<PAGE>
PAINEWEBBER P A C E-SM-
Personalized Asset Consulting and Evaluation
Going The
Distance
To Meet Your
Financial Needs
Semiannual Report
January 31, 2000
This material is intended for use only by current PACE investors and must be
preceded or accompanied by the current PACE prospectus.
<PAGE>
PAINEWEBBER P A C E
TABLE OF CONTENTS
<TABLE>
<S> <C>
- -----------------------------------------------------------
Introduction................................. 1
PACE Money Market Investments................ 2
PACE Government Securities Fixed Income
Investments................................. 4
PACE Intermediate Fixed Income Investments... 6
PACE Strategic Fixed Income Investments...... 8
PACE Municipal Fixed Income Investments...... 10
PACE Global Fixed Income Investments......... 12
PACE Large Company Value Equity
Investments................................. 14
PACE Large Company Growth Equity
Investments................................. 16
PACE Small/Medium Company Value Equity
Investments................................. 18
PACE Small/Medium Company Growth Equity
Investments................................. 21
PACE International Equity Investments........ 23
PACE International Emerging Markets Equity
Investments................................. 25
- -----------------------------------------------------------
</TABLE>
THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE
FUNDS WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN
OPINION THEREON.
i
<PAGE>
PAINEWEBBER PACE SEMIANNUAL REPORT JANUARY 31, 2000
INTRODUCTION
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 summaries of the performance of each PACE
Portfolio and comments from each of the investment advisers covering events
since the annual report for July 31, 1999. 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 period. 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 Portfolios
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,
<TABLE>
<CAPTION>
/s/ Margo Alexander /s/ Bruce A. Bursey
<S> <C>
MARGO ALEXANDER BRUCE A. BURSEY
Chairman and Chief Executive Officer Senior Vice President
Mitchell Hutchins Asset Management Inc. Managed Accounts Consulting Services
PaineWebber Incorporated
</TABLE>
This letter is intended to assist shareholders in understanding how the
portfolios performed during the six-month period ended January 31, 2000 and
reflects both our views and the sub-advisers' views at the time of its writing.
Of course, these views may change in response to changing circumstances. We
encourage you to consult your Financial Advisor regarding your personal
investment program.
1
<PAGE>
PACE MONEY MARKET INVESTMENTS
ADVISER: Mitchell Hutchins Asset Management Inc.
PORTFOLIO MANAGER: Susan Ryan
OBJECTIVE: Current income consistent with preservation of capital and liquidity
INVESTMENT PROCESS: The Portfolio is a money market mutual fund and seeks to
maintain a stable price of $1.00 per share. The Portfolio invests in a
diversified portfolio of high-quality money market instruments of governmental
and private issuers. Security selection is based on the assessment of relative
values and changes in market and economic conditions.
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEARS SINCE INCEPTION 8/24/95
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
With PACE program fee DEG. 1.79% 3.33% 3.55% 3.56%
Without PACE program fee 2.55% 4.89% 5.12% 5.12%
90-Day U.S. T-Bill 2.51% 4.82% 4.94% 5.02%
Lipper Median 2.46% 4.66% 4.88% 4.92%
- -------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Money Market Investments versus the
benchmark 90-Day U.S. T-bill and the Lipper Money Market Funds Median. It is
important to note that PACE Money Market Investments is a professionally managed
portfolio while the benchmark is not available for investment and is unmanaged.
The comparison is shown for illustrative purposes only.
ADVISER'S COMMENTS
Interest rates remained under pressure during the period, as the economy
continued to expand more briskly than anticipated. Economic activity showed no
signs of abating, and the Federal Reserve (the "Fed") twice raised the Fed Funds
rate by 25 basis points ("bps"; a basis point equals one one-hundredth of one
percent). Combined with a 25 bps increase earlier in 1999, the two rate
increases during the period completed the reversal of the 75 bps reduction
engineered in 1998 to combat the global financial crisis. By period-end, the
30-year Treasury bond's yield had increased to 6.49%, a two-year high. At the
same time, short-term rates rose significantly, with 90-day T-bills moving from
a yield equivalent of 4.78% at the beginning of the period to a yield of 5.69%
at its close.
With the Y2K issue well behind us we can focus on more than just the need for
liquidity. Going forward, we intend to structure the Portfolio to balance its
goals of current income and liquidity. We expect to keep the Portfolio's average
maturity at or slightly below its peer group in anticipation of higher rates.
At its most recent Open Market Committee meeting in February the Fed again
raised rates by 25 bps, raising the Federal Funds rate to 5.75%. We expect an
active Fed and rising rates across the yield curve in the first half of 2000.
2
<PAGE>
We look for moderating economic growth in the second half of the year, and
believe interest rates will stabilize in response to current growth and the
absence of real inflationary pressure. As always, we intend to maintain the
Portfolio's emphasis on liquidity, high credit quality and portfolio diversity.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION*
<S> <C>
- ---------------------------------------------------------
Commercial Paper 70.2%
Bank Obligations 10.8
U.S. Treasurys/Agencies 9.4
Corporate & MTNs 6.9
Mutual Funds 2.7
- ---------------------------------------------------------
Total 100.0
</TABLE>
<TABLE>
<CAPTION>
TOP 10 COMMERCIAL PAPER HOLDINGS* % PORTFOLIO S&P RATING
<S> <C> <C>
- -----------------------------------------------------------------------
Household Finance Corp. 4.9% A1/P1
Woodstreet Funding Corp. 4.9 A1+/P1
Falcon Asset Securitization Corp. 4.9 A1/P1
United Parcel Service 4.7 A1/P1
J.P. Morgan & Co., Inc. 4.5 A1+/P1
Enterprise Funding Corp. 3.8 A1+/P1
Preferred Receivables Funding Corp. 3.6 A1+/P1
Southern Co. 3.6 A1+/P1
Emerson Electric Co. 3.3 A1+/P1
Block Financial Corp. 3.3 A1+/P1
- -----------------------------------------------------------------------
Total 41.2
</TABLE>
<TABLE>
<CAPTION>
CHARACTERISTICS*
<S> <C>
- ------------------------------------------------------
Net Assets ($mm) $59.1
# of Issuers (excl Govts and Money Market
Funds) 35
Weighted Average Maturity 35 days
- ------------------------------------------------------
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
3
<PAGE>
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
ADVISER: Pacific Investment Management Company (PIMCO)
PORTFOLIO MANAGER: Scott Mather
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 ranges between one and seven
years. (Duration is a measure of a bond portfolio's sensitivity to interest-rate
changes.) 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.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEARS SINCE INCEPTION 8/24/95
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
With PACE program fee DEG. 0.39% -1.70% 3.55% 4.08%
Without PACE program fee 1.14% -0.21% 5.12% 5.65%
Lehman Brothers Mortgage Backed Securities
Index 1.12% 0.26% 5.48% 6.09%
Lipper Median 0.22% -2.58% 4.51% 4.75%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Government Securities Fixed Income
Investments versus the Lehman Brothers Mortgage Backed Securities Index and the
Lipper Intermediate U.S. Government Funds Median. It is important to note that
PACE Government Securities Fixed Income Investments is a professionally managed
portfolio while the Index is not available for investment and is unmanaged. The
comparison is shown for illustrative purposes only.
ADVISER'S COMMENTS
Above-index duration, or the Portfolio's sensitivity to interest rate changes,
was a negative for performance as rates rose by as much as 111 basis points
during the period. (A basis point equals 1/100th of one percent.) As rates rose
and prepayment concerns diminished, we migrated to higher-coupon mortgages. This
added to performance because the average coupon increased and because
higher-coupon mortgages performed better than lower-coupon mortgages. Limited
exposure to yield enhancing collateralized mortgage obligations (CMOs) added to
returns, as did the use of relatively high-yielding adjustable rate mortgages
(ARMs).
Growth is likely to slow modestly as higher mortgage rates make it more
expensive for consumers to liquidate the equity in their homes. Although the
employment cost index came in higher than expected, these costs probably will
not be passed on to consumers in the form of accelerating inflation, because
firms lack pricing power and productivity is increasing. In addition, the
Federal Reserve may raise interest rates at least once more during the first
half of 2000 to ensure that inflation is contained.
The outlook for mortgages is favorable, given historically attractive yield
premiums relative to Treasurys and reduced prepayment risk due to higher
mortgage rates. We intend to target Portfolio duration near the benchmark, as
rates are expected to remain within our secular range. To take advantage of
value across the yield curve we expect to hold a broader selection of maturities
than the benchmark. We will continue to emphasize highly liquid pass-through
mortgages and seek to enhance the yield of the Portfolio by adding higher-coupon
issues. We plan to maintain exposure
4
<PAGE>
to well-structured CMOs in order to capture relatively high yield premiums and
we will continue to use ARMs as higher-yielding alternatives to other short-term
holdings. Finally, we intend to hold real return bonds, which offer compelling
value with real yields now over four percent.
<TABLE>
<CAPTION>
CHARACTERISTICS* PORTFOLIO INDEX
<S> <C> <C>
- --------------------------------------------------------------------
Duration 4.6yrs 4.4yrs
Maturity 6.6yrs 7.6yrs
Average Coupon 5.8% 6.8%
Average Yield to Maturity 7.4% 7.8%
Average Quality AAA AAA
Net Assets ($mm) $199.9 --
Number of Securities 182 --
Cash Equivalents 0.7% --
Bonds 99.3% --
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
ASSET ALLOCATION* PORTFOLIO INDEX
<S> <C> <C>
- --------------------------------------------------------------------
Agency Mortgage Pass-Throughs 58.6% 100%
Collateralized Mortgages 27.7 --
U.S. Government & Agency 8.2 --
Agency Backed 2.8 --
Corporate Obligations 1.4 --
Cash Equivalents 0.7 --
Asset Backed 0.3 --
Stripped Mortgage Backed 0.3 --
- --------------------------------------------------------------------
Total 100.0 100
</TABLE>
- -------------
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
5
<PAGE>
PACE INTERMEDIATE FIXED INCOME INVESTMENTS
ADVISER: Pacific Income Advisers, Inc.
PORTFOLIO MANAGER: Lloyd McAdams
OBJECTIVE: Current income consistent with reasonable stability of principal
INVESTMENT PROCESS: The Portfolio invests primarily in U.S. and foreign
government and corporate bonds and bonds that are backed by mortgages or other
assets. The Portfolio limits its investments to investment grade bonds. The
Portfolio's dollar-weighted average duration (a measure of sensitivity to
interest rate changes) 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.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEARS SINCE INCEPTION 8/24/95
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
With PACE program fee DEG. -0.36% -2.49% 3.02% 3.21%
Without PACE program fee 0.39% -1.01% 4.57% 4.77%
Lehman Brothers Intermediate-Term
Government/Corporate Bond Index 0.70% -0.53% 5.23% 5.54%
Lipper Median 0.70% -0.21% 4.57% 4.99%
- -------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Intermediate Fixed Income
Investments versus the Lehman Brothers Intermediate-Term Government/Corporate
Bond Index and the Lipper Short-Intermediate Investment Grade Debt Funds Median.
It is important to note that PACE Intermediate Fixed Income Investments is a
professionally managed portfolio while the Index is not available for investment
and is unmanaged. The comparison is shown for illustrative purposes only.
ADVISER'S COMMENTS
The Portfolio benefited from its duration positioning at various times during
the six-month period ended January 31, 2000, as well as from its overweighting
in mortgage-backed securities and BBB-rated corporate bonds. During the period,
the Portfolio underperformed the Lipper median because of the Portfolio's
generally longer duration in a period when interest rates dramatically
increased.
The Federal Reserve increased the Federal Funds rate twice during the period
in an attempt to correct perceived imbalances in the economy. Continuing strong
economic growth and the higher bond yields needed to attract capital from the
stock market are likely to pressure bonds over the near term. The 10-year yield
increased by 76 basis points for the six months ended January 2000, while the
two-to-ten year spread narrowed by 21 basis points for the period after widening
to as much as 37 basis points in August of 1999. (A basis point equals 1/100th
of one percent.) Yield spreads on mortgage-backed securities narrowed during the
period, causing them to post solid gains as volatility and issuance declined.
(The "spread" is the extra income or yield that corporate and mortgage
securities must offer over Treasurys, to compensate for the greater risk of such
securities.) The corporate sector posted mixed results with BBB-rated securities
outperforming the rest of the corporate market for the period.
During the fourth quarter of 1999, we kept the duration of the Portfolio close
to its benchmark as the tug-of-war between fast economic growth and low
inflation intensified, increasing the uncertainty about the short-term direction
of interest rates. Following the increase in rates in December 1999, we moved
the core portfolio duration to 0.3 years
6
<PAGE>
longer than the benchmark at the beginning of January, believing that the upside
potential in extending duration had increased. We maintained our overweighting
in spread sectors, as they remain attractive on a risk-adjusted basis. We expect
to continue adding corporate positions selectively, since we believe pockets of
opportunity still exist in the corporate market. At the same time, we believe
that the risk of corporate downgrades has increased, which motivates our
selective approach.
<TABLE>
<CAPTION>
CHARACTERISTICS* PORTFOLIO INDEX
<S> <C> <C>
- ---------------------------------------------------------------------
Duration 3.7yrs 3.4yrs
Maturity 5.4yrs 4.3yrs
Average Coupon 6.6% 6.5%
Average Yield to Maturity 7.4% 7.1%
Net Assets ($mm) $139.8 --
Number of Securities 144 --
Bonds 99.8% --
Cash & Cash Equivalents 0.2% --
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
QUALITY DIVERSIFICATION* PORTFOLIO INDEX
<S> <C> <C>
- ---------------------------------------------------------------------
Cash & Equivalents 0.2% --
U.S. Government & Gov't Agencies 42.4 66.5%
AAA 12.7 2.6
AA 3.1 6.9
A 25.5 14.5
BBB 16.1 9.5
- ---------------------------------------------------------------------
Total 100.0 100.0
</TABLE>
<TABLE>
<CAPTION>
ASSET ALLOCATION* PORTFOLIO INDEX
<S> <C> <C>
- ---------------------------------------------------------------------
Cash & Equivalents 0.2% --
U.S. Governments 31.9 48.8%
Government Agencies 10.5 17.7
Mortgage-Backed 11.5 --
Asset-Backed 7.0 --
Corporate Inv. Grade 38.9 33.5
- ---------------------------------------------------------------------
Total 100.0 100.0
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
7
<PAGE>
PACE STRATEGIC FIXED INCOME INVESTMENTS
ADVISER: Pacific Investment Management Company (PIMCO)
PORTFOLIO MANAGER: William Powers
OBJECTIVE: Total return consisting of income and capital appreciation
INVESTMENT PROCESS: The Portfolio invests primarily in investment grade bonds of
governmental and private issuers in the United States and foreign countries. Its
dollar-weighted average duration (a measure of sensitivity to interest rate
changes) 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.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEARS SINCE INCEPTION 8/24/95
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
With PACE program fee DEG. -0.70% -5.25% 3.19% 4.72%
Without PACE program fee 0.05% -3.82% 4.75% 6.30%
Lehman Brothers Government/
Corporate Bond Index 0.38% -2.87% 5.49% 5.72%
Lipper Median 0.27% -2.34% 4.62% 4.97%
- --------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Strategic Fixed Income Investments
versus the Lehman Brothers Government/Corporate Bond Index and the Lipper
Intermediate Investment Grade Debt Funds Median. It is important to note that
PACE Strategic Fixed Income Investments is a professionally managed portfolio
while the Index is not available for investment and is unmanaged. The comparison
is shown for illustrative purposes only.
ADVISER'S COMMENTS
The Portfolio's above-benchmark duration, or sensitivity to interest rate
changes, detracted from performance during the period as interest rates rose as
much as 111 basis points. (A basis point equals 1/100th of one percent.) The
emphasis on mortgages helped returns as spreads narrowed due to reduced
prepayment risks resulting from rising rates. The Portfolio's underweighting in
high-grade corporates hurt returns as corporates outperformed Treasurys during
the period. Limited holdings of high-quality, emerging-market bonds were a
strong positive due to their relatively high yields and increasing global
economic stability. A conservative allocation to below-investment-grade bonds
(8.4%)* was a positive, as concerns about rising default rates abated.
We believe growth will slow modestly as higher mortgage rates make it more
expensive for consumers to liquidate the equity in their homes. Although the
employment cost index came in higher than expected, these costs probably will
not be passed on to consumers in the form of accelerating inflation, because
firms lack pricing power and productivity is increasing. In addition, the
Federal Reserve is likely to raise interest rates at least once more during the
first half of 2000 to ensure that inflation is contained.
We intend to target duration slightly below the benchmark, given that rates
may increase. We expect to begin shifting our focus away from intermediate
maturities by selling mortgages and Treasurys, and to migrate towards a barbell
structure to take advantage of the inverted yield curve. We expect the inversion
in the yield curve to continue
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
8
<PAGE>
for some time due to supply and demand dynamics. However, yield-capture
strategies may continue to dominate. Hence, we probably will continue to write
options to generate income and favor securities with embedded option premiums,
such as callable bonds.
Although we still feel that refinancing risk remains low, we intend to
modestly reduce our overweighting in mortgages to take advantage of the inverted
yield curve. At the same time, we plan to retain our underweighting of
investment-grade corporates. We think corporate bonds could suffer adverse price
performance if earnings erode due to declining profit margins. Our strategy is
to trim holdings of below-investment grade bonds, focusing on high-quality names
amid concerns about rising default rates. We expect to maintain a modest
position in top-tier emerging markets, which could benefit from improving growth
prospects.
<TABLE>
<CAPTION>
CHARACTERISTICS* PORTFOLIO INDEX
<S> <C> <C>
- --------------------------------------------------------------------
Duration 5.84yrs 5.84yrs
Maturity 9.52yrs 9.67yrs
Average Coupon 6.16% 6.77%
Average Yield to Maturity 7.47% 7.19%
Net Assets ($mm) $229.5 --
Bonds 94.8% --
Cash & Equivalents 5.2% --
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
QUALITY DIVERSIFICATION* PORTFOLIO INDEX
<S> <C> <C>
- --------------------------------------------------------------------
AAA 65.1% 69%
AA 5.2 6
A 13.2 15
BBB 8.1 10
BB & B 8.4 0
- --------------------------------------------------------------------
Total 100.0 100
</TABLE>
<TABLE>
<CAPTION>
SECTOR ALLOCATION* PORTFOLIO INDEX
<S> <C> <C>
- --------------------------------------------------------------------
Mortgage/Asset Backed 35.9% --
Corporate Bonds 28.0 34%
U.S. Government/Agency 27.8 66
Cash & Cash Equivalents 5.2 --
Emerging Markets 3.1 --
- --------------------------------------------------------------------
Total 100.0 100
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
9
<PAGE>
PACE MUNICIPAL FIXED INCOME INVESTMENTS
ADVISER: Deutsche Asset Management, Inc.
PORTFOLIO MANAGER: David Baldt
OBJECTIVE: High current income exempt from federal income tax
INVESTMENT PROCESS: The Portfolio invests substantially all of its assets in
investment grade municipal bonds of varying maturities. These are bonds and
similar securities that are exempt from federal income tax. Its dollar-weighted
average duration (a measure of sensitivity to interest rate changes) ranges
between three and seven years. Deutsche Asset Management employs an
issue-oriented relative value municipal bond investment discipline in deciding
which bonds to buy or sell for the Portfolio. It believes that the municipal
market is highly inefficient and fragmented, offering opportunities to purchase
high-quality bonds at attractive prices.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEARS SINCE INCEPTION 8/24/95
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
With PACE program fee DEG. -3.09% -5.07% 1.41% 2.78%
Without PACE program fee -2.36% -3.63% 2.94% 4.33%
Lehman Brothers Municipal Five-Year Index 0.29% -0.36% 4.15% 4.39%
Lipper Median -1.06% -3.12% 3.49% 4.08%
- ---------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Municipal Fixed Income Investments
versus the Lehman Brothers Municipal Five-Year Index and the Lipper Intermediate
Municipal Debt Funds Median. It is important to note that PACE Municipal Fixed
Income Investments is a professionally managed portfolio while the Index is not
available for investment and is unmanaged. The comparison is shown for
illustrative purposes only.
