<PAGE>
PAINEWEBBER P A C E-SM-
Personalized Asset Consulting and Evaluation
GOING THE
DISTANCE
TO MEET YOUR
FINANCIAL NEEDS
SEMI-ANNUAL REPORT
JANUARY 31, 1999
This material is intended for use only by current PACE investors and must be
preceded or accompanied by the current PACE prospectus.
<PAGE>
DEAR PAINEWEBBER PACE-SM- SHAREHOLDER,
We are pleased to present you with the semiannual report for the PACE
Portfolios, comprising the PaineWebber PACE Select Advisors Trust.
In this report you will find Mitchell Hutchins' summaries of the domestic and
international markets for the six months ended January 31, 1999, covering events
since the annual report for July 31, 1998. We then summarize the performance of
each PACE Portfolio and present comments from each of the investment advisers.
Please note that the opinions of the advisers do not necessarily represent those
of PaineWebber Incorporated or Mitchell Hutchins Asset Management Inc.
We are pleased with the overall performance of the PACE Portfolios over the
past fiscal year. We recognize the far-ranging needs of today's investors and
the importance of well-planned, well-diversified portfolios. To meet these
needs, the PACE Portfolios offer a wide choice of actively managed funds that
allow you to take advantage of investment opportunities as they arise.
We appreciate the opportunity to help you achieve your financial goals. If you
have any questions about the PaineWebber PACE Program or about PACE Select
Advisors Trust, please contact your Financial Advisor.
Sincerely,
/s/ Margo Alexander
MARGO ALEXANDER
President and Chief Executive Officer
Mitchell Hutchins Asset Management Inc.
/s/ Bruce A. Bursey
BRUCE A. BURSEY
Senior Vice President
Managed Accounts Consulting Services
PaineWebber Incorporated
March 15, 1999
This letter is intended to assist shareholders in understanding how the PACE
portfolios performed during the six- month period ended January 31, 1999, and
reflects both our views and the investment sub-advisers' views at the time of
writing this report. Of course, these views may change in response to changing
circumstances. We encourage you to consult your Financial Advisor regarding your
personal investment program.
1
<PAGE>
U.S. INVESTMENT OVERVIEW
STOCK MARKET
The markets became extremely volatile last August when investors pulled money
out of stocks in response to increased global uncertainty. Concerns about
exposure to over-leveraged hedge funds and emerging markets caused a sell-off in
financial-services stocks as investors backed away from potential credit quality
and liquidity problems. Weakness in global markets also hurt U.S. companies
sensitive to export growth. The stock market rallied, however, after the Federal
Reserve cut short-term interest rates in September, October and November, from
5.50% to 4.75%, and other European central banks followed suit in anticipation
of the new euro currency. The S&P 500 Index gained 15.02% for the six-month
period ended January 31, 1999.
Many sectors that had lagged from August through October rebounded by
period-end, especially technology and financial services. Mid-capitalization
stocks also improved to some extent. Small-cap stocks posted slight losses for
the period. January saw renewed volatility across the stock market in response
to concerns about higher U.S. interest rates and the devaluation of Brazil's
currency, the real.
BOND MARKET
The mid-August crisis in Russia and fears of its spread to Latin America
heightened investors' aversion to credit risk. Yield spreads--the difference in
yield or income that securities must pay above Treasurys to compensate for the
additional risk--widened across all fixed income sectors. The "flight to
quality" became a "flight to liquidity" as investors swarmed to shorter maturity
Treasurys. Some bond markets virtually closed as a result.
Attempting to halt the spread of the contagion, the Federal Reserve cut the
short-term interest rate by 0.25% in September, October and November, lowering
it from 5.50% to 4.75%. Rate cuts by several European central banks in
preparation for the 1999 debut of the euro currency reinforced the Federal
Reserve action, and the markets began to stabilize by mid-October. Investors
returned to the bond markets in search of bargains, boosting the corporate and
mortgage-backed sectors. Investors stood on firmer ground by January 1999--with
less leverage and fewer risky investments than in August 1998--and thus
weathered Brazil's devaluation of the real in January better than they had the
devaluation of the Russian ruble in August. The yield on the 30-year U.S.
Treasury bond rose about 0.25%, however, as investors became less quality
sensitive and worried that inflation would heat up again, causing U.S. interest
rates to rise.
2
<PAGE>
GLOBAL INVESTMENT OVERVIEW
STOCK MARKETS
The international stock markets ended the six-month period on an upbeat note,
recovering from their losses in the late summer and early fall of last year.
International stock markets, as measured by the Morgan Stanley Capital
International Europe, Australia and Far East Index (MSCI EAFE), advanced 2.32%
for the six months ended January 31, 1999.
Investor sentiment improved as interest rates declined and the future of the
new European monetary unit, the euro, which began trading on January 1, 1999,
became more certain. European markets continued to see widely divergent returns
between countries and companies within each country. Individual stock selection
continued to be more important to performance than country selection alone.
Asian markets rallied strongly during the period, prompted by interest rate
cuts in the developed economies and the announcement by the International
Monetary Fund (IMF) of a $41.5 billion aid package for Brazil. A sharp rally in
the yen supported Asian currencies, particularly the Hong Kong dollar. Greater
currency stability enabled interest rates to fall sharply throughout Asia. As
the cost of borrowing fell, the position of debtors and banks improved. The real
estate and financial services sectors performed strongly, but rising
unemployment and potential wage cuts restrained consumer demand.
Latin America also recovered as Brazil's fiscal policy, with the help of the
IMF program, supported the real and allowed interest rates to decline.
Nonetheless, difficulties continued to mount for the region in January 1999.
Unable to continue defending the real against market pressure, Brazil was forced
to let its currency float. The result was a rapid devaluation of the real, which
threatened to trigger a sharp contraction of Brazil's economy.
BOND MARKETS
Developed government bond markets were prime beneficiaries of the "flight to
quality" that dominated the latter half of 1998 as investors put safety ahead of
most other concerns. Fears of financial stresses from the collapse of emerging
stock and bond markets drove down yields in virtually all developed markets to
levels not seen in decades. Developed bond markets, as measured by the Salomon
Brothers World Government Bond Index (WGBI), returned 11.00% for the six-month
period ended January 31, 1999.
Japanese bonds fared poorly as investors reacted to fears of large debt
issuance to finance a worsening budget deficit. Elsewhere in Asia, markets began
to steady as improving balances of payment and stabilizing currencies allowed
interest rates to come down. Emerging market debt, however, still suffered heavy
losses. As measured by the JP Morgan Emerging Market Bond Index Plus, bonds in
the emerging markets lost 17.20% for the period.
3
<PAGE>
PACE MONEY MARKET INVESTMENTS
ADVISER: Mitchell Hutchins Asset Management Inc.
OBJECTIVE: Current income consistent with preservation of capital and liquidity
INVESTMENT PROCESS: The Portfolio invests in high-quality, U.S.
dollar-denominated money market instruments with maturities of 13 months or
less, and maintains a dollar-weighted average maturity of 90 days or less.
Security selection follows an approved list of top-tier rated securities
reviewed by the firm's credit analysts.
ADVISER'S COMMENTS
For the six-month period ended January 31, 1999, the Portfolio provided
investors with a total return of 2.49% (before deducting the PACE Program fee).
The Portfolio outperformed the 2.24% return of the 90-day U.S. Treasury bill
over the same period. For the seven days ended January 31, 1999, the Portfolio's
yield was 4.54% and its dollar-weighted average maturity was 77 days. Net assets
totaled $31.1 million.
We remained positive on the fixed income markets over the six months ended
January 31, 1999, expecting interest rates to hold steady or fall slightly.
Since we did not expect major changes in rates, we kept the Portfolio's weighted
average maturity slightly long--about 5-10 days above the average of its peer
group as of January 31, 1999.
We expect the U.S. economy to grow more slowly in 1999, with inflation
remaining low and no recession on the immediate horizon. The Federal Reserve is
likely to maintain a steady monetary policy. We believe the fixed income markets
will remain volatile in 1999, so we are taking an even more conservative posture
with the Portfolio's investments. We expect to maintain the Portfolio's average
maturity slightly longer than that of its peer group.
4
<PAGE>
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
ADVISER: Pacific Investment Management Company (PIMCO)
OBJECTIVE: Current income
INVESTMENT PROCESS: The Portfolio invests primarily in U.S. government and
agency securities of varying maturities, as well as mortgage-backed securities.
The Portfolio's dollar-weighted average duration normally ranges between one and
seven years. PIMCO establishes duration targets based on its expectations for
changes in interest rates, then positions the Portfolio to take advantage of
yield curve shifts. Securities are chosen for their value relative to other
equivalent securities.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio returned 3.41% before deducting the PACE Program
fee. The Portfolio slightly lagged the Lehman Brothers Mortgage Backed
Securities Index (the "Index") return of 3.67%. Portfolio net assets totaled
$185.8 million as of January 31, 1999.
The Portfolio's above-benchmark duration (a measure of its sensitivity to
interest rate changes) contributed to performance as rates fell over the period.
Falling rates caused the mortgage sector to lag the market as prepayments rose.
The Portfolio's current-coupon, discount and collateralized mortgages, which
faced less prepayment pressure, performed better than premium-coupon mortgages.
We expect to maintain Portfolio duration at about 0.25 years above its
benchmark to capture the price gains from lower-than-expected long-term rates.
We intend to focus the Portfolio more on the intermediate segment of the yield
curve in anticipation of an economic slowdown and potential curve steepening. We
believe mortgages will continue to be the most prudent way to enhance yield
without adding undue risk. We will focus on discount coupon, seasoned and other
prepayment-protected mortgages, which tend to perform better in a declining rate
environment.
<TABLE>
<S> <C>
ASSET ALLOCATION*
- ---------------------------------------------
Agency Mortgage Pass-Throughs................ 58.4%
Collateralized Mortgages..................... 22.5
U.S. Government & Agency..................... 7.6
Corporates................................... 6.9
Agency-Backed................................ 3.5
Stripped Mortgage-Backed..................... 0.7
Asset-Backed................................. 0.4
-----
Total........................................ 100.0%
-----
-----
</TABLE>
<TABLE>
<CAPTION>
WEIGHTED AVERAGES*
- ---------------------------------------------
<S> <C>
Maturity..................................... 3.01 years
Duration..................................... 2.46 years
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
5
<PAGE>
PACE INTERMEDIATE FIXED INCOME INVESTMENTS
ADVISER: Pacific Income Advisers, Inc.
OBJECTIVE: Current income consistent with reasonable stability of principal
INVESTMENT PROCESS: The Portfolio invests in fixed income securities rated at
least BBB; its dollar-weighted average duration (a measure of sensitivity to
interest rate changes) normally ranges between two and four and one-half years.
The adviser focuses on anticipating yield curve shifts and actively rotating
among fixed income sectors based on its assessment of the risks and reward of
each sector. Pacific Income Advisers uses a proprietary risk-adjustment model to
identify undervalued securities.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio returned 4.26% before deducting the PACE program
fee. The Portfolio underperformed the Lehman Brothers Intermediate-Term
Government/Corporate Index (the "Index") return of 5.00%. Portfolio net assets
totaled $121.1 million as of January 31, 1999.
During the period we increased the Portfolio's allocation to "spread" sectors
as they became attractive on a risk-adjusted basis. (The "spread" is the yield
premium to Treasurys offered by corporate, mortgage-backed and asset-backed
securities to compensate investors for their higher credit risk.) Because of the
steepness of the yield curve (i.e., longer maturities offering higher yields
than shorter maturities), we emphasized the short and long ends of the yield
curve. Also, the Portfolio maintained a higher level of interest-rate exposure
than the Index--in technical terms, a longer duration. After the subsequent
flattening of the yield curve, we shortened Portfolio duration to match the
Index.
We remain positive on the fixed income market in the long run. Spread sectors
appear undervalued on a risk-adjusted basis, and we believe they will outperform
Treasurys. We think the highly volatile fixed income market will present
long-term opportunities as investors overreact to events. As long as the
domestic economy remains strong, lower interest rates seem unlikely; we
therefore expect to maintain the Portfolio's duration in line with the Index.
<TABLE>
<CAPTION>
ASSET ALLOCATION*
- ---------------------------------------------
<S> <C>
Corporate & Asset-Backed..................... 39.2%
U.S. Government.............................. 38.0
Mortgage-Backed.............................. 22.3
Cash Equivalents............................. 0.5
-----
Total........................................ 100.0%
-----
-----
<CAPTION>
CREDIT QUALITY*
- ---------------------------------------------
<S> <C>
U.S. Government & Agency..................... 53.8%
AAA.......................................... 8.8
AA........................................... 3.3
A............................................ 23.8
BBB.......................................... 9.4
High Yield................................... 0.4
Cash & Cash Equivalents...................... 0.5
-----
Total........................................ 100.0%
-----
-----
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
6
<PAGE>
PACE STRATEGIC FIXED INCOME INVESTMENTS
ADVISER: Pacific Investment Management Company (PIMCO)
OBJECTIVE: Total return consisting of income and capital appreciation
INVESTMENT PROCESS: The Portfolio invests primarily in fixed income securities
of varying maturities. Its dollar-weighted average duration (a measure of
sensitivity to interest rate changes) normally ranges between three and eight
years. PIMCO invests in those areas of the bond market it considers undervalued,
based on such factors as quality, sector, coupon and maturity.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio returned 4.24% before deducting the PACE Program
fee. The Portfolio underperformed the Lehman Brothers Government/ Corporate Bond
Index (the "Index") return of 5.74%. Portfolio net assets totaled $179.5 million
as of January 31, 1999.
The Portfolio's duration, which was longer than the Index, contributed to
performance as interest rates fell during the period. The mortgage sector lagged
the market as rates fell and prepayments rose. The Portfolio's current-coupon,
discount and collateralized mortgages, which faced less prepayment pressure,
fared better than its premium-coupon mortgages. A below-Index weighting in the
corporate sector boosted returns as corporate profits waned and yield spreads
versus U.S. Treasurys widened. The Portfolio's small emerging-market position
(0.5%*) hurt performance.
We expect to maintain Portfolio duration at about 0.25 years above its
benchmark to capture price gains from lower-than-expected long-term rates. We
intend to focus the Portfolio more on the intermediate segment of the yield
curve in anticipation of an economic slowdown and potential curve steepening. We
believe discount-coupon mortgages will continue to be the most prudent way to
enhance yield without adding undue risk.
We expect corporate profits to slow, and will continue to underweight
investment-grade corporate debt. We will selectively hold small allocations of
lower-rated corporate and emerging-market issues that pass stringent credit
analysis.
<TABLE>
<CAPTION>
ASSET ALLOCATION*
- ---------------------------------------------
<S> <C>
Mortgage-Backed.............................. 59.5%
U.S. Government & Agency..................... 23.8
Corporate.................................... 14.1
Cash Equivalents............................. 2.1
Emerging Markets............................. 0.5
-----
Total........................................ 100.0%
-----
-----
<CAPTION>
CREDIT QUALITY*
- ---------------------------------------------
<S> <C>
AAA.......................................... 74.1%
AA/A......................................... 10.3
BBB.......................................... 6.3
BB........................................... 9.3
-----
Total........................................ 100.0%
-----
-----
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
7
<PAGE>
PACE MUNICIPAL FIXED INCOME INVESTMENTS
ADVISER: Morgan Grenfell Capital Management, Incorporated
OBJECTIVE: High current income exempt from federal income tax
INVESTMENT PROCESS: The Portfolio invests in general obligation, revenue and
private activity bonds and notes, the interest on which is exempt from federal
income tax. Its dollar-weighted average duration (a measure of sensitivity to
interest rate changes) normally ranges between three and seven years. Morgan
Grenfell seeks to provide consistent returns with low volatility by selecting
high-quality securities across all maturities and keeping Portfolio duration
close to its benchmark. Emphasis is placed on issues with enhancements--such as
government backing or collateral--that reduce credit risk.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio returned 3.69% before deducting the PACE program
fee. The Portfolio underperformed the Lehman Brothers Municipal Five-Year Index
return of 4.19% for the same period. Portfolio net assets totaled $56.8 million
as of January 31, 1999.
The portfolio underperformed the Index due to its higher concentration of
escrowed-to-maturity and pre-refunded bonds, which did not substantially
appreciate in price during the period. The Portfolio's weighting in housing
bonds (10%*) also hurt returns when declining interest rates caused mortgage
prepayments to increase for single-family housing issues. The Portfolio
emphasizes multifamily housing bonds, which do not prepay as quickly as
single-family housing issues. During the period, however, the market priced
multifamily issues similarly to single-family issues.
Municipal bonds represented excellent value relative to U.S. Treasury bonds
during the six months ended January 31, 1999. The yield on a 30-year AA
municipal bond soared to 102% of the yield on a 30-year Treasury bond in early
October, finally settling around 95% by the end of January--the norm is 82-84%.
That abnormal relationship during the period was caused by the investor flight
to U.S. Treasurys, which forced long-term Treasury yields below 5%, and an
oversupply of municipal bonds, which kept prices low and yields constant.
We continue to find value in higher-credit-quality issues--we feel that
investors are not adequately compensated for incurring the additional risk of
lower-rated issues. We have lengthened Portfolio duration (a measure of
interest-rate risk) to attempt to capture value at the longer end of the yield
curve. We believe municipal bond prices will rally as the oversupply subsides in
1999.
<TABLE>
<CAPTION>
TOP FIVE STATES*
- ---------------------------------------------
<S> <C>
California................................... 11.9%
Texas........................................ 11.5
Pennsylvania................................. 9.1
Illinois..................................... 7.5
Indiana...................................... 6.8
<CAPTION>
TOP FIVE SECTORS*
- ---------------------------------------------
<S> <C>
Insured...................................... 28.9%
Federal Agency Backed........................ 22.4
ETM Pre-Refunded............................. 19.8
Corporate Supported.......................... 11.3
Housing...................................... 10.0
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
8
<PAGE>
PACE GLOBAL FIXED INCOME INVESTMENTS
ADVISER: Rogge Global Partners plc
OBJECTIVE: High total return
INVESTMENT PROCESS: The adviser believes that financially healthy countries
produce the highest bond and currency returns over time. The Portfolio invests
in high-grade fixed income securities issued by U.S. and foreign governments,
supranational entities and overseas private issuers. Its dollar-weighted average
duration (a measure of sensitivity to interest rate changes) normally ranges
between four and eight years. The adviser uses a top-down analysis to find value
across countries and to forecast interest and currency-exchange rates over a
one-year horizon. An optimization model helps determine country, currency and
duration positions.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio returned 14.29% before deducting the PACE
Program fee. The Portfolio outperformed the Salomon Brothers World Government
Bond Index (the "Index") return of 10.99%. Portfolio net assets totaled $106.6
million as of January 31, 1999.
During the past six months, our outperformance came from several sources. Our
large underweighted position in Japanese bonds was a major contributor as this
market was among the worst performers over the period. Currency allocation
decisions also had a positive impact, as we were generally overweighted in
deutschemarks and yen, both of which performed well. Finally, our relatively
long duration position helped the Portfolio as bond yields in the U.S. and
European markets fell.
In terms of changes to the Portfolio during the past six months, our
allocation to the euro-currency countries increased modestly and changed
composition as we reduced some of our German exposure while raising our Dutch
holdings to 5.7%* and establishing a 4.9% position in France. We also increased
our yen allocation from an underweighted position to an overweighting of 7.6%
versus the benchmark. Although we maintained a relatively long duration position
versus the Index, we reduced the overall Portfolio duration from 7.5 years to
5.9 years over the period.
Looking forward, we expect another good year for global bonds with global
economic forces creating a positive environment for this bond market. Inflation
is under control, as money supply growth in the G-7 has been kept in check. With
the exception of Japan, fiscal policy remains tight with several countries at or
near a fiscal surplus. We anticipate that the European bond markets will
outperform their U.S. counterparts, with Japan underperforming the rest of the
world. In addition to potentially strong returns from bonds, we foresee the U.S.
dollar performing poorly this year, as the forces of global competition remove
much-needed support from the U.S. asset markets.
<TABLE>
<CAPTION>
ASSET ALLOCATION*
- ---------------------------------------------
<S> <C>
Europe....................................... 55.4%
U.S. Treasurys/Gov't Agencies................ 27.4
Emerging Markets............................. 6.2
Canada....................................... 4.1
Cash & Cash Equivalents...................... 3.0
U.S. Corporates.............................. 2.3
Japan........................................ 1.6
-----
Total........................................ 100.0%
-----
-----
<CAPTION>
CREDIT QUALITY*
- ---------------------------------------------
<S> <C>
AAA.......................................... 81.9%
AA........................................... 6.1
A............................................ 1.6
BBB.......................................... 3.3
BB........................................... 4.1
Cash......................................... 3.0
-----
Total........................................ 100.0%
-----
-----
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
9
<PAGE>
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
ADVISER: Brinson Partners, Inc.
OBJECTIVE: Capital appreciation and dividend income
INVESTMENT PROCESS: The Portfolio invests in equity securities that the adviser
considers undervalued. Normally, at least 65% of the Portfolio is invested in
common stocks of companies with market capitalization of at least $2.5 billion
when purchased. Brinson Partners' research focuses on several levels of
analysis, including understanding wealth shifts that occur within the equity
market and individual company research. Stock selection begins with the broad
stock universe within which the adviser looks for undervalued issues. The firm's
analysts conduct primary, fundamental research on a dynamic universe of 700
stocks. The adviser's expectations of a company's ability to generate profit and
to grow its business into the future determine the company's intrinsic value.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio returned 6.10% before deducting the PACE Program
fee. The Portfolio outperformed the Russell 1000 Value Index (the "Index")
return of 5.79%. Portfolio net assets totaled $326.8 million as of January 31,
1999.
The Portfolio's stock selection and industry weightings provided significant
positive results over the past six-month period relative to the Index. The
Portfolio's strategy of underweighting energy (8.3% below the Index as of
January 31, 1999) and banks/thrifts (9.9% below the Index) added value over the
period. Similarly, its overweightings in consumer/ health & drugs and capital
goods/technology produced positive results. The Portfolio's low weighting in
telephone stocks relative to the Index dragged down performance over the period.
Value stocks as measured by the Index lagged the large-capitalization universe
as measured by the S&P 500 Index, which returned 15.02% for the period.
Equity investors continue to be confronted with an overextended stock market
that pays little attention to declining profit expectations. In our view, many
stocks in the global equity markets are overpriced in terms of their
opportunities for profit growth. Market overpricing and economic weakness help
explain the profound performance discrepancies between growth and cyclical,
large- and small-capitalization, and growth and value stocks--a hallmark of
performance in recent years. In the United States, market participants appear to
be extrapolating far into the future the double-digit rates of earnings growth
that were achieved from 1992 through 1997. The Portfolio's positioning remains
consistent with our belief that the market is overextended. The Portfolio
maintains a low exposure to the largest stocks in the market.
<TABLE>
<CAPTION>
TOP FIVE SECTORS*
- ---------------------------------------------
<S> <C>
Technology................................... 11.3%
Services..................................... 10.2
Finance--Non Banking......................... 9.9
Transportation............................... 9.3
Health....................................... 9.2
<CAPTION>
TOP TEN STOCKS*
- ---------------------------------------------
<S> <C>
Xerox Corp. ................................. 6.3%
Burlington Northern Santa Fe, Inc. .......... 4.3
Federal Express Corp. ....................... 3.5
Aetna Life & Casualty Co. ................... 3.3
Lockheed Martin Corp. ....................... 3.3
Philip Morris Co. Inc. ...................... 3.0
Baxter International, Inc.................... 2.9
Raytheon Co. ................................ 2.8
CIGNA Corp. ................................. 2.5
Corning, Inc. ............................... 2.4
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
10
<PAGE>
PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS
ADVISER: Alliance Capital Management L.P.
OBJECTIVE: Capital appreciation
INVESTMENT PROCESS: The Portfolio invests in companies that the adviser believes
have faster rates of earnings growth than the average rate of the companies that
comprise the S&P 500 Index. Normally, at least 65% of the Portfolio is invested
in common stocks of companies with market capitalization of at least $2.5
billion at time of purchase. Alliance chooses stocks by identifying the best
combinations of earnings growth and reasonable valuation. Each stock in the
adviser's research universe is ranked based on analysts' assessments and six
measures of earnings growth and valuation. The Portfolio normally invests in
stocks that rank within the resulting top 30% of the universe.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio returned 18.41% before deducting the PACE
Program fee. For the same period, the Portfolio's benchmark, the Russell 1000
Growth Index, returned 22.80%. Portfolio net assets totaled $351.6 million as of
January 31, 1999.
Performance of equity markets worldwide suffered during the period, reflecting
problems in Russia and Brazil. This severe market decline reversed toward the
end of the calendar year. Technology and consumer services experienced the
strongest recovery by a wide margin. These two sectors represented about 40% of
the Portfolio.* Consumer services benefited from retail holdings and individual
issues including Carnival Corporation (1.1%*), Harley Davidson (1.8%), and
Liberty Media (2.7%). Financial services and consumer staples underperformed,
reflecting concerns about exposure to Latin America and emerging markets.
Our forecast calls for 3% growth in real GDP, accompanied by low inflation and
contained interest rates. In this environment, earnings growth is likely to
remain well rewarded by investors. Thus, we remain focused on technology and
healthcare. The financial services sector also is a prominent holding--we
believe U.S. financial services firms are likely to benefit from global
consolidation as they utilize their resources to increase their share of world
markets. Valuations appear attractive at 60-70% relative price-to-earnings
multiples. We are monitoring earnings expectations for all holdings closely in
order to avoid surprises.
<TABLE>
<CAPTION>
TOP FIVE SECTORS*
- ---------------------------------------------
<S> <C>
Technology................................... 27.9%
Finance...................................... 16.9
Healthcare................................... 16.4
Consumer Services............................ 14.2
Consumer Staples............................. 11.4
<CAPTION>
TOP TEN STOCKS*
- ---------------------------------------------
<S> <C>
Dell Computer Corp........................... 5.1%
Cisco Systems, Inc........................... 5.1
Bristol-Myers Squibb......................... 4.1
MCI Worldcom Inc............................. 3.8
Microsoft Corp............................... 3.6
Schering-Plough Corp......................... 3.5
Intel Corp................................... 3.4
Citigroup, Inc............................... 3.3
Tyco International Ltd. ..................... 3.3
Solectron Corp............................... 3.2
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
11
<PAGE>
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
ADVISER: Brandywine Asset Management, Inc.
OBJECTIVE: Capital appreciation
INVESTMENT PROCESS: The Portfolio invests in equity securities that the adviser
believes are undervalued or overlooked in the market. Such equities usually have
price-to-earnings (P/E) ratios below the market average. Normally, at least 65%
of the Portfolio is invested in common stocks of companies with market
capitalization of less than $2.5 billion at the time of purchase. The adviser
narrows the small company universe to about 650 stocks using three quantitative
screens: positive trailing 12-month operating earnings, lowest P/E quartile
based on trailing 12-month operating earnings, and market cap over $10 million
but below the median cap of the New York Stock Exchange. Fundamental review
further narrows the universe by excluding stocks for: earnings adjustments that
raise P/E above the lowest quartile, pre-announced earnings changes that when
formally reported will raise P/E, strong recent price gains, and severe or
sudden fundamental deterioration.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio lost 6.68% before deducting the Pace Program
fee. The Portfolio outperformed the Russell 2500 Value Index (the "Index"),
which lost 8.59% during the same period. Portfolio net assets totaled $187.9
million as of January 31, 1999.
Throughout the period, small-cap stocks badly trailed larger-cap stocks.
Therefore, the Portfolio's lower capitalization compared to the Index hurt
performance. During the period we reduced our holdings in the financial services
and utilities sectors, as their defensive performance in the first half of the
year meant they no longer offered attractive valuations.
From September through January, the U.S. equity market, including small-cap
stocks, rebounded strongly from its earlier declines. During this upswing the
Portfolio lagged the market and the Index. Technology stocks led the rally,
particularly those companies involved in the Internet. Because few of these
stocks sported cheap valuations, the Portfolio was underweighted in technology
versus the Index and had almost no exposure to Internet stocks. Performance also
was hurt by our significant exposure to economically sensitive industrials and
basic materials, as well as oil-service stocks.
Small-cap value stocks are now at lower valuations relative to the rest of the
U.S. equity market than at any point over the last 20 years. Investors'
expectations for large-cap and Internet stocks have become extremely optimistic
and, we think, vulnerable to disappointment. We believe the combination of
attractively priced small caps and expensive large caps will stimulate demand
for small-cap stocks.
<TABLE>
<CAPTION>
TOP FIVE SECTORS*
- ---------------------------------------------
<S> <C>
Producer Manufacturing....................... 15.7%
Financial Services........................... 15.4
Industrial/Commercial Services............... 10.7
Consumer Durables............................ 9.6
Consumer Non-Durables........................ 8.8
<CAPTION>
TOP TEN STOCKS*
- ---------------------------------------------
<S> <C>
Alliant Techsystems Inc. .................... 1.1%
Boise Cascade Office Products Corp. ......... 0.9
America West Holdings Corp. ................. 0.8
NAC Reinsurance Corp. ....................... 0.8
U.S. Freightways Corp. ...................... 0.8
Centex Construction Products Inc. ........... 0.8
Lone Star Industries, Inc.................... 0.7
Milacron Inc. ............................... 0.7
Polaris Industries Inc. ..................... 0.7
Commonwealth Energy Systems.................. 0.7
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
12
<PAGE>
PACE SMALL/MEDIUM COMPANY GROWTH EQUITY INVESTMENTS
ADVISER: Delaware Management Company, Inc.
OBJECTIVE: Capital appreciation
INVESTMENT PROCESS: The Portfolio invests primarily in common stocks of
"emerging growth" companies, which feature above-average rates of earnings
growth. Normally, at least 65% of the Portfolio is invested in common stocks of
companies with market capitalization of less than $2.5 billion. Up to 5% of the
total assets may be invested in foreign securities, including American
Depository Receipts. The adviser employs a bottom-up, fundamental analysis to
identify companies with annual earnings growth of at least 25% and priced at a
modest premium to the earnings multiples of the S&P 500 Index. Important
criteria include free cash flow, strength of management, degree of insider
ownership and potential for upside surprises.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio returned 11.32% before deducting the PACE
Program fee. The Portfolio outperformed the Russell 2500 Growth Index (the
"Index"), which gained 8.17%. Portfolio net assets totaled $226.7 million as of
January 31, 1999.
The Portfolio performed well throughout this volatile period. Technology and
consumer stocks were strong while financials continued to display weakness after
seven years of outperformance. Notable performers included Gemstar Group Ltd.
(3.1%*), Geotel Communications Corp. (3.9%), Applied Micro Circuits Corp. (3.3%)
and Network Appliance Inc. (2.7%). We expect to continue to emphasize our core
sectors--technology, consumer and financials--in the coming year.
So, where to from here? Small caps are trading at a discount to large caps, a
condition that persisted for the second half of 1998. We have seen this pattern
occur a number of times in the last 25 years. Generally, these periods have been
followed by a one- to two-year period of strong relative performance by small
caps. These upward "corrections" tend to come in brief, powerful rallies.
Therefore, we believe the only way to catch the updrafts is to be invested. Of
course, no assurance can be given that this pattern will occur again, or that
the Portfolio will realize gains.
<TABLE>
<CAPTION>
TOP FIVE SECTORS*
- ---------------------------------------------
<S> <C>
Consumer Cyclical............................ 37.2%
Technology................................... 29.7
Financial.................................... 9.8
Utilities.................................... 6.8
Capital Goods................................ 5.4
<CAPTION>
TOP TEN STOCKS*
- ---------------------------------------------
<S> <C>
EMC Corp..................................... 4.6%
Geotel Communications Corp. ................. 3.9
Veritas Software Co.......................... 3.4
Applied Micro Circuits Corp. ................ 3.3
Gemstar Group Ltd. .......................... 3.1
Chancellor Media Corp. ...................... 3.0
Consolidated Graphics Inc. .................. 3.0
Staples, Inc................................. 2.9
Ambac Financial Group Inc.................... 2.7
Network Appliance............................ 2.7
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
13
<PAGE>
PACE INTERNATIONAL EQUITY INVESTMENTS
ADVISER: Martin Currie Inc.
OBJECTIVE: Capital appreciation
INVESTMENT PROCESS: Normally at least 65% of the Portfolio is invested in equity
securities of companies domiciled in three or more countries outside the United
States. Up to 10% of the Portfolio may be invested in emerging markets. A
significant portion of currency exposure may be hedged back to the U.S. dollar.
The adviser looks for companies that exhibit strong fundamentals and attractive
valuations based on estimates of future earnings. In making country allocation
decisions, the adviser considers such factors as economic and political
stability, the currency outlook, local investor sentiment, breadth and liquidity
of the market, valuation and the reliability of trading systems.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio returned 0.52% before deducting the PACE Program
fee. The Portfolio underperformed the Morgan Stanley Capital International
Europe, Australia and Far East (MSCI EAFE) Index return of 2.32%. Portfolio net
assets totaled $186.2 million as of January 31, 1999.
The period saw some recovery in the Pacific Basin area as well as in Japan.
The Portfolio's underweightings in these regions relative to the EAFE Index
caused it to underperform about 0.4% in the Pacific Basin and 0.6% in Japan. Our
UK stock selection also cost around 0.8% in performance. Stock selection in
Japan and developed Europe collectively added 0.5% to performance, insufficient
to offset the losses from asset allocation. We increased the Portfolio's
exposure to Japan from 15% at the start of the period to 16.2% at the end.*
During that period we also increased exposure to the Pacific Basin from 4% to
6.2%.* These increases were achieved by redeploying cash, which we reduced as it
became clear to us that interest rates would be cut to offset recession.
Our asset allocation is broadly neutral, although the Portfolio is slightly
underweighted in Japan. The Portfolio's emerging market exposure is very modest
as we see little possibility of sustained outperformance among those markets.
Our next move may well be to switch assets from developed Europe into Japan.
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES*
- ---------------------------------------------
<S> <C>
United Kingdom............................... 19.9%
Japan........................................ 16.2
France....................................... 12.8
Germany...................................... 12.8
Italy........................................ 6.2
<CAPTION>
TOP TEN STOCKS*
- ---------------------------------------------
<S> <C>
Mannesman AG................................. 3.9%
Vivendi...................................... 3.6
Novartis AG.................................. 3.1
AXA-UAP...................................... 2.6
Nokia Corp. ................................. 2.4
Allianz AG................................... 2.0
Wolters Kluwer NV............................ 1.8
Royal Ahold NV............................... 1.7
Siemens AG................................... 1.6
Astra AB..................................... 1.6
</TABLE>
* All weightings represent percentages of Portfolio assets, as of January 31,
1999, unless noted otherwise. The Portfolio is actively managed and all
holdings are subject to change.
14
<PAGE>
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
ADVISER: Schroder Capital Management International Inc.
OBJECTIVE: Capital appreciation
INVESTMENT PROCESS: Normally at least 65% of the Portfolio is invested in equity
securities of issuers in three or more emerging-market countries. The adviser's
network of regional specialists and analysts in 12 countries supports an
intensive program of proprietary emerging-markets research. Schroder uses its
research to identify companies with professional management, sustainable
earnings growth, high domestic market share and credible accounting standards.
ADVISER'S COMMENTS
For the six-month period covered by this report--August 1, 1998 through
January 31, 1999--the Portfolio lost 12.09% before deducting the PACE Program
fee. The Portfolio was roughly in line with its benchmark, the Morgan Stanley
Capital International Emerging Markets Free (MSCI EMF) ex-Malaysia Index, which
lost 12.40%. Portfolio net assets totaled $65.8 million as of January 31, 1999.
Given the weakness in emerging stock markets, we maintained a defensive
position throughout much of the six-month period. At the start of the period we
held unusually high levels of cash, which we reduced in early October as
confidence in emerging markets started to improve. We focused on markets where
economic fundamentals remained strong, such as Poland and Mediterranean Europe,
and on countries most committed to restructuring, particularly Korea. During the
period we also hedged the Fund's exposure to the Hong Kong dollar, the Polish
zloty and the Brazilian real.
Our policy continues to have a relative preference for Europe/Middle
East/Africa (EMEA) and Asian markets over those in Latin America. This reflects
our view that most Latin American companies will face a much tougher economic
environment in 1999, whereas much of the EMEA region will continue to enjoy
positive growth and some Asian companies will start to see recovery. Within Asia
the Fund's largest exposure is to Korea (13.4%*), where the large export sector
has been a principal beneficiary of the stronger yen. Asia as a whole likely
will continue to be influenced by the fortunes of the yen.
The key elements of our policy going forwards are as follows:
- - Underweight Latin America following the Brazilian currency devaluation of
January 1999, with Mexico as the favored market. We expect to increase our
exposure to the region when signs of stability return.
- - As lower interest rates help stimulate demand, selectively overweight markets
in Asia, emphasizing those where reforms are under way and economic news is
improving, such as Korea, Thailand and the Philippines.
- - Overweight the EMEA region with a focus on Israel and Eastern Europe
(ex-Russia). We believe the region should remain relatively stable in terms of
economic growth and low interest rates.
While the outlook for many emerging markets has improved, there remain a
number of concerns that warrant a fairly defensive stance. Commodity prices
remain weak, global growth is expected to slow in 1999 and the capital available
to emerging markets remains scarce. Brazil's future is key, with continued
progress on fiscal reform and lower interest rates necessary to underpin
confidence. In the absence of a global recession or a yen collapse, however,
emerging markets should return to favor as investors focus on their low prices
relative to the developed markets.
