................. 12/01/08 6.875 32,927
75 South Jersey Port Corporation (Escrow to Maturity).... 01/01/11 6.625 82,016
----------
805,471
----------
NEW MEXICO--1.23%
50 Albuquerque New Mexico Residental Mortgage Revenue
(Escrow to Maturity)................................ 03/01/04 7.000 54,165
250 Taos County New Mexico Hospital (Asset Guaranty
Insurance).......................................... 05/15/02 5.000 248,950
----------
303,115
----------
NORTH CAROLINA--0.24%
50 North Carolina Medical Care Facility Stanley County
Hospital (Escrow to Maturity)....................... 10/01/09 7.600 58,265
----------
</TABLE>
27
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE MUNICIPAL FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ --------------- ----------------- ----------
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
OHIO--1.64%
$ 45 Franklin County Ohio Hospital Revenue (Escrow to
Maturity)........................................... 12/01/08 7.400 % $ 50,628
110 Ohio Housing Finance Agency Single Family Mortgage
(GNMA Collateralized)*.............................. 09/01/21 7.850 116,347
190 Ohio State Water Development Authority Revenue (Escrow
to Maturity)........................................ 12/01/10 9.375 237,200
----------
404,175
----------
OKLAHOMA--2.05%
425 McAlester Oklahoma Public Works Authority Revenue (FSA
Insured)............................................ 12/01/04 8.250 506,222
----------
PENNSYLVANIA--8.29%
140 Allegheny County Pennsylvania Industrial Commercial
Development MPB Association......................... 12/01/04 6.750 139,872
25 Bethlehem Center School District Pennsylvania (Escrow
to Maturity)........................................ 11/01/00 6.200 25,487
35 Caln Township Pennsylvania Municipal Sewer Revenue
(Escrow to Maturity)................................ 01/01/09 5.700 35,875
5 Chester County Pennsylvania Hospital Authority Revenue
(Escrow to Maturity)................................ 07/01/09 7.500 5,681
95 Conneaut Pennsylvania School District (Escrow to
Maturity) (AMBAC Insured)........................... 05/01/02 9.250 107,791
905 Delaware County Pennsylvania Industrial Development
Authority Revenue Resources Recovery (Letter of
Credit--Bank of America)............................ 12/01/13 8.100 945,481
550 Horizon Hospital Systems Authority Pennsylvania
Revenue Horizon Hospital Systems Inc................ 05/15/26 6.350 544,016
115 Montgomery County Pennsylvania Higher Education Beaver
College (Escrow to Maturity)........................ 10/01/00 6.750 118,872
110 Unity Township Pennsylvania Municipal Authority GTD
(Escrow to Maturity)................................ 05/01/08 6.600 119,327
----------
2,042,402
----------
SOUTH CAROLINA--0.92%
205 Charleston County South Carolina Hospital Facility
Roper Hospital (Escrow to Maturity)................. 10/01/11 7.000 225,568
----------
TENNESSEE--2.32%
280 Knox County Tennessee Health Educational & Hospital
Facility St. Mary's Medical Center (Escrow to
Maturity)........................................... 08/01/03 7.250 301,571
265 La Follette Tennessee Housing Development Corp. (FHA/
MBIA Insured)....................................... 01/01/05 5.400 269,423
----------
570,994
----------
TEXAS--7.68%
410 Galveston County Texas Housing Finance Corp. Single
Family Mortgage Revenue............................. 04/01/15 9.750 441,787
235 Houston Texas Airport Systems Revenue (Escrow to
Maturity)........................................... 07/01/10 7.600 269,040
1,500 Southeast Texas Housing Finance Corp. ................ 12/01/16 7.625 # 360,165
</TABLE>
28
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE MUNICIPAL FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ --------------- ----------------- ----------
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
TEXAS--(CONCLUDED)
$ 800 Texas State Department Housing and Community Housing
Senior Dallas/Fort Worth Series A................... 07/01/06 6.000 % $ 821,952
----------
1,892,944
----------
UTAH--7.93%
205 Salt Lake City Utah Hospital Revenue (Escrow to
Maturity)........................................... 06/01/09 7.350 231,824
645 Salt Lake County Utah Multi Family Housing James
Pointe Apartment (Mandatory put 10/01/05 @ par)
(Asset Guaranty Insurance).......................... 10/01/25 5.500 655,165
190 Salt Lake County Utah Water Conservation (Escrow to
Maturity) (MBIA Insured)............................ 10/01/02 10.875 224,922
145 Utah State Housing Finance Agency (AMBAC Insured)..... 07/01/07 5.650 147,506
125 Utah State Housing Finance Agency (AMBAC Insured)..... 07/01/07 5.650 126,712
560 Utah State Housing Finance Agency (AMBAC Insured)..... 07/01/08 5.900 566,300
----------
1,952,429
----------
VIRGINIA--1.02%
250 King George County Virginia Industrial Development
Elementary School Project........................... 08/01/98 4.875 250,120
----------
WEST VIRGINIA--0.75%
165 Kanawha County West Virginia Building Commission
Revenue St. Francis Hospital (Escrow to Maturity)... 12/01/07 7.500 184,698
----------
Total Municipal Bonds and Notes (cost--$21,914,972)................. 22,249,951
----------
<CAPTION>
<C> <S> <C> <C> <C>
TAX EXEMPT COLLATERALIZED MORTGAGE OBLIGATIONS--1.74%
430 FHA Insured Trust 1996-01, Class A1 (FHA Insured)
(cost--$429,509).................................... 11/01/06 6.100 429,509
----------
<CAPTION>
NUMBER OF
SHARES
- ------------
<C> <S> <C> <C> <C>
MONEY MARKET FUNDS--4.99%
1,230,000 Seven Seas Money Market Fund* (cost--$1,230,000)...... 1,230,000
----------
Total Investments (cost--$23,574,481)--97.05%....................... 23,909,460
Other assets in excess of liabilities--2.95%........................ 726,782
----------
Net Assets--100.00%................................................. $24,636,242
----------
----------
</TABLE>
- ---------------
# Annualized yield at date of purchase
* Security subject to Alternative Minimum Tax
AMBAC American Municipal Bond Assurance Corporation
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
MBIA Municipal Bond Investors Assurance
See accompanying notes to financial statements
29
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE GLOBAL FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- ------------ ------------------ ----------------- ----------
LONG-TERM DEBT SECURITIES--71.42%
AUSTRIA--3.71%
JPY 198,000 Oest Kontrollbank.................................. 09/19/98 6.500 % $1,800,445
----------
BRAZIL--0.88%
USD 551 Federal Republic of Brazil......................... 04/15/14 5.000 428,330
----------
CANADA--5.63%
3,474 Government of Canada............................... 06/01/07 to 4.250 to 7.250 2,733,509
12/01/21
----------
DENMARK--2.59%
8,273 Kingdom of Denmark................................. 11/10/24 7.000 1,258,203
----------
GERMANY--15.09%
11,007 Federal Republic of Germany........................ 05/15/00 to 5.875 to 6.500 6,988,311
01/04/24
495 Treuhandanstalt.................................... 10/01/02 7.750 343,486
----------
7,331,797
----------
ITALY--8.01%
5,625,000 Republic of Italy.................................. 02/01/99 to 7.750 to 10.500 3,892,243
11/01/06
----------
JAPAN--7.17%
206,000 Euro Investor Bank (1)............................. 07/16/98 4.250 1,796,734
185,000 Japan Development Bank............................. 10/01/99 5.000 1,689,329
----------
3,486,063
----------
MEXICO--2.12%
USD 250 Banco Nacional De Obras............................ 11/15/03 9.625 258,282
USD 750 United Mexican States.............................. 01/15/07 9.875 772,735
----------
1,031,017
----------
POLAND--1.00%
875 Government of Poland............................... 10/27/24 3.000 487,813
----------
SWEDEN--1.60%
5,200 Kingdom of Sweden.................................. 08/15/07 8.000 777,328
----------
UNITED KINGDOM--12.38%
3,665 United Kingdom Gilt................................ 12/07/05 to 7.500 to 8.500 6,014,770
12/07/06
----------
UNITED STATES--10.45%
385 American Express................................... 12/15/03 6.800 390,775
1,203 U.S. Treasury Bonds................................ 08/15/02 to 6.500 to 7.500 1,173,530
11/15/26
3,451 U.S. Treasury Notes................................ 08/15/02 to 6.375 to 7.000 3,516,059
10/15/06
----------
5,080,364
----------
VENEZUELA--0.79%
500 Republic of Venezuela.............................. 03/31/20 6.750 385,625
----------
Total Long-Term Debt Securities (cost--$35,708,409).............. 34,707,507
----------
</TABLE>
30
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE GLOBAL FIXED INCOME INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- ------------ ------------------ ----------------- ----------
TIME DEPOSITS--10.05%
6,039 Canadian Time Deposit.............................. 02/03/97 2.875 % $4,483,632
2,988 Sweden Time Deposit................................ 02/06/97 4.000 402,191
----------
Total Time Deposits (cost--$4,885,823)........................... 4,885,823
----------
REPURCHASE AGREEMENT--16.48%
8,009 Repurchase Agreement dated 01/31/97 with State
Street Bank & Trust Company, collateralized by
$8,169,880 U.S. Treasury Bonds, 11.250% due
02/15/15; proceeds: $8,012,170
(cost--$8,009,000)............................... 02/03/97 4.750 8,009,000
----------
Total Investments (cost--$48,603,232)--97.95%.................... 47,602,330
Other assets in excess of liabilities--2.05%..................... 992,056
----------
Net Assets--100.00%.............................................. $48,594,386
----------
----------
</TABLE>
- ---------------
* In local currency unless otherwise indicated
(1) "Supranational" security denominated in Japanese yen.
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT TO IN EXCHANGE MATURITY APPRECIATION
DELIVER FOR DATES (DEPRECIATION)
------------ ---------------- ----------- -------------
<S> <C> <C> <C> <C>
Australian Dollars..................................... 1,715,487 U.S.$ 1,308,105 02/28/97 $ 41,983
Canadian Dollars....................................... 154,448 U.S.$ 114,844 02/28/97 (2,025)
German Deutschemarks................................... 2,250,000 U.S.$ 1,377,879 02/28/97 41,454
German Deutschemarks................................... 1,510,000 U.S.$ 924,710 02/28/97 32,913
German Deutschemarks................................... 3,760,582 U.S.$ 2,302,945 02/28/97 58,760
German Deutschemarks................................... 711,207 U.S.$ 435,536 02/28/97 2,453
German Deutschemarks................................... 4,633,502 U.S.$ 2,837,512 02/28/97 12,488
German Deutschemarks................................... 1,558,274 U.S.$ 954,689 02/28/97 (3,583)
German Deutschemarks................................... 4,003,978 U.S.$ 2,451,998 02/28/97 95,784
Danish Kronas.......................................... 3,173,771 U.S.$ 509,070 02/28/97 23,979
Pound Sterling......................................... 1,517,947 U.S.$ 2,430,870 02/28/97 104,368
Italian Lira........................................... 3,155,843,025 U.S.$ 1,957,755 02/28/97 88,703
Italian Lira........................................... 4,069,719,051 U.S.$ 2,524,687 02/28/97 (13,010)
Japanese Yen........................................... 6,102,113 U.S.$ 50,524 02/28/97 2,650
Netherland Guilders.................................... 4,392,922 U.S.$ 2,395,327 02/28/97 116,349
Netherland Guilders.................................... 2,842,488 U.S.$ 1,532,982 02/04/97 6,076
U.S. Dollars........................................... 1,308,105 AUD 1,715,487 02/28/97 (9,389)
U.S. Dollars........................................... 930,143 AUD 1,219,417 02/04/97 10,540
U.S. Dollars........................................... 4,718,890 DEM 7,705,687 02/28/97 (223,822)
U.S. Dollars........................................... 2,839,764 DEM 4,637,178 02/28/97 (10,236)
U.S. Dollars........................................... 2,433,631 DEM 3,973,985 02/28/97 (101,607)
U.S. Dollars........................................... 914,276 ESP 126,693,530 02/28/97 (43,347)
U.S. Dollars........................................... 12,359 GBP 7,718 02/28/97 (606)
U.S. Dollars........................................... 2,407,648 GBP 1,503,446 02/28/97 (140,134)
U.S. Dollars........................................... 2,269,458 JPY 274,099,416 02/28/97 (92,247)
U.S. Dollars........................................... 2,534,061 NLG 4,647,354 02/28/97 22,385
U.S. Dollars........................................... 1,532,982 NLG 2,842,488 02/04/97 (13,950)
U.S. Dollars........................................... 1,404,920 NOK 9,089,550 02/28/97 (14,414)
-------------
$ (7,485)
-------------
-------------
</TABLE>
CURRENCY TYPE ABBREVIATIONS:
AUD - Australian Dollars
DEM - German Deutschemarks
ESP - Spanish Pesetas
GBP - British Pounds
JPY - Japanese Yen
NLG - Netherlands Guilders
NOK - Danish Kronas
See accompanying notes to financial statements
31
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
COMMON STOCKS--96.55%
AGRICULTURE, FOOD & BEVERAGE--7.73%
13,600 CPC International, Inc....................... $ 1,045,500
24,600 Coca-Cola Enterprises Inc.................... 1,399,125
33,400 Nabisco Holdings Corp........................ 1,277,550
36,400 Phillip Morris Companies Inc................. 4,327,050
55,200 Tyson Foods Inc.............................. 1,869,900
-------------
9,919,125
-------------
BANKS--10.58%
66,600 Chase Manhattan Corp......................... 6,160,500
40,300 Citicorp..................................... 4,689,912
12,700 Comerica Inc................................. 725,488
6,000 First American Corp Tennessee................ 367,500
5,900 First of America Bank Corp................... 351,050
28,100 U.S. Bancorp................................. 1,280,306
-------------
13,574,756
-------------
CHEMICALS--1.34%
7,400 Eastman Chemical Co.......................... 404,225
6,800 Geon Co...................................... 127,500
50,400 Lyondell Petrochemical Co.................... 1,184,400
-------------
1,716,125
-------------
COMPUTER HARDWARE--6.37%
63,000 EMC Corp.*................................... 2,386,125
12,300 Seagate Technology Inc.*..................... 633,450
87,900 Xerox Corp................................... 5,153,137
-------------
8,172,712
-------------
COMPUTER SOFTWARE--0.16%
11,000 Filenet Corp.*............................... 210,375
-------------
CONSUMER DURABLES--1.30%
48,200 Masco Corp................................... 1,662,900
-------------
DEFENSE/AEROSPACE--3.60%
50,266 Lockheed Martin Corp......................... 4,624,472
-------------
DIVERSIFIED RETAIL--0.69%
26,900 Federated Department Stores Inc.*............ 884,338
-------------
DRUGS & MEDICINE--9.10%
47,300 Allergan Inc................................. 1,673,237
46,100 Alza Corp.*.................................. 1,331,138
23,175 Covance Inc.*................................ 437,428
31,300 Forest Labs Inc.*............................ 1,181,575
18,600 Genzyme Corp.*............................... 520,800
58,700 Pharmacia & Upjohn Inc....................... 2,186,575
17,200 Rhone-Poulenc Rorer Inc...................... 1,294,300
40,400 Schering Plough Corp......................... 3,055,250
-------------
11,680,303
-------------
ELECTRIC UTILITIES--2.77%
50,400 CMS Energy Corp.............................. 1,688,400
38,900 Centerior Energy Corp........................ 418,175
63,000 PECO Energy Co............................... 1,449,000
-------------
3,555,575
-------------
ENVIRONMENTAL SERVICES--2.91%
30,200 Browning Ferris Industries, Inc.............. 981,500
75,200 WMX Technologies Inc......................... 2,754,200
-------------
3,735,700
-------------
FINANCIAL SERVICES--3.11%
61,800 Aon Corp..................................... 3,993,825
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
FOREST PRODUCTS, PAPER--2.37%
26,500 James River Corp............................. $ 851,312
19,200 Kimberly Clark Corp.......................... 1,872,000
11,050 Westvaco Corp................................ 323,213
-------------
3,046,525
-------------
FOOD RETAIL--0.72%
19,400 Kroger Co.*.................................. 926,350
-------------
FREIGHT - AIR, SEA & LAND--2.74%
68,600 Federal Express Corp.*....................... 3,515,750
-------------
HEAVY MACHINERY--0.70%
20,300 Harnischfeger Industries Inc................. 900,813
-------------
HOTELS--0.33%
26,400 Choice Hotels Holdings Inc.*................. 422,400
-------------
HOUSEHOLD PRODUCTS--1.97%
30,400 Avon Products Inc............................ 1,907,600
45,200 Dial Corp.................................... 621,500
-------------
2,529,100
-------------
INFORMATION & COMPUTER SERVICES--3.78%
45,000 Automatic Data Processing Inc................ 1,861,875
51,720 First Data Corp.............................. 1,861,920
22,900 Interpublic Group Companies Inc.............. 1,130,687
-------------
4,854,482
-------------
LEISURE--2.42%
110,225 Mattel Inc................................... 3,100,078
-------------
LIFE INSURANCE--2.71%
22,900 CIGNA Corp................................... 3,472,212
-------------
LONG DISTANCE PHONE COMPANIES--0.25%
16,000 360 Communications Co*....................... 316,000
-------------
MANUFACTURING-GENERAL--2.20%
24,400 Pentair Inc.................................. 771,650
19,400 Timken Co.................................... 999,100
20,300 York International Corp...................... 1,050,525
-------------
2,821,275
-------------
MANUFACTURING-HIGH TECHNOLOGY--0.74%
18,400 Boston Technology Inc.*...................... 570,400
8,500 Comverse Technology Inc.*.................... 382,500
-------------
952,900
-------------
MEDIA--1.77%
91,500 General Instrument Corp.*.................... 2,276,062
-------------
MEDICAL PRODUCTS--1.20%
28,600 Bard CR Inc.................................. 807,950
18,500 Beckman Instruments Inc. New................. 730,750
-------------
1,538,700
-------------
MEDICAL PROVIDERS--4.61%
92,900 Corning Inc.................................. 3,309,562
34,100 Health Care & Retirement Corp.*.............. 882,337
31,200 Manor Care Inc............................... 795,600
11,638 Quest Diagnostics Inc*....................... 183,299
24,100 Vencor Inc.*................................. 738,063
-------------
5,908,861
-------------
</TABLE>
32
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
MINING & METALS--0.57%
18,500 Birmingham Steel Corp........................ $ 367,688
13,560 Martin Marietta Inc.......................... 361,035
-------------
728,723
-------------
MOTOR VEHICLES--2.89%
68,100 Goodyear Tire & Rubber Co. .................. 3,711,450
-------------
OIL REFINING--3.57%
73,700 Enron Corp................................... 3,040,125
52,516 Ultramar Diamond Shamrock.................... 1,542,657
-------------
4,582,782
-------------
OTHER INSURANCE--2.74%
28,300 Aetna Inc.................................... 2,235,700
6,700 Allstate Corp................................ 440,525
14,400 Old Republic International Corp.............. 387,000
21,400 USF&G Corp................................... 452,075
-------------
3,515,300
-------------
PUBLISHING--1.84%
30,800 Gannett Inc. ................................ 2,360,050
-------------
RAILROADS--3.59%
52,700 Burlington Northern Santa Fe Inc. ........... 4,611,250
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -------------
<C> <S> <C>
RESTAURANTS--0.16%
18,700 Brinker International Inc.*.................. $ 203,363
-------------
SERVICES--0.56%
45,300 Viad Corp. .................................. 713,475
-------------
SPECIALTY RETAIL--1.90%
21,100 Circuit City Stores, Inc. ................... 741,138
36,500 CVS Corp. ................................... 1,578,625
5,205 Footstar Inc.*............................... 117,763
-------------
2,437,526
-------------
WIRELESS TELECOMMUNICATIONS--0.56%
46,500 Nextel Communications Inc.*.................. 714,938
-------------
Total Common Stocks (cost--$106,874,065) 123,890,571
-------------
PREFERRED STOCKS--0.77%
TOBACCO--0.77%
150,100 RJR Nabisco Holdings Corp.
(cost--$944,653)........................... 994,412
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
- ----------- --------------- ---------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--0.14%
$ 180 U.S. Treasury Bills + (cost--$177,759)................. 05/01/97 4.970 to 5.063% 177,759
-----------
REPURCHASE AGREEMENT--2.14%
2,742 Repurchase Agreement dated 01/31/97 with State Street
Bank & Trust Company, collateralized by $2,797,080 U.S.
Treasury Bonds, 11.250% due 02/15/15; proceeds:
$2,743,085 (cost--$2,742,000).......................... 02/03/97 4.750 2,742,000
-----------
Total Investments (cost--$110,738,477)--99.60%..................... 127,804,742
Other assets in excess of liabilities--0.40%........................ 512,289
-----------
Net Assets--100.00%................................................. $128,317,031
-----------
-----------
</TABLE>
- ---------------
* Non-income producing security
+ Entire or partial amount pledged as collateral for futures transactions.