ADVISER'S COMMENTS
Through the end of 1999 and beginning of 2000, the bond market experienced one
of the worst years in history. A strong U.S. economy and rising energy prices
caused investors to fear the possible effects of inflation, leading to a sell-
off in the bond market. The Federal Reserve raised short-term interest rates
three times in 1999, citing tight labor markets and inflated asset prices, even
though inflation remained below 3%. This combination of rising rates and low
inflation led to volatility in all fixed income markets.
Rising interest rates had a dampening effect on the municipal market pushing
up yields. In addition, reduced supply and low activity among institutional
buyers hampered the municipal market. The rising interest rate environment
reduced the supply of new bonds. In periods of rising rates, municipalities do
not refinance older debt since they cannot obtain lower interest rates in the
market.
Institutional investors did not generate their usual level of buying and
selling activity because of declining profitability among property and casualty
insurance companies, bond fund outflows, increasing yields in the corporate bond
market and year-end, tax-loss selling. Insurance companies comprise nearly half
of the institutional market; their reduced activity therefore significantly
affected the overall municipal market. The volatility in the bond market caused
investors to move to other asset classes--leading to less cash for mutual funds
to invest. Many institutional buyers purchased corporate bonds, mostly in the
third quarter of 1999, as many companies sought to issue their debt before
Y2K--causing a momentary glut in supply and reduced corporate bond prices.
Finally, bond investors sold positions, especially in the fourth quarter, to
book tax losses before year-end to offset equity gains.
10
<PAGE>
In our view, municipal bonds remained cheap compared to other fixed income
securities through the period. Municipal bond yields relative to Treasury bond
yields remained significantly above historical norms. The 30-year AA municipal
bond yield relative to a 30-year Treasury yield hovered between 92% to 98% for
the six-month period ended January 31, 2000. This historical relationship has
been between 82% to 84%.
The Portfolio underperformed the Index due to the extended duration of the
Portfolio, which hurt performance as bond yields increased rapidly during the
period. The Portfolio's duration was extended to capture the value at the longer
end of the yield curve, as municipals remained undervalued relative to
Treasurys. The Portfolio benefited from the large concentration of
prerefunded/escrowed to maturity (ETM) and federal agency backed housing issues,
as the higher coupons provided cushioning against price declines. The Portfolio
currently has emphasis on high credit quality issues, as we feel that investors
are not rewarded for purchasing lower-rated issues. We still think short and
intermediate maturities represent better value on the yield curve. Duration of
the Portfolio has been shortened.
<TABLE>
<CAPTION>
CHARACTERISTICS*
<S> <C>
- -------------------------------------------------------
Duration 5.5yrs
Maturity 7.5yrs
Average Coupon 6.0%
Net Assets ($mm) $55.0
Bonds 95.8%
Cash & Equivalents 4.2%
- -------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOP 5 SECTORS* TOP 5 STATES*
<S> <C> <C> <C>
- -------------------------------------------------------------------------
Insured 28.9% Texas 11.4%
Federal Agency Backed 21.7 California 11.1
ETM Pre-Refunded 17.5 Pennsylvania 10.5
Corporate Supported 11.2 Indiana 6.6
Housing 10.9 Illinois 4.7
- -------------------------------------------------------------------------
Total 90.2 Total 44.3
</TABLE>
<TABLE>
<CAPTION>
QUALITY DIVERSIFICATION*
<S> <C>
- -------------------------------------------------------
Government 0.6%
AAA 53.7
AA 22.3
A 16.2
BBB 1.1
Other/Not Rated 6.1
- -------------------------------------------------------
Total 100.0
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
11
<PAGE>
PACE GLOBAL FIXED INCOME INVESTMENTS
ADVISER: Rogge Global Partners plc
PORTFOLIO MANAGER: Team led by Olaf Rogge
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
primarily in high-grade bonds of governmental and private issuers in the U.S.
and developed foreign countries. Its dollar-weighted average duration (a measure
of sensitivity to interest rate changes) 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.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEARS SINCE INCEPTION 8/24/95
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
With PACE program fee DEG. -5.76% -12.85% 1.13% 2.08%
Without PACE program fee -5.05% -11.53% 2.66% 3.62%
Salomon Smith Barney World Government Bond
Index -1.48% -5.44% 3.62% 3.83%
Lipper Median -2.03% -5.91% 1.93% 4.00%
- ----------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Global Fixed Income Investments
versus the Salomon Smith Barney World Government Bond Index and the Lipper
Global Income Funds Median. It is important to note that PACE Global Fixed
Income Investments is a professionally managed portfolio while the Index is not
available for investment and is unmanaged. The comparison is shown for
illustrative purposes only.
ADVISER'S COMMENTS
The Portfolio underperformed its benchmark for the six months ended
January 31, 2000, largely due to our large underweight position in Japanese
government bonds, the best performing bond market during the period. In
addition, our overweight position in the euro during the final months of 1999
hurt performance as the dollar strengthened. These negative factors were only
partially offset by the positive impact of our short duration position in the
United States and our holdings of emerging market securities. The Portfolio
underperformed the median return in the Lipper global income peer group for the
period.
We continue to feel that European assets will attract investment from outside
the euro bloc, thus reversing the outward flow of foreign direct investment that
has undermined the euro since its January 1999 launch. European economic growth
has accelerated markedly, and there is substantial spare capacity in terms of
industrial and human capital. In addition, the technological revolution, which
has propelled the U.S. equity markets, is only just beginning in Europe. On a
trade-weighted basis, the euro and its predecessors are as cheap as they have
been since 1970. We therefore continue to overweight the euro and the European
bond markets, both in Euroland and in noneuro markets such as Sweden and Norway.
We continue to underweight Japanese bonds, which had been supported primarily
by economic uncertainty, now that the economy appears to be strengthening. At
the same time, the supply of Japanese bonds is likely to continue rising sharply
due to increasing government debt levels. If current trends continue, Japanese
government liabilities will represent 150% of GDP within five years, up from
105% today.
12
<PAGE>
We continue to find the U.S. bond market unattractive due to the need for
additional interest rate hikes to slow the economy. In addition, we are
increasingly concerned by the growing current account deficit, which has now
reached 4% of GDP, the highest level in more than 100 years. While we are
underweight versus the benchmark, we are extending duration in anticipation that
interest rate hikes will successfully cool growth.
<TABLE>
<CAPTION>
CHARACTERISTICS* PORTFOLIO INDEX
<S> <C> <C>
- --------------------------------------------------------------------
Duration 5.68yrs 5.48yrs
Maturity 7.38yrs 7.57yrs
Weighted Average Coupon 5.40% 5.66%
Weighted Average Yield to Maturity 5.77% 4.61%
Net Assets ($mm) $104.4 --
Number of Securities 54 --
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
QUALITY DIVERSIFICATION* PORTFOLIO INDEX
<S> <C> <C>
- -------------------------------------------------------------------
Cash & Equivalents 2.9% --
U.S. Government 2.6 27.4%
AAA 56.9 65.5
AA 17.4 7.1
A 10.7 --
BBB 4.5 --
BB 5.0 --
- -------------------------------------------------------------------
Total 100.0 100.0
</TABLE>
<TABLE>
<CAPTION>
TOP 5 COUNTRIES* PORTFOLIO INDEX TOP 5 CURRENCIES* PORTFOLIO INDEX
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Germany 18.7% 27.4% Euro 45.3% 33.7%
U.S. 17.9 7.8 Yen 6.8 26.6
Netherlands 12.2 2.5 U.S. Dollar 22.2 27.4
United Kingdom 8.7 1.3 Swedish Krona 7.6 1.3
Sweden 7.5 2.9 British Pound 6.2 6.0
- -------------------------------------------------------------------------------------------------------------
Total 65.0 41.9 Total 88.1 95.0
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
13
<PAGE>
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
ADVISER: Brinson Partners, Inc.
PORTFOLIO MANAGERS: Team led by Jeffrey J. Diermeier, Robert C. Moore, John C.
Leonard and Lydia J. Miller
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 $4.0 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
approximately 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.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEARS SINCE INCEPTION 8/24/95
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
With PACE program fee DEG. -16.00% -11.34% 6.79% 13.07%
Without PACE program fee -15.36% -10.00% 8.40% 14.78%
Russell 1000 Value Index -5.22% 3.02% 15.68% 19.30%
Lipper Median -6.04% 0.06% 10.22% 14.23%
- --------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Large Company Value Equity
Investments versus the Russell 1000 Value Index and the Lipper Multi-Cap Value
Funds Median. It is important to note that PACE Large Company Value Equity
Investments is a professionally managed portfolio while the Index is not
available for investment and is unmanaged. The comparison is shown for
illustrative purposes only.
ADVISER'S COMMENTS
For the six-month period ended January 31, 2000, the Portfolio trailed the
return of the benchmark. Stock selection was the most significant negative
influence on performance attribution during this six-month period. About half of
the negative stock specific returns can be attributed to three stocks: Xerox
(1.1%), Raytheon (1.2%) and Compuware (1.8%).* Industry weightings produced a
smaller negative impact on Portfolio performance, due primarily to the
underweight position in financials and telecommunication services (13.6 and 10.4
percentage points, respectively, below the benchmark). The overweighting to
information technology (10.9 percentage points above the benchmark) provided
some positive offset.
During this period the U.S. economy has maintained the longest peacetime
expansion in this century. Recently, GDP growth for the fourth quarter of 1999
was revised upward to 6.8%. Overseas economies are accelerating as well, with
the weighted 2000 GDP growth forecast for the EU, Japan and Latin America rising
to 2.5%, from 2.3% three months ago. The downside for the overall stock market
in this strong economic environment is the threat that inflationary pressures
are building. With pricing power virtually nonexistent, companies struggle to
pass along higher energy costs and other commodity cost increases. Volatility in
the market is resulting from the short-term battle between good earnings growth
on the positive side and higher interest rates driven by inflation fears on the
negative side. Market participation has been very narrow and momentum-driven;
the performance of the technology sector has dominated sector returns. Growth
stocks continue to outperform value stocks by a wide margin.
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
14
<PAGE>
In the United States, we remain overweighted in a number of basic materials
stocks in the construction and paper industries, as well as the capital goods,
railroad/air-transport, healthcare and information services industries. The
Portfolio's key underweights are in telecommunication services, energy,
financial services and media companies.
<TABLE>
<CAPTION>
CHARACTERISTICS*
<S> <C>
- -------------------------------------------------------
Size of Portfolio ($mm) $349.5
No. of Securities 91
Stocks 98.0%
Cash 2.0%
- -------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS*
<S> <C>
- -------------------------------------------------------
Fed Ex Corp. 3.4%
Burlington North Santa Fe Inc. 3.3
Electronic Data Systems Corp. 2.6
Allergan, Inc. 2.5
CIGNA Corp. 2.4
Compaq Computer Corp. 2.3
Advanced Micro Devices, Inc. 2.1
Motorola, Inc. 2.1
Illinois Tool Works, Inc. 2.0
Baxter International Inc. 1.9
- -------------------------------------------------------
Total 24.6
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE SECTORS*
<S> <C>
- -------------------------------------------------------
Technology 19.8%
Financial Services 14.6
Consumer Cyclical 11.9
Utilities 11.2
Healthcare 10.5
- -------------------------------------------------------
Total 68.0
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
15
<PAGE>
PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS
ADVISER: Alliance Capital Management L.P.
PORTFOLIO MANAGER: Jane Mack Gould
OBJECTIVE: Capital appreciation
INVESTMENT PROCESS: The Portfolio invests primarily 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 $4.0 billion at the 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.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
SINCE INCEPTION SINCE CURRENT
6 MONTHS 1 YEAR 3 YEARS 8/24/95 MANAGER 11/30/97
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
With PACE program fee DEG. 9.71% 10.04% 23.57% 23.15% 26.27%
Without PACE program fee 10.54% 11.70% 25.44% 25.01% 28.17%
Russell 1000 Growth Index 18.68% 19.87% 29.00% 29.11% 30.44%
Lipper Median 19.13% 21.89% 27.62% 25.85% 29.04%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Large Company Growth Equity
Investments versus the Russell 1000 Growth Index and the Lipper Large Cap Growth
Funds Median. It is important to note that PACE Large Company Growth Equity
Investments is a professionally managed portfolio while the Index is not
available for investment and is unmanaged. The comparison is shown for
illustrative purposes only.
ADVISER'S COMMENTS
During the six months ended January 31, 2000, the Portfolio underperformed the
Russell 1000 Growth Index. Underperformance occurred primarily in the last three
months of the period and was attributable to the Portfolio's underweighting in
technology vs. the Russell 1000 Growth Index.
Technology accounted for 46% of the Russell Index at the end of January and
33% of the Portfolio. This underweighting reflects our valuation work, which
indicates that the technology sector is not sufficiently attractive to justify a
benchmark weight. However, we have maintained holdings in stocks that we regard
as dominant companies in their respective niches:* Altera (1.8%), Cisco (5.0%),
Intel (4.6%), and Nokia (3.1%). We also added Oracle (1.3%) and initiated small
positions in newer, rapidly growing companies such as JDS Uniphase (0.2%) and
PSINet (0.6%). Despite our long-term enthusiasm for the technology sector, we
are wary of significantly increasing the sector weight at current valuations. We
are hopeful that continued volatility in this sector will present attractive
buying opportunities.
Our underweighting in healthcare and consumer staples helped performance.
Other stocks that contributed to performance were Computer Sciences (1.4%),
Harley Davidson (1.8%), Home Depot (2.3%), Medtronic (2.1%) and Wal-Mart (1.6%).
Although the financial services sector underperformed, Citigroup (4.0%) and
Morgan Stanley Dean Witter (2.4%) had outstanding results. Underperforming
stocks included Dell (3.3%), IBM (1.1%) and Microsoft (4.4%). The absence of
General Electric (3.9%) until November also penalized performance. Finally, it
is possible that our limit
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
16
<PAGE>
on individual stocks, to 5% of the Portfolio's net asset value, could cause the
Portfolio to be underweighted in holdings versus the benchmark. For example,
Cisco, Microsoft and General Electric are all more than 5% of the Russell 1000
Index.
Going forward, we anticipate slower consumer spending this year. The Federal
Reserve may have to make two or more interest rate hikes to slow spending.
Higher oil prices are likely to affect inflation during the first half of 2000.
Notwithstanding this short-term pressure, we do not consider inflation a problem
this year. Excellent productivity gains have contributed to low unit labor
costs, and there is a high correlation between unit labor costs and inflation.
In addition, excess capacity worldwide, increased competition from global
deregulation and low-cost labor resources abroad are forces working against
inflationary pressures. However, the most important factor influencing the rate
of inflation is the Internet, which promises major opportunities for lower costs
and prices both to the consumer and business. Thus, our inflation forecast for
2000 is 2%.
This year is likely to be somewhat confusing to investors as conflicting
economic statistics are reported, and we expect the market to remain volatile.
The criteria for holding stocks in the portfolio continue to include the ability
to grow revenues without price increases, global leadership positions and low
production costs. Certainly many companies in the technology sector meet these
criteria.
Recent appreciation in the Portfolio's technology holdings and modest relative
valuations in many non-technology stocks argue for a balanced, diversified
investment approach. In this regard, the recovery now underway in Europe and
Asia is likely to produce investment opportunities driven by broad-based profit
growth, particularly for multinational companies. Interestingly, this group now
includes the financial services sector, which may benefit from increased merger
and acquisition activity in Europe and from industry consolidation in Japan and
Europe. Although rising interest rates create an uncomfortable environment for
financial stocks, current multiples are at levels which prevailed during the
1997 and 1998 global crises despite earnings growth of 15-20% for many of these
companies. Consumer services remain the Portfolio's second important sector
position (19.3%) with holdings primarily in retail and media.
<TABLE>
<CAPTION>
TOP FIVE SECTORS* 1/31/00 CHARACTERISTICS* 1/31/00
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
Technology 32.6% Net Assets ($mm) $432.4
Consumer Services 19.3 Price/Earnings Ratio - 2000 28.0x
Financial Services 13.9 Price/Book Ratio 6.8x
Healthcare 12.0 Number of Equity Securities 49
Capital Goods 4.8 ADRs, % of Portfolio 3.1%
Consumer Staples 4.8 Stocks 99.9%
- --------------------------------------------------------------------------------------
Total 87.4
</TABLE>
<TABLE>
<CAPTION>
TOP TEN STOCKS* 1/31/00
<S> <C>
- -------------------------------------------------------
Cisco Systems Inc. 5.0%
Intel Corp. 4.6
Microsoft Corp. 4.4
Citigroup, Inc. 4.0
General Electric Co. 3.9
Tyco International Ltd. 3.9
AT&T Liberty Media Corp. 3.8
Solectron Corp. 3.6
Schering-Plough Corp. 3.6
Dell Computer Corp. 3.3
- -------------------------------------------------------
Total 40.1
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
17
<PAGE>
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
ADVISERS: Brandywine Asset Management, Inc. and Ariel Capital Management, Inc.
PORTFOLIO MANAGERS: Henry Otto and Steve Tonkovich of Brandywine; Eric T.
McKissack of Ariel
OBJECTIVE: Capital appreciation
INVESTMENT PROCESS: The Portfolio invests primarily in equity securities that
are believed to be undervalued or overlooked in the marketplace and that have
market capitalizations of less than $4.0 billion at the time of purchase.
Brandywine and Ariel each manage a portion of the Portfolio. Brandywine starts
with quantitative analysis that focuses on stocks with low price/earnings (P/E)
ratios. Brandywine then uses fundamental analysis to exclude stocks based on
earnings adjustments that raise P/E above the target range, pre-announced
earnings changes that when formally reported will raise P/E, strong recent price
gains and severe or sudden fundamental deterioration. Ariel seeks to identify
companies in consistent industries with distinct market niches and excellent
management teams. Ariel defines value stocks generally as those that have low
P/Es based on forward earnings and that trade at significant discounts to the
private market value that Ariel calculates for each stock.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
SINCE INCEPTION
6 MONTHS 1 YEAR 3 YEARS 8/24/95
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
With PACE program fee DEG. -15.19% -8.75% 1.80% 6.20%
Without PACE program fee -14.55% -7.37% 3.34% 7.81%
Russell 2500 Value Index -7.10% 0.15% 7.37% 11.80%
Lipper Median 4.74% 1.61% 4.16% 9.44%
- ----------------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Small/Medium Company Value Equity
Investments versus the Russell 2500 Value Index and the Lipper Small-Cap Value
Funds Median. It is important to note that PACE Small/Medium Company Value
Equity Investments is a professionally managed portfolio while the Index is not
available for investment and is unmanaged. The comparison is shown for
illustrative purposes only.
ADVISERS' COMMENTS
BRANDYWINE ASSET MANAGEMENT
Overall, the U.S. equity markets surged higher in the last six months, led by
extraordinary returns in the technology sector. Interest rates continued to
rise, with the U.S. long bond approaching a yield of 6.5% by the end of 1999, up
from 5.0% as the year started. Despite this rate increase, strong consumer
confidence and investor optimism about technology spending, particularly on
Internet and wireless communication infrastructure, drove market indices to new
highs. The market's breadth was very weak and market strength was concentrated
in growth stocks, and value lagged due to investor disinterest. This market
environment also can be distinguished by its volatility. The impact of this
volatility was seen in the second quarter of 1999, when our small cap stocks
soared by over 20%, only to give most, if not all, of that back in the third and
fourth quarters.