<TABLE>
<CAPTION>
REGIONAL ALLOCATION*
- ---------------------------------------------
<S> <C>
Europe/Africa................................ 32.8%
Asia......................................... 36.7
Latin America................................ 24.7
Cash......................................... 5.8
-----
Total........................................ 100.0%
-----
-----
<CAPTION>
TOP TEN STOCKS*
- ---------------------------------------------
<S> <C>
Telefonos de Mexico.......................... 3.9%
Samsung Electronics Co. ..................... 3.7
Hellenic Telecom Organization ............... 2.2
Korea Electric Power Corp. .................. 2.1
Hindustan Lever Ltd.......................... 1.7
ECI Telecommunications Ltd. ................. 1.6
Hellenic Bottling Company ................... 1.5
YPF Sociedad Anonima......................... 1.5
Companhia Vale Rio Doce "A".................. 1.5
Taiwan Semiconductor Manufacturing Co. ...... 1.4
</TABLE>
* All weightings represent percentages of Portfolio assets as of January 31,
1999. The Portfolio is actively managed and all holdings are subject to
change.
15
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MONEY MARKET INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- ---------------- -------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--19.60%
$ 900 Federal Farm Credit Bank........................... 02/22/99 to 04/01/99 5.112 to 5.293%* $ 900,000
800 Federal Home Loan Bank............................. 01/19/00 to 01/26/00 4.850 to 5.020 800,000
300 Federal Home Loan Bank............................. 02/02/99 4.847* 299,980
1,000 Federal Home Loan Mortgage Corp. .................. 02/25/99 to 03/19/99 4.920 995,217
800 Federal National Mortgage Association.............. 03/15/99 4.900 795,427
1,800 Student Loan Marketing Association................. 02/02/99 to 01/14/00 5.062 to 5.112* 1,799,809
500 Student Loan Marketing Association................. 01/14/00 5.000 500,000
-------------
Total U.S. Government Agency Obligations (cost--$6,090,433).... 6,090,433
-------------
BANK NOTES (DOMESTIC)--2.25%
400 First Tennessee Bank NA Memphis.................... 01/14/00 5.100 400,000
300 Harris Trust & Savings Bank........................ 01/24/00 5.020 300,029
-------------
Total Bank Notes (Domestic) (cost--$700,029)................... 700,029
-------------
CERTIFICATES OF DEPOSIT--9.98%
DOMESTIC--0.65%
200 Bankers Trust Co. ................................. 02/01/99 4.820* 199,954
-------------
YANKEE--9.33%
300 Bank of Nova Scotia................................ 01/14/00 5.050 299,973
400 Barclays Bank PLC.................................. 01/10/00 4.980 399,928
400 Credit Agricole Indosuez........................... 05/19/99 5.750 399,893
500 Deutsche Bank AG................................... 08/23/99 5.600 500,000
300 Royal Bank of Canada............................... 06/23/99 5.695 299,966
300 Societe Generale................................... 07/02/99 5.730 299,976
300 Svenska Handelsbanken.............................. 07/23/99 5.685 300,265
400 Toronto Dominion Bank.............................. 01/07/00 4.990 399,964
-------------
2,899,965
-------------
Total Certificates of Deposit (cost--$3,099,919)............... 3,099,919
-------------
COMMERCIAL [email protected]%
ASSET-BACKED--17.84%
1,100 Beta Finance Inc. ................................. 02/19/99 to 03/08/99 4.900 to 5.270 1,095,931
1,365 Quincy Capital Corp. .............................. 02/25/99 4.860 1,360,577
1,119 Receivables Capital Corp. ......................... 02/04/99 5.340 1,118,502
1,000 Triple-A One Funding Corp. ........................ 02/01/99 4.880 1,000,000
969 Variable Funding Capital Corp. .................... 02/04/99 4.950 968,600
-------------
5,543,610
-------------
AUTO & TRUCK--8.71%
923 Ford Motor Credit Corp. ........................... 04/06/99 4.800 915,124
1,096 General Motors Acceptance Corp. ................... 02/17/99 to 03/01/99 4.830 1,092,303
700 PACCAR Financial Corp. ............................ 02/04/99 4.850 699,717
-------------
2,707,144
-------------
BANKING--4.33%
150 Bankers Trust Corp. ............................... 03/16/99 5.508 149,013
400 J.P. Morgan & Company, Inc. ....................... 03/22/99 5.200 397,169
800 Nordbanken North America Inc. ..................... 02/12/99 5.470 798,663
-------------
1,344,845
-------------
</TABLE>
16
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MONEY MARKET INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- ---------------- -------------
<C> <S> <C> <C> <C>
</TABLE>
COMMERCIAL PAPER@--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
BROKER--DEALER--5.52%
$ 1,120 Goldman Sachs Group L.P. .......................... 02/09/99 to 02/10/99 4.850 to 4.930% $ 1,118,714
300 Lehman Brothers Holdings Inc. ..................... 02/19/99 5.530 299,170
300 Merrill Lynch & Co. Inc. .......................... 04/30/99 5.470 295,989
-------------
1,713,873
-------------
BUSINESS SERVICES--5.10%
500 Block Financial Corp. ............................. 02/26/99 4.850 498,316
1,088 Xerox Capital...................................... 02/02/99 4.820 1,087,854
-------------
1,586,170
-------------
COMPUTERS--3.21%
1,000 IBM Credit Corp. .................................. 02/22/99 4.830 997,183
-------------
CONSUMER PRODUCTS--3.91%
1,216 Procter & Gamble Co. .............................. 02/05/99 4.800 1,215,352
-------------
ELECTRONICS--1.90%
591 Emerson Electric Co. .............................. 02/19/99 5.150 589,478
-------------
ENERGY--3.22%
1,000 Chevron USA Inc. .................................. 02/08/99 4.860 999,055
-------------
FOOD, BEVERAGE & TOBACCO--0.78%
250 Campbell Soup Co. ................................. 09/03/99 5.120 242,391
-------------
TELECOMMUNICATIONS--3.21%
1,000 Bellsouth Capital Funding Corp. ................... 02/11/99 5.130 998,575
-------------
UTILITY--ELECTRIC--1.61%
500 Southern Co. ...................................... 02/02/99 5.100 499,929
-------------
Total Commercial Paper (cost--$18,437,605)..................... 18,437,605
-------------
SHORT-TERM CORPORATE OBLIGATIONS--10.14%
BANKING--1.61%
200 Bankers Trust Corp. ............................... 02/19/99 5.379* 199,999
300 Norwest Corp. ..................................... 08/31/99 5.550 299,950
-------------
499,949
-------------
BROKER--DEALER--4.51%
300 Bear Stearns Co. Inc. ............................. 02/22/99 4.925* 300,000
500 Credit Suisse First Boston......................... 02/02/99 4.992* 500,000
200 Goldman Sachs Group L.P. .......................... 09/15/99 6.875 201,435
400 Lehman Brothers Holdings Inc. ..................... 02/01/99 4.970* 400,000
-------------
1,401,435
-------------
</TABLE>
17
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MONEY MARKET INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATES VALUE
- --------- -------------------- ---------------- -------------
<C> <S> <C> <C> <C>
</TABLE>
SHORT-TERM CORPORATE OBLIGATIONS--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
INSURANCE--4.02%
$ 1,250 Prudential Funding Corp. .......................... 02/02/99 4.912 to 5.032% $ 1,250,000
-------------
Total Short-Term Corporate Obligations (cost--$3,151,384)...... 3,151,384
-------------
Total Investments (cost--$31,479,370)--101.31%................. 31,479,370
Liabilities in excess of other assets--(1.31)%................. (406,121)
-------------
Net Assets--100.00%............................................ $ 31,073,249
-------------
-------------
</TABLE>
- -----------------
* Variable rate security--Maturity dates reflect earlier of reset date or
maturity date. The interest rates shown are current rates as of January
31, 1999 and reset periodically.
@ Interest rates shown are discount rates at date of purchase.
Weighted average maturity--77 days
See accompanying notes to financial statements
18
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- ---------------- -------------
<C> <S> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--42.09%
$ 466 GNMA..................................................... 09/15/01 6.800% $ 470,651
7,288 GNMA..................................................... 01/20/18 to 02/20/27 6.875 7,436,432
7,520 GNMA..................................................... 05/15/02 to 12/20/27 7.000 7,660,452
62 GNMA..................................................... 06/20/22 7.125 63,142
1,282 GNMA..................................................... 01/15/00 7.470 1,294,236
45,276 GNMA..................................................... 12/15/99 to 09/15/23 7.500 46,823,084
113 GNMA II ARM.............................................. 04/20/18 7.125 115,445
14,000 GNMA TBA................................................. TBA 7.000 14,354,530
-------------
Total Government National Mortgage Association Certificates
(cost--$77,972,496)................................................ 78,217,972
-------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES--25.37%
2,406 FHLMC.................................................... 07/01/28 6.000 2,381,525
1,326 FHLMC.................................................... 11/01/02 7.000 1,348,807
19,486 FHLMC.................................................... 10/01/17 to 11/01/28 7.500 20,072,365
7,518 FHLMC.................................................... 03/01/13 to 06/01/27 8.000 7,817,144
814 FHLMC.................................................... 04/01/04 8.500 836,571
13,800 FHLMC TBA................................................ TBA 6.000 13,673,399
1,000 FHLMC TBA................................................ TBA 6.500 1,012,277
-------------
Total Federal Home Loan Mortgage Corporation Certificates
(cost--$46,914,008)................................................ 47,142,088
-------------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES--4.48%
8,112 FHA Project Notes (cost--$8,312,983)..................... 05/01/17 to 02/01/29 7.000 to 7.880 8,321,815
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--9.87%
3,254 FNMA..................................................... 10/01/26 to 11/01/26 7.500 3,353,897
3,569 FNMA..................................................... 07/01/25 to 07/01/27 8.000 3,716,782
8,925 FNMA..................................................... 02/01/25 to 09/01/27 8.500 9,392,021
1,764 FNMA..................................................... 10/01/19 to 02/01/26 9.000 1,882,211
-------------
Total Federal National Mortgage Association Certificates
(cost--$18,093,672)................................................ 18,344,911
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS--31.52%
123 FHLMC GNMA REMIC Series 23, Class KZ..................... 11/25/23 6.500 120,746
650 FHLMC REMIC Series 159, Class H.......................... 09/15/21 4.500@ 632,143
117 FHLMC REMIC Series 1198, Class G......................... 07/15/05 6.750 117,097
316 FHLMC REMIC Series 1347, Class HC........................ 12/15/21 4.250@ 302,668
430 FHLMC REMIC Series 1425, Class E......................... 08/15/05 6.500 431,881
814 FHLMC REMIC Series 1484, Class E......................... 03/15/17 6.000 812,611
1,052 FHLMC REMIC Series 1489, Class F......................... 07/15/05 5.500 1,051,739
632 FHLMC REMIC Series 1491, Class E......................... 02/15/17 5.000 629,941
573 FHLMC REMIC Series 1500, Class E......................... 08/15/16 6.000 574,485
996 FHLMC REMIC Series 1502, Class PX........................ 04/15/23 7.000 1,003,581
529 FHLMC REMIC Series 1534, Class Z......................... 06/15/23 5.000 472,182
1,468 FHLMC REMIC Series 1542, Class Z......................... 07/15/23 7.000 1,446,948
161 FHLMC REMIC Series 1573, Class PZ........................ 09/15/23 7.000 167,375
663 FHLMC REMIC Series 1595, Class A......................... 06/15/11 5.600 662,095
515 FHLMC REMIC Series 1640, Class F......................... 10/15/07 5.400 516,237
135 FHLMC REMIC Series 1658, Class GZ........................ 01/15/24 7.000 137,073
61 FHLMC REMIC Series 1693, Class D......................... 12/15/04 5.350 60,562
907 FHLMC REMIC Series 1694, Class Z......................... 03/15/24 6.500 900,074
97 FHLMC REMIC Series 1775, Class Z......................... 03/15/25 8.500 106,547
</TABLE>
19
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- ---------------- -------------
<C> <S> <C> <C> <C>
</TABLE>
COLLATERALIZED MORTGAGE OBLIGATIONS--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
$ 498 FHLMC REMIC Series 1779, Class H......................... 01/15/00 8.500% $ 502,815
3,085 FHLMC REMIC Series 1869, Class J......................... 12/15/24 8.000 3,175,332
1,165 FHLMC REMIC Series 1933, Class ZA........................ 02/15/27 8.000 1,252,603
85 FNMA REMIC Trust 1992 - 74, Class Z...................... 05/25/22 8.000 88,600
165 FNMA REMIC Trust 1992 - 129, Class L..................... 07/25/22 6.000 159,840
7 FNMA REMIC Trust 1992 - 201, Class A..................... 12/25/19 6.250 6,625
372 FNMA REMIC Trust 1992 - 216, Class E..................... 03/25/13 7.000 372,237
1,127 FNMA REMIC Trust 1993 - 37, Class PX..................... 03/25/23 7.000 1,135,695
421 FNMA REMIC Trust 1993 - 40, Class ZA..................... 12/25/23 6.500 401,856
2,215 FNMA REMIC Trust 1993 - 49, Class C...................... 04/25/10 6.000 2,213,479
790 FNMA REMIC Trust 1993 - 53, Class E...................... 04/25/17 5.750 787,746
161 FNMA REMIC Trust 1993 - 162, Class C..................... 08/25/23 3.000@ 157,655
1,250 FNMA REMIC Trust 1993 - 201, Class E..................... 12/25/15 5.500 1,246,962
41 FNMA REMIC Trust 1993 - 240, Class Z..................... 12/25/13 6.250 40,621
1,069 FNMA REMIC Trust 1993 - 250, Class DZ.................... 12/25/23 7.000 1,081,347
64 FNMA REMIC Trust 1993 - 250, Class Z..................... 12/25/23 7.000 68,635
70 FNMA REMIC Trust 1994 - 27, Class CZ..................... 02/25/24 6.500 66,871
1,117 FNMA REMIC Trust 1996 - 2, Class B....................... 10/22/09 7.500 1,114,122
313 FNMA REMIC Trust 1997 - 35, Class PL..................... 05/18/13 6.500 313,224
89 FNMA REMIC Trust 1997 - 81, Class A...................... 12/18/04 6.875 88,564
978 FNMA REMIC Trust G92 - 40, Class ZC...................... 07/25/22 7.000 988,195
486 FNMA REMIC Trust G92 - 44, Class FC...................... 08/25/00 5.491 484,039
148 FNMA REMIC Trust G94 - 6, Class PJ....................... 05/17/24 8.000 166,937
794 Bear Stearns Mortgage Securities Inc. Series 1993-8,
Class A-5.............................................. 08/25/24 6.350 796,332
1,750 Chase Mortgage Finance Corp. Series 1998, Class IA-8..... 08/25/28 6.750 1,720,184
1,495 Citicorp Mortgage Securities Inc. REMIC Series 1998-8,
Class A................................................ 09/25/28 6.750 1,513,791
928 CMC Securities Corp. III Series 1998 - 1, Class 3A....... 04/25/28 6.892++ 932,564
1,500 Countrywide Home Loans Series 1998-15, Class A8.......... 10/25/28 6.750 1,514,505
2,000 Firstplus Home Loan Owner Trust Series 1998 - 1, Class
A2..................................................... 11/10/10 5.970++ 2,001,080
1,468 Headlands Mortgage Security Inc. REMIC Series 1997 - 1,
Class A II............................................. 03/25/12 7.750 1,476,466
1,016 Headlands Mortgage Security Inc. REMIC Series 1997 - 2,
Class A II............................................. 05/25/12 7.750 1,026,284
733 Headlands Mortgage Security Inc. REMIC Series 1997 - 4,
Class A II............................................. 11/25/12 7.250 736,444
1,500 Headlands Mortgage Security Inc. REMIC Series 1998 - 1,
Class A3............................................... 11/25/28 6.500 1,495,860
556 Independent National Mortgage Corp. Series 1994 - Q,
Class A5............................................... 09/25/14 7.500 555,133
2,948 Norwest Asset Securities Corp. REMIC Series 1997 - 2,
Class A8............................................... 03/25/27 7.500 3,035,172
1,982 Norwest Asset Securities Corp. REMIC Series 1998 - 1,
Class A3............................................... 02/25/28 7.000 1,998,684
2,492 Norwest Asset Securities Corp. REMIC Series 1998 - 23,
Class A13.............................................. 10/25/28 6.750 2,523,367
2,000 PNC Mortgage Securities Corp. Series 1998 - 2, Class
4A2.................................................... 12/25/27 6.750 2,018,591
2,000 PNC Mortgage Securities Corp. Series 1998 - 5, Class
2A5.................................................... 07/25/28 6.750 2,025,135
454 Prudential Home Mortgage REMIC 1993 - 29, Class A8....... 08/25/08 6.750 457,662
51 Prudential Home Mortgage REMIC 1993 - 43, Class A1....... 10/25/23 5.400 51,055
1,279 Prudential Home Mortgage REMIC 1993 - 54, Class A19...... 01/25/24 6.500 1,221,335
1,500 Residential Asset Securitization Trust Series 1998 -
Class A13.............................................. 12/25/28 6.500 1,490,970
2,000 Residential Funding Mortgage Securities Inc. Series 1997
- S14, Class A6........................................ 10/25/27 7.250 2,035,492
1,500 Residential Funding Mortgage Securities Inc. Series 1998
- S12, Class A6........................................ 05/25/28 6.750 1,489,498
</TABLE>
20
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- ---------------- -------------
<C> <S> <C> <C> <C>
</TABLE>
COLLATERALIZED MORTGAGE OBLIGATIONS--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 363 Resolution Trust Corp. REMIC Series 1992 - 3, Class A2
ARM.................................................... 09/25/19 6.786% $ 361,501
33 Resolution Trust Corp. REMIC Series 1995 - C1, Class A3
ARM.................................................... 02/25/27 5.450 32,617
-------------
Total Collateralized Mortgage Obligations (cost--$57,181,081)........ 58,569,707
-------------
STRIPPED MORTGAGE-BACKED SECURITIES+--0.92%
1,270 FHLMC REMIC Series 1554, Class I+++...................... 08/15/08 8.190* 135,118
35 FHLMC REMIC Series 1700, Class D++....................... 02/15/24 0.000(1) 34,729
10 FNMA REMIC Trust 1992 - 142, Class KB+++................. 08/25/07 11.980* 220,024
11 FNMA REMIC Trust 1992 - 157, Class JA+++................. 09/25/07 10.146* 228,004
2,871 FNMA REMIC Trust 1993 - 131, Class JB+++................. 05/25/05 6.820* 64,905
1,768 FNMA REMIC Trust 1993 - 137, Class PN+++................. 12/25/16 6.870* 63,881
195 FNMA REMIC Trust 1993 - 161, Class GC++.................. 02/25/23 0.000(2) 169,095
2,126 FNMA REMIC Trust 1994 - 7, Class PK+++................... 05/25/08 7.200* 160,126
1,942 FNMA REMIC Trust 1994 - 30, Class IA+++.................. 11/25/22 6.820* 248,170
1,500 Firstplus Home Loan Owner Trust Series 1998 - 5, Class
A1+++.................................................. 10/10/00 6.420* 135,000
4,000 Residential Funding Mortgage Securities Inc. Series 1998
- H12, Class A6+++..................................... 06/25/00 8.110* 247,500
-------------
Total Stripped Mortgage-Backed Securities (cost--$1,678,517)......... 1,706,552
-------------
ASSET-BACKED SECURITIES--0.50%
535 Chase Manhattan Grantor Trust Series 1995 - B, Class A... 11/15/01 5.900 535,723
394 Premier Auto Trust Series 1995 - 3, Class A5............. 03/06/00 6.150 394,390
-------------
Total Asset-Backed Securities (cost--$927,862)....................... 930,113
-------------
AGENCY-BACKED SECURITIES--4.84%
1,396 Student Loan Marketing Association Series 96 - 2, Class
A1..................................................... 10/25/04 5.005++ 1,386,851
4,590 Student Loan Marketing Association Series 97 - 2, Class
A1..................................................... 10/25/05 5.035++ 4,550,424
3,097 Student Loan Marketing Association Series 97 - 3, Class
A1..................................................... 04/25/06 5.095++ 3,059,220
-------------
Total Agency-Backed Securities (cost--$9,059,409).................... 8,996,495
-------------
COMMERCIAL [email protected]%
3,100 Abbott Laboratories...................................... 02/12/99 4.820 3,095,434
4,000 Coca Cola Company........................................ 02/22/99 4.830 3,988,753
9,000 Ford Motor Credit Corp................................... 04/08/99 4.830 8,920,800
300 Lilly (Eli) & Co......................................... 03/12/99 4.750 298,456
1,600 National Rural Utilities Cooperative Finance............. 03/08/99 4.780 1,592,565
-------------
Total Commercial Paper (cost--$17,896,008)........................... 17,896,008
-------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--10.66%
5,000 Federal Home Loan Mortgage Discount Notes................ 02/16/99 4.720 4,990,167
4,000 Student Loan Marketing Association....................... 06/30/00 5.684++ 3,989,080
800 U.S. Treasury Bonds...................................... 02/15/20 8.500 1,114,750
9,730 U.S. Treasury Inflation Index Notes...................... 07/15/02 3.625 9,718,117
-------------
Total U.S. Government and Agency Obligations (cost--$19,811,082)..... 19,812,114
-------------
</TABLE>
21
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- --------- -------------------- ---------------- -------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--0.05%
$ 97 Repurchase Agreement dated 01/29/99 with State Street
Bank & Trust Company, collateralized by $95,000 U.S.
Treasury Notes, 5.750% due 04/30/03 (value--$99,988);
proceeds: $97,032 (cost--$97,000)...................... 02/01/99 4.000% $ 97,000
-------------
Total Investments (cost--$257,944,118)--139.93%...................... 260,034,775
Liabilities in excess of other assets--(39.93)%...................... (74,206,014)
-------------
Net Assets--100.00%.................................................. $185,828,761
-------------
-------------
</TABLE>
- -----------------
++ Floating rate securities--The interest rates shown are the current rates
as of January 31, 1999.
+ Illiquid securities representing 0.92% of net assets.
++ 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 the 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.
@ Interest rate shown is discount rate at date of purchase.
* Rate reflects annualized yield at date of purchase.
(1) Estimated yield to maturity at January 31, 1999 is 6.601%.
(2) Estimated yield to maturity at January 31, 1999 is 3.381%.
ARM Adjustable Rate Mortgage--The interest rates shown are the current rates
as of January 31, 1999.
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.
See accompanying notes to financial statements
22
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERMEDIATE FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- -------------------- -------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--37.82%
$44,950 U.S. Treasury Notes (1) (cost--$45,082,984)........ 10/31/00 to 10/15/06 4.000 to 7.500% $ 45,803,134
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--1.91%
1,605 GNMA............................................... 10/20/27 to 11/20/27 6.000 1,619,943
62 GNMA............................................... 11/20/01 8.500 63,157
379 GNMA............................................... 12/15/01 to 01/15/02 9.000 393,840
226 GNMA............................................... 07/15/04 to 09/15/04 9.500 240,016
-------------
Total Government National Mortgage Association Certificates
(cost--$2,310,060)........................................... 2,316,956
-------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES--0.36%
9 FHLMC.............................................. 12/01/99 5.500 8,602
203 FHLMC.............................................. 03/01/00 7.000 205,732
215 FHLMC.............................................. 06/01/02 8.000 219,402
-------------
Total Federal Home Loan Mortgage Corporation Certificates
(cost--$430,438)............................................. 433,736
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--10.18%
8,426 FNMA............................................... 09/01/28 to 11/01/28 6.500 8,501,675
2,063 FNMA............................................... 09/01/25 7.000 2,108,236
672 FNMA............................................... 06/01/10 to 09/01/10 7.500 692,339
745 FNMA............................................... 03/01/04 8.000 764,163
233 FNMA............................................... 09/01/07 13.000 259,958
-------------
Total Federal National Mortgage Association Certificates
(cost--$12,269,201).......................................... 12,326,371
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS--9.75%
444 FDIC REMIC Trust Series 1994-C1, Class 2A2......... 09/25/25 7.850 448,338
1,565 FDIC REMIC Trust Series 1996-C1, Class 1A.......... 05/25/26 6.750 1,564,799
209 FHLMC Series 1497, Class O......................... 10/15/22 7.000 209,693
119 FHLMC Series 1588, Class TB........................ 06/15/23 6.500 119,326
354 FHLMC Series 1865, Class VA........................ 12/15/10 7.500 355,347
280 FNMA REMIC Trust 1989-101, Class G................. 03/25/19 8.000 280,585
253 FNMA REMIC Trust 1990-114, Class D................. 05/25/16 9.000 255,019
47 FNMA REMIC Trust 1991-04, Class E.................. 09/25/05 8.250 47,652
675 FNMA REMIC Trust 1993-70, Class C.................. 03/25/18 6.900 680,400
67 FNMA REMIC Trust 1996-41, Class A.................. 06/25/20 7.750 67,098
720 Aames Mortgage Trust Series 1996-D, Class A1G...... 03/15/29 7.320 751,773
572 Aetna Commercial Mortgage Corp..................... 12/26/30 6.590 574,996
57 American Southwest Financial Co.................... 03/01/18 9.000 56,912
1,201 BA Mortgage Securities Inc. Series 1997-2, Class
1A5.............................................. 10/25/27 7.250 1,234,111
1,565 EMAC Trust Series 1998-1, Class 1A................. 07/15/03 6.110 1,563,007
547 Norwest Asset Securities Corp. Series 1997-5, Class
A2............................................... 04/25/12 7.000 551,247
403 Resolution Trust Corp. Series 1995-C1, Class A2C... 02/25/27 6.900 412,139
1,442 Resolution Trust Corp. Series 1995-C2, Class D..... 05/25/27 7.000 1,441,338
1,000 Structured Asset Securities Corp. Series 1995-C4,
Class D.......................................... 06/25/26 7.000 1,004,688
195 Structured Asset Securities Corp. Series 1996-CFL,
Class A1C........................................ 02/25/28 5.944 194,684
-------------
Total Collateralized Mortgage Obligations
(cost--$11,770,435).......................................... 11,813,152
-------------
ASSET-BACKED SECURITIES--4.83%
1,970 California Infrastructure, Class A5................ 06/25/04 6.250 2,028,982
179 Continental Airlines Trust Series 1997-4, Class
4C............................................... 01/02/09 6.800 180,493
717 EQCC Home Equity Loan Trust Series 1996, Class A... 01/15/12 6.950 723,272
260 Money Store Trust Series 1997-C, Class AH5......... 02/15/15 6.590 264,841
1,081 NYCTL Trust Series 1998-2, Class A................. 07/25/06 7.980 1,063,215
955 Team Fleet Financing Corp. Series 1998-2, Class
A................................................ 07/25/02 6.070 957,388
</TABLE>
23
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERMEDIATE FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- -------------------- -------------
<C> <S> <C> <C> <C>
</TABLE>
ASSET-BACKED SECURITIES--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 600 UCFC Loan Trust Series 1996-B1, Class A7........... 11/15/27 8.200% $ 625,500
-------------
Total Asset-Backed Securities (cost--$5,760,684)............... 5,843,691
-------------
CORPORATE NOTES--34.27%
895 ABN Amro Bank NV................................... 05/31/05 7.250 953,990
955 Aetna Services Inc................................. 08/15/06 7.125 1,002,400
435 AON Corp........................................... 10/01/99 6.875 438,690
950 Ahmanson (H.F.) & Companies Inc.................... 10/01/02 8.250 1,026,796
201 Anheuser-Busch Companies Inc....................... 03/01/17 8.500 201,416
625 Associates Corp. NA................................ 11/01/03 5.750 634,438
1,155 BankAmerica Corp................................... 11/15/04 8.950 1,179,433
910 BankBoston NA MTN.................................. 03/25/08 6.375 916,861
870 Beneficial Corp.................................... 12/15/04 6.810 905,305
965 Carnival Corp...................................... 04/15/08 6.150 982,454
450 Carolina Telephone & Telegraph Co.................. 05/01/03 6.125 461,300
135 Chubb Corp......................................... 11/15/99 8.750 136,080
910 CNA Financial Corp................................. 04/15/05 6.500 918,905
900 Computer Associates International Inc.............. 04/15/03 6.250 907,847
1,010 Conseco Inc. MTN................................... 06/15/01 6.400 984,831
258 Continental Bank NA................................ 04/01/01 12.500 290,504
150 Continental Corp................................... 04/15/99 8.250 150,609
635 Countrywide Funding Corp. MTN...................... 09/16/03 7.450 665,240
111 Dexter Corp........................................ 12/15/16 9.250 115,355
960 Eastman Chemical Co................................ 01/15/04 6.375 964,869
950 Federal Realty Investment Trust.................... 01/15/00 8.875 977,167
740 First Bank Systems Inc............................. 05/01/05 7.625 815,435
371 First Data Corp.................................... 04/01/03 6.625 386,671
1,000 First Union Corp................................... 11/15/04 8.770 1,018,023
735 First USA Bank MTN................................. 12/03/01 6.625 755,397
1,150 Ford Motor Credit Corp............................. 11/19/99 to 02/28/02 6.500 to 7.500 1,174,602
1,225 Ford Motor Credit MTN.............................. 12/30/14 9.140 1,433,090
990 Frontier Corp...................................... 05/15/04 7.250 1,062,117
410 Health Care Property Investments Inc............... 02/15/06 6.500 389,843
1,200 Household Finance Corp............................. 06/30/00 6.375 1,215,061
200 ITT Corp........................................... 03/01/06 8.750 188,768
885 JC Penney Inc...................................... 04/01/07 7.600 959,236
500 K Mart Corp. MTN................................... 07/06/99 7.240 499,652
1,645 Kimco Realty Corp.................................. 10/01/03 to 11/14/05 6.500 to 6.830 1,625,529
900 Lockheed Martin Corp............................... 05/15/06 7.250 979,771
305 Lucent Technologies Inc............................ 07/15/06 7.250 341,309
1,000 Marriott International Incorporated................ 11/15/03 6.625 1,000,436
920 MCI Worldcom Inc................................... 04/01/04 7.550 999,901
490 Mellon Bank NA..................................... 06/01/03 6.750 512,856
650 Mellon Financial Co................................ 11/15/03 5.750 655,206
123 Mobil Oil Corp..................................... 02/29/00 9.170 125,114
950 New Plan Realty Trust Corp......................... 04/06/05 7.750 994,405
700 New York State Electric & Gas Corp................. 05/01/20 9.875 759,823
1,090 Noram Energy Corp.................................. 11/01/03 6.375 1,106,982
780 Oracle Corp........................................ 02/15/04 6.720 810,393
1,125 PNC Bank, NA....................................... 04/15/05 7.875 1,241,929
980 Sears Roebuck Acceptance Corp...................... 03/20/03 6.000 992,334
780 Southern Investments PLC........................... 12/01/06 6.800 810,057
500 Sovran Financial Corp.............................. 06/15/06 9.250 591,961
430 Time Warner Entertainment Company LP............... 09/01/08 7.250 474,103
250 TTX Co. MTN........................................ 07/15/27 5.980 252,387
660 U.S. West Capital Funding Inc...................... 07/15/02 6.125 677,631
550 Virginia Electric & Power Co....................... 03/01/25 8.250 625,328
100 Wal-Mart Stores Inc................................ 06/29/11 8.875 103,488
1,100 Xerox Corp. MTN.................................... 12/15/03 5.250 1,100,958
-------------
Total Corporate Notes (cost--$40,840,996)...................... 41,494,286
-------------
</TABLE>
24
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERMEDIATE FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- --------- -------------------- -------------------- -------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--0.53%
$ 644 Repurchase Agreement dated 01/29/99 with State
Street Bank & Trust Company, collateralized by
$636,260 U.S. Treasury Notes, 5.375% due 01/31/00
(value--$656,939); proceeds: $644,215
(cost--$644,000)................................. 02/01/99 4.000% $ 644,000
-------------
Total Investments (cost--$119,108,798)--99.65%................. 120,675,326
Other assets in excess of liabilities--0.35%................... 420,944
-------------
Net Assets--100.00%............................................ $121,096,270
-------------
-------------
</TABLE>
- -----------------
FDIC Federal Deposit Insurance Corporation.
MTN Medium Term Notes.
REMIC Real Estate Mortgage Investment Conduit.
(1) Security, or portion thereof, was on loan at January 31, 1999.
See accompanying notes to financial statements
25
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE STRATEGIC FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- --------------------- -------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--24.26%
$ 8,350 Federal Farm Credit Banks Consolidated Systems
MTN............................................. 11/27/06 6.380% $ 8,913,767
19,050 U.S. Treasury Bonds............................... 08/15/13 to 02/15/26 6.000 to 12.000 26,135,803
7,133 U.S. Treasury Inflation Index Notes............... 07/15/02 to 01/15/08 3.625 7,083,735
1,400 U.S. Treasury Notes............................... 01/15/09 3.875 1,412,250
-------------
Total U.S. Government and Agency Obligations
(cost--$43,643,693)......................................... 43,545,555
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--5.83%
7,970 GNMA.............................................. 10/15/23 6.610 8,073,780
1,260 GNMA.............................................. 05/20/26 6.875 1,282,575
843 GNMA ARM.......................................... 01/20/26 6.875 857,997
240 GNMA ARM.......................................... 11/20/23 6.125 245,967
-------------
Total Government National Mortgage Association Certificates
(cost--$10,428,673)......................................... 10,460,319
-------------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES--2.62%
2,258 FHA Project Notes................................. 08/01/20 to 07/01/25 7.430 2,340,682
2,280 FHA Project Notes................................. 10/01/20 to 06/01/21 7.430 2,365,000
-------------
Total Federal Housing Administration Certificates
(cost--$4,644,108).......................................... 4,705,682
-------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES--2.33%
4,416 FHLMC (cost--$4,201,838).......................... 01/15/24 to 06/15/28 6.500 4,182,758
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--7.19%
1,334 FNMA.............................................. 05/01/36 6.007 1,343,762
307 FNMA.............................................. 11/01/35 6.015 308,768
2,102 FNMA.............................................. 03/01/27 6.785 2,162,481
1,012 FNMA.............................................. 04/01/27 7.404 1,043,918
1,366 FNMA.............................................. 05/01/27 7.171 1,408,953
674 FNMA ARM.......................................... 03/01/27 to 08/01/28 6.012 678,055
36 FNMA ARM.......................................... 12/01/17 5.875 37,413
1,481 FNMA COFI ARM..................................... 11/01/26 4.917 1,390,862
4,500 FNMA COFI TBA..................................... TBA 6.150 4,529,531
-------------
Total Federal National Mortgage Association Certificates
(cost--$12,924,161)......................................... 12,903,743
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS--42.43%
1,000 FHLMC REMIC Series 1278 Class K................... 05/15/22 7.000 1,040,137
100 FHLMC REMIC Series 1366 Class H................... 08/15/07 6.000 99,187
29 FHLMC REMIC Series 1367 Class KA.................. 09/15/22 6.500 29,154
1,108 FHLMC REMIC Series 1502 Class PX-Z................ 04/15/23 7.000 1,116,427
789 FHLMC REMIC Series 1503 Class PZ.................. 05/15/23 7.000 807,928
449 FHLMC REMIC Series 1534 Class Z................... 06/15/23 5.000 401,354
706 FHLMC REMIC Series 1548 Class Z................... 07/15/23 7.000 716,241
1,029 FHLMC REMIC Series 1562 Class Z................... 07/15/23 7.000 1,047,107
169 FHLMC REMIC Series 1601 Class PB.................. 11/15/23 6.500 163,442
136 FHLMC REMIC Series 1611 Class I................... 02/15/23 6.000 136,907
722 FHLMC REMIC Series 1628 Class KZ.................. 12/15/23 6.250 697,388
276 FHLMC REMIC Series 1694 Class Z................... 03/15/24 6.500 274,231
2,000 FHLMC REMIC Series 2080 Class PJ.................. 08/15/28 6.500 2,016,880
1,027 FHLMC REMIC Series 2080 Class Z................... 08/15/28 6.500 992,167
283 FHLMC REMIC Series G15 Class PZ................... 07/25/23 7.000 273,155
280 FHLMC REMIC Series G23 Class KZ................... 11/25/23 6.500 274,424
</TABLE>
26
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE STRATEGIC FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- --------------------- -------------
<C> <S> <C> <C> <C>
</TABLE>
COLLATERALIZED MORTGAGE OBLIGATIONS--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 1,398 FHLMC REMIC Series G24 Class ZA................... 11/25/23 6.500% $ 1,333,262
186 FNMA REMIC Trust 1991-65 Class Z.................. 06/25/21 6.500 185,039
75 FNMA REMIC Trust 1992-118 Class K................. 09/25/08 7.500 77,980
160 FNMA REMIC Trust 1992-129 Class L................. 07/25/22 6.000 154,996
541 FNMA REMIC Trust 1992-G40 Class ZC................ 07/25/22 7.000 547,406
78 FNMA REMIC Trust 1993-37 Class PX................. 03/25/23 7.000 78,741
166 FNMA REMIC Trust 1993-56 Class PZ................. 05/25/23 7.000 170,676
294 FNMA REMIC Trust 1993-60 Class Z.................. 05/25/23 7.000 303,340
687 FNMA REMIC Trust 1993-65 Class ZZ................. 06/25/13 7.000 713,194
126 FNMA REMIC Trust 1993-70 Class Z.................. 05/25/23 6.900 126,684
362 FNMA REMIC Trust 1993-96 Class Z.................. 06/25/23 7.000 374,715
279 FNMA REMIC Trust 1993-122 Class L................. 01/25/23 6.500 278,483
76 FNMA REMIC Trust 1993-149 Class L................. 08/25/23 6.000 74,630
137 FNMA REMIC Trust 1993-160 Class ZB................ 09/25/23 6.500 133,482
132 FNMA REMIC Trust 1993-163 Class ZA................ 09/25/23 7.000 135,354
94 FNMA REMIC Trust 1993-199 Class Z................. 10/25/23 7.000 93,230
500 FNMA REMIC Trust 1993-G10 Class G................. 05/25/22 5.000 490,536
139 FNMA REMIC Trust 1993-G40 Class Z................. 12/25/23 6.500 132,626
275 FNMA REMIC Trust 1994-23 Class PX................. 08/25/23 6.000 262,928
1,990 FNMA REMIC Series 1998-50 Class PE................ 09/25/28 6.500 1,971,737
4,000 FNMA REMIC Series 1998-M Class B.................. 09/25/07 6.270 4,095,760
1,540 FNMA REMIC Series 1998-M7 Class Z................. 05/25/36 6.390 1,495,186
5,396 GNMA REMIC Series 1998-21, Class ZC............... 06/20/28 6.500 5,256,898
3,800 ABN AMRO Mortgage Corp., REMIC Series 1998-3,
Class A3........................................ 09/25/28 6.750 3,847,856
2,103 American Residential Mortgage Loan Trust, Series
1998-1, Class 1................................. 05/25/29 5.804++ 2,078,765
358 Bear Stearns Mortgage Securities Inc. REMIC Series
94-1 Class 3A ARM............................... 05/25/23 7.195 366,097
300 California Federal Bank REMIC Series 1990 BNI,
Class A-ARM..................................... 08/25/30 6.584 290,122
6,977 Citicorp Mortgage Securities Inc. REMIC Series
1998-8,
Class A3........................................ 09/25/28 6.750 7,064,356
5,000 Citicorp Mortgage Securities Inc. REMIC Series
1998-9,
Class A5........................................ 10/25/28 6.500 4,986,800
1,857 Contimortgage Home Equity Loan Trust, Series
1998-1,
Class A2........................................ 07/15/12 6.180 1,856,749
5,134 Housing Security Inc., Series 1992-8, Class B..... 06/25/24 6.628 5,211,943
1,971 LTC Commercial Mortgage Certificates, Series
1998-1,
Class A+........................................ 05/28/30 6.029 1,991,185
1,883 Mid-State Trust, Series 4, Class A................ 04/01/30 8.330 2,063,457
2,000 The Money Store Home Equity Trust, Series 1997-D,
Class AF3....................................... 11/15/21 6.345 2,011,120
787 The Money Store Home Equity Trust, Series 1998-A,
Class AV........................................ 06/15/29 5.175++ 780,787
5,000 Norwest Asset Securities Corp. REMIC Series
1998-30,
Class A17....................................... 12/25/28 6.250 4,886,800
150 Residential Funding Mortgage Securities I Inc.,
Series 1993-S30 Class A9........................ 08/25/23 7.500 154,359
2,264 Residential Funding Mortgage Securities I Inc.,
Series 1997-S7, Class A5........................ 05/25/27 7.500 2,292,608
1,000 Residential Funding Mortgage Securities I Inc.,
Series 1997-S14, Class A6....................... 10/25/27 7.250 1,017,746
1,000 Resolution Trust Corp. Mortgage Series 92-C1 Class
B ARM........................................... 08/25/23 7.625++ 1,023,836
2,731 Salomon Brothers Mortgage Securities VII Inc.