FUTURES CONTRACTS
<TABLE>
<CAPTION>
NUMBER OF IN EXPIRATION UNREALIZED
CONTRACTS CONTRACTS TO RECEIVE EXCHANGE FOR DATE APPRECIATION
- ---------- ---------------------------------------------------------- ------------ -------------- -------------
<S> <C> <C> <C> <C>
6 March 1997 S&P 500 Futures Contracts...................... $2,362,500 March 1997 $33,200
-------------
-------------
</TABLE>
See accompanying notes to financial statements
33
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--94.80%
AGRICULTURE, FOOD & BEVERAGE--3.08%
29,300 Phillip Morris Companies Inc................. $ 3,483,037
------------
APPAREL, RETAIL--0.85%
24,300 TJX Companies Inc. .......................... 965,925
------------
APPAREL, TEXTILES--0.94%
25,300 Liz Claiborne, Inc. ......................... 1,065,763
------------
BANKS--7.02%
25,300 BankAmerica Corp............................. 2,824,112
11,900 Chase Manhattan Corp......................... 1,100,750
14,500 Citicorp..................................... 1,687,438
21,600 NationsBank Corp............................. 2,332,800
------------
7,945,100
------------
CHEMICALS--7.43%
24,700 Allied-Signal Inc. .......................... 1,735,175
25,400 Grace W R & Co. ............................. 1,263,650
31,700 Hercules, Inc................................ 1,398,762
71,200 Monsanto Co. ................................ 2,696,700
28,400 Praxair Inc.................................. 1,317,050
------------
8,411,337
------------
COMPUTER HARDWARE--11.12%
58,500 3Com Corp.*.................................. 3,926,812
37,400 Adaptec Inc.*................................ 1,636,250
44,700 Ascend Communications Inc.*.................. 3,112,238
3,600 Cascade Communications Corp.*................ 143,100
21,100 Cisco Systems Inc.*.......................... 1,471,725
26,400 Compaq Computer Corp.*....................... 2,293,500
------------
12,583,625
------------
COMPUTER SOFTWARE--5.94%
37,800 Fore Systems*................................ 1,100,925
23,400 Microsoft Corp.*............................. 2,386,800
41,500 Peoplesoft Inc.*............................. 2,261,750
38,200 Rational Software Corp.*..................... 969,325
------------
6,718,800
------------
DEFENSE/AEROSPACE--1.81%
29,300 United Technologies Corp. ................... 2,043,675
------------
DIVERSIFIED RETAIL--2.52%
47,200 Dayton Hudson Corp. ......................... 1,775,900
27,700 Kohls Corp.*................................. 1,076,838
------------
2,852,738
------------
DRUGS & MEDICINE--11.64%
23,200 American Home Products Corp.................. 1,470,300
15,000 Bristol-Myers Squibb Co. .................... 1,905,000
31,300 Lilly, Eli & Co. ............................ 2,727,012
41,700 Merck & Company, Inc......................... 3,784,275
16,600 Pfizer Inc................................... 1,541,725
23,100 Schering Plough Corp......................... 1,746,938
------------
13,175,250
------------
ENVIRONMENTAL SERVICES--1.02%
31,600 WMX Technologies Inc......................... 1,157,350
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
FINANCIAL SERVICES--4.56%
32,200 Student Loan Marketing Assoc................. $ 3,505,775
17,000 Textron Inc.................................. 1,655,375
------------
5,161,150
------------
HOTELS--3.82%
57,500 Hilton Hotels Corp........................... 1,638,750
38,400 Hospitality Franchise Systems, Inc.*......... 2,688,000
------------
4,326,750
------------
HOUSEHOLD PRODUCTS--4.70%
30,700 Avon Products Inc............................ 1,926,425
41,600 Gillette Co.................................. 3,390,400
------------
5,316,825
------------
INDUSTRIAL SERVICES/SUPPLIES--1.63%
74,350 CUC International Inc.*...................... 1,840,163
------------
INFORMATION & COMPUTER SERVICES--2.74%
27,980 First Data Corp.............................. 1,007,280
33,500 HBO & Co..................................... 2,097,937
------------
3,105,217
------------
LIFE INSURANCE--2.69%
58,166 The Travelers Group, Inc..................... 3,046,444
------------
MANUFACTURING-GENERAL--1.06%
28,100 Sundstrand Corp.............................. 1,204,788
------------
MANUFACTURING-HIGH TECHNOLOGY--3.57%
22,000 Honeywell, Inc............................... 1,586,750
18,900 Motorola Inc................................. 1,289,925
33,950 Thermo Electron Corp.*....................... 1,158,544
------------
4,035,219
------------
MEDICAL PRODUCTS--4.98%
25,400 Boston Scientific Corp.*..................... 1,733,550
37,600 Guidant Corp................................. 2,096,200
26,300 Medtronic, Inc............................... 1,801,550
------------
5,631,300
------------
MEDICAL PROVIDERS--1.40%
54,500 Service Corporation International............ 1,580,500
------------
RAILROADS--0.93%
12,000 Burlington Northern Santa Fe Inc. ........... 1,050,000
------------
RESTAURANTS--1.34%
43,800 Boston Chicken Inc.*......................... 1,516,575
------------
SEMICONDUCTOR--4.89%
26,300 Intel Corp. ................................. 4,267,175
16,100 Texas Instruments, Inc....................... 1,261,837
------------
5,529,012
------------
SPECIALTY RETAIL--3.12%
37,000 Corporate Express*........................... 1,248,750
25,600 Home Depot, Inc.............................. 1,267,200
21,100 Sears Roebuck & Co. ......................... 1,012,800
------------
3,528,750
------------
Total Common Stocks (cost--$88,339,821)................. 107,275,293
------------
</TABLE>
34
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- --------------------------------------------------------------------------------
PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- ---------- --------------- --------------- -----------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--5.16%
$5,835 Repurchase Agreement dated 01/31/97 with State Street
Bank & Trust Company, collateralized by $5,952,210
U.S. Treasury Bonds, 11.250% due 02/15/15; proceeds:
$5,837,310 (cost--$5,835,000)......................... 02/03/97 4.750% $ 5,835,000
-----------
Total Investments (cost--$94,174,821)--99.96%....................... 113,110,293
Other assets in excess of liabilities--0.04%........................ 46,140
-----------
Net Assets--100.00%................................................. $113,156,433
-----------
-----------
</TABLE>
- ---------------
* Non-income producing security
See accompanying notes to financial statements
35
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
COMMON STOCKS--94.39%
AGRICULTURE, FOOD & BEVERAGE--0.69%
2,100 Alpine Lace Brands Inc.*................ $ 13,125
3,500 Cagle's Inc............................. 51,625
2,157 ERLY Industries Inc.*................... 17,256
1,700 Hain Food Group Inc.*................... 8,394
12,900 International Multifoods Inc............ 232,200
9,500 Nash Finch Co........................... 199,500
8,400 Orange Company, Inc. New................ 67,200
3,500 Suprema Specialties Inc.*............... 17,500
5,300 Sylvan, Inc.*........................... 66,912
-----------
673,712
-----------
AIRLINES--1.18%
14,900 ASA Holdings Inc........................ 335,250
12,200 Alaska Air Group Inc.*.................. 263,825
20,600 America West Holding Corp.*............. 306,425
3,400 MTL Inc.*............................... 75,225
23,800 Mesa Air Group Inc.*.................... 157,675
5,400 Sunrise Leasing Corp.................... 21,600
-----------
1,160,000
-----------
ALCOHOL--0.03%
3,000 Todhunter International Inc.*........... 25,500
-----------
APPAREL, RETAIL--0.29%
4,100 American Eagle Outfitters*.............. 37,925
1,500 Catherines Stores Corp.*................ 8,250
22,300 Cato Corp. New*......................... 89,200
4,400 Designs, Inc.*.......................... 26,400
14,400 Syms Corp.*............................. 127,800
-----------
289,575
-----------
APPAREL, TEXTILES--1.57%
1,125 Conso Products Co.*..................... 14,203
7,600 Culp, Inc............................... 122,550
1,333 Decorator Industies, Inc................ 14,496
10,500 Dyersburg Corp.......................... 72,188
6,400 Finlay Enterprises Inc.................. 94,400
5,100 Galey & Lord Inc.*...................... 93,075
11,000 Guilford Mills, Inc..................... 317,625
3,200 Hampshire Group, Ltd.*.................. 43,200
28,000 Hartmarx Corp.*......................... 164,500
22,000 Justin Industries Inc................... 239,250
4,300 Maxwell Shoe Inc.*...................... 31,713
7,300 Pillowtex Corp.......................... 131,400
4,700 Quiksilver Inc.*........................ 110,450
9,300 Worldtex, Inc.*......................... 91,837
-----------
1,540,887
-----------
BANKS--8.68%
1,900 Amcore Financial Inc.................... 45,363
1,500 American Bank Inc....................... 41,625
10,300 Bancorpsouth Inc........................ 280,675
4,600 Banknorth Group Inc..................... 187,450
5,250 CFX Corp.*.............................. 93,187
3,806 CVB Financial Corp...................... 70,887
5,700 Capital Bancorp Florida................. 188,100
10,100 Citizens Banking Corp................... 303,000
11,200 Colonial Bancgroup Inc.................. 466,200
7,665 Commerce Bancorp, Inc................... 228,992
5,100 Community First Bankshares Inc.......... 142,162
9,300 Corus Bank Shares Inc................... 304,575
12,000 Cullen Frost Bankers Inc................ 419,250
2,200 Evergreen Bancorp Inc................... 34,650
8,600 F & M National Corp..................... 170,925
4,100 First Citizens Bancshares, Inc.......... 303,400
5,000 First Western Bancorp Inc............... 136,250
4,700 Firstbank Illinois Co................... 165,675
7,015 Hancock Holding Co...................... 275,339
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
BANKS--(CONCLUDED)
8,858 HUBCO Inc............................... $ 220,343
1,725 Interchange Financial Services Inc...... 48,300
4,800 Irwin Financial Corp.................... 136,800
18,300 Magna Group Inc......................... 542,137
3,500 Mark Twain Banc Shares Inc.............. 176,312
6,889 Mid America Bancorp..................... 130,891
3,700 National Bancorp Alaska Inc............. 257,150
1,365 National Penn Banc Shares Inc........... 37,538
600 Newmill Bancorp Inc..................... 5,400
15,400 North Fork Bank Corporation Inc......... 552,475
9,900 Onbancorp Inc........................... 368,775
13,500 One Valley Bancorp West Virginia Inc.... 502,875
2,602 Peoples Heritage Financial Group........ 75,458
2,200 Redwood Empire Bancorp*................. 25,300
19,400 Riggs National Corp..................... 358,900
4,700 Sterling Bancorp........................ 72,850
6,900 Susquehanna Bank Shares Inc............. 243,225
700 Trans Financial Bancorp, Inc............ 16,275
19,000 Trustmark Corp.......................... 479,750
6,400 United Bank Shares Inc.................. 212,800
5,000 United Carolina Bank Shares............. 212,500
-----------
8,533,759
-----------
CHEMICALS--3.30%
3,510 Aceto Corp.............................. 46,069
1,900 American Vanguard Corp.................. 13,300
6,800 Bairnco Corp............................ 50,150
13,500 Chemfirst Inc........................... 310,500
1,200 Engineered Support Systems Inc.......... 17,400
6,000 Furon Co................................ 143,250
24,400 Gencorp Inc............................. 475,800
1,400 General Magnaplate Corp................. 9,625
19,900 Griffon Corp.*.......................... 276,112
7,800 Gundle/SLT Environmental Inc............ 70,200
4,100 Hawkins Chemical Inc.................... 28,700
21,309 Mississippi Chemical Corp............... 535,389
10,200 NL Industries Inc.*..................... 122,400
7,200 Park Ohio Industries Inc.*.............. 111,150
15,400 Rexene Corp............................. 215,600
11,800 Spartech Corp........................... 128,325
7,400 Stepan Chemical Co...................... 139,675
4,700 Sybron Chemicals Inc.*.................. 85,775
5,100 Synalloy Corp........................... 85,425
16,700 Wellman Inc............................. 294,337
4,050 Wynn's International Inc................ 82,013
-----------
3,241,195
-----------
COMPUTER HARDWARE--1.10%
3,300 Advanced Logic Research Inc.*........... 36,713
3,200 Amplicon Inc............................ 72,650
16,600 Banctec, Inc.*.......................... 321,625
3,300 DH Technology Inc....................... 56,719
11,100 Digital International Inc.*............. 92,962
2,600 Equinox Systems Inc.*................... 24,375
6,100 Genicom Corp.*.......................... 27,450
6,200 Gradco Systems Inc.*.................... 23,250
1,200 International Lottery Inc............... 8,400
1,500 McRae Industries Inc.................... 13,875
500 Meridian Data Inc....................... 3,375
17,200 Network Equipment Technologies, Inc.*... 356,900
4,800 Southern Electronics Corp.*............. 44,400
-----------
1,082,694
-----------
</TABLE>
36
<PAGE>
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
COMPUTER SOFTWARE--0.12%
11,000 MacNeal Schwendler Corp................. $ 100,375
4,900 Truevision Inc.......................... 16,538
-----------
116,913
-----------
CONSTRUCTION, REAL PROPERTY--0.27%
3,600 American Buildings Co. New*............. 101,700
8,300 Giant Cement Holding, Inc.*............. 131,762
2,333 MYR Group, Inc.......................... 29,163
-----------
262,625
-----------
CONSUMER DURABLES--1.33%
4,300 Chromcraft Revington Inc.*.............. 119,862
57,100 Collins & Aikman Corp.*................. 442,525
2,400 Craftmade International Inc............. 20,700
18,200 Mikasa Inc.*............................ 186,550
3,100 Movado Group Inc........................ 69,363
2,600 Stanley Furniture Company, Inc.*........ 65,000
10,000 Toro Co................................. 351,250
3,740 Virco Manufacturing Corp................ 55,165
-----------
1,310,415
-----------
DEFENSE/AEROSPACE--0.33%
5,900 Alliant Techsystems Inc.*............... 285,412
1,800 Allied Research Corp.*.................. 15,188
2,100 Herley Industries Inc.*................. 24,413
-----------
325,013
-----------
DIVERSIFIED RETAIL--0.80%
16,900 Ames Department Stores Inc.*............ 106,681
10,300 Carson Pirie Scott & Co.*............... 275,525
1,900 Duckwall Alto Stores Inc. New........... 24,938
8,500 Hills Store Co.*........................ 23,375
18,200 Shopko Stores Inc....................... 288,925
6,300 Winsloew Furniture Inc.................. 70,087
-----------
789,531
-----------
DRUGS & MEDICINE--0.82%
9,500 Bindley Western Industries, Inc......... 168,625
26,600 ICN Pharmaceuticals Inc................. 611,800
1,300 Moore Medical Corp...................... 13,162
2,600 Polymedica Industries Inc............... 14,950
-----------
808,537
-----------
ELECTRIC UTILITIES--4.94%
6,100 Bangor Hydro Electric Co................ 56,425
14,600 Central Hudson Gas & Electric Corp...... 458,075
27,400 Central Maine Power Co.................. 304,825
9,600 Central Vermont Public Service Corp..... 117,600
17,900 Commonwealth Energy Systems*............ 436,312
17,000 Eastern Utilities Associates............ 320,875
3,600 Green Mountain Power Corp............... 87,750
5,800 Northwestern Public Service Co.......... 219,675
6,500 Orange & Rockland Utilities Inc......... 237,250
12,500 Public Service Co. of New Mexico........ 250,000
31,800 Rochester Gas & Electric Corp........... 616,125
5,600 Saint Joseph Light & Power Co........... 84,700
9,200 TNP Enterprises Inc..................... 253,000
26,100 Tucson Electric Power Co.*.............. 424,125
11,500 United Illuminating Co.................. 339,250
3,600 Unitil Corp............................. 72,000
1,900 Upper Peninsula Energy Corp............. 34,200
19,800 WPS Resources Corp...................... 549,450
-----------
4,861,637
-----------
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
ELECTRICAL POWER--0.26%
6,500 Alpine Group Inc.*...................... $ 52,812
900 Aztec Manufacturing Co.................. 9,225
4,500 Charter Power Systems Inc............... 155,250
3,300 ILC Technology Inc...................... 40,013
-----------
257,300
-----------
ELECTRONIC COMPONENTS--0.62%
1,300 CEM Corp................................ 10,725
6,900 CP Clare Corp........................... 62,963
6,500 Fusion Systems Corp..................... 186,875
4,500 Merix Corp. 84,937
17,500 Oak Technology.......................... 236,250
1,600 Optek Technology Inc.................... 22,000
2,500 Taitron Components Inc.................. 7,500
-----------
611,250
-----------
ENERGY RESERVES & PRODUCTION--0.16%
1,000 Enex Resources Corp..................... 10,750
3,000 McFarland Energy Inc.*.................. 37,125
1,800 Prima Energy Corp.*..................... 42,300
2,600 Unit Industries Inc..................... 24,375
7,400 Wilshire Oil Co......................... 44,400
-----------
158,950
-----------
ENTERTAINMENT--0.11%
7,400 All American Communications Inc.*....... 105,450
-----------
ENVIRONMENTAL SERVICES--0.25%
8,500 Schnitzer Steel Industries Inc.......... 248,625
-----------
FINANCIAL SERVICES--2.68%
5,000 BHC Financial Inc....................... 90,938
20,500 Commerce Group Inc...................... 497,125
7,200 Craig Jenny Inc......................... 73,800
5,900 First American Financial Corp.*......... 246,325
12,900 Gallagher Arthur J & Co................. 388,613
139 Investors Financial Services Corp.*..... 3,892
11,800 North American Mortgage Co.............. 231,575
5,000 Olympic Financial Ltd................... 70,000
1,200 Pacific Crest Capital Inc............... 14,400
3,800 Refac Technology Development Corp....... 23,275
15,800 Resource Bank Shares Mortgage Group
Inc................................... 229,100
4,300 Strattec Security Corp.................. 74,175
16,700 Student Loan Corp....................... 665,912
3,300 Transport Leasing International Inc..... 20,006
1,000 World Acceptance Corp................... 5,750
-----------
2,634,886
-----------
FOOD RETAIL--0.43%
14,500 Ingles Markets Inc...................... 212,062
5,500 Marsh Supermarkets Inc.*................ 80,438
3,300 Schultz Sav O Stores Inc................ 47,025
1,100 Seaway Food Town Inc.................... 26,950
4,500 Western Beef, Inc.*..................... 60,188
-----------
426,663
-----------
FOREST PRODUCTS, PAPER--0.98%
22,500 Glatfelter PH Co........................ 374,062
4,100 National Picture & Frame Co.*........... 39,975
6,900 Republic Group Inc...................... 119,025
8,250 Rock-Tennessee Co....................... 156,750
1,700 Specialty Paperboard Inc.*.............. 39,100
1,800 Tranzonic Co.*.......................... 28,575
</TABLE>
37
<PAGE>
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
FOREST PRODUCTS, PAPER--(CONCLUDED)
7,900 Triangle Pacific Corp.*................. $ 208,363
-----------
965,850
-----------
FREIGHT - AIR, SEA & LAND--0.69%
21,200 APL Ltd................................. 508,800
4,475 International Shipholding Corp.......... 79,431
800 Marten Transport Ltd.*.................. 9,700
1,700 Old Dominion Freight Lines Inc.*........ 17,213
3,300 PAM Transportation Services Inc.*....... 18,562
4,400 Transport Corp. of America.............. 47,850
-----------
681,556
-----------
GAS UTILITY--2.93%
5,000 Bay State Gas Co........................ 129,375
1,800 Berkshire Gas Co........................ 28,350
2,800 Chesapeake Utilities Corp............... 48,650
6,300 Colonial Gas Co......................... 135,450
5,300 Connecticut Energy Corp................. 121,238
7,900 Connecticut Natural Gas Corp............ 189,600
1,700 Connecticut Water Service Inc........... 46,750
1,000 Delta Natural Gas Inc................... 17,750
5,400 Eastern Enterprises..................... 177,525
2,200 Energen Corp............................ 67,650
2,300 Energynorth Inc......................... 48,300
1,100 Essex County Gas Co..................... 28,050
10,300 Indiana Energy Inc...................... 254,925
9,700 Laclede Gas Co.......................... 232,800
2,700 Mobile Gas Service Corp................. 77,625
3,900 North Carolina Natural Gas Corp......... 121,387
9,200 Northwest Natural Gas Co................ 230,000
7,400 NUI Corp................................ 173,900
3,900 Providence Energy Corp.................. 67,275
6,000 SigCorp Inc............................. 210,750
2,400 SJW Corp................................ 114,000
2,300 South Jersey Industries Inc............. 54,625
5,600 Southern California Water Co............ 126,000
7,800 Yankee Energy Systems Inc............... 175,500
-----------
2,877,475
-----------
HEAVY MACHINERY--1.55%
7,600 Alamo Group Inc......................... 136,800
6,100 Allied Products Corp.................... 190,625
7,400 Astec Industries Inc.*.................. 66,600
9,900 Cascade Corp............................ 163,350
4,500 Gehl Co.*............................... 47,813
18,600 Global Industrial Technologies Inc.*.... 339,450
4,800 Hardinge Brothers Inc................... 123,600
369 NACCO Industries Inc.................... 19,326
6,130 Raymond Corp............................ 121,067
1,300 Richton International Corp.*............ 5,688
2,600 Tennant Co.............................. 69,875
18,300 Titan Wheel International Inc........... 226,462
2,600 Western Power & Equipment Corp.......... 13,325
-----------
1,523,981
-----------
HOTELS--0.71%
1,800 Black Hawk Gaming & Development Inc.*... 9,000
1,300 Buckhead America Corp................... 7,963
19,100 Casino America Inc.*.................... 52,525
33,200 Grand Casinos Inc.*..................... 381,800
7,000 Marisa Christina Inc.................... 57,750
19,200 Players International, Inc.*............ 109,200
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
HOTELS--(CONCLUDED)
6,200 Sholodge, Inc.*......................... $ 76,337
-----------
694,575
-----------
HOUSEHOLD PRODUCTS--0.89%
4,900 Allou Health & Beauty Care, Inc.*....... 31,850
8,800 American Safety Razor Co.*.............. 128,700
2,800 Dixon Ticonderoga Co.................... 19,250
7,400 Jean Phillippe Fragrances Inc.*......... 48,100
7,300 Libbey Inc.............................. 214,438
11,300 Parlux Fragrances Inc................... 45,200
6,600 Scotts Liquid Gold Inc.................. 17,325
12,300 Stanhome Inc............................ 318,262
3,400 Stephan Co.............................. 47,175
-----------
870,300
-----------
INDUSTRIAL SERVICES/SUPPLIES--0.74%
5,900 Allied Holdings Inc..................... 39,088
11,300 Interpool, Inc.......................... 278,262
1,800 Kinder Care Learning Centers, Inc.*..... 33,525
5,400 McGrath Rentcorp........................ 145,125
7,500 PLM International, Inc.*................ 24,844
8,100 Rollins Truck Leasing Corp.............. 100,237
6,800 Superior Surgical Manufacturing Inc..... 94,350
4,300 Travel Ports America Inc.*.............. 11,556
680 Zimmerman Sign Co....................... 3,060