The technology sector accounted for most of the Portfolio's underperformance
versus its benchmark. Our disciplined value approach has kept our portfolios
underweighted in technology stocks given their steep current valuations, yet
investors have had a nearly insatiable appetite for these stocks. Because,
historically, companies that lost money have had the worst returns, we exclude
these stocks from the Portfolio. However, stocks with no earnings were among the
strongest performers in the period. The Portfolio's healthcare investments were
the other major source of poor
18
<PAGE>
performance relative to the benchmarks. Although we had only a small weighting
in hospitals, HMOs, nursing homes and rehabilitation centers, the stocks dropped
dramatically due to radical changes in Medicare reimbursement. These stocks
rallied late in the quarter as Congress passed helpful regulatory changes.
For the six-month period ended January 31, 2000, oil services companies were
among the Portfolio's strongest contributors to performance. When oil prices
fell to $12 per barrel late in 1998, these stock prices also fell, and we raised
our holdings in the group. As oil prices rose, these stocks rallied
dramatically. The retail and consumer product sectors also provided a positive
contribution to the Portfolio as strong consumer spending helped these stocks.
Despite investor concerns about the economy's sustainability, continued economic
growth also helped the Portfolio's cyclical holdings in trucking, steel,
chemicals and textiles.
Prices of small cap value stocks continue to lag the rest of the U.S. equity
market. The valuation spread between small cap value and growth, as well as
small and large stocks, stands at unprecedented levels. We have identified
several potential catalysts for the realization of the potential available in
small cap value stocks. First, any decline in the Internet euphoria followed by
a more realistic examination of stock prices relative to fundamental results
could benefit our style. Second, the dramatic rise in mergers, acquisitions and
stock buybacks among the Portfolio's holdings indicate that corporate
decision-makers confirm that these stocks' business fundamentals do not justify
their current valuation discounts. Finally, we believe global economic
stabilization and recovery is likely to benefit the Portfolio's stocks.
ARIEL CAPITAL MANAGEMENT
Like so many of our value peers, we have been frustrated in recent months by
the protracted weakness in the stock prices of high quality mid-cap value issues
during a time when their fledgling aggressive growth counterparts have continued
to scale new heights. Against this backdrop--some say the biggest performance
differential ever between growth and value--we are disappointed but not
discouraged. The cornerstone of Ariel's investment philosophy is a basic belief
that a portfolio comprised of stocks of "unglamorous" but solidly established
medium-sized companies can grow with far less volatility than a portfolio filled
with new, "emerging" growth stocks with uncertain futures, selling at very high
prices.
The Portfolio was broadly hurt by the marked underperformance of value in a
growth-dominated stock market. Our avoidance of the highly volatile sectors of
the market penalized our returns over the past six months. This is most
evidenced by our lack of investment in the boom and bust technology sector,
whose recent boom continues to hold the market up almost single-handedly. Beyond
this difficult investment climate, some Stock-specific issues are worth noting.
For example, shares of Central Newspapers (2.0%)* and Lee Enterprises (2.1%)
fell amid concerns of rising newsprint costs and the threat the Internet may
pose to these businesses. However, we believe both of these companies will
continue to benefit from the growth in Internet-related advertising, as well as
the increased political advertising that should accompany the 2000 election
cycle.
We have also used this period of depressed valuations to selectively add to
positions in several Portfolio holdings. For example, we have been increasing
our exposure to Hasbro (2.1%), the toy manufacturer. Although the company has
met or exceeded analyst expectations in each of the past five quarters, the
stock has slumped in sympathy to problems at Mattel. This market has also
enabled us to find new values, including SunGard Data Systems (0.7%), which
specializes in proprietary investment support systems and comprehensive
computer-disaster recovery services.
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
19
<PAGE>
And so, Wall Street's growth stock obsession leaves us both resolved and
encouraged. Just as we read in a recent issue of Forbes, "Comfort isn't what
delivers investment return. It is doubt, skepticism, and demonstrated
underperformance." With these three criteria undeniably in place, we believe
today's investment environment is brimming with opportunity for value's
comeback.
<TABLE>
<CAPTION>
CHARACTERISTICS* TOP FIVE SECTORS*
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
Price/Earnings Ratio 7.6x Consumer Cyclical 37.3%
Price/Book Ratio 0.96x Financial Services 15.6
Dividend Yield 1.64% Consumer Non-Cyclical 9.1
Net Assets ($mm) $196.2 Technology 7.6
Number of Securities 621 Basic Materials 5.8
-----------------------------------------
Stocks 92.8% Total 75.4
Cash 7.2%
- --------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOP 10 STOCKS* SECTOR PORTFOLIO
<S> <C> <C>
- --------------------------------------------------------------------------------------------------------------
Sybron International Corp. Healthcare 2.2%
MBIA, Inc. Financial Services 2.2
Rouse Co. Consumer Cyclical 2.1
Houghton Mifflin Co. Consumer Cyclical 2.1
Hasbro, Inc. Consumer Cyclical 2.1
Lee Enterprises Inc. Consumer Cyclical 2.1
Herman Miller Inc. Consumer Cyclical 2.1
Central Newspapers Inc. Consumer Cyclical 2.0
McCormick & Co. Inc. Consumer Non-Cyclical 1.9
CenturyTel, Inc. Utilities 1.9
- --------------------------------------------------------------------------------------------------------------
Total 20.7
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
20
<PAGE>
PACE SMALL/MEDIUM COMPANY GROWTH EQUITY INVESTMENTS
ADVISER: Delaware Management Company, Inc.
PORTFOLIO MANAGER: Gerald S. Frey
OBJECTIVE: Capital appreciation
INVESTMENT PROCESS: The Portfolio invests primarily in stocks of "emerging
growth" companies that are believed to have potential for high future earnings
growth relative to the overall market and that have market capitalizations of
less than $4.0 billion at the time of purchase. Up to 5% of the total assets may
be invested in U.S. dollar-denominated foreign securities. The adviser employs a
bottom-up, fundamental analysis to identify companies that have substantially
above average earnings growth because of management changes, new products,
growth of established products or structural changes in the economy.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
SINCE INCEPTION CURRENT MANAGER
6 MONTHS 1 YEAR 3 YEARS 8/24/95 SINCE 12/17/96
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
With PACE program fee DEG. 37.78% 64.13% 30.55% 21.69% 32.17%
Without PACE program fee 38.82% 66.62% 32.52% 23.53% 35.02%
Russell 2500 Growth Index 36.57% 50.27% 21.11% 19.39% 21.64%
Lipper Median 47.12% 55.85% 27.92% 23.68% 29.35%
- ----------------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE Small/Medium Company Growth Equity
Investments versus the Russell 2500 Growth Index and the Lipper Mid-Cap Growth
Funds Median. It is important to note that PACE Small/Medium Company Growth
Equity Investments is a professionally managed portfolio while the Index is not
available for investment and is unmanaged. The comparison is shown for
illustrative purposes only.
ADVISER'S COMMENTS
The major indexes posted healthy numbers for the six months ended January 31,
2000:
- the Dow Jones Industrial Average was up 3.50%
- the S&P 500 Index was up 5.58%
- the Russell 2000 Index was up 12.25%
- the NASDAQ composite was up 49.34%, a gain that lifted it past 4000 and into
record territory during the last week of 1999
Consumer confidence, soaring to its second highest all-time level, was helped
by positive feelings about low inflation and the nation's strong job market.
Accordingly, retail spending also rose during the period. However, high consumer
confidence and high retail spending prompted the Federal Reserve to raise
interest rates in February 2000.
We anticipate that investor interest in small- and mid-cap stocks will
continue to grow in the months ahead. As we saw during the period, small-cap
stocks are now keeping pace (or better) with large-cap issues, as measured by
the
21
<PAGE>
returns of the Russell 2000 and S&P 500 indices (see bullet list). We continue
to believe small-cap stocks are an important part of an investor's overall asset
allocation policy and offer the opportunity for investors to diversify their
portfolios.
<TABLE>
<CAPTION>
CHARACTERISTICS* TOP FIVE SECTORS*
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Price/Earnings Ratio 34.39x Technology 38.2%
Price/Book Ratio 6.63x Consumer Cyclical 28.4
Dividend Yield 0.82% Capital Goods 10.1
Net Assets ($mm) $ 303.1 Utilities 9.4
Number of Securities 86 Healthcare 5.6
-----------------------------------------
Stocks 98.0% Total 91.7
Cash 2.0%
- ----------------------------------------------------------------------------------
</TABLE>
The Portfolio tracked its benchmark, the Russell 2500 Growth Index, for the
period. Our largest sector weighting remains in technology (38.2%), with
overweightings in consumer cyclical (28.4%) and capital goods (10.1%) -- and an
underweighting in healthcare (5.6%) relative to the Index. Although the narrow
market frustrated many investors this year, the participation in market advances
broadened to small-cap issues, which was very beneficial to our style. In fact,
as a result of price appreciation, we decreased the weightings in a few of our
technology holdings such as Gemstar Group (4.4%), Veritas Software (4.8%) and
PMC Sierra (3.8%) that had grown above target levels.
Our winners for the period included Applied Micro Circuits (5.1%), Bindview
Development (1.7%) and Radio One (1.7%), each of which appreciated
significantly. Conversely, we removed Consolidated Graphics and HI/FN Inc., as
both companies announced disappointing earnings. We believe meeting earnings
estimates will be crucial to success in 2000. Our focus has always been--and
will remain--owning those small-cap companies we feel will meet or exceed
current earnings estimates.
<TABLE>
<CAPTION>
TOP 10 HOLDINGS AS OF 1/31/00 SECTOR % PORTFOLIO
<S> <C> <C>
- --------------------------------------------------------------------------------------------------------------
Applied Micro Circuits Corp. Technology 5.1%
Network Appliance Inc. Technology 4.9
Veritas Software Co. Technology 4.8
Micrel Inc. Technology 4.7
Gemstar Group Ltd. Technology 4.4
Nextlink Communications Inc. Utilities 4.0
PMC Sierra Inc. Technology 3.8
Dollar Tree Stores Inc. Consumer Nondurable 2.8
Profit Recovery Group International Inc. Technology 2.3
Pinnacle Holdings Inc. Technology 2.2
- --------------------------------------------------------------------------------------------------------------
Total 38.9
</TABLE>
As a disciplined small-cap growth manager, we only buy stocks that, in our
opinion, have substantially above-average growth expectations. We define growth
companies as those with sustainable high growth in sales, profitability and
earnings. In this attractive landscape for earnings estimates growth, we are
searching for small-cap companies that are selling at discounts to our projected
earnings growth, have a solid market position within their industry and have
investor-friendly management with demonstrated ability to add value through
sales and earnings growth and acquisitions.
We continue to favor the service sectors and technology. We have decreased our
financial weighting and continue to deemphasize healthcare and energy. We
continue to emphasize quality companies with strong fundamentals, solid business
plans and good market presence, while we cull those companies we believe may
miss earnings expectations.
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
22
<PAGE>
PACE INTERNATIONAL EQUITY INVESTMENTS
ADVISER: Martin Currie Inc.
PORTFOLIO MANAGER: Team led by James Fairweather
OBJECTIVE: Capital appreciation
INVESTMENT PROCESS: The Portfolio invests primarily in stocks of companies that
are domiciled in developed foreign countries and principally traded in Japanese,
European, Pacific and Australian securities markets or traded in U.S. securities
markets. Up to 10% of the Portfolio may be invested in emerging markets. A large
part of the Portfolio's investments are usually denominated in foreign
currencies. 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 settlement system.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEARS SINCE INCEPTION 8/24/95
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
With PACE program fee DEG. 17.84% 24.88% 16.39% 13.18%
Without PACE program fee 18.72% 26.77% 18.15% 14.89%
MSCI EAFE Index 11.19% 19.56% 14.90% 12.06%
Lipper Median 17.70% 26.99% 14.96% 13.76%
- ----------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE International Equity Investments
versus the MSCI EAFE Index and the Lipper International Equity Funds Median. It
is important to note that PACE International Equity Investments is a
professionally managed portfolio while the Index is not available for investment
and is unmanaged. The comparison is shown for illustrative purposes only.
ADVISER'S COMMENTS
The Portfolio outperformed the MSCI EAFE Index for the six months ended
January 31, 2000. The fourth quarter of 1999 was particularly good for EAFE,
with recovery in economic forecasts for the Pacific driving all markets strongly
ahead. We added value at both asset allocation (overweight Pacific, position in
smaller markets at the expense of pan-European) and at the stock level in most
markets. Telecoms, technology and media stocks are well represented. Corporate
restructuring is a further common theme in most markets and we have participated
in this also.
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES* PORTFOLIO INDEX TOP FIVE SECTORS* PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Japan 29.1% 28.1% Consumer Goods and Services 46.2%
France 14.5 10.3 Information Technology 15.0
United Kingdom 12.2 18.5 Financial Services 14.9
Germany 6.5 10.8 General Industrials 10.3
Italy 4.8 5.4 Basic Industries 7.2
- -----------------------------------------------------------------------------------------------
Total 67.1 73.1 Total 93.6
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
23
<PAGE>
<TABLE>
<CAPTION>
REGIONAL ALLOCATION* PORTFOLIO INDEX CHARACTERISTICS*
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Europe 54.3% 66.0% Net Assets ($mm) $253.6
Asia 37.6 34.0 Number of Securities 129
Emerging Markets 5.2 0.0 Equities 96.2%
Cash 2.9 0.0 Preferred Stock/Convertible Bonds 0.9%
- -------------------------------------------------------------------------------------------------
Total 100.0 100.0
</TABLE>
OUTLOOK AND PORTFOLIO POSITIONING
After a period of very strong returns from the EAFE index, driven by recovery
in the Pacific and smaller markets, fears of higher U.S. interest rates have
caused profit taking in 2000. We remain confident that the recovery in profit
momentum will push Japan, Asia and selective smaller markets forward this year.
With European economic growth on an upward trend, this region is looking more
attractive after a period of relative underperformance.
The Portfolio was overweighted in Japan and Asia over much of 1999 at the
expense of the UK and Europe. We also favored selective smaller markets (such as
Mexico, Brazil, India, Korea, Egypt, Israel and South Africa), as commodity
prices rose, currencies stabilized and interest rates fell. The next move is
likely to be a reduction in Japan for reinvestment in Europe.
<TABLE>
<CAPTION>
TOP TEN STOCKS* COUNTRY % PORTFOLIO
<S> <C> <C>
- ----------------------------------------------------------------------------
NTT Mobile Communication Networks Japan 3.6%
Nokia Finland 2.6
Mannesmann Germany 2.5
Ericsson Sweden 2.5
Sony Japan 2.4
Vivendi France 2.3
VNU Netherlands 2.2
Total Fina France 2.2
Rohm Japan 2.1
Shin-Etsu Chemical Japan 2.0
- ----------------------------------------------------------------------------
Total 24.4
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
24
<PAGE>
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
ADVISER: Schroder Investment Management North America Inc.
PORTFOLIO MANAGERS: John Troiano, Heather Crighton and Mark Bridgeman
OBJECTIVE: Capital Appreciation
INVESTMENT PROCESS: The Portfolio invests primarily in stocks of companies
domiciled in emerging market countries. The adviser's network of regional
specialists and analysts in 24 countries supports an intensive program of
proprietary emerging markets research. Schroder uses its proprietary research
network to identify attractively valued companies in emerging markets that it
believes can leverage off the growth opportunities in these faster growing
economies.
PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS, PERIODS ENDED 1/31/00
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEARS SINCE INCEPTION 8/24/95
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
With PACE program fee DEG. 18.65% 56.28% 1.37% 3.03%
Without PACE program fee 19.55% 58.65% 2.90% 4.59%
MSCI EMF Index 23.03% 70.14% 3.45% 3.22%
Lipper Median 26.66% 68.92% 2.17% 4.55%
- ----------------------------------------------------------------------------------------------------
</TABLE>
DEG. The maximum annual PACE program fee is 1.5% of the value of PACE assets.
Past performance does not predict future performance. The return and principal
value of an investment will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Performance
results assume reinvestment of all dividends and capital gains. Total returns
for periods less than one year are not annualized.
The table depicts the performance of PACE International Emerging Markets
Equity Investments versus the MSCI Emerging Markets Free Index and the Lipper
Emerging Markets Funds Median. It is important to note that PACE International
Emerging Markets Equity Investments is a professionally managed portfolio while
the Index is not available for investment and is unmanaged. The comparison is
shown for illustrative purposes only.
ADVISER'S COMMENTS
The Portfolio underperformed the MSCI EMF Index for the semiannual period
ended January 31, 2000. Stock selection was the primary reason for this
underperformance, particularly in Europe, Mid East and Africa (EMEA). The
Portfolio's exposure to the Turkish banking sector within this region was the
main detractor. In addition, Indian stock selection hurt performance where
Portfolio holdings within the computer software industry did not see the same
dramatic increases as those in the Index, mainly during the month of January.
Country weights offset a portion of this underperformance with positive returns
coming from both the EMEA region and Latin America (see table below).
<TABLE>
<CAPTION>
CHARACTERISTICS* REGIONAL ALLOCATION*
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
Net Assets ($mm) $92.0 Asia 42.6%
Number of Securities 209 Europe/Mid East/Africa 26.9
Equities** 100.0% Latin America 30.5
-----------------------------------------
Total 100.0
- -------------------------------------------------------------------------------------------
</TABLE>
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
** Common and preferred stocks, warrants and rights.
25
<PAGE>
The Portfolio also suffered versus its Lipper peer group for the six-month
period, for what we believe are some of the same reasons stated above. During
the period, the Portfolio did benefit from its exposure to Korea (13.0%) where
holdings are tilted towards technology stocks and the local economy has
benefited from higher export growth and corporate restructuring.
<TABLE>
<CAPTION>
TOP FIVE
TOP TEN STOCKS* COUNTRY* % PORTFOLIO COUNTRIES* % PORTFOLIO
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
United Micro Electronics Taiwan 4.9% Taiwan 13.3%
Samsung Electronics Co. Korea 4.8 Korea 13.0
Telefonos de Mexico, S.A. de C.V. ADR Mexico 4.6 Mexico 12.7
Mahanagar Tele Nigam India 1.5 Brazil 12.3
Korea Electric Power Corporation Korea 1.5 India 8.9
------------------------------
Grupo Televisa S.A. de C.V. GDS Mexico 1.3 Total 60.2
Yapi Ve Kredi Banksai A.S. Turkey 1.3
Far East Textile Taiwan 1.3
Acer Inc. Taiwan 1.3
China Trust Company Taiwan 1.3
- --------------------------------------------------------------------------------------------------
Total 23.8
</TABLE>
Although management remains positive on the prospects for Asia, towards
year-end we began increasing exposure to Latin America as we believe that Latin
America, in particular the larger markets of Brazil and Mexico, should benefit
more from stronger economic growth than many other emerging markets.
The outlook for 2000 continues to depend to some extent on the global economic
and financial environment. The good news is that the global economic recovery is
looking more balanced and Y2K concerns have abated. In addition, political
uncertainties and policy weakness within certain emerging markets have
diminished, which should allow the better economic fundamentals and
strengthening commodity prices to surface. The main risk remains the United
States. We anticipate that emerging markets will find it hard to flourish if
there are any unexpected events in the U.S., particularly if concerns about
inflation reemerge or interest rates rise above current expectations.
* Weightings represent percentages of portfolio assets as of January 31, 2000.
The Portfolio is actively managed and all holdings are subject to change.