REMIC Series 1993-3, Class A7MZ................. 08/25/23 7.200 2,777,992
2,559 SLMA Student Loan Trust, Series 1998-1, Class
A1.............................................. 01/25/07 5.204++ 2,533,569
353 U.S. Department of Veteran Affairs Vendee Mortgage
Trust Series 1993-3, Class 2ZA.................. 06/15/20 6.500 359,989
-------------
Total Collateralized Mortgage Obligations
(cost--$74,296,171)......................................... 76,169,148
-------------
</TABLE>
27
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE STRATEGIC FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- --------------------- -------------
<C> <S> <C> <C> <C>
STRIPPED MORTGAGE-BACKED SECURITIES+--0.31%
$ 280 FHLMC Series 1625 Class GA+++..................... 01/15/08 7.700%(1) $ 19,974
2 FNMA REMIC Trust 1993-134 Class EA+++............. 11/25/05 10.480(1) 22,577
696 FNMA REMIC Trust 1993-201 Class JA+++............. 09/25/21 8.310(1) 80,676
3,227 FNMA REMIC Trust 1993-201 Class JC+++............. 05/25/19 6.000(1) 439,478
-------------
Total Stripped Mortgage-Backed Securities (cost--$629,574).... 562,705
-------------
CORPORATE BONDS--14.39%
500 AMR Corp.......................................... 02/01/01 10.000 535,459
2,500 AT&T Capital Corp................................. 02/16/99 5.950 2,499,683
450 Continental Cablevision Inc....................... 06/01/07 11.000 485,643
3,250 Goldman Sachs Group+.............................. 03/19/01 5.341++ 3,237,371
2,000 Heller Financial Inc.............................. 04/13/00 5.335++ 1,997,146
1,500 MBNA American Bank................................ 12/10/02 5.618 1,466,112
374 Midland Funding Corp.............................. 07/23/02 10.330 399,939
1,000 National Power Corp............................... 05/15/28 9.625 880,739
500 Niagara Mohawk Power Co........................... 04/01/24 7.875 526,580
1,000 Petroleos Mexicano................................ 10/29/99 7.750 1,000,000
4,000 Philip Morris Cos Inc............................. 04/01/04 to 07/15/05 7.000 to 7.500 4,286,575
3,300 RJR Nabisco Inc................................... 12/01/02 to 09/15/03 7.625 to 8.625 3,344,440
475 Terra Industries.................................. 06/15/05 10.500 477,375
500 United Air Lines Inc.............................. 11/27/12 10.360 634,385
2,000 Westpoint Stevens Inc............................. 06/15/05 7.875 2,060,000
2,000 Williams Cos Inc.................................. 01/30/00 5.249++ 1,996,686
-------------
Total Corporate Bonds (cost--$25,632,354)..................... 25,828,133
-------------
COMMERCIAL [email protected]%
1,600 Ford Motor Credit Corp............................ 03/19/99 4.800 1,590,187
100 Lilly Eli & Co.................................... 03/12/99 4.750 99,485
400 National Rural Utilities Cooperative Finance
Corp............................................ 03/08/99 4.780 398,141
-------------
Total Commercial Paper (cost--$2,087,813)..................... 2,087,813
-------------
FOREIGN GOVERNMENT OBLIGATIONS--0.43%
1,000 United Mexican States (cost--$825,426)............ 12/31/19 6.250 763,750
-------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS@++++++--0.33%
595 U.S. Treasury Bills (cost--$591,324).............. 02/04/99 to 05/27/99 4.360 to 4.400 591,324
-------------
REPURCHASE AGREEMENT--0.68%
1,229 Repurchase Agreement dated 01/29/99 with State
Street Bank & Trust Company, collateralized by
$1,230,000 U.S. Treasury Notes, 5.00% due
02/15/99 (value--$1,257,675); proceeds:
$1,229,410 (cost--$1,229,000)................... 02/01/99 4.000 1,229,000
-------------
Total Investments (cost--$181,134,135)--101.96%............... 183,029,930
Liabilities in excess of other assets--(1.96)%................ (3,515,094)
-------------
Net Assets--100.00%........................................... $179,514,836
-------------
-------------
</TABLE>
See page 29 for a description of footnotes used in this portfolio
28
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE STRATEGIC FIXED INCOME INVESTMENTS
- -----------------
++ Floating rate securities--The interest rates shown are the current rates
as of January 31, 1999.
+ Illiquid securities represent 3.23% of net assets.
+++ Interest Only Security--This security entitles the holder to receive
interest payments from an underlying pool or 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 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.
++++++ Entire or partial amount pledged as collateral for futures transactions.
@ Interest rates shown are discount rates at date of purchase.
ARM Adjustable Rate Mortgage--The interest rates shown are the current rates
as of January 31, 1999.
COFI Cost of Funds Index
MTN Medium Term Note
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
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION
CONTRACTS STRIKE PRICE DATES VALUE
- --------- ------------ ---------- -------
<C> <S> <C> <C> <C>
WRITTEN OPTIONS
2 U.S. Treasury Bonds Futures Calls................. $132 March 1999 $ 188
8 U.S. Treasury Bonds Futures Puts.................. 120 March 1999 125
10 U.S. Treasury Bonds Futures Puts.................. 122 March 1999 313
16 U.S. Treasury Bonds Futures Calls................. 138 March 1999 250
33 U.S. 10 Year Treasury Notes Futures Calls......... 123 March 1999 357
33 U.S. 10 Year Treasury Notes Futures Puts.......... 117 March 1999 2,220
-------
$ 3,453
-------
-------
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
IN EXPIRATION APPRECIATION
CONTRACTS TO RECEIVE EXCHANGE FOR DATES (DEPRECIATION)
------------------------------------------------------------ ------------- -------------- --------------
<C> <S> <C> <C> <C>
FUTURES CONTRACTS
82 U.S. 2 Year Treasury Notes.................................. $ 17,373,750 March 1999 $(35,875)
242 U.S. 10 Year Treasury Notes................................. 22,038,438 March 1999 (174,547)
13 90 Day Eurodollar........................................... 3,062,325 September 2000 22,250
13 90 Day Eurodollar........................................... 3,059,800 December 2000 19,900
13 90 Day Eurodollar........................................... 3,061,000 March 2001 21,625
13 90 Day Eurodollar........................................... 3,060,350 June 2001 21,625
47 90 Day Libor................................................ 5,533,088 June 1999 51,222
-------
$(73,800)
-------
-------
</TABLE>
See accompanying notes to financial statements
29
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MUNICIPAL FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ -------------------- ---------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--98.37%
ALABAMA--0.39%
$ 60 Birmingham Medical Clinic Board Revenue Bapist
Medical Centers (Escrow to Maturity)............ 07/01/05 7.300% $ 67,700
155 Pell City Industrial Development Board Revenue
Shelby Steel Fabricators (Letter of Credit)..... 09/01/01 7.700 155,482
------------
223,182
------------
ARIZONA--3.01%
70 Pima County Hospital Revenue St. Joseph Hospital
Project (Escrow to Maturity).................... 01/01/09 7.500 82,159
1,000 Santa Cruz County Industrial Development Authority
Industrial Development Revenue (Optional Put
08/01/07 @ 100)................................. 08/01/20 4.750 1,026,750
570 Show Low Industrial Development Authority Revenue
Navapache Regional Medical Center Series A (ACA
Insured)........................................ 12/01/06 5.125 603,311
------------
1,712,220
------------
ARKANSAS--0.46%
60 Arkansas State Development Finance Authority (MBIA
Insured)........................................ 10/01/16 5.100 61,334
30 Pulaski County Residental Housing Single Family
(Escrow to Maturity)............................ 06/01/10 7.250 35,438
148 Springdale Residential Housing Mortgage Series A
(FNMA Collateralized)........................... 09/01/11 7.650 164,876
------------
261,648
------------
CALIFORNIA--12.11%
880 Abag Finance Authority For Nonprofit Refunding
Housing Sundale Arms Apts Project A (FNMA
Collateralized)#................................ 03/01/19 5.100 880,000
135 California Pollution Control Financing Kaiser
Steel Corporation Project (Escrow to
Maturity)....................................... 10/01/08 7.250 155,296
985 California Statewide Community Development Housing
Riverside Gardens Project Series J (Letter Of
Credit)#........................................ 10/01/12 5.100 994,269
110 California Statewide Community Housing Senior Lien
(FHA Insured)................................... 09/01/00 5.000 111,877
125 Inglewood Residential Rehabilitation (Escrow to
Maturity)....................................... 08/01/10 7.500 145,986
435 Lancaster Redevelopment Agency Multi-Family
Housing Refunding FHA High Valley Apartments
Project Series A (FHA Insured).................. 12/01/05 5.250 447,802
700 Los Angeles Community Redevelopment Agency
Refunding Monterey Hills Redevelopment Project
B............................................... 12/01/22 8.650 818,146
300 Los Angeles Multi-Family Revenue Housing
Earthquake Rehabilitation Project Series C (FNMA
Collateralized)#................................ 07/01/07 5.150 312,252
90 Palmdale Residential Mortgage (Escrow to
Maturity)....................................... 11/01/12 9.250 121,646
500 Riverside County California Housing Authority
Revenue Refunding Breezewood Apts Project Series
B (MBIA Insured)#............................... 06/01/19 5.000 504,275
1,135 Sacramento Utility District Electric (Escrow to
Maturity)....................................... 03/01/10 to 02/01/11 5.500 to 6.800 1,305,154
1,020 Vista California Multi-Family Housing Pepperwood
Apartments (Mandatory Put 06/01/05 @ 100) (FNMA
Collateralized)................................. 06/01/25 5.700 1,080,771
------------
6,877,474
------------
COLORADO--2.30%
300 Colorado Housing Finance Authority Multi-Family
Insured Mortgage C3 (FHA Insured)............... 10/01/21 5.700 310,125
535 Colorado Housing Finance Authority Single Family
Progam Subordinated#............................ 11/01/04 5.750 550,232
</TABLE>
30
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MUNICIPAL FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ -------------------- ---------------- ------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
COLORADO--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 410 Lakewood Company Multi-Family Housing Mortgage FHA
Mortgage Loan................................... 10/01/15 6.550% $ 445,924
------------
1,306,281
------------
CONNECTICUT--2.63%
1,500 Connecticut State Development Authority Revenue
Life Care Facility Seabury Project (Asset
Guaranty Insured)............................... 09/01/15 5.000 1,494,915
------------
DISTRICT OF COLUMBIA--3.94%
600 District of Columbia Housing Finance Authority
Certificate of Participation (Asset Guaranty
Insured)........................................ 06/01/08 4.850 616,134
1,500 District of Columbia Series A (MBIA Insured)...... 06/01/08 5.250 1,622,475
------------
2,238,609
------------
FLORIDA--2.17%
250 Alachua County Health Facilities Authority Shands
Hospital At The University of Florida (MBIA
Insured)........................................ 12/01/05 6.100 271,740
145 Clearwater Housing Development Corporation Revenue
Refunding Clearwater Apartments Series A (FHA
Insured)........................................ 07/01/01 6.200 150,153
100 Dade County Educational Facilities Authority
Revenue (Letter of Credit)...................... 01/01/02 5.150 104,147
155 Palm Beach County Solid Waste Authority Revenue
(Escrow to Maturity) (MBIA Insured)............. 12/01/04 10.000 187,738
240 Pasco County Housing Finance Authority Refunding
Oak Trail Apartments Project Series B (Mandatory
Put 06/01/08 @ 100) (AXA Insured)............... 06/01/27 5.500 255,295
235 Pasco County MBIA West Pasco Water and Sewer Unit
(Escrow to Maturity) (MBIA Insured)............. 08/01/08 6.375 261,144
------------
1,230,217
------------
GEORGIA--1.94%
350 Canton Housing Authority Multi-Housing Canterbury
Ridge Apartments Project (FNMA
Collateralized)#................................ 03/01/08 4.900 354,858
90 Gwinnett County Water & Sewer Authority (Escrow to
Maturity)....................................... 10/01/04 9.600 110,174
600 Marietta Housing Authority Multi-Family Housing
Refunding Ridge Part Apartments Project A
(Mandatory put 06/01/05 @ 100) (FNMA
Collateralized)................................. 06/01/25 5.700 634,206
------------
1,099,238
------------
ILLINOIS--7.64%
210 Belleville St. Clair County (Escrow to
Maturity)....................................... 11/01/09 7.250 247,559
350 Greater Peoria Airport Authority (AMBAC
Insured)#....................................... 12/01/07 6.700 399,728
500 Illinois Educational Facilities Authority Revenues
Refunding Northwestern Medical Facility
Foundation (MBIA Insured)....................... 11/15/28 5.125 500,175
780 Illinois Health Facilities Authority Revenue
Ravenswood Hospital (Escrow to Maturity)........ 08/01/06 7.250 880,714
1,475 Illinois Health Facilities Authority Revenue
Series B (Partial Pre-Refunded 04/01/99 @
102)............................................ 04/01/08 7.375 1,514,736
250 Palatine Village Housing Revenue Clover Ridge Rmk
(Mandatory Put 12/01/05 @ 100) (Letter of
Credit)......................................... 12/15/07 4.750 255,342
225 St. Clair County Certificates Participation Series
A (FSA Insured)................................. 10/01/07 4.900 237,173
285 St. Clair County Certificates Participation Series
A (FSA Insured)................................. 10/01/08 5.000 302,955
------------
4,338,382
------------
</TABLE>
31
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MUNICIPAL FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ -------------------- ---------------- ------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
INDIANA--6.91%
$ 610 Fort Wayne Hospital Authority Revenue Parkview
Memorial Hospital (Escrow to Maturity).......... 01/01/02 to 01/01/07 6.500 to 6.875% $ 657,536
200 Gary Mortgage Revenue Willow On Clark Apts A (GNMA
Collateralized)#................................ 08/20/38 5.400 202,394
915 Indiana Health Facility Hospital Revenue Kings
Daughters Hospital (Asset Guaranty Insured)..... 02/15/04 to 02/15/05 5.000 957,803
600 Indianapolis Economic Development Revenue
Refunding Bethany Independent Series A (GNMA
Collateralized)#................................ 04/20/17 5.350 617,094
425 Indianapolis Economic Development Revenue Knob In
The Woods Project (Mandatory put 12/01/04 @ 100)
(FNMA Collateralized)........................... 12/01/24 6.375 471,933
1,000 New Castle Economic Development Revenue Refunding
FHA Raintree Square Project A................... 04/01/19 5.550 1,019,380
------------
3,926,140
------------
IOWA--0.38%
140 Iowa Finance Authority Multi-Family Revenue
Refunding Housing Forest Glen Apartments Project
A (FNMA Collateralized)......................... 11/01/03 4.700 142,461
70 Iowa Finance Authority Multi-Family Revenue
Refunding Housing Hillcrest Series C (FNMA
Collateralized)................................. 11/01/02 4.600 71,086
------------
213,547
------------
KANSAS--0.06%
35 Wichita Hospital Revenue St. Francis Hospital &
Nursing Senior A................................ 10/01/07 6.750 35,007
------------
KENTUCKY--0.32%
55 Kentucky State Revenue Turnpike Authority
Resources Recovery Road Revenue (Escrow to
Maturity)....................................... 07/01/09 7.200 65,436
105 Kentucky State Revenue Turnpike Authority Toll
Road (Escrow to Maturity)....................... 07/01/08 5.875 113,929
------------
179,365
------------
LOUISIANA--3.89%
110 East Baton Rouge Single Family Mortgage Series C
(GNMA/FNMA Collateralized)...................... 04/01/32 7.000 116,090
345 East Baton Rouge Parish Womans Hospital Foundation
(Escrow to Maturity)............................ 10/01/08 7.200 399,168
800 Louisiana Public Facilities Authority Revenue and
Education A1 (Mandatory Put 06/01/02 @ 100)
(AMBAC Insured)................................. 12/01/15 5.000 828,784
750 Louisiana State Health Education Authority Alton
Ochsner Medical Foundation (Escrow to
Maturity)....................................... 05/01/05 8.750 862,605
------------
2,206,647
------------
MAINE--0.09%
50 Maine Health & High Educational Facilities
Hospital St. Marys General Hospital
(Pre-Refunded 07/01/99 @ 102)................... 07/01/09 8.500 52,127
------------
MASSACHUSETTS--0.93%
520 Massachusetts Bay Transport Authority General
Transportation Systems Series B (FSA Insured)... 03/01/26 5.250 529,760
------------
MICHIGAN--1.03%
110 Michigan State Hospital Finance Authority Revenue
St. Joseph's Mercy Hospital (Escrow to
Maturity)....................................... 07/01/03 9.250 124,716
200 Michigan State Housing Development Authority...... 12/01/12 7.650 206,860
</TABLE>
32
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MUNICIPAL FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ -------------------- ---------------- ------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
MICHIGAN--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 220 Michigan State Strategic Limited Obligation....... 08/15/05 7.875% $ 251,790
------------
583,366
------------
MINNESOTA--1.06%
320 Coon Rapids Hospital Revenue Health Central
Incorporated (Escrow to Maturity)............... 08/01/08 7.625 375,961
151 Eden Prairie Multi-Family Housing (GNMA
Collateralized)................................. 01/20/06 5.500 159,029
55 Moorhead Residential Mortgage (Escrow to
Maturity)....................................... 08/01/11 7.100 65,190
------------
600,180
------------
MISSISSIPPI--0.80%
450 Corinth Alcorn County Mississippi Hospital
Refunding Magnolia Registered Health Center A... 10/01/08 5.000 457,218
------------
MISSOURI--3.81%
675 Missouri State Development Finance Board
Recreation YMCA Greater St. Louis Project Series
A (Letter of Credit)............................ 09/01/06 4.600 690,606
825 Missouri State Development Finance Board
Recreation YMCA Greater St. Louis Project Series
A (Letter of Credit)............................ 09/01/08 4.800 847,960
165 St. Louis County Single Family Housing (AMBAC
Insured)........................................ 10/01/16 9.250 176,840
450 St Charles County Industrial Development Refunding
Garden View Care Center Project (Letter of
Credit)......................................... 11/15/16 5.400 446,405
------------
2,161,811
------------
NEW JERSEY--0.31%
150 New Jersey Health Care Facilities Financing St.
Barnabas Medical Center (Escrow to Maturity).... 07/01/11 7.000 173,567
------------
NEW YORK--1.06%
200 New York City Housing Authority Refunding Security
Assisted Series A............................... 07/01/05 5.250 207,600
75 Onondaga County Industrial Development Civic
Refunding Syracuse Home Association Project..... 12/01/07 4.500 75,486
300 New York City Housing Authority Refunding Security
Assisted Series A (AMBAC Insured)............... 07/01/08 5.450 317,193
------------
600,279
------------
NORTH CAROLINA--0.69%
375 Asheville Housing Authority Multi-Family Housing
Woodridge Apartments (GNMA Collateralized)#..... 11/20/19 5.700 391,586
------------
NORTH DAKOTA--1.03%
140 North Dakota Housing Finance Agency Housing
Finance Home Series A#.......................... 01/01/10 4.750 139,759
440 North Dakota Housing Finance Agency Housing
Finance Series D Rmk#........................... 01/01/10 4.750 442,631
------------
582,390
------------
OHIO--0.43%
150 Dayton Hospital Revenue Good Samaritan First
Mortgage Revenue (Escrow to Maturity)........... 12/01/05 6.000 161,731
75 Ohio Housing Finance Agency Single Family Mortgage
(GNMA Collateralized)#.......................... 09/01/21 7.850 79,271
------------
241,002
------------
</TABLE>
33
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MUNICIPAL FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ -------------------- ---------------- ------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
OKLAHOMA--2.39%
$ 335 Comanche County Hospital Authority Revenue Series
A (Connie Lee Insured).......................... 07/01/06 5.100% $ 353,931
425 McAlester Public Works Authority Revenue (FSA
Insured)........................................ 12/01/04 8.250 515,895
490 Oklahoma City Public Property Authority Refunding
and Improvement Oklahoma City Golf Systems
(Asset Guaranty Insured)........................ 10/01/12 4.750 486,565
------------
1,356,391
------------
PENNSYLVANIA--9.29%
110 Allegheny County Industrial Commercial Development
MPB Association................................. 12/01/04 6.750 113,690
140 Allegheny County Residential Mortgage Revenue
Single Family Mortgage Series D 2 (GNMA
Insured)#....................................... 05/01/08 4.850 141,614
400 Blair County Hospital Authority Revenue Hospital
Altoona Hospital Project A (AMBAC Insured)...... 07/01/06 5.375 434,204
30 Caln Township Municipal Sewer Revenue (Escrow to
Maturity)....................................... 01/01/09 5.700 32,251
535 Chester County Health & Education Jefferson Health
Systems Series B (AMBAC Insured)................ 05/15/12 5.000 555,084
50 Chester County Hospital Authority Revenue (Escrow
to Maturity).................................... 07/01/09 7.500 58,361
85 Conneaut School District (Escrow to Maturity)
(AMBAC Insured)................................. 05/01/02 9.250 93,849
145 Lancaster County Hospital Authority Lancaster
General Hospital Project (AMBAC Insured)........ 07/01/11 4.750 147,642
30 Lancaster Area Sewer Authority (Escrow to
Maturity)....................................... 04/01/12 6.000 33,044
400 Luzerne County Industrial Development Exempt
Series B#....................................... 12/01/22 7.125 445,304
35 Montgomery County Higher Education Beaver College
(Escrow to Maturity)............................ 10/01/00 6.750 36,239
600 Pennsylvania State Finance Authority Revenue
(Investment Agreement--SunAmerica).............. 11/01/09 6.600 671,292
500 Pennsylvania State Higher Education Facilities
Temple University First Series.................. 04/01/29 5.000 496,880
125 Philadelphia Hospital & High Education Health
Systems Jefferson Health Systems A (MBIA
Insured)........................................ 05/15/07 5.250 134,886
500 Philadelphia Hospitals & Higher Friends Hospital
(ACA Insured)................................... 05/01/11 6.200 533,185
125 Pittsburgh Urban Redevelopment Mortgage Series
B............................................... 10/01/11 to 10/01/12 4.800 to 4.900 125,545
1,180 Suacon Valley School District (AMBAC Insured)..... 10/15/09 4.650 1,223,802
------------
5,276,872
------------
RHODE ISLAND--1.80%
1,000 Rhode Island State Turnpike & Bridge Refunding.... 12/01/17 5.350 1,021,420
------------
SOUTH CAROLINA--1.61%
230 Charleston County Hospital Facility Roper Hospital
(Escrow to Maturity)............................ 10/01/11 7.000 270,358
325 South Carolina Jobs Economic Development
Caterpillar Incorporated Project#............... 06/01/08 5.050 334,490
295 South Carolina State Housing Multi-Family (FHA
Insured)........................................ 07/01/27 6.050 307,018
------------
911,866
------------
SOUTH DAKOTA--0.92%
465 South Dakota State Health & Educational Revenue
St. Lukes Hospital Project (Escrow to
Maturity)....................................... 10/01/07 6.800 522,586
------------
TENNESSEE--4.03%
1,000 Bristol Industrial Development Board Refunding
Shelby Heights Apartments Project............... 03/01/22 6.200 1,058,280
320 Knox County Health Educational & Hospital Facility
St. Mary's Medical Center (Escrow to
Maturity)....................................... 08/01/03 7.250 348,854
</TABLE>
34
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MUNICIPAL FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ -------------------- ---------------- ------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
TENNESSEE--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 215 La Follette Housing Development Corportion
(FHA/MBIA Insured).............................. 01/01/05 5.400% $ 225,522
185 Metropolitan Government Nashville Health &
Education Southern Advantist Hospital Advantist
Health Systems (Escrow to Maturity)............. 10/01/09 8.700 229,724
420 Oak Ridge Industrial Development Board Refunding
The Gardens Series A (GNMA Collateralized)...... 08/20/13 5.125 427,086
------------
2,289,466
------------
TEXAS--11.68%
990 De Soto Housing Finance Corporation Multi
Refunding The Colonies Apartments Project
(Mandatory put 10/01/07 @ 100) (FNMA
Collateralized)................................. 10/01/27 5.125 1,026,759
350 Galveston County Housing Finance Corporation
Single Family Mortgage Revenue.................. 04/01/15 9.750 391,972
275 Hidalgo County Health Services Corporation Mission
Hospital Project (Pre-Refunded 08/01/00 @
103)............................................ 02/01/25 10.250 310,357
260 Houston Texas Airport Systems Revenue (Escrow to
Maturity)....................................... 07/01/10 7.600 315,367
1,000 Lewisville Housing Finance Corporation Housing
Lewisville Limited Project (FSA Insured)........ 12/01/08 5.000 1,029,450
645 Odessa Junior College District Revenue Refunding &
Imot Series A (MBIA Insured).................... 12/01/09 4.750 667,078
1,500 Southeast Housing Finance Corporation............. 12/01/16 7.625+ 412,470
450 Tarrant County Health Facilities Development
Mortgage South Central Nursing A (FHA/MBIA
Insured)........................................ 01/01/37 6.000 499,990
1,100 Tarrant County Housing Finance Corporation
Refunding Multi-Family Housing Summit Project
(FNMA Collateralized) (Mandatory Put 9/1/07 @
100)............................................ 09/01/27 5.080 1,133,451
800 Texas State Department Housing and Community
Housing Senior Dallas/Fort Worth Series A....... 07/01/06 6.000 847,032
------------
6,633,926
------------
UTAH--3.04%
285 Salt Lake City Hospital Revenue (Escrow to
Maturity)....................................... 06/01/09 7.350 329,569
530 Salt Lake County Multi-Family Housing James Pointe
Apartment (Mandatory put 10/01/05 @ 100) (Asset
Guaranty Insurance)............................. 10/01/25 5.500 555,864
135 Salt Lake County Water Conservation (Escrow to
Maturity) (MBIA Insured)........................ 10/01/02 10.875 159,586
105 Utah State Housing Finance Agency (AMBAC
Insured)........................................ 07/01/07 5.650 110,524
540 Utah State Housing Finance Agency (AMBAC
Insured)........................................ 07/01/07 to 07/01/08 5.650 to 5.900 568,921
------------
1,724,464
------------
VIRGINIA--1.63%
620 Henrico County Industrial Development Authority
Refunding Industrial Development Regency 64
(Optional put 03/01/99 @ 100) (Letter of
Credit--Signet Bank)#........................... 03/01/16 4.550 620,508
300 Preston County Pollution Control Refunding County
Commission Monongahhela C....................... 03/01/03 4.500 306,393
------------
926,901
------------
WASHINGTON--0.48%
270 Washington State Housing Finance Commission Single
Family PG Series 3A (FNMA/GNMA
Collateralized)#................................ 12/01/10 5.200 274,082
------------
WEST VIRGINIA--0.08%
40 Kanawha County Residential Mortgage Revenue
(Escrow to Maturity)............................ 09/01/10 7.375 47,948
------------
</TABLE>
35
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MUNICIPAL FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ -------------------- ---------------- ------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
WISCONSIN--1.49%
$ 735 Wisconsin Housing & Economic Development Series
B#.............................................. 09/01/08 4.850% $ 741,145
100 Wisconsin Housing & Economic Development Series
G#.............................................. 03/01/04 5.250 103,373
------------
844,518
------------
WYOMING--0.54%
295 Teton County Wyoming Hospital District Refunding
Improvement (ACA Insured)....................... 12/01/09 5.100 308,744
------------
Total Municipal Bonds and Notes (cost--$54,031,729)............. 55,855,342
------------
TAX EXEMPT COLLATERALIZED MORTGAGE OBLIGATIONS--0.67%
378 FHA Insured Trust 1996-01, Class A1++............. 07/01/14 6.100 378,870
------------
TAX FREE MONEY MARKET FUND--2.57%
1,459 MuniCash Portfolio................................ 2.810(1) 1,458,760
------------
Total Investments (cost--$55,868,696)--101.61%.................. 57,692,972
Liabilities in excess of other assets--(1.61)%.................. (915,446)
------------
Net Assets--100.00%............................................. $56,777,526
------------
------------
</TABLE>
- -----------------
+ Zero coupon bond; rate represents annualized yield at date of purchase.
# Security subject to Alternative Minimum Tax.
++ Illiquid security representing 0.67% of net assets.
(1) Represents current yield at January 31, 1999.
ACA American Capital Access
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
36
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE GLOBAL FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)** DATES RATES VALUE
- ------------- ------------------------ -------------- -------------
<C> <S> <C> <C> <C>
LONG-TERM GLOBAL DEBT SECURITIES--81.24%
CANADA--3.94%
USD 1,000 Government of Canada.............................. 02/19/03 5.625% $ 1,020,374
3,398 Government of Canada.............................. 06/01/27 8.000 3,180,907
-------------
4,201,281
-------------
CHILE--0.33%
USD 400 Celulosa Arauco Constitucion...................... 12/15/03 6.750 354,298
-------------
DENMARK--5.32%
31,334 Kingdom of Denmark................................ 11/15/07 to 11/15/09 6.000 to 7.000 5,667,856
-------------
FRANCE--4.71%
EUR 3,826 Government of France.............................. 04/25/29 5.500 5,015,249
-------------
GERMANY--8.46%
EUR 7,133 Federal Republic of Germany....................... 08/22/00 to 01/04/28 5.250 to 6.500 9,019,220
-------------
GREECE--1.48%
380,000 Republic of Greece................................ 03/26/08 8.600 1,575,379
-------------
ITALY--1.99%
USD 2,080 Republic of Italy................................. 11/20/03 to 05/29/08 5.000 to 6.000 2,125,038
-------------
MALAYSIA--0.80%
USD 1,150 Petroliam Nasional Berhad......................... 10/18/06 7.125 848,125
-------------
NETHERLANDS--5.66%
EUR 4,748 Government of the Netherlands..................... 07/15/08 5.250 6,034,044
-------------
PHILIPPINES--1.15%
USD 1,390 Republic of Philippines (1)....................... 12/01/17 6.500 1,229,038
-------------
POLAND--0.96%
USD 1,095 Republic of Poland, PDI........................... 10/27/14 5.000# 1,023,168
-------------
SOUTH KOREA--2.83%
USD 2,815 Republic of Korea................................. 04/15/08 8.875 3,015,569
-------------
SWEDEN--2.44%
17,100 Kingdom of Sweden................................. 10/25/06 to 05/05/08 6.500 2,596,449
-------------
UNITED KINGDOM--14.09%
8,037 United Kingdom Gilt............................... 12/07/03 to 12/07/09 5.750 to 6.500 15,009,162
-------------
UNITED STATES--27.08%
1,100 European Investment Bank (2)...................... 09/16/08 5.375 1,111,336
1,800 Federal National Mortgage Association............. 03/15/01 5.625 1,824,624
700 General Motors Acceptance Corp.................... 01/14/02 5.500 698,575
6,250 U.S. Treasury Bonds............................... 11/15/26 6.500 7,310,550
16,760 U.S. Treasury Notes (1)........................... 08/31/00 to 10/15/06 5.125 to 7.250 17,337,789
550 Xerox Corp. MTN................................... 06/15/37 5.875 570,435
-------------
28,853,309
-------------
Total Long-Term Global Debt Securities (cost--$82,955,626)....... 86,567,185
-------------
</TABLE>
37
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE GLOBAL FIXED INCOME INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)** DATES RATES VALUE
- ------------- ------------------------ -------------- -------------
<C> <S> <C> <C> <C>
SHORT-TERM GLOBAL DEBT SECURITIES--12.84%
BELGIUM--1.51%
JPY 180,000 Kingdom of Belgium................................ 12/17/99 5.000% $ 1,613,064
-------------
GERMANY--2.70%
EUR 2,498 Federal Republic of Germany....................... 12/17/99 4.250 2,872,434
-------------
JAPAN--1.54%
185,000 Japan Development Bank............................ 10/01/99 5.000 1,642,515
-------------
UNITED KINGDOM--5.37%
3,464 United Kingdom Gilt............................... 08/10/99 6.000 5,723,509
-------------
UNITED STATES--1.72%
JPY 210,000 Federal National Mortgage Association............. 12/20/99 2.000 1,835,400
-------------
Total Short-Term Global Debt Securities (cost--$14,085,772)...... 13,686,922
-------------
REPURCHASE AGREEMENT--2.92%
$ 3,112 Repurchase Agreement dated 01/29/99 with Bear,
Stearns & Co., Inc. collateralized by $3,280,000
U.S. Treasury Bills, 4.340% due 10/14/99
(value--$3,177,992); proceeds: $3,113,219
(cost--$3,112,000).............................. 02/01/99 4.700 3,112,000
-------------
Total Investments (cost--$100,153,398)--97.00%................... 103,366,107
Other assets in excess of liabilities--3.00%..................... 3,195,217
-------------
Net Assets--100.00%.............................................. $106,561,324
-------------
-------------
</TABLE>
- -----------------
Note: The Portfolio of Investments is listed by the issuer's country of origin.
** In local currency unless otherwise indicated.
# Reflects rate at January 31, 1999 on step up coupon rate instrument.
EUR Euro Dollars.
JPY Japanese Yen.
MTN Medium Term Notes.
PDI Past Due Interest Bond.
USD U.S. Dollars.
(1) Security, or portion thereof, was on loan at January 31, 1999.
(2) "Supranational" security denominated in U.S. Dollars.
38
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE GLOBAL FIXED INCOME INVESTMENTS
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT TO IN MATURITY APPRECIATION
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
------------- ---------------- --------- -------------
<S> <C> <C> <C> <C>
British Pounds....................................................... 753,606 USD 1,266,058 02/19/99 $ (26,497)
Euro Dollars......................................................... 2,756,821 USD 3,226,170 02/19/99 (89,351)
German Deutschemarks................................................. 12,282,038 USD 7,394,363 02/19/99 (249,074)
German Deutschemarks................................................. 4,268,390 USD 2,591,725 02/19/99 (108,515)
German Deutschemarks................................................. 14,620,557 USD 8,748,015 02/19/99 (242,251)
Japanese Yen......................................................... 1,509,168,099 USD 12,735,596 02/19/99 305,902
Japanese Yen......................................................... 557,637,201 USD 4,857,433 02/19/99 (38,603)
Japanese Yen......................................................... 305,047,827 USD 2,662,755 02/19/99 (26,679)
Japanese Yen......................................................... 306,474,480 USD 2,740,000 02/19/99 (91,596)
Netherlands Guilder.................................................. 2,992,903 USD 1,600,483 02/19/99 (55,162)
U.S. Dollars......................................................... 5,739,365 DKK 36,387,000 02/19/99 171,730
U.S. Dollars......................................................... 2,812,279 GBP 1,704,308 02/19/99 8,965
U.S. Dollars......................................................... 8,748,015 GBP 5,320,000 02/19/99 (2,532)
U.S. Dollars......................................................... 3,058,705 GBP 1,851,516 02/19/99 13,258
U.S. Dollars......................................................... 2,480,089 GBP 1,482,420 02/19/99 41,745
U.S. Dollars......................................................... 5,182,911 NLG 9,723,660 02/19/99 162,309
-------------
$ (226,351)
-------------
-------------
</TABLE>
CURRENCY TYPE ABBREVIATIONS:
DKK Danish Kronas.