-----------
730,047
-----------
INFORMATION & COMPUTER SERVICES--0.92%
11,300 Advo Inc.*.............................. 146,900
1,000 Analysis & Technology Inc............... 14,125
19,200 Computervision Corp.*................... 144,000
10,300 Dames & Moore Inc....................... 141,625
5,500 Devon Group Inc. New*................... 156,750
5,900 IPC Information Systems Inc............. 91,450
1,500 Innodata Corp.*......................... 2,109
2,000 Isomedix Inc.*.......................... 28,750
2,700 KBK Capital Corp........................ 12,825
3,700 Thomas Group Inc........................ 29,138
6,300 URS Corp. New*.......................... 64,575
2,300 Value Line Inc.......................... 69,575
-----------
901,822
-----------
LEISURE--1.82%
1,500 Baldwin Piano & Organ Co.*.............. 19,125
1,800 Boston Acoustics Inc.................... 36,000
17,900 Department 56 Inc.*..................... 413,937
7,600 ERO Inc.*............................... 65,550
4,200 Ellett Brothers Inc..................... 22,575
4,800 First Team Sports Inc.*................. 27,000
9,600 Fossil Inc.............................. 123,600
2,500 Koss Corp.*............................. 29,063
8,700 Oneida Ltd.............................. 151,163
21,800 Polaris Industries Inc.................. 547,725
1,000 Polk Audio Inc.*........................ 10,500
28,700 Station Casinos Inc..................... 283,412
4,100 Stuart Entertainment Inc................ 19,731
3,884 Swing 'n Slide Corp.*................... 17,964
1,350 Valley Forge Corp....................... 17,550
-----------
1,784,895
-----------
LIFE INSURANCE--4.56%
3,100 Allied Life Financial Corp.............. 55,413
36,400 American Annuity Group Inc.............. 527,800
</TABLE>
38
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
LIFE INSURANCE--(CONCLUDED)
10,500 American Heritage Life Investment
Corp.................................. $ 276,937
10,000 Amvestors Financial Corp................ 162,500
11,400 Capitol American Financial Corp......... 414,675
1,500 Cotton States Life Insurance Co......... 18,750
6,840 Delphi Financial Group, Inc.*........... 213,750
14,400 Home Beneficial Corp.................... 547,200
3,400 Independence Holding Co. New............ 24,650
13,100 Liberty Corp............................ 530,550
5,500 Life Re Corp............................ 239,250
17,300 Life USA Holdings Inc.*................. 185,975
500 National Western Life Insurance Co.*.... 43,625
5,000 PennCorp Financial Group, Inc........... 183,125
7,400 Pioneer Financial Services Inc.......... 190,550
19,400 Presidential Life Corp.................. 271,600
7,100 Security Connecticut Co................. 272,462
10,000 Washington National Corp................ 285,000
3,900 Westbridge Capital Corp.*............... 43,388
-----------
4,487,200
-----------
MANUFACTURING-GENERAL--5.60%
7,300 Amcast Industrial Corp.................. 171,550
800 Amistar Corp.*.......................... 3,450
7,600 Ampco Pittsburgh Corp................... 93,100
14,600 Baldwin Technology Inc.*................ 45,625
2,800 Barnes Group Inc........................ 191,100
11,200 Blount International Inc................ 455,000
5,100 CPAC Inc................................ 68,850
1,500 Central Sprinkler Corp.*................ 40,875
8,500 Cincinnati Milacron Inc................. 195,500
7,000 Commercial Intertech Corp............... 86,625
1,200 Crown Andersen Inc...................... 7,800
10,700 Detroit Diesel Corp.*................... 205,975
7,000 Esterline Technologies Corp.*........... 184,625
2,400 Farr Co.*............................... 43,800
32,400 Fedders USA Inc......................... 202,500
8,900 Genlyte Group Inc....................... 106,800
6,600 Graco Inc............................... 212,025
1,000 Graham Corp............................. 11,125
5,500 Hurco Company Inc....................... 31,625
6,100 Kaman Corp.............................. 79,300
2,300 Knape & Vogt Manufacturing Co........... 40,250
3,700 Kysor Industrial Corp................... 136,900
13,100 Measurex Corp........................... 453,587
6,500 Mestek, Inc.*........................... 117,000
4,200 Nortek, Inc.*........................... 101,850
1,200 P & F Industries Inc.................... 6,900
1,900 PPT Vision Inc.......................... 16,625
2,000 Panatech Research & SWV Corp............ 13,250
3,300 Penn Engineering Manufacturing Corp..... 66,000
2,400 Portec, Inc.*........................... 27,000
7,900 Powell Industries Inc.*................. 111,588
2,100 Pulaski Furniture Corp.................. 36,750
11,300 Quanex Corp............................. 299,450
16,900 Regal Beloit Corp....................... 321,100
4,600 Scotsman Industries, Inc................ 110,400
11,400 Semitool Inc............................ 159,600
4,875 Shelter Components Corp................. 55,453
14,200 Specialty Equipment Cos Inc............. 191,700
9,100 Standex International Corp.............. 254,800
5,200 Starrett LS Co.......................... 146,900
3,300 Transtechnology Corp.................... 66,825
1,800 Twin Discount, Inc...................... 43,875
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
MANUFACTURING-GENERAL--(CONCLUDED)
23,600 Westinghouse Air Brake Co. New.......... $ 297,950
-----------
5,513,003
-----------
MANUFACTURING-HIGH TECHNOLOGY--2.98%
9,900 Aeroflex, Inc.*......................... 44,550
2,500 Aseco Corp.*............................ 26,563
4,300 Bel Fuse Inc............................ 63,962
5,900 Bio Rad Laboratories Inc................ 188,800
6,600 Boca Research Inc....................... 59,400
4,700 Bridgeport Machines Inc................. 52,288
2,200 Buffton Corp.*.......................... 4,813
3,700 CTS Corp................................ 172,050
5,500 Cherry Corp.*........................... 77,687
11,400 Cidco Inc............................... 146,775
4,000 Circuit Systems, Inc.*.................. 18,500
8,900 Core Industries Inc..................... 149,075
15,900 Credence Systems Corp.*................. 357,750
1,000 DSP Technology Inc.*.................... 5,750
6,600 Franklin Electronic Publishers Inc.*.... 88,275
23,800 LTX Corp................................ 141,312
1,400 MFRI Inc................................ 10,981
4,900 Numerex Corp............................ 21,438
7,900 Park Electrochemical Corp............... 203,425
6,600 Pioneer Standard Electronics, Inc....... 100,650
3,900 Spectrum Control Inc.................... 14,625
4,935 Sterling Electronics Corp.*............. 69,707
5,500 TII Industries Inc...................... 35,750
21,200 Tencor Industries*...................... 863,900
1,800 Video Display Corp...................... 8,100
-----------
2,926,126
-----------
MEDIA--0.38%
12,000 Media General Inc....................... 378,000
-----------
MEDICAL PRODUCTS--0.22%
11,300 Figgie International Holdings Inc....... 139,837
500 Lakeland Industries, Inc.*.............. 1,578
5,300 Maxxim Medical Inc...................... 76,188
-----------
217,603
-----------
MEDICAL PROVIDERS--1.97%
3,600 Advocat Services, Inc.*................. 29,250
15,100 Integrated Health Services, Inc......... 402,037
13,900 Living Centers Of America Inc........... 403,100
21,000 Mariner Health Group Inc................ 204,750
2,300 Morrison Health Care Inc................ 33,350
40,200 Sun Healthcare Group Inc.*.............. 653,250
17,300 Theratx Inc............................. 207,600
-----------
1,933,337
-----------
MINING & METALS--5.25%
7,700 Acme Metals Inc.*....................... 138,600
10,900 Bayou Steel Corp.*...................... 34,063
7,700 Brush Wellman Inc....................... 139,562
13,800 Carpenter Technology Corp............... 496,800
5,700 Castle A M & Co......................... 117,563
22,600 Chaparral Steel Co...................... 268,375
6,800 Chase Brass Industries Inc.*............ 150,450
14,700 Citation Corp.*......................... 192,937
9,400 Cleveland Cliffs Inc.................... 408,900
4,700 Cold Metal Products Inc.*............... 28,788
12,700 Commercial Metals Co.................... 369,887
6,000 Commonwealth Aluminum Corp.............. 114,000
4,100 Easco Inc............................... 29,725
16,800 Falcon Building Products Inc.*.......... 249,900
8,300 Foster LB Co.*.......................... 33,200
6,700 Green AP Industries Inc................. 55,275
</TABLE>
39
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PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
MINING & METALS--(CONCLUDED)
20,400 Intermet Corp........................... $ 313,650
21,800 J & L Specialty Steel Inc............... 258,875
4,000 Lindberg Corp........................... 36,000
6,400 Maxxam Inc.*............................ 324,800
3,400 National Standard Co.*.................. 28,475
17,900 National Steel Corp.*................... 174,525
16,300 Northwestern Steel & Wire Co.*.......... 63,163
1,300 Oglebay Norton Co....................... 55,900
1,900 Pitt Desmoines Inc...................... 74,575
5,800 Roanoke Electric Steel Corp............. 97,875
14,300 Rouge Steel Co.......................... 266,337
4,900 Steel Technologies Inc.................. 53,900
4,600 Steel West Virginia Inc.*............... 29,900
9,100 Texas Industries Inc.................... 502,775
2,500 United States Lime & Minerals, Inc...... 19,063
4,600 Webco Industries Inc.*.................. 28,750
1,022 Zemex Corp.*............................ 7,537
-----------
5,164,125
-----------
MOTOR VEHICLES--3.75%
4,790 Autocam Corp............................ 58,677
26,200 Breed Technologies, Inc................. 566,575
4,400 Custom Chrome Inc....................... 84,700
5,400 Defiance, Inc........................... 37,378
9,000 Excel Industries, Inc................... 148,500
4,100 Hilite Industries Inc.*................. 19,475
2,900 JPE Inc.*............................... 22,475
2,300 Lund International Holdings, Inc.*...... 25,875
1,100 McClain Industries Inc.*................ 6,600
14,000 Modine Manufacturing Co................. 399,000
1,800 National R.V. Holdings Inc.*............ 25,650
28,600 Navistar International Corporation
Inc.*................................. 286,000
7,100 Oshkosh Truck Corp...................... 85,200
6,400 R & B Inc.*............................. 48,800
1,700 Republic Automotive Parts Inc.*......... 27,200
1,420 Rexhall Industries, Inc.*............... 9,408
4,700 SMC Corp.*.............................. 35,838
2,900 Safety Components International Inc.*... 34,800
8,200 Shiloh Industries Inc.*................. 145,550
14,800 Simpson Industries, Inc................. 155,400
17,200 Smith AO Corp........................... 574,050
11,000 Standard Motor Products Inc............. 154,000
13,300 Stant Corp.............................. 186,200
5,920 Supreme Industries, Inc.*............... 37,000
19,500 TBC Corp.*.............................. 146,250
5,800 Thomson PBE Inc......................... 36,250
4,000 Thor Industries, Inc.................... 99,500
4,660 Varlen Corp............................. 89,705
6,400 Walbro Corp............................. 116,000
9,400 Williams Controls Inc.*................. 23,206
-----------
3,685,262
-----------
OIL REFINING--0.56%
2,400 Adams Resources & Energy Inc............ 37,200
4,400 Castle Energy Corp.*.................... 51,700
5,100 Giant Industries Inc.................... 72,675
3,400 Holly Corp.............................. 92,225
5,010 Mercury Air Group, Inc.................. 38,201
19,200 Tesoro Petroleum Corp.*................. 261,600
-----------
553,601
-----------
OIL SERVICES--0.16%
2,100 Atrion Corp............................. 34,650
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
OIL SERVICES--(CONCLUDED)
5,700 ICO Inc................................. $ 33,844
2,700 Maverick Tube Corp...................... 47,250
1,900 World Fuel Services Corp................ 40,850
-----------
156,594
-----------
OTHER INSURANCE--8.32%
9,800 20Th Century Industries................. 172,725
2,300 ACMAT Corp.*............................ 33,350
9,700 Acceptance Insurance Co.*............... 194,000
13,950 Allied Group Inc........................ 442,912
1,800 Amwest Insurance Group, Inc............. 22,050
10,700 Capital Re Corp......................... 470,800
5,250 Capitol Transamerica Corp............... 120,750
23,800 Citizens Corp........................... 562,275
2,800 Donegal Group Inc....................... 58,100
9,100 EMC Insurance Group Inc................. 109,200
11,300 Enhance Financial Services Group Inc.... 415,275
10,010 Fidelity National Financial Inc......... 132,632
3,000 Foremost Corporation of America......... 178,125
6,900 Fremont General Corp.................... 207,000
16,345 Gainsco Inc............................. 149,148
10,181 Guaranty National Corp. New............. 170,532
11,600 Harleysville Group Inc.................. 337,850
4,700 Home State Holdings Inc.*............... 36,425
10,600 Horace Mann Educators Corp. New......... 453,150
6,400 Intercargo Corp......................... 60,800
1,100 Investors Title Insurance Co............ 16,775
3,000 Kaye Group Inc.......................... 13,875
5,000 Lawyers Title Corp...................... 115,625
8,613 MAIC Holdings, Inc.*.................... 264,867
6,800 MMI Companies Inc....................... 205,700
5,000 Meridian Insurance Group, Inc........... 76,250
14,300 Nac Re-Insurance Corp................... 518,375
6,100 Navigators Group Inc.*.................. 115,137
8,600 Nymagic Inc............................. 158,025
3,900 Omni Insurance Group Inc.*.............. 37,538
8,700 Orion Capital Corp...................... 548,100
10,478 PXRE Corp............................... 277,667
1,980 Professionals Insurance Co. Management
Group*................................ 40,590
5,800 RLI Corp................................ 203,000
11,900 Selective Insurance Group Inc........... 487,900
6,000 State Auto Financial Corp............... 105,000
5,600 Stewart Information Services Corp....... 116,200
7,945 Titan Holdings Inc...................... 132,086
5,500 Trenwick Group Inc...................... 275,000
4,900 UNICO American Healthcare Co............ 52,063
4,800 US Facilities Corp...................... 96,000
-----------
8,182,872
-----------
PUBLISHING--1.17%
14,500 Bowne & Company Inc..................... 387,875
1,000 Courier Corp............................ 16,000
3,900 Day Runner Inc.......................... 79,950
15,500 Franklin Quest Co....................... 317,750
9,700 Graphic Industries, Inc................. 94,575
6,400 Merrill Corp............................ 156,000
3,000 Plenum Publishing Corp.................. 102,750
-----------
1,154,900
-----------
RAILROADS--0.13%
11,800 Greenbrier Companies Inc................ 131,275
-----------
</TABLE>
40
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PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
REAL PROPERTY--5.76%
5,200 American Woodmark Corp.................. $ 94,900
2,500 Ameron, Inc............................. 124,062
4,900 Amrep Corp.............................. 22,050
5,500 Beazer Homes USA Inc.*.................. 88,688
7,700 Belmont Homes Inc.*..................... 72,188
4,800 BMC West Corp........................... 60,600
4,700 Borror Corp.*........................... 22,913
3,900 Butler Manufacturing Co................. 145,762
6,100 Cameron Ashley Building Products,
Inc................................... 74,725
18,500 Centex Construction Products Inc........ 363,062
5,900 Continental Homes Holding Corp.......... 126,850
26,800 D.R. Horton Inc......................... 318,250
900 Drew Industries Inc. New*............... 22,500
5,800 Engle Homes Inc......................... 50,750
6,900 Florida Rock Industries, Inc............ 224,250
15,250 Granite Construction Inc................ 358,375
19,200 Hovnanian Enterprises Inc............... 127,200
2,900 Insituform East Inc..................... 9,425
1,800 International Aluminum Corp............. 48,375
2,400 Liberty Homes, Inc...................... 29,400
600 Lindal Cedar Homes, Inc.*............... 2,550
8,900 Lone Star Industries, Inc............... 322,625
10,200 M.D.C. Holdings, Inc.................... 84,150
11,900 Medusa Corp............................. 440,300
1,400 NCI Building Systems Inc.*.............. 51,800
11,900 NVR Inc.*............................... 153,212
4,100 Patrick Industries Inc.................. 60,988
2,800 Perini Corp............................. 23,450
19,600 Pulte Corp.............................. 649,250
7,800 Robertson Ceco Corp..................... 60,450
4,000 Rottlund Inc............................ 22,000
5,800 Schottenstein Homes Inc................. 60,175
14,700 Southdown, Inc.......................... 448,350
4,300 Starrett Housing Corp................... 43,000
18,700 Toll Brothers Inc.*..................... 338,937
9,000 United States Home Corp. New*........... 230,625
6,300 Washington Homes Inc. New*.............. 29,138
14,400 Webb Delaware Corp...................... 239,400
2,200 Zaring Homes Inc.*...................... 21,450
-----------
5,666,175
-----------
RESTAURANTS--0.85%
5,400 Davco Restaurants Inc.*................. 56,700
2,700 El Chico Restaurants, Inc.*............. 18,563
3,100 ELXSI Corp.*............................ 20,150
5,300 IHOP Corp. New*......................... 130,513
7,900 Lubys Cafeterias Inc.................... 160,962
3,600 Mainstreet Bankgroup Inc................ 69,300
2,800 Max & Ermas Restaurants Inc............. 18,200
6,825 Morrison Restaurants Inc................ 36,684
41,700 Ryan's Family Steak Houses, Inc.*....... 323,175
-----------
834,247
-----------
SECURITIES & ASSET MANAGEMENT--2.68%
6,400 Advest Group Inc........................ 75,200
7,000 Eaton Vance Corp........................ 315,000
1,000 H D Vest Inc.*.......................... 4,125
7,650 Intermediate Regional Financial Group
Inc................................... 325,125
4,000 Interstate Johnson Lane, Inc............ 62,000
2,000 Jefferies Group, Inc.................... 78,250
7,000 Legg Mason Inc.......................... 316,750
5,000 McDonald & Company Investments Inc...... 186,250
11,500 Morgan Keegan, Inc...................... 204,125
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
SECURITIES & ASSET MANAGEMENT--(CONCLUDED)
11,500 Piper Jaffray Companies, Inc............ $ 202,687
4,500 Quick & Reilly Group Inc................ 164,812
15,300 Raymond James Financial, Inc............ 493,425
945 Ryan Beck & Co.......................... 4,253
116 Scott & Stringfellow Financial, Inc..... 2,320
7,500 Sherwood Group Inc.*.................... 70,313
6,900 Southwest Securities Group Inc.......... 106,950
1,000 Ziegler Companies Inc................... 19,375
-----------
2,630,960
-----------
SEMICONDUCTOR--3.56%
6,100 BTU International Inc.*................. 22,494
6,070 Bell Industries, Inc.*.................. 137,334
7,000 Bell Microproducts Inc.*................ 77,875
2,400 Diodes Inc.*............................ 18,000
14,800 Electroglas Inc.*....................... 290,450
13,400 FSI International Inc.*................. 227,800
12,900 International Rectifier Corp............ 204,787
5,800 Lam Research Corp.*..................... 234,175
14,400 Marshall Industries*.................... 442,800
8,300 Micro Linear Corp.*..................... 106,862
6,200 Novellus Systems Inc.*.................. 491,350
3,600 Nu Horizons Electronics Corp............ 33,300
4,800 Richardson Electronics Ltd.............. 44,400
20,800 Silicon Valley Group Inc.*.............. 559,000
8,000 Trident Microsystems Inc.*.............. 166,000
3,700 Veeco Industries Inc.*.................. 93,425
5,300 Watkins Johnson Co.*.................... 141,775
5,100 Wyle Electronics........................ 210,375
-----------
3,502,202
-----------
SPECIALTY RETAIL--1.78%
1,600 Advanced Marketing Services, Inc.*...... 15,400
2,600 Barrys Jewelers, Inc. New*.............. 4,225
7,900 Blair Corp.............................. 160,962
6,300 D I Y Home Warehouse Inc................ 25,988
11,800 Friedmans Inc........................... 177,000
4,010 Friedman Industries, Inc................ 23,308
6,300 Gantos Inc. New*........................ 16,538
9,500 Haverty Furniture Companies Inc......... 122,312
3,300 Holiday RV Superstores Inc.*............ 6,394
3,400 Old America Stores Inc.................. 16,575
7,100 Rex Stores Corp.*....................... 57,688
4,400 Roberds Inc.*........................... 36,300
77,300 Service Merchandise Company, Inc.*...... 318,862
3,300 Strober Organization Inc.*.............. 18,975
2,400 Trak Auto Corp.*........................ 33,900
4,700 Ultimate Electronics Inc.*.............. 14,100
24,200 Waban Inc.*............................. 656,425
3,200 Wolohan Lumber Co....................... 41,600
-----------
1,746,552
-----------
THRIFT--3.48%
480 Albank Financial........................ 15,120
750 Anchor Bancorp Wisconsin Inc............ 30,938
8,800 Bankers Corp............................ 198,000
5,625 Chittenden Corp......................... 142,734
13,300 Collective Bancorp, Inc................. 457,187
1,000 Community Bankshares Inc................ 23,000
3,700 D & N Savings Financial Corp.*.......... 66,138
3,300 Eagle Financial Corp.................... 95,700
21,000 First Financial Corp.................... 530,250
3,150 First Liberty Financial Corp............ 58,275
3,500 First Republic Bancorp Inc.*............ 66,937
</TABLE>
41
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Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
THRIFT--(CONTINUED)
1,500 First State Financial Services Inc...... $ 24,938
500 Grove Bank of Brighton Massachusetts.... 25,063
1,800 Haven Bancorp........................... 52,425
2,300 Keystone Heritage Group Inc............. 61,238
3,500 MAF Bancorp Inc......................... 120,969
10,600 Metrowest Bank.......................... 53,000
9,300 New York Bancorp Inc.................... 231,337
2,125 Parkvale Financial Corp................. 53,656
8,700 RCSB Financial Inc...................... 254,475
<CAPTION>
NUMBER
OF
SHARES VALUE
- ------ -----------
<C> <S> <C>
THRIFT--(CONCLUDED)
8,100 Roosevelt Financial Group, Inc.......... $ 174,150
3,300 Saint Francis Capital Corp.............. 87,450
35,190 Sovereign Bancorp, Inc.................. 492,660
1,600 Washington Savings Bank FSB............. 8,400
5,090 York Financial Corp..................... 97,346
-----------
3,421,386
-----------
WIRELESS TELECOMMUNICATIONS--0.04%
2,500 Applied Voice Technology Inc............ 41,875
-----------
92,822,913
Total Common Stocks (cost--$80,093,072).........
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE
- ----------- --------------- ---------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--5.15%
$ 5,064 Repurchase Agreement dated 01/31/97 with State Street
Bank & Trust Company, collateralized by $5,165,723 U.S.