26
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MONEY MARKET INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- ------------------------ ---------------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--9.65%
$1,000 Federal Home Loan Bank............................. 02/01/00 6.059%* $ 999,912
4,700 Student Loan Marketing Association................. 02/01/00 to 02/25/00 5.560 to 6.199* 4,698,926
-----------
Total U.S. Government Agency Obligations (cost--$5,698,838)... 5,698,838
-----------
BANK NOTES--2.71%
DOMESTIC--2.71%
300 First National Bank of Chicago N. A................ 03/15/00 5.180 299,980
700 First Tennessee Bank N. A. Memphis................. 02/01/00 6.069* 700,000
300 First Tennessee Bank N. A. Memphis................. 03/08/00 5.210 300,000
300 LaSalle National Bank.............................. 07/14/00 5.690 300,013
-----------
Total Domestic Bank Notes (cost--$1,599,993).................. 1,599,993
-----------
CERTIFICATES OF DEPOSIT--8.46%
YANKEE--8.46%
300 Bayerische Hypotheken-und Wechsel-Bank............. 04/28/00 5.150 299,965
1,100 National Westminster Bank PLC...................... 07/03/00 5.530 1,099,023
2,000 Societe Generale................................... 04/03/00 5.830 2,000,068
1,000 Svenska Handelsbanken.............................. 02/22/00 to 05/22/00 5.100 to 5.280 999,935
600 Westpac Banking Corp............................... 03/17/00 to 03/31/00 5.165 to 5.175 599,984
-----------
Total Yankee Certificates of Deposit (cost--$4,998,975)....... 4,998,975
-----------
COMMERCIAL [email protected]%
ASSET BACKED-BANKING--10.13%
1,000 Atlantis One Funding Corp.......................... 02/10/00 5.890 998,528
2,000 Centric Capital Corp............................... 02/29/00 5.700 1,991,133
3,000 Woodstreet Funding Corp............................ 02/14/00 to 02/15/00 5.700 to 5.870 2,993,601
-----------
5,983,262
-----------
ASSET BACKED-MISCELLANEOUS--18.66%
500 Asset Securitization Cooperative Corp.............. 02/14/00 5.831* 500,000
2,338 Enterprise Funding Corp............................ 02/01/00 to 02/03/00 5.680 to 5.950 2,337,656
3,000 Falcon Asset Securitization Corp................... 03/07/00 to 03/09/00 5.750 to 5.770 2,982,549
2,220 Preferred Receivables Funding Corp................. 02/08/00 5.880 2,217,462
2,000 Quincy Capital Corp................................ 03/08/00 5.750 1,988,500
1,000 Variable Funding Capital Corp...................... 03/02/00 5.750 995,208
-----------
11,021,375
-----------
AUTO & TRUCK--5.57%
1,448 Ford Motor Credit Corp............................. 02/03/00 5.520 1,447,556
1,843 General Motors Acceptance Corp..................... 02/01/00 5.780 1,843,000
-----------
3,290,556
-----------
BANKING-DOMESTIC--6.28%
1,000 Fortis Funding LLC................................. 03/06/00 5.910 994,418
2,719 J.P. Morgan & Company, Inc......................... 02/03/00 to 02/17/00 5.570 to 5.670 2,716,569
-----------
3,710,987
-----------
BANKING-FOREIGN--3.62%
1,046 Banque et Caisse d'Epargne de L'Etat............... 03/06/00 5.750 1,040,320
1,100 Nationwide Building Society........................ 02/07/00 5.700 1,098,955
-----------
2,139,275
-----------
</TABLE>
27
<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>
COMMERCIAL PAPER@--(CONCLUDED)
BUSINESS SERVICES--3.39%
$2,000 Block Financial Corp............................... 02/01/00 5.880% $ 2,000,000
-----------
ELECTRONICS--3.38%
2,000 Emerson Electric Co................................ 02/18/00 5.600 1,994,711
-----------
FINANCE-CONSUMER--5.08%
3,000 Household Finance Corp............................. 02/01/00 5.800 3,000,000
-----------
FINANCE-SUBSIDIARY--2.73%
1,612 National Australia Funding (Delaware) Inc.......... 02/01/00 5.970 1,612,000
-----------
TELECOMMUNICATIONS--5.06%
2,000 American Telephone & Telegraph..................... 03/02/00 5.720 1,990,467
1,000 Bellsouth Capital Funding Corp..................... 02/25/00 5.830 996,113
-----------
2,986,580
-----------
TRANSPORTATION SERVICES--4.81%
2,840 United Parcel Service.............................. 02/04/00 5.500 2,838,698
-----------
UTILITY-ELECTRIC--3.73%
2,203 Southern Co........................................ 02/10/00 5.900 2,199,751
-----------
Total Commercial Paper (cost--$42,777,195).................... 42,777,195
-----------
SHORT-TERM CORPORATE OBLIGATIONS--7.08%
ASSET BACKED-FINANCE--3.39%
2,000 Beta Finance....................................... 02/01/00 5.780* 2,000,000
-----------
AUTO & TRUCK--1.15%
675 Ford Motor Credit Corp............................. 08/15/00 6.850 678,791
-----------
FINANCE-DIVERSIFIED--2.54%
1,500 Associates Corp. of North America.................. 02/29/00 5.759* 1,499,632
-----------
Total Short-Term Corporate Obligations (cost--$4,178,423)..... 4,178,423
-----------
</TABLE>
<TABLE>
<C> <S> <C>
MONEY MARKET FUND--2.84%
1,675 Liquid Assets Portfolio (cost--$1,675,330).................. 1,675,330
-----------
60,928,754
Total Investments (cost--$60,928,754)--103.18%.........................
Liabilities in excess of other assets--(3.18)%......................... (1,877,225)
-----------
Net Assets--100.00%.................................................... $59,051,529
===========
</TABLE>
- -----------------
* Variable rate security--maturity dates reflect earlier of reset dates or
maturity dates. The interest rates shown are current rates as of
January 31, 2000 and reset periodically.
@ Interest rates shown are discount rates at date of purchase.
Weighted Average Maturity -- 35 days
See accompanying notes to financial statements
28
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- ----------------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--11.06%
$ 5,200 Federal Home Loan Mortgage Discount Notes................ 02/22/00 5.640% $ 5,183,135
350 U.S. Treasury Bills...................................... 02/17/00 4.950 349,208
15,121 U.S. Treasury Inflation Index Notes...................... 07/15/02 to 01/15/08 3.375 to 3.625 14,751,321
2,100 U.S. Treasury Notes...................................... 11/15/08 4.750 1,827,657
------------
Total U.S. Government and Agency Obligations (cost--$22,087,222).... 22,111,321
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--24.54%
1,000 GNMA..................................................... 02/20/30 6.240 1,000,000
2,888 GNMA..................................................... 02/10/00 6.281 2,890,691
4,797 GNMA..................................................... 11/16/29 6.330 4,766,701
4,760 GNMA..................................................... 01/20/18 to 02/20/27 6.375 4,789,048
4,988 GNMA..................................................... 07/20/25 to 09/20/26 6.750 5,012,813
3,094 GNMA..................................................... 10/15/40 6.800 3,114,822
8,341 GNMA..................................................... 10/15/40 to 11/20/27 7.000 8,303,857
4,723 GNMA..................................................... 11/20/21 to 12/20/27 7.125 4,755,174
1,497 GNMA..................................................... 08/15/21 7.470 1,453,241
616 GNMA..................................................... 07/15/02 to 09/30/29 7.500 617,743
574 GNMA..................................................... 12/15/07 to 08/15/09 8.000 584,020
3,541 GNMA..................................................... 06/20/16 8.500 3,586,090
385 GNMA II ARM.............................................. 04/20/18 to 01/20/28 6.375 386,818
1,055 GNMA II ARM.............................................. 10/20/29 7.000 1,057,698
1,500 GNMA Project Loan PT Wexford On The Green................ 10/15/40 7.000 157,998
1,622 GNMA Project Loan River Valley Nursing................... 09/30/29 7.500 1,610,137
5,000 GNMA TBA................................................. TBA 6.500 4,967,188
------------
Total Government National Mortgage Association Certificates
(cost--$49,319,235)............................................... 49,054,039
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES--27.07%
261 FHLMC.................................................... 08/01/01 6.500 258,574
4,594 FHLMC.................................................... 11/01/02 to 09/01/04 7.000 4,544,823
943 FHLMC.................................................... 05/01/21 7.450 991,278
853 FHLMC.................................................... 10/01/17 to 11/01/24 7.500 835,972
983 FHLMC.................................................... 03/01/13 to 02/01/25 8.000 979,083
426 FHLMC.................................................... 04/01/04 8.500 432,763
2,062 FHLMC ARM................................................ 11/01/28 6.346 2,014,668
45,200 FHLMC TBA................................................ TBA 7.500 44,055,897
------------
Total Federal Home Loan Mortgage Corporation Certificates
(cost--$54,857,189)............................................... 54,113,058
------------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES--9.51%
14,813 FHA Project Notes........................................ 05/01/17 to 02/01/29 6.896 to 7.450 13,708,760
5,263 FHA Project Western Hills................................ 11/01/27 8.500 5,306,324
------------
Total Federal Housing Administration Certificates
(cost--$20,240,890)............................................... 19,015,084
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--18.76%
3,764 FNMA..................................................... 05/01/03 6.500 3,685,712
1,657 FNMA..................................................... 03/01/04 7.000 1,640,349
3,627 FNMA..................................................... 01/01/07 7.250 3,653,900
2,468 FNMA..................................................... 10/01/26 to 11/01/26 7.500 2,414,402
6,026 FNMA..................................................... 07/01/25 to 10/01/29 8.000 5,998,629
6,821 FNMA..................................................... 11/01/02 to 09/01/27 8.500 6,943,631
</TABLE>
29
<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>
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--(CONCLUDED)
$ 1,239 FNMA..................................................... 10/01/19 to 02/01/26 9.000% $ 1,285,734
1,999 FNMA ARM................................................. 12/01/27 6.629 1,993,895
4,991 FNMA ARM................................................. 07/01/09 7.249 4,865,766
5,150 FNMA TBA................................................. TBA 7.500 5,014,812
------------
Total Federal National Mortgage Association Certificates
(cost--$38,143,485)............................................... 37,496,830
------------
COLLATERALIZED MORTGAGE OBLIGATIONS--37.52%
130 FHLMC GNMA REMIC Series 23, Class KZ..................... 11/25/23 6.500 110,528
475 FHLMC REMIC Series 159, Class H.......................... 09/15/21 4.500 423,983
679 FHLMC REMIC Series 185, Class E.......................... 08/15/06 9.000 675,649
2,350 FHLMC REMIC Series 1003, Class H......................... 10/15/20 6.185++ 2,388,814
4,569 FHLMC REMIC Series 1188, Class H......................... 12/15/20 7.500 4,581,247
2,444 FHLMC REMIC Series 1322, Class G......................... 02/15/07 7.500 2,451,729
316 FHLMC REMIC Series 1347, Class HC........................ 12/15/21 4.250 291,608
3,957 FHLMC REMIC Series 1361, Class D......................... 11/15/05 6.000 3,935,630
26 FHLMC REMIC Series 1425, Class E......................... 08/15/05 6.500 26,170
198 FHLMC REMIC Series 1489, Class F......................... 07/15/05 5.500 197,288
1,068 FHLMC REMIC Series 1502, Class PX........................ 04/15/23 7.000 942,899
590 FHLMC REMIC Series 1534, Class Z......................... 06/15/23 5.000 399,905
1,574 FHLMC REMIC Series 1542, Class Z......................... 07/15/23 7.000 1,416,237
3,304 FHLMC REMIC Series 1552, Class EA........................ 01/15/17 5.850 3,291,301
173 FHLMC REMIC Series 1573, Class PZ........................ 09/15/23 7.000 161,102
5,000 FHLMC REMIC Series 1627, Class PN(1)..................... 09/15/22 6.000 1,139,520
318 FHLMC REMIC Series 1640, Class F......................... 10/15/07 6.338++ 317,812
144 FHLMC REMIC Series 1658, Class GZ........................ 01/15/24 7.000 125,862
243 FHLMC REMIC Series 1661, Class PE........................ 11/15/06 6.000 242,119
968 FHLMC REMIC Series 1694, Class Z......................... 03/15/24 6.500 813,346
105 FHLMC REMIC Series 1775, Class Z......................... 03/15/25 8.500 108,295
3,085 FHLMC REMIC Series 1869, Class J......................... 12/15/24 8.000 3,125,529
1,262 FHLMC REMIC Series 1933, Class ZA........................ 02/15/27 8.000 1,251,121
1,814 FHLMC REMIC Series 1993 - 138, Class CL(1)............... 11/25/22 7.000 366,868
3,192 FHLMC REMIC Series 1997 - 67, Class CZ................... 02/18/07 6.250 3,174,615
9,763 FHLMC REMIC Series 2080, Class VK(1)..................... 09/15/05 6.500 1,461,003
92 FNMA REMIC Trust 1992 - 74, Class Z...................... 05/25/22 8.000 92,077
165 FNMA REMIC Trust 1992 - 129, Class L..................... 07/25/22 6.000 143,148
674 FNMA REMIC Trust 1992 - 207, Class U(1).................. 10/25/07 7.500 124,896
1,208 FNMA REMIC Trust 1993 - 37, Class PX..................... 03/25/23 7.000 1,034,269
449 FNMA REMIC Trust 1993 - 40, Class ZA..................... 12/25/23 6.500 366,231
145 FNMA REMIC Trust 1993 - 49, Class C...................... 04/25/10 6.000 11,150
3,000 FNMA REMIC Trust 1993 - 116, Class H(1).................. 07/25/22 7.000 572,190
4,554 FNMA REMIC Trust 1993 - 122, Class A..................... 09/25/20 6.500 4,508,806
71 FNMA REMIC Trust 1993 - 162, Class C..................... 08/25/23 3.000@ 69,231
324 FNMA REMIC Trust 1993 - 201, Class E..................... 12/25/15 5.500 322,255
44 FNMA REMIC Trust 1993 - 240, Class Z..................... 12/25/13 6.250 39,926
1,147 FNMA REMIC Trust 1993 - 250, Class DZ.................... 12/25/23 7.000 1,009,871
69 FNMA REMIC Trust 1993 - 250, Class Z..................... 12/25/23 7.000 63,220
75 FNMA REMIC Trust 1994 - 27, Class CZ..................... 02/25/24 6.500 64,320
1,651 FNMA REMIC Trust 1997 - 28, Class PB..................... 03/18/18 7.250 1,648,774
1,388 FNMA REMIC Trust 1998 - 44, Class IG(1).................. 07/18/16 6.500 243,918
850 FNMA REMIC Trust 1999 - 3, Class CZ...................... 02/25/14 6.000 688,394
1,048 FNMA REMIC Trust G92 - 40, Class ZC...................... 07/25/22 7.000 1,010,179
148 FNMA REMIC Trust G94 - 6, Class PJ....................... 05/17/24 8.000 151,495
2,958 Aames Mortgage Trust Series 1992 - 2, Class A............ 11/15/27 5.600 2,898,828
100 Bank of America Mortgage Securities Series 1999 - 5,
Class A-22............................................. 05/25/29 6.500 89,820
</TABLE>
30
<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>
COLLATERALIZED MORTGAGE OBLIGATIONS--(CONCLUDED)
$ 450 Bank of America Mortgage Securities Series 1999 - 8,
Class A-12............................................. 08/25/29 6.750% $ 412,475
362 Bear Stearns Mortgage Securities Inc. Series 1993 - 8,
Class A-5.............................................. 08/25/24 6.350 360,374
2,379 Bear Stearns Mortgage Securities Inc. Series 1996 - 4,
Class AI-1............................................. 09/25/27 8.125 2,381,398
1,750 Chase Mortgage Finance Corp. Series 1998, Class IA-8..... 08/25/28 6.750 1,575,522
1,000 Countrywide Home Loan Inc................................ 06/15/04 6.850 966,197
1,500 CWMBS Inc. Series 1998 - 13, Class A3.................... 12/25/28 6.500 1,331,835
1,500 CWMBS Inc. Series 1998 - 15, Class A8.................... 10/25/28 6.750 1,354,176
3,497 Farmer Mac. Series 2002 - Class AA1...................... 04/25/01 7.721 3,393,360
530 Green Tree Financial Corp. Series 1998, Class 2.......... 11/01/16 6.240 517,455
768 Headlands Mortgage Security Inc. REMIC Series 1997 - 1,
Class A, II............................................ 03/12/12 7.750 768,319
560 Headlands Mortgage Security Inc. REMIC Series 1997 - 2,
Class A, II............................................ 05/25/12 7.750 559,414
445 Headlands Mortgage Security Inc. REMIC Series 1997 - 4,
Class A, II............................................ 11/25/12 7.250 440,031
1,500 Headlands Mortgage Security Inc. REMIC Series 1998 - 1,
Class A, III........................................... 11/25/28 6.500 1,350,660
1,104 Merrill Lynch Mortgage Investors, Inc. Series 1999,
Class H1............................................... 03/20/17 6.210++ 1,097,487
1,954 Morgan Stanley Capital Inc. Series 1998 - HF1,
Class A1............................................... 01/15/07 6.190++ 1,849,104
1,646 PNC Mortgage Securities Corp. Series 1998 - 5,
Class 2A5.............................................. 11/25/28 6.750 1,513,076
2,500 PNC Mortgage Securities Corp. Series 1999 - 5,
Class 2A5.............................................. 07/25/29 6.750 2,294,350
440 Prudential Home Mortgage REMIC 1993 - 29, Class A8....... 08/25/08 6.750 419,362
1 Prudential Home Mortgage REMIC 1993 - 43, Class A1....... 10/25/23 5.400 697
1,365 Prudential Home Mortgage REMIC 1993 - 54, Class A19...... 01/25/24 6.500 1,166,490
1,500 Residential Funding Mortgage Securities Inc.
Series 1998 - S12, Class A6............................ 05/25/28 6.750 1,346,833
118 Resolution Trust Corp. REMIC Series 1992 - 3, Class A2
ARM.................................................... 09/25/19 6.412 117,714
1,211 Small Business Administration Series 1995 - 10,
Class I................................................ 03/01/05 7.750 1,218,882
------------
Total Collateralized Mortgage Obligations (cost--$76,793,712)....... 75,008,389
------------
STRIPPED MORTGAGE-BACKED SECURITIES--0.52%
921 FHLMC REMIC Series 1554, Class I(1)+++................... 08/15/08 6.500* 86,649
7 FNMA REMIC Trust 1992 - 142, Class KB(1)+++.............. 08/25/07 11.977 189,316
8 FNMA REMIC Trust 1992 - 157, Class JA(1)+++.............. 09/25/07 10.146 190,909
263 FNMA REMIC Trust 1993 - 137, Class PN(1)+++.............. 12/25/16 7.000* 1,033
186 FNMA REMIC Trust 1993 - 161, Class GC(1)++............... 02/25/23 3.381 117,737
1,169 FNMA REMIC Trust 1994 - 07, Class PK(1)+++............... 05/25/08 6.500* 70,062
1,430 FNMA REMIC Trust 1994 - 30, Class IA(1)+++............... 11/25/22 6.500* 173,432
5,979 CWMBS Inc. Series 1998 - 14, Class A2(1)+++.............. 12/25/13 0.500* 89,691
1,500 Firstplus Home Loan Owner Trust
Series 1998 - 5, Class A1(1)+++........................ 10/10/00 6.000* 57,422
4,000 Residential Funding Mortgage Securities Inc.