GBP British Pounds.
NLG Netherlands Guilders.
USD U.S. Dollars.
INVESTMENTS BY TYPE OF ISSUER
<TABLE>
<CAPTION>
PERCENT OF PORTFOLIO
ASSETS
---------------------
LONG-TERM SHORT-TERM
--------- ---------
<S> <C> <C>
Government and other public issuers......................... 80.28% 11.65%
Repurchase agreements....................................... -- 3.01
Bank and other financial institutions....................... 1.08 1.59
Industrial.................................................. 2.39 --
--------- ---------
83.75% 16.25%
--------- ---------
--------- ---------
</TABLE>
See accompanying notes to financial statements
39
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--98.96%
AGRICULTURE, FOOD & BEVERAGE--2.18%
10,300 Bestfoods Co. ................................................................. $ 518,219
82,500 Nabisco Holdings Corp.(1)...................................................... 3,470,156
150,500 Tyson Foods Inc. .............................................................. 3,151,094
------------
7,139,469
------------
BANKS--7.32%
44,000 Bank of Boston Corp. .......................................................... 1,625,250
70,100 The Chase Manhattan Corp. ..................................................... 5,393,319
3,400 Comerica, Inc. ................................................................ 2,085,413
21,200 First American Corp. of Tennessee.............................................. 885,100
40,025 First Security Corp. .......................................................... 815,509
101,500 Fleet Financial Group, Inc. ................................................... 4,497,719
45,000 Hibernia Corp. ................................................................ 753,750
20,800 Regions Financial Corp. ....................................................... 798,200
103,858 US Bancorp..................................................................... 3,498,716
102,200 Wells Fargo and Co.*........................................................... 3,570,612
------------
23,923,588
------------
CHEMICALS--3.12%
44,600 Eastman Chemical Co. .......................................................... 1,811,875
22,300 Geon Co. ...................................................................... 535,200
25,900 Great Lakes Chemical Corp. .................................................... 980,962
146,500 IMC Global Inc. ............................................................... 2,664,469
116,400 Lyondell Petrochemical Co. .................................................... 1,738,725
74,900 Praxair, Inc. ................................................................. 2,420,206
2,700 Witco Corp. ................................................................... 41,513
------------
10,192,950
------------
COMPUTER HARDWARE--7.93%
47,800 EMC Corp.*..................................................................... 5,204,225
167,100 Xerox Corp. ................................................................... 20,720,400
------------
25,924,625
------------
CONSTRUCTION--1.86%
188,600 Masco Corp. ................................................................... 6,094,138
------------
DEFENSE/AEROSPACE--6.11%
306,232 Lockheed Martin Corp. ......................................................... 10,794,678
163,900 Raytheon Co. .................................................................. 9,168,156
------------
19,962,834
------------
DIVERSIFIED RETAIL--1.43%
116,200 Sears Roebuck & Co.(1)......................................................... 4,662,525
------------
DRUGS & MEDICINE--5.09%
38,300 Allergan, Inc. ................................................................ 2,944,312
93,000 Alza Corp.*(1)................................................................. 4,702,312
18,300 Biogen Inc.*................................................................... 1,797,975
40,775 Covance Inc.*.................................................................. 1,284,413
32,600 Genzyme Corp.*................................................................. 1,776,700
1,560 Genzyme Corporation............................................................ 4,193
75,700 Schering-Plough Corp. ......................................................... 4,125,650
------------
16,635,555
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
ELECTRIC UTILITIES--4.90%
104,400 CMS Energy Corp. .............................................................. $ 4,469,625
211,900 Entergy Corp.(1)............................................................... 6,237,806
139,300 PECO Energy Co. ............................................................... 5,319,519
------------
16,026,950
------------
ELECTRICAL EQUIPMENT--4.07%
36,920 Comverse Technology Inc.*...................................................... 3,101,280
158,600 Corning, Inc. ................................................................. 7,731,750
38,200 Johnson Controls, Inc. ........................................................ 2,461,512
------------
13,294,542
------------
ELECTRONIC COMPONENTS--0.34%
56,900 Commscope Inc.*................................................................ 1,105,994
------------
ENERGY RESERVES & PRODUCTION--0.61%
70,000 Unocal Corp. .................................................................. 1,995,000
------------
FINANCIAL SERVICES--3.70%
136,450 AON Corp. ..................................................................... 6,924,837
117,300 Household International, Inc. ................................................. 5,153,869
------------
12,078,706
------------
FOOD RETAIL--0.55%
184,100 Food Lion Inc. ................................................................ 1,794,975
------------
FOREST PRODUCTS, PAPER--4.27%
40,300 Champion International Corp. .................................................. 1,413,019
139,000 Fort James Corp. .............................................................. 4,986,625
151,600 Kimberly Clark Corp. .......................................................... 7,551,575
------------
13,951,219
------------
FREIGHT, AIR, SEA & LAND--3.48%
139,300 Federal Express Corp.*......................................................... 11,379,069
------------
HEAVY MACHINERY--0.30%
13,000 Cummins Engine Co., Inc. ...................................................... 494,000
56,300 Harnischfeger Industries Inc. ................................................. 475,031
------------
969,031
------------
HOUSEHOLD PRODUCTS--0.71%
41,800 Dial Corp. .................................................................... 1,141,663
34,300 National Services Industries, Inc. ............................................ 1,174,775
------------
2,316,438
------------
INDUSTRIAL PARTS--2.03%
83,300 American Standard Companies Inc.*.............................................. 2,863,437
42,800 Pentair Inc. .................................................................. 1,637,100
14,300 Timken Co. .................................................................... 310,131
47,900 York International Corp. ...................................................... 1,838,163
------------
6,648,831
------------
INDUSTRIAL SERVICES/SUPPLIES--0.70%
79,500 Viad Corp. .................................................................... 2,280,656
------------
</TABLE>
40
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONCLUDED)
<TABLE>
<C> <S> <C>
INFORMATION & COMPUTER SERVICES--6.24%
124,900 Automatic Data Processing Inc. ................................................ $ 5,316,056
144,300 Electronic Data Systems Corp.*................................................. 7,566,732
195,620 First Data Corp.(1)............................................................ 7,494,691
------------
20,377,479
------------
LIFE INSURANCE--5.80%
120,400 Aetna Life & Casualty Co....................................................... 10,851,050
98,200 CIGNA Corp. ................................................................... 8,089,225
------------
18,940,275
------------
MEDICAL PRODUCTS--4.01%
132,200 Baxter International Inc. ..................................................... 9,377,938
35,000 Beckman Coulter Inc. .......................................................... 1,745,625
76,100 St. Jude Medical, Inc.*........................................................ 1,983,356
------------
13,106,919
------------
MEDICAL PROVIDERS--0.39%
37,700 HCR Manor Care, Inc.*.......................................................... 1,008,475
85,700 Vencor Inc. ................................................................... 262,456
------------
1,270,931
------------
MINING & METALS--0.79%
28,800 Birmingham Steel Corp. ........................................................ 127,800
38,500 Crown Cork & Seal, Inc. ....................................................... 1,219,969
23,660 Martin Marietta, Inc. ......................................................... 1,242,150
------------
2,589,919
------------
MOTOR VEHICLES--2.29%
42,400 Goodyear Tire & Rubber Co. .................................................... 2,077,600
94,300 Lear Corp.*.................................................................... 3,713,063
35,200 TRW, Inc. ..................................................................... 1,691,800
------------
7,482,463
------------
OIL REFINING--0.56%
83,416 Ultramar Diamond Shamrock...................................................... 1,835,152
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
RAILROADS--5.74%
405,000 Burlington Northern Santa Fe Inc. ............................................. $ 14,023,125
171,200 Norfolk Southern Corp. ........................................................ 4,718,700
------------
18,741,825
------------
REAL PROPERTY--2.62%
36,800 Champion Enterprise Inc.*...................................................... 860,200
24,300 Fleetwood Enterprises Inc. .................................................... 899,100
43,900 Lafarge Corp.(1)............................................................... 1,714,844
46,564 Southdown, Inc. ............................................................... 2,587,212
26,900 USG Corporation(1)............................................................. 1,526,575
85,600 Ventas Inc. ................................................................... 979,050
------------
8,566,981
------------
SEMICONDUCTOR--1.08%
153,900 Advanced Micro Devices, Inc.*.................................................. 3,530,081
------------
SPECIALTY RETAIL--2.12%
93,300 Circuit City Stores, Inc.(1)................................................... 5,154,825
106,700 Consolidated Stores Corp.*(1).................................................. 1,780,556
------------
6,935,381
------------
THRIFT--0.46%
46,300 Greenpoint Financial Corp. .................................................... 1,516,325
------------
TOBACCO--3.05%
211,800 Philip Morris Co., Inc. ....................................................... 9,954,600
------------
WIRELESS TELECOMMUNICATIONS--3.11%
184,500 General Instrument Corp.*...................................................... 6,549,750
113,000 Nextel Communications, Inc.*(1)................................................ 3,616,000
------------
10,165,750
------------
Total Common Stocks (cost--$281,810,756).................................................. 323,391,176
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE
- --------- -------------------- --------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--0.25%
$ 825 U.S. Treasury Bills+ (cost--$822,599)... 02/25/99 4.220%@ 822,734
------------
</TABLE>
41
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- --------- -------------------- -------------- ------------
REPURCHASE AGREEMENT--0.84%
<C> <S> <C> <C> <C>
$ 2,735 Repurchase Agreement dated 01/29/99 with
State Street
Bank & Trust Company, collateralized
by $2,702,130; U.S.
Treasury Notes, 5.375% due 01/31/00;
(value--$2,789,949);
proceeds: $2,735,912
(cost--$2,735,000).................... 02/01/99 4.000% $ 2,735,000
------------
Total Investments (cost--$285,368,355)--100.05%.... 326,948,910
Liabilities in excess of other assets--(0.05)%..... (176,108)
------------
Net Assets--100.00%................................ $326,772,802
------------
------------
</TABLE>
- -----------------
* Non-Income producing security
+ Entire or partial amount pledged as collateral for futures transactions.
@ Interest rate shown is discount rate at date of purchase.
(1) Security, or portion thereof, was on loan at January 31, 1999.
FUTURES CONTRACTS
<TABLE>
<CAPTION>
NUMBER OF IN EXPIRATION UNREALIZED
CONTRACTS CONTRACTS TO RECEIVE EXCHANGE FOR DATE APPRECIATION
- --------- ---------------------------------------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
6 S&P 500................................. $ 1,858,167 March 1999 $ 64,083
------------
------------
</TABLE>
See accompanying notes to financial statements
42
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--98.83%
AGRICULTURE, FOOD & BEVERAGE--0.99%
53,400 The Coca-Cola Co. .................................................................................. $ 3,494,363
------------
BANKS--8.25%
156,200 BankAmerica Corp. .................................................................................. 10,445,875
90,000 The Chase Manhattan Corp. .......................................................................... 6,924,375
207,449 Citigroup, Inc. .................................................................................... 11,630,109
------------
29,000,359
------------
CHEMICALS--1.10%
99,000 Allied-Signal, Inc. ................................................................................ 3,861,000
------------
COMPUTER HARDWARE--13.18%
159,975 Cisco Systems, Inc.*................................................................................ 17,847,211
220,400 Compaq Computer Corp................................................................................ 10,496,550
180,100 Dell Computer Corp.*................................................................................ 18,010,000
------------
46,353,761
------------
COMPUTER SOFTWARE--4.78%
59,500 Computer Sciences Corp.*............................................................................ 4,079,469
72,700 Microsoft Corp.*.................................................................................... 12,722,500
------------
16,801,969
------------
DIVERSIFIED RETAIL--5.69%
135,800 Kohls Corp.*........................................................................................ 9,200,450
125,700 Wal Mart Stores, Inc. .............................................................................. 10,810,200
------------
20,010,650
------------
DRUGS & MEDICINE--14.28%
18,000 Amgen, Inc.*........................................................................................ 2,300,625
112,200 Bristol-Myers Squibb Co. ........................................................................... 14,382,637
88,031 McKesson HBOC, Inc. ................................................................................ 6,613,329
40,600 Merck & Co., Inc. .................................................................................. 5,958,050
68,000 Pfizer, Inc. ....................................................................................... 8,746,500
224,000 Schering-Plough Corp. .............................................................................. 12,208,000
------------
50,209,141
------------
ELECTRIC UTILITIES--0.47%
49,500 AES Corp.(1)........................................................................................ 1,667,531
------------
ELECTRICAL EQUIPMENT--5.06%
57,200 Lucent Technologies, Inc. .......................................................................... 6,438,575
127,400 Solectron Corp.*(1)................................................................................. 11,346,563
------------
17,785,138
------------
ENTERTAINMENT--1.11%
79,900 Carnival Corp....................................................................................... 3,920,094
------------
ENVIRONMENTAL SERVICES--1.90%
133,600 Waste Management, Inc. ............................................................................. 6,671,650
------------
FINANCIAL SERVICES--4.26%
157,000 Associates First Capital Corp....................................................................... 6,368,312
307,650 MBNA Corp........................................................................................... 8,594,972
------------
14,963,284
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
FOOD RETAIL--2.17%
120,000 Kroger Co.*(1)...................................................................................... $ 7,620,000
------------
HOUSEHOLD PRODUCTS--5.15%
97,600 Avon Products, Inc. ................................................................................ 3,605,100
67,900 Colgate-Palmolive Co................................................................................ 5,461,706
106,000 Gillette Co......................................................................................... 6,227,500
31,000 Procter & Gamble Co................................................................................. 2,817,125
------------
18,111,431
------------
INDUSTRIAL PARTS--1.52%
44,600 United Technologies Corp. .......................................................................... 5,326,913
------------
INFORMATION & COMPUTER SERVICES--0.60%
12,000 America Online Inc.*................................................................................ 2,108,250
------------
LEISURE--1.79%
120,800 Harley Davidson Inc. ............................................................................... 6,281,600
------------
LONG DISTANCE & PHONE COMPANIES--3.77%
166,300 MCI WorldCom, Inc.*................................................................................. 13,262,425
------------
MEDIA--2.66%
174,650 Liberty Media Group, Series A*...................................................................... 9,343,775
------------
MEDICAL PRODUCTS--5.42%
94,300 Medtronic, Inc. .................................................................................... 7,514,531
149,700 Tyco International Ltd.(1).......................................................................... 11,536,256
------------
19,050,787
------------
OTHER INSURANCE--1.94%
66,300 American International Group, Inc. ................................................................. 6,824,756
------------
SECURITIES & ASSET MANAGEMENT--2.44%
23,600 Merrill Lynch & Co., Inc. .......................................................................... 1,793,600
78,000 Morgan Stanley, Dean Witter
Discover & Co. ................................................................................... 6,771,375
------------
8,564,975
------------
SEMICONDUCTOR--4.28%
50,000 Altera Corp.*....................................................................................... 3,143,750
84,500 Intel Corp.......................................................................................... 11,909,219
------------
15,052,969
------------
SPECIALTY RETAIL--4.37%
172,100 Home Depot, Inc. ................................................................................... 10,390,538
101,600 Rite Aid Corp....................................................................................... 4,991,100
------------
15,381,638
------------
TOBACCO--1.65%
123,200 Philip Morris Co., Inc. ............................................................................ 5,790,400
------------
Total Common Stocks (cost--$226,856,862)....................................................................... 347,458,859
------------
</TABLE>
43
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- --------- -------------------- ---------------- ------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--1.22%
$ 4,309 Repurchase Agreement dated 01/29/99 with State Street
Bank & Trust Company, collateralized by $4,257,213 U.S.
Treasury Notes 5.375% due 01/31/00 (value--$4,395,573);
proceeds: $4,310,436 (cost--$4,309,000)................... 02/01/99 4.000% $ 4,309,000
------------
Total Investments (cost--$231,165,862)--100.05%........................ 351,767,859
Liabilities in excess of other assets --(0.05)%........................ (188,623)
------------
Net Assets--100.00%.................................................... $351,579,236
------------
------------
</TABLE>
- -----------------
* Non-Income producing security
(1) Security, or a portion thereof, was on loan at January 31, 1999.
See accompanying notes to financial statements
44
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--95.27%
AGRICULTURE, FOOD & BEVERAGE--0.77%
5,600 Andersons Inc. .................................................................................... $ 68,250
66,400 Fleming Companies Inc.(1) ......................................................................... 593,450
19,500 Nash Finch Co. .................................................................................... 263,250
6,300 Sanfilippo John B & Son Inc.*...................................................................... 25,200
6,900 Suprema Specialties Inc.*.......................................................................... 39,675
9,300 Sylvan, Inc.*...................................................................................... 130,200
43,700 Weider Nutrition International Inc. ............................................................... 316,825
------------
1,436,850
------------
AIRLINES--1.52%
25,400 Alaska Air Group, Inc.*............................................................................ 1,279,525
73,400 America West Holding Corp.*........................................................................ 1,578,100
------------
2,857,625
------------
ALCOHOL--0.03%
6,700 Todhunter International Inc.*...................................................................... 52,763
------------
APPAREL, RETAIL--2.46%
28,400 Brylane, Inc.*..................................................................................... 654,975
73,200 Burlington Coat Factory Warehouse.................................................................. 1,047,675
5,100 Concord Fabrics Inc.*.............................................................................. 31,556
16,300 Finish Line Inc.*.................................................................................. 149,756
38,100 Footstar Inc.*..................................................................................... 964,406
15,800 Gadzooks Inc.*..................................................................................... 111,588
44,900 Genesco Inc.*...................................................................................... 333,944
23,700 Goodys Family Clothing Inc.*....................................................................... 255,516
6,400 Haskel International Inc. ......................................................................... 67,200
9,000 S & K Famous Brands Inc.*.......................................................................... 90,000
31,000 Syms Corp.*........................................................................................ 261,562
41,200 The Dress Barn*.................................................................................... 661,775
------------
4,629,953
------------
APPAREL, TEXTILES--3.65%
19,500 Ashworth Inc.*..................................................................................... 104,813
13,200 Barry R G Corp. Ohio*.............................................................................. 140,250
109,900 Burlington Industries Inc.*........................................................................ 728,087
12,725 Conso Products Co.*................................................................................ 101,800
4,832 Decorator Industries, Inc. ........................................................................ 38,354
19,600 Dixie Group Inc.*.................................................................................. 151,900
23,700 Dyersburg Corp. ................................................................................... 71,100
7,700 G-III Apparel Group Ltd.*.......................................................................... 22,619
20,400 Galey & Lord Inc.*................................................................................. 112,200
6,700 Garan Inc. ........................................................................................ 165,825
45,600 Guilford Mills, Inc. .............................................................................. 772,350
22,700 Gymboree Corp.*.................................................................................... 178,762
4,600 Hampshire Group, Ltd.*............................................................................. 52,325
40,400 Justin Industries Inc. ............................................................................ 469,650
4,100 Lacrosse Footwear Inc. ............................................................................ 34,850
15,600 Maxwell Shoe Inc.*................................................................................. 175,500
55,300 Nine West Group, Inc.*............................................................................. 760,375
13,100 Oxford Inds Inc. .................................................................................. 343,056
16,600 Quaker Fabric Corp. New*........................................................................... 71,069
8,400 Rocky Shoes and Boots*............................................................................. 47,775
4,300 Span America Med Systems Inc. ..................................................................... 22,038
5,200 Sport Haley Inc.* ................................................................................. 45,500
20,600 St. John Knits Inc. ............................................................................... 545,900
11,200 Supreme International Corp.*....................................................................... 179,200
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
APPAREL, TEXTILES--(CONCLUDED)
<TABLE>
<C> <S> <C>
3,800 Tandy Brands Accessories Inc.*..................................................................... $ 61,275
17,700 Timberland Co.*.................................................................................... 796,500
18,200 Vans Inc.*......................................................................................... 114,887
3,600 Weyco Group Inc. .................................................................................. 86,400
42,300 Wolverine World Wide Inc. ......................................................................... 467,944
------------
6,862,304
------------
BANKS--0.81%
3,500 American Bank Inc. ................................................................................ 75,688
16,900 Corus Bank Shares Inc. ............................................................................ 574,600
4,500 CPB Inc. .......................................................................................... 76,500
4,100 First Citizens Bancshares, Inc. ................................................................... 361,825
9,396 HUBCO Inc. ........................................................................................ 304,195
3,100 Independent Bancshares Inc. New.................................................................... 33,325
5,700 U.S. Bancorp. Inc. ................................................................................ 102,600
------------
1,528,733
------------
BUILDING AND CONSTRUCTION PRODUCTS--
MISCELLANEOUS--0.03%
4,300 Kevco Inc.*........................................................................................ 37,625
3,000 Meadow Valley Corp.*............................................................................... 16,313
------------
53,938
------------
CHEMICALS--4.60%
11,865 Aceto Corp. ....................................................................................... 146,829
4,100 American Biltrite Inc. ............................................................................ 104,550
3,300 American Vanguard Corp. ........................................................................... 25,988
6,500 Ameron, Inc. ...................................................................................... 250,656
1,300 Atlantis Plastics Inc.*............................................................................ 11,375
14,500 Bairnco Corp. ..................................................................................... 94,250
12,200 Congoleum Corp.*................................................................................... 100,650
39,700 Dexter Corp. ...................................................................................... 1,163,706
133,400 Ethyl Corp. ....................................................................................... 850,425
43,200 Foamex International Inc.*......................................................................... 502,200
12,600 Furon Co. ......................................................................................... 164,587
31,800 Gencorp Inc. ...................................................................................... 743,325
32,400 General Chemical Group Inc. ....................................................................... 520,425
55,700 Georgia Gulf Corp. ................................................................................ 866,831
85,900 Hanna M.A. Co. .................................................................................... 950,269
8,100 Lydall Inc.*....................................................................................... 88,088
4,800 Maxco Inc.*........................................................................................ 39,600
12,000 Quaker Chemical.................................................................................... 190,500
4,900 Raven Industies Inc. .............................................................................. 78,400
40,400 Schulman A Inc. ................................................................................... 701,950
15,700 Stepan Chemical Co. ............................................................................... 397,406
9,800 Sybron Chemicals Inc.*............................................................................. 126,175
1,100 Uniflex Inc.*...................................................................................... 7,288
55,200 Wellman Inc. ...................................................................................... 520,950
------------
8,646,423
------------
COMPUTER--BUSINESS SERVICES--0.01%
3,000 Ontrack Data International Inc.*................................................................... 17,250
------------
COMPUTER HARDWARE--1.18%
10,800 Alphanet Solutions Inc.*........................................................................... 47,925
19,000 Amplicon Inc. ..................................................................................... 287,375
37,100 Banctec, Inc.*..................................................................................... 482,300
</TABLE>
45
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
COMPUTER HARDWARE--(CONCLUDED)
<TABLE>
<C> <S> <C>
79,800 Compucom Systems Inc.*............................................................................. $ 319,200
9,000 Dataram Corp.*..................................................................................... 81,562
6,900 En Pointe Technologies Inc.*....................................................................... 58,650
7,300 Gradco Systems Inc.*............................................................................... 18,250
17,000 HMT Technology Corp.*(1)........................................................................... 183,812
8,400 Kentek Information Systems Inc. ................................................................... 51,450
4,300 McRae Industries Inc. ............................................................................. 25,800
48,900 MTI Technology Corp.*.............................................................................. 273,534
8,900 PSC Inc.*.......................................................................................... 74,538
1,700 Savoir Technology Group Inc.*...................................................................... 19,550
7,900 Scan Optics Inc.*.................................................................................. 34,563
16,800 SED International Holdings Inc.*................................................................... 78,750
20,400 STB Systems Inc.*.................................................................................. 153,000
6,700 Transact Technologies Inc.*........................................................................ 20,100
------------
2,210,359
------------
COMPUTER SOFTWARE--0.31%
2,200 CFI Proservices Inc.*.............................................................................. 28,875
5,600 Elcom International Inc.*.......................................................................... 9,800
21,900 MacNeal Schwendler Corp.*.......................................................................... 142,350
32,700 Veritas DGC Inc.*.................................................................................. 406,706
------------
587,731
------------
CONSTRUCTION--0.12%
44,900 Halter Marine Group Inc.*.......................................................................... 230,113
------------
CONSUMER DURABLES--1.49%
13,200 Chromcraft Revington Inc. *........................................................................ 212,850
1,800 CHS Electronics Inc.*.............................................................................. 26,888
5,500 Flexsteel Industries Inc. ......................................................................... 67,375
12,500 Home Products International Inc.*.................................................................. 132,812
8,500 Middleby Corp.*.................................................................................... 48,344
29,600 Mikasa Inc. ....................................................................................... 336,700
24,600 O'Sullivan Industries*............................................................................. 313,650
2,100 Pulaski Furniture Corp. ........................................................................... 45,150
16,200 Rival Co. ......................................................................................... 218,700
13,700 Shelby Williams Industries Inc. ................................................................... 181,525
10,200 Stanley Furniture Co., Inc.*....................................................................... 224,400
4,300 Tab Products Co. .................................................................................. 24,725
20,500 Toro Co. .......................................................................................... 712,375
6,171 Virco Manufacturing Corp. ......................................................................... 109,535
4,800 Winsloew Furniture Inc.*........................................................................... 136,200
------------
2,791,229
------------
DEFENSE/AEROSPACE--1.46%
23,000 Alliant Techsystems Inc.*.......................................................................... 2,018,250
8,200 Allied Research Corp.*............................................................................. 58,425
4,900 Curtiss Wright Corp. .............................................................................. 183,137
11,800 Edo Corp. ......................................................................................... 93,663
2,100 First Aviation Services Inc.*...................................................................... 9,450
15,900 GRC International Inc.*............................................................................ 126,206
6,200 Herley Industries Inc.*............................................................................ 87,575
5,700 Safety Components International Inc.*.............................................................. 55,219
6,000 Sifco Industries Inc. ............................................................................. 68,250
3,800 Spacehab Inc.*..................................................................................... 39,900
------------
2,740,075
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
DIVERSIFIED INDUSTRIALS--0.11%
18,700 Esco Electronics Corp.*............................................................................ $ 205,700
------------
DIVERSIFIED RETAIL--0.48%
16,900 Ames Department Stores Inc.*....................................................................... 519,675
23,700 Bon Ton Stores Inc.*............................................................................... 186,637
1,800 Pamida Holdings Corp.*............................................................................. 6,525
18,000 RDO Equipment Co.*................................................................................. 153,000
8,700 Specialty Catalog Corp.*........................................................................... 32,625
------------
898,462
------------
DRUGS & MEDICINE--0.62%
75,599 Herbalife International Inc. ...................................................................... 1,089,561
8,900 Natural Alternatives International Inc.*........................................................... 81,212
------------
1,170,773
------------
ELECTRIC UTILITIES--3.00%
35,100 Cleco Corp. ....................................................................................... 1,105,650
9,500 Cogeneration Corp. America*........................................................................ 87,875
34,700 Commonwealth Energy Systems........................................................................ 1,361,975
82,700 El Paso Electric Co.*.............................................................................. 671,938
1,000 Florida Public Utilities Co. ...................................................................... 17,250
71,400 Public Service Co. ................................................................................ 1,343,212
10,900 Saint Joseph Light & Power Co. .................................................................... 191,431
21,200 TNP Enterprises Inc. .............................................................................. 753,925
5,000 Unisource Energy Corp.*............................................................................ 57,188
900 United Illuminating Co. ........................................................................... 43,650
------------
5,634,094
------------
ELECTRICAL EQUIPMENT--2.38%
9,000 Acme Electric Corp.*............................................................................... 44,437
2,600 Airport Systems International Inc.*................................................................ 6,988
1,500 American Technical Ceramics*....................................................................... 9,938
74,300 Ampex Corp.*....................................................................................... 329,706
9,800 Bel Fuse Inc. ..................................................................................... 370,175
45,900 Belden, Inc. ...................................................................................... 920,869
19,500 Cherry Corp.*...................................................................................... 263,250
10,700 Cobra Electronics Corp.*........................................................................... 45,475
5,100 Cognitronics Corp.*................................................................................ 44,625
11,100 CTS Corp. ......................................................................................... 527,944
19,100 Davox Corp.*....................................................................................... 164,737
2,500 Instron Corp. ..................................................................................... 42,813
2,600 Keithley Instrs Inc. .............................................................................. 20,800
21,100 Louisiana Barge Inc.*.............................................................................. 67,256
3,000 Moore Products Co.*................................................................................ 68,250
1,300 Napco Security Systems Inc.*....................................................................... 5,281
2,200 Nortech Systems Inc.*.............................................................................. 8,800
6,200 O. I. Corp.*....................................................................................... 38,750
13,500 Park Electrochemical Corp. ........................................................................ 404,156
38,400 Pioneer Standard Electronics, Inc. ................................................................ 343,200
8,200 Reliability Inc.*.................................................................................. 40,488
6,500 RF Monolithics Inc.*............................................................................... 72,312
10,700 Sparton Corp.*..................................................................................... 79,581
8,600 Spectrum Control Inc.*............................................................................. 33,863
4,300 Speizman Industries Inc.*.......................................................................... 20,156
9,000 T B Woods Corp. ................................................................................... 106,875
9,300 Tech Sym Corp.*.................................................................................... 243,544
7,000 Vertex Communications Corp.*....................................................................... 122,500
</TABLE>
46
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
ELECTRICAL EQUIPMENT--(CONCLUDED)
<TABLE>
<C> <S> <C>
4,800 Video Display Corp.*............................................................................... $ 33,000
------------
4,479,769
------------
ELECTRICAL POWER--1.23%
3,500 Aztec Manufacturing Co. ........................................................................... 31,500
34,500 Calpine Corp.*..................................................................................... 1,276,500
15,100 Carbide/Graphite Group Inc.*....................................................................... 184,031
12,400 Hughes Supply Inc. ................................................................................ 314,650
4,500 SL Industries Inc. ................................................................................ 59,063
16,600 UCAR International Inc.*........................................................................... 306,062
12,300 Woodhead Industries................................................................................ 136,069
------------
2,307,875
------------
ELECTRONIC COMPONENTS--0.48%
7,100 Axsys Technologies Inc.*........................................................................... 134,900
16,200 CP Clare Corp.*.................................................................................... 107,325
63,500 General Semiconductor Inc.*........................................................................ 523,875
7,200 Orbit International Corp.*......................................................................... 14,400
7,100 Recoton Corp.*..................................................................................... 129,575
------------
910,075
------------
ENERGY RESERVES & PRODUCTION--0.12%
2,700 Prima Energy Corp.*................................................................................ 39,488
29,400 Swift Energy Co.*.................................................................................. 180,075
844 Wilshire Oil Co.*.................................................................................. 3,587
------------
223,150
------------
ENERGY SOURCES--0.04%
16,900 York Research Corp.*............................................................................... 75,522
------------
ENTERTAINMENT--0.21%
5,800 Funco Inc.*........................................................................................ 77,575
31,000 Isle Capri Casinos Inc.*........................................................................... 122,063
18,225 Lakes Gaming Inc.*(1).............................................................................. 176,555
9,000 Rentrak Corp.*..................................................................................... 24,750
------------
400,943
------------
ENVIRONMENTAL SERVICES--0.21%
7,100 Exponent Inc.*..................................................................................... 43,488
9,600 Layne Christensen Co.*............................................................................. 66,000
7,400 MFRI Inc.*......................................................................................... 42,550
16,200 Schnitzer Steel Industries Inc. ................................................................... 232,875
------------
384,913
------------
FINANCIAL SERVICES--2.45%
45,000 Advanta Corp.(1) .................................................................................. 617,344
62,400 Amresco Inc.*...................................................................................... 717,600
69,200 Arcadia Financial Ltd.*(1)......................................................................... 315,725
36,300 Bluegreen Corp.*................................................................................... 231,412
1,000 Caribiner International Inc.*...................................................................... 9,188
7,650 Dain Rauscher Corp. ............................................................................... 236,194
3,800 Dewolfe Companies Inc.*............................................................................ 28,025
10,500 Ezcorp Inc. ....................................................................................... 89,250
9,100 First Alliance Co.*................................................................................ 29,433
12,800 Firstcity Financial Corp.*......................................................................... 187,200
8,400 FTI Consulting Inc.*............................................................................... 25,725
4,500 Gallagher Arthur J & Co. .......................................................................... 225,000
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
FINANCIAL SERVICES--(CONCLUDED)
<TABLE>
<C> <S> <C>
3,000 Jwgenesis Financial Corp.*......................................................................... $ 21,000
9,200 Kaye Group Inc. ................................................................................... 69,000
8,700 Main St. & Main Inc.*.............................................................................. 28,819
4,200 Pacific Crest Capital Inc.*........................................................................ 61,950
5,300 Refac Technology Development Corp.*................................................................ 36,437
30,550 Resource Bank Shares Mortgage Group Inc. .......................................................... 454,431
6,600 Strattec Security Corp.*........................................................................... 212,025
17,400 Student Loan Corp. ................................................................................ 728,625
30,500 United Companies Financial Corp.*(1)............................................................... 80,062
1,300 WFS Financial Inc.*................................................................................ 7,800
30,400 World Acceptance Corp.*............................................................................ 182,400
------------
4,594,645
------------
FOOD RETAIL--0.41%
17,700 Eagle Food Centers Inc.*........................................................................... 61,950
36,800 M & F Worldwide Corp.*............................................................................. 347,300
8,700 Marsh Supermarkets Inc.*........................................................................... 117,450
3,650 Schultz Sav O Stores Inc. ......................................................................... 60,225
7,500 Seaway Food Town Inc. ............................................................................. 114,375
8,200 Western Beef, Inc.*................................................................................ 59,450
------------
760,750
------------
FOREST PRODUCTS, PAPER--2.84%
18,200 ABT Building Products Corp.*....................................................................... 269,587
9,300 BCT International Inc.*............................................................................ 26,156
113,100 Boise Cascade Office Products Corp.*............................................................... 1,703,569
15,400 Caraustar Industries Inc. ......................................................................... 435,050
12,250 Fibermark Inc.*.................................................................................... 147,000
44,800 Glatfelter PH Co. ................................................................................. 509,600
1,000 Quipp Inc.*........................................................................................ 17,500
20,890 Republic Group Inc. ............................................................................... 409,966
61,800 Rock-Tennessee Co. ................................................................................ 1,112,400
27,700 Schweitzer Mauduit International Inc. ............................................................. 380,875
13,100 Shorewood Packaging Corp.*......................................................................... 260,363
4,480 Wausau Mosinee Paper Corp. ........................................................................ 70,840
------------
5,342,906
------------
FREIGHT, AIR, SEA & LAND--3.25%
34,800 Arkansas Best Corp.*............................................................................... 293,625
25,700 Arnold Industries Inc.*............................................................................ 388,712
7,300 Boyd Brothers Transportation Inc.*................................................................. 52,925
2,500 Circle International Group Inc. ................................................................... 42,969
8,300 Consolidated Delivery & Logistics Inc.*............................................................ 25,938
33,300 Consolidated Freightways Corp. .................................................................... 532,800
1,000 Dynamex Inc.*...................................................................................... 4,000
9,400 Forward Air Corp.*................................................................................. 214,437
9,400 Genesee & Wyoming Inc.*............................................................................ 128,075
27,200 Hvide Marine Inc.*................................................................................. 156,400
17,200 Kitty Hawk Inc.*................................................................................... 182,750
8,800 Landstar Systems Inc.*............................................................................. 367,400
9,600 Old Dominion Freight Lines Inc.*................................................................... 105,600
12,800 PAM Transportation Services Inc.*.................................................................. 118,400
36,500 Roadway Express Inc. Delaware...................................................................... 604,531
8,900 Smithway Motor Xpress Corp.*....................................................................... 76,763
10,500 Transport Corp. of America*........................................................................ 144,375
35,900 Trico Marine Services Inc.*........................................................................ 166,038
</TABLE>
47
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
FREIGHT, AIR, SEA & LAND--(CONCLUDED)
<TABLE>
<C> <S> <C>
41,000 U.S. Freightways Corp. ............................................................................ $ 1,429,875
18,900 US Xpress Enterprises Inc.*........................................................................ 316,575
1,700 Usa Truck Inc.*.................................................................................... 19,975
41,100 Yellow Corp.*...................................................................................... 737,231
------------
6,109,394
------------
GAS UTILITY--0.87%
5,800 Aquarion Co. ...................................................................................... 223,662
3,600 Connecticut Water Service Inc. .................................................................... 93,600
12,427 CTG Resources Inc. ................................................................................ 281,161
4,600 Energen Corp. ..................................................................................... 78,488
4,800 Energynorth Inc. .................................................................................. 138,900
5,550 Energysouth Inc. .................................................................................. 122,100
14,400 Northwest Natural Gas Co. ......................................................................... 338,400
9,100 Providence Energy Corp. ........................................................................... 185,981
1,300 Roanoke Gas Co. ................................................................................... 25,513
2,400 SJW Corp. ......................................................................................... 144,000
------------
1,631,805
------------
HEALTH & PERSONAL CARE--0.36%
7,400 Comprehensive Care Corp.*.......................................................................... 23,588
5,400 Hawaii Tech Pharmacal Co. Inc. .................................................................... 22,950
76,000 Pharmerica Inc.*................................................................................... 551,000
6,200 Styling Technology Corp.*.......................................................................... 85,250
------------
682,788
------------
HEALTHCARE COST CONTAINMENT--0.05%
12,700 Sheridan Healthcare Inc.*.......................................................................... 90,488
------------
HEAVY MACHINERY--1.67%
92,500 Agco Corp. ........................................................................................ 682,187
12,600 Alamo Group Inc. .................................................................................. 151,200
21,150 Allied Products Corp. ............................................................................. 137,475
21,000 Cascade Corp. ..................................................................................... 311,063
23,600 Columbus Mckinnon Corporation...................................................................... 533,950
4,200 Foilmark Inc.*..................................................................................... 7,875
11,400 Gehl Co.*.......................................................................................... 190,950
4,200 Gencor Industries Inc. ............................................................................ 27,825
16,400 Gradall Inds Inc.*................................................................................. 235,750
7,600 NACCO Industries Inc. ............................................................................. 643,625
7,600 Printware Inc.*.................................................................................... 24,700
1,300 Richton International Corp.*....................................................................... 11,375
4,600 Tennant Co. ....................................................................................... 170,200
4,000 Western Power & Equipment Corp.*................................................................... 15,000
------------
3,143,175
------------
HOTELS--1.10%
23,000 Ameristar Casinos Inc.*............................................................................ 80,500
5,600 Black Hawk Gaming & Development Inc.*.............................................................. 46,200
68,700 Boyd Gaming Corp.*................................................................................. 240,450
4,400 NPC International Inc.*............................................................................ 57,750
72,900 Park Place Entertainment Corp.*.................................................................... 496,631
6,784 Playcore Inc.*..................................................................................... 30,528
90,700 Prime Hospitality Corp.*........................................................................... 946,681
14,200 Sholodge, Inc.*.................................................................................... 97,625
6,900 Supertel Hospitality*.............................................................................. 68,138