Treasury Notes, 11.250% due 02/15/15; proceeds:
$5,066,004 (cost--$5,064,000).......................... 02/03/97 4.750% 5,064,000
----------
Total Investments (cost--$85,157,072)--99.54%........................ 97,886,913
Other assets in excess of liabilities--0.46%.......................... 450,000
----------
Net Assets--100.00%................................................... $98,336,913
----------
----------
</TABLE>
- ---------------
* Non-income producing security
ADR American Depositary Receipt
ADS American Depositary Shares
See accompanying notes to financial statements
42
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE SMALL/MEDIUM COMPANY GROWTH EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS--88.25%
AIRLINES--0.98%
21,000 AAR Corp..................................... $ 546,000
9,900 Midwest Express Holdings Inc................. 377,438
-----------
923,438
-----------
APPAREL, RETAIL--0.75%
17,900 Sport Haley Inc.............................. 250,600
22,900 Wet Seal Inc................................. 460,863
-----------
711,463
-----------
APPAREL, TEXTILES--1.73%
57,700 Cyrk Inc..................................... 677,975
9,800 Designer Holdings Ltd........................ 138,425
26,400 Wolverine World Wide Inc..................... 815,100
-----------
1,631,500
-----------
CHEMICALS--0.95%
20,400 Eco Soil Systems Inc......................... 89,250
38,700 Nova Corp.................................... 812,700
-----------
901,950
-----------
COMPUTER HARDWARE--2.82%
44,200 EMC Corp.*................................... 1,674,075
20,100 Storage Technology Corp...................... 984,900
-----------
2,658,975
-----------
COMPUTER SOFTWARE--8.44%
36,500 Cadence Design Systems Inc.*................. 1,396,125
14,400 Credit Management Solutions Inc.............. 284,400
31,600 Egghead Inc.................................. 169,850
10,900 Excite Inc................................... 198,925
23,500 Fore Systems*................................ 684,437
19,200 Geoworks*.................................... 480,000
49,000 HPR Inc...................................... 784,000
10,800 Inso Corp.................................... 410,400
43,900 Maxis Inc.................................... 584,419
47,400 Peerless Systems Corp........................ 948,000
60,300 Platinum Technology Inc...................... 1,010,025
7,800 Puma Technology Inc.......................... 118,950
14,300 Rogue Wave Software Inc. .................... 293,150
44,400 Ross Systems Inc............................. 260,850
6,700 Veritas Software Corp........................ 348,400
-----------
7,971,931
-----------
DEFENSE/AEROSPACE--0.19%
9,000 Doncasters plc*.............................. 176,625
-----------
DIVERSIFIED RETAIL--1.86%
30,000 Aviation Sales Co............................ 705,000
12,700 Coldwater Creek Inc.......................... 230,188
23,700 Meyer Fred Inc............................... 820,612
-----------
1,755,800
-----------
DRUGS & MEDICINE--4.38%
7,900 Ariad Pharmaceuticals Inc.................... 60,731
74,900 Capstone Pharmacy Services Inc............... 866,031
15,300 Columbia Laboratories Inc.*.................. 227,588
47,800 Dusa Pharmaceuticals Inc..................... 364,475
48,200 Jones Medical Industries Inc................. 1,831,600
18,400 NABI Inc..................................... 202,976
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
DRUGS & MEDICINE--(CONCLUDED)
12,000 Vertex Pharmaceuticals Inc................... $ 588,000
-----------
4,141,401
-----------
ELECTRIC UTILITIES--0.83%
46,900 AES China Generating Co. ADR................. 785,575
-----------
ELECTRICAL POWER--0.28%
8,700 Cable Design Technologies Corp............... 265,350
-----------
ENTERTAINMENT--2.29%
55,000 Florida Panthers Holdings Inc. (1)........... 1,678,534
34,200 Ticketmaster Group Inc....................... 483,075
-----------
2,161,609
-----------
ENVIRONMENTAL SERVICES--4.11%
56,620 Republic Industries Inc.*.................... 2,370,962
57,900 Superior Services Inc........................ 1,100,100
39,200 York Research Corp........................... 411,600
-----------
3,882,662
-----------
FINANCIAL SERVICES--1.32%
33,100 First Alliance Co............................ 910,250
20,300 Medallion Financial Corp..................... 337,488
-----------
1,247,738
-----------
FOOD RETAIL--0.35%
24,100 United Natural Foods Inc..................... 331,375
-----------
HOTELS--5.78%
44,100 Capstar Hotel Co............................. 1,063,912
58,200 Extended Stay America Inc.*.................. 1,054,875
40,900 Mirage Resorts Inc.*......................... 1,027,613
44,800 Rio Hotel & Casino Inc....................... 733,600
36,600 Studio Plus Hotels Inc....................... 777,750
22,600 Sun International Hotels Ltd. ADR............ 805,125
-----------
5,462,875
-----------
INDUSTRIAL SERVICES/SUPPLIES--4.80%
4,700 Administaff Inc.............................. 102,225
55,000 Alrenco Inc.................................. 625,625
24,100 Carriage Services Inc........................ 572,375
24,100 Norrell Corporation Georgia.................. 671,787
54,600 Norwood Promotional Products Inc.*........... 1,051,050
33,200 Pittston Services Group...................... 937,900
46,400 Protection One Inc........................... 394,400
4,000 Registry Inc................................. 173,500
-----------
4,528,862
-----------
INFORMATION & COMPUTER SERVICES--4.00%
34,000 Cambridge Technology Partners................ 977,500
28,900 G Tech Holdings Corp......................... 1,004,275
25,800 NFO Research Inc............................. 599,850
39,000 Sipex Corp.*................................. 1,199,250
-----------
3,780,875
-----------
LEISURE--5.50%
36,400 Activision Inc.*............................. 527,800
86,900 CUC International Inc.*...................... 2,150,775
39,200 Equity Marketing Inc......................... 666,400
</TABLE>
43
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<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
LEISURE--(CONCLUDED)
29,400 K2 Inc....................................... $ 830,550
47,800 Russ Berrie & Company Inc.................... 961,975
9,300 Teardrop Golf Co............................. 52,312
-----------
5,189,812
-----------
LONG DISTANCE & PHONE COMPANIES--1.75%
29,600 ICG Communications Inc....................... 510,600
36,800 Teleport Communications Group*............... 1,145,400
-----------
1,656,000
-----------
MANUFACTURING-GENERAL--0.10%
9,400 Elamex S.A. De C.V........................... 97,525
-----------
MANUFACTURING-HIGH TECHNOLOGY--6.06%
14,300 ADAC Laboratories............................ 355,712
13,400 C Cor Electronics Inc........................ 190,950
28,000 ITI Technologies Inc......................... 465,500
21,400 KLA Instruments Corp......................... 912,175
43,000 Komag Inc.*.................................. 1,263,125
21,400 LSI Industries Inc........................... 286,225
15,400 PRI Automation Inc........................... 925,925
16,700 Sawtek Inc................................... 622,075
43,300 Telco Systems Inc. .......................... 703,625
-----------
5,725,312
-----------
MEDIA--4.07%
55,200 Ascent Entertainment Group Inc.*............. 772,800
44,000 Bouygues Offshore S.A. ADR................... 572,000
30,700 Central European Media Ltd. ADR.............. 1,082,175
19,600 Evergreen Media Corp......................... 607,600
8,600 Metro Networks Inc........................... 202,100
19,700 Young Broadcasting Inc....................... 605,775
-----------
3,842,450
-----------
MEDICAL PRODUCTS--0.41%
16,100 Cerus Corp. ................................. 195,213
15,200 Molecular Biosystems Inc. ................... 190,000
-----------
385,213
-----------
MEDICAL PROVIDERS--5.41%
29,200 Advanced Health Corp......................... 350,400
30,400 Alternative Living Services Inc.............. 399,000
64,000 American Oncology Resources Inc.............. 680,000
5,400 Arqule Inc................................... 117,925
16,100 Depotech Corp................................ 289,800
25,900 FPA Medical Management Inc................... 644,263
19,400 Neopath Inc.................................. 344,350
40,700 Renal Treatment Centers Inc.................. 1,144,687
18,800 Total Renal Care Holdings Inc................ 688,550
35,600 United States Diagnostic Inc................. 449,450
-----------
5,108,425
-----------
MINING & METALS--0.76%
8,900 Gibraltor Steel Corp......................... 209,706
21,700 Steel Dynamics Inc........................... 504,525
-----------
714,231
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
MOTOR VEHICLES--0.38%
28,000 Boyds Wheels Inc............................. $ 357,000
-----------
OIL REFINING--1.00%
20,800 Precision Drilling Corp...................... 946,400
-----------
OIL SERVICES--1.13%
2,400 Energy Ventures Inc.......................... 144,000
17,800 Patterson Energy Inc......................... 569,600
19,000 Veritas DGC Inc.............................. 352,380
-----------
1,065,980
-----------
OTHER INSURANCE--0.79%
27,000 United Dental Care Inc....................... 742,500
-----------
PUBLISHING--1.24%
23,700 Mecklermedia Corp............................ 491,775
45,100 National Education Corp...................... 682,138
-----------
1,173,913
-----------
REAL PROPERTY--1.31%
52,100 Security Capital Pacific Trust............... 1,237,375
-----------
RESTAURANTS--1.74%
12,300 Dave & Busters Inc........................... 259,838
34,100 Mortons Restaurant Group Inc................. 549,862
41,000 Sonic Corp................................... 835,375
-----------
1,645,075
-----------
SEMICONDUCTOR--2.83%
19,200 Cypress Semiconductor Corp................... 244,800
21,900 ESS Technology Inc........................... 709,012
17,900 Kulicke & Soffa Industries Inc............... 492,250
33,800 Triquint Semiconductor Inc................... 1,225,250
-----------
2,671,312
-----------
SPECIALTY RETAIL--5.31%
65,300 Duty Free International Inc.................. 906,037
28,700 Eagle Hardware & Garden Incorporated......... 548,888
39,900 General Nutrition Companies Inc.............. 723,187
14,200 Hollywood Entertainment Corp................. 287,550
2,800 Hot Topic Inc................................ 55,300
44,200 Home Shopping Network Inc.................... 895,050
18,600 Petco Animal Supplies Inc.................... 453,375
25,700 Piercing Pagoda Inc.......................... 558,975
28,600 Staples Inc.*................................ 586,300
-----------
5,014,662
-----------
WIRELESS TELECOMMUNICATIONS--2.60%
900 Individual Inc............................... 8,100
33,000 P-Com Inc.................................... 1,282,875
63,900 Pagemart Wireless Inc........................ 439,313
44,400 Telespectrum Worldwide Inc................... 727,050
-----------
2,457,338
-----------
Total Common Stocks (cost--$79,186,855)................. 83,350,527
-----------
WARRANTS--0.01%
LEISURE--0.01%
6,000 Teardrop Golf Co. warrant expiring 12/18/01;
exercise price $5.50 (cost--$7,414)........ 9,000
-----------
</TABLE>
44
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE SMALL/MEDIUM COMPANY GROWTH EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- ----------- -------------- ----------------- ----------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--11.83%
$11,173 Repurchase Agreement dated 01/31/97 with State Street
Bank & Trust Company, collateralized by $11,397,437
U.S. Treasury Bonds, 11.250% due 02/15/15; proceeds:
$11,177,423 (cost--$11,173,000)....................... 02/03/97 4.750 % $11,173,000
----------
Total Investments (cost--$90,367,269)--100.09%....................... 94,532,527
Liabilities in excess of other assets--(0.09)%....................... (83,915)
----------
Net Assets--100.00%.................................................. $94,448,612
----------
----------
</TABLE>
- ---------------
* Non-income producing security
ADR American Depositary Receipt
(1) Illiquid security represents 1.78% of net assets.
See accompanying notes to financial statements
45
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERNATIONAL EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS--88.92%
ARGENTINA--1.44%
ENERGY--0.34%
31,000 Compania Perez Companc S.A................... $ 231,639
-----------
UTILITIES--1.10%
25,000 Telefonica de Argentina S.A. ADS............. 762,500
-----------
Total Argentina Common Stocks........................... 994,139
-----------
AUSTRALIA--2.37%
BASIC INDUSTRIES--1.10%
55,500 Broken Hill Propriety Company Ltd............ 761,167
-----------
CONSUMER DURABLES--0.79%
132,000 News Corporation Ltd......................... 548,741
-----------
FINANCE--0.32%
13,000 Lend Lease Corp.............................. 224,600
-----------
TRANSPORTATION--0.16%
63,000 Qantas Airways............................... 108,604
-----------
Total Australia Common Stocks........................... 1,643,112
-----------
AUSTRIA--0.95%
CAPITAL GOODS--0.95%
4,400 VA Technologies AG........................... 660,697
-----------
BRAZIL--1.58%
BASIC INDUSTRIES--0.32%
10,100 Companhia Vale Do Rio Doce ADR............... 223,513
-----------
CAPITAL GOODS--0.78%
6,200 Telecomunicacoes Brasileiras S.A. ADR........ 540,950
-----------
UTILITIES--0.48%
16,500 Centrais Eletricas Brasileiras S.A. ADR...... 330,000
-----------
Total Brazil Common Stocks.............................. 1,094,463
-----------
CHILE--0.15%
UTILITIES--0.15%
3,300 Enersis SA ADR............................... 101,888
-----------
FRANCE--7.30%
BASIC INDUSTRIES--2.26%
4,800 Air Liquide S.A.............................. 780,516
23,500 Rhone Poulenc SA............................. 783,830
-----------
1,564,346
-----------
CAPITAL GOODS--2.32%
15,470 Michelin..................................... 888,282
14,200 Schneider S.A................................ 717,135
-----------
1,605,417
-----------
CONSUMER DURABLES--0.51%
9,300 Seita........................................ 353,308
-----------
ENERGY--0.80%
5,700 Elf Aquitaine................................ 554,260
-----------
FINANCE--1.41%
14,800 AXA.......................................... 978,180
-----------
Total France Common Stocks.............................. 5,055,511
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
GERMANY--7.53%
BASIC INDUSTRIES--1.85%
30,400 Hoechst AG................................... $ 1,278,592
-----------
CAPITAL GOODS--1.51%
2,700 Mannesmann AG................................ 1,046,460
-----------
FINANCE--1.43%
19,800 Deutsche Bank AG............................. 988,911
-----------
MACHINERY (DIVERSIFIED)--1.12%
5,900 SGL Carbon AG................................ 780,150
-----------
UTILITIES--1.62%
7,191 Deutsche Telekom............................. 134,518
17,800 Veba AG...................................... 985,866
-----------
1,120,384
-----------
Total Germany Common Stocks............................. 5,214,497
-----------
HONG KONG--7.32%
BANKS--1.02%
30,458 HSBC Holdings plc............................ 705,538
-----------
FINANCE--5.52%
451,000 Amoy Properties Ltd. ........................ 573,280
89,000 Cheung Kong Holdings Ltd. ................... 829,817
470,000 China OverSeas Land & Investments............ 254,743
69,000 Citic Pacific Ltd. .......................... 340,147
101,000 Hutchison Whampoa Ltd. ...................... 762,485
108,000 New World Developement Ltd................... 666,202
43,000 Swire Pacific Ltd............................ 395,374
-----------
3,822,048
-----------
UTILITIES--0.78%
314,400 Hong Kong Telecom Company Ltd................ 543,678
-----------
Total Hong Kong Common Stocks........................... 5,071,264
-----------
INDIA--0.69%
FINANCE--0.69%
50,000 Schroder India Fund.......................... 480,850
-----------
INDONESIA--0.97%
TELECOM EQUIPMENT--0.97%
375,000 PT Telkom Industries......................... 670,488
-----------
ITALY--1.70%
CAPITAL GOODS--0.73%
176,000 Telecom Italia............................... 509,069
-----------
ENERGY--0.97%
119,983 ENI.......................................... 670,229
-----------
Total Italy Common Stocks............................... 1,179,298
-----------
JAPAN--17.18%
BASIC INDUSTRIES--0.95%
36,000 Shin Etsu Chemical Company Ltd............... 659,161
-----------
CAPITAL GOODS--9.64%
10,000 Amano Corp. ................................. 89,901
40,000 Canon Inc.................................... 847,870
96 DDI Corp. ................................... 588,296
18,000 Daifuku Company Ltd. ........................ 203,390
</TABLE>
46
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERNATIONAL EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
JAPAN--(CONCLUDED)
CAPITAL GOODS--(CONCLUDED)
63,000 Hitachi Ltd. ................................ $ 566,374
10,000 Komori Corp.................................. 194,647
5,000 Kyocera Corp................................. 293,620
6,000 Mabuchi Motor Co............................. 247,433
89,000 Mitsubishi Heavy Industry.................... 640,826
27,000 Nitto Denko Corp............................. 374,119
2,000 Riso Kagaku Corp............................. 117,448
13,000 Rohm Company Ltd............................. 852,406
7,000 Secom Company Ltd............................ 378,160
11,000 Sony Corp.................................... 742,134
40,000 Sumitomo Electric Industries Ltd............. 537,754
-----------
6,674,378
-----------
CONSUMER DURABLES--3.23%
10,000 Kirin Beverage............................... 121,242
11,000 Ito-Yokado Company Ltd. ..................... 509,877
27,000 Marui Company Ltd............................ 383,026
9,000 Shimachu Company Ltd......................... 192,998
11,000 Taisho Pharmaceutical Co..................... 250,402
30,000 Toyota Motor Corp............................ 774,465
-----------
2,232,010
-----------
FINANCE--2.10%
36,000 Mitsui Fudosan Company Ltd................... 371,149
25,000 Nomura Securities Company Ltd................ 319,601
51,000 Sumitomo Trust & Banking Company Ltd......... 399,604
40,000 Tokio Marine & Fire Insurance................ 362,902
-----------
1,453,256
-----------
TRANSPORTATION--1.26%
72,000 Kamigumi Company Ltd......................... 385,995
82,000 Nippon Express Corporation Ltd............... 488,301
-----------
874,296
-----------
Total Japan Common Stocks............................... 11,893,101
-----------
MALAYSIA--3.35%
BASIC INDUSTRIES--0.99%
76,000 United Engineers Malaysia.................... 681,738
-----------
CONSUMER DURABLES--1.12%
43,000 Edaran Otomobil Nasional..................... 425,503
70,000 Resorts World Berhad......................... 351,971
-----------
777,474
-----------
FINANCE--1.24%
97,000 AMMB Holdings Berhad......................... 858,407
-----------
Total Malaysia Common Stocks............................ 2,317,619
-----------
MEXICO--2.84%
BASIC INDUSTRIES--1.01%
112,000 Cemex S.A.................................... 459,833
16,000 Empresas ICA Sociedad Controladora, S.A. de
C.V. ADR................................... 242,000
-----------
701,833
-----------
DIVERSIFIED HOLDINGS--0.20%
26,000 Alfa SA...................................... 135,678
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
MEXICO--(CONCLUDED)
FINANCE--0.64%
214,000 Grupo Financiero Banamex..................... $ 440,125
-----------
LEISURE & ENTERTAINMENT--0.64%
330,000 Cifra S.A. de C.V. .......................... 444,024
-----------
STEEL--0.35%
14,000 Tubos de Acero de Mexico S A ADR............. 245,000
-----------
Total Mexico Common Stocks.............................. 1,966,660
-----------
NETHERLANDS--3.19%
CONSUMER DURABLES--1.46%
65,700 Elsevier NV.................................. 1,011,869
-----------
FINANCE--1.73%
31,700 ING Groep N.V................................ 1,195,543
-----------
Total Netherlands Common Stocks......................... 2,207,412
-----------
PERU--0.15%
TELEPHONE--0.15%
4,700 Telefonica Del Peru S.A. ADR................. 101,638
-----------
PHILIPPINES--0.79%
UTILITIES--0.79%
9,200 Philippine Long Distance Telephone Co. ADR... 546,250
-----------
SINGAPORE--1.02%
FINANCE--1.02%
51,000 Development of Bank Singapore Ltd............ 706,421
-----------
SPAIN--2.74%
CONSUMER DURABLES--0.51%
20,300 Centros Comerciales Continente............... 349,583
-----------
FINANCE--1.15%
12,300 Banco de Santander SA........................ 799,307
-----------
UTILITIES--1.08%
32,000 Telefonica De Espana SA...................... 750,929
-----------
Total Spain Common Stocks............................... 1,899,819
-----------
SWEDEN--2.01%
CAPITAL GOODS--2.01%
6,000 ABB AB....................................... 762,557
18,800 Ericsson LM.................................. 631,099
-----------
1,393,656
-----------
SWITZERLAND--5.83%
CONSUMER DURABLES--4.53%
650 Nestle SA--Registered........................ 706,413
970 Novartis AG.................................. 1,112,219
150 Roche Holdings AG............................ 1,319,244
-----------
3,137,876
-----------
FINANCE--1.30%
3,190 Zurich Versicherun........................... 900,394
-----------
Total Switzerland Common Stocks......................... 4,038,270
-----------
TAIWAN--0.44%
FINANCE--0.44%
32 Taipei Fund.................................. 304,000
-----------
</TABLE>
47
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERNATIONAL EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
UNITED KINGDOM--16.66%
BANKS--1.85%
106,000 Lloyds TSB Group plc......................... $ 815,254
50,831 Royal Bank of Scotland Group plc............. 466,691
-----------
1,281,945
-----------
BUILDING MATERIALS & PAPER PACKAGING--0.81%
75,000 Wolseley plc................................. 561,208
-----------
DIVERSIFIED INDUSTRIALS--0.47%
63,000 Wassall plc.................................. 322,016
-----------
ENGINEERING SERVICES--2.27%
41,000 GKN plc...................................... 658,917
33,000 Mckechnie plc................................ 317,653
47,732 Smiths Industries plc........................ 595,790
-----------
1,572,360
-----------
HOUSEHOLD GOODS--0.99%
60,600 Reckitt & Colman plc......................... 688,438
-----------
LEISURE & ENTERTAINMENT--1.47%
33,000 Granada Group plc............................ 474,828
148,000 Ladbroke Group plc........................... 544,239
-----------
1,019,067
-----------
MANUFACTURER--1.16%
36,000 Unilever plc................................. 805,832
-----------
OIL, EXPLORATION & PRODUCTION--0.81%
138,000 LASMO plc.................................... 559,429
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- -----------
<C> <S> <C>
UNITED KINGDOM--(CONCLUDED)
OIL & GAS--1.02%
41,000 Shell Transportation & Trading Co............ $ 706,874
-----------
PHARMACEUTICALS--0.81%
35,000 Glaxo Wellcome plc........................... 560,247
-----------
RETAIL--0.53%
60,193 Safeway plc.................................. 368,430
-----------
RETAIL (ALL OTHER)--1.17%
102,000 Marks & Spencer plc.......................... 809,005
-----------
TELECOMMUNICATIONS--1.67%
89,000 British Telecommunications plc............... 608,925
73,000 Cable & Wireless plc......................... 543,903
-----------
1,152,828
-----------
TRANSPORTATION--0.75%
197,000 NFC plc...................................... 518,463
-----------
UTILITIES--0.88%
101,000 Scottish Power plc........................... 606,874
-----------
Total United Kingdom Common Stocks...................... 11,533,016
-----------
VENEZUELA--0.72%
UTILITIES--0.72%
17,800 Compania Anonima Nacl Tele De Venezuela
ADR........................................ 497,287
-----------
Total Common Stocks (cost--$58,545,073)................. 61,571,356
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C> <C>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
- ------------ -------------------- ----------------
LONG-TERM DEBT SECURITIES--0.29%
$ 205 MBL International Finance (cost--$226,675)... 11/30/02 3.000 % 200,644
------------
REPURCHASE AGREEMENT--13.01%
9,008 Repurchase Agreement dated 01/31/97 with
State Street Bank & Trust Company,
collateralized by $9,188,948 U.S. Treasury
Notes, 11.250% due 02/15/15; proceeds:
$9,011,566
(cost--$9,008,000)......................... 02/03/97 4.750 9,008,000
------------
Total Investments (cost--$67,779,748)--102.22%............. 70,780,000
Liabilities in excess of other assets--(2.22)%............. (1,536,134)
------------
Net Assets--100.00%........................................ $69,243,866
------------
------------
</TABLE>
- ---------------
* Non-income producing security
ADR American Depositary Receipt
ADS American Depositary Shares
GBP British Pounds
JPY Japanese Yen
48
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERNATIONAL EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT TO IN EXCHANGE MATURITY APPRECIATION
DELIVER FOR DATES (DEPRECIATION)
----------- --------------- --------- -------------
<S> <C> <C> <C> <C>
French Franc............................................... 1,025,911 U.S.$ 185,450 02/14/97 $ (319)
Japanese Yen............................................... 301,172,638 U.S.$ 2,737,000 02/14/97 248,521
Japanese Yen............................................... 243,608,634 U.S.$ 2,214,000 02/14/97 201,151
Japanese Yen............................................... 237,535,110 U.S.$ 2,000,835 02/14/97 38,170
Swedish Krona.............................................. 1,752,237 U.S.$ 242,273 02/14/97 211
U.S. Dollars............................................... 655,246 GBP 404,652 02/14/97 (6,868)
U.S. Dollars............................................... 2,536,832 JPY 301,172,638 02/14/97 (48,353)
U.S. Dollars............................................... 2,108,200 JPY 237,535,110 02/14/97 (145,535)
U.S. Dollars............................................... 2,051,994 JPY 243,608,634 02/14/97 (39,145)
-------------
$ 247,833
-------------
-------------
</TABLE>
See accompanying notes to financial statements
49
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
COMMON STOCKS--82.34%
ARGENTINA--4.72%
CONSUMER DURABLES--0.66%
48,700 CIADEA S.A. ................................. $ 250,880
-----------
CONSUMER NON-DURABLES--0.16%
5,570 Quilmes Industrial S.A. ADR.................. 59,878
-----------
ENERGY--0.51%
102,500 Astra Cia Argentina De Petroleo S.A., ARA
Class B.................................... 192,758
-----------
FINANCE--0.83%
12,900 Banco De Galicia y Buenos Aires S.A. de C.V.