Series 1998 - H12, Class A6+++......................... 06/25/00 8.110* 63,750
------------
Total Stripped Mortgage-Backed Securities (cost--$845,953).......... 1,040,001
------------
ASSET BACKED SECURITIES--0.45%
900 Student Loan Marketing Association Series 1996 - 2,
Class A1 (cost--$897,836).............................. 10/25/04 6.192 896,963
------------
</TABLE>
31
<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>
AGENCY BACKED SECURITIES--3.82%
$ 998 Beneficial Home Equity Loan Trust........................ 04/28/26 6.158++% $ 1,014,777
2,000 Conseco Finance Home Loan Trust.......................... 06/15/24 9.520 1,921,900
16,000 Conseco Finance Securitizations(1)....................... 12/15/29 7.000 1,532,500
1,247 Oakwood Mortgage Investors Inc........................... 08/15/27 6.750 1,244,096
2,000 Student Loan Trust....................................... 10/27/25 5.298 1,926,820
------------
Total Agency Backed Notes (cost--$7,735,117)........................ 7,640,093
------------
CORPORATE OBLIGATIONS--1.95%
900 Dominion Resources MTN................................... 01/26/01 6.190 899,778
2,000 Lehman Brothers Holdings Inc. MTN........................ 04/02/02 6.904 2,007,564
1,000 Morgan Stanley Dean Witter............................... 01/28/02 6.165@ 999,650
------------
Total Corporate Obligations (cost--$3,907,646)...................... 3,906,992
------------
REPURCHASE AGREEMENT--0.92%
1,835 Repurchase Agreement dated 1/31/00 with State Street Bank
& Trust Co., collateralized by $1,920,000 U.S. Treasury
Notes, 6.250% due 02/15/03 (value--$1,876,994)
proceeds: $1,835,229 (cost--$1,835,000)................ 02/01/00 4.500 1,835,000
------------
Total Investments (cost--$276,663,285)--136.12%..................... 272,117,770
Liabilities in excess of other assets--(36.12)%..................... (72,210,245)
------------
Net Assets--100.00%................................................. $199,907,525
============
</TABLE>
- -----------------
++ Floating rate securities--The interest rates shown are the current rates
as of January 31, 2000.
++ 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) Illiquid securities representing 3.21% of net assets.
ARM Adjustable Rate Mortgage--The interest rates shown are the current rates
as of January 31, 2000.
MTN Medium Term Notes
REMIC Real Estate Mortgage Investment Conduit.
TBA To Be Assigned--Securities are purchased on a forward commitment with an
approximate principal amount (generally +/- 1.0%) and no definite
maturity date. The actual principal amount and maturity date will be
determined upon settlement when the specific mortgage pools are assigned.
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION
OPTIONS STRIKE PRICE DATE VALUE
- --------- ------------ --------------- ------
<C> <S> <C> <C> <C>
WRITTEN OPTIONS
350 Federal Home Loan Mortgage Corporation Calls...... $100 February 2000 $1,400
======
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF IN EXPIRATION UNREALIZED
CONTRACTS CONTRACTS TO RECEIVE EXCHANGE FOR DATE APPRECIATION
- --------- ------------------------------------------------------------ ------------- --------------- ------------
<C> <S> <C> <C> <C>
FUTURES CONTRACTS
275 U.S. 10 Year Treasury Notes................................. $ 25,953,125 March 2000 $ 115,466
=========
</TABLE>
See accompanying notes to financial statements
32
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERMEDIATE FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- ----------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--31.45%
4.250 to
$46,020 U.S. Treasury Notes (1) (cost--$45,715,230)........ 12/31/01 to 08/15/09 7.875% $ 43,947,498
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--1.62%
1,011 GNMA............................................... 10/20/27 to 11/20/27 6.125 1,016,225
898 GNMA............................................... 11/15/26 to 12/15/26 7.750 887,954
31 GNMA............................................... 11/20/01 8.500 30,884
156 GNMA............................................... 12/15/01 to 01/15/02 9.000 159,555
170 GNMA............................................... 07/15/04 to 09/15/04 9.500 176,512
------------
Total Government National Mortgage Association Certificates
(cost--$2,292,697).......................................... 2,271,130
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES--0.15%
85 FHLMC.............................................. 03/01/00 7.000 84,356
125 FHLMC.............................................. 06/01/02 8.000 125,974
------------
Total Federal Home Loan Mortgage Corporation Certificates
(cost--$211,504)............................................ 210,330
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--8.63%
1,493 FNMA............................................... 09/01/25 7.000 1,427,360
10,147 FNMA............................................... 06/01/10 to 09/01/29 7.500 9,918,564
571 FNMA............................................... 03/01/04 8.000 578,608
117 FNMA............................................... 09/01/07 13.000 129,141
------------
Total Federal National Mortgage Association Certificates
(cost--$12,405,434)......................................... 12,053,673
------------
COLLATERALIZED MORTGAGE OBLIGATIONS--11.32%
9 FDIC REMIC Trust Series 1994-C1, Class 2A2......... 09/25/25 7.850 9,361
999 FDIC REMIC Trust Series 1996-C1, Class 1A.......... 05/25/26 6.750 976,298
119 FHLMC Series 1497, Class O......................... 10/15/22 7.000 113,604
67 FHLMC Series 1588, Class TB........................ 06/15/23 6.500 64,858
4 FNMA REMIC Trust 1991-04, Class E.................. 09/25/05 8.250 4,353
412 FNMA REMIC Trust 1993-70, Class C.................. 03/25/18 6.900 410,173
1,189 BA Mortgage Securities Inc. Series 1997-2,
Class 1A5........................................ 10/25/27 7.250 1,139,202
678 CWMBS Inc. Series 1997-10, Class A4................ 02/25/28 6.612 664,667
1,347 DLJ Mortgage Acceptance Corp.
Series 1997-CF1, Class A1A....................... 05/15/06 7.400 1,332,806
964 Drexel Burnham Lambert Series H, Class 4........... 04/01/17 8.500 970,838
1,688 GMAC Commercial Mortgage Security Inc.
Series 1997-C2, Class A1......................... 12/15/04 6.451 1,606,104
1,307 LB Commercial Conduit Mortgage Trust
Series 1995-C2, Class A.......................... 08/25/04 7.202 1,298,394
228 Norwest Asset Securities Corp. Series 1997-5,
Class A2......................................... 04/25/12 7.000 226,936
198 PNC Mortgage Securities Corp. Series 1997-2,
Class A.......................................... 03/25/27 7.250 197,272
128 Residential Asset Security Mortgage Series 1997
Class A.......................................... 03/25/27 7.000 127,578
1,018 Resolution Trust Corp. Series 1994-C1, Class C..... 06/25/26 8.000 1,014,761
1,395 Resolution Trust Corp. Series 1995-C2, Class D..... 05/25/27 7.000 1,388,570
2,327 Sasco Commercial Mortgage Trust, Series 1998-C3A,
Class E.......................................... 06/25/01 6.563 2,290,402
986 Structured Asset Securities Corp. Series 1995-C4,
Class A2......................................... 06/25/26 6.363 986,968
1,000 Structured Asset Securities Corp. Series 1995-C4,
Class D.......................................... 06/25/26 7.000 995,156
------------
Total Collateralized Mortgage Obligations
(cost--$16,101,719)......................................... 15,818,301
------------
</TABLE>
33
<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>
CORPORATE DEBT--38.40%
AEROSPACE--0.35%
$ 500 Lockheed Martin Corp............................... 12/01/09 8.200% $ 491,866
------------
AIRLINES--0.12%
173 Continental Airlines Trust Series 1997-4, Class
4C............................................... 07/02/07 6.800 163,181
------------
AUTOMOTIVE--1.45%
750 Ford Motor Credit Corp............................. 02/28/02 6.500 737,586
1,225 Ford Motor Credit MTN.............................. 12/30/14 9.140 1,294,967
------------
2,032,553
------------
BANKS--8.02%
895 ABN Amro Bank NV................................... 05/31/05 7.250 876,011
910 BankBoston NA MTN.................................. 03/25/08 6.375 832,378
255 Capital One Bank................................... 02/03/00 6.660 255,000
258 Continental Bank NA................................ 04/01/01 12.500 272,894
740 First Bank Systems Inc............................. 05/01/05 7.625 739,472
1,430 First Union Corp................................... 11/01/04 6.950 1,380,009
735 First USA Bank MTN................................. 12/03/01 6.625 727,729
490 Mellon Bank NA..................................... 06/01/03 6.750 476,672
1,125 PNC Bank, NA....................................... 04/15/05 7.875 1,124,612
900 Security Pacific Corp. MTN......................... 07/01/03 9.800 953,272
500 Sovran Financial Corp.............................. 06/15/06 9.250 528,983
600 United States Bancorp MTN.......................... 05/15/04 6.000 568,083
1,050 Washington Mutual Inc.............................. 08/15/06 7.500 1,023,977
1,510 Wells Fargo & Co................................... 07/15/04 6.625 1,453,417
------------
11,212,509
------------
CHEMICALS--0.65%
960 Eastman Chemical Co................................ 01/15/04 6.375 905,025
------------
COMPUTER HARDWARE--1.43%
1,000 Sun Microsystems Inc............................... 08/15/04 7.350 984,978
1,100 Xerox Corp. MTN.................................... 12/15/03 5.250 1,006,987
------------
1,991,965
------------
COMPUTER SOFTWARE & SERVICES--1.15%
900 Computer Associates International Inc.............. 04/15/03 6.250 855,653
780 Oracle Corp........................................ 02/15/04 6.720 751,504
------------
1,607,157
------------
ENERGY--0.73%
1,090 Noram Energy Corp.................................. 11/01/03 6.375 1,024,322
------------
FINANCIAL SERVICES--6.22%
1,240 American Express Credit Corp....................... 08/10/00 6.250 1,201,652
1,400 Aristar Inc........................................ 09/01/04 7.375 1,373,939
625 Associates Corp. NA................................ 11/01/03 5.750 587,937
870 Beneficial Corp.................................... 12/15/04 6.810 839,044
635 Countrywide Funding Corp. MTN...................... 09/16/03 7.450 631,964
225 GATX Capital Corp.................................. 11/01/00 6.500 223,986
1,420 Heller Financial Inc. MTN.......................... 07/22/02 6.500 1,386,654
1,200 Household Finance Corp............................. 06/30/00 6.375 1,198,203
650 Mellon Financial Co................................ 11/15/03 5.750 608,435
660 U.S. West Capital Funding Inc...................... 07/15/02 6.125 638,304
------------
8,690,118
------------
</TABLE>
34
<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>
CORPORATE DEBT--(CONTINUED)
HOTELS & LODGING--0.68%
$ 1,000 Marriott International Inc......................... 11/15/03 6.625% $ 952,196
------------
INFORMATION & COMPUTER SERVICES--1.22%
1,400 Comdisco Inc....................................... 04/30/02 5.950 1,345,343
371 First Data Corp.................................... 04/01/03 6.625 359,674
------------
1,705,017
------------
INSURANCE--2.45%
700 Ace Ina Holding Inc................................ 08/15/06 8.300 698,109
955 Aetna Services Inc................................. 08/15/06 7.125 897,570
910 CNA Financial Corp................................. 04/15/05 6.500 844,399
1,010 Conseco Inc. MTN................................... 06/15/01 6.400 986,610
------------
3,426,688
------------
LEISURE--0.92%
965 Carnival Corp...................................... 04/15/08 6.150 874,520
430 Time Warner Entertainment Co. LP................... 09/01/08 7.250 412,197
------------
1,286,717
------------
METALS & MINING--0.14%
200 BHP Finance USA LTD................................ 12/01/02 7.875 198,927
------------
OIL & GAS--0.03%
38 Mobil Oil Corp..................................... 02/29/00 9.170 37,937
------------
RAILROADS--0.63%
297 Consolidated Rail Corp............................. 04/01/05 7.070 286,676
182 CSX Transportation Inc............................. 03/01/06 8.410 186,758
410 Norfolk Southern Corp.............................. 05/01/00 6.700 410,073
------------
883,507
------------
REAL ESTATE INVESTMENT TRUSTS--5.70%
715 Archstone Communities Trust MTN.................... 10/13/00 6.170 708,091
7.050 to
1,150 Corporate Property Investment Trust................ 04/01/03 to 08/15/04 7.750 1,106,887
410 Health Care Property Investments Inc............... 02/15/06 6.500 342,390
6.500 to
1,645 Kimco Realty Corp.................................. 10/01/03 to 11/14/05 6.830 1,551,333
1,000 Nationwide Health Property Inc..................... 09/18/01 7.000 968,010
950 New Plan Realty Trust Corp......................... 04/06/05 7.750 927,018
1355 Prologis Trust..................................... 07/15/06 7.050 1,265,135
400 Rouse Co........................................... 01/15/03 8.500 400,314
705 Summit Properties Partnership LP................... 10/05/00 6.710 699,664
------------
7,968,842
------------
RETAIL--2.32%
1,370 Dayton Hudson Corp................................. 03/01/06 9.250 1,399,741
885 JC Penney Inc...................................... 04/01/07 7.600 806,569
980 Sears Roebuck Acceptance Corp...................... 03/20/03 6.000 933,617
100 Wal-Mart Stores Inc................................ 06/29/11 8.875 103,375
------------
3,243,302
------------
TELECOMMUNICATIONS--1.97%
1,180 AT&T Corp.......................................... 03/15/04 5.625 1,105,174
450 Carolina Telephone & Telegraph Co.................. 05/01/03 6.125 429,148
</TABLE>
35
<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>
CORPORATE DEBT--(CONCLUDED)
TELECOMMUNICATIONS--(CONCLUDED)
$ 305 Lucent Technologies Inc............................ 07/15/06 7.250% $ 301,465
920 MCI Worldcom Inc................................... 04/01/04 7.550 919,441
------------
2,755,228
------------
UTILITIES--2.22%
700 New York State Electric & Gas Corp................. 05/01/20 9.875 733,564
780 Southern Investments PLC........................... 12/01/06 6.800 719,740
1,075 TXU Eastern Funding Co............................. 05/15/05 6.450 1,001,279
8.250 to
650 Virginia Electric & Power Co....................... 04/01/21 to 03/01/25 8.750 642,339
------------
3,096,922
------------
Total Corporate Debt (cost--$56,067,298)...................... 53,673,979
------------
ASSET BACKED SECURITIES--6.90%
720 Aames Mortgage Trust Series 1996-D, Class A1G...... 03/15/29 7.320 696,989
540 Amresco Residential Securities Mortgage Loan Trust
Series 1996-3, Class A6.......................... 11/25/24 7.875 540,907
1,970 California Infrastructure Series 1997-1,
Class A5......................................... 06/25/04 6.250 1,937,810
1,316 EMAC Trust Series 1998-1, Class 1A................. 07/15/03 6.110 1,274,424
23 EQCC Home Equity Loan Trust Series 1996,
Class A.......................................... 01/15/12 6.950 22,687
525 Green Tree Financial Corp. Series 1996-3,
Class A4......................................... 05/15/27 7.100 522,743
1,000 Ikon Receivables LLC Series 1999-1, Class A3....... 05/15/05 5.990 983,220
230 Money Store Home Equity Trust Series 1996-D,
Class A6......................................... 06/15/21 6.830 229,131
270 Money Store Home Equity Trust Series 1997-A,
Class A6......................................... 10/15/21 7.210 269,150
260 Money Store Home Equity Trust Series 1997-C,
Class AH5........................................ 02/15/15 6.590 258,089
373 NYCTL Trust Series 1998-2, Class A................. 07/25/06 7.980 370,725
8 Residential Asset Security Mortgage Pass Through
Series 1997-KS1, Class AI2....................... 04/25/28 7.070 8,244
1,000 Salomon Brothers Mortgage Secs VII Incorporated,
Series 1997-LB6, Class A4........................ 12/25/27 6.910 987,410
955 Team Fleet Financing Corp. Series 1998-2,
Class A.......................................... 07/25/02 6.070 936,646
600 UCFC Loan Trust Series 1996-B1, Class A7........... 09/15/27 8.200 602,812
------------
Total Asset Backed Securities (cost--$9,810,105).............. 9,640,987
------------
REPURCHASE AGREEMENT--0.18%
248 Repurchase Agreement dated 1/31/00 with State
Street Bank & Trust Co., collateralized by
$181,888 U.S. Treasury Notes, 6.000% due
08/15/00;
(value--$185,544) and $66,112 U.S. Treasury
Notes, 6.000% due 08/15/00; (value--$67,467);
proceeds: $248,031 (cost--$248,000).............. 02/01/00 4.500 248,000
------------
Total Investments (cost--$142,851,987)--98.65%................ 137,863,898
Other assets in excess of liabilities--1.35%.................. 1,886,486
------------
Net Assets--100.00%........................................... $139,750,384
============
</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, 2000.