------------
2,064,503
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
HOUSEHOLD PRODUCTS--0.81%
7,100 Align Rite International Inc.*..................................................................... $ 95,850
21,500 American Safety Razor Co.*......................................................................... 236,500
11,600 CCA Industries Inc.*............................................................................... 15,588
12,300 CPAC Inc.*......................................................................................... 58,425
6,000 Dixon Ticonderoga Co.*............................................................................. 55,500
25,900 Ekco Group Inc.*................................................................................... 95,506
24,500 French Fragrances Inc.*(1)......................................................................... 195,234
4,500 Jason Inc.*........................................................................................ 37,125
11,400 Jean Phillippe Fragrances Inc.*.................................................................... 76,238
7,300 Libbey Inc. ....................................................................................... 182,956
20,200 Lifetime Hoan Corp. ............................................................................... 212,100
7,800 Stephan Co. ....................................................................................... 83,362
28,000 Windmere Durable Holdings Inc.*.................................................................... 182,000
------------
1,526,384
------------
HUMAN RESOURCES--0.32%
9,100 Lai Worldwide Inc.*................................................................................ 55,738
11,900 Remedytemp*........................................................................................ 217,175
19,400 SOS Staffing Services Inc.*........................................................................ 207,337
15,900 Westaff Inc.*...................................................................................... 127,200
------------
607,450
------------
INDUSTRIAL PARTS--6.14%
13,186 Albany International Corp. ........................................................................ 276,906
5,200 Amistar Corp.*..................................................................................... 13,000
16,500 Ampco Pittsburgh Corp. ............................................................................ 169,125
34,000 Aviall Inc.*....................................................................................... 408,000
16,600 Baldwin Technology Inc.*........................................................................... 94,413
32,800 Barnes Group Inc. ................................................................................. 740,050
6,600 Bridgeport Machines Inc.*.......................................................................... 41,250
500 Chicago Rivet Machine Co. ......................................................................... 13,250
22,500 Commercial Intertech Corp. ........................................................................ 317,812
18,100 DT Industries Inc. ................................................................................ 244,350
1,800 Durakon Industries Inc.*........................................................................... 22,950
16,600 Esterline Technologies Corp.*...................................................................... 314,362
8,250 Farr Co.*.......................................................................................... 81,469
7,000 Farrel Corp. ...................................................................................... 21,000
17,000 Genlyte Group Inc.*................................................................................ 304,937
9,600 Gleason Corp. ..................................................................................... 162,600
35,400 Global Industrial Technologies Inc.*............................................................... 380,550
7,600 Gorman Rupp Co. ................................................................................... 126,350
1,700 Graham Corp.*...................................................................................... 15,938
17,450 Hardinge Brothers Inc. ............................................................................ 280,291
65,600 Hexcel Corp. New*.................................................................................. 606,800
11,500 Hirsch International Group*........................................................................ 44,563
10,700 Hurco Co. Inc.*.................................................................................... 45,809
17,400 Intevac Inc.*...................................................................................... 152,250
4,200 K Tron International Inc.*......................................................................... 74,025
6,100 Kaman Corp. ....................................................................................... 88,831
46,900 Kennametal Inc. ................................................................................... 1,090,425
14,200 Lawson Products Inc. .............................................................................. 308,850
11,300 Lufkin Inds Inc. .................................................................................. 210,463
55,900 Magnetek Inc.*..................................................................................... 649,837
7,600 Mestek, Inc.*...................................................................................... 157,700
4,200 Nortek, Inc.*...................................................................................... 116,550
2,500 P & F Industries Inc.*............................................................................. 24,531
1,000 Peerless Manufacturing Co. ........................................................................ 10,875
3,300 Penn Engineering Manufacturing Corp. .............................................................. 67,238
17,000 Powell Industries Inc.*............................................................................ 182,750
</TABLE>
48
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
INDUSTRIAL PARTS--(CONCLUDED)
<TABLE>
<C> <S> <C>
26,100 Quanex Corp. ...................................................................................... $ 517,106
4,600 Scotsman Industries, Inc. ......................................................................... 85,963
21,700 Shaw Group Inc.*................................................................................... 332,281
24,900 Specialty Equipment Cos Inc.*...................................................................... 698,756
20,800 Standex International Corp. ....................................................................... 540,800
11,000 Starrett LS Co. ................................................................................... 332,750
6,600 Summa Industries Inc.*............................................................................. 61,875
10,700 Transtechnology Corp. ............................................................................. 196,613
11,200 Trident International Inc.*........................................................................ 184,100
4,200 Twin Discount, Inc. ............................................................................... 81,375
44,300 Watts Industries Inc. ............................................................................. 647,887
------------
11,539,606
------------
INDUSTRIAL SERVICES/SUPPLIES--2.18%
33,700 Applied Industrial Technologies Inc. .............................................................. 448,631
27,600 C D I Corp.*....................................................................................... 596,850
59,700 Flowserve Corp. ................................................................................... 1,003,706
17,850 Healthcare Services Group Inc.*.................................................................... 203,044
44,050 Interpool Inc. .................................................................................... 699,294
3,700 Leasing Solutions Inc.*(1)......................................................................... 15,956
7,900 McGrath Rentcorp. ................................................................................. 152,569
14,600 Mitcham Industries Inc.*........................................................................... 59,312
13,335 Monro Muffler Brake Inc.*.......................................................................... 106,680
12,800 PLM International Inc.*............................................................................ 76,800
13,100 Sunrise Leasing Corp.*............................................................................. 44,213
50,300 Superior Energy Services Inc.*..................................................................... 125,750
8,400 Superior Surgical Manufacturing Inc. .............................................................. 127,575
44,100 Swisher International Group Inc.*.................................................................. 399,656
10,746 Travel Ports America Inc.*......................................................................... 37,611
680 Zimmerman Sign Co.*................................................................................ 2,423
------------
4,100,070
------------
INFORMATION & COMPUTER SERVICES--0.51%
7,400 American Physicians Service Group*................................................................. 37,000
31,000 Dames & Moore Inc. ................................................................................ 383,625
35,400 RTI International Metals Inc.*..................................................................... 438,075
1,000 Transport Lux Corp. ............................................................................... 9,062
600 Unidigital Inc.*................................................................................... 2,625
2,300 Value Line Inc. ................................................................................... 89,125
------------
959,512
------------
INSTRUMENTS--SCIENTIFIC--0.05%
11,100 Metrika Systems Corp.*............................................................................. 94,350
------------
LEISURE--2.41%
47,100 Arctic Cat Inc. ................................................................................... 426,844
7,950 Boston Acoustics Inc. ............................................................................. 186,825
14,900 Cannondale Corp.*.................................................................................. 109,887
9,700 Compdent Corp.*.................................................................................... 126,100
5,900 Concord Camera Corp.*.............................................................................. 29,131
24,100 Department 56 Inc.*................................................................................ 762,162
6,000 Ellett Brothers Inc. .............................................................................. 30,000
5,000 Equity Marketing Inc.*............................................................................. 39,063
3,800 First Commonwealth Inc.*........................................................................... 44,175
3,000 Fountain Power Boat Inds Inc.* .................................................................... 21,000
20,000 Go Video Inc.*..................................................................................... 57,500
5,100 Harman International Industries Inc. .............................................................. 214,200
3,700 ILX Inc.*.......................................................................................... 8,094
6,300 Inland Entertainment Corp.*........................................................................ 24,019
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
LEISURE--(CONCLUDED)
<TABLE>
<C> <S> <C>
5,400 Koss Corp.*........................................................................................ $ 61,425
67,600 Midway Games Inc.*................................................................................. 540,800
11,100 Play By Play Toys & Novelties*..................................................................... 79,087
41,600 Polaris Industries Inc. ........................................................................... 1,367,600
27,500 Quintel Entertainment Inc.*........................................................................ 56,719
9,900 Russ Berrie & Company Inc. ........................................................................ 238,837
14,700 Seattle Filmworks Inc.*............................................................................ 56,963
6,500 Sportsmans Guide Inc.*............................................................................. 45,094
------------
4,525,525
------------
LIFE INSURANCE--1.98%
39,600 American Annuity Group Inc. ....................................................................... 920,700
61,724 Amerus Life Holdings Inc. ......................................................................... 1,215,191
2,812 Cotton States Life Insurance Co. .................................................................. 36,029
7,053 Delphi Financial Group, Inc.*...................................................................... 353,532
5,800 Independence Holding Co. New....................................................................... 73,950
5,400 National Western Life Insurance Co.*............................................................... 666,900
21,200 Presidential Life Corp. ........................................................................... 394,850
10,000 Standard Management Corp.*......................................................................... 67,500
------------
3,728,652
------------
LONG DISTANCE & PHONE COMPANIES--0.01%
2,900 Hector Communications Corp.*....................................................................... 26,463
------------
MACHINERY & ENGINEERING SERVICES--0.03%
20,600 Iteq Inc.*......................................................................................... 46,350
------------
MANUFACTURING--GENERAL--1.05%
9,100 Alltrista Corp.*................................................................................... 219,537
1,514 Axiohm Transaction Solutions*...................................................................... 13,815
1,300 Core Matls Corp.*.................................................................................. 4,713
3,600 Featherlite Manufacturing Inc.*.................................................................... 22,500
70,000 Milacron Inc. ..................................................................................... 1,369,375
11,100 Regal Beloit Corp. ................................................................................ 255,300
3,500 Silgan Holdings Inc.*.............................................................................. 81,813
------------
1,967,053
------------
MANUFACTURING--HIGH TECHNOLOGY--0.20%
12,800 Blonder Tongue Labs Inc.*.......................................................................... 78,400
16,400 Channell Commercial Corp.*......................................................................... 139,400
3,000 Communications Systems............................................................................. 31,875
2,600 DSP Technology Inc.*............................................................................... 18,037
6,200 Percon Acquisition Inc.*........................................................................... 49,600
1,100 Thermwood Corp.*................................................................................... 6,600
12,100 Vivid Technologiesinc*............................................................................. 53,694
------------
377,606
------------
MEDICAL PRODUCTS--0.52%
12,500 American Dental Technologies*...................................................................... 54,687
13,000 Biosource International Inc.*...................................................................... 43,063
4,200 Lakeland Industries, Inc.*......................................................................... 26,775
7,900 Medstone International Inc. New*................................................................... 61,225
6,600 Mesa Labs Inc.*.................................................................................... 29,700
6,800 Selas Corp. America................................................................................ 48,450
38,100 Sola International Inc.*........................................................................... 635,794
11,000 Utah Medical Products Inc.*........................................................................ 70,812
------------
970,506
------------
</TABLE>
49
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
<TABLE>
<C> <S> <C>
MEDICAL PROVIDERS--1.90%
62,400 Genesis Health Ventures Inc.*...................................................................... $ 514,800
2,100 Horizon Health Corp.*.............................................................................. 13,978
80,400 Integrated Health Services, Inc.*.................................................................. 1,125,600
25,200 Mariner Post Acute Network Inc.*................................................................... 119,700
50,300 Phymatrix Corp.*................................................................................... 113,175
31,700 Promedco Management Co.*........................................................................... 174,350
15,700 Raytel Medical Corp.*.............................................................................. 74,575
9,400 Rehabcare Group Inc.*.............................................................................. 191,525
15,200 Response Oncology Inc.*............................................................................ 61,750
16,400 Rural/Metro Corp.*................................................................................. 168,100
6,000 Safeguard Health Enterprises*...................................................................... 19,125
21,900 Sierra Health Services Inc.*....................................................................... 413,363
12,800 Specialty Care Network Inc.*....................................................................... 15,600
6,700 Star Multi Care Services Inc.*..................................................................... 11,306
110,600 Sun Healthcare Group Inc.*(1)...................................................................... 559,912
------------
3,576,859
------------
MINING & METALS--5.98%
191,600 Armco Inc.*........................................................................................ 946,025
14,500 Atchinson Casting Corp.*........................................................................... 141,375
22,900 Bayou Steel Corp.*................................................................................. 88,738
6,600 BWAY Corp.*........................................................................................ 89,513
34,600 Carpenter Technology Corp. ........................................................................ 1,029,350
5,700 Castle A M & Co. .................................................................................. 84,075
22,400 Century Aluminum Co. .............................................................................. 187,600
23,100 Chase Industries Inc.*............................................................................. 246,881
30,800 Citation Corp.*.................................................................................... 388,850
21,900 Cleveland Cliffs Inc. ............................................................................. 895,162
26,900 Commercial Metals Co. ............................................................................. 662,412
11,500 Foster LB Co.*..................................................................................... 61,813
25,800 Friedmans Industries Inc.*......................................................................... 314,437
43,700 Intermet Corp. .................................................................................... 595,412
79,000 Kaiser Aluminum Corp.*............................................................................. 404,875
5,900 Kentucky Electric Steel Inc.*...................................................................... 22,125
11,700 Keystone Consolidated Industries Inc.*............................................................. 101,644
5,500 Lindberg Corp. .................................................................................... 68,750
6,700 Maxxam Inc.*....................................................................................... 370,175
1,700 Metals USA Inc.*................................................................................... 16,894
69,800 National Steel Corp. .............................................................................. 658,737
6,300 Niagara Corporation Delaware*...................................................................... 37,012
2,000 Northern Technologies International................................................................ 12,875
8,800 Northwest Pipe Co.*................................................................................ 148,500
5,400 Oglebay Norton Co. ................................................................................ 141,750
3,500 Olympic Steel Inc.*................................................................................ 25,813
7,900 Pitt Desmoines Inc. ............................................................................... 187,625
35,500 Pittston Co. ...................................................................................... 406,031
4,975 Riviera Tool Co.*.................................................................................. 23,631
8,850 Roanoke Electric Steel Corp. ...................................................................... 133,856
28,400 Rouge Industries Inc. ............................................................................. 339,025
2,800 Ryerson Tull Inc.*................................................................................. 26,250
26,700 Special Metals Corp.*.............................................................................. 163,538
18,300 Steel Technologies Inc. ........................................................................... 155,550
32,700 Texas Industries Inc. ............................................................................. 866,550
38,600 Titanium Metals Corp.(1)........................................................................... 342,575
10,100 Universal Stainless & Alloy*....................................................................... 69,438
6,000 Valmont Industries Inc. ........................................................................... 81,000
13,100 Webco Industries Inc.*............................................................................. 81,875
25,100 Wolverine Tube Inc.*............................................................................... 566,319
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
MINING & METALS--(CONCLUDED)
<TABLE>
<C> <S> <C>
6,922 Zemex Corp.*....................................................................................... $ 46,291
------------
11,230,347
------------
MOTOR VEHICLES--3.52%
35,600 Aftermarket Technology Corp.*...................................................................... 320,400
27,800 Arvin Industries Inc. ............................................................................. 1,099,837
4,264 Autocam Corp. ..................................................................................... 59,696
7,400 Bandag Inc. ....................................................................................... 290,450
10,400 Collins Industries Inc. ........................................................................... 46,800
6,900 Cross Continent Auto Retailers*.................................................................... 72,881
10,600 Defiance, Inc. .................................................................................... 99,375
6,000 Edelbrock Corp.*................................................................................... 87,000
4,100 Hilite Industries Inc. ............................................................................ 39,975
73,100 Mascotech Inc. .................................................................................... 1,155,894
13,700 Modine Manufacturing Co. .......................................................................... 393,875
14,850 Monaco Coach Corp.*................................................................................ 430,650
8,800 Motorcar Parts & Accesories Inc.*.................................................................. 93,500
11,300 Oshkosh Truck Corp. ............................................................................... 401,150
14,600 R & B Inc.*........................................................................................ 111,325
7,700 Rush Enterprises Inc.*............................................................................. 100,100
19,400 Shiloh Industries Inc.*............................................................................ 283,725
31,000 Simpson Industries, Inc. .......................................................................... 325,500
900 SMC Corp.*......................................................................................... 4,500
30,000 Standard Products Co. ............................................................................. 579,375
7,194 Supreme Industries, Inc.*.......................................................................... 66,545
40,700 TBC Corp.*......................................................................................... 269,637
12,112 Varlen Corp. ...................................................................................... 290,688
------------
6,622,878
------------
OIL REFINING--0.53%
5,700 Adams Resources & Energy Inc. ..................................................................... 35,625
4,400 Castle Energy Corp. ............................................................................... 71,500
48,500 Frontier Oil Corp.*................................................................................ 272,812
9,400 Holly Corp. ....................................................................................... 145,700
7,762 Mercury Air Group, Inc.*(1)........................................................................ 61,126
10,500 Petroleum Development Corp.*....................................................................... 33,469
20,700 Tesoro Petroleum Corp.*............................................................................ 225,112
12,600 World Fuel Services Corp. ......................................................................... 141,750
------------
987,094
------------
OIL SERVICES--3.15%
9,200 Dawson Geophysical Co.*............................................................................ 60,950
18,100 Gulf Islands Fabrication Inc.*..................................................................... 128,963
92,800 Marine Drilling Companies Inc.*.................................................................... 684,400
27,400 Maverick Tube Corp.*............................................................................... 159,263
79,500 National Oilwell Inc.*............................................................................. 775,125
33,000 Offshore Logistics Inc.*........................................................................... 321,750
118,100 Parker Drilling Co.*............................................................................... 369,062
33,500 Pool Energy Services Co.*.......................................................................... 402,000
86,400 Pride International Inc.*.......................................................................... 550,800
39,700 RPC Energy Services, Inc........................................................................... 267,975
20,600 Seacor Smit Inc.*(1)............................................................................... 916,700
1,200 TMBR / Sharp Drilling Inc.*........................................................................ 4,200
80,100 Tuboscope Inc.*.................................................................................... 560,700
97,400 Varco International Inc.*.......................................................................... 712,237
------------
5,914,125
------------
OTHER INSURANCE--6.93%
27,100 Acceptance Insurance Co.*.......................................................................... 467,475
</TABLE>
50
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
OTHER INSURANCE--(CONCLUDED)
<TABLE>
<C> <S> <C>
1,980 Amwest Insurance Group, Inc. ...................................................................... $ 27,225
10,200 Atlantic American Corp.*........................................................................... 44,625
5,600 Bancinsurance Corp.*............................................................................... 33,600
48,500 Capital Re Corp. .................................................................................. 882,094
21,700 Centris Group Inc. ................................................................................ 227,850
16,600 Chartwell Re Corp. ................................................................................ 385,950
9,333 Donegal Group Inc. ................................................................................ 108,496
13,900 EMC Insurance Group Inc. .......................................................................... 173,750
45,783 Fidelity National Financial Inc. .................................................................. 1,218,975
47,900 Foremost Corp. of America.......................................................................... 993,925
66,570 Frontier Insurance Group Inc. ..................................................................... 1,002,711
46,200 Harleysville Group Inc. ........................................................................... 975,975
2,200 Investors Title Insurance Co. ..................................................................... 46,750
10,500 Landamerica Financial Group Inc. .................................................................. 524,344
800 Midland Co. ....................................................................................... 20,800
33,700 MMI Companies Inc. ................................................................................ 572,900
11,565 Mobile America Corp. Florida....................................................................... 47,706
29,500 NAC Reinsurance Corp. ............................................................................. 1,441,812
12,700 Navigators Group Inc.*............................................................................. 198,437
11,100 Nymagic Inc. ...................................................................................... 193,556
15,300 Penn America Group Inc. ........................................................................... 162,562
3,388 Professionals Insurance Co Management Group*....................................................... 101,005
25,878 PXRE Corp. ........................................................................................ 528,882
15,875 RLI Corp. ......................................................................................... 529,828
51,900 Selective Insurance Group Inc. .................................................................... 947,175
7,600 Stewart Information Services Corp. ................................................................ 406,600
20,150 Trenwick Group Inc. ............................................................................... 664,950
8,500 UNICO American Healthcare Co. ..................................................................... 99,875
------------
13,029,833
------------
PUBLISHING--1.69%
58,800 Bowne & Co. Inc. .................................................................................. 904,050
3,000 Courier Corp. ..................................................................................... 68,250
6,100 Educational Development Corp. ..................................................................... 16,394
37,300 Franklin Quest Co.*................................................................................ 620,112
25,200 Merrill Corp. ..................................................................................... 406,350
3,200 Northstar Computer Forms Inc. ..................................................................... 27,200
10,400 Primesource Corp. ................................................................................. 68,900
20,300 Scientific Games Holdings Corp.*................................................................... 350,175
29,500 Wallace Computer Series Inc. ...................................................................... 708,000
------------
3,169,431
------------
RAILROADS--0.40%
22,100 Greenbrier Companies Inc. ......................................................................... 265,200
2,400 Providence & Worcester Railroad Co. ............................................................... 26,100
14,200 Railtex Inc.*...................................................................................... 193,475
14,000 Westinghouse Air Brake Co. New..................................................................... 266,000
------------
750,775
------------
REAL PROPERTY--6.84%
9,400 American Buildings Co. New*........................................................................ 224,425
5,800 Apogee Enterprises Inc. ........................................................................... 59,813
10,500 Beazer Homes USA Inc. *(1)......................................................................... 283,500
13,200 Butler Manufacturing Co. .......................................................................... 337,425
16,700 Cameron Ashley Building Products, Inc.*............................................................ 223,362
18,520 Cavalier Homes Inc. ............................................................................... 185,200
38,000 Centex Construction Products Inc. ................................................................. 1,417,875
16,650 D.R. Horton Inc. .................................................................................. 351,731
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
REAL PROPERTY--(CONCLUDED)
<TABLE>
<C> <S> <C>
6,100 Dominion Homes Inc.*............................................................................... $ 67,100
12,000 Drew Industries Inc. New*.......................................................................... 151,500
19,800 Engle Homes Inc. .................................................................................. 273,487
27,200 Florida Rock Industries, Inc. ..................................................................... 787,100
21,300 Fortress Group Inc.*............................................................................... 46,594
16,200 Giant Cement Holding, Inc.*........................................................................ 291,600
54,800 Griffon Corp.*..................................................................................... 578,825
35,900 Hovnanian Enterprises Inc.*........................................................................ 316,369
5,200 International Aluminum Corp. ...................................................................... 156,000
37,800 Lone Star Industries, Inc. ........................................................................ 1,389,150
19,900 M.D.C. Holdings, Inc. ............................................................................. 417,900
7,488 MYR Group, Inc. ................................................................................... 86,112
2,800 NCI Building Systems Inc.*......................................................................... 74,900
15,100 NVR Inc.*.......................................................................................... 673,837
10,100 Patrick Industries Inc. ........................................................................... 148,975
8,100 Perini Corp.*...................................................................................... 43,538
13,100 Robertson Ceco Corp.*.............................................................................. 105,619
4,800 Ryland Group Inc. ................................................................................. 125,400
15,200 Schottenstein Homes Inc. .......................................................................... 305,900
12,700 Skyline Corp. ..................................................................................... 390,525
25,600 Southern Energy Homes Inc.*........................................................................ 163,200
59,000 Toll Brothers Inc.*................................................................................ 1,357,000
13,700 Turner Corp.*...................................................................................... 237,181
20,000 United States Home Corp.*.......................................................................... 710,000
10,400 Washington Homes Inc. New*......................................................................... 66,300
30,900 Del Webb Corp.*.................................................................................... 803,400
------------
12,850,843
------------
RENTAL AUTO/EQUIPMENT--0.65%
55,300 Budget Group Inc.*................................................................................. 791,481
23,000 Cort Business Services Corp.*...................................................................... 431,250
------------
1,222,731
------------
RESTAURANTS--1.90%
4,500 Arkansas Restaurants Corp.*........................................................................ 45,563
3,300 Back Bay Restrurant Group*......................................................................... 31,763
3,500 Benihana Inc.*..................................................................................... 41,891
14,800 Blimpie International Inc. ........................................................................ 39,775
18,000 Cooker Restaurant Corp. ........................................................................... 123,750
8,100 ELXSI Corp.*....................................................................................... 81,000
53,900 Landrys Seafood Rest Inc.*......................................................................... 384,037
69,700 Lone Star Steakhouse & Saloon*..................................................................... 566,312
41,100 Lubys Cafeterias Inc. ............................................................................. 634,481
6,900 Max & Ermas Restaurants Inc.*...................................................................... 50,888
16,200 Piccadilly Cafeterias Inc. ........................................................................ 167,062
80,000 Ryan's Family Steak Houses, Inc.*.................................................................. 1,105,000
10,000 Sbarro Inc.*....................................................................................... 268,125
12,400 Sizzler International Inc.*........................................................................ 29,450
------------
3,569,097
------------
SECURITIES & ASSET MANAGEMENT--1.21%
37,800 Hambrecht & Quist Group Inc.*...................................................................... 1,077,300
4,000 Interstate Johnson Lane, Inc. ..................................................................... 124,750
28,050 Morgan Keegan, Inc. ............................................................................... 506,653
16,469 Southwest Securities Group Inc. ................................................................... 476,572
9,265 Stifel Financial Corp. ............................................................................ 93,229
------------
2,278,504
------------
</TABLE>
51
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONCLUDED)
<TABLE>
<C> <S> <C>
SEMICONDUCTOR--1.62%
16,800 Cohu Inc. ......................................................................................... $ 548,100
7,800 Diodes Inc.*....................................................................................... 43,875
9,000 Electro Scientific Industries Inc.*................................................................ 372,375
19,200 Integrated Circuit Systems Inc.*................................................................... 362,400
2,600 Katy Industries Inc. .............................................................................. 45,825
9,200 Marshall Industries*............................................................................... 207,575
8,800 Microsemi Corp.*................................................................................... 112,200
15,000 Nu Horizons Electronics Corp.*..................................................................... 78,750
4,200 Optek Technology Inc.*............................................................................. 71,925
37,900 Pilgrims Pride Corp. .............................................................................. 885,912
9,200 Plasma Therm Inc.*................................................................................. 39,100
24,900 Richardson Electronics Ltd. ....................................................................... 236,550
6,600 Semex Corp.*....................................................................................... 22,275
11,200 Taitron Components Inc.*........................................................................... 19,600
------------
3,046,462
------------
SPECIALTY RETAIL--1.37%
8,200 Advanced Marketing Services, Inc................................................................... 196,800
15,800 Blair Corp. ....................................................................................... 330,812
17,500 Building Materials Holding Corp.*.................................................................. 216,563
11,100 Cole National Corp.*............................................................................... 184,538
8,800 Duckwall Alto Stores Inc. New*..................................................................... 116,600
14,400 Finlay Enterprises Inc.*........................................................................... 158,400
8,295 Friedman Industries, Inc........................................................................... 40,438
6,400 Holiday RV Superstores Inc.*....................................................................... 14,000
29,800 Inacom Corp.*(1)................................................................................... 389,262
400 Lands End Inc.*.................................................................................... 12,950
6,900 Piercing Pagoda Inc.*.............................................................................. 67,275
11,200 Rex Stores Corp.*.................................................................................. 140,700
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
SPECIALTY RETAIL--(CONCLUDED)
<TABLE>
<C> <S> <C>
11,200 Sport Supply Group Inc.*........................................................................... $ 100,800
19,000 Tandycrafts Inc.*.................................................................................. 54,625
47,700 United States Office Products Co.*................................................................. 277,256
9,400 Wolohan Lumber Co. ................................................................................ 121,025
15,200 York Group Inc. ................................................................................... 152,950
------------
2,574,994
------------
THRIFT--0.56%
59,100 Bankatlantic Bancorp Inc.(1) ...................................................................... 513,431
10,450 D & N Savings Financial Corp. ..................................................................... 222,716
500 Hawthorne Financial Corp.*......................................................................... 8,500
15,100 Metrowest Bank..................................................................................... 96,262
3,300 Saint Francis Capital Corp. ....................................................................... 138,600
1,600 Washington Savings Bank FSB........................................................................ 6,900
8,600 Westcorp Inc. ..................................................................................... 68,263
------------
1,054,672
------------
TOBACCO--0.32%
47,200 General Cigar Holdings Inc.*....................................................................... 424,800
22,100 Standard Commercial Corp........................................................................... 172,656
------------
597,456
------------
WIRELESS TELECOMMUNICATIONS--0.17%
7,300 Amerilink Corp.*................................................................................... 60,909
86,300 Rohn Inds Inc.*.................................................................................... 266,991
------------
327,900
------------
Total Common Stocks (cost--$181,764,373)...................................................................... 179,030,604
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE
- --------- -------------------- --------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--4.88%
$ 9,177 Repurchase Agreement dated 01/29/99 with State Street
Bank & Trust Company, collaterized by $9,066,708 U.S.
Treasury Notes, 5.375% due 01/31/00 (value--$9,361,376);
proceeds: $9,180,059 (cost--$9,177,000)................... 02/01/99 4.000% 9,177,000
------------
Total Investments (cost--$190,941,373)--100.15%........................ 188,207,604
Liabilities in excess of other assets--(0.15)%......................... (278,556)
------------
Net Assets--100.00%.................................................... $187,929,048
------------
------------
</TABLE>
- -----------------
* Non-Income producing security
(1) Security, or portion thereof, was on loan at January 31, 1999.
See accompanying notes to financial statements
52
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY GROWTH INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--94.67%
BANKS--3.28%
116,700 First American Corp. of Tennessee.................................................................. $ 4,872,225
85,700 Webster Financial Corp............................................................................. 2,560,288
------------
7,432,513
------------
COMPUTER HARDWARE--9.52%
95,800 EMC Corp.*......................................................................................... 10,430,225
94,300 Fore Systems*...................................................................................... 1,585,419
91,800 Jack Henry & Associates Inc. ...................................................................... 3,522,825
114,200 Network Appliance Inc. ............................................................................ 6,052,600
------------
21,591,069
------------
COMPUTER SOFTWARE--6.48%
38,300 Aspect Development Inc.*........................................................................... 1,105,912
97,800 Bindview Development Corp.*........................................................................ 2,420,550
35,400 Clarify Inc.*...................................................................................... 944,738
39,800 Edwards J D & Co.*................................................................................. 808,438
13,000 Infospace Common Inc.*............................................................................. 747,500
18,400 Inso Corp.*........................................................................................ 460,000
5,000 Smith Gardner & Associates Inc.*................................................................... 60,000
78,600 Softworks Inc.*.................................................................................... 471,600
91,700 Veritas Software Co.*.............................................................................. 7,668,412
------------
14,687,150
------------
CONSTRUCTION--0.47%
96,000 National Equipment Services Inc.*.................................................................. 1,068,000
------------
DEFENSE/AEROSPACE--0.38%
44,500 AAR Corp........................................................................................... 862,188
------------
DIVERSIFIED RETAIL--2.51%
123,800 Cost Plus Inc.*.................................................................................... 4,394,900
73,000 Hibbett Sporting Goods Inc.*(1).................................................................... 1,295,750
------------
5,690,650
------------
ELECTRICAL EQUIPMENT--5.66%
121,750 Gemstar Group Ltd.*................................................................................ 7,046,281
218,100 Mettler Toledo International Inc.*................................................................. 5,779,650
------------
12,825,931
------------
ELECTRONIC COMPONENTS--1.91%
65,900 Teradyne Inc.*..................................................................................... 4,341,163
------------
ENTERTAINMENT--2.80%
42,000 Tweeter Home Entertainment Group Inc.*............................................................. 1,286,250
140,500 USA Networks, Inc.*................................................................................ 5,058,000
------------
6,344,250
------------
FINANCIAL SERVICES--4.18%
35,500 Blanch E W Holdings Inc............................................................................ 2,012,406
39,600 Doral Financial Corp............................................................................... 793,237
49,300 Metris Companies Inc. ............................................................................. 2,489,650
91,380 Nova Corp.*........................................................................................ 2,918,449
15,200 Pacific Gateway Exchange Inc.*..................................................................... 503,500
14,100 Policy Management Systems Corp.*................................................................... 756,994
------------
9,474,236
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
FOOD RETAIL--0.30%
77,600 Packaged Ice Inc.*................................................................................. $ 659,600
1,600 Schultz Sav O Stores Inc........................................................................... 26,400
------------
686,000
------------
HOTELS--0.28%
67,200 Extended Stay America Inc.*........................................................................ 625,800
------------
INDUSTRIAL SERVICES/SUPPLIES--5.49%
165,500 Comfort Systems USA Inc.*.......................................................................... 2,979,000
35,900 G & K Services Inc.*............................................................................... 1,965,525
60,800 Intergrated Electrical Services*................................................................... 1,170,400
135,000 Profit Recovery Group International Inc.*.......................................................... 4,657,500
195,500 Protection One Inc.*............................................................................... 1,661,750
------------
12,434,175
------------
INFORMATION & COMPUTER SERVICES--6.36%
66,700 Answerthink Consulting Group*(1)................................................................... 1,884,275
128,500 Snyder Communications Inc.*(1)..................................................................... 5,140,000
85,450 SPR Inc.*.......................................................................................... 1,794,450
156,100 Sun Guard Data Systems*(1)......................................................................... 5,600,088
------------
14,418,813
------------
MEDIA--5.84%
118,300 Chancellor Media Corp.*............................................................................ 6,802,250
56,100 Emmis Broadcasting Corp.*.......................................................................... 2,875,125
36,100 Metro Networks Inc.*............................................................................... 1,786,950
46,100 TCA Cable TV Inc.*................................................................................. 1,777,731
------------
13,242,056
------------
MEDICAL PRODUCTS--1.17%
29,700 Coulter Pharmaceutical Inc.*....................................................................... 744,356
61,600 Renal Care Group Inc.*............................................................................. 1,909,600
------------
2,653,956
------------
MEDICAL PROVIDERS--5.50%
78,700 Alternative Living Services Inc.*(1)............................................................... 2,193,763
188,000 Brookdale Living Community Inc.*................................................................... 3,760,000
125,600 Sunrise Assisted Living Inc.*(1)................................................................... 5,275,200
38,700 Trigon Healthcare Inc.*............................................................................ 1,235,981
------------
12,464,944
------------
OTHER INSURANCE--2.70%
102,200 Ambac Financial Group Inc. ........................................................................ 6,112,838
------------
PUBLISHING--2.98%
93,300 Consolidated Graphics Inc.*........................................................................ 6,764,250
------------
REAL PROPERTY--0.93%
44,600 Resource Asset Investment Trust.................................................................... 557,500
66,900 Wilmar Industries Inc.*(1)......................................................................... 1,555,425
------------
2,112,925
------------
RESTAURANTS--3.84%
122,750 Cheesecake Factory Inc.*........................................................................... 2,792,562
94,500 Dave & Busters Inc.*............................................................................... 2,079,000
</TABLE>
53
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY GROWTH INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONCLUDED)
RESTAURANTS--(CONCLUDED)
<TABLE>
<C> <S> <C>
57,100 Ruby Tuesday Inc. ................................................................................. $ 1,138,431
106,850 Sonic Corp.*....................................................................................... 2,697,963
------------
8,707,956
------------
SEMICONDUCTOR--7.16%
179,400 Applied Micro Circuits Corp.*...................................................................... 7,534,800
113,900 Micrel Inc.*....................................................................................... 5,609,575
42,100 Novellus Systems Inc.*............................................................................. 3,078,562
------------
16,222,937
------------
SPECIALTY RETAIL--8.06%
35,800 Concepts Direct Inc.*.............................................................................. 358,000
103,350 Dollar Tree Stores Inc.*........................................................................... 4,463,428
60,200 Just For Feet Inc.*................................................................................ 903,000
121,200 Linens 'N Things Inc.*............................................................................. 4,469,250
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
</TABLE>
SPECIALTY RETAIL--(CONCLUDED)
<TABLE>
<C> <S> <C>
54,800 MSC Industrial Direct Inc., Class A*............................................................... $ 1,417,950
232,575 Staples, Inc.*..................................................................................... 6,657,459
------------
18,269,087
------------
WIRELESS TELECOMMUNICATIONS--6.87%
46,800 DSET Corp.*........................................................................................ 854,100
55,900 Genesys Telecommunications Labs Inc.*.............................................................. 1,369,550
228,800 Geotel Communications Corp.*....................................................................... 8,937,500
80,400 Nextlink Communications Inc.*(1)................................................................... 3,552,675
63,700 Star Telecommunications Inc.*...................................................................... 851,987
------------
15,565,812
------------
Total Common Stocks (cost--$153,307,665)...................................................................... 214,598,699
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE
- --------- -------------------- --------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--6.02%
$ 13,649 Repurchase Agreement dated 01/29/99 with State Street
Bank & Trust Company, collateralized by $13,484,962 U.S.