ADR........................................ 316,050
-----------
MULTI-INDUSTRY--1.55%
78,770 Perez Companc S.A.
(cia Naviera) Class B...................... 588,588
-----------
SERVICES--1.01%
25,000 Telecom Argentina S.A. ...................... 117,785
88,500 Telefonica de Argentina S.A. ................ 267,350
-----------
385,135
-----------
Total Argentina Common Stocks............................. 1,793,289
-----------
AUSTRIA--0.85%
PHARMACEUTICALS--0.85%
5,300 Gedeon Richter............................... 322,202
-----------
BRAZIL--1.95%
ENERGY--0.69%
2,100,000 Cia Paulista de Forca e Luz.................. 261,074
-----------
SERVICES--1.26%
5,500 Telecomunicacoes Brasileiras S.A.-Telebras
ADR........................................ 479,875
-----------
Total Brazil Common Stocks................................ 740,949
-----------
CHILE--3.54%
FINANCE--1.14%
26,200 Banco Santander Chile ADR.................... 432,300
-----------
MATERIALS--0.57%
9,500 Administradora de Fundas de Pensiones
Providia S.A. ADR.......................... 218,500
-----------
SERVICES--1.83%
6,000 Compania Cervecerias Unidas S.A. ADR......... 99,750
14,450 Compania de Telecommunicaciones de Chile S.A.
ADR........................................ 359,444
8,800 Santa Isabel S.A. ADS*....................... 236,500
-----------
695,694
-----------
Total Chile Common Stocks................................. 1,346,494
-----------
CHINA--3.83%
ENERGY--3.37%
640,000 Guangdong Electric Power Development Company
Ltd........................................ 594,657
27,000 Huaneng Power International Inc. ADR*........ 573,750
314,000 Zhenhai Refining & Chemical Company Ltd...... 112,447
-----------
1,280,854
-----------
SERVICES--0.46%
1,055,000 China Eastern Airline........................ 176,821
-----------
Total China Common Stocks................................. 1,457,675
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
CROATIA--1.20%
CONSUMER DURABLES--0.76%
17,020 Pliva D.D. GDR*.............................. $ 289,340
-----------
FINANCE--0.44%
5,200 Zagrebacka Banka D.D. GDR.................... 165,750
-----------
Total Croatia Common Stocks............................... 455,090
-----------
CZECH REPUBLIC--0.69%
CAPITAL EQUIPMENT--0.33%
3,500 Skoda Plzen a.s.............................. 126,894
-----------
SERVICES--0.36%
1,100 SPT Telecom a.s.*............................ 134,722
-----------
Total Czech Republic Common Stocks........................ 261,616
-----------
EGYPT--0.53%
FINANCE--0.53%
10,000 Commercial International Bank GDR*........... 202,500
-----------
GREECE--0.55%
CONSUMER NON-DURABLES--0.28%
3,200 Hellenic Bottling Company S.A................ 106,949
-----------
FINANCE--0.27%
1,333 Alpha Credit Bank............................ 104,099
-----------
Total Greece Common Stocks................................ 211,048
-----------
HONG KONG--4.67%
CAPITAL EQUIPMENT--0.44%
56,000 New World Infrastructure Ltd................. 165,492
-----------
FINANCE--2.83%
1,000,000 China Resources Beijing...................... 587,173
130,000 China Resources Enterprises Ltd.............. 277,649
450,000 Guangzhou Investment Company Ltd............. 213,415
-----------
1,078,237
-----------
MULTI-INDUSTRY--1.39%
148,000 Cosco Pacific Ltd. .......................... 165,208
404,000 Guangdong Investments........................ 362,344
-----------
527,552
-----------
SERVICES--0.01%
8,653 GZI Transportation Ltd....................... 5,276
-----------
Total Hong Kong Common Stocks............................. 1,776,557
-----------
HUNGARY--0.46%
SERVICES--0.46%
4,000 Pannonplast.................................. 176,944
-----------
INDIA--6.38%
CAPITAL EQUIPMENT--0.22%
33,000 Crompton Greaves Ltd. GDR.................... 83,325
-----------
CONSUMER DURABLES--0.36%
8,000 Ranbaxy Laboratories Ltd..................... 138,243
-----------
ENERGY--2.26%
55,000 Bharat Petroleum Corporation Ltd............. 542,328
16,000 BSES Ltd. GDR................................ 317,600
-----------
859,928
-----------
FINANCE--1.43%
10,000 State Bank of India GDR...................... 187,150
</TABLE>
50
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
INDIA--(CONCLUDED)
FINANCE--(CONCLUDED)
47,000 State Bank of India.......................... $ 355,941
-----------
543,091
-----------
SERVICES--2.11%
6,500 The Indian Hotels Company Ltd. GDR*.......... 159,250
97,000 Mahanagar Telephone Nigam Ltd................ 643,285
-----------
802,535
-----------
Total India Common Stocks................................. 2,427,122
-----------
INDONESIA--6.65%
CAPITAL EQUIPMENT--0.02%
4,500 PT Indocement Tunggal Prakarsa............... 6,721
-----------
CONSUMER NON-DURABLES--2.61%
106,000 PT Gudang Garam.............................. 517,291
4,000 PT Hanjaya Mandala Sampoerna................. 25,074
204,000 PT Indofood Sukses Makmur.................... 450,567
-----------
992,932
-----------
FINANCE--1.98%
746,674 PT Bank International Indonesia.............. 573,277
130,000 PT Jaya Real Property........................ 180,480
-----------
753,757
-----------
MULTI-INDUSTRY--0.36%
39,000 PT Astra International....................... 137,821
-----------
SERVICES--1.68%
21,000 PT Indosat................................... 59,634
16,000 PT Perusahaan Persero Part Telekom ADR....... 580,000
-----------
639,634
-----------
Total Indonesia Common Stocks............................. 2,530,865
-----------
ISRAEL--2.78%
CONSUMER DURABLES--0.89%
6,200 Teva Pharmaceutical Industries Ltd. ADR...... 339,450
-----------
SERVICES--1.89%
7,000 Blue Square-Israel Ltd. ADR ................. 109,375
6,500 ECI Telecommunications Limited Designs....... 156,000
92,000 Supersol Ltd. ............................... 252,885
10,000 Tadiran Telecommunications Ltd............... 202,500
-----------
720,760
-----------
Total Israel Common Stocks................................ 1,060,210
-----------
MAURITIUS--0.36%
FINANCE--0.36%
250,000 State Bank of Mauritius Ltd. ................ 137,810
-----------
MEXICO--9.23%
CAPITAL EQUIPMENT--2.30%
15,100 Bufete Industrial S.A. ADR*.................. 320,875
36,000 Corporacion Industrial Sanluis S.A........... 204,899
20,000 Tubos de Acero de Mexico S.A. ADR*........... 350,000
-----------
875,774
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
MEXICO--(CONCLUDED)
CONSUMER NON-DURABLES--1.44%
78,000 Fomento Economico Mexicano S.A. de C.V.* .... $ 272,853
13,350 Kimberly-Clark de Mexico S.A. de C.V. ....... 276,613
-----------
549,466
-----------
FINANCE--0.41%
423,000 Grupo Financiero Bancomer S.A. de C.V.* ..... 154,733
-----------
MATERIALS--1.83%
107,400 Cemex S.A. de C.V............................ 403,858
69,000 Industrias Penoles S.A. de C.V............... 291,232
-----------
695,090
-----------
MULTI-INDUSTRY--0.67%
44,000 Desc-Sociedad de Fomento Industrial S.A. de
C.V........................................ 256,622
-----------
SERVICES--2.58%
282,000 Cifra S.A. de C.V............................ 374,388
47,400 Grupo Carso, S.A. de C.V. (Series A)*........ 288,880
8,500 Telefonos de Mexico, S.A. de C.V. ADR........ 319,813
-----------
983,081
-----------
Total Mexico Common Stocks................................ 3,514,766
-----------
PERU--0.28%
SERVICES--0.28%
5,000 CPT Telefonica del Peru S.A. ADR............. 108,125
-----------
PHILIPPINES--5.94%
ENERGY--1.04%
47,400 Manila Electric Co. Class B.................. 397,548
-----------
FINANCE--3.00%
341,000 Ayala Land Inc............................... 414,117
68,000 C & P Homes Inc.............................. 36,774
88,000 Fil-Estate Land Inc.......................... 79,317
22,250 Metropolitan Bank & Trust Co................. 607,970
8,000 SM Prime Holdings............................ 2,398
-----------
1,140,576
-----------
MATERIALS--0.19%
697,700 Southeast Asia Cement Holdings Inc........... 72,815
-----------
SERVICES--1.71%
7,500 Philippine Long Distance Telephone Co........ 453,985
49,800 Philippine Telegraph & Telephone Corp........ 35,909
40,000 San Miguel Corp.-Class B..................... 160,911
-----------
650,805
-----------
Total Philippines Common Stocks........................... 2,261,744
-----------
POLAND--2.32%
CAPITAL EQUIPMENT--0.87%
30,700 Bydgoska Fabryka Kabli S.A................... 189,222
10,900 Stomil Olsztyn S.A. ......................... 143,445
-----------
332,667
-----------
CONSUMER NON-DURABLES--0.52%
3,390 Zaklady Piwowarskie e Zywiec S.A.
(Zywiec) .................................. 197,651
-----------
</TABLE>
51
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
POLAND--(CONCLUDED)
FINANCE--0.55%
6,560 Bank Rozwoju Eksportu S.A. .................. $ 207,630
-----------
MATERIALS--0.38%
5,600 Gorazdze S.A. ............................... 145,527
-----------
Total Poland Common Stocks................................ 883,475
-----------
PORTUGAL--3.17%
CAPITAL EQUIPMENT--0.29%
9,400 Engil Sociedade de Constreao Civil, S.A...... 110,595
-----------
MATERIALS--1.01%
20,300 Semapa-Sociedade de Investimento e Gestao,
S.A........................................ 383,626
-----------
SERVICES--1.87%
3,000 Estabelecimentos Jeronimo Martins & Filho,
Sociedade Gestorade Participacoes Sociais,
S.A........................................ 171,909
3,000 Estabelecimentos Jeronimo Martins & Filho,
Sociedade Gestorade Participacoes Sociais,
S.A. (New Shares) ......................... 169,166
4,500 Portugal Telecom S.A......................... 155,816
3,000 Telecel-Comunicacoes Pessoai, S.A. .......... 214,521
-----------
711,412
-----------
Total Portugal Common Stocks.............................. 1,205,633
-----------
RUSSIA--0.79%
ENERGY--0.79%
14,900 Gazprom ADR*................................. 301,725
-----------
SOUTH AFRICA--5.95%
CONSUMER NON-DURABLES--0.81%
11,642 South African Breweries Ltd.................. 309,560
-----------
ENERGY--1.99%
74,000 Energy Africa Ltd............................ 332,675
37,060 Sasol Ltd. .................................. 424,646
-----------
757,321
-----------
MULTI-INDUSTRY--2.05%
7,325 Anglo American Industrial Corporation of
South Africa Ltd........................... 272,278
38,200 Barlow Ltd................................... 389,539
25,700 Malbak Ltd................................... 118,637
-----------
780,454
-----------
SERVICES--1.10%
64,300 Meikles Africa Ltd........................... 109,310
42,750 Primedia Ltd................................. 204,375
79,344 Waltons Stationery Company Ltd............... 104,400
-----------
418,085
-----------
Total South Africa Common Stocks.......................... 2,265,420
-----------
SOUTH KOREA--5.00%
CAPITAL EQUIPMENT--0.73%
5,500 L.G. Industrial Systems...................... 113,179
3,000 Samsung Display Devices Co................... 164,740
-----------
277,919
-----------
CONSUMER DURABLES--0.21%
1,431 Samsung Electronics Corp. ................... 77,919
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
SOUTH KOREA--(CONCLUDED)
ENERGY--1.38%
16,000 Korea Electric Power Corp. .................. $ 527,168
-----------
FINANCE--1.05%
13,000 Kookmin Bank GDR............................. 265,525
10,920 Shinhan Bank................................. 133,817
-----------
399,342
-----------
MATERIALS--0.49%
4,000 Pohang Iron & Steel Company Ltd. ADR......... 91,500
1,950 Pohang Iron & Steel Company Ltd.............. 96,260
-----------
187,760
-----------
SERVICES--1.14%
391 Korea Mobile Telecommunications Corp. ....... 242,736
2,456 L.G. Information and Communication Ltd....... 189,950
-----------
432,686
-----------
Total South Korea Common Stocks........................... 1,902,794
-----------
TAIWAN--3.87%
FINANCE--1.59%
30,000 R O C Taiwan Fund*........................... 326,250
12,000 Taiwan Fund Inc.............................. 280,500
-----------
606,750
-----------
MATERIALS--1.07%
22,000 Asia Cement Corp. GDR........................ 404,800
-----------
METALS & MINING--0.79%
16,000 China Steel Corp. GDS*....................... 301,600
-----------
SERVICES--0.42%
8,300 Evergreen Marine Corp. GDR*.................. 159,775
-----------
Total Taiwan Common Stocks................................ 1,472,925
-----------
THAILAND--5.07%
CAPITAL EQUIPMENT--0.18%
9,000 Alphatec Electronics Public Company Ltd...... 69,124
-----------
ENERGY--0.54%
81,500 Electricity Generating Public Company Ltd.... 204,458
-----------
FINANCE--2.04%
14,000 Bangkok Bank Public Company Ltd. ............ 121,034
45,000 Land and House Public Company Ltd............ 291,779
63,000 Thai Farmers Bank Public Company Ltd......... 364,724
-----------
777,537
-----------
SERVICES--2.31%
111,000 Siam Makro Public Company Ltd. .............. 488,383
80,000 TelecomAsia Corporation Public Company
Ltd.*...................................... 157,468
21,000 Total Access Communication Public Company
Ltd........................................ 148,050
13,300 United Communication Industry Public Company
Ltd........................................ 83,157
-----------
877,058
-----------
Total Thailand Common Stocks.............................. 1,928,177
-----------
</TABLE>
52
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
TURKEY--1.56%
CONSUMER DURABLES--0.36%
3,200,000 Eczacibasi Yapi Gerecleri Sanayi ve Ticaret
A.S. ...................................... $ 137,753
-----------
SERVICES--1.20%
187,088 Migros Turk T.A.S. .......................... 245,639
735,000 Northern Elektrik Telekomvaskayson A.S. ..... 211,989
-----------
457,628
-----------
Total Turkey Common Stocks................................ 595,381
-----------
Total Common Stock (cost--$28,404,904).................... 31,340,536
-----------
PREFERRED STOCKS--10.59%
BRAZIL--10.59%
CAPITAL EQUIPMENT--1.12%
377,885 Multibras S.A. Electrodomesticos............. 426,458
-----------
CONSUMER NON-DURABLES--0.53%
332,000 Cia Cervejaria Brahma........................ 201,943
-----------
ENERGY--3.54%
5,570,000 CESP Cia Energy Sao Paulo.................... 270,669
1,324,000 Centrais Electricas Brasileiras S.A.