See accompanying notes to financial statements
36
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE STRATEGIC FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- ------------------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--15.62%
$ 2,500 U.S. Treasury Bonds............................... 08/15/13 to 08/15/15 10.625 to 12.000 % $ 3,357,687
5,035 U.S. Treasury Inflation Index Bonds............... 04/15/29 3.875 4,791,962
27,779 U.S. Treasury Inflation Index Notes............... 07/15/02 to 01/15/07 3.375 to 3.625 26,477,793
1,220 U.S. Treasury Notes............................... 02/29/00 5.500 1,220,000
------------
Total U.S. Government Obligations (cost--$36,206,982)........ 35,847,442
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--3.83%
539 GNMA ARM.......................................... 01/20/26 6.375 542,208
809 GNMA ARM.......................................... 05/20/26 6.375 810,739
7,844 GNMA ARM.......................................... 10/15/23 6.610 7,239,894
192 GNMA ARM.......................................... 11/20/23 7.125 193,992
------------
Total Government National Mortgage Association Certificates
(cost--$9,490,321)......................................... 8,786,833
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES--1.71%
4,712 FHLMC (cost--$4,498,089).......................... 01/15/24 to 06/15/28 6.500 3,917,061
------------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES--1.82%
4,311 FHA Project Notes (cost--$4,432,905).............. 08/01/20 to 07/01/25 7.430 4,180,143
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES--7.42%
661 FNMA ARM.......................................... 04/01/27 7.013 665,486
35 FNMA ARM.......................................... 12/01/17 7.125 35,694
3,900 FNMA ARM.......................................... 12/01/09 6.970 3,768,375
945 FNMA ARM.......................................... 05/01/27 7.257 966,655
1,212 FNMA ARM COFI..................................... 11/01/26 5.740 1,118,797
11,000 FNMA TBA.......................................... TBA 7.000 10,474,068
------------
Total Federal National Mortgage Association Certificates
(cost--$17,335,905)........................................ 17,029,075
------------
COLLATERALIZED MORTGAGE OBLIGATIONS--38.01%
1,000 FHLMC REMIC Series 1278, Class K.................. 05/15/22 7.000 943,661
100 FHLMC REMIC Series 1366, Class H.................. 08/15/07 6.000 96,343
29 FHLMC REMIC Series 1367, Class KA................. 09/15/22 6.500 26,136
1,189 FHLMC REMIC Series 1502, Class PX-Z............... 04/15/23 7.000 1,048,922
846 FHLMC REMIC Series 1503, Class PZ................. 05/15/23 7.000 767,316
472 FHLMC REMIC Series 1534, Class Z.................. 06/15/23 5.000 319,924
757 FHLMC REMIC Series 1548, Class Z.................. 07/15/23 7.000 660,126
1,103 FHLMC REMIC Series 1562, Class Z.................. 07/15/23 7.000 990,874
180 FHLMC REMIC Series 1601, Class PB................. 11/15/23 6.500 153,078
136 FHLMC REMIC Series 1611, Class I.................. 02/15/23 6.000 128,018
769 FHLMC REMIC Series 1628, Class KZ................. 12/15/23 6.250 647,698
295 FHLMC REMIC Series 1694, Class Z.................. 03/15/24 6.500 247,807
1,096 FHLMC REMIC Series 2080, Class Z.................. 08/15/28 6.500 879,284
430 FHLMC REMIC Series G15, Class PZ.................. 07/25/23 7.000 378,011
298 FHLMC REMIC Series G23, Class KZ.................. 11/25/23 6.500 251,200
1,491 FHLMC REMIC Series G24, Class Z................... 11/25/23 6.500 1,215,801
199 FNMA REMIC Trust Series 1991-65, Class Z.......... 06/25/21 6.500 186,618
75 FNMA REMIC Trust Series 1992-118, Class K......... 09/25/08 7.500 74,539
160 FNMA REMIC Trust Series 1992-129, Class L......... 07/25/22 6.000 138,810
581 FNMA REMIC Trust Series 1992-G36, Class Z......... 07/25/22 7.000 559,584
84 FNMA REMIC Trust Series 1993-37, Class PX......... 03/25/23 7.000 71,709
178 FNMA REMIC Trust Series 1993-56, Class PZ......... 05/25/23 7.000 160,974
</TABLE>
37
<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>
COLLATERALIZED MORTGAGE OBLIGATIONS--(CONCLUDED)
$ 315 FNMA REMIC Trust Series 1993-60, Class Z.......... 05/25/23 7.000% $ 278,166
736 FNMA REMIC Trust Series 1993-65, Class ZZ......... 06/25/13 7.000 669,270
134 FNMA REMIC Trust Series 1993-70, Class Z.......... 05/25/23 6.900 118,752
388 FNMA REMIC Trust Series 1993-96, Class Z.......... 06/25/23 7.000 355,862
279 FNMA REMIC Trust Series 1993-122, Class L......... 01/25/23 6.500 255,956
76 FNMA REMIC Trust Series 1993-149, Class L......... 08/25/23 6.000 68,784
146 FNMA REMIC Trust Series 1993-160, Class ZB........ 09/25/23 6.500 126,928
142 FNMA REMIC Trust Series 1993-163, Class ZA........ 09/25/23 7.000 130,691
100 FNMA REMIC Trust Series 1993-199, Class Z......... 10/25/23 7.000 94,534
329 FNMA REMIC Trust Series 1993-G10, Class G......... 05/25/22 5.000 310,825
148 FNMA REMIC Trust Series 1993-G40, Class Z......... 12/25/23 6.500 120,868
292 FNMA REMIC Trust Series 1994-23, Class PX......... 08/25/23 6.000 232,863
4,000 FNMA REMIC Trust Series 1998-M, Class B........... 09/25/07 6.270 3,690,560
1,642 FNMA REMIC Trust Series 1998-M7, Class Z.......... 05/25/36 6.390 1,301,120
5,306 FNMA REMIC Trust Series 1999-10, Class MZ......... 09/17/38 6.500 4,180,226
2,500 FNMA REMIC Trust Series 1999-W4, Class A9......... 02/25/29 6.250 2,130,668
1,200 GNMA REMIC Series 2000-10, Class F................ 02/20/30 6.240 1,200,000
4,600 GNMA REMIC Series 2000-10, Class F1............... 02/16/30 6.440 4,595,690
1,997 SLMA Student Loan Trust Series 1998-1, Class A1
ARM............................................. 01/25/07 6.259 1,984,692
3,200 Small Business Administration Series 1999-20K,
Class 1......................................... 11/01/19 7.060 3,095,500
377 U.S. Department of Veteran Affairs Vendee Mortgage
Trust Series 1993-3, Class 2ZA.................. 06/15/20 6.500 344,168
3,800 ABN AMRO Mortgage Corp. REMIC Series 1998-3,
Class A3........................................ 09/25/28 6.750 3,493,454
1,351 American Residential Mortgage Loan Trust
Series 1998-1, Class 1 ARM...................... 05/25/29 6.059 1,349,775
234 Bear Stearns Mortgage Securities Inc. REMIC
Series 1994-1, Class 3A ARM..................... 05/25/23 7.073 227,485
209 California Federal Bank REMIC
Series 1990-BN1, Class A ARM.................... 08/25/30 6.341 210,685
742 Capital Asset Research Funding Series 1998-A,
Class A......................................... 12/15/05 5.905 734,424
6,903 Citicorp Mortgage Securities Inc. REMIC
Series 1998-8, Class A3......................... 09/25/28 6.750 6,279,163
5,000 Citicorp Mortgage Securities Inc. REMIC
Series 1998-9, Class A5......................... 10/25/28 6.500 4,503,700
3,974 Community Program Loan Trust Series 1987-A,
Class A4........................................ 10/01/18 4.500 3,502,471
3,539 Delta Funding Home Equity Loan Trust
Series 1999-3, Class A1-A ARM................... 09/15/29 6.203 3,530,697
5,239 GMAC Commercial Mortgage Security Inc.
Series 1998-C1, Class A1........................ 11/15/07 6.411 5,012,938
4,217 Housing Security Inc. Series 1992-8, Class B
ARM............................................. 06/25/24 6.228 4,185,236
1,892 LTC Commercial Mortgage Certificates
Series 1998-1, Class A.......................... 05/28/30 6.029 1,772,416
1,754 Mid-State Trust Series 4, Class A................. 04/01/30 8.330 1,775,140
712 Money Store Home Equity Trust
Series 1997-D, Class AF3........................ 11/15/21 6.345 703,907
480 Money Store Home Equity Trust
Series 1998-A, Class AV ARM..................... 06/15/29 5.961 480,291
4,700 Nationslink Funding Corp. Series 1992-2,
Class A1........................................ 10/20/03 6.800 4,580,808
5,000 Norwest Asset Securities Corp. REMIC
Series 1998-30, Class A17....................... 12/25/28 6.250 4,377,941
150 Residential Funding Mortgage Series 1993-S30,
Class A9........................................ 08/25/23 7.500 143,671
2,439 Residential Funding Mortgage Securities I Inc.
Series 1997-S7, Class A5........................ 05/25/27 7.500 2,264,500
243 Resolution Trust Corp. Mortgage
Series 1992-C1, Class B ARM..................... 08/25/23 7.375 249,081
2,934 Salomon Brothers Mortgage Securities Inc. VII
REMIC Series 1993-3, Class A7-MZ................ 08/25/23 7.200 2,637,931
------------
Total Collateralized Mortgage Obligations
(cost--$92,558,589)........................................ 87,248,270
------------
</TABLE>
38
<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>
ASSET BACKED SECURITIES--1.07%
$ 2,500 First Security Auto Owner Trust Series 1999-1,
Class A3
(cost--$2,479,770).............................. 06/15/03 5.580% $ 2,466,650
------------
STRIPPED MORTGAGE-BACKED SECURITIES+--0.17%
159 FHLMC Series 1625, Class GA+++.................... 01/15/08 7.700(1) 8,535
1 FNMA REMIC Trust Series 1993-134, Class EA+++..... 11/25/05 10.480(1) 5,587
507 FNMA REMIC Trust Series 1993-201, Class JA+++..... 09/25/21 8.310(1) 59,256
3,227 FNMA REMIC Trust Series 1993-201, Class JC+++..... 05/25/19 6.000(1) 319,416
------------
Total Stripped Mortgage-Backed Securities (cost--$391,311)... 392,794
------------
CORPORATE BONDS--29.77%
AIRLINES--0.46%
500 AMR Corp.......................................... 02/01/01 10.000 510,497
500 United Air Lines Inc.............................. 11/27/12 10.360 543,375
------------
1,053,872
------------
APPAREL & FOOTWEAR--0.77%
2,000 Westpoint Stevens Inc............................. 06/15/05 7.875 1,760,000
------------
BANKS--0.64%
1,500 MBNA American Bank................................ 12/10/02 6.495++ 1,477,161
------------
CHEMICALS--0.17%
475 Terra Industries.................................. 06/15/05 10.500 380,000
------------
ENERGY--0.94%
2,200 NRG Energy Inc.................................... 11/01/03 8.000 2,155,705
------------
FINANCIAL SERVICES--9.20%
3,700 AT&T Capital Corp................................. 04/23/02 6.310++ 3,700,692
6,800 General Motors Acceptance Corp.................... 08/06/01 to 04/05/04 6.251 to 6.333++ 6,802,321
4,000 Infrastructure Finance............................ 03/26/09 5.059++ 3,997,500
285 Midland Funding Corp.............................. 07/23/02 10.330++ 295,681
4,605 Sprint Capital Corp............................... 05/01/04 5.875 4,311,671
2,000 Textron Financial Corp.+.......................... 05/28/02 6.456++ 1,999,998
------------
21,107,863
------------
MEDICAL PROVIDERS--0.70%
1,700 Columbia HCA Health Care Corp..................... 07/15/45 6.630 1,614,191
------------
SECURITY SERVICES--4.38%
3,250 Goldman Sachs Group............................... 03/19/01 6.238++ 3,251,102
2,300 Lehman Brothers Holdings Inc...................... 04/02/02 6.904++ 2,308,699
4,500 Morgan Stanley Dean Witter & Co................... 04/22/04 6.290++ 4,492,210
------------
10,052,011
------------
TELECOMMUNICATIONS--2.61%
6,000 US West Capital Funding Inc.+..................... 06/15/00 6.571++ 5,998,380
------------
TOBACCO--1.68%
4,000 Philip Morris Companies Inc....................... 04/01/04 to 07/15/05 7.000 to 7.500 3,860,745
------------
UTILITIES--2.28%
1,590 Connecticut Light & Power Co...................... 07/01/00 5.750 1,582,530
1,663 Niagara Mohawk Power Co........................... 10/01/02 7.250 1,647,380
</TABLE>
39
<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>
CORPORATE BONDS--(CONCLUDED)
UTILITIES--(CONCLUDED)
$ 2,000 Texas Utilities Co.+.............................. 06/25/01 6.725%++ $ 1,997,490
------------
5,227,400
------------
YANKEE--5.94%
2,500 Compagnie Financiere de CIC et de l'Union
Europeenne...................................... 10/29/49 6.740++ 2,387,500
1,000 Korea Development Bank+........................... 10/06/00 7.154++ 992,500
1,000 Mexico Credit Link................................ 02/25/02 10.510++ 1,026,057
2,900 Nacional Financiera............................... 05/08/03 7.941++ 2,839,648
1,000 National Power Corp............................... 05/15/28 9.625 889,314
2,300 Nordbanken AB+.................................... 11/29/49 8.950 2,278,700
1,400 Petroleos Mexicanos............................... 09/15/27 9.500 1,351,000
2,000 Telewest PLC...................................... 10/01/07 11.000 1,877,500
------------
13,642,219
------------
Total Corporate Bonds (cost--$69,298,814).................... 68,329,547
------------
CONVERTIBLE BONDS--0.89%
MEDIA--0.25%
570 Clear Channel Communications...................... 12/01/02 1.500 572,138
------------
SEMI-CONDUCTOR--0.43%
1,000 Conexant Systems Inc.............................. 02/01/07 4.000 997,500
------------
WIRELESS TELECOMMUNICATIONS--0.21%
500 Nextel Communications Inc.+....................... 01/15/10 5.250 472,500
------------
Total Convertible Bonds (cost--$2,102,568)................... 2,042,138
------------
INTERNATIONAL GOVERNMENT OBLIGATIONS--3.37%
394 Republic of Brazil................................ 01/01/01 7.000++ 390,648
2,500 Republic of Columbia.............................. 04/23/09 9.750 2,337,500
1,500 Republic of Phillippines.......................... 10/21/24 9.500 1,481,250
4,000 United Mexican States............................. 04/07/04 to 12/31/19 6.250 to 9.780++ 3,518,400
------------
Total International Government Obligations
(cost--$7,620,743)......................................... 7,727,798
------------
SHORT-TERM U.S. GOVERNMENT AND AGENCY [email protected]%
8,500 Federal Home Loan Bank Consolidated Discount
Notes........................................... 02/16/00 5.720 8,480,733
2,500 Federal National Mortgage Association Discount
Notes........................................... 02/02/00 5.540 2,499,623
70 U.S. Treasury Bills++++++......................... 02/10/00 to 02/17/00 4.950 to 5.000 69,865
------------
Total Short-Term U.S. Government and Agency Obligations
(cost--$11,050,221)........................................ 11,050,221
------------
REPURCHASE AGREEMENT--0.82%
1,871 Repurchase Agreement dated 01/31/00 with State
Street Bank & Trust Co., collateralized by
$1,955,000 U.S. Treasury Notes, 5.625% due
12/31/02 (value--$1,911,013);
proceeds: $1,871,234 (cost--$1,871,000)......... 02/01/00 4.500 1,871,000
------------
Total Investments (cost--$259,337,218)--109.31%.............. 250,888,972
Liabilities in excess of other assets--(9.31)%............... (21,375,304)
------------
Net Assets--100.00%.......................................... $229,513,668
============
</TABLE>
See explanation of footnotes on following page
40
<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, 2000.
+ Illiquid securities represent 6.16% 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, 2000.
COFI Cost of Funds Index
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
OPTIONS STRIKE PRICE DATES VALUE
- --------- ------------ --------------- --------
<C> <S> <C> <C> <C>
WRITTEN OPTIONS
65 Eurodollar 1 Year Futures Puts.................... $93.50 December 2000 $130,000
99 U.S. Treasury Bonds Futures Calls................. 94.00 March 2000 29,390
134 U.S. Treasury Bonds Futures Calls................. 98.00 March 2000 2,094
67 U.S. Treasury Bonds Futures Puts.................. 86.00 March 2000 1,047
134 U.S. Treasury Bonds Futures Puts.................. 90.00 March 2000 31,406
39 U.S. 10 Year Treasury Notes Futures Calls......... 98.00 March 2000 1,828
39 U.S. 10 Year Treasury Notes Futures Puts.......... 93.00 March 2000 6,094
--------
$201,859
========
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION
CONTRACTS CONTRACTS TO RECEIVE EXCHANGE FOR DATES (DEPRECIATION)
- --------- ------------------------------------------------------------ ------------- --------------- --------------
<C> <S> <C> <C> <C>
FUTURES CONTRACTS
77 U.S. 10 Year Treasury Notes................................. $ 7,539,125 March 2000 $(240,969)
119 U.S. 30 Year Treasury Bonds................................. 10,718,781 March 2000 255,301
122 90 Day Eurodollar........................................... 30,878,675 December 2000 (261,275)
132 90 Day Eurodollar........................................... 28,351,213 March 2001 (83,324)
51 90 Day Eurodollar........................................... 11,740,838 December 2006 6,304
22 90 Day Libor................................................ 33,009,530 March 2000 (890)
---------
$(324,853)
=========
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN MATURITY APPRECIATION
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
------------ ------------- -------- --------------
<S> <C> <C> <C> <C>
Eurodollar.................................................. $ 4,060,000 US$ 4,132,999 02/07/00 $(168,492)
Eurodollar.................................................. 3,510,000 US$ 3,565,107 02/17/00 (135,262)
Eurodollar.................................................. 3,200,000 US$ 3,217,344 03/08/00 (85,674)
Japanese Yen................................................ 70,000,000 US$ 659,096 02/14/00 6,902
---------
$(382,526)
=========
</TABLE>
See accompanying notes to financial statements
41
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE MUNICIPAL FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------ -------------------- ---------------- ------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--93.94%
ALABAMA--0.24%
$ 125 Birmingham Medical Clinic Board Revenue Bapist
Medical Centers (Escrow to Maturity)............ 07/01/05 7.300% $ 132,755
-----------
ARIZONA--2.86%
65 Pima County Hospital Revenue St. Joseph Hospital
Project (Escrow to Maturity).................... 01/01/09 7.500 70,781
1,000 Santa Cruz County Industrial Development Authority
Industrial Development Revenue (Optional Put
08/01/07 @ 100)................................. 08/01/20 4.750 944,420
570 Show Low Industrial Development Authority Revenue
Navapache Regional Medical Center Series A (ACA
Insured)........................................ 12/01/06 5.125 556,018
-----------
1,571,219
-----------
ARKANSAS--0.36%
60 Arkansas State Development Finance Authority (MBIA
Insured)........................................ 10/01/16 5.100 60,023
30 Pulaski County Residental Housing Single Family
(Escrow to Maturity)............................ 06/01/10 7.250 32,412
100 Springdale Residential Housing Mortgage Series A
(FNMA Collateralized)........................... 09/01/11 7.650 103,697
-----------
196,132
-----------
CALIFORNIA--10.96%
880 Abag Finance Authority For Nonprofit Refunding
Housing Sundale Arms Apartments Project A (FNMA
Collateralized)*................................ 03/01/19 5.100 766,295
135 California Pollution Control Financing Kaiser
Steel Corporation Project (Escrow to
Maturity)....................................... 10/01/08 7.250 144,565
945 California Statewide Community Development Housing
Riverside Gardens Project Series J (Letter of
Credit)*........................................ 10/01/12 5.100 874,796
85 California Statewide Community Housing Senior Lien
(FHA Insured)................................... 09/01/00 5.000 85,108
120 Inglewood Residential Rehabilitation (Escrow to
Maturity)....................................... 08/01/10 7.500 131,291
380 Lancaster Redevelopment Agency Multi-Family
Housing Refunding FHA High Valley Apartments
Project Series A (FHA Insured).................. 12/01/05 5.250 373,244
550 Los Angeles Community Redevelopment Agency
Refunding Monterey Hills Redevelopment Project
B............................................... 12/01/22 8.650 584,006
300 Los Angeles Multi-Family Revenue Housing