Treasury Notes, 5.375% due 01/31/00 (value--$13,923,223);
proceeds: $13,653,550 (cost--$13,649,000)................. 02/01/99 4.000% 13,649,000
------------
Total Investments (cost--$166,956,665)--100.69%........................ 228,247,699
Liabilities in excess of other assets--(0.69)%......................... (1,567,834)
------------
Net Assets--100.00%.................................................... $226,679,865
------------
------------
</TABLE>
- -----------------
* Non-Income producing security
(1) Security, or a portion of, was on loan at January 31, 1999.
See accompanying notes to financial statements
54
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--95.06%
AUSTRALIA--2.39%
BANKS--0.47%
126,900 Westpac Banking Corp.(1)........................................................ $ 879,068
---------------
COMPUTERS--0.58%
200,000 Telstra Corp.................................................................... 1,088,208
---------------
FINANCE--0.37%
51,400 Lend Lease Corp................................................................. 681,564
---------------
TRANSPORTATION--0.97%
40,000 Brambles Industries Ltd. ....................................................... 1,089,543
183,500 Mayne Nickless Ltd. ............................................................ 714,155
---------------
1,803,698
---------------
Total Australia Common Stocks...................................................................... 4,452,538
---------------
DENMARK--0.47%
BANKS--0.47%
10,400 Unidanmark A/S.................................................................. 866,667
---------------
EGYPT--0.45%
CONSTRUCTION--0.45%
44,000 Suez Cement Company S.A.E ADR................................................... 840,400
---------------
FINLAND--2.42%
TELECOMMUNICATIONS--2.42%
30,800 Nokia Corp...................................................................... 4,499,029
---------------
FRANCE--12.86%
BANKS--0.75%
7,800 Societe Generale................................................................ 1,400,930
---------------
BASIC INDUSTRIES--0.87%
9,900 Air Liquide S.A................................................................. 1,621,676
---------------
CONSUMER GOODS--1.27%
3,424 Promodes(1)..................................................................... 2,362,584
---------------
ENERGY--1.38%
23,700 Elf Aquitaine S.A............................................................... 2,570,169
---------------
FINANCE--2.65%
34,029 AXP-UAP......................................................................... 4,943,619
---------------
FOOD STORES--1.55%
10,251 Groupe Danone................................................................... 2,878,247
---------------
OIL & GAS--0.77%
14,000 Total S.A. (Class B)............................................................ 1,424,348
---------------
UTILITIES--3.62%
23,059 Vivendi......................................................................... 6,747,050
---------------
Total France Common Stocks......................................................................... 23,948,623
---------------
GERMANY--12.78%
AUTOMOTIVE MANUFACTURING--0.74%
1,944 Bayerische Motoren Werke AG(1).................................................. 1,373,785
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
GERMANY--(CONCLUDED)
<TABLE>
<C> <S> <C>
BANKS--1.68%
32,969 Bayerische Vereinsbank AG....................................................... $ 2,143,713
17,500 Deutsche Bank AG................................................................ 991,672
---------------
3,135,385
---------------
COMPUTER BUSINESS SERVICES--1.64%
43,000 Siemens AG...................................................................... 3,057,459
---------------
COMPUTER SOFTWARE & SERVICES--0.74%
3,500 SAP AG.......................................................................... 1,380,583
---------------
ENGINEERING SERVICES--3.87%
51,000 Mannesmann AG................................................................... 7,211,996
---------------
INSURANCE--1.99%
10,120 Allianz AG...................................................................... 3,715,763
---------------
METALS & MINING--1.57%
5,700 Preussag AG..................................................................... 2,915,764
---------------
RETAIL--0.55%
12,500 Metro AG........................................................................ 1,015,970
---------------
Total Germany Common Stocks........................................................................ 23,806,705
---------------
GREECE--0.40%
BANKS--0.40%
6,300 Alpha Credit Bank............................................................... 736,509
---------------
HONG KONG--1.13%
FINANCE--0.17%
46,000 Hutchison Whampoa Ltd........................................................... 326,502
---------------
REAL ESTATE--0.43%
75,000 Cheung Kong Holdings Ltd........................................................ 520,242
65,000 Henderson Land Developement Co. Ltd............................................. 282,689
---------------
802,931
---------------
UTILITIES--0.53%
309,000 China Telecom Ltd.*............................................................. 552,298
93,800 CLP Holdings.................................................................... 426,100
---------------
978,398
---------------
Total Hong Kong Common Stocks...................................................................... 2,107,831
---------------
IRELAND--1.07%
BANKING--1.07%
88,887 Bank of Ireland................................................................. 1,995,585
---------------
ISRAEL--0.09%
ELECTRONICS--0.09%
4,000 Orbotech Ltd.*.................................................................. 160,209
---------------
ITALY--6.20%
BANKS--1.17%
134,050 IMI SPA*........................................................................ 2,186,672
---------------
COMPUTERS--0.60%
120,000 Telecom Italia SPA.............................................................. 1,124,018
---------------
</TABLE>
55
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
ITALY--(CONCLUDED)
<TABLE>
<C> <S> <C>
FINANCE--1.29%
440,962 Credito Italiano................................................................ $ 2,401,052
---------------
INSURANCE--2.22%
56,594 Assic Generali.................................................................. 2,406,063
715,933 INA............................................................................. 1,725,334
---------------
4,131,397
---------------
UTILITIES--0.92%
251,000 Telecom Italia Mobile........................................................... 1,709,092
---------------
Total Italy Common Stocks.......................................................................... 11,552,231
---------------
JAPAN--16.19%
AUTO MANAFACTURER--0.92%
46,000 Honda Motor Co. Ltd............................................................. 1,713,030
---------------
BANKS--0.46%
102,000,000 Sanwa International Finance..................................................... 850,696
---------------
BASIC INDUSTRIES--0.77%
59,000 Shin Etsu Chemical Company Ltd.(1).............................................. 1,439,334
---------------
CAPITAL GOODS--4.24%
65,000 Canon Inc....................................................................... 1,409,206
235,000 Hitachi Ltd..................................................................... 1,691,522
10,000 Mabuchi Motor Co.(1)............................................................ 698,246
8,000 Riso Kagaku Corp.(1)............................................................ 324,124
19,000 Rohm Company Ltd................................................................ 1,793,457
27,200 Sony Corp.(1)................................................................... 1,981,294
---------------
7,897,849
---------------
CHEMICALS--0.62%
57,000 Kao Corp........................................................................ 1,154,692
---------------
COMPUTERS--1.92%
95,000 Dai Nippon Printing(1).......................................................... 1,388,087
52 Ntt Mobile Communication*....................................................... 2,196,457
---------------
3,584,544
---------------
CONSUMER DURABLES--1.84%
18,000 Ito Yokado Company Ltd.......................................................... 1,134,261
47,000 Marui Company Ltd............................................................... 844,748
18,000 Secom Company Ltd............................................................... 1,441,490
---------------
3,420,499
---------------
CONSUMER GOODS--0.26%
10,000 Familymart Co................................................................... 489,634
---------------
ELECTRICAL EQUIPMENT--0.92%
130,000 Fujitsu(1)...................................................................... 1,706,737
---------------
ENGINEERING--0.50%
340,000 Kubota Corp..................................................................... 929,098
---------------
ENTERTAINMENT--0.62%
31,000 Fuji Photo Film Company Ltd..................................................... 1,146,416
---------------
FINANCE--0.28%
11,000 Promise Co. Ltd................................................................. 529,115
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
JAPAN--(CONCLUDED)
<TABLE>
<C> <S> <C>
FOREST PRODUCTS--0.45%
72,000 Toppan Printing Co.............................................................. $ 845,963
---------------
HEALTHCARE--1.58%
36,000 Taisho Pharmaceutical Co........................................................ 1,011,681
63,000 Yamanouchi Pharmaceutical Co.................................................... 1,927,934
---------------
2,939,615
---------------
INSURANCE--0.47%
170,000 Mitsui Marine & Fire............................................................ 879,272
---------------
TOBACCO--0.34%
65 Japan Tobacco Inc............................................................... 633,162
---------------
Total Japan Common Stocks.......................................................................... 30,159,656
---------------
NETHERLANDS--5.78%
CONSUMER GOODS--1.84%
17,323 Wolters Kluwer NV............................................................... 3,425,409
---------------
MEDIA--2.27%
22,024 Aegon NV........................................................................ 2,420,960
44,000 VNU NV.......................................................................... 1,800,611
---------------
4,221,571
---------------
RETAIL--1.67%
80,000 Royal Ahold NV.................................................................. 3,110,148
---------------
Total Netherlands Common Stocks.................................................................... 10,757,128
---------------
SINGAPORE--1.48%
BANKS--0.41%
205,000 Overseas Union Bank............................................................. 763,298
---------------
FINANCE--0.35%
95,000 Overseas Chinese Banking Corp................................................... 651,300
---------------
REAL ESTATE--0.31%
140,000 City Development Ltd............................................................ 570,922
---------------
TRANSPORTATION--0.41%
113,000 Singapore Airlines.............................................................. 768,026
---------------
Total Singapore Common Stocks...................................................................... 2,753,546
---------------
SOUTH AFRICA--0.24%
BANKS--0.24%
550,000 Sanlam*......................................................................... 453,048
---------------
SPAIN--4.36%
BANKS--2.38%
213,100 Banco Central Hispanormer....................................................... 2,461,173
76,620 Argentaria Corp. BC S.A......................................................... 1,964,926
---------------
4,426,099
---------------
</TABLE>
56
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONCLUDED)
SPAIN--(CONCLUDED)
<TABLE>
<C> <S> <C>
UTILITIES--1.98%
100,751 Endesa S.A...................................................................... $ 2,804,807
19,380 Telefonica de Espana S.A........................................................ 886,716
---------------
3,691,523
---------------
Total Spain Common Stocks.......................................................................... 8,117,622
---------------
SWEDEN--1.59%
HEALTHCARE--1.59%
137,000 Astra AB........................................................................ 2,963,617
---------------
SWITZERLAND--4.24%
CONSUMER DURABLES--3.08%
3,060 Novartis AG..................................................................... 5,742,500
---------------
FOOD PRODUCTS--1.16%
1,180 Nestle S.A...................................................................... 2,163,569
---------------
Total Switzerland Common Stocks.................................................................... 7,906,069
---------------
UNITED KINGDOM--19.94%
BANKS--2.29%
137,000 Lloyds TSB Group PLC............................................................ 1,785,651
76,000 National Westminster Bank PLC................................................... 1,398,318
60,831 Royal Bank of Scotland Group PLC................................................ 1,082,185
---------------
4,266,154
---------------
CONSUMER PRODUCTS--1.16%
111,000 Vodafone Group PLC.............................................................. 2,164,672
---------------
DIVERSIFIED INDUSTRIES--0.87%
131,000 General Electric Co. PLC........................................................ 1,219,143
109,071 Wassall PLC..................................................................... 394,896
---------------
1,614,039
---------------
ENGINEERING SERVICES--2.17%
158,000 GKN PLC......................................................................... 1,950,155
90,000 McKechnie PLC................................................................... 579,122
102,732 Smiths Industries PLC........................................................... 1,514,832
---------------
4,044,109
---------------
HOUSEHOLD PRODUCTS--0.78%
110,600 Reckitt & Colman PLC............................................................ 1,456,116
---------------
INSURANCE--0.78%
94,500 Allied Zurich*.................................................................. 1,458,765
---------------
LEISURE & ENTERTAINMENT--0.82%
410,000 Ladbroke Group PLC*............................................................. 1,528,280
---------------
MANUFACTURING--0.91%
171,000 Unilever PLC.................................................................... 1,695,524
---------------
MEDIA--0.19%
47,000 British Sky Broadcast........................................................... 359,668
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
UNITED KINGDOM--(CONCLUDED)
<TABLE>
<C> <S> <C>
OIL & GAS--2.05%
127,000 British Petroleum............................................................... $ 1,730,553
348,000 LASMO PLC....................................................................... 607,066
297,000 Shell Transportation & Trading Co............................................... 1,485,870
---------------
3,823,489
---------------
PHARMACEUTICALS--3.30%
80,000 Glaxo Wellcome PLC.............................................................. 2,694,999
140,000 Smithkline Beecham.............................................................. 1,886,960
34,000 Zeneca Group.................................................................... 1,561,112
---------------
6,143,071
---------------
REAL ESTATE--0.84%
130,000 Land Securities PLC............................................................. 1,567,118
---------------
RETAIL--0.46%
143,000 Marks & Spencer PLC............................................................. 849,560
---------------
TELECOMMUNICATIONS--1.24%
159,000 Cable & Wireless PLC............................................................ 2,305,281
---------------
TOBACCO--0.46%
81,500 British America Tobacco......................................................... 844,314
---------------
TRANSPORTATION--0.39%
318,750 NFC PLC......................................................................... 731,771
---------------
UTILITIES--1.23%
215,000 Scottish Power PLC.............................................................. 2,282,175
---------------
Total United Kingdom Common Stocks................................................................. 37,134,106
---------------
UNITED STATES--0.98%
ELECTRONICS--0.29%
36 Synnex Technology International Corp.*.......................................... 531,000
---------------
FOOD, BEVERAGE & TOBACCO--0.69%
55 ITC Ltd......................................................................... 1,293,655
---------------
Total United States Common Stocks.................................................................. 1,824,655
---------------
Total Common Stocks (cost--$150,393,499)........................................................... 177,035,774
---------------
<CAPTION>
NUMBER OF
WARRANTS
- ---------------
<C> <S> <C>
WARRANTS--0.00%
PHILIPPINES--0.00%
REAL ESTATE--0.00%
780,000 Belle Corp., warrants expiring 12/31/00* (cost--$0)............................. 1,722
---------------
</TABLE>
57
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EQUITY INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- ---------- ------------ ------- ------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--5.18%
$ 9,653 Repurchase Agreement dated 01/29/99 with State Street
Bank & Trust Company, collateralized by $9,536,987 U.S.
Treasury Notes, 5.375% due 01/31/00 (value--$9,846,939);
proceeds: $9,656,218 (cost--$9,653,000).............................. 02/01/99 4.000% $ 9,653,000
------------
Total Investments (cost--$160,046,499)--100.24%.................................... 186,690,496
Liabilities in excess of other assets--(0.24)%..................................... (446,152)
------------
Net Assets--100.00%................................................................ $186,244,344
------------
------------
</TABLE>
- -----------------
* Non-income producing security
(1) Security, or a portion thereof, was on loan at January 31, 1999.
ADR American Depository Receipt
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACTS
CONTRACT TO IN MATURITY UNREALIZED
DELIVER EXCHANGE FOR DATE APPRECIATION
------------- -------------- -------- --------------
<S> <C> <C> <C> <C>
Japanese Yen...................................... 858,792,057 US$ 7,753,000 04/06/99 $285,085
--------------
--------------
</TABLE>
See accompanying notes to financial statements
58
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--87.92%
ARGENTINA--3.41%
ALCOHOLIC BEVERAGES--0.25%
20,300 Quilmes Industrial Quinsa S.A. ADR......................................... $ 162,400
---------------
BANKS/RETAIL--0.08%
7,100 Bco Hipotecario............................................................ 53,270
---------------
DIVERSIFIED INDUSTRIALS--0.35%
55,847 Perez Companc S.A. Class B................................................. 227,663
---------------
OIL & GAS--0.12%
50,000 Gas Natural Ban Sa Class B................................................. 77,029
OIL EXPLORATION & PRODUCTION--1.60%
56,780 Astra Cia Argentina de Petroleo S.A. ARS 10................................ 69,298
30,900 YPF Sociedad Anonima Series D ADR.......................................... 984,938
---------------
1,054,236
---------------
PROPERTY--0.09%
5,872 Cresud S.A. C.I.F.Y.A. ADR................................................. 62,390
---------------
RETAILERS, GENERAL--0.08%
7,700 Importadora & Exportadora de la Patagonia-Series B......................... 52,380
---------------
TELECOMMUNICATIONS--0.84%
29,300 Telecom Argentina Stet-Fran Tel S.A. Class B............................... 140,400
94,100 Telefonica de Argentina S.A................................................ 233,457
7,200 Telefonica de Argentina S.A. Class B ADR................................... 177,750
---------------
551,607
---------------
Total Argentina Common Stocks................................................................. 2,240,975
---------------
BOTSWANA--0.30%
BREWERIES, PUBS, & RESTAURANTS--0.30%
172,000 Sechaba Breweries Ltd. Ord................................................. 198,254
---------------
BRAZIL--1.11%
ELECTRICITY--0.74%
23,770,000 Centrais Electricas Brasilieras S.A. (Electrobras)......................... 293,457
3,908,000 Companhia Paulista de Forca e Luz Com NPV.................................. 192,987
---------------
486,444
---------------
MEDIA--0.17%
8,000 Aracruz Celulose S.A. ADR.................................................. 114,000
---------------
TELECOMMUNICATIONS--0.20%
11,400 Embratel Participacoes S.A. ADR............................................ 130,388
---------------
Total Brazil Common Stocks.................................................................... 730,832
---------------
CHILE--2.69%
BANKS/RETAIL--0.16%
7,600 Banco Santander Chile Series A ADR......................................... 106,400
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
CHILE--(CONCLUDED)
<TABLE>
<C> <S> <C>
BREWERIES, PUBS, & RESTAURANTS--0.37%
10,300 Compania Cervecerias Unidas S.A. ADS....................................... $ 185,400
5,300 Embotelladora Andina Sa ADR................................................ 59,294
---------------
244,694
---------------
DIVERSIFIED INDUSTRIALS--0.17%
17,000 Quinenco S.A. ADR.......................................................... 110,500
---------------
ELECTRICITY--0.86%
21,800 Chilectra ADR***........................................................... 455,075
4,000 Enersis S.A. ADR........................................................... 108,500
---------------
563,575
---------------
EXTRACTIVE INDUSTRIES--0.33%
6,600 Sociedad Quimica Y Minera de Chile S.A. Series B ADR....................... 216,975
---------------
RETAILERS, FOOD--0.28%
16,900 Distribucion y Servicio D&S ADS............................................ 181,675
---------------
TELECOMMUNICATIONS--0.52%
16,850 Compania de Telecomunicaciones de Chile S.A. ADR........................... 343,318
---------------
Total Chile Common Stocks..................................................................... 1,767,137
---------------
CHINA--0.31%
ELECTRICITY & GAS--0.25%
15,800 Huaneng Power International, Inc. ADR*..................................... 167,875
---------------
LAND TRANSPORTATION--0.06%
266,000 Qingling Motors Company (Class H).......................................... 37,074
---------------
Total China Common Stocks..................................................................... 204,949
---------------
CROATIA--0.52%
HEALTH/PERSONAL CARE--0.52%
18,550 Pliva D.D. GDR*............................................................ 344,103
---------------
CZECH REPUBLIC--0.87%
UTILITIES--0.87%
40,050 SPT Telecom A.S. (Reg) S*.................................................. 574,242
---------------
EGYPT--0.54%
OTHER FINANCIAL--0.12%
6,160 Efg Hermes Holding S A E GDS............................................... 80,080
---------------
RETAILERS, GENERAL--0.42%
11,360 Oriental Weavers C......................................................... 276,282
---------------
Total Egypt Common Stocks..................................................................... 356,362
---------------
GREECE--6.99%
BANKS--2.57%
7,261 Alpha Credit Bank.......................................................... 848,855
3,040 National Bank of Greece.................................................... 840,151
---------------
1,689,006
---------------
</TABLE>
59
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
GREECE--(CONCLUDED)
<TABLE>
<C> <S> <C>
BEVERAGE/TOBACCO MANUFACTURING--1.52%
27,330 Hellenic Bottling Company S.A.............................................. $ 1,002,234
---------------
FOOD/GROCERY PRODUCTS--0.56%
11,600 Chipita.................................................................... 370,110
---------------
RETAIL TRADE--0.20%
3,890 Panafon Hellenic Telecommunications S.A.................................... 133,225
---------------
UTILITIES--2.14%
46,606 Hellenic Telecom Organization.............................................. 1,404,447
---------------
Total Greece Common Stocks.................................................................... 4,599,022
---------------
HONG KONG--1.60%
COMMERCE/INDUSTRIAL--0.31%
790,000 Beijing Datang Power Generation Company Ltd. 'H' Share..................... 203,903
---------------
COMMUNICATIONS--0.43%
159,000 China Telecom Hong Kong Ltd.*.............................................. 284,192
---------------
CONSTRUCTION--0.21%
75,000 Cheung Kong Infrastucture Holdings......................................... 138,892
---------------
FOODS--0.18%
158,000 Ng Fung Hong Ltd........................................................... 119,283
---------------
REAL ESTATE--0.26%
444,000 China Resources Beijing Ltd................................................ 77,927
75,000 China Resources Enterprises Ltd............................................ 90,982
---------------
168,909
---------------
SHIPPING--0.14%
270,000 Cosco Pacific Ltd. Ord..................................................... 91,466
---------------
TRANSPORTATION EQUIPMENT--0.07%
307,000 Zhejiang Expressway Co. Ltd. H Shares...................................... 45,166
---------------
Total Hong Kong Common Stocks................................................................. 1,051,811
---------------
HUNGARY--2.75%
BANKS--0.80%
9,770 OTP Bank GDR............................................................... 527,580
---------------
HEALTH/PERSONAL CARE--0.17%
2,500 Richter Gedeon Vegyeszdi GDS............................................... 114,375
---------------
OIL--0.87%
20,900 Magyar Olaj-Es Gazipare Reszvnytaras Ag. Series 'A'........................ 571,615
---------------
UTILITIES--0.91%
19,630 Matav RT ADS Series 'B'.................................................... 598,715
---------------
Total Hungary Common Stocks................................................................... 1,812,285
---------------
INDIA--8.79%
BANKS/RETAIL--0.49%
82,700 State Bank of India........................................................ 322,703
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
INDIA--(CONCLUDED)
<TABLE>
<C> <S> <C>
BUILDING MATERIALS & MERCHANTS--0.02%
500 Associated Cement Co....................................................... $ 12,838
---------------
ELECTRICITY--0.14%
26,000 Bses....................................................................... 93,010
---------------
ELECTRICITY & GAS--0.32%
28,600 BSES Ltd.*................................................................. 102,311
52,000 Tata Power Company......................................................... 104,698
---------------
207,009
---------------
ELECTRONIC & ELECTRICAL EQUIPMENT--0.66%
72,000 Bharat Heavy Electricals Light............................................. 435,999
---------------
ENGINEERING, VEHICLES--0.16%
9,000 Bajaj Auto Ltd............................................................. 105,907
---------------
HOUSEHOLD GOODS & TEXTILES--2.55%
23,600 Hindustan Lever Ltd........................................................ 1,077,107
192,000 Reliance Industries Ltd.................................................... 599,019
---------------
1,676,126
---------------
OIL, INTEGRATED--1.25%
53,000 Bharat Petrol Corporation Ltd.............................................. 260,697
21,000 Castrol India Ltd.......................................................... 404,036
30,000 Hindustan Petroleum Corp. Ltd.............................................. 159,496
---------------
824,229
---------------
PHARMACEUTICALS--0.41%
36,000 Ranbaxy Laboratories Ltd................................................... 268,581
---------------
SUPPORT SERVICES--0.23%
3,000 Niit....................................................................... 149,471
---------------
TELECOMMUNICATIONS--1.26%
132,000 Mahanagar Tele Nigam....................................................... 548,318
30,000 Mahanagar Telephone Nigam Ltd.............................................. 123,064
9,000 Videsh Sanchar Nigam Ltd................................................... 158,861
---------------
830,243
---------------
TOBACCO--1.30%
45,500 ITC Ltd.................................................................... 857,743
---------------
TRANSPORTATION--0.00%
300 Great Eastern Shipping Co.................................................. 150
---------------
Total India Common Stocks..................................................................... 5,784,009
---------------
INDONESIA--1.65%
FOODS--0.89%
133,000 H M Sampoerna.............................................................. 85,420
917,000 P.T. Indofoods Sukses Makmur............................................... 501,121
---------------
586,541
---------------
MISCELLANEOUS MANUFACTURING--0.20%
106,000 P.T. Gudang Garam.......................................................... 128,992
---------------
OILS--0.18%
13,300 P.T. Gulf Indonesia Resources Ltd.......................................... 119,700
---------------
</TABLE>
60
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
INDONESIA--(CONCLUDED)
<TABLE>
<C> <S> <C>
TELECOMMUNICATIONS--0.38%
98,000 P.T. Indosat............................................................... $ 123,121
347,000 P.T. Telekomunikasi Indonesia.............................................. 129,025
---------------
252,146
---------------
Total Indonesia Common Stocks................................................................. 1,087,379
---------------
ISRAEL--5.43%
BANKS--1.03%
171,500 Bank Hapoalim B.M.......................................................... 297,588
267,400 BkLeumiLe-Israel B.M....................................................... 377,974
---------------
675,562
---------------
ELECTRONIC & ELECTRICAL EQUIPMENT--0.49%
14,000 Formula Systems ADR........................................................ 322,000
---------------
PHARMACEUTICALS--0.77%
11,720 Teva Pharmaceutical Industries Ltd., ADR................................... 509,087
---------------
RETAIL TRADE--0.53%
147,340 Super-sol Ltd.............................................................. 348,668
---------------
RETAILERS, FOOD--0.35%
18,134 Blue Square-Israel Ltd ADS................................................. 231,209
---------------
TELECOMMUNICATIONS--1.59%
24,070 ECI Telecommunications Ltd................................................. 1,044,036
---------------
UTILITIES--0.67%
138,550 BEZEQ-Israeli Telec........................................................ 442,671
---------------
Total Israel Common Stocks.................................................................... 3,573,233
---------------
KOREA--13.23%
CHEMICALS--1.14%
29,000 L.G. Chemicals............................................................. 340,596
79,492 Samsung Heavy Industries................................................... 411,329
---------------
751,925
---------------
ELECTRICAL APPLIANCES--5.54%
42,786 L.G. Electronics........................................................... 524,356
3,565 L.G. Information and Communications Ltd.................................... 123,334
12,016 Samsung Display Devices Co................................................. 552,225
31,918 Samsung Electronics Co..................................................... 2,442,066
---------------
3,641,981
---------------
ELECTRICITY & GAS--2.08%
49,720 Korea Electric Power Corp.................................................. 1,368,887
---------------
FINANCIAL--1.90%
97,506 Kookmin Bank............................................................... 726,938
87,500 Shinhan Bank............................................................... 525,000
---------------
1,251,938
---------------
IRON & STEEL--1.11%
9,450 Pohang Iron & Steel Co. Ltd................................................ 578,903
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
KOREA--(CONCLUDED)
IRON & STEEL--(CONCLUDED)
<TABLE>
<C> <S> <C>
8,000 Pohang Iron & Steel Ltd. ADR............................................... $ 150,000
---------------
728,903
---------------
MISCELLANEOUS MANUFACTURING--0.18%
7,000 Hyundai Motor Company...................................................... 119,745
---------------
OIL--0.21%
10,000 SK Corporation............................................................. 140,425
---------------
SECURITIES--0.35%
17,000 Daewoo Securities.......................................................... 230,766
---------------
TELECOMMUNICATIONS--0.72%
626 SK Telecom Company Ltd..................................................... 472,350
---------------
Total Korea Common Stocks..................................................................... 8,706,920
---------------
MALAYSIA--0.28%
ELECTRICITY & GAS--0.15%
79,000 Tenaga Nasional Berhad..................................................... 101,141
---------------
SERVICES--0.13%
30,000 Resorts World Berhad....................................................... 31,776
40,000 Tanjong PLC................................................................ 50,105
---------------
81,881
---------------
Total Malaysia Common Stocks.................................................................. 183,022
---------------
MAURITIUS--0.32%
OTHER FINANCIAL--0.32%
301,000 State Bank of Mauritius.................................................... 209,549
---------------
MEXICO--10.51%
ALCOHOLIC BEVERAGES--0.10%
29,400 Grupo Modelo Sa De CV...................................................... 65,639
---------------
BANKS--0.21%
122,500 Grupo Financiero Banamex Accivl Series B................................... 137,413
---------------
BREWERIES, PUBS, & RESTAURANTS--0.83%
246,000 Fomento Economico Mexica S.A. de C.V. Series B and 4 Units Series D*....... 545,589
---------------
BUILDING MATERIALS & MERCHANTS--0.96%
255,382 Cemex S.A. NPV (CPO)....................................................... 629,330
---------------
CONSTRUCTION--0.74%
64,000 Consorico ARA S.A. de C.V.................................................. 153,297
137,900 Grupo Industrial Saltillo, S.A. de C.V..................................... 333,026
---------------
486,323
---------------
DIVERSIFIED INDUSTRIALS--0.54%
127,600 Grupo Carso, S.A. de C.V. Series A*........................................ 358,462
---------------
EXTRACTIVE INDUSTRIES--0.22%
46,900......... Industrias Penoles......................................................... 143,312
---------------
</TABLE>
61
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
MEXICO--(CONCLUDED)
<TABLE>
<C> <S> <C>
FOOD PRODUCERS--0.66%
203,204 Grupo Industrial Bimbo S.A. de C.V. Series 'A' NPV......................... $ 436,653
---------------
MEDIA--0.60%
212,700 Controladora Commercial Mexicana........................................... 127,473
10,400 Grupo Televisa, S.A. de C.V. GDS........................................... 266,500
---------------
393,973
---------------
METALS--0.22%
20,800 Tubos de Acero de Mexico S.A. de C.V. ADR*................................. 143,000
---------------
PAPER, PACKAGING & PRINTING--0.72%
164,750 Kimberly-Clark de Mexico S.A. de C.V....................................... 472,570
---------------
RETAILERS, GENERAL--0.83%
493,800 Cifra S.A. de C.V. Series C*............................................... 550,019
---------------
TELECOMMUNICATIONS--3.88%
49,900 Telefonos de Mexico, S.A. de C.V. ADR (1).................................. 2,551,138
---------------
Total Mexico Common Stocks.................................................................... 6,913,421
---------------
PAKISTAN--0.31%
CHEMICALS--0.07%
14,950 Engro Chemicals Pakistan Ord............................................... 25,786
25,000 Fauji Fertilizer Ltd....................................................... 20,139
---------------
45,925
---------------
ELECTRICITY--0.08%
232,000 Hub Power Co. Ltd.......................................................... 54,794
---------------
TELECOMMUNICATIONS--0.16%
292,000 Pakistan Telecommunications Corp. Ord. A................................... 103,591
---------------
Total Pakistan Common Stocks.................................................................. 204,310
---------------
PERU--1.19%
BANKS/RETAIL--0.17%
230,000 Banco Continental.......................................................... 112,362
---------------
ELECTRICITY--0.19%
200,000 Luz Del Sur S.A. Class B................................................... 128,091
---------------
EXTRACTIVE INDUSTRIES--0.29%
14,700 Compania De Minas Buenaventura S.A. ADS.................................... 187,425
---------------
TELECOMMUNICATIONS--0.54%
30,000 Telefonica Del Peru ADS.................................................... 356,250
---------------
Total Peru Common Stocks...................................................................... 784,128
---------------
PHILIPPINES--2.07%
BANKS--0.11%
10,000 Metropolitan Bank & Trust Company (1)...................................... 74,026
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
PHILIPPINES--(CONCLUDED)
<TABLE>
<C> <S> <C>
ELECTRICITY & GAS--0.61%
132,520 Manila Electric Co. Class B (1)............................................ $ 399,281
---------------
FOODS--0.34%
305,000 La Tondena Distill......................................................... 225,779
---------------
REAL ESTATE--0.63%
703,000 Ayala Corp (1)............................................................. 223,682
634,820 Ayala Land Inc. Class B.................................................... 193,743
---------------
417,425
---------------
TELECOMMUNICATIONS--0.38%
10,580 Philippine Long Distance Telephone Co. (1)................................. 247,325
---------------
Total Philippines Common Stocks............................................................... 1,363,836
---------------
POLAND--2.34%
BANKS--0.50%
4,820 Bank Przemslawa-Handlowy S.A............................................... 327,770
---------------
DIVERSIFIED HOLDINGS COMPANIES--0.93%
48,900 Elektrim................................................................... 613,083
---------------
ELECTRICAL EQUIPMENT--0.14%
56,601 Bydgoska Fabryka Kabli S.A................................................. 93,332
---------------
FINANCIAL INSTITUTIONS/SERVICES--0.14%
7,800 Bank Handlowy W Warszawie Sa............................................... 92,196
---------------
UTILITIES--0.63%
55,950 Telekomunika Polska S.A. GDR
Regulation S............................................................. 414,030
---------------
Total Poland Common Stocks.................................................................... 1,540,411
---------------
PORTUGAL--2.23%
BANKS--0.30%
6,680 Banco Espirito Santo e Comercial de Lisboa................................. 199,633
---------------
FINANCIAL INSTITUTIONS/SERVICES--0.21%
4,150 Compania de Seguros Mundial Confianca...................................... 141,054
---------------
FORESTRY/PAPER PRODUCTS--0.34%
12,760 Semapa-Sociedade de Investimento e Gestao SGPS S.A......................... 220,620
---------------
RETAIL TRADE--0.55%
6,660 Estabelecimentos Jeronimo Martins & Filho.................................. 358,475
---------------
UTILITIES--0.83%
5,070 Portugal Telecom S.A....................................................... 255,315
1,450 Telecel-Comunicacaoes Pessoais Ord......................................... 290,758
---------------
546,073
---------------
Total Portugal Common Stocks.................................................................. 1,465,855
---------------
</TABLE>
62
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
<TABLE>
<C> <S> <C>
RUSSIA--0.73%
MACHINERY/ENGINE SERVICES--0.14%
32,940 Unified Energy System of Russia GDR........................................ $ 93,879
---------------
OIL--0.59%
10,490 Lukoil Holding ADR (1)..................................................... 156,039
68,090 Surgutneftegaz ADR......................................................... 229,804
---------------
385,843
---------------
Total Russia Common Stocks.................................................................... 479,722
---------------
SOUTH AFRICA--7.83%
BANKS/RETAIL--0.40%
53,400 Amalgamated Bank of South Africa Group Ltd................................. 261,722
---------------
BREWERIES, PUBS, & RESTAURANTS--0.69%
28,373 South African Breweries Ltd................................................ 458,081
---------------
DIVERSIFIED INDUSTRIALS--1.92%
11,125 Anglo American Industrial Corp............................................. 169,532
123,332 Barlow Ltd................................................................. 487,639
234,275 Malbak Ltd................................................................. 111,927
66,700 Rembrandt Group Ltd........................................................ 495,580
---------------
1,264,678
---------------
ELECTRICITY--0.18%
89,200 Energy Africa Ltd.......................................................... 117,562
---------------
EXTRACTIVE INDUSTRIES--0.73%
16,900 Anglo American Corporation of South Africa Ltd............................. 478,880
---------------
FINANCIAL SERVICES--0.74%
403,975 FirstRand Ltd.............................................................. 484,504
---------------
INSURANCE--0.32%
254,365 Sanlam Ltd................................................................. 209,526
---------------
OIL EXPLORATION & PRODUCTION--0.46%
86,760 Sasol Ltd.................................................................. 305,875
---------------
OTHER FINANCIAL--0.31%
24,600 Fedsure Holdings Ltd....................................................... 203,852
---------------
PAPER, PACKAGING & PRINTING--0.90%
143,800 Nampak Ltd................................................................. 206,343
104,700 Sappi...................................................................... 386,372
---------------
592,715
---------------
PHARMACEUTICALS--0.35%
48,567 South African Druggist Ltd................................................. 228,033
---------------
RETAILERS, GENERAL--0.83%
73,815 Ellerine Holdings Ltd...................................................... 176,937
59,619 LA Retail Stores Ltd....................................................... 67,771
392,489 Metro Cash And Carry....................................................... 300,671
---------------
545,379
---------------
Total South Africa Common Stocks.............................................................. 5,150,807
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
TAIWAN--6.17%
BANKS--0.20%
376,000 Bank Sinopac............................................................... $ 132,062
---------------
CHEMICALS--0.48%
371,000 Nan Ya Plastic............................................................. 314,403
---------------
COMMERCE/INDUSTRIAL--0.37%
29,000 Asustek Computer Inc....................................................... 242,302
---------------
ELECTRICAL APPLIANCES--2.98%
108,000 Acer Inc................................................................... 123,992
6,125 Acer Inc. GDR.............................................................. 33,687
116,000 D-Link Ord................................................................. 215,380
49,000 Phoenixtec Power Company................................................... 68,386
275,000 Siliconware Precision Industries Co........................................ 514,854
6,408 Siliconware Precision Industries Co. GDR*.................................. 76,896
355,000 Taiwan Semiconductor Manufacturing Co...................................... 928,284
---------------
1,961,479
---------------
INSURANCE--0.40%
85,000 Cathay Life Ins............................................................ 263,036
---------------
IRON & STEEL--0.34%
429,000 China Steel Corp........................................................... 227,012
---------------
MISCELLANEOUS FINANCIAL--1.08%
126,000 ROC Taiwan Fund*........................................................... 708,750
---------------
MISCELLANEOUS MANUFACTURING--0.04%
3,870 Teco Electric & Machinery Ltd. GDR......................................... 28,058
---------------
TEXTILES--0.28%
101,000 Nien Hsing Textile Company Ltd............................................. 184,404
---------------
Total Taiwan Common Stocks.................................................................... 4,061,506
---------------
THAILAND--2.02%
BANKS--0.04%
13,000 Thai Farmers Bank Public Company Ltd....................................... 24,695
---------------
COMMUNICATIONS--0.50%
46,000 TelecomAsia................................................................ 21,533
355,000 TelecomAsia Corporation Public Company Ltd. (1)............................ 168,589
63,000 Total Access Communication Public Company Ltd. (1)......................... 139,230
---------------
329,352
---------------
CONSTRUCTION--0.21%
6,000 Siam Cement Co. (1)........................................................ 136,771
---------------
ELECTRICITY & GAS--0.43%
117,500 Electricity Generating Public Company Ltd. (1)............................. 283,786
---------------
MINING--0.42%
37,200 PTT Exploration & Production Public Company Ltd. .......................... 280,315
---------------
</TABLE>
63
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONCLUDED)
THAILAND--(CONCLUDED)
<TABLE>
<C> <S> <C>
TELECOMMUNICATIONS--0.42%
36,600 Advanced Info Services Public Company Ltd.................................. $ 274,127
---------------
Total Thailand Common Stocks.................................................................. 1,329,046
---------------
TURKEY--1.63%
BANKS--0.51%
6,971,750 Akbank T.A.S............................................................... 129,552
17,544,880 Yapi Ve Kredi Bankasi A.S.................................................. 205,080
---------------
334,632
---------------
ELECTRICAL EQUIPMENT--0.13%
1,160,010 Vestel Electronic Sanayi ve Ticaret........................................ 85,180
---------------
FINANCIAL INSTITUTIONS/SERVICES--0.16%
7,429,825 Haci Omer Sabanci.......................................................... 108,001
---------------
MEDIA--0.10%
16,078,260 Dogan Yayin Holdings....................................................... 65,055
---------------
RETAIL TRADE--0.58%
384,404 Migros Turk T.A.S.......................................................... 380,199
---------------
UTILITIES--0.15%
6,881,196 Northern Elektrik Telekomvaskayson A.S..................................... 102,089
---------------
Total Turkey Common Stocks.................................................................... 1,075,156
---------------
ZIMBABWE--0.10%
EXTRACTIVE INDUSTRIES--0.04%
64,300 Meikles Africa Ltd......................................................... 25,720
---------------
OTHER FINANCIAL--0.06%
192,000 NMBZ Holdings Ltd.......................................................... 38,400
---------------
Total Zimbabwe Common Stocks.................................................................. 64,120
---------------
Total Common Stocks (cost--$61,528,510)....................................................... 57,856,402
---------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
PREFERRED STOCKS--5.59%
BRAZIL--5.59%
BANKS/RETAIL--1.72%
31,120,000 Banco Bradesco S.A......................................................... $ 104,502
260,000 Banco Itau S.A............................................................. 79,605
63,800 Companhia Vale Rio Doce 'A'................................................ 945,185
---------------
1,129,292
---------------
BREWERIES, PUBS, & RESTAURANTS--0.36%
672,000 Companhia Cervejaria Brahma................................................ 233,956
---------------
BUILDING MATERIALS & MERCHANTS--0.15%
1,380,000 Companhia Cimento Portland Itau (CIA)...................................... 100,859
---------------
ELECTRICITY--0.55%
18,240,000 Centrais Electricas Brasileiras S.A. (Electrobras) 'B' Shares.............. 235,994
19,300 Companhia Paranaense de Energia Copel ADR 'B' Shares....................... 77,200
2,910,000 Eletropaulo Electricidade Sao Paulo........................................ 51,432
---------------
364,626
---------------
ENGINEERING--0.18%
16,800,000 Gerdau Sideruga S.A........................................................ 121,126
---------------
OIL EXPLORATION & PRODUCTION--0.38%
3,673,000 Petrol Brasileiro--Petrobras............................................... 246,680
---------------
SUPPORT SERVICES--0.30%
15,541,879 Companhia Energetica de Minas Gerais....................................... 198,782
---------------
TELECOMMUNICATIONS--1.95%
48,850,000 Tele Centro Sul Pa......................................................... 332,904
7,436,423 Telecomunicacoes de Sao Paulo S.A. (Telesp)................................ 661,015
1,610,000 Telecomunicacoes do Parana S.A. (Telepar).................................. 161,398
4,671,423 Telesp Celular S.A......................................................... 124,548
---------------
1,279,865
---------------
Total Preferred Stocks (cost--$6,713,929)..................................................... 3,675,186
---------------
<CAPTION>
NUMBER OF
RIGHTS
- ---------------
<C> <S> <C>
RIGHTS--0.03%
KOREA--0.03%
ELECTRICAL APPLIANCES--0.03%
2,131 Samsung Electric, rights expiring 02/10/99 (cost--$0)...................... 21,093
---------------
</TABLE>
64
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- ---------- ------------ ------- ------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--5.72%
$ 3,766 Repurchase Agreement dated 01/29/99 with State Street
Bank & Trust Co., collateralized by $3,720,739 U.S.