(Electobras)............................... 559,686
2,690,000 Petrol Brasileiros-Petrobras................. 517,110
-----------
1,347,465
-----------
FINANCE--1.36%
36,300,000 Banco Bradesco S.A. ......................... 291,622
6,500,000 Uniuo de Bancos Brasileiros S.A.............. 226,903
-----------
518,525
-----------
MATERIALS--0.65%
150,000 Klabin Fabricadora........................... 130,547
103,000,000 Usinas Siderugicas de Minas Gerais S.A....... 117,225
-----------
247,772
-----------
MULTI-INDUSTRY--0.65%
323,000 Itausa Investmentos Itau S.A................. 247,131
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- -----------
<C> <S> <C>
BRAZIL--(CONCLUDED)
SERVICES--2.74%
6,590,000 Telecomunicacoes Brasileiras S.A.-Telebras... $ 574,167
2,000,000 Telecomunicacoes de Sao Paulo-Telesp......... 468,631
-----------
1,042,798
-----------
Total Brazil Preferred Stocks............................. 4,032,092
-----------
Total Preferred Stocks (cost--$3,047,849)................. 4,032,092
-----------
WARRANTS--0.07%
HONG KONG--0.00%
SERVICES--0.00%
1,730 GZI Transportation Ltd., warrant expiring
01/29/99; exercise price HKD 4.50
(cost--$345)............................... 486
-----------
INDONESIA--0.05%
FINANCE--0.05%
66,372 Bank International Indonesia, warrant
expiring 01/17/00; exercise price IDR 800
(cost--$12,158)............................ 19,546
-----------
PORTUGAL--0.01%
SERVICES--0.01%
500 Estabelecimentos Jeronimo Martins & Filho,
Sociedade Gestorade Participacoes Sociais,
S.A., warrant expiring 09/15/03; exercise
price
PTE 8,200 (cost--$1,697)................... 5,282
-----------
THAILAND--0.01%
FINANCE--0.01%
2,250 Thai Farmers Bank Public Company Ltd.,
warrant expiring 09/15/02; exercise price
THB 200 (cost--$2,224)..................... 1,520
-----------
Total Warrants (cost--$16,424)............................ 26,834
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE
- ---------- -------------- -----------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--7.55%
$2,875 Repurchase Agreement dated 01/31/97 with State Street
Bank & Trust Company, collateralized by $2,932,751
U.S. Treasury Notes, 11.250% due 02/15/15; proceeds:
$2,876,138 (cost-- $2,875,000)........................ 02/03/97 4.750 % 2,875,000
----------
Total Investments (cost--$34,344,177)--100.55%...................... 38,274,462
Liabilities in excess of other assets--(0.55)%...................... (209,212)
----------
Net Assets--100.00%................................................. $38,065,250
----------
----------
</TABLE>
- ---------------
* Non-income producing security
ADR American Depositary Receipt
ADS American Depositary Shares
GDR Global Depositary Receipt
GDS Global Depositary Shares
HKD Hong Kong Dollars
IDR Indonesia Rupiah
PTE Portuguese Escudo
THB Thailand Baht
See accompanying notes to financial statements
53
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
January 31, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACE
GOVERNMENT PACE PACE
PACE SECURITIES INTERMEDIATE STRATEGIC
MONEY MARKET FIXED INCOME FIXED INCOME FIXED INCOME
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost--$12,894,651; $110,163,815;
$50,014,706; $68,382,877;
$23,574,481; $40,594,232;
$107,996,477; $88,339,821;
$80,093,072; $79,194,269; $58,771,748
and $31,469,177, respectively)....... $12,894,651 1$10,513,413 $49,835,086 $68,492,822
Repurchase agreements, at value
(cost--$0; $3,124,000; $3,108,000;
$1,183,000; $0; $8,009,000;
$2,742,000; $5,835,000; $5,064,000;
$11,173,000; $9,008,000 and
$2,875,000, respectively)............ -- 3,124,000 3,108,000 1,183,000
------------- ------------ ------------ ------------
12,894,651 113,637,413 52,943,086 69,675,822
Cash (including cash denominated in
foreign currencies).................. 377 6,135 55,019 977
Receivable for investments sold....... -- 27,708,594 -- 952,850
Receivable for shares of beneficial
interest sold........................ 117,105 711,868 340,249 432,398
Receivable from investment adviser.... 12,210 -- -- --
Unrealized appreciation of forward
foreign currency contracts........... -- -- -- --
Dividends and interest receivable..... 99,353 329,022 862,525 306,095
Deferred organizational costs......... 67,429 67,429 67,429 67,429
Other assets.......................... 11,926 17,575 13,301 123,377
------------- ------------ ------------ ------------
Total assets.......................... 13,203,051 142,478,036 54,281,609 71,558,948
------------- ------------ ------------ ------------
LIABILITIES
Payable for shares of beneficial
interest repurchased................. 69,106 72,031 77,172 81,534
Dividends payable..................... 28,761 -- -- --
Payable for investments purchased..... 150,000 61,414,180 -- 12,063,412
Outstanding options written........... -- -- -- 8,771
Unrealized depreciation of forward
foreign currency contracts........... -- -- -- --
Payable to investment adviser......... -- 36,458 21,642 23,974
Accrued expenses and other
liabilities.......................... 78,195 50,123 181,416 115,521
------------- ------------ ------------ ------------
Total liabilities..................... 326,062 61,572,792 280,230 12,293,212
------------- ------------ ------------ ------------
NET ASSETS
Beneficial interest shares of $0.001
par value outstanding -- 12,876,987;
6,551,375; 4,474,219; 4,674,068;
1,976,253; 3,992,705; 7,777,291;
6,930,056; 6,700,615; 7,170,743;
5,235,503 and 2,847,289, respectively
(unlimited amount authorized)........ 12,876,989 79,928,405 54,157,154 58,913,786
Accumulated net investment income
(loss)............................... -- 328,596 247,848 256,463
Accumulated net realized gains
(losses) from investment
transactions......................... -- 291,395 (221,534) 164,677
Net unrealized appreciation
(depreciation) of investments and
other assets and liabilities
denominated in foreign currencies.... -- 356,848 (182,089) (69,190)
------------- ------------ ------------ ------------
Net assets............................ $12,876,989 $80,905,244 $54,001,379 $59,265,736
------------- ------------ ------------ ------------
------------- ------------ ------------ ------------
Net asset value, offering price and
redemption value per share............. $1.00 $12.35 $12.07 $12.68
------------- ------------ ------------ ------------
------------- ------------ ------------ ------------
</TABLE>
54
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACE PACE
PACE PACE PACE PACE SMALL/MEDIUM SMALL/MEDIUM
MUNICIPAL GLOBAL FIXED LARGE COMPANY LARGE COMPANY COMPANY VALUE COMPANY
FIXED INCOME INCOME VALUE EQUITY GROWTH EQUITY EQUITY GROWTH EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
------------ ------------ -------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost--$12,894,651; $110,163,815;
$50,014,706; $68,382,877;
$23,574,481; $40,594,232;
$107,996,477; $88,339,821;
$80,093,072; $79,194,269; $58,771,748
and $31,469,177, respectively)....... $23,909,460 $39,593,330 $125,062,742 $107,275,293 $92,822,913 $83,359,527
Repurchase agreements, at value
(cost--$0; $3,124,000; $3,108,000;
$1,183,000; $0; $8,009,000;
$2,742,000; $5,835,000; $5,064,000;
$11,173,000; $9,008,000 and
$2,875,000, respectively)............ -- 8,009,000 2,742,000 5,835,000 5,064,000 11,173,000
------------ ------------ -------------- -------------- ------------- -------------
23,909,460 47,602,330 127,804,742 113,110,293 97,886,913 94,532,527
Cash (including cash denominated in
foreign currencies).................. 401,850 281,349 452 765 931 1,279,011
Receivable for investments sold....... -- 4,288,992 340,208 389,293 -- 11,925,920
Receivable for shares of beneficial
interest sold........................ 86,369 408,440 918,855 849,936 605,761 654,094
Receivable from investment adviser.... -- -- -- -- -- --
Unrealized appreciation of forward
foreign currency contracts........... -- 660,887 -- -- -- --
Dividends and interest receivable..... 316,094 699,888 100,349 25,910 91,367 7,066
Deferred organizational costs......... 67,429 67,429 67,429 67,429 67,429 67,429
Other assets.......................... 20,958 80,505 11,518 19,112 16,201 21,303
------------ ------------ -------------- -------------- ------------- -------------
Total assets.......................... 24,802,160 54,089,820 129,243,553 114,462,738 98,668,602 108,487,350
------------ ------------ -------------- -------------- ------------- -------------
LIABILITIES
Payable for shares of beneficial
interest repurchased................. 28,299 56,372 129,687 115,302 124,764 132,880
Dividends payable..................... -- -- -- -- -- --
Payable for investments purchased..... 48,928 4,674,568 561,611 1,050,012 -- 13,747,375
Outstanding options written........... -- -- -- -- -- --
Unrealized depreciation of forward
foreign currency contracts........... -- 668,371 -- -- -- --
Payable to investment adviser......... 81 19,411 81,172 68,789 56,354 57,319
Accrued expenses and other
liabilities.......................... 88,610 76,712 154,052 72,202 150,571 101,164
------------ ------------ -------------- -------------- ------------- -------------
Total liabilities..................... 165,918 5,495,434 926,522 1,306,305 331,689 14,038,738
------------ ------------ -------------- -------------- ------------- -------------
NET ASSETS
Beneficial interest shares of $0.001
par value outstanding -- 24,241,997 49,223,305 109,102,884 93,960,073 83,526,403 86,028,253
Accumulated net investment income
(loss)............................... 95,684 113,306 53,687 (67,100) 118,676 (122,244)
Accumulated net realized gains
(losses) from investment
transactions......................... (36,418) 315,140 2,060,988 327,988 1,961,993 4,377,345
Net unrealized appreciation
(depreciation) of investments and
other assets and liabilities
denominated in foreign currencies.... 334,979 (1,057,365) 17,099,472 18,935,472 12,729,841 4,165,258
------------ ------------ -------------- -------------- ------------- -------------
Net assets............................ $24,636,242 $48,594,386 $128,317,031 $113,156,433 $98,336,913 $94,448,612
------------ ------------ -------------- -------------- ------------- -------------
------------ ------------ -------------- -------------- ------------- -------------
Net asset value, offering price and
redemption value per share.............. $12.47 $12.17 $16.50 $16.33 $14.68 $13.17
------------ ------------ -------------- -------------- ------------- -------------
------------ ------------ -------------- -------------- ------------- -------------
<CAPTION>
PACE
PACE INTERNATIONAL
INTERNATIONAL EMERGING MARKETS
EQUITY EQUITY
INVESTMENTS INVESTMENTS
------------ -----------------
<S> <C> <C>
ASSETS
Investments, at value
(cost--$12,894,651; $110,163,815;
$50,014,706; $68,382,877;
$23,574,481; $40,594,232;
$107,996,477; $88,339,821;
$80,093,072; $79,194,269; $58,771,748
and $31,469,177, respectively)....... $61,772,000 $35,399,462
Repurchase agreements, at value
(cost--$0; $3,124,000; $3,108,000;
$1,183,000; $0; $8,009,000;
$2,742,000; $5,835,000; $5,064,000;
$11,173,000; $9,008,000 and
$2,875,000, respectively)............ 9,008,000 2,875,000
------------ -----------------
70,780,000 38,274,462
Cash (including cash denominated in
foreign currencies).................. 459,290 279,437
Receivable for investments sold....... 1,517,052 292,146
Receivable for shares of beneficial
interest sold........................ 621,726 305,277
Receivable from investment adviser.... -- --
Unrealized appreciation of forward
foreign currency contracts........... 488,053 --
Dividends and interest receivable..... 76,390 22,144
Deferred organizational costs......... 67,429 67,429
Other assets.......................... 60,177 49,600
------------ -----------------
Total assets.......................... 74,070,117 39,290,495
------------ -----------------
LIABILITIES
Payable for shares of beneficial
interest repurchased................. 75,665 43,901
Dividends payable..................... -- --
Payable for investments purchased..... 4,349,289 1,015,729
Outstanding options written........... -- --
Unrealized depreciation of forward
foreign currency contracts........... 240,220 --
Payable to investment adviser......... 50,879 14,219
Accrued expenses and other
liabilities.......................... 110,198 151,396
------------ -----------------
Total liabilities..................... 4,826,251 1,225,245
------------ -----------------
NET ASSETS
Beneficial interest shares of $0.001
par value outstanding -- 67,040,038 35,466,485
Accumulated net investment income
(loss)............................... (207,509) (84,428)
Accumulated net realized gains
(losses) from investment
transactions......................... (850,625) (1,214,467)
Net unrealized appreciation
(depreciation) of investments and
other assets and liabilities
denominated in foreign currencies.... 3,261,962 3,897,660
------------ -----------------
Net assets............................ $69,243,866 $38,065,250
------------ -----------------
------------ -----------------
Net asset value, offering price and
redemption value per share.............. $13.23 $13.37
------------ -----------------
------------ -----------------
</TABLE>
See accompanying notes to financial statements
55
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended January 31, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACE
GOVERNMENT PACE PACE
PACE SECURITIES INTERMEDIATE STRATEGIC
MONEY MARKET FIXED INCOME FIXED INCOME FIXED INCOME
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding
taxes, if any)....................... $323,196 $2,086,761 $1,565,618 $1,630,210
Dividends (net of foreign withholding
taxes, if any)....................... -- -- -- --
------------- ------------ ------------ ------------
323,196 2,086,761 1,565,618 1,630,210
------------- ------------ ------------ ------------
EXPENSES:
Investment advisory and administration
fees................................. 20,878 244,299 143,140 179,584
Transfer agency fees and expenses..... 31,048 22,267 24,344 24,337
Trustees' fees and expenses........... 16,250 16,250 16,250 16,250
Federal and state registration fees... 12,966 11,138 13,724 11,231
Custody and accounting................ 591 20,756 14,606 15,219
Amortization of organizational
expenses............................. 9,568 9,568 9,568 9,568
Legal and audit....................... 15,403 16,200 16,718 25,582
Reports and notices to shareholders... 8,856 8,851 13,050 19,205
Other expenses........................ 5,372 5,081 4,000 2,909
------------- ------------ ------------ ------------
120,932 354,410 255,400 303,885
Less: Fee waivers and expense
reimbursements
from investment adviser......... (91,298) (57,441) (52,408) (85,607)
------------- ------------ ------------ ------------
Net expenses.......................... 29,634 296,969 202,992 218,278
------------- ------------ ------------ ------------
Net investment income (loss).......... 293,562 1,789,792 1,362,626 1,411,932
------------- ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS (LOSSES)
FROM INVESTMENT TRANSACTIONS:
Net realized gains (losses) from:
Investment transactions............. 360 1,194,675 (158,423) 874,583
Foreign currency transactions....... -- -- (2,307) --
Net change in unrealized
appreciation/depreciation of:
Investments......................... -- 514,503 536,303 345,993
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- (3,096) (17,250)
------------- ------------ ------------ ------------
Net realized and unrealized gains
(losses) from investment
transactions......................... 360 1,709,178 372,477 1,203,326
------------- ------------ ------------ ------------
Net increase in net assets resulting
from operations...................... $293,922 $ 3,498,970 $ 1,735,103 $ 2,615,258
------------- ------------ ------------ ------------
------------- ------------ ------------ ------------
</TABLE>
56
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACE PACE
PACE PACE PACE PACE SMALL/MEDIUM SMALL/MEDIUM
MUNICIPAL GLOBAL FIXED LARGE COMPANY LARGE COMPANY COMPANY VALUE COMPANY
FIXED INCOME INCOME VALUE EQUITY GROWTH EQUITY EQUITY GROWTH EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
------------- ------------ -------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding
taxes, if any)....................... $ 624,144 $1,391,408 $ 64,731 $ 70,907 $ 122,413 $ 223,932
Dividends (net of foreign withholding
taxes, if any)....................... -- -- 887,969 477,898 714,061 51,692
------------- ------------ -------------- -------------- ------------- -------------
624,144 1,391,408 952,700 548,805 836,474 275,624
------------- ------------ -------------- -------------- ------------- -------------
EXPENSES:
Investment advisory and administration
fees................................. 62,689 177,912 421,143 370,714 325,278 318,762
Transfer agency fees and expenses..... 19,123 26,478 44,676 32,762 50,365 29,807
Trustees' fees and expenses........... 16,250 16,250 16,250 16,250 16,250 16,250
Federal and state registration fees... 11,195 9,867 16,733 8,914 14,436 11,201
Custody and accounting................ 6,272 31,812 32,112 28,550 25,328 24,657
Amortization of organizational
expenses............................. 9,568 9,568 9,568 9,568 9,568 9,568
Legal and audit....................... 20,567 9,332 31,199 21,900 27,061 21,226
Reports and notices to shareholders... 12,004 7,400 15,561 8,743 18,902 14,495
Other expenses........................ 2,111 5,485 8,472 907 8,602 749
------------- ------------ -------------- -------------- ------------- -------------
159,779 294,104 595,714 498,308 495,790 446,715
Less: Fee waivers and expense
reimbursements
from (70,844) (82,989) (69,425) (34,185) (89,054) (47,716)
------------- ------------ -------------- -------------- ------------- -------------
Net expenses.......................... 88,935 211,115 526,289 464,123 406,736 398,999
------------- ------------ -------------- -------------- ------------- -------------
Net investment income (loss).......... 535,209 1,180,293 426,411 84,682 429,738 (123,375)
------------- ------------ -------------- -------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES)
FROM INVESTMENT TRANSACTIONS:
Net realized gains (losses) from:
Investment transactions............. 2,615 993,099 4,688,343 1,279,658 2,717,586 5,783,468
Foreign currency transactions....... -- (238,565) -- -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments......................... 265,044 (1,356,352) 15,929,001 16,918,026 13,570,676 6,789,859
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- (85,165) 34 -- -- --
------------- ------------ -------------- -------------- ------------- -------------
Net realized and unrealized gains
(losses) from investment
transactions......................... 267,659 (686,983) 20,617,378 18,197,684 16,288,262 12,573,327
------------- ------------ -------------- -------------- ------------- -------------
Net increase in net assets resulting
from operations...................... $ 802,868 $ 493,310 $ 21,043,789 $ 18,282,366 $16,718,000 $12,449,952
------------- ------------ -------------- -------------- ------------- -------------
------------- ------------ -------------- -------------- ------------- -------------
<CAPTION>
PACE
PACE INTERNATIONAL
INTERNATIONAL EMERGING MARKETS
EQUITY EQUITY
INVESTMENTS INVESTMENTS
------------ -----------------
<S> <C> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding
taxes, if any)....................... $ 138,928 $ 35,092
Dividends (net of foreign withholding
taxes, if any)....................... 354,348 135,508
------------ -----------------
493,276 170,600
------------ -----------------
EXPENSES:
Investment advisory and administration
fees................................. 257,209 168,456
Transfer agency fees and expenses..... 29,273 34,422
Trustees' fees and expenses........... 16,250 16,250
Federal and state registration fees... 9,552 4,275
Custody and accounting................ 46,069 53,164
Amortization of organizational
expenses............................. 9,568 9,568
Legal and audit....................... 15,177 31,744
Reports and notices to shareholders... 8,124 20,608
Other expenses........................ 3,667 3,921
------------ -----------------
394,889 342,408
Less: Fee waivers and expense
reimbursements
from (1,629) (112,661)
------------ -----------------
Net expenses.......................... 393,260 229,747
------------ -----------------
Net investment income (loss).......... 100,016 (59,147)
------------ -----------------
REALIZED AND UNREALIZED GAINS (LOSSES)
FROM INVESTMENT TRANSACTIONS:
Net realized gains (losses) from:
Investment transactions............. (1,269,093) (1,036,748)
Foreign currency transactions....... 425,508 (21,831)
Net change in unrealized
appreciation/depreciation of:
Investments......................... 3,231,577 3,615,309
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. 67,316 (19,746)
------------ -----------------
Net realized and unrealized gains
(losses) from investment
transactions......................... 2,455,308 2,536,984
------------ -----------------
Net increase in net assets resulting
from operations...................... $2,555,324 $ 2,477,837
------------ -----------------
------------ -----------------
</TABLE>
See accompanying notes to financial statements
57
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACE
PACE GOVERNMENT SECURITIES FIXED
MONEY MARKET INVESTMENTS INCOME INVESTMENTS
------------------------------ ------------------------------
FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE
ENDED PERIOD ENDED PERIOD
JANUARY 31, ENDED JANUARY 31, ENDED
1997 JULY 31, 1997 JULY 31,
(UNAUDITED) 1996+ (UNAUDITED) 1996+
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income................. $ 293,562 $ 281,529 $ 1,789,792 $ 1,585,960
Net realized gains (losses) from:
Investment transactions............. 360 259 1,194,675 (544,963)
Foreign currency transactions....... -- -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments......................... -- -- 514,503 (157,655)
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- -- --
--------------- ------------- --------------- -------------
Net increase in net assets resulting
from operations...................... 293,922 281,788 3,498,970 883,342
--------------- ------------- --------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (293,562) (281,529) (1,710,877) (1,336,279)
Net realized gains from investment
transactions......................... (619) -- (336,399) (21,918)
--------------- ------------- --------------- -------------
(294,181) (281,529) (2,047,276) (1,358,197)
--------------- ------------- --------------- -------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 5,422,021 13,137,911 24,802,147 64,648,903
Cost of shares repurchased............ (3,049,687) (3,184,468) (6,124,402) (6,772,705)
Proceeds from dividends reinvested.... 283,790 255,422 2,023,528 1,342,934
--------------- ------------- --------------- -------------
Net increase in net assets derived
from beneficial
interest transactions................ 2,656,124 10,208,865 20,701,273 59,219,132
--------------- ------------- --------------- -------------
Net increase in net assets............ 2,655,865 10,209,124 22,152,967 58,744,277
NET ASSETS:
Beginning of period................... 10,221,124 12,000 58,752,277 8,000
--------------- ------------- --------------- -------------
End of period......................... $12,876,989 $10,221,124 $80,905,244 $58,752,277
--------------- ------------- --------------- -------------
--------------- ------------- --------------- -------------
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
58
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACE PACE PACE
INTERMEDIATE FIXED INCOME STRATEGIC FIXED INCOME MUNICIPAL FIXED INCOME
INVESTMENTS INVESTMENTS INVESTMENTS
------------------------------ ------------------------------ ------------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE MONTHS FOR THE
ENDED PERIOD ENDED PERIOD ENDED PERIOD
JANUARY 31, ENDED JANUARY 31, ENDED JANUARY 31, ENDED
1997 JULY 31, 1997 JULY 31, 1997 JULY 31,
(UNAUDITED) 1996+ (UNAUDITED) 1996+ (UNAUDITED) 1996+
--------------- ------------- --------------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income............ $ 1,362,626 $ 1,281,154 $ 1,411,932 $ 1,287,189 $ 535,209 $ 475,157
Net realized gains (losses) from:
Investment transactions........ (158,423) (59,871) 874,583 (265,689) 2,615 21,457
Foreign currency
transactions.................. (2,307) -- -- (101) -- --
Net change in unrealized
appreciation/depreciation of:
Investments.................... 536,303 (715,930) 345,993 (397,886) 265,044 69,935
Other assets, liabilities and
forward contracts denominated
in foreign currencies......... (3,096) 634 (17,250) (47) -- --
--------------- ------------- --------------- ------------- --------------- -------------
Net increase in net assets
resulting from operations....... 1,735,103 505,987 2,615,258 623,466 802,868 566,549
--------------- ------------- --------------- ------------- --------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income............ (1,310,718) (1,084,542) (1,364,211) (1,073,318) (513,341) (401,342)
Net realized gains from
investment transactions......... -- (1,605) (433,240) (16,005) (58,851) (1,638)
--------------- ------------- --------------- ------------- --------------- -------------
(1,310,718) (1,086,147) (1,797,451) (1,089,323) (572,192) (402,980)
--------------- ------------- --------------- ------------- --------------- -------------
FROM BENEFICIAL INTEREST
TRANSACTIONS:
Net proceeds from the sale of
shares.......................... 15,887,195 46,296,354 18,777,215 46,496,942 7,877,377 18,980,590
Cost of shares repurchased....... (4,868,252) (5,521,723) (4,657,698) (4,565,887) (1,793,165) (1,780,463)
Proceeds from dividends
reinvested...................... 1,285,428 1,070,152 1,778,597 1,076,617 556,303 393,355
--------------- ------------- --------------- ------------- --------------- -------------
Net increase in net assets
derived from beneficial
interest transactions........... 12,304,371 41,844,783 15,898,114 43,007,672 6,640,515 17,593,482
--------------- ------------- --------------- ------------- --------------- -------------
Net increase in net assets....... 12,728,756 41,264,623 16,715,921 42,541,815 6,871,191 17,757,051
NET ASSETS:
Beginning of period.............. 41,272,623 8,000 42,549,815 8,000 17,765,051 8,000
--------------- ------------- --------------- ------------- --------------- -------------
End of period.................... $54,001,379 $41,272,623 $59,265,736 $42,549,815 $24,636,242 $17,765,051
--------------- ------------- --------------- ------------- --------------- -------------
--------------- ------------- --------------- ------------- --------------- -------------
<CAPTION>
PACE
GLOBAL FIXED INCOME
INVESTMENTS
--------------------------
FOR THE SIX
MONTHS FOR THE
ENDED PERIOD
JANUARY 31, ENDED
1997 JULY 31,
(UNAUDITED) 1996+
----------- -------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income............ $1,180,293 $ 1,159,866
Net realized gains (losses) from:
Investment transactions........ 993,099 (109,897)
Foreign currency
transactions.................. (238,565 ) (333,354)
Net change in unrealized