Earthquake Rehabilitation Project Series C (FNMA
Collateralized)*................................ 07/01/07 5.150 295,272
110 Palmdale Residential Mortgage (Escrow to
Maturity)....................................... 11/01/12 9.250 134,825
500 Riverside County Housing Authority Revenue
Refunding Breezewood Apartments Project
Series B (MBIA Insured)......................... 06/01/19 5.000 428,380
20 Sacramento Utility District Electric Revenue
(Escrow to Maturity)............................ 02/01/11 5.500 20,168
1,095 Sacramento Utility District Electric Revenue White
Rock Project (Escrow to Maturity)............... 03/01/10 to 05/01/10 6.750 to 6.800 1,173,496
1,005 Vista Multi-Family Housing Pepperwood Apartments
(Mandatory Put 06/01/05 @ 100) (FNMA
Collateralized)................................. 06/01/25 5.700 1,013,633
-----------
6,025,079
-----------
COLORADO--2.12%
300 Colorado Housing Finance Authority Multi-Family
Insured Mortgage C3 (FHA Insured)............... 10/01/21 5.700 278,850
475 Colorado Housing Finance Authority Single Family
Program Subordinated*........................... 11/01/04 5.750 467,604
410 Lakewood Company Multi-Family Housing*............ 10/01/15 6.550 420,869
-----------
1,167,323
-----------
</TABLE>
42
<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>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
CONNECTICUT--2.38%
$1,500 Connecticut State Development Authority Revenue
Life Care Facility Seabury Project (Asset
Guaranty Insured)............................... 09/01/15 5.000% $ 1,308,135
-----------
DISTRICT OF COLUMBIA--3.64%
555 District of Columbia Housing Finance Authority
Certificate of Participation (Asset Guaranty
Insured)........................................ 06/01/08 4.850 516,816
1,500 District of Columbia Series A (MBIA Insured)...... 06/01/08 5.250 1,482,960
-----------
1,999,776
-----------
FLORIDA--2.37%
250 Alachua County Health Facilities Authority Shands
Hospital at The University of Florida (MBIA
Insured)........................................ 12/01/05 6.100 257,967
100 Clearwater Housing Development Corporation Revenue
Refunding Clearwater Apartments Series A (FHA
Insured)........................................ 07/01/01 6.200 100,909
100 Dade County Educational Facilities Authority
Revenue (Letter of Credit)...................... 01/01/02 5.150 100,680
150 Palm Beach County Solid Waste Authority Revenue
(Escrow to Maturity) (MBIA Insured)............. 12/01/04 10.000 170,613
240 Pasco County Housing Finance Authority Refunding
Oak Trail Apartments Project Series B (Mandatory
Put 06/01/08 @100) (AXA Reinsurance)............ 06/01/27 5.500 239,189
415 Pasco County MBIA (Escrow to Maturity) (MBIA
Insured)........................................ 08/01/08 6.375 432,177
-----------
1,301,535
-----------
GEORGIA--1.98%
350 Canton Housing Authority Multi-Housing Canterbury
Ridge Apartments Project (FNMA
Collateralized)*................................ 03/01/08 4.900 335,325
130 Gwinnett County Water & Sewer Authority (Escrow to
Maturity)....................................... 10/01/04 9.600 147,291
600 Marietta Housing Authority Multi-Family Housing
Refunding Ridge Apartments Project A (Mandatory
Put 06/01/05 @ 100) (FNMA Collateralized)....... 06/01/25 5.700 604,056
-----------
1,086,672
-----------
ILLINOIS--4.60%
240 Belleville St. Clair County (Escrow to
Maturity)....................................... 11/01/09 7.250 261,281
350 Greater Peoria Airport Authority (AMBAC
Insured)*....................................... 12/01/07 6.700 372,921
500 Illinois Educational Facilities Authority Revenues
Refunding Northwestern Medical Facility
Foundation (MBIA Insured)....................... 11/15/28 5.125 403,860
710 Illinois Health Facilities Authority Revenue
Ravenswood Hospital (Escrow to Maturity)........ 08/01/06 7.250 752,678
250 Palatine Housing Revenue Clover Ridge (Mandatory
Put 12/15/02 @ 100) (Letter of Credit).......... 12/15/07 4.750 247,283
510 St. Clair County Certificates Participation
Series A (FSA Insured).......................... 10/01/07 to 10/01/08 4.900 to 5.000 489,882
-----------
2,527,905
-----------
INDIANA--6.48%
185 Fort Wayne Hospital Authority Revenue (Escrow to
Maturity)....................................... 01/01/07 6.625 193,769
40 Fort Wayne Hospital Authority Revenue Lutheran
Hospital Project (Escrow to Maturity)........... 01/01/02 6.875 40,692
400 Fort Wayne Hospital Authority Revenue Parkview
Memorial Hospital (Escrow to Maturity).......... 01/01/05 6.500 413,092
200 Gary Mortgage Revenue Willow On Clark Apartments A
(GNMA Collateralized)*.......................... 08/20/38 5.400 165,794
915 Indiana Health Facility Hospital Revenue Kings
Daughters Hospital (Asset Guaranty Insured)..... 02/15/04 to 02/15/05 5.000 902,290
</TABLE>
43
<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>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
INDIANA--(CONCLUDED)
$ 415 Indianapolis Economic Development Revenue Knob In
The Woods Project (Mandatory Put 12/01/04 @ 100)
(FNMA Collateralized)*.......................... 12/01/24 6.375% $ 437,377
600 Indianapolis Economic Development Revenue
Refunding Bethany Series A (GNMA
Collateralized)*................................ 04/20/17 5.350 537,072
1,000 New Castle Economic Development Revenue Refunding
FHA Raintree Square Project A (FHA Insured)..... 04/01/19 5.550 874,350
-----------
3,564,436
-----------
IOWA--0.38%
140 Iowa Finance Authority Multi-Family Revenue
Refunding Housing Forest Glen Apartments Project
A (FNMA Collateralized)......................... 11/01/03 4.700 137,465
70 Iowa Finance Authority Multi-Family Revenue
Refunding Housing Hillcrest Series C (FNMA
Collateralized)................................. 11/01/02 4.600 69,146
-----------
206,611
-----------
KANSAS--0.06%
35 Wichita Hospital Revenue St. Francis Hospital &
Nursing Senior A (Escrow to Maturity)........... 10/01/07 6.750 35,154
-----------
KENTUCKY--0.41%
60 Kentucky State Revenue Turnpike Authority (Escrow
to Maturity).................................... 07/01/09 7.200 65,585
155 Kentucky State Revenue Turnpike Authority Toll
Road (Escrow to Maturity)....................... 07/01/08 5.875 158,255
-----------
223,840
-----------
LOUISIANA--3.51%
320 East Baton Rouge Parish Womans Hospital Foundation
(Escrow to Maturity)............................ 10/01/08 7.200 344,474
80 East Baton Rouge Single-Family Mortgage Series C
(GNMA/FNMA Collateralized)...................... 04/01/32 7.000 81,314
800 Louisiana Public Facilities Authority and Health
Education Authority A1 (Mandatory Put 06/01/02 @
100) (AMBAC Insured)............................ 12/01/15 5.000 796,640
650 Louisiana State Health Education Authority Alton
Ochsner Medical Foundation (Escrow to
Maturity)....................................... 05/01/05 8.750 707,635
-----------
1,930,063
-----------
MASSACHUSETTS--2.41%
520 Massachusetts Bay Transport Authority General
Transportation Systems Series B (FSA Insured)... 03/01/26 5.250 450,492
1,005 Massachusetts State Development Finance Agency
Curry College Series A (ACA Insured)............ 03/01/19 5.375 873,415
-----------
1,323,907
-----------
MICHIGAN--0.93%
130 Michigan State Hospital Finance Authority Revenue
St. Joseph's Mercy Hospital (Escrow to
Maturity)....................................... 07/01/03 9.250 139,762
160 Michigan State Housing Development Authority
Series B*....................................... 12/01/12 7.650 163,536
195 Michigan State Strategic Limited Obligation
(Escrow to Maturity)............................ 08/15/05 7.875 208,043
-----------
511,341
-----------
MINNESOTA--0.97%
315 Coon Rapids Hospital Revenue Health Central
Incorporated (Escrow to Maturity)............... 08/01/08 7.625 344,125
</TABLE>
44
<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>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
MINNESOTA--(CONCLUDED)
$ 132 Eden Prairie Multi-Family Housing (GNMA
Collateralized)................................. 01/20/06 5.500% $ 132,663
55 Moorhead Residential Mortgage (Escrow to
Maturity)....................................... 08/01/11 7.100 59,718
-----------
536,506
-----------
MISSISSIPPI--0.75%
450 Corinth Alcorn County Mississippi Hospital
Refunding Magnolia Regional Health Center A..... 10/01/08 5.000 411,912
-----------
MISSOURI--3.42%
1,500 Missouri State Development Finance Board
Recreation Facility YMCA Greater St. Louis
Project Series A (Letter of Credit)............. 09/01/06 to 09/01/08 4.600 to 4.800 1,385,345
450 St. Charles County Industrial Development
Refunding Garden View Care Center Project
(Letter of Credit).............................. 11/15/16 5.400 370,085
125 St. Louis County Single-Family Housing (AMBAC
Insured)........................................ 10/01/16 9.250 125,181
-----------
1,880,611
-----------
NEBRASKA--0.45%
250 Nebraska Investment Finance Authority Multi-Family
Housing Series A (FNMA Collateralized)*......... 12/01/15 6.000 245,965
-----------
NEW JERSEY--0.27%
140 New Jersey Health Care Facilities Financing St.
Barnabas Medical Center (Escrow to Maturity).... 07/01/11 7.000 149,876
-----------
NEW MEXICO--1.59%
945 Sandoval County Multi-Family Housing Arrowhead
Ridge Apartments Series A (FSA Insured)*........ 11/01/09 4.750 877,140
-----------
NEW YORK--1.37%
200 New York City Housing Authority Multi-Family
Revenue Refunding Series A...................... 07/01/05 5.250 197,492
300 New York City Housing Authority Multi-Family
Revenue Refunding Series A (AMBAC Insured)...... 07/01/08 5.450 300,387
195 Onondaga County Industrial Development Civic
Facility Lemoyne College Project Series A....... 03/01/04 5.000 188,978
75 Onondaga County Industrial Development Civic
Facility Syracuse Home Association Project
(Letter of Credit).............................. 12/01/07 4.500 68,572
-----------
755,429
-----------
NORTH CAROLINA--0.64%
375 Asheville Housing Authority Multi-Family Housing
Woodridge Apartments (GNMA Collateralized)*..... 11/20/19 5.700 350,505
-----------
NORTH DAKOTA--0.97%
140 North Dakota Housing Finance Agency Series A*..... 01/01/10 4.750 129,924
440 North Dakota Housing Finance Agency Series D*..... 01/01/10 4.750 406,133
-----------
536,057
-----------
OHIO--0.40%
160 Dayton Hospital Revenue Good Samaritan (Escrow to
Maturity)....................................... 12/01/05 6.000 164,120
55 Ohio Housing Finance Agency Single-Family Mortgage
Series C (GNMA Collateralized)*................. 09/01/21 7.850 56,548
-----------
220,668
-----------
OKLAHOMA--2.23%
335 Comanche County Hospital Authority Revenue
Series A (Connie Lee Insured)................... 07/01/06 5.100 329,737
</TABLE>
45
<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>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
OKLAHOMA--(CONCLUDED)
$ 425 McAlester Public Works Authority Revenue (FSA
Insured) (Escrow to Maturity)................... 12/01/04 8.250% $ 484,122
490 Oklahoma City Public Property Authority Refunding
and Improvement Oklahoma City Golf Systems
(Asset Guaranty Insured)........................ 10/01/12 4.750 414,074
-----------
1,227,933
-----------
PENNSYLVANIA--10.40%
95 Allegheny County Industrial Commercial Development
MPB Association................................. 12/01/04 6.750 93,590
140 Allegheny County Residential Mortgage Revenue
Single-Family Mortgage Series D2 (GNMA
Insured)*....................................... 05/01/08 4.850 131,068
400 Blair County Hospital Authority Revenue Hospital
Altoona Hospital Project A (AMBAC Insured)...... 07/01/06 5.375 400,516
30 Caln Township Municipal Sewer Revenue (Escrow to
Maturity)....................................... 01/01/09 5.700 30,512
535 Chester County Health & Education Jefferson Health
Systems Series B (AMBAC Insured)................ 05/15/12 5.000 488,904
50 Chester County Hospital Authority Revenue (Escrow
to Maturity).................................... 07/01/09 7.500 54,517
85 Conneaut School District (Escrow to Maturity)
(AMBAC Insured)................................. 05/01/02 9.250 89,722
145 Lancaster County Hospital Authority Lancaster
General Hospital Project (AMBAC Insured)........ 07/01/11 4.750 128,625
80 Lancaster Sewer Authority (Escrow to Maturity).... 04/01/12 6.000 82,677
400 Luzerne County Industrial Development Authority
Pennsylvania Gas & Water Series B*.............. 12/01/22 7.125 412,096
15 Montgomery County Higher Education Beaver College
(Escrow to Maturity)............................ 10/01/00 6.750 15,252
1,000 Pennsylvania Housing Finance Agency Single-Family
Mortgage Series 65A*............................ 04/01/08 4.600 934,480
600 Pennsylvania State Finance Authority Revenue
(Investment Agreement - Sun America)............ 11/01/09 6.600 630,888
500 Pennsylvania State Higher Education Facilities
Temple University First Series (MBIA Insured)... 04/01/29 5.000 409,690
125 Philadelphia Hospital & Higher Education Health
Systems Jefferson Health Systems A (MBIA
Insured)........................................ 05/15/07 5.250 123,797
500 Philadelphia Hospitals & Higher Friends Hospital
(ACA Insured)................................... 05/01/11 6.200 496,350
125 Pittsburgh Urban Redevelopment Mortgage Series B
(FNMA Collateralized)........................... 10/01/11 to 10/01/12 4.800 to 4.900 114,476
1,180 Saucon Valley School District (AMBAC Insured)..... 10/15/09 4.650 1,084,880
-----------
5,722,040
-----------
RHODE ISLAND--1.63%
1,000 Rhode Island State Turnpike & Bridge Refunding.... 12/01/17 5.350 899,000
-----------
SOUTH CAROLINA--1.48%
220 Charleston County Hospital Facility Roper Hospital
(Escrow to Maturity)............................ 10/01/11 7.000 239,325
325 South Carolina Jobs Economic Development
Caterpillar Incorporated Project*............... 06/01/08 5.050 300,014
285 South Carolina State Housing Multi-Family Housing
(FHA Insured)................................... 07/01/27 6.050 276,096
-----------
815,435
-----------
SOUTH DAKOTA--0.84%
440 South Dakota State Health & Educational Revenue
St. Lukes Hospital Project (Escrow to
Maturity)....................................... 10/01/07 6.800 463,659
-----------
</TABLE>
46
<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>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
TENNESSEE--4.02%
$1,000 Bristol Industrial Development Board Refunding
Shelby Heights Apartments Project............... 03/01/22 6.200% $ 989,270
410 Knox County Health Educational & Housing Facility
St. Mary's Medical Center (Escrow to
Maturity)....................................... 08/01/03 7.250 427,941
185 La Follette Housing Development Corporation
(FHA/MBIA Insured).............................. 01/01/05 5.400 185,544
185 Metropolitan Government Nashville Health &
Education Southern Advanatist Hospital Health
Systems (Escrow to Maturity).................... 10/01/09 8.700 216,134
420 Oak Ridge Industrial Development Board
Multi-Family Housing The Gardens Series A (GNMA
Collateralized)................................. 08/20/13 5.125 392,318
-----------
2,211,207
-----------
TEXAS--11.24%
980 De Soto Housing Finance Corporation Multi-Family
Mortgage The Colonies Apartments Project
(Mandatory Put 10/01/07 @ 100) (FNMA
Collateralized)................................. 10/01/27 5.125 957,186
300 Galveston County Housing Finance Corporation
Single-Family Mortgage Revenue.................. 04/01/15 9.750 311,034
400 Hidalgo County Health Services Corporation Mission
Hospital Project (Pre-Refunded 08/01/00 @
103)............................................ 02/01/25 10.250 423,644
255 Houston Texas Airport Systems Revenue (Escrow to
Maturity)....................................... 07/01/10 7.600 283,751
1,000 Lewisville Housing Finance Corporation
Multi-Family Housing Lewisville Limited Project
(FSA Insured)*.................................. 12/01/08 5.000 961,930
645 Odessa Junior College District Revenue
Refunding & Imot Series A (MBIA Insured)........ 12/01/09 4.750 594,277
1,500 Southeast Housing Finance Corporation Series B
(Pre-refunded to 12/01/02 @ 36.127)............. 12/01/16 7.625# 417,075
450 Tarrant County Health Facilities Development
Mortgage South Central Nursing A (FHA/MBIA
Insured)........................................ 01/01/37 6.000 422,906
1,100 Tarrant County Housing Finance Corporation
Refunding Multi-Family Housing Summit Project A
(Mandatory Put 09/01/07 @ 100) (FNMA
Collateralized)................................. 09/01/27 5.080 1,070,949
735 Texas State Department Housing and Community
Affairs Senior Dallas/Fort Worth Series A....... 07/01/06 6.000 737,668
-----------
6,180,420
-----------
UTAH--2.61%
270 Salt Lake City Hospital Revenue (Escrow to
Maturity)....................................... 06/01/09 7.350 290,628
490 Salt Lake County Multi-Family Housing James Pointe
Apartment (Mandatory Put 10/01/05 @ 100) (Asset
Guaranty Insured)............................... 10/01/25 5.500 487,844
105 Salt Lake County Water Conservation (Escrow to
Maturity) (MBIA Insured)........................ 10/01/02 10.875 115,603
400 Utah State Housing Finance Agency Single-Family
Mortgage Sub A1 (AMBAC Insured)................. 07/01/08 5.900 396,272
85 Utah State Housing Finance Agency Single-Family
Mortgage Sub G (AMBAC Insured).................. 07/01/07 5.650 83,874
60 Utah State Housing Finance Agency Single-Family
Mortgage Sub H1 (AMBAC Insured)................. 07/01/07 5.650 59,205
-----------
1,433,426
-----------
WASHINGTON--0.44%
265 Washington State Housing Finance Commission
Single-Family PG Series 3A (FNMA/GNMA
Collateralized)*................................ 12/01/10 5.200 243,371
-----------
WEST VIRGINIA--0.61%
40 Kanawha County Residential Mortgage Revenue
(Escrow to Maturity)............................ 09/01/10 7.375 44,086
</TABLE>
47
<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>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
WEST VIRGINIA--(CONCLUDED)
$ 300 Preston County Pollution Control Revenue
Monongahhela Power Services..................... 03/01/03 4.500% $ 291,033
-----------
335,119
-----------
WISCONSIN--1.43%
735 Wisconsin Housing & Economic Development
Series B*....................................... 09/01/08 4.850 685,726
100 Wisconsin Housing & Economic Development
Series G*....................................... 03/01/04 5.250 99,189
-----------
784,915
-----------
WYOMING--0.49%
295 Teton County Hospital District Refunding
Improvement (ACA Insured)....................... 12/01/09 5.100 269,801
-----------
Total Municipal Bonds and Notes (cost--$54,373,242)............. 51,662,878
-----------
TAX EXEMPT COLLATERALIZED MORTGAGE OBLIGATIONS--0.63%
348 FHA Insured Trust 1996-01, Class A1++
(cost--$348,334)................................ 11/01/06 6.100 348,334
-----------
</TABLE>
<TABLE>
<C> <S> <C>
TAX FREE MONEY MARKET FUND--4.16%
2,285 Municash Portfolio (cost--$2,285,361)................................................... 2,285,361
-----------
54,296,573
Total Investments (cost--$57,006,937)--98.73%...........................................................
698,910
Other assets in excess of liabilities--1.27%............................................................
-----------
Net Assets--100.00%..................................................................................... $54,995,483
===========
</TABLE>
- -----------------
* Security subject to Alternative Minimum Tax.
# Zero coupon bond, rate represents annualized yield at date of purchsase.
++ Illiquid security, representing 0.63% of net assets.