Treasury Notes, 5.375% due 01/31/00 (value--$3,841,663);
proceeds: $3,767,255 (cost--$3,766,000)......................... 02/01/99 4.000% $ 3,766,000
------------
Total Investments (cost--$72,008,439)--99.26%................................. 65,318,681
Other assets in excess of liabilities--0.74%.................................. 488,224
------------
Net Assets--100.00%........................................................... $ 65,806,905
------------
------------
</TABLE>
- -----------------
* Non-income producing security
*** Security exempt from registration under 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
ADR American Depositary Receipt
ADS American Depositary Shares
GDR Global Depositary Receipt
GDS Global Depositary Shares
(1) Security, or a portion thereof, was on loan at January 31, 1999.
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT TO IN MATURITY APPRECIATION
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
------------- -------------- --------- -------------
<S> <C> <C> <C> <C>
Brazilian Real......................................................... 461,820 US$ 358,000 02/05/99 $ 131,234
Brazilian Real......................................................... 1,172,868 US$ 860,000 06/16/99 297,413
Brazilian Real......................................................... 602,000 US$ 430,000 06/22/99 141,132
Hong Kong Dollar....................................................... 6,200,000 US$ 773,067 02/22/99 (26,602)
Hong Kong Dollar....................................................... 5,966,000 US$ 747,553 06/21/00 (3,224)
-------------
$ 539,953
-------------
-------------
</TABLE>
See accompanying notes to financial statements
65
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
STATEMENTS OF ASSETS AND LIABILITIES JANUARY 31,1999(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--$31,479,370; $257,944,118;
$119,108,798 $181,134,135;
$55,868,696; $100,153,398;
$285,368,355; $231,165,862;
$190,941,373; $166,956,665;
$160,046,499; $72,008,439,
respectively)......................... $31,479,370 $260,034,775 $120,675,326 $183,029,930
Investments of cash collateral received
for securities loaned, at value
(cost--$0; $0; $21,422,625; $0; $0;
$10,887,200; $22,364,900; $8,637,400;
$4,783,800; $14,050,100; $9,772,440;
$3,636,330; respectively)............. -- -- 21,422,625 --
Cash (including cash denominated in
foreign currencies)................... -- 87,530 -- 122,385
Receivable for investments sold......... -- 71,370,546 3,143,204 1,874,024
Receivable for shares of beneficial
interest sold......................... 317,158 514,313 253,737 628,974
Unrealized appreciation of forward
foreign currency contracts............ -- -- -- --
Dividends and interest receivable....... 123,439 1,062,214 1,512,358 1,851,571
Receivable from investment adviser...... 7,097 8,393 -- --
Receivable for variation margin......... -- -- -- 13,511
Deferred organizational expenses........ 29,469 29,469 29,469 29,469
Other assets............................ 66,837 25,526 40,317 17,871
------------ ------------ ------------ ------------
Total assets............................ 32,023,370 333,132,766 147,077,036 187,567,735
------------ ------------ ------------ ------------
LIABILITIES
Payable for investments purchased....... 499,850 146,519,016 3,703,207 7,637,048
Payable for shares of beneficial
interest repurchased.................. 196,799 597,869 632,733 252,918
Payable for cash collateral for
securities loaned..................... -- -- 21,422,625 --
Unrealized depreciation on forward
foreign currency contracts............ -- -- -- --
Payable to the investment adviser....... -- 109,090 60,070 97,233
Payable to the securities lending
agent................................. -- 100 5,494 --
Dividends payable to shareholders....... 123,733 -- -- --
Outstanding options written, at value
(premium received--$38,214)........... -- -- -- 3,453
Accrued expenses and other
liabilities........................... 129,739 77,930 156,637 62,247
------------ ------------ ------------ ------------
Total liabilities....................... 950,121 147,304,005 25,980,766 8,052,899
------------ ------------ ------------ ------------
NET ASSETS
Beneficial interest shares of $0.001 par
value outstanding--31,073,875;
14,748,184; 9,719,924; 13,626,307;
4,407,237; 8,235,307; 16,436,427;
13,725,799; 12,932,340; 13,194,537;
11,573,679; 7,246,484; respectively
(unlimited amount authorized)......... 31,073,875 182,773,251 118,660,069 177,107,381
Accumulated undistributed net investment
income (loss)......................... -- 486,682 492,198 718,487
Accumulated net realized gains (losses)
from investments, other assets,
liabilities, options and forward
contracts denominated in foreign
currencies............................ (626) 478,171 377,475 (164,159)
Net unrealized appreciation/depreciation
of investments, other assets,
liabilities, options and forward
contracts denominated in foreign
currencies............................ -- 2,090,657 1,566,528 1,853,127
------------ ------------ ------------ ------------
Net assets.............................. $31,073,249 $185,828,761 $121,096,270 $179,514,836
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Net Asset Value, offering and redemption
price per share....................... $1.00 $12.60 $12.46 $13.17
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
66
<PAGE>
<TABLE>
<CAPTION>
PACE
PACE PACE PACE PACE SMALL/MEDIUM
MUNICIPAL GLOBAL FIXED LARGE COMPANY LARGE COMPANY COMPANY
FIXED INCOME INCOME VALUE EQUITY GROWTH EQUITY VALUE EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
------------ ------------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost--$31,479,370; $257,944,118;
$119,108,798 $181,134,135;
$55,868,696; $100,153,398;
$285,368,355; $231,165,862;
$190,941,373; $166,956,665;
$160,046,499; $72,008,439,
respectively)......................... $57,692,972 $103,366,107 $326,948,910 $351,767,859 $188,207,604
Investments of cash collateral received
for securities loaned, at value
(cost--$0; $0; $21,422,625; $0; $0;
$10,887,200; $22,364,900; $8,637,400;
$4,783,800; $14,050,100; $9,772,440;
$3,636,330; respectively)............. -- 10,887,200 22,364,900 8,637,400 4,783,800
Cash (including cash denominated in
foreign currencies)................... -- 725,538 365 -- 424
Receivable for investments sold......... -- 1,711,209 519,726 337,477 23,846
Receivable for shares of beneficial
interest sold......................... 151,629 273,383 946,106 1,120,413 459,397
Unrealized appreciation of forward
foreign currency contracts............ -- 703,909 -- -- --
Dividends and interest receivable....... 830,484 1,986,037 257,654 131,687 124,696
Receivable from investment adviser...... -- 17,241 -- -- --
Receivable for variation margin......... -- -- 23,700 -- --
Deferred organizational expenses........ 29,469 29,469 29,469 29,469 29,469
Other assets............................ 17,913 31,598 24,486 64,306 34,721
------------ ------------ ------------- ------------- -------------
Total assets............................ 58,722,467 119,731,691 351,115,316 362,088,611 193,663,957
------------ ------------ ------------- ------------- -------------
LIABILITIES
Payable for investments purchased....... 927,458 1,004,700 745,933 690,882 --
Payable for shares of beneficial
interest repurchased.................. 910,632 223,439 868,859 863,580 696,305
Payable for cash collateral for
securities loaned..................... -- 10,887,200 22,364,900 8,637,400 4,783,800
Unrealized depreciation on forward
foreign currency contracts............ -- 930,260 -- -- --
Payable to the investment adviser....... 28,125 72,750 219,794 226,717 128,778
Payable to the securities lending
agent................................. -- 4,025 770 1,697 1,346
Dividends payable to shareholders....... -- -- -- -- --
Outstanding options written, at value
(premium received--$38,214)........... -- -- -- -- --
Accrued expenses and other
liabilities........................... 78,726 47,993 142,258 89,099 124,680
------------ ------------ ------------- ------------- -------------
Total liabilities....................... 1,944,941 13,170,367 24,342,514 10,509,375 5,734,909
------------ ------------ ------------- ------------- -------------
NET ASSETS
Beneficial interest shares of $0.001 par
value outstanding--31,073,875;
14,748,184; 9,719,924; 13,626,307;
4,407,237; 8,235,307; 16,436,427;
13,725,799; 12,932,340; 13,194,537;
11,573,679; 7,246,484; respectively
(unlimited amount authorized)......... 54,976,055 101,708,652 274,831,751 226,891,465 186,511,936
Accumulated undistributed net investment
income (loss)......................... 192,064 (4,281,805) 54,827 (234,078) 35,726
Accumulated net realized gains (losses)
from investments, other assets,
liabilities, options and forward
contracts denominated in foreign
currencies............................ (214,869) 6,175,741 10,241,586 4,319,852 4,115,155
Net unrealized appreciation/depreciation
of investments, other assets,
liabilities, options and forward
contracts denominated in foreign
currencies............................ 1,824,276 2,958,736 41,644,638 120,601,997 (2,733,769)
------------ ------------ ------------- ------------- -------------
Net assets.............................. $56,777,526 $106,561,324 $326,772,802 $351,579,236 $187,929,048
------------ ------------ ------------- ------------- -------------
------------ ------------ ------------- ------------- -------------
Net Asset Value, offering and redemption
price per share....................... $12.88 $12.94 $19.88 $25.61 $14.53
------------ ------------ ------------- ------------- -------------
------------ ------------ ------------- ------------- -------------
<CAPTION>
PACE
PACE INTERNATIONAL
SMALL/MEDIUM PACE EMERGING
COMPANY INTERNATIONAL MARKETS
GROWTH EQUITY EQUITY EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS
------------- ------------- ------------
<S> <C> <C> <C>
ASSETS
Investments, at value
(cost--$31,479,370; $257,944,118;
$119,108,798 $181,134,135;
$55,868,696; $100,153,398;
$285,368,355; $231,165,862;
$190,941,373; $166,956,665;
$160,046,499; $72,008,439,
respectively)......................... $228,247,699 $ 186,690,496 $65,318,681
Investments of cash collateral received
for securities loaned, at value
(cost--$0; $0; $21,422,625; $0; $0;
$10,887,200; $22,364,900; $8,637,400;
$4,783,800; $14,050,100; $9,772,440;
$3,636,330; respectively)............. 14,050,100 9,772,440 3,636,330
Cash (including cash denominated in
foreign currencies)................... 1,190 1,814,309 1,087,237
Receivable for investments sold......... 2,083,251 1,533,529 392,391
Receivable for shares of beneficial
interest sold......................... 517,458 504,998 195,690
Unrealized appreciation of forward
foreign currency contracts............ -- 285,085 569,779
Dividends and interest receivable....... 67,596 350,765 168,010
Receivable from investment adviser...... -- -- --
Receivable for variation margin......... -- -- --
Deferred organizational expenses........ 29,469 29,469 29,469
Other assets............................ 39,107 33,628 24,576
------------- ------------- ------------
Total assets............................ 245,035,870 201,014,719 71,422,163
------------- ------------- ------------
LIABILITIES
Payable for investments purchased....... 3,346,070 4,287,250 1,624,225
Payable for shares of beneficial
interest repurchased.................. 679,462 509,381 142,240
Payable for cash collateral for
securities loaned..................... 14,050,100 9,772,440 3,636,330
Unrealized depreciation on forward
foreign currency contracts............ -- -- 29,826
Payable to the investment adviser....... 147,964 141,017 43,625
Payable to the securities lending
agent................................. 2,857 1,003 715
Dividends payable to shareholders....... -- -- --
Outstanding options written, at value
(premium received--$38,214)........... -- -- --
Accrued expenses and other
liabilities........................... 129,552 59,284 138,297
------------- ------------- ------------
Total liabilities....................... 18,356,005 14,770,375 5,615,258
------------- ------------- ------------
NET ASSETS
Beneficial interest shares of $0.001 par
value outstanding--31,073,875;
14,748,184; 9,719,924; 13,626,307;
4,407,237; 8,235,307; 16,436,427;
13,725,799; 12,932,340; 13,194,537;
11,573,679; 7,246,484; respectively
(unlimited amount authorized)......... 173,281,595 162,237,005 86,301,764
Accumulated undistributed net investment
income (loss)......................... (398,161) (601,254) 126,231
Accumulated net realized gains (losses)
from investments, other assets,
liabilities, options and forward
contracts denominated in foreign
currencies............................ (7,494,603) (2,348,146) (14,385,177)
Net unrealized appreciation/depreciation
of investments, other assets,
liabilities, options and forward
contracts denominated in foreign
currencies............................ 61,291,034 26,956,739 (6,235,913)
------------- ------------- ------------
Net assets.............................. $226,679,865 $ 186,244,344 $65,806,905
------------- ------------- ------------
------------- ------------- ------------
Net Asset Value, offering and redemption
price per share....................... $17.18 $16.09 $9.08
------------- ------------- ------------
------------- ------------- ------------
</TABLE>
See accompanying notes to financial statements
67
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1999(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)........................ $ 776,402 $ 5,693,806 $ 3,342,395 $ 4,933,404
Dividends (net of foreign withholding
taxes, if any)........................ -- -- -- --
------------ ------------ ------------ ------------
776,402 5,693,806 3,342,395 4,933,404
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory and administration
fees.................................. 50,512 615,749 332,191 548,074
Transfer agency fees and expenses....... 59,397 39,089 20,250 38,700
Legal and audit fees.................... 16,864 25,692 21,934 16,844
Trustees' fees and expenses............. 13,125 13,125 13,125 13,125
Reports and notices to shareholders..... 12,922 20,693 14,056 12,058
Amortization of organizational
expenses.............................. 9,568 9,568 9,568 9,568
Federal and state registration fees..... 6,597 14,559 10,113 10,174
Custody and accounting.................. 1,907 53,401 34,095 47,422
Interest expense........................ -- 41,340 -- 58,566
Other expenses.......................... 2,110 9,655 2,924 4,503
------------ ------------ ------------ ------------
173,002 842,871 458,256 759,034
Less: Fee waivers and reimbursements
from investment adviser............... (100,844) (53,835) (46) (34,949)
------------ ------------ ------------ ------------
Net expenses............................ 72,158 789,036 458,210 724,085
------------ ------------ ------------ ------------
Net investment income (loss)............ 704,244 4,904,770 2,884,185 4,209,319
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS (LOSSES)
FROM INVESTMENT ACTIVITIES:
Net realized gains (losses) from:
Investment transactions............... 168 478,832 747,299 1,241,081
Futures............................... -- -- -- 1,089,407
Foreign currency transactions......... -- -- -- (16,538)
Net change in unrealized
appreciation/depreciation of:
Investments........................... -- 430,838 811,660 (549,634)
Futures............................... -- -- -- (5,319)
Options............................... -- -- -- 34,760
Other assets, liabilities and forward
contracts denominated in foreign
currencies........................... -- -- -- (2,907)
------------ ------------ ------------ ------------
Net realized and unrealized gains
(losses) from investment activities... 168 909,670 1,558,959 1,790,850
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............. $ 704,412 $ 5,814,440 $ 4,443,144 $ 6,000,169
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
68
<PAGE>
<TABLE>
<CAPTION>
PACE
PACE PACE PACE PACE SMALL/MEDIUM
MUNICIPAL GLOBAL FIXED LARGE COMPANY LARGE COMPANY COMPANY
FIXED INCOME INCOME VALUE EQUITY GROWTH EQUITY VALUE EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
------------ ------------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding
taxes, if any)........................ $ 1,454,855 $ 2,725,424 $ 204,458 $ 120,117 $ 149,612
Dividends (net of foreign withholding
taxes, if any)........................ -- -- 2,248,107 1,038,660 1,150,421
------------ ------------ ------------- ------------- -------------
1,454,855 2,725,424 2,452,565 1,158,777 1,300,033
------------ ------------ ------------- ------------- -------------
EXPENSES:
Investment advisory and administration
fees.................................. 174,907 404,507 1,149,304 1,133,667 703,621
Transfer agency fees and expenses....... 12,000 46,098 57,535 57,108 55,560
Legal and audit fees.................... 9,058 12,789 23,718 34,175 21,913
Trustees' fees and expenses............. 13,125 13,125 13,125 13,125 13,125
Reports and notices to shareholders..... 5,649 7,147 25,720 33,376 18,388
Amortization of organizational
expenses.............................. 9,568 9,568 9,568 9,568 9,568
Federal and state registration fees..... 1,840 9,212 25,629 21,798 13,576
Custody and accounting.................. 15,605 76,538 86,198 84,355 53,818
Interest expense........................ -- -- -- -- --
Other expenses.......................... 2,342 4,001 6,072 9,865 3,672
------------ ------------ ------------- ------------- -------------
244,094 582,985 1,396,869 1,397,037 893,241
Less: Fee waivers and reimbursements
from investment adviser............... (8,857) (102,668) -- (3,050) (12,926)
------------ ------------ ------------- ------------- -------------
Net expenses............................ 235,237 480,317 1,396,869 1,393,987 880,315
------------ ------------ ------------- ------------- -------------
Net investment income (loss)............ 1,219,618 2,245,107 1,055,696 (235,210) 419,718
------------ ------------ ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES)
FROM INVESTMENT ACTIVITIES:
Net realized gains (losses) from:
Investment transactions............... (46,569) 4,344,543 10,404,614 1,581,422 2,477,148
Futures............................... -- -- 189,879 -- --
Foreign currency transactions......... -- 4,549,909 -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments........................... 818,528 1,992,744 7,889,306 56,026,945 (14,974,114)
Futures............................... -- -- 328,608 -- --
Options............................... -- -- -- -- --
Other assets, liabilities and forward
contracts denominated in foreign
currencies........................... -- (74,742) -- -- --
------------ ------------ ------------- ------------- -------------
Net realized and unrealized gains
(losses) from investment activities... 771,959 10,812,454 18,812,407 57,608,367 (12,496,966)
------------ ------------ ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations............. $ 1,991,577 $ 13,057,561 $ 19,868,103 $ 57,373,157 $(12,077,248)
------------ ------------ ------------- ------------- -------------
------------ ------------ ------------- ------------- -------------
<CAPTION>
PACE
PACE INTERNATIONAL
SMALL/MEDIUM PACE EMERGING
COMPANY INTERNATIONAL MARKETS
GROWTH EQUITY EQUITY EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS
------------- ------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding
taxes, if any)........................ $ 348,886 $ 195,703 $ 96,013
Dividends (net of foreign withholding
taxes, if any)........................ 230,451 508,122 590,402
------------- ------------- ------------
579,337 703,825 686,415
------------- ------------- ------------
EXPENSES:
Investment advisory and administration
fees.................................. 794,619 732,571 314,687
Transfer agency fees and expenses....... 54,892 43,824 47,199
Legal and audit fees.................... 24,164 21,283 23,877
Trustees' fees and expenses............. 13,125 13,125 13,125
Reports and notices to shareholders..... 18,706 19,040 12,975
Amortization of organizational
expenses.............................. 9,568 9,568 9,568
Federal and state registration fees..... 12,804 16,374 11,730
Custody and accounting.................. 59,224 120,425 89,479
Interest expense........................ -- -- --
Other expenses.......................... 3,099 9,834 2,353
------------- ------------- ------------
990,201 986,044 524,993
Less: Fee waivers and reimbursements
from investment adviser............... (11,572) -- (95,401)
------------- ------------- ------------
Net expenses............................ 978,629 986,044 429,592
------------- ------------- ------------
Net investment income (loss)............ (399,292) (282,219) 256,823
------------- ------------- ------------
REALIZED AND UNREALIZED GAINS (LOSSES)
FROM INVESTMENT ACTIVITIES:
Net realized gains (losses) from:
Investment transactions............... (7,202,373) (2,223,877) (6,737,856)
Futures............................... -- -- --
Foreign currency transactions......... -- (35,433) (168,906)
Net change in unrealized
appreciation/depreciation of:
Investments........................... 32,116,920 4,382,903 (1,052,362)
Futures............................... -- -- --
Options............................... -- -- --
Other assets, liabilities and forward
contracts denominated in foreign
currencies........................... -- 384,713 454,914
------------- ------------- ------------
Net realized and unrealized gains
(losses) from investment activities... 24,914,547 2,508,306 (7,504,210)
------------- ------------- ------------
Net increase (decrease) in net assets
resulting from operations............. $ 24,515,255 $ 2,226,087 $(7,247,387)
------------- ------------- ------------
------------- ------------- ------------
</TABLE>
See accompanying notes to financial statements
69
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PACE
PACE GOVERNMENT SECURITIES
MONEY MARKET INVESTMENTS FIXED INCOME INVESTMENTS
---------------------------- -----------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED
JANUARY 31, FOR THE YEAR JANUARY 31, FOR THE YEAR
1999 ENDED JULY 1999 ENDED JULY
(UNAUDITED) 31, 1998 (UNAUDITED) 31, 1998
------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income................. $ 704,244 $ 1,132,282 $ 4,904,770 $ 7,737,662
Net realized gains (losses) from:
Investment, future and option
transactions....................... 168 (794) 478,832 1,768,979
Foreign currency transactions....... -- -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... -- -- 430,838 (219,247)
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- -- --
------------- ------------ ------------- -------------
Net increase in net assets resulting
from operations...................... 704,412 1,131,488 5,814,440 9,287,394
------------- ------------ ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (704,244) (1,132,282) (5,245,994) (7,404,245)
Net realized gains from investment
transactions......................... -- -- (453,493) (1,983,939)
------------- ------------ ------------- -------------
(704,244) (1,132,282) (5,699,487) (9,388,184)
------------- ------------ ------------- -------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 17,399,265 23,490,598 39,305,853 74,953,404
Cost of shares repurchased............ (12,448,730) (15,154,011) (21,292,312) (23,558,064)
Proceeds from dividends reinvested.... 629,165 1,087,530 5,581,060 9,218,788
------------- ------------ ------------- -------------
Net increase in net assets derived
from beneficial
interest transactions................ 5,579,700 9,424,117 23,594,601 60,614,128
------------- ------------ ------------- -------------
Net increase in net assets............ 5,579,868 9,423,323 23,709,554 60,513,338
NET ASSETS:
Beginning of period................... 25,493,381 16,070,058 162,119,207 101,605,869
------------- ------------ ------------- -------------
End of period......................... $ 31,073,249 $25,493,381 $185,828,261 $ 162,119,207
------------- ------------ ------------- -------------
------------- ------------ ------------- -------------
Undistributed net investment income... $ -- $ -- $ 486,682 $ 827,906
------------- ------------ ------------- -------------
------------- ------------ ------------- -------------
</TABLE>
70
<PAGE>
<TABLE>
<CAPTION>
PACE PACE
INTERMEDIATE FIXED INCOME STRATEGIC FIXED INCOME
INVESTMENTS INVESTMENTS
----------------------------- -----------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED
JANUARY 31, FOR THE YEAR JANUARY 31, FOR THE YEAR
1999 ENDED JULY 1999 ENDED JULY
(UNAUDITED) 31, 1998 (UNAUDITED) 31, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income................. $ 2,884,185 $ 4,708,834 $ 4,209,319 $ 5,466,270
Net realized gains (losses) from:
Investment, future and option
transactions....................... 747,299 694,295 2,330,488 2,535,815
Foreign currency transactions....... -- (156,977) (16,538) 3,871
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... 811,660 (131) (520,193) 380,806
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- 10,844 (2,907) (17)
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations...................... 4,443,144 5,256,865 6,000,169 8,386,745
------------- ------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (2,865,193) (4,386,424) (4,128,512) (5,206,415)
Net realized gains from investment
transactions......................... (724,631) -- (4,178,828) (882,227)
------------- ------------- ------------- -------------
(3,589,824) (4,386,424) (8,307,340) (6,088,642)
------------- ------------- ------------- -------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 27,284,136 47,167,401 64,363,716 61,068,745
Cost of shares repurchased............ (13,655,301) (19,400,214) (17,600,575) (17,663,041)
Proceeds from dividends reinvested.... 6,924,601 4,301,281 8,179,170 6,001,405
------------- ------------- ------------- -------------
Net increase in net assets derived
from beneficial
interest transactions................ 20,553,436 32,068,468 54,942,311 49,407,109
------------- ------------- ------------- -------------
Net increase in net assets............ 21,406,756 32,938,909 52,635,140 51,705,212
NET ASSETS:
Beginning of period................... 99,689,514 66,750,605 126,879,696 75,174,484
------------- ------------- ------------- -------------
End of period......................... $121,096,270 $ 99,689,514 $179,514,836 $ 126,879,696
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Undistributed net investment income... $ 492,198 $ 473,206 $ 718,487 $ 637,680
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<CAPTION>
PACE PACE
MUNICIPAL FIXED INCOME GLOBAL FIXED INCOME
INVESTMENTS INVESTMENTS
---------------------------- -----------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED
JANUARY 31, FOR THE YEAR JANUARY 31, FOR THE YEAR
1999 ENDED JULY 1999 ENDED JULY
(UNAUDITED) 31, 1998 (UNAUDITED) 31, 1998
------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income................. $ 1,219,618 $ 2,019,017 $ 2,245,107 $ 3,828,624
Net realized gains (losses) from:
Investment, future and option
transactions....................... (46,569) (13,397) 4,344,543 2,109,651
Foreign currency transactions....... -- -- 4,549,909 (3,629,877)
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... 818,528 85,256 1,992,744 863,281
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- (74,742) 236,923
------------- ------------ ------------- -------------
Net increase in net assets resulting
from operations...................... 1,991,577 2,090,876 13,057,561 3,408,602
------------- ------------ ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (1,214,932) (1,949,614) (4,374,222) (2,451,594)
Net realized gains from investment
transactions......................... -- -- (3,639,664) (621,114)
------------- ------------ ------------- -------------
(1,214,932) (1,949,614) (8,013,886) (3,072,708)
------------- ------------ ------------- -------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 10,520,809 26,084,535 18,429,964 40,175,161
Cost of shares repurchased............ (7,333,486) (10,769,886) (13,620,873) (14,974,347)
Proceeds from dividends reinvested.... 1,175,858 1,889,649 7,870,650 3,021,988
------------- ------------ ------------- -------------
Net increase in net assets derived
from beneficial
interest transactions................ 4,363,181 17,204,298 12,679,741 28,222,802
------------- ------------ ------------- -------------
Net increase in net assets............ 5,139,826 17,345,560 17,723,416 28,558,696
NET ASSETS:
Beginning of period................... 51,637,700 34,292,140 88,837,908 60,279,212
------------- ------------ ------------- -------------
End of period......................... $ 56,777,526 $51,637,700 $106,561,324 $ 88,837,908
------------- ------------ ------------- -------------
------------- ------------ ------------- -------------
Undistributed net investment income... $ 192,064 $ 187,378 $ -- $ --
------------- ------------ ------------- -------------
------------- ------------ ------------- -------------
</TABLE>
See accompanying notes to financial statements
71
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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 ENDED MONTHS ENDED
JANUARY 31, FOR THE YEAR JANUARY 31, FOR THE YEAR
1999 ENDED JULY 1999 ENDED JULY
(UNAUDITED) 31, 1998 (UNAUDITED) 31, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss).......... $ 1,055,696 $ 1,825,428 $ (235,210) $ (295,829)
Net realized gains (losses) from:
Investment, future and option
transactions....................... 10,594,493 25,588,461 1,581,422 30,303,857
Foreign currency transactions....... -- -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... 8,217,914 (5,835,473) 56,026,945 23,781,478
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- -- --
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations............ 19,868,103 21,578,416 57,373,157 53,789,506
------------- ------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (2,068,017) (1,408,413) -- (89,237)
Net realized gains from investment
transactions......................... (21,559,073) (14,337,107) (19,611,543) (10,121,657)
------------- ------------- ------------- -------------
(23,627,090) (15,745,520) (19,611,543) (10,210,894)
------------- ------------- ------------- -------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 76,107,198 112,692,706 63,440,481 106,725,695
Cost of shares repurchased............ (35,272,126) (48,536,702) (44,468,470) (45,303,487)
Proceeds from dividends reinvested.... 23,342,638 15,558,619 19,384,120 10,126,809
------------- ------------- ------------- -------------
Net increase in net assets derived
from beneficial
interest transactions................ 64,177,710 79,714,623 38,356,131 71,549,017
------------- ------------- ------------- -------------
Net increase in net assets............ 60,418,723 85,547,519 76,117,745 115,127,629
NET ASSETS:
Beginning of period................... 266,354,079 180,806,560 275,461,491 160,333,862
------------- ------------- ------------- -------------
End of period......................... $326,772,802 $ 266,354,079 $351,579,236 $ 275,461,491
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Undistributed net investment income... $ 54,827 $ 1,067,148 $ -- $ 1,132
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
72
<PAGE>
<TABLE>
<CAPTION>
PACE PACE
SMALL/MEDIUM COMPANY SMALL/MEDIUM COMPANY GROWTH
VALUE EQUITY INVESTMENTS EQUITY INVESTMENTS
----------------------------- -----------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED
JANUARY 31, FOR THE YEAR JANUARY 31, FOR THE YEAR
1999 ENDED JULY 1999 ENDED JULY
(UNAUDITED) 31, 1998 (UNAUDITED) 31, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss).......... $ 419,718 $ 1,051,168 $ (399,292) $ (329,021)
Net realized gains (losses) from:
Investment, future and option
transactions....................... 2,477,148 22,462,701 (7,202,373) 8,732,887
Foreign currency transactions....... -- -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... (14,974,114) (15,463,480) 32,116,920 12,043,636
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- -- --
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations............ (12,077,248) 8,050,389 24,515,255 20,447,502
------------- ------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (1,010,551) (1,076,984) -- --
Net realized gains from investment
transactions......................... (17,717,110) (10,697,586) (5,125,542) (6,433,649)
------------- ------------- ------------- -------------
(18,727,661) (11,774,570) (5,125,542) (6,433,649)
------------- ------------- ------------- -------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 42,731,954 80,270,327 36,858,322 84,765,291
Cost of shares repurchased............ (26,082,663) (39,712,671) (33,483,994) (31,908,469)
Proceeds from dividends reinvested.... 18,526,406 11,677,703 5,060,397 6,376,127
------------- ------------- ------------- -------------
Net increase in net assets derived
from beneficial
interest transactions................ 35,175,697 52,235,359 8,434,725 59,232,949
------------- ------------- ------------- -------------
Net increase in net assets............ 4,370,788 48,511,178 27,824,438 73,246,802
NET ASSETS:
Beginning of period................... 183,558,260 135,047,082 198,855,427 125,608,625
------------- ------------- ------------- -------------
End of period......................... $187,929,048 $ 183,558,260 $226,679,865 $ 198,855,427
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Undistributed net investment income... $ 35,726 $ 626,559 $ -- $ 1,131
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<CAPTION>
PACE PACE
INTERNATIONAL EQUITY INTERNATIONAL EMERGING
INVESTMENTS MARKETS EQUITY INVESTMENTS
----------------------------- ----------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED FOR THE YEAR
JANUARY 31, FOR THE YEAR JANUARY 31, ENDED
1999 ENDED JULY 1999 JULY 31,
(UNAUDITED) 31, 1998 (UNAUDITED) 1998
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss).......... $ (282,219) $ 1,469,982 $ 256,823 $ 557,171
Net realized gains (losses) from:
Investment, future and option
transactions....................... (2,223,877) 5,057,201 (6,737,856) (7,304,773)
Foreign currency transactions....... (35,433) 326,095 (168,906) (179,557)
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... 4,382,903 7,689,825 (1,052,362) (15,705,030)
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. 384,713 (207,538) 454,914 243,360
------------- ------------- ------------- ------------
Net increase (decrease) in net assets
resulting from operations............ 2,226,087 14,335,565 (7,247,387) (22,388,829)
------------- ------------- ------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (1,983,217) (1,289,475) (468,284) (208,975)
Net realized gains from investment
transactions......................... (3,678,063) (2,560,448) -- --
------------- ------------- ------------- ------------
(5,661,280) (3,849,923) (468,284) (208,975)
------------- ------------- ------------- ------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 39,404,651 71,453,827 20,013,037 43,340,509
Cost of shares repurchased............ (19,802,164) (24,249,999) (10,189,614) (12,471,626)
Proceeds from dividends reinvested.... 5,599,716 3,808,818 462,033 206,708
------------- ------------- ------------- ------------
Net increase in net assets derived
from beneficial
interest transactions................ 25,202,203 51,012,646 10,285,456 31,075,591
------------- ------------- ------------- ------------
Net increase in net assets............ 21,767,010 61,498,288 2,569,785 8,477,787
NET ASSETS:
Beginning of period................... 164,477,334 102,979,046 63,237,120 54,759,333
------------- ------------- ------------- ------------
End of period......................... $186,244,344 $ 164,477,334 $ 65,806,905 $63,237,120
------------- ------------- ------------- ------------
------------- ------------- ------------- ------------
Undistributed net investment income... $ -- $ 1,664,182 $ 126,231 $ 337,692
------------- ------------- ------------- ------------
------------- ------------- ------------- ------------
</TABLE>
See accompanying notes to financial statements
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber PACE Select Advisors 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.