appreciation/depreciation of:
Investments.................... (1,356,352 ) 355,450
Other assets, liabilities and
forward contracts denominated
in foreign currencies......... (85,165 ) 28,702
----------- -------------
Net increase in net assets
resulting from operations....... 493,310 1,100,767
----------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income............ (941,984 ) (954,517)
Net realized gains from
investment transactions......... (320,299 ) (6,196)
----------- -------------
(1,262,283 ) (960,713)
----------- -------------
FROM BENEFICIAL INTEREST
TRANSACTIONS:
Net proceeds from the sale of
shares.......................... 13,953,896 45,114,536
Cost of shares repurchased....... (4,135,258 ) (7,920,148)
Proceeds from dividends
reinvested...................... 1,249,038 953,241
----------- -------------
Net increase in net assets
derived from beneficial
interest transactions........... 11,067,676 38,147,629
----------- -------------
Net increase in net assets....... 10,298,703 38,287,683
NET ASSETS:
Beginning of period.............. 38,295,683 8,000
----------- -------------
End of period.................... $48,594,386 $38,295,683
----------- -------------
----------- -------------
</TABLE>
See accompanying notes to financial statements
59
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACE PACE
LARGE COMPANY VALUE LARGE COMPANY GROWTH
EQUITY INVESTMENTS EQUITY INVESTMENTS
------------------------------ ------------------------------
FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE
ENDED PERIOD ENDED PERIOD
JANUARY 31, ENDED JANUARY 31, ENDED
1997 JULY 31, 1997 JULY 31,
(UNAUDITED) 1996+ (UNAUDITED) 1996+
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss).......... $ 426,411 $ 534,255 $ 84,682 $ 115,980
Net realized gains (losses) from:
Investment transactions............. 4,688,343 2,023,865 1,279,658 (951,670)
Foreign currency transactions....... -- -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments......................... 15,929,001 1,170,464 16,918,026 2,017,446
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. 34 (27) -- --
--------------- ------------- --------------- -------------
Net increase (decrease) in net assets
resulting from operations............ 21,043,789 3,728,557 18,282,366 1,181,756
--------------- ------------- --------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (775,005) (131,974) (226,897) (40,865)
Net realized gains from investment
transactions......................... (4,599,545) (51,675) -- --
--------------- ------------- --------------- -------------
(5,374,550) (183,649) (226,897) (40,865)
--------------- ------------- --------------- -------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 35,759,986 86,420,710 33,682,379 74,971,178
Cost of shares repurchased............ (9,327,314) (9,259,029) (8,054,391) (6,912,342)
Proceeds from dividends reinvested.... 5,318,346 182,185 224,739 40,510
--------------- ------------- --------------- -------------
Net increase in net assets derived
from beneficial
interest transactions................ 31,751,018 77,343,866 25,852,727 68,099,346
--------------- ------------- --------------- -------------
Net increase in net assets............ 47,420,257 80,888,774 43,908,196 69,240,237
NET ASSETS:
Beginning of period................... 80,896,774 8,000 69,248,237 8,000
--------------- ------------- --------------- -------------
End of period......................... $ 128,317,031 $80,896,774 $ 113,156,433 $69,248,237
--------------- ------------- --------------- -------------
--------------- ------------- --------------- -------------
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
60
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACE PACE PACE
SMALL/MEDIUM COMPANY SMALL/MEDIUM COMPANY GROWTH INTERNATIONAL EQUITY
VALUE EQUITY INVESTMENTS EQUITY INVESTMENTS INVESTMENTS
------------------------------ ------------------------------ ------------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE MONTHS FOR THE
ENDED PERIOD ENDED PERIOD ENDED PERIOD
JANUARY 31, ENDED JANUARY 31, ENDED JANUARY 31, ENDED
1997 JULY 31, 1997 JULY 31, 1997 JULY 31,
(UNAUDITED) 1996+ (UNAUDITED) 1996+ (UNAUDITED) 1996+
--------------- ------------- --------------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss)..... $ 429,738 $ 402,412 $ (123,375) $ (55,641) $ 100,016 $ 286,456
Net realized gains (losses) from:
Investment transactions........ 2,717,586 1,375,163 5,783,468 (1,406,123) (1,269,093) 348,907
Foreign currency
transactions.................. -- -- -- -- 425,508 65,353
Net change in unrealized
appreciation/depreciation of:
Investments.................... 13,570,676 (840,835) 6,789,859 (2,624,601) 3,231,577 (231,325)
Other assets, liabilities and
forward contracts denominated
in foreign currencies......... -- -- -- -- 67,316 194,394
--------------- ------------- --------------- ------------- --------------- -------------
Net increase (decrease) in net
assets resulting from
operations...................... 16,718,000 936,740 12,449,952 (4,086,365) 2,555,324 663,785
--------------- ------------- --------------- ------------- --------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income............ (607,087) (106,387) -- (43,687) (592,454) (66,880)
Net realized gains from
investment transactions......... (2,130,756) -- -- -- (355,947) --
--------------- ------------- --------------- ------------- --------------- -------------
(2,737,843) (106,387) -- (43,687) (948,401) (66,880)
--------------- ------------- --------------- ------------- --------------- -------------
FROM BENEFICIAL INTEREST
TRANSACTIONS:
Net proceeds from the sale of
shares.......................... 25,276,183 76,414,917 26,113,667 81,509,326 25,870,393 48,735,143
Cost of shares repurchased....... (7,529,695) (13,464,534) (7,479,359) (14,066,285) (4,505,125) (4,075,938)
Proceeds from dividends
reinvested...................... 2,715,942 105,590 -- 43,363 941,111 66,454
--------------- ------------- --------------- ------------- --------------- -------------
Net increase in net assets
derived from beneficial
interest transactions........... 20,462,430 63,055,973 18,634,308 67,486,404 22,306,379 44,725,659
--------------- ------------- --------------- ------------- --------------- -------------
Net increase in net assets....... 34,442,587 63,886,326 31,084,260 63,356,352 23,913,302 45,322,564
NET ASSETS:
Beginning of period.............. 63,894,326 8,000 63,364,352 8,000 45,330,564 8,000
--------------- ------------- --------------- ------------- --------------- -------------
End of period.................... $98,336,913 $63,894,326 $94,448,612 $63,364,352 $69,243,866 $45,330,564
--------------- ------------- --------------- ------------- --------------- -------------
--------------- ------------- --------------- ------------- --------------- -------------
<CAPTION>
PACE
INTERNATIONAL EMERGING
MARKETS EQUITY INVESTMENTS
---------------------------
FOR THE SIX
MONTHS FOR THE
ENDED PERIOD
JANUARY 31, ENDED
1997 JULY 31,
(UNAUDITED) 1996+
----------- -------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss)..... $ (59,147 ) $ 129,072
Net realized gains (losses) from:
Investment transactions........ (1,036,748 ) (155,888)
Foreign currency
transactions.................. (21,831 ) (33,045)
Net change in unrealized
appreciation/depreciation of:
Investments.................... 3,615,309 314,976
Other assets, liabilities and
forward contracts denominated
in foreign currencies......... (19,746 ) (12,879)
----------- -------------
Net increase (decrease) in net
assets resulting from
operations...................... 2,477,837 242,236
----------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income............ (106,808 ) (14,500)
Net realized gains from
investment transactions......... -- --
----------- -------------
(106,808 ) (14,500)
----------- -------------
FROM BENEFICIAL INTEREST
TRANSACTIONS:
Net proceeds from the sale of
shares.......................... 12,661,346 28,516,539
Cost of shares repurchased....... (2,554,469 ) (3,285,267)
Proceeds from dividends
reinvested...................... 105,920 14,416
----------- -------------
Net increase in net assets
derived from beneficial
interest transactions........... 10,212,797 25,245,688
----------- -------------
Net increase in net assets....... 12,583,826 25,473,424
NET ASSETS:
Beginning of period.............. 25,481,424 8,000
----------- -------------
End of period.................... $38,065,250 $25,481,424
----------- -------------
----------- -------------
</TABLE>
See accompanying notes to financial statements
61
<PAGE>
Managed Accounts Services Portfolio Trust
Notes to Financial Statements (unaudited)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Managed Accounts Services Portfolio Trust (the "Trust") is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended, as an open-end management investment company currently composed of
twelve separate investment portfolios and was organized as a Delaware business
trust under the laws of the State of Delaware by Certificate of Trust dated
September 9, 1994, as amended June 9, 1995. The trustees of the Trust have
authority to issue an unlimited number of shares of beneficial interest, par
value $0.001 per share.
The Trust has twelve Portfolios of shares available for investment, each having
its own investment objectives and policies: PACE Money Market Investments, PACE
Government Securities Fixed Income Investments, PACE Intermediate Fixed Income
Investments, PACE Strategic Fixed Income Investments, PACE Municipal Fixed
Income Investments, PACE Global Fixed Income Investments, PACE Large Company
Value Equity Investments, PACE Large Company Growth Equity Investments, PACE
Small/Medium Company Value Equity Investments, PACE Small/Medium Company Growth
Equity Investments, PACE International Equity Investments and PACE International
Emerging Markets Equity Investments (collectively referred to as the
"Portfolios").
All Portfolios are diversified with the exception of PACE Intermediate Fixed
Income Investments and PACE Global Fixed Income Investments. Shares of the
Portfolios currently are available only to participants in the PaineWebber
PACE-SM- Program.
ORGANIZATIONAL MATTERS--Prior to June 16, 1995, the Trust had no activities
other than organizational matters and activities related to the initial public
offering and issuance, at net asset value, of 19,337 shares of beneficial
interest of the Trust for a total of $100,000 to Mitchell Hutchins Asset
Management Inc. ("Mitchell Hutchins"), a wholly owned subsidiary of PaineWebber
Incorporated ("PaineWebber"). The Trust incurred costs of approximately
$1,138,000 in connection with the organization of the Trust and the registration
of its shares. Such costs have been deferred and are being amortized using the
straight-line method over the period of benefit, not to exceed five years,
beginning with the commencement of operations of the Trust.
The preparation of financial statements in accordance with generally accepted
accounting principles requires the Trust's 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 or by the
applicable sub-adviser as the primary market for each Portfolio. Securities
traded in the over-the-counter ("OTC") market and listed on The Nasdaq Stock
Market, Inc. ("Nasdaq") are valued at the last available trade price on Nasdaq
prior to the time of valuation; other OTC securities are valued at the last bid
price available prior to valuation. The amortized cost method of valuation,
which approximates market value, is used to value debt obligations with sixty
days or less remaining to maturity unless the Trust's board of trustees
determines that this does not represent fair value. Securities and assets for
which market quotations are not readily available are valued at fair value as
determined in good faith by or under the direction of the Trust's board of
trustees. Investments made by PACE Money Market Investments are valued at
amortized cost which approximates market value.
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 the Portfolios' custodian, unless the board of
trustees 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 the Portfolios' net asset value. If events materially
affecting the value of such investments or currency exchange rates occur during
such time period, the securities will be valued at their fair value as
determined in good faith by or under the direction of the Trust's board of
trustees.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
recorded on the trade date. Realized gains and losses from investment
transactions and foreign exchange transactions are calculated using the
identified cost basis. Dividend income and other distributions are recorded on
the ex-dividend date ("ex-date") (except for certain dividends from foreign
securities that are recorded as soon after the ex-date as the respective
Portfolio, 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.
FOREIGN CURRENCY TRANSLATION--The books and records of the Portfolios are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities and other assets and liabilities stated in foreign
currencies are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the rate
of exchange prevailing on the respective dates of such transactions. The
resulting exchange gains and losses are included in the Statement of Operations.
The Portfolios do not generally isolate the effect of fluctuations in foreign
exchange rates from the effects of fluctuations in the market price of
investment securities. However, the Portfolios do isolate the effect of
fluctuations in foreign exchange rates when determining the realized gain or
loss upon the sale or maturity of foreign currency-denominated debt obligations
pursuant to U.S. federal income tax regulations; such amount is categorized as
foreign exchange gain or loss for both financial reporting and income tax
purposes.
Net realized foreign currency gain (loss) is treated as ordinary income for
income tax reporting purposes.
FORWARD FOREIGN CURRENCY CONTRACTS--Certain Portfolios may enter into forward
foreign currency exchange contracts ("forward contracts") in connection with
planned purchases or sales of securities to hedge the U.S. dollar value of
portfolio securities denominated in a particular currency. These Portfolios may
also engage in cross-hedging by using forward contracts in one currency to hedge
fluctuations in the value of securities denominated in a different currency if
Mitchell Hutchins, or the applicable sub-adviser, anticipates that there is a
correlation between the two currencies. Forward contracts may also be used to
shift a Portfolio's exposure to foreign currency fluctuations from one country
to another.
The Portfolios have no specific limitation on the percentage of assets which may
be committed to such contracts; however, the value of all forward contracts will
not exceed the total market value of a Portfolio's total assets. The Portfolios
may enter into forward contracts or maintain a net exposure to forward contracts
only if (1) the consummation of the contracts would not obligate the Portfolio
to deliver an amount of foreign currency in excess of the value of the positions
being hedged by such contracts or (2) the Portfolios maintain cash, U.S.
government securities or liquid, high-grade debt securities in a segregated
account in an amount not less than the value of the Portfolio's total assets
committed to the consummation of the forward contracts and not covered as
provided in (1) above, as marked-to-market daily.
Risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar.
63
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Managed Accounts Services Portfolio Trust
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- --------------------------------------------------------------------------------
Fluctuations in the value of open forward contracts are recorded for book
purposes as unrealized gains or losses by the Portfolios. Realized gains and
losses include net gains or losses recognized by the Portfolio on contracts
which have matured.
OPTION WRITING--Certain Portfolios may write (sell) put and call options in
order to gain exposure to or protect against changes in the markets. When a
Portfolio writes a call or a put option, an amount equal to the premium received
by the Portfolio is included in the Portfolio's Statement of Assets and
Liabilities as an asset and as an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market value
of the option written. If an option which the Portfolio has written either
expires on its stipulated expiration date or the Portfolio enters into a closing
purchase transaction, the Portfolio realizes a gain (or loss if the cost of a
closing purchase transaction exceeds the premium received when the option was
written) without regard to any unrealized gain or loss on the underlying
security, and the liability related to such option is extinguished. If a call
option which the Portfolio has written is exercised, the Portfolio realizes a
capital gain or loss (long-term or short-term, depending on the holding period
of the underlying security) from the sale of the underlying security and the
proceeds from the sale are increased by the premium originally received. If a
put option which the Portfolio has written is exercised, the amount of the
premium originally received reduces the cost of the security which the Portfolio
purchases upon exercise of the option.
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 Portfolios are subject to a number of guidelines which
reduce the risk by seeking to ensure that financial futures contracts are used
for hedging purposes or to manage the average duration of a portfolio and not
for leverage. However, imperfect correlations between futures contracts and the
portfolio securities being hedged, or market disruptions, do not normally permit
full control of these risks at all times.
Upon entering into a financial futures contract, a Portfolio 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 Portfolio 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.
REPURCHASE AGREEMENTS--The Portfolios' custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to ensure that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Portfolios have the right
to liquidate the collateral and apply the proceeds in satisfaction of the
obligations. Under certain circumstances, in the event of default or bankruptcy
by the other party to the agreement, realization and/or retention of the
collateral may be subject to legal proceedings. Each Portfolio (with the
exception of PACE Municipal Fixed Income Investments) occasionally participates
in joint repurchase agreement transactions with other funds managed by Mitchell
Hutchins.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-date. The amounts of dividends and distributions are
determined in accordance with federal income tax regulations, which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in excess
of net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized capital
gains for tax purposes, they are reported as distributions of paid-in capital.
64
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Managed Accounts Services Portfolio Trust
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- --------------------------------------------------------------------------------
CONCENTRATION OF RISK
Investing in securities of foreign issuers and currency transactions may involve
certain considerations and risks not typically associated with investments in
the United States. These risks include revaluation of currencies, adverse
fluctuations in foreign currency values and possible adverse political, social
and economic developments, including those particular to a specific industry,
country or region, which could cause the securities and their markets to be less
liquid and prices more volatile than those of comparable U.S. companies and U.S.
government securities. These risks are greater with respect to securities of
issuers located in emerging market countries in which the PACE Global Fixed
Income Investments, PACE International Equity Investments and PACE International
Emerging Markets Equity Investments Portfolios are authorized to invest.
Small cap companies may be more vulnerable than larger companies to adverse
business or economic developments. Small cap companies may also have limited
product lines, markets or financial resources, and may be dependent on a
relatively small management group. Securities of such companies may be less
liquid and more volatile than securities of larger companies or the market
averages in general and, therefore, may involve greater risk than investing in
larger companies. In addition, small cap companies may not be well-known to the
investing public, may not have institutional ownership and may have only
cyclical, static or moderate growth prospects.
The ability of the issuers of debt securities held by the Portfolios to meet
their obligations may be affected by economic and political developments
particular to a specific industry, country or region.
INVESTMENT ADVISER AND ADMINISTRATOR
The Trust has entered into an Investment Advisory and Administration Contract
("Advisory Contract") with Mitchell Hutchins. In accordance with the Advisory
Contract, each Portfolio pays Mitchell Hutchins an investment advisory and
administration fee, which is accrued daily and payable monthly, in accordance
with the following schedule:
<TABLE>
<CAPTION>
ANNUAL RATE
AS A PERCENTAGE
OF EACH PORTFOLIO'S
AVERAGE NET
PORTFOLIO ASSETS
- -------------------------------------------------------------------------------------- -------------------
<S> <C>
PACE Money Market Investments......................................................... 0.35%
PACE Government Securities Fixed Income Investments................................... 0.70%
PACE Intermediate Fixed Income Investments............................................ 0.60%
PACE Strategic Fixed Income Investments............................................... 0.70%
PACE Municipal Fixed Income Investments............................................... 0.60%
PACE Global Fixed Income Investments.................................................. 0.80%
PACE Large Company Value Equity Investments........................................... 0.80%
PACE Large Company Growth Equity Investments.......................................... 0.80%
PACE Small/Medium Company Value Equity Investments.................................... 0.80%
PACE Small/Medium Company Growth Equity Investments................................... 0.80%
PACE International Equity Investments................................................. 0.90%
PACE International Emerging Markets Equity Investments................................ 1.10%
</TABLE>
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Managed Accounts Services Portfolio Trust
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- --------------------------------------------------------------------------------
Under separate Sub-Advisory Agreements, with the exception of PACE Money Market
Investments, Mitchell Hutchins (not the Portfolios) pays each Sub-Adviser a fee,
which is accrued daily and paid monthly, in accordance with the following
schedule:
<TABLE>
<CAPTION>
ANNUAL RATE
AS A PERCENTAGE
OF EACH PORTFOLIO'S
AVERAGE NET
PORTFOLIO SUB-ADVISER ASSETS
- ---------------------------------------------------- ----------------------------------------- -------------------
<S> <C> <C>
PACE Government Securities Fixed Income Investments Pacific Investment Management Company 0.25%
PACE Intermediate Fixed Income Investments Pacific Income Advisors, Inc. 0.20%
PACE Strategic Fixed Income Investments Pacific Investment Management Company 0.25%
PACE Municipal Fixed Income Investments Morgan Grenfell Capital Management,
Incorporated 0.20%
PACE Global Fixed Income Investments Rogge Global Partners plc 0.35%
PACE Large Company Value Equity Investments Brinson Partners, Inc. 0.30%
PACE Large Company Growth Equity Investments Chancellor Capital Management, Inc. 0.30%
PACE Small/Medium Company Value
Equity Investments Brandywine Asset Management, Inc. 0.30%
PACE Small/Medium Company Growth Equity Investments Delaware Management Company, Inc. 0.40%
PACE International Equity Investments Martin Currie Inc. 0.40%
PACE International Emerging Markets Equity Schroder Capital Management International
Investments Inc. 0.50%
</TABLE>
Prior to December 17, 1996, Westfield Capital Management Company, Inc. served as
the PACE Small/ Medium Company Growth Portfolio's sub-adviser pursuant to a
sub-advisory contract with Mitchell Hutchins. Mitchell Hutchins (not the
Portfolio) paid Westfield Capital Management Company, Inc. a fee, computed daily
and paid monthly, at an annual rate of 0.30% of the Portfolio's average net
assets.
Mitchell Hutchins has agreed to voluntarily waive all or a portion of its
investment advisory and administration fee and subsidize certain operating
expenses for the six months ended January 31, 1997, which will lower the overall
expenses of each Portfolio. Mitchell Hutchins may discontinue these voluntary
waivers at any time.
During the six months ended January 31, 1997, PACE Large Company Value Equity
Investments paid $95 in brokerage commissions to PaineWebber for transactions
executed on behalf of the Portfolio.
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Managed Accounts Services Portfolio Trust
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- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
At January 31, 1997, the components of net unrealized appreciation
(depreciation) of investments were as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
GROSS GROSS APPRECIATION
PORTFOLIO APPRECIATION DEPRECIATION (DEPRECIATION)
- -------------------------------------------------------------------- ------------- ------------- -------------
<S> <C> <C> <C>
PACE Government Securities Fixed Income Investments................. $ 485,568 $ (135,970) $ 349,598
PACE Intermediate Fixed Income Investments.......................... $ 197,449 $ (377,069) $ (179,620)
PACE Strategic Fixed Income Investments............................. $ 412,040 $ (302,095) $ 109,945
PACE Municipal Fixed Income Investments............................. $ 353,686 $ (18,707) $ 334,979
PACE Global Fixed Income Investments................................ $ 273,371 $ (1,274,273) $(1,000,902)
PACE Large Company Value Equity Investments......................... $ 18,333,043 $ (1,266,778) $17,066,265
PACE Large Company Growth Equity Investments........................ $ 20,349,685 $ (1,414,213) $18,935,472
PACE Small/Medium Company Value Equity Investments.................. $ 15,008,789 $ (2,278,948) $12,729,841
PACE Small/Medium Company Growth Equity Investments................. $ 5,922,615 $ (1,757,357) $ 4,165,258
PACE International Equity Investments............................... $ 5,722,090 $ (2,721,838) $ 3,000,252
PACE International Emerging Markets Equity Investments.............. $ 6,223,064 $ (2,292,779) $ 3,930,285
</TABLE>
For U.S. federal income tax purposes, the cost of securities owned at July 31,
1996 was substantially the same as the cost of securities for financial
statement purposes.
For the six months ended January 31, 1997, aggregate purchases and sales of
portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
- --------------------------------------------------------------------------------- -------------- --------------
<S> <C> <C>
PACE Government Securities Fixed Income Investments.............................. $ 342,615,906 $ 331,736,551
PACE Intermediate Fixed Income Investments....................................... $ 20,746,301 $ 9,386,206
PACE Strategic Fixed Income Investments.......................................... $ 65,014,857 $ 59,812,799
PACE Municipal Fixed Income Investments.......................................... $ 6,199,457 $ 1,085,126
PACE Global Fixed Income Investments............................................. $ 51,868,138 $ 48,358,090
PACE Large Company Value Equity Investments...................................... $ 48,158,073 $ 22,451,144
PACE Large Company Growth Equity Investments..................................... $ 55,228,397 $ 33,069,478
PACE Small/Medium Company Value Equity Investments............................... $ 32,676,805 $ 14,371,606
PACE Small/Medium Company Growth Equity Investments.............................. $ 150,478,787 $ 134,454,799
PACE International Equity Investments............................................ $ 32,037,027 $ 13,864,297
PACE International Emerging Markets Equity Investments........................... $ 15,569,373 $ 6,015,255
</TABLE>
67
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Managed Accounts Services Portfolio Trust
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- --------------------------------------------------------------------------------
FEDERAL INCOME TAX STATUS
Each of the Portfolios intends to distribute substantially all of its taxable
income and to comply with the other requirements of the Internal Revenue Code
applicable to regulated investment companies. Accordingly, no provision for
federal income taxes is required. In addition, by distributing during each
calendar year substantially all of its net investment income, capital gains and
certain other amounts, if any, each Portfolio intends not to be subject to a
federal excise tax.
At July 31, 1996, PACE Large Company Growth Equity Investments and PACE
Small/Medium Company Growth Equity Investments had net capital loss
carryforwards of $50,903 and $125,087, respectively. These carryforward losses
are available as reductions, to the extent provided in the regulations, of
future net capital gains and will expire on July 31, 2004. To the extent that
such losses are used to offset future capital gains, the gains so offset will
not be distributed to shareholders.
WRITTEN OPTION ACTIVITY
Written option activity for the six months ended January 31, 1997 for PACE
Strategic Fixed Income Investments was as follows:
<TABLE>
<CAPTION>
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
------------- -----------
<S> <C> <C>
Options outstanding at July 31, 1996...................................................... 28 $ 59,850
Options written during the period ended January 31, 1997.................................. 10 8,771
Options terminated in closing purchase transactions....................................... (10) (10,447)
Options expired prior to exercise......................................................... (18) (49,403)
Options exercised......................................................................... -- --
--- -----------
Options outstanding at January 31, 1997................................................... 10 $ 8,771
--- -----------
--- -----------
</TABLE>
Written option activity for the six months ended January 31, 1997 for PACE
Global Fixed Income Investments was as follows:
<TABLE>
<CAPTION>
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
------------- -----------
<S> <C> <C>
Options outstanding at July 31, 1996...................................................... 0 $ 0
Options written during the period ended January 31, 1997.................................. 1 9,222
Options terminated in closing purchase transactions....................................... -- --
Options expired prior to exercise......................................................... -- --
Options exercised......................................................................... (1) (9,222)
--- -----------
Options outstanding at January 31, 1997................................................... 0 $ 0
--- -----------
--- -----------
</TABLE>
68
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Managed Accounts Services Portfolio Trust
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- --------------------------------------------------------------------------------
SHARES OF BENEFICIAL INTEREST
For the six months ended January 31, 1997, transactions in shares of beneficial
interest for each of the Portfolios were as follows:
<TABLE>
<CAPTION>
DIVIDENDS
REINVESTED
IN NET INCREASE
SHARES ADDITIONAL IN SHARES
PORTFOLIO SHARES SOLD REPURCHASED SHARES OUTSTANDING
- --------------------------------------------------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
PACE Money Market Investments............................ 5,422,021 (3,049,687) 283,790 2,656,124
PACE Government Securities Fixed Income Investments...... 2,017,492 (498,903) 164,647 1,683,236
PACE Intermediate Fixed Income Investments............... 1,317,762 (403,763) 106,687 1,020,686
PACE Strategic Fixed Income Investments.................. 1,481,798 (368,237) 140,436 1,253,997
PACE Municipal Fixed Income Investments.................. 634,087 (144,206) 44,839 534,720
PACE Global Fixed Income Investments..................... 1,117,041 (331,252) 99,950 885,739
PACE Large Company Value Equity Investments.............. 2,290,494 (595,770) 334,487 2,029,211
PACE Large Company Growth Equity Investments............. 2,229,348 (531,506) 14,388 1,712,230
PACE Small/Medium Company Value Equity Investments....... 1,856,588 (549,422) 193,305 1,500,471
PACE Small/Medium Company Growth Equity Investments...... 2,118,758 (604,584) -- 1,514,174
PACE International Equity Investments.................... 1,961,801 (342,111) 71,296 1,690,986
PACE International Emerging Markets Equity Investments... 1,000,327 (201,810) 8,535 807,052
</TABLE>
For the period August 24, 1995 (commencement of operations) through July 31,
1996, transactions in shares of beneficial interest for each of the Portfolios
were as follows:
<TABLE>
<CAPTION>
DIVIDENDS
REINVESTED
IN NET INCREASE
SHARES ADDITIONAL IN SHARES
PORTFOLIO SHARES SOLD REPURCHASED SHARES OUTSTANDING
- --------------------------------------------------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
PACE Money Market Investments............................ 13,137,911 (3,184,468) 255,422 10,208,865
PACE Government Securities Fixed Income Investments...... 5,313,084 (556,221) 110,609 4,867,472
PACE Intermediate Fixed Income Investments............... 3,821,298 (457,307) 88,875 3,452,866
PACE Strategic Fixed Income Investments.................. 3,696,020 (362,210) 85,594 3,419,404
PACE Municipal Fixed Income Investments.................. 1,554,054 (145,285) 32,097 1,440,866
PACE Global Fixed Income Investments..................... 3,677,505 (648,832) 77,626 3,106,299
PACE Large Company Value Equity Investments.............. 6,391,534 (657,955) 13,834 5,747,413
PACE Large Company Growth Equity Investments............. 5,728,398 (514,434) 3,195 5,217,159
PACE Small/Medium Company Value Equity Investments....... 6,270,736 (1,080,132) 8,873 5,199,477
PACE Small/Medium Company Growth Equity Investments...... 6,801,662 (1,149,473) 3,713 5,655,902
PACE International Equity Investments.................... 3,856,472 (318,003) 5,381 3,543,850
PACE International Emerging Markets Equity Investments... 2,296,420 (258,068) 1,218 2,039,570
</TABLE>
69
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Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
MONEY MARKET INVESTMENTS
--------------------------------
<S> <C> <C>
FOR THE SIX FOR THE
MONTHS PERIOD
ENDED ENDED
JANUARY 31, 1997 JULY 31,
(UNAUDITED) 1996+
----------------- -------------
Net asset value, beginning of period.... $ 1.00 $ 1.00
------- -------------
Net investment income................... 0.03 0.05
------- -------------
Dividends from net investment income.... (0.03) (0.05)
------- -------------
Net asset value, end of period.......... $ 1.00 $ 1.00
------- -------------
------- -------------
Total investment return (1)............. 2.51% 4.75%
------- -------------
------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 12,877 $ 10,221
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 0.50%* 0.50%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 2.03%* 2.40%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 4.92%* 4.93%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements......................... 3.39%* 3.03%*
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(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 the PACE Program
Fee; results would be lower if this fee was included. Total investment
returns for periods of less than one year have not been annualized.
70
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Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
GOVERNMENT SECURITIES FIXED
INCOME INVESTMENTS
--------------------------------
<S> <C> <C>
FOR THE SIX FOR THE
MONTHS PERIOD
ENDED ENDED
JANUARY 31, 1997 JULY 31,
(UNAUDITED) 1996+
----------------- -------------
Net asset value, beginning of period.... $ 12.07 $ 12.00
------- -------------
Net investment income................... 0.30 0.49
Net realized and unrealized gains from
investments............................ 0.33 0.03
------- -------------
Total income from investment
operations............................. 0.63 0.52
------- -------------
Dividends from net investment income.... (0.30) (0.44)
Distributions from net realized gains
from investments....................... (0.05) (0.01)
------- -------------
Total dividends and distributions....... (0.35) (0.45)
------- -------------
Net asset value, end of period.......... $ 12.35 $ 12.07
------- -------------
------- -------------
Total investment return (1)............. 5.35% 4.35%
------- -------------
------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 80,905 $ 58,752
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 0.85%* 0.85%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.02%* 1.15%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 5.13%* 5.09%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements......................... 4.96%* 4.79%*
Portfolio turnover...................... 513% 978%
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
71
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Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
INTERMEDIATE FIXED INCOME
INVESTMENTS
--------------------------------
<S> <C> <C>
FOR THE SIX FOR THE
MONTHS PERIOD
ENDED ENDED
JANUARY 31, 1997 JULY 31,
(UNAUDITED) 1996+
----------------- -------------
Net asset value, beginning of period.... $ 11.95 $ 12.00
------- -------------
Net investment income................... 0.33 0.53
Net realized and unrealized gains
(losses) from investments.............. 0.13 (0.09)
------- -------------
Total income from investment
operations............................. 0.46 0.44
------- -------------
Dividends from net investment income.... (0.34) (0.48)
Distributions from net realized gains
from investments....................... -- (0.01)
------- -------------
Total dividends and distributions....... (0.34) (0.49)
------- -------------
Net asset value, end of period.......... $ 12.07 $ 11.95
------- -------------
------- -------------
Total investment return (1)............. 3.85% 3.59%
------- -------------
------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 54,001 $ 41,273
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 0.85%* 0.85%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.07%* 1.23%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 5.71%* 5.56%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements......................... 5.49%* 5.18%*
Portfolio turnover...................... 20% 36%
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
72
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
STRATEGIC FIXED INCOME
INVESTMENTS
--------------------------------
<S> <C> <C>
FOR THE SIX FOR THE
MONTHS PERIOD
ENDED ENDED
JANUARY 31, 1997 JULY 31,
(UNAUDITED) 1996+
----------------- -------------
Net asset value, beginning of period.... $ 12.44 $ 12.00
------- -------------
Net investment income................... 0.34 0.59
Net realized and unrealized gains from
investments............................ 0.34 0.38
------- -------------
Total income from investment
operations............................. 0.68 0.97
------- -------------
Dividends from net investment income.... (0.34) (0.52)
Distributions from net realized gains
from investments....................... (0.10) (0.01)
------- -------------
Total dividends and distributions....... (0.44) (0.53)
------- -------------
Net asset value, end of period.......... $ 12.68 $ 12.44
------- -------------
------- -------------
Total investment return (1)............. 5.53% 8.15%
------- -------------
------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 59,266 $ 42,550
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 0.85%* 0.85%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.18%* 1.40%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 5.50%* 5.85%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements......................... 5.17%* 5.30%*
Portfolio turnover...................... 164% 166%
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
73
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
MUNICIPAL FIXED INCOME
INVESTMENTS
--------------------------------
<S> <C> <C>
FOR THE SIX FOR THE
MONTHS PERIOD
ENDED ENDED
JANUARY 31, 1997 JULY 31,
(UNAUDITED) 1996+
----------------- -------------
Net asset value, beginning of period.... $ 12.32 $ 12.00
------- -------------
Net investment income................... 0.31 0.49
Net realized and unrealized gains from
investments............................ 0.18 0.27
------- -------------
Total income from investment
operations............................. 0.49 0.76
------- -------------
Dividends from net investment income.... (0.31) (0.43)
Distributions from net realized gains
from investments....................... (0.03) (0.01)
------- -------------
Total dividends and distributions....... (0.34) (0.44)
------- -------------
Net asset value, end of period.......... $ 12.47 $ 12.32
------- -------------
------- -------------
Total investment return (1)............. 4.04% 6.38%
------- -------------
------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 24,636 $ 17,765
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 0.85%* 0.85%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.53%* 1.74%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 5.12%* 4.95%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements......................... 4.44%* 4.07%*
Portfolio turnover...................... 5% 78%
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
74
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
GLOBAL FIXED INCOME
INVESTMENTS
--------------------------------
FOR THE SIX
MONTHS FOR THE
ENDED JANUARY PERIOD
31, 1997 ENDED JULY
(UNAUDITED) 31, 1996+
---------------- -------------
<S> <C> <C>
Net asset value, beginning of period.... $ 12.33 $ 12.00
------- -------------
Net investment income................... 0.33 0.53
Net realized and unrealized gains
(losses) from investments.............. (0.14) 0.27
------- -------------
Total income from investment
operations............................. 0.19 0.80
------- -------------
Dividends from net investment income.... (0.27) (0.46)
Distributions from net realized gains
from investments....................... (0.08) (0.01)
------- -------------
Total dividends and distributions....... (0.35) (0.47)
------- -------------
Net asset value, end of period.......... $ 12.17 $ 12.33
------- -------------
------- -------------
Total investment return (1)............. 1.50% 6.68%
------- -------------
------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $48,594 $38,296
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 0.95%* 0.95%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.32%* 1.61%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 5.31%* 5.24%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements......................... 4.94%* 4.58%*
Portfolio turnover...................... 131% 197%
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
75
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
LARGE COMPANY VALUE
EQUITY INVESTMENTS
------------------------------
<S> <C> <C>
FOR THE SIX
MONTHS FOR THE
ENDED PERIOD
JANUARY 31, ENDED
1997 JULY 31,
(UNAUDITED) 1996+
--------------- -------------
Net asset value, beginning of period.... $ 14.07 $ 12.00
--------------- -------------
Net investment income................... 0.05 0.12
Net realized and unrealized gains from
investments............................ 3.14 2.02
--------------- -------------
Total income from investment
operations............................. 3.19 2.14
--------------- -------------
Dividends from net investment income.... (0.11) (0.05)
Distributions from net realized gains
from investments....................... (0.65) (0.02)
--------------- -------------
Total dividends and distributions....... (0.76) (0.07)
--------------- -------------
Net asset value, end of period.......... $ 16.50 $ 14.07
--------------- -------------
--------------- -------------
Total investment return (1)............. 22.85% 17.90%
--------------- -------------
--------------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 128,317 $ 80,897
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 1.00%* 1.00%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.13%* 1.40%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 0.94%* 1.22%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements......................... 0.81%* 0.82%*
Portfolio turnover...................... 22% 38%
Average commission rate paid (2)........ $ 0.0442 --
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
(2) Effective for fiscal years beginning on or after September 1, 1995, the
Portfolio is required to disclose the average commission rate paid per share
of common stock investments purchased or sold.
76
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
LARGE COMPANY GROWTH
EQUITY INVESTMENTS
------------------------------
<S> <C> <C>
FOR THE SIX
MONTHS FOR THE
ENDED PERIOD
JANUARY 31, ENDED
1997 JULY 31,
(UNAUDITED) 1996+
--------------- -------------
Net asset value, beginning of period.... $ 13.27 $ 12.00
--------------- -------------
Net investment income................... 0.01 0.03
Net realized and unrealized gains from
investments............................ 3.08 1.26
--------------- -------------
Total income from investment
operations............................. 3.09 1.29
--------------- -------------
Dividends from net investment income.... (0.03) (0.02)
Distributions from net realized gains
from investments....................... -- --
--------------- -------------
Total dividends and distributions....... (0.03) (0.02)
--------------- -------------
Net asset value, end of period.......... $ 16.33 $ 13.27
--------------- -------------
--------------- -------------
Total investment return (1)............. 23.33% 10.76%
--------------- -------------
--------------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 113,156 $ 69,248
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 1.00%* 1.00%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.07%* 1.33%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 0.18%* 0.33%*
Net investment income (loss) to average
net assets, before fee waivers and
expense reimbursements................. 0.11%* (0.01)%*
Portfolio turnover...................... 37% 65%
Average commission rate paid (2)........ $ 0.0486 --
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
(2) Effective for fiscal years beginning on or after September 1, 1995, the
Portfolio is required to disclose the average commission rate paid per share
of common stock investments purchased or sold.
77
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
SMALL/MEDIUM COMPANY
VALUE EQUITY INVESTMENTS
--------------------------------
<S> <C> <C>
FOR THE SIX FOR THE
MONTHS PERIOD
ENDED ENDED
JANUARY 31, 1997 JULY 31,
(UNAUDITED) 1996+
----------------- -------------
Net asset value, beginning of period.... $ 12.29 $ 12.00
------- -------------
Net investment income................... 0.06 0.10
Net realized and unrealized gains from
investments............................ 2.77 0.23
------- -------------
Total income from investment
operations............................. 2.83 0.33
------- -------------
Dividends from net investment income.... (0.10) (0.04)
Distributions from net realized gains
from investments....................... (0.34) --
------- -------------
Total dividends and distributions....... (0.44) (0.04)
------- -------------
Net asset value, end of period.......... $ 14.68 $ 12.29
------- -------------
------- -------------
Total investment return (1)............. 23.16% 2.76%
------- -------------
------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 98,337 $ 63,894
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 1.00%* 1.00%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.22%* 1.51%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 1.06%* 1.07%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements......................... 0.84%* 0.56%*
Portfolio turnover...................... 19% 30%
Average commission rate paid (2)........ $ 0.0512 --
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
(2) Effective for fiscal years beginning on or after September 1, 1995, the
Portfolio is required to disclose the average commission rate paid per share
of common stock investments purchased or sold.
78
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
SMALL/MEDIUM COMPANY GROWTH
EQUITY INVESTMENTS
---------------------------------
<S> <C> <C>
FOR THE SIX
MONTHS
ENDED FOR THE PERIOD
JANUARY 31, 1997 ENDED
(UNAUDITED) JULY 31, 1996+
---------------- ----------------
Net asset value, beginning of period.... $ 11.20 $ 12.00
------- -------
Net investment loss..................... (0.02) (0.00)
Net realized and unrealized gains
(losses) from investments.............. 1.99 (0.78)
------- -------
Total income (loss) from investment
operations............................. 1.97 (0.78)
------- -------
Dividends from net investment income.... -- (0.02)
Distributions from net realized gains
from investments....................... -- --
------- -------
Total dividends and distributions....... -- (0.02)
------- -------
Net asset value, end of period.......... $ 13.17 $ 11.20
------- -------
------- -------
Total investment return (1)............. 17.59% (6.55)%
------- -------
------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 94,449 $ 63,364
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 1.00% * 1.00% *
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.12% * 1.27% *
Net investment loss to average net
assets, net of fee waivers and expense
reimbursements......................... (0.31)%* (0.14)%*
Net investment loss to average net
assets, before fee waivers and expense
reimbursements......................... (0.43)%* (0.41)%*
Portfolio turnover...................... 190% 115%
Average commission rate paid (2)........ $ 0.0540 --
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
(2) Effective for fiscal years beginning on or after September 1, 1995, the
Portfolio is required to disclose the average commission rate paid per share
of common stock investments purchased or sold.
79
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
INTERNATIONAL EQUITY
INVESTMENTS
--------------------------------
FOR THE SIX
MONTHS FOR THE
ENDED JANUARY 31, PERIOD
1997 ENDED JULY
(UNAUDITED) 31, 1996+
----------------- -------------
<S> <C> <C>
Net asset value, beginning of period.... $ 12.79 $ 12.00
------- -------------
Net investment income................... 0.13 0.12
Net realized and unrealized gains from
investments............................ 0.51 0.73
------- -------------
Total income from investment
operations............................. 0.64 0.85
------- -------------
Dividends from net investment income.... (0.13) (0.06)
Distributions from net realized gains
from investments....................... (0.07) --
------- -------------
Total dividends and distributions....... (0.20) (0.06)
------- -------------
Net asset value, end of period.......... $ 13.23 $ 12.79
------- -------------
------- -------------
Total investment return (1)............. 4.93% 7.08%
------- -------------
------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 69,244 $ 45,331
Ratio of:
Expenses to average net assets, net of
fee waivers and expense
reimbursements......................... 1.38%* 1.50%*
Expenses to average net assets, before
fee waivers and expense
reimbursements......................... 1.38%* 1.81%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements......................... 0.35%* 1.35%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements......................... 0.35%* 1.04%*
Portfolio turnover...................... 27% 25%
Average commission rate paid (2)........ $ 0.0242 --
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
(2) Effective for fiscal years beginning on or after September 1, 1995, the
Portfolio is required to disclose the average commission rate paid per share
of common stock investments purchased or sold.
80
<PAGE>
Managed Accounts Services Portfolio Trust
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
INTERNATIONAL EMERGING
MARKETS EQUITY INVESTMENTS
--------------------------------
FOR THE SIX
MONTHS FOR THE
ENDED JANUARY PERIOD
31, 1997 ENDED JULY
(UNAUDITED) 31, 1996+
---------------- -------------
<S> <C> <C>
Net asset value, beginning of period........... $ 12.49 $ 12.00
------- -------------
Net investment income (loss)................... (0.03) 0.07
Net realized and unrealized gains from
investments................................... 0.95 0.44
------- -------------
Total income from investment operations........ 0.92 0.51
------- -------------
Dividends from net investment income........... (0.04) (0.02)
Distributions from net realized gains from
investments................................... -- --
------- -------------
Total dividends and distributions.............. (0.04) (0.02)
------- -------------
Net asset value, end of period................. $ 13.37 $ 12.49
------- -------------
------- -------------
Total investment return (1).................... 7.48% 4.23%
------- -------------
------- -------------
Ratios/Supplemental Data:
Net assets, end of period (000's).............. $38,065 $25,481
Ratio of:
Expenses to average net assets, net of fee
waivers and expense reimbursements............ 1.50%* 1.50%*
Expenses to average net assets, before fee
waivers and expense reimbursements............ 2.24%* 2.35%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements................................ (0.38)%* 0.94%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements................................ (1.12)%* 0.08%*
Portfolio turnover............................. 21% 22%
Average commission rate paid (2)............... $0.0016 --
</TABLE>
- ---------------
+ For the period August 24, 1995 (commencement of operations) through July 31,
1996.
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
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 the PACE Program Fee; results would be lower if this fee was
included. Total investment returns for periods of less than one year have
not been annualized.
(2) Effective for fiscal years beginning on or after September 1, 1995, the
Portfolio is required to disclose the average commission rate paid per share
of common stock investments purchased or sold.
81
<PAGE>
MANAGED ACCOUNTS SERVICES
PAINEWEBBER
-C-1997 PaineWebber Incorporated
Member SIPC