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 Asset
Management Inc. ("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. When market quotations are unavailable, valuations are based upon
appraisals received from a pricing service using a computerized matrix system or
appraisals derived from information concerning the security or similar
securities received from recognized dealers in those securities. 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 of the PACE Money Market Investments are valued
at amortized cost which approximates market value.
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. 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 the
valuation of such securities is determined and the close of trading on the NYSE,
which will not be reflected
74
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
in the 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.
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.
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 is 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 (loss) 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 or 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
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 or liquid 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.
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
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.
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.
REVERSE REPURCHASE AGREEMENTS--The Trust may enter into reverse repurchase
agreements with qualified third party broker-dealers as determined by, and under
the direction of, the Trust's board of trustees. Interest on the value of
reverse repurchase agreements issued and outstanding is based upon competitive
market rates at the time of issuance. At the time the Trust enters into a
reverse repurchase agreement, it establishes and maintains a segregated account
with the Trust's custodian containing liquid securities having a value not less
than the repurchase price, including accrued interest, of the reverse repurchase
agreement.
For the six months ended January 31, 1999, the PACE Government Securities
Fixed Income Portfolio and the PACE Strategic Fixed Income Portfolio were the
only Portfolio's which engaged in reverse repurchase agreements. The weighted
average daily balance of reverse repurchase agreements outstanding during the
six months ended January 31, 1999 was $1,440,761 and $2,291,739, respectively,
at a weighted average interest rate of 5.61% and 5.00%, respectively.
76
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
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.
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, state 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 paid monthly, in accordance with
the following schedule:
<TABLE>
<CAPTION>
ANNUAL RATE
AS A PERCENTAGE OF
EACH PORTFOLIO'S
PORTFOLIO AVERAGE DAILY NET 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>
77
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
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
PORTFOLIO SUB-ADVISER AVERAGE DAILY NET 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 Alliance Capital Management L.P. 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 Inc. 0.50%
Investments
</TABLE>
Mitchell Hutchins has agreed to voluntarily waive all or a portion of its
investment advisory and administration fee and reimburse certain operating
expenses for the six months ended January 31, 1999, which will lower the overall
expenses of certain Portfolios.
During the year ending July 31, 1999, the Portfolios did not pay any brokerage
commissions to PaineWebber for transactions executed on behalf of the
Portfolios.
SECURITIES LENDING
Each Portfolio may lend securities up to 33 1/3% of its total assets to
qualified institutions. The loans are secured at all times by cash or U.S.
government securities in an amount at least equal to the market value of the
securities loaned, plus accrued interest and dividends, determined on a daily
basis and adjusted accordingly. The Portfolios will regain record ownership of
loaned securities to exercise certain beneficial rights, however, the Portfolios
may bear the risk of delay in recovery of, or even loss of rights in, the
securities loaned should the borrower fail financially. The Portfolios receive
compensation, which is included in interest income, for lending their securities
on interest earned on the cash or U.S. government securities held as collateral,
net of fee rebates paid to the borrower plus reasonable administrative and
custody fees. PaineWebber, which is the Portfolio's lending agent, received
compensation from the Portfolios for the six months ended January 31, 1999 as
follows:
<TABLE>
<CAPTION>
PORTFOLIO COMPENSATION
- --------------------------------------------------------------------------------------------- -------------
<S> <C>
PACE Government Securities Fixed Income Investments.......................................... $ 100
PACE Intermediate Fixed Income Investments................................................... $ 21,789
PACE Global Fixed Income Investments......................................................... $ 11,728
PACE Large Company Value Equity Investments.................................................. $ 3,319
PACE Large Company Growth Equity Investments................................................. $ 6,210
PACE Small/Medium Company Value Equity Investments........................................... $ 5,681
PACE Small/Medium Company Growth Equity Investments.......................................... $ 12,046
PACE International Equity Investments........................................................ $ 3,004
PACE International Emerging Markets Equity Investments....................................... $ 2,285
</TABLE>
78
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
For the six months ended January 31, 1999 the Portfolio's earned compensation
from securities lending transactions net of fees, rebates and expenses as
follows:
<TABLE>
<CAPTION>
PORTFOLIO COMPENSATION
- --------------------------------------------------------------------------------------------- -------------
<S> <C>
PACE Government Securities Fixed Income...................................................... $ 301
PACE Intermediate Fixed Income Investments................................................... $ 65,577
PACE Global Fixed Income Investments......................................................... $ 35,190
PACE Large Company Value Equity Investments.................................................. $ 9,397
PACE Large Company Growth Equity Investments................................................. $ 18,618
PACE Small/Medium Company Value Equity Investments........................................... $ 16,925
PACE Small/Medium Company Growth Equity Investments.......................................... $ 36,142
PACE International Equity Investments........................................................ $ 9,921
PACE International Emerging Markets Equity Investments....................................... $ 6,854
</TABLE>
As of January 31, 1999 the Portfolios held cash as collateral for market
values of securities loaned as follows:
<TABLE>
<CAPTION>
COLLATERAL MARKET VALUE
FOR OF
SECURITIES SECURITIES
PORTFOLIO LOANED LOANED
- ------------------------------------------------------------ ------------ ------------
<S> <C> <C>
PACE Intermediate Fixed Income Investments.................. $21,422,625 $20,900,563
PACE Global Fixed Income Investments........................ $10,887,200 $10,382,606
PACE Large Company Value Equity Investments................. $22,364,900 $22,156,469
PACE Large Company Growth Equity Investments................ $ 8,637,400 $ 8,551,982
PACE Small/Medium Company Value Equity Investments.......... $ 4,783,800 $ 4,403,875
PACE Small/Medium Company Growth Equity Investments......... $14,050,100 $13,609,862
PACE International Equity Investments....................... $ 9,772,440 $ 9,345,972
PACE International Emerging Markets Equity Investments...... $ 3,636,330 $ 3,392,561
</TABLE>
As of January 31, 1999 the Funds invested the collateral in the following
money market funds and certificates of deposit:
<TABLE>
<CAPTION>
NUMBER OF
SHARES/
PRINCIPAL
AMOUNT VALUE
- ------------- -----------
<C> <S> <C>
PACE INTERMEDIATE FIXED INCOME INVESTMENTS:
5,000,000 State Street Cayman Island Certificate of Deposit, 4.813% due 02/01/99.............................. $ 5,000,000
4,000,000 State Street Cayman Island Certificate of Deposit, 4.750% due 02/01/99.............................. 4,000,000
6,358,503 Janus Money Market Institutional Shares............................................................. 6,358,503
4,417,983 Prime Portfolio..................................................................................... 4,417,983
1,646,139 Liquid Assets Portfolio............................................................................. 1,646,139
-----------
Total Investments of Cash Collateral for Securities Loaned (cost--$21,422,625)...................... $21,422,625
-----------
-----------
PACE GLOBAL FIXED INCOME INVESTMENTS:
4,768,840 Liquid Assets Portfolio............................................................................. $ 4,768,840
4,736,168 Janus Money Market Institutional Shares............................................................. 4,736,168
1,379,189 Prime Portfolio..................................................................................... 1,379,189
3,003 TempFund Portfolio.................................................................................. 3,003
-----------
Total Investments of Cash Collateral for Securities Loaned (cost--$10,887,200)...................... $10,887,200
-----------
-----------
</TABLE>
79
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -----------
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS:
<C> <S> <C>
9,605,191 Janus Money Market Institutional Shares............................................................. $ 9,605,191
12,308,265 Liquid Assets Portfolio............................................................................. 12,308,265
179,639 Prime Portfolio..................................................................................... 179,639
271,805 TempFund Portfolio.................................................................................. 271,805
-----------
Total Investments of Cash Collateral for Securities Loaned (cost--$22,364,900)...................... $22,364,900
-----------
-----------
PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS:
7,203,797 Janus Money Market Institutional Shares............................................................. $ 7,203,797
1,028,541 Liquid Assets Portfolio............................................................................. 1,028,541
405,062 TempFund Portfolio.................................................................................. 405,062
-----------
Total Investments of Cash Collateral for Securities Loaned (cost--$8,637,400)....................... $ 8,637,400
-----------
-----------
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS:
2,951,202 Janus Money Market Institutional Shares............................................................. $ 2,951,202
1,373,146 Liquid Assets Portfolio............................................................................. 1,373,146
382,650 TempCash Portfolio.................................................................................. 382,650
76,802 TempFund Portfolio.................................................................................. 76,802
-----------
Total Investments of Cash Collateral for Securities Loaned (cost--$4,783,800)....................... $ 4,783,800
-----------
-----------
PACE SMALL/MEDIUM COMPANY GROWTH EQUITY INVESTMENTS:
10,478,448 Janus Money Market Institutional Shares............................................................. $10,478,448
751,446 Liquid Assets Portfolio............................................................................. 751,446
2,322,534 Prime Portfolio..................................................................................... 2,322,534
497,672 TempFund Portfolio.................................................................................. 497,672
-----------
Total Investments of Cash Collateral for Securities Loaned (cost--$14,050,100)...................... $14,050,100
-----------
-----------
PACE INTERNATIONAL EQUITY INVESTMENTS:
7,633,309 Janus Money Market Institutional Shares............................................................. $ 7,633,309
2,045,293 Liquid Asset Portfolio.............................................................................. 2,045,293
93,838 Prime Portfolio..................................................................................... 93,838
-----------
Total Investments of Cash Collateral for Securities Loaned (cost--$9,772,440)....................... $ 9,772,440
-----------
-----------
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS:
1,939,848 Liquid Assets Portfolio............................................................................. $ 1,939,848
1,629,596 Janus Money Market Institutional Shares............................................................. 1,629,596
61,093 Prime Portfolio..................................................................................... 61,093
5,793 TempFund Portfolio.................................................................................. 5,793
-----------
Total Investments of Cash Collateral for Securities Loaned (cost--$3,636,330)....................... $ 3,636,330
-----------
-----------
</TABLE>
BANK LINE OF CREDIT
Each of the Portfolios, with the exception of PACE Money Market Investments,
may participate with other funds managed by Mitchell Hutchins in a $200 million
committed credit facility ("Facility") to be utilized for temporary financing
until the settlement of sales or purchases of portfolio securities, the
repurchase or redemption of shares of the Portfolios at the request of the
shareholders and other temporary or emergency purposes. In connection therewith,
the Portfolios have agreed to pay commitment fees, pro rata, based on the
relative asset size of the funds in the Facility. Interest is charged to the
Portfolios at rates based on prevailing market rates in effect at the time of
borrowings. For the six months ended January 31, 1999, the Portfolios did not
borrow under the Facility.
80
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
WRITTEN OPTION ACTIVITY
Written option activity for the six months ended January 31, 1999 for PACE
Strategic Fixed Income Investments was as follows:
<TABLE>
<CAPTION>
AMOUNT
NUMBER OF OF
OPTIONS PREMIUMS
--------- --------
<S> <C> <C>
Options outstanding at July 31, 1998............... -- --
Options written.................................... 114 $43,903
Options terminated in closing purchase
transactions..................................... (12) (5,689)
Options expired prior to exercise.................. -- --
--------- --------
Options outstanding at January 31, 1999............ 102 $38,214
--------- --------
--------- --------
</TABLE>
INVESTMENTS IN SECURITIES
At January 31, 1999, 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............ $ 2,396,461 $ (305,804) $ 2,090,657
PACE Intermediate Fixed Income Investments..................... $ 1,721,230 $ (154,702) $ 1,566,528
PACE Strategic Fixed Income Investments........................ $ 2,948,209 $ (1,052,414) $ 1,895,795
PACE Municipal Fixed Income Investments........................ $ 1,861,499 $ (37,223) $ 1,824,276
PACE Global Fixed Income Investments........................... $ 4,039,112 $ (826,403) $ 3,212,709
PACE Large Company Value Equity Investments.................... $ 61,914,854 $(20,334,299) $ 41,580,555
PACE Large Company Growth Equity Investments................... $ 121,536,284 $ (934,287) $ 120,601,997
PACE Small/Medium Company Value Equity Investments............. $ 24,626,734 $(27,360,503) $ (2,733,769)
PACE Small/Medium Company Growth Equity Investments............ $ 65,243,259 $ (3,952,225) $ 61,291,034
PACE International Equity Investments.......................... $ 33,042,662 $ (6,392,412) $ 26,650,250
PACE International Emerging Markets Equity Investments......... $ 8,066,536 $(14,756,294) $ (6,689,758)
</TABLE>
For U.S. federal income tax purposes, the cost of securities owned at January
31, 1999 was substantially the same as the cost of securities for financial
statement purposes.
81
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
For the six months ended January 31, 1999, 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....................... $ 507,037,562 $ 487,789,664
PACE Intermediate Fixed Income Investments................................ $ 86,866,868 $ 65,701,454
PACE Strategic Fixed Income Investments................................... $ 231,753,774 $ 197,237,883
PACE Municipal Fixed Income Investments................................... $ 7,702,144 $ 3,056,386
PACE Global Fixed Income Investments...................................... $ 120,367,101 $ 111,646,109
PACE Large Company Value Equity Investments............................... $ 90,934,059 $ 44,513,491
PACE Large Company Growth Equity Investments.............................. $ 83,256,216 $ 66,237,649
PACE Small/Medium Company Value Equity Investments........................ $ 66,529,140 $ 49,858,152
PACE Small/Medium Company Growth Equity Investments....................... $ 95,586,684 $ 90,972,995
PACE International Equity Investments..................................... $ 71,514,755 $ 54,407,194
PACE International Emerging Markets Equity Investments.................... $ 26,178,212 $ 14,739,374
</TABLE>
FEDERAL 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, 1998, PACE Municipal Fixed Income Investments and PACE
International Emerging Markets Equity Investments had net capital loss
carryforwards of $127,608 and $1,627,998, respectively. These carryforward
losses are available to reduce future net capital gains to the extent provided
in the regulations, and will expire on July 31, 2005 and July 31, 2006,
respectively, for PACE Municipal Fixed Investment and PACE International
Emerging Markets Investments. To the extent that such losses are used to offset
future capital gains, the gains so offset will not be distributed to
shareholders.
In accordance with U.S. Treasury regulations, the following Portfolios have
elected to defer realized capital losses and foreign currency losses arising
after October 31, 1997. Such losses are treated for tax purposes as arising on
August 1, 1998:
<TABLE>
<CAPTION>
FOREIGN
CAPITAL CURRENCY
PORTFOLIO LOSSES LOSSES
- ------------------------------------------------------------------------------------------------------- ---------- ------------
<S> <C> <C>
PACE Intermediate Fixed Income Investments............................................................. -- $ 1,805
PACE Global Fixed Income Investments................................................................... -- $2,342,346
PACE International Emerging Markets Equity Investments................................................. $5,245,337 $ 131,350
</TABLE>
82
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
SHARES OF BENEFICIAL INTEREST
For the six months ended January 31, 1999, transactions in shares of
beneficial interest for each of the Portfolios were as follows:
<TABLE>
<CAPTION>
NET
INCREASE
SHARES DIVIDENDS IN SHARES
PORTFOLIO SHARES SOLD REPURCHASED REINVESTED OUTSTANDING
- -------------------------------------------------------------------------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
PACE Money Market Investments............................................. 17,399,265 (12,448,730) 629,165 5,579,700
PACE Government Securities Fixed Income Investments....................... 3,121,704 (1,693,027) 445,331 1,874,008
PACE Intermediate Fixed Income Investments................................ 2,182,870 (1,091,244) 557,715 1,649,341
PACE Strategic Fixed Income Investments................................... 4,796,158 (1,316,508) 623,565 4,103,215
PACE Municipal Fixed Income Investments................................... 822,195 (572,660) 91,952 341,487
PACE Global Fixed Income Investments...................................... 1,410,405 (1,038,842) 610,319 981,882
PACE Large Company Value Equity Investments............................... 3,908,739 (1,808,214) 1,193,997 3,294,522
PACE Large Company Growth Equity Investments.............................. 2,920,329 (1,989,192) 813,775 1,744,912
PACE Small/Medium Company Value Equity Investments........................ 2,795,483 (1,734,715) 1,317,668 2,378,436
PACE Small/Medium Company Growth Equity Investments....................... 2,502,534 (2,209,551) 315,880 608,863
PACE International Equity Investments..................................... 2,580,526 (1,304,590) 353,071 1,629,007
PACE International Emerging Markets Equity Investments.................... 2,308,241 (1,185,958) 51,623 1,173,906
</TABLE>
For the year ended July 31, 1998, transactions in shares of beneficial interest
for each of the Portfolios were as follows:
<TABLE>
<CAPTION>
NET
INCREASE
SHARES DIVIDENDS IN SHARES
PORTFOLIO SHARES SOLD REPURCHASED REINVESTED OUTSTANDING
- -------------------------------------------------------------------------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
PACE Money Market Investments............................................. 23,490,598 (15,154,011) 1,087,530 9,424,117
PACE Government Securities Fixed Income Investments....................... 5,956,008 (1,871,923) 735,288 4,819,373
PACE Intermediate Fixed Income Investments................................ 3,838,135 (1,575,993) 350,527 2,612,669
PACE Strategic Fixed Income Investments................................... 4,641,172 (1,341,365) 456,984 3,756,791
PACE Municipal Fixed Income Investments................................... 2,059,685 (849,714) 149,316 1,359,287
PACE Global Fixed Income Investments...................................... 3,272,148 (1,217,922) 246,330 2,300,556
PACE Large Company Value Equity Investments............................... 5,651,851 (2,414,998) 876,048 4,112,901
PACE Large Company Growth Equity Investments.............................. 5,306,522 (2,219,585) 577,355 3,664,292
PACE Small/Medium Company Value Equity Investments........................ 4,284,262 (2,103,668) 663,129 2,843,723
PACE Small/Medium Company Growth Equity Investments....................... 5,487,097 (2,056,793) 455,763 3,886,067
PACE International Equity Investments..................................... 4,679,150 (1,584,848) 275,005 3,369,307
PACE International Emerging Markets Equity Investments.................... 3,585,094 (1,039,414) 17,728 2,563,408
</TABLE>
83
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
PACE
MONEY MARKET INVESTMENTS
-------------------------------------------------------
FOR THE FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 ------------------- ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------------- -------- -------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- -------- -------- -------
Net investment income............................. 0.02 0.05 0.05 0.05
------- -------- -------- -------
Dividends from net investment income.............. (0.02) (0.05) (0.05) (0.05)
------- -------- -------- -------
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- -------- -------- -------
------- -------- -------- -------
Total investment return (1)....................... 2.49% 5.32% 5.13% 4.75%
------- -------- -------- -------
------- -------- -------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $31,073 $ 25,493 $ 16,070 $10,221
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.50%* 0.50% 0.50% 0.50%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 1.20%* 1.20% 1.89% 2.40%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 4.88%* 5.20% 5.04% 4.93%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 4.18%* 4.50% 3.65% 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 return for periods of less than one year has not been
annualized.
84
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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
----------------------------------------------------------
FOR THE FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 --------------------- ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------------- --------- --------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 12.59 $ 12.61 $ 12.07 $ 12.00
-------- --------- --------- -------
Net investment income............................. 0.35 0.72 0.64 0.49
Net realized and unrealized gains from investments
and futures..................................... 0.07 0.18 0.58 0.03
-------- --------- --------- -------
Net increase from investment operations........... 0.42 0.90 1.22 0.52
-------- --------- --------- -------
Dividends from net investment income.............. (0.38) (0.72) (0.63) (0.44)
Distributions from net realized gains from
investments..................................... (0.03) (0.20) (0.05) (0.01)
-------- --------- --------- -------
Total dividends and distributions................. (0.41) (0.92) (0.68) (0.45)
-------- --------- --------- -------
Net asset value, end of period.................... $ 12.60 $ 12.59 $ 12.61 $ 12.07
-------- --------- --------- -------
-------- --------- --------- -------
Total investment return (1)....................... 3.41% 7.39% 10.42% 4.35%
-------- --------- --------- -------
-------- --------- --------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $185,829 $ 162,119 $ 101,606 $ 58,752
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.90%*++ 0.85% 1.57%++ 0.85%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.96%*++ 0.95% 1.70%++ 1.15%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 5.58%*++ 5.90% 5.44%++ 5.09%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 5.52%*++ 5.80% 5.31%++ 4.79%*
Portfolio turnover................................ 216% 353% 712% 978%
</TABLE>
- -----------------
+ For the period August 24, 1995 (commencement of operations) through July
31, 1996.
* Annualized
++ Includes 0.05% and 0.72% of interest expense related to the reverse
repurchase agreements during the six months ended January 31, 1999 and
the year ended July 31, 1997, respectively.
(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 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 return for periods of less than one year has
not been annualized.
85
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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
------------------------------------------------------
FOR THE YEARS
FOR THE ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 ------------------ ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------------- ------- -------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 12.35 $ 12.23 $ 11.95 $ 12.00
-------- ------- -------- -------
Net investment income............................. 0.32 0.67 0.66 0.53
Net realized and unrealized gains (losses) from
investments and foreign currency................. 0.20 0.09 0.28 (0.09)
-------- ------- -------- -------
Net increase from investment operations........... 0.52 0.76 0.94 0.44
-------- ------- -------- -------
Dividends from net investment income.............. (0.33) (0.64) (0.66) (0.48)
Distributions from net realized gains from
investments...................................... (0.08) -- -- (0.01)
-------- ------- -------- -------
Total dividends and distributions................. (0.41) (0.64) (0.66) (0.49)
-------- ------- -------- -------
Net asset value, end of period.................... $ 12.46 $ 12.35 $ 12.23 $ 11.95
-------- ------- -------- -------
-------- ------- -------- -------
Total investment return (1)....................... 4.26% 6.41% 8.14% 3.59%
-------- ------- -------- -------
-------- ------- -------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $121,096 $99,690 $ 66,751 $41,273
Expenses to average net assets, net of fee waivers
and expense reimbursements....................... 0.83%* 0.84% 0.85% 0.85%*
Expenses to average net assets, before fee waivers
and expense reimbursements....................... 0.83%* 0.84% 0.99% 1.23%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements........ 5.21%* 5.60% 5.70% 5.56%*
Net investment income to average net assets,
before fee waivers and expense reimbursements.... 5.21%* 5.60% 5.56% 5.18%*
Portfolio turnover................................ 61% 111% 67% 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 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 return for periods of less than one year has
not been annualized.
86
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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
--------------------------------------------------------
FOR THE FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 -------------------- ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------------- --------- -------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 13.32 $ 13.04 $ 12.44 $ 12.00
-------- --------- -------- -------
Net investment income............................. 0.35 0.69 0.67 0.59
Net realized and unrealized gains from
investments, futures, options and foreign
currency........................................ 0.20 0.40 0.70 0.38
-------- --------- -------- -------
Net increase from investment operations........... 0.55 1.09 1.37 0.97
-------- --------- -------- -------
Dividends from net investment income.............. (0.36) (0.69) (0.67) (0.52)
Distributions from net realized gains from
investments..................................... (0.34) (0.12) (0.10) (0.01)
-------- --------- -------- -------
Total dividends and distributions................. (0.70) (0.81) (0.77) (0.53)
-------- --------- -------- -------
Net asset value, end of period.................... $ 13.17 $ 13.32 $ 13.04 $ 12.44
-------- --------- -------- -------
-------- --------- -------- -------
Total investment return (1)....................... 4.24% 8.66% 11.35% 8.15%
-------- --------- -------- -------
-------- --------- -------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $179,515 $ 126,880 $ 75,174 $42,550
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.93%*++ 0.85% 0.85% 0.85%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.97%*++ 0.94% 1.10% 1.40%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 5.38%*++ 5.49% 5.69% 5.85%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 5.34%*++ 5.40% 5.44% 5.30%*
Portfolio turnover................................ 120% 234% 357% 166%
</TABLE>
- -----------------
+ For the period August 24, 1995 (commencement of operations) through July
31, 1996.
++ Includes 0.08% of interest expense related to the reverse repurchase
agreements during the six months ended January 31, 1999.
* 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 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 return for periods of less than one year has
not been annualized.
87
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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
-------------------------------------------------------
FOR THE FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 ------------------- ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------------- -------- -------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 12.70 $ 12.67 $ 12.32 $ 12.00
-------- -------- -------- -------
Net investment income............................. 0.28 0.58 0.61 0.49
Net realized and unrealized gains from
investments..................................... 0.18 0.02 0.38 0.27
-------- -------- -------- -------
Net increase from investment operations........... 0.46 0.60 0.99 0.76
-------- -------- -------- -------
Dividends from net investment income.............. (0.28) (0.57) (0.61) (0.43)
Distributions from net realized gains from
investments..................................... -- -- (0.03) (0.01)
-------- -------- -------- -------
Total dividends and distributions................. (0.28) (0.57) (0.64) (0.44)
-------- -------- -------- -------
Net asset value, end of period.................... $ 12.88 $ 12.70 $ 12.67 $ 12.32
-------- -------- -------- -------
-------- -------- -------- -------
Total investment return (1)....................... 3.69% 4.87% 8.30% 6.38%
-------- -------- -------- -------
-------- -------- -------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $ 56,778 $ 51,638 $ 34,292 $17,765
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.85%* 0.85% 0.85% 0.85%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.88%* 0.93% 1.40% 1.74%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 4.41%* 4.67% 5.08% 4.95%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 4.38%* 4.59% 4.53% 4.07%*
Portfolio turnover................................ 6% 34% 15% 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 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 return for periods of less than one year has
not been annualized.
88
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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 FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 ------------------- ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------------- -------- -------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 12.25 $ 12.17 $ 12.33 $ 12.00
-------- -------- -------- -------
Net investment income............................. 0.35 0.62 0.64 0.53
Net realized and unrealized gains (losses) from
investments and foreign currency................ 1.38 (0.03) (0.21) 0.27
-------- -------- -------- -------
Net increase from investment operations........... 1.73 0.59 0.43 0.80
-------- -------- -------- -------
Dividends from net investment income and foreign
currency........................................ (0.57) (0.40) (0.51) (0.46)
Distributions from net realized gains from
investments..................................... (0.47) (0.11) (0.08) (0.01)
-------- -------- -------- -------
Total dividends and distributions................. (1.04) (0.51) (0.59) (0.47)
-------- -------- -------- -------
Net asset value, end of period.................... $ 12.94 $ 12.25 $ 12.17 $ 12.33
-------- -------- -------- -------
-------- -------- -------- -------
Total investment return (1)....................... 14.29% 4.88% 3.54% 6.68%
-------- -------- -------- -------
-------- -------- -------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $106,561 $ 88,838 $ 60,279 $38,296
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.95%* 0.95% 0.95% 0.95%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 1.15%* 1.23% 1.29% 1.61%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 4.44%* 5.10% 5.36% 5.24%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 4.24%* 4.82% 5.02% 4.58%*
Portfolio turnover................................ 122% 125% 270% 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 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 return for periods of less than one year has
not been annualized.
89
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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
---------------------------------------------------------
FOR THE FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 --------------------- ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------------- --------- --------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 20.27 $ 20.03 $ 14.07 $ 12.00
-------- --------- --------- -------
Net investment income............................. 0.06 0.14 0.11 0.12
Net realized and unrealized gains from investments
and futures..................................... 1.15 1.63 6.61 2.02
-------- --------- --------- -------
Net increase from investment operations........... 1.21 1.77 6.72 2.14
-------- --------- --------- -------
Dividends from net investment income.............. (0.14) (0.14) (0.11) (0.05)
Distributions from net realized gains from
investments..................................... (1.46) (1.39) (0.65) (0.02)
-------- --------- --------- -------
Total dividends and distributions................. (1.60) (1.53) (0.76) (0.07)
-------- --------- --------- -------
Net asset value, end of period.................... $ 19.88 $ 20.27 $ 20.03 $ 14.07
-------- --------- --------- -------
-------- --------- --------- -------
Total investment return (1)....................... 6.10% 9.89% 49.13% 17.90%
-------- --------- --------- -------
-------- --------- --------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $326,773 $ 266,354 $ 180,807 $80,897
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.97%* 0.98% 1.00% 1.00%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.97%* 0.98% 1.06% 1.40%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 0.73%* 0.82% 0.81% 1.22%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 0.73%* 0.82% 0.75% 0.82%*
Portfolio turnover................................ 16% 34% 46% 38%
</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 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 return for periods of less than one year has
not been annualized.
90
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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
----------------------------------------------------------
FOR THE SIX FOR THE YEARS ENDED
MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 --------------------- ENDED
(UNAUDITED) 1998# 1997 JULY 31, 1996+
---------------- --------- --------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 22.99 $ 19.28 $ 13.27 $ 12.00
-------- --------- --------- -------
Net investment income (loss)...................... (0.02) (0.03) 0.03 0.03
Net realized and unrealized gains from
investments..................................... 4.14 4.79 6.01 1.26
-------- --------- --------- -------
Net increase from investment operations........... 4.12 4.76 6.04 1.29
-------- --------- --------- -------
Dividends from net investment income.............. -- (0.01) (0.03) (0.02)
Distributions from net realized gains from
investments..................................... (1.50) (1.04) -- --
-------- --------- --------- -------
Total dividends and distributions................. (1.50) (1.05) (0.03) (0.02)
-------- --------- --------- -------
Net asset value, end of period.................... $ 25.61 $ 22.99 $ 19.28 $ 13.27
-------- --------- --------- -------
-------- --------- --------- -------
Total investment return (1)....................... 18.41% 26.40% 45.61% 10.76%
-------- --------- --------- -------
-------- --------- --------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $351,579 $ 275,461 $ 160,334 $69,248
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.98%* 1.00% 1.00% 1.00%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.99%* 1.02% 1.05% 1.33%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements.................................. (0.16)%* (0.14)% 0.22% 0.33%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements.................................. (0.17)%* (0.16)% 0.17% (0.00)%*
Portfolio turnover................................ 23% 102% 73% 65%
</TABLE>
- -----------------
+ For the period August 24, 1995 (commencement of operations) through July
31, 1996.
* Annualized
# Sub-Investment advisory functions for this portfolio were transferred
from Chancellor LGT Asset Management, Inc. to Alliance Capital Management
L.P. on November 10, 1997.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
distributions 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 return for periods of less than one year has
not been annualized.
91
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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
---------------------------------------------------------
FOR THE SIX FOR THE YEARS ENDED
MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 --------------------- ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------------- --------- --------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 17.39 $ 17.52 $ 12.29 $ 12.00
-------- --------- --------- -------
Net investment income............................. 0.03 0.10 0.12 0.10
Net realized and unrealized gains (losses) from
investments..................................... (1.25) 1.14 5.55 0.23
-------- --------- --------- -------
Net increase (decrease) from investment
operations...................................... (1.22) 1.24 5.67 0.33
-------- --------- --------- -------
Dividends from net investment income.............. (0.09) (0.13) (0.10) (0.04)
Distributions from net realized gains from
investments..................................... (1.55) (1.24) (0.34) --
-------- --------- --------- -------
Total dividends and distributions................. (1.64) (1.37) (0.44) (0.04)
-------- --------- --------- -------
Net asset value, end of period.................... $ 14.53 $ 17.39 $ 17.52 $ 12.29
-------- --------- --------- -------
-------- --------- --------- -------
Total investment return (1)....................... (6.68)% 6.97% 46.99% 2.76%
-------- --------- --------- -------
-------- --------- --------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $187,929 $ 183,558 $ 135,047 $63,894
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 1.00%* 0.99% 1.00% 1.00%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 1.02%* 1.00% 1.12% 1.51%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 0.48%* 0.61% 1.00% 1.07%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 0.46%* 0.60% 0.88% 0.56%*
Portfolio turnover................................ 29% 42% 39% 30%
</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 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 return for periods of less than one year has
not been annualized.
92
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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
---------------------------------------------------------
FOR THE SIX FOR THE YEARS ENDED
MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 --------------------- ENDED
(UNAUDITIED) 1998 1997# JULY 31, 1996+
---------------- --------- --------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 15.80 $ 14.44 $ 11.20 $ 12.00
-------- --------- --------- -------
Net investment income (loss)...................... (0.03) (0.03) (0.02) 0.00**
Net realized and unrealized gains (losses) from
investments..................................... 1.79 2.03 3.26 (0.78)
-------- --------- --------- -------
Net increase (decrease) from investment
operations...................................... 1.76 2.00 3.24 (0.78)
-------- --------- --------- -------
Dividends from net investment income.............. -- -- -- (0.02)
Distributions from net realized gains from
investments..................................... (0.38) (0.64) -- --
-------- --------- --------- -------
Total dividends and distributions................. (0.38) (0.64) 0.00 (0.02)
-------- --------- --------- -------
Net asset value, end of period.................... $ 17.18 $ 15.80 $ 14.44 $ 11.20
-------- --------- --------- -------
-------- --------- --------- -------
Total investment return (1)....................... 11.32% 14.44% 28.93% (6.55)%
-------- --------- --------- -------
-------- --------- --------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $226,680 $ 198,855 $ 125,609 $63,364
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 1.00%* 1.00% 1.00% 1.00%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 1.01%* 1.03% 1.08% 1.27%*
Net investment loss to average net assets, net of
fee waivers and expense reimbursements.......... (0.41)%* (0.20)% (0.21)% (0.14)%*
Net investment loss to average net assets, before
fee waivers and expense reimbursements.......... (0.42)%* (0.23)% (0.29)% (0.41)%*
Portfolio turnover................................ 49% 131% 247% 115%
</TABLE>
- -----------------
+ For the period August 24, 1995 (commencement of operations) through July
31, 1996.
* Annualized
** Amount is less than $0.005 per share
# Sub-Investment advisory functions for this portfolio were transferred
from Westfield Capital Management Company, Inc. to Delaware Management
Company, Inc. on December 17, 1996.
(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 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 return for periods of less than one year has
not been annualized.
93
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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 FOR THE YEARS ENDED
MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 1999 --------------------- ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------------- --------- --------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 16.54 $ 15.66 $ 12.79 $ 12.00
-------- --------- --------- -------
Net investment income (loss)...................... (0.03) 0.16 0.10 0.12
Net realized and unrealized gains from investments
and foreign currency............................ 0.11 1.20 2.97 0.73
-------- --------- --------- -------
Net increase from investment operations........... 0.08 1.36 3.07 0.85
-------- --------- --------- -------
Dividends from net investment income.............. (0.19) (0.16) (0.13) (0.06)
Distributions from net realized gains from
investments..................................... (0.34) (0.32) (0.07) --
-------- --------- --------- -------
Total dividends and distributions................. (0.53) (0.48) (0.20) (0.06)
-------- --------- --------- -------
Net asset value, end of period.................... $ 16.09 $ 16.54 $ 15.66 $ 12.79
-------- --------- --------- -------
-------- --------- --------- -------
Total investment return (1)....................... 0.52% 9.27% 24.30% 7.08%
-------- --------- --------- -------
-------- --------- --------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $186,244 $ 164,477 $ 102,979 $45,331
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 1.21%* 1.21% 1.35% 1.50%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 1.21%* 1.21% 1.35% 1.81%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements.................................. (0.35)%* 1.14% 0.95% 1.35%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements.................................. (0.35)%* 1.14% 0.95% 1.04%*
Portfolio turnover................................ 35% 56% 55% 25%
</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 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 return for periods of less than one year has
not been annualized.
94
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS 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
ENDED FOR THE YEARS ENDED
JANUARY JULY 31, FOR THE PERIOD
31, 1999 ----------------------- ENDED
(UNAUDITED) 1998 1997 JULY 31, 1996+
---------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................................. $ 10.41 $ 15.60 $ 12.49 $ 12.00
---------- ---------- ---------- -------
Net investment income................................................. 0.03 0.09 0.06 0.07
Net realized and unrealized gains (losses) from investments and
foreign currency.................................................... (1.29) (5.23) 3.09 0.44
---------- ---------- ---------- -------
Net increase (decrease) from investment operations.................... (1.26) (5.14) 3.15 0.51
---------- ---------- ---------- -------
Dividends from net investment income.................................. (0.07) (0.05) (0.04) (0.02)
---------- ---------- ---------- -------
Net asset value, end of period........................................ $ 9.08 $ 10.41 $ 15.60 $ 12.49
---------- ---------- ---------- -------
---------- ---------- ---------- -------
Total investment return (1)........................................... (12.09)% (32.99)% 25.31% 4.23%
---------- ---------- ---------- -------
---------- ---------- ---------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)..................................... $ 65,807 $ 63,237 $ 54,759 $ 25,481
Expenses to average net assets, net of fee waivers and expense
reimbursements...................................................... 1.50%* 1.50% 1.50% 1.50%*
Expenses to average net assets, before fee waivers and expense
reimbursements...................................................... 1.84%* 1.79% 2.09% 2.35%*
Net investment income to average net assets, net of fee waivers and
expense reimbursements.............................................. 0.90%* 0.98% 0.63% 0.94%*
Net investment income to average net assets, before fee waivers and
expense reimbursements.............................................. 0.56%* 0.69% 0.04% 0.08%*
Portfolio turnover.................................................... 27% 51% 39% 22%
</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 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 return for periods of less than one year has
not been annualized.
95
<PAGE>
MANAGED ACCOUNTS SERVICES
PAINEWEBBER
-C-1999 PaineWebber Incorporated
Member SIPC