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
48
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE GLOBAL FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)** DATES RATES VALUE
- ------------- ------------------------ -------------- ------------
<C> <S> <C> <C> <C>
LONG-TERM GLOBAL DEBT SECURITIES--90.45%
AUSTRALIA--2.62%
4,200 Australia Commonwealth............................ 07/15/05 7.500% $ 2,735,711
------------
CANADA--6.17%
6,800 Government of Canada.............................. 09/01/03 to 06/01/08 5.250 to 6.000 4,515,019
USD 2,000 Government of Canada.............................. 01/22/02 5.125 1,926,856
------------
6,441,875
------------
CHILE--0.17%
USD 200 Republic of Chile................................. 04/28/09 6.875 181,410
------------
DENMARK--1.23%
9,135 Kingdom of Denmark................................ 11/15/07 7.000 1,285,014
------------
FRANCE--0.53%
600 Republic of France................................ 07/12/04 3.500 548,239
------------
GERMANY--18.19%
20,480 Federal Republic of Germany....................... 06/15/01 to 07/04/09 3.000 to 6.750 18,993,037
------------
ITALY--3.91%
3,120 Republic of Italy................................. 05/01/08 5.000 2,915,703
JPY 120,000 Republic of Italy................................. 06/20/01 3.500 1,169,757
------------
4,085,460
------------
JAPAN--0.89%
100,000 Primus Financial Services......................... 12/16/02 0.790 932,172
------------
MALAYSIA--1.32%
USD 1,000 Petroliam Nasional Berhad......................... 10/18/06 to 10/15/26 7.125 to 7.625 934,134
USD 450 Tenaga Nasional Berhad............................ 04/29/07 7.200 442,135
------------
1,376,269
------------
MEXICO--2.70%
EUR 120 United Mexican States............................. 04/07/04 6.852 120,634
USD 2,850 United Mexican States#............................ 01/15/07 to 12/31/19 6.250 to 9.875 2,696,797
------------
2,817,431
------------
NETHERLANDS--11.81%
13,363 Government of the Netherlands..................... 02/15/07 to 07/15/09 3.750 to 5.750 12,334,780
------------
NORWAY--5.74%
42,600 Kingdom of Norway................................. 11/30/04 to 05/15/09 5.500 to 6.750 5,028,071
1,000 Norsk Hydro AS.................................... 01/15/10 6.250 967,607
------------
5,995,678
------------
PHILIPPINES--2.17%
USD 2,294 Republic of Phillippines.......................... 10/21/24 9.500 2,265,325
------------
SOUTH KOREA--2.50%
USD 2,530 Republic of Korea................................. 04/15/08 8.875 2,612,858
------------
SPAIN--3.23%
3,600 Kingdom of Spain.................................. 07/30/09 5.150 3,367,435
------------
SWEDEN--7.25%
72,600 Kingdom of Sweden................................. 04/20/06 to 01/28/09 3.500 to 6.500 7,576,227
------------
UNITED KINGDOM--8.45%
USD 2,600 Diageo PLC........................................ 06/24/04 6.625 2,516,748
</TABLE>
49
<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>
600 LCR Finance PLC................................... 12/31/10 4.750% $ 863,623
650 Tesco PLC......................................... 12/18/09 5.125 919,042
2,752 United Kingdom Gilt............................... 12/07/03 to 09/08/06 6.500 to 7.750 4,527,747
------------
8,827,160
------------
UNITED STATES--11.57%
550 Ameritech Capital Funding Co...................... 05/18/09 6.250 492,525
1,100 Amoco Corp........................................ 06/09/08 6.000 992,420
1,000 AT&T Universal Card Master Trust.................. 09/17/03 5.620+ 999,900
1,950 Conoco Inc. ...................................... 04/15/04 5.900 1,838,220
1,000 Ford Motor Credit Co. ............................ 07/16/01 6.210+ 1,000,995
EUR 1,000 General Motors Acceptance Corp. .................. 02/02/05 5.500 967,704
JPY 131,000 General Motors Acceptance Corp. .................. 07/26/02 0.206+ 1,221,694
500 Israel Electric Corporation Limited MTN........... 10/15/09 8.250 494,274
2,697 United States Treasury Notes...................... 08/15/03 to 01/15/09 3.875 to 5.250 2,589,446
JPY 100,000 Westpac Banking Corp.............................. 09/24/01 0.990+ 930,961
550 Xerox Corp. MTN................................... 06/15/37 5.875 552,628
12,080,767
------------
Total Long-Term Global Debt Securities (cost--$102,171,851)...... 94,456,848
------------
SHORT-TERM GLOBAL DEBT SECURITIES--6.27%
KOREA--0.45%
JPY 50,000 Korea Development Bank............................ 05/30/00 2.950 469,114
------------
UNITED STATES--5.82%
5,000 Federal National Mortgage Association Discount
Notes........................................... 02/10/00 5.460@ 4,993,175
JPY 114,000 International Bank Reconstruction & Development... 06/20/00 4.500 1,080,573
------------
6,073,748
------------
Total Short-Term Global Debt Securities (cost--$7,528,372)....... 6,542,862
------------
REPURCHASE AGREEMENT--0.37%
$ 385 Repurchase Agreement dated 01/31/00 with State
Street Bank & Trust Co. collateralized by
$386,674 U.S. Treasury Bonds, 6.000% due
08/15/06
(value--$392,957); proceeds: $385,048
(cost--$385,000)................................ 02/01/00 4.500 385,000
------------
Total Investments (cost--$110,085,223)--97.09%................... 101,384,710
Other assets in excess of liabilities--2.91%..................... 3,043,546
------------
Net Assets--100.00%.............................................. $104,428,256
============
</TABLE>
- -----------------
Note: The Portfolio of investments is listed by the issuer's county of origin.
** In local currency unless otherwise indicated.
# Security represents a unit which is composed of the stated bond with
attached warrants or common stock.
+ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2000.
@ Interest rate shown is a discount rate at date of purchase.
EUR Euro Dollars.
JPY Japanese Yen.
MTN Medium Term Notes.
USD U.S. Dollars.
50
<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>
Danish Kronas............................................... 2,286,653 USD 318,121 03/24/00 $ (17,197)
Euro Dollars................................................ 5,844,494 USD 6,036,778 03/24/00 (310,160)
Euro Dollars................................................ 152,964 USD 158,012 03/24/00 (8,133)
Japanese Yen................................................ 2,055,829,228 USD 19,691,851 03/24/00 (367,987)
U.S. Dollars................................................ 3,628,549 AUD 2,381,780 03/24/00 64,870
U.S. Dollars................................................ 4,764,505 CAD 3,274,011 03/24/00 (12,378)
U.S. Dollars................................................ 12,637,185 DKK 1,759,196 03/24/00 96,144
U.S. Dollars................................................ 627,021 GBP 1,032,077 03/24/00 17,003
U.S. Dollars................................................ 3,236,405 NOK 401,838 03/24/00 11,416
U.S. Dollars................................................ 12,386,393 SEK 1,457,223 03/24/00 45,993
---------
$(480,429)
=========
</TABLE>
CURRENCY TYPE ABBREVIATIONS:
AUD Australian Dollars.
CAD Canadian Dollars.
DKK Danish Kronas.
GBP British Pounds.
NOK Norwegian Krone.
SEK Swedish Krona.
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......................... 76.32% 4.92%
Repurchase agreements....................................... -- 0.38
Bank and other financial institutions....................... 4.17 1.53
Industrial.................................................. 12.68 --
------ ------
93.17% 6.83%
====== ======
</TABLE>
See accompanying notes to financial statements
51
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--98.45%
AGRICULTURE, FOOD & BEVERAGE--2.03%
40,600 Owens-Illinois, Inc.*.......................................................... $ 743,487
120,000 PepsiCo, Inc. ................................................................. 4,095,000
165,500 Tyson Foods Inc. .............................................................. 2,265,281
------------
7,103,768
------------
BANKS--6.38%
114,811 AmSouth Bancorp. .............................................................. 2,002,017
181,517 FleetBoston Financial Corp. ................................................... 5,706,441
139,000 Hibernia Corp. ................................................................ 1,459,500
77,800 PNC Bank Corp. ................................................................ 3,734,400
122,658 US Bancorp..................................................................... 2,721,474
166,900 Wells Fargo and Co. ........................................................... 6,676,000
------------
22,299,832
------------
CHEMICALS--3.26%
52,700 Eastman Chemical Co. .......................................................... 2,101,412
46,100 E.I. du Pont de Nemours and Co. ............................................... 2,719,900
203,900 IMC Global Inc.(1)............................................................. 3,338,862
137,400 Lyondell Chemical Co. ......................................................... 1,485,638
43,100 Praxair Inc. .................................................................. 1,748,244
------------
11,394,056
------------
COMPUTER HARDWARE--5.53%
296,600 Compaq Computer Corp. ......................................................... 8,119,425
59,700 Gateway, Inc.*(1).............................................................. 3,652,894
38,800 Lexmark International Group, Inc.*............................................. 3,656,900
187,300 Xerox Corp. ................................................................... 3,909,887
------------
19,339,106
------------
COMPUTER SOFTWARE--2.53%
300,700 Compuware Corp.*............................................................... 6,371,081
77,000 Unisys Corp.*.................................................................. 2,454,375
------------
8,825,456
------------
CONSTRUCTION--4.97%
25,900 Armstrong World Industries, Inc.(1)............................................ 592,463
83,800 Champion Enterprises Inc.*..................................................... 644,213
61,000 Fleetwood Enterprises Inc. .................................................... 995,062
76,400 Lafarge Corp. ................................................................. 1,843,150
57,160 Martin Marietta, Inc. ......................................................... 2,400,720
298,300 Masco Corp. ................................................................... 5,947,356
66,064 Southdown, Inc. ............................................................... 3,307,329
43,800 USG Corp.(1)................................................................... 1,647,975
------------
17,378,268
------------
CONSUMER DURABLES--0.90%
65,200 Grainger (W. W.) Inc. ......................................................... 3,125,525
------------
DEFENSE/AEROSPACE--1.16%
178,200 Raytheon Co.(1)................................................................ 4,065,187
------------
DRUGS & MEDICINE--6.29%
155,300 Allergan, Inc. ................................................................ 8,852,100
38,475 Covance Inc.*.................................................................. 531,436
63,200 Genzyme Corp.*................................................................. 3,286,400
137,100 Monsanto Co. .................................................................. 4,841,344
111,200 Watson Pharmaceuticals, Inc.*.................................................. 4,482,750
------------
21,994,030
------------
ELECTRIC UTILITIES--6.82%
259,700 Central & South West Corp.(1).................................................. 5,242,694
88,200 CMS Energy Corp.(1)............................................................ 2,646,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
ELECTRIC UTILITIES--(CONCLUDED)
131,300 Dominion Resources Inc. ....................................................... $ 5,481,775
130,000 Entergy Corp. ................................................................. 3,241,875
118,000 PECO Energy Co. ............................................................... 4,911,750
65,000 Texas Utilities Co. ........................................................... 2,299,375
------------
23,823,469
------------
ELECTRICAL EQUIPMENT--2.10%
53,735 Motorola, Inc. ................................................................ 7,348,261
------------
ENERGY SOURCES--1.42%
59,200 Exxon Mobil Corp. ............................................................. 4,943,200
------------
FINANCIAL SERVICES--2.71%
155,575 AON Corp.(1)................................................................... 4,025,503
154,800 Household International, Inc. ................................................. 5,456,700
------------
9,482,203
------------
FOOD RETAIL--1.30%
57,100 Delhaize America Inc. ......................................................... 1,024,231
202,800 Kroger Co.*(1)................................................................. 3,523,650
------------
4,547,881
------------
FOREST PRODUCTS, PAPER--4.90%
29,800 Champion International Corp.(1)................................................ 1,743,300
165,700 Fort James Corp. .............................................................. 4,432,475
105,300 Kimberly Clark Corp. .......................................................... 6,522,019
61,300 Mead Corp. .................................................................... 2,283,425
77,700 Westvaco Corp. ................................................................ 2,131,894
------------
17,113,113
------------
FREIGHT, AIR, SEA & LAND--3.44%
303,500 FedEx Corp.*(1)................................................................ 12,007,219
------------
HEAVY ELECTRIC--2.26%
34,700 CommScope Inc.*................................................................ 1,320,769
119,200 Emerson Electric Co.(1)........................................................ 6,563,450
------------
7,884,219
------------
HOUSEHOLD PRODUCTS--2.36%
78,100 Dial Corp. .................................................................... 1,254,481
47,100 National Service Industries, Inc. ............................................. 1,171,613
194,400 Newell Rubbermaid Inc.(1)...................................................... 5,832,000
------------
8,258,094
------------
INDUSTRIAL PARTS--4.17%
98,400 American Standard Companies Inc.*(1)........................................... 3,690,000
119,300 Illinois Tool Works, Inc. ..................................................... 6,979,050
64,900 Pentair Inc. .................................................................. 2,174,150
71,800 York International Corp. ...................................................... 1,727,687
------------
14,570,887
------------
INDUSTRIAL SERVICES & SUPPLIES--1.02%
38,300 Gatx Corp. .................................................................... 1,101,125
94,000 Viad Corp. .................................................................... 2,473,375
------------
3,574,500
------------
INFORMATION & COMPUTER SERVICES--6.08%
65,400 Computer Sciences Corp.*....................................................... 6,008,625
132,300 Electronic Data Systems Corp.*................................................. 8,946,787
128,120 First Data Corp.(1)............................................................ 6,285,888
------------
21,241,300
------------
</TABLE>
52
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON) STOCKS--(CONCLUDED)
LEISURE--0.70%
232,500 Mattel, Inc. .................................................................. $ 2,426,719
------------
LIFE INSURANCE--3.34%
116,100 CIGNA Corp. ................................................................... 8,330,175
46,800 Lincoln National Corp. ........................................................ 1,728,675
64,000 Torchmark, Inc. ............................................................... 1,612,000
------------
11,670,850
------------
LONG DISTANCE & PHONE COMPANIES--1.37%
111,300 SBC Communications, Inc. ...................................................... 4,799,812
------------
MEDICAL PRODUCTS--4.16%
126,100 Alza Corp.*.................................................................... 4,500,194
104,800 Baxter International Inc. ..................................................... 6,694,100
135,300 St. Jude Medical, Inc.*........................................................ 3,357,131
------------
14,551,425
------------
MEDICAL PROVIDERS--1.45%
95,600 United Healthcare Corp. ....................................................... 5,066,800
------------
MOTOR VEHICLES--2.47%
132,700 Federal Mogul Corp. ........................................................... 2,007,088
61,600 Johnson Controls, Inc. ........................................................ 3,403,400
114,500 Lear Corp.*.................................................................... 3,213,156
------------
8,623,644
------------
OIL REFINING--0.62%
98,516 Ultramar Diamond Shamrock Corp. ............................................... 2,155,037
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
PUBLISHING--0.79%
60,500 New York Times Co.(1).......................................................... $ 2,764,094
------------
RAILROADS--4.12%
478,500 Burlington Northern Santa Fe Inc. ............................................. 11,513,906
169,400 Norfolk Southern Corp.(1)...................................................... 2,879,800
------------
14,393,706
------------
SECURITIES & ASSET MANAGEMENT--0.40%
47,000 Reliastar Financial Corp. ..................................................... 1,395,313
------------
SEMICONDUCTOR--2.09%
201,600 Advanced Micro Devices, Inc.*(1)............................................... 7,308,000
------------
SPECIALTY RETAIL--1.94%
78,800 Circuit City Stores, Inc. ..................................................... 3,033,800
117,700 Consolidated Stores Corp.*..................................................... 1,677,225
50,000 Federated Department Stores, Inc.*............................................. 2,081,250
------------
6,792,275
------------
THRIFT--1.04%
183,700 Greenpoint Financial Corp.(1).................................................. 3,639,556
------------
TOBACCO--0.44%
74,000 Philip Morris Companies, Inc. ................................................. 1,549,375
------------
WIRELESS TELECOMMUNICATIONS--1.89%
62,100 Nextel Communications, Inc.*................................................... 6,605,888
------------
Total Common Stocks (cost--$374,871,200).................................................. 344,062,068
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
- --------- -------------------- --------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--0.29%
$ 1,000 U.S. Treasury Bills+ (cost--$999,737)... 02/03/00 4.740@ 999,728
------------
REPURCHASE AGREEMENT--1.63%
5,705 Repurchase Agreement dated 01/31/00 with
State Street Bank & Trust Co.,
collateralized by $5,664,497 U.S.
Treasury Notes, 6.00% due 08/15/00
(value--$5,820,271); proceeds:
$5,705,713
(cost--$5,705,000).................... 02/01/00 4.500 5,705,000
------------
Total Investments (cost--$381,575,937)--100.37%.... 350,766,796
Liabilities in excess of other assets--(0.37)%..... (1,283,391)
------------
Net Assets--100.00%................................ $349,483,405
============
</TABLE>
- -----------------
* Non-Income producing security.
+ Entire or partial amount pledged as collateral for future transactions.
@ Interest rate shown is discount rate at date of purchase.
(1) Security, or portion thereof, was on loan at January 31, 2000.
FUTURES CONTRACTS
<TABLE>
<CAPTION>
NUMBER OF IN UNREALIZED
CONTRACTS CONTRACTS TO RECEIVE EXCHANGE FOR EXPIRATION DATE DEPRECIATION
- ---------- -------------------- ---------------- ---------------- -------------
<C> <S> <C> <C> <C>
16 S&P 500............. $3,245,288 March 2000 $(228,327)
=========
</TABLE>
See accompanying notes to financial statements
53
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--99.93%
AGRICULTURE, FOOD & BEVERAGE--0.98%
73,700 Coca-Cola Co. ...................................................................................... $ 4,233,144
------------
APPAREL, RETAIL--1.10%
106,700 Gap, Inc. .......................................................................................... 4,768,156
------------
BANKS--6.35%
68,400 BankAmerica Corp. .................................................................................. 3,313,125
85,800 Chase Manhattan Corp. .............................................................................. 6,901,538
300,323 Citigroup, Inc. .................................................................................... 17,249,802
------------
27,464,465
------------
CHEMICALS--1.25%
96,000 Sealed Air Corp. ................................................................................... 5,388,000
------------
COMPUTER HARDWARE--10.14%
197,550 Cisco Systems, Inc.*................................................................................ 21,631,725
372,000 Dell Computer Corp.*................................................................................ 14,298,750
41,500 International Business Machines..................................................................... 4,655,781
64,100 3Com Corp.* ........................................................................................ 3,253,075
------------
43,839,331
------------
COMPUTER SOFTWARE--5.67%
193,700 Microsoft Corp.*.................................................................................... 18,958,387
111,600 Oracle Corp.* ...................................................................................... 5,574,769
------------
24,533,156
------------
CONSTRUCTION--0.77%
167,300 Masco Corp. (1)..................................................................................... 3,335,544
------------
DIVERSIFIED RETAIL--4.38%
169,800 Kohls Corp.*........................................................................................ 11,907,225
128,100 Wal-Mart Stores, Inc. .............................................................................. 7,013,475
------------
18,920,700
------------
DRUGS & MEDICINE--9.96%
200,900 Bristol-Myers Squibb Co. ........................................................................... 13,259,400
135,500 Pfizer, Inc. ....................................................................................... 4,928,813
349,100 Schering-Plough Corp. .............................................................................. 15,360,400
100,300 Warner Lambert Co. ................................................................................. 9,522,231
------------
43,070,844
------------
ELECTRIC UTILITIES--1.57%
84,600 AES Corp.* (1)...................................................................................... 6,778,575
------------
ELECTRICAL EQUIPMENT--8.43%
156,100 Honeywell, Inc. .................................................................................... 7,492,800
72,800 Nokia Corp. ADR..................................................................................... 13,322,400
215,000 Solectron Corp.*.................................................................................... 15,614,375
------------
36,429,575
------------
ENTERTAINMENT--1.12%
107,500 Carnival Corp. ..................................................................................... 4,844,219
------------
FINANCIAL SERVICES--6.50%
195,500 Associates First Capital Corp. ..................................................................... 3,910,000
125,000 General Electric Co. (1)............................................................................ 16,671,875
298,150 MBNA Corp. ......................................................................................... 7,528,287
------------
28,110,162
------------
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
FOOD RETAIL--1.83%
455,600 Kroger Co.* (1)..................................................................................... $ 7,916,050
------------
HOUSEHOLD PRODUCTS--1.96%
143,300 Colgate-Palmolive Co. .............................................................................. 8,490,525
------------
INDUSTRIAL PARTS--0.99%
80,800 United Technologies Corp. .......................................................................... 4,277,350
------------
INFORMATION & COMPUTER SERVICES--3.53%
101,000 America Online Inc.* (1)............................................................................ 5,750,688
67,500 Computer Sciences Corp.*............................................................................ 6,201,562
31,500 PSINet Inc.* (1).................................................................................... 2,516,063
2,500 Yahoo, Inc.* ....................................................................................... 805,156
------------
15,273,469
------------
LEISURE--1.83%
112,600 Harley Davidson Inc. (1)............................................................................ 7,903,113
------------
LONG DISTANCE & PHONE COMPANIES--7.00%
319,700 AT&T Liberty Media Corp. (1)........................................................................ 16,344,662
215,000 Sprint Corp. ....................................................................................... 13,907,813
------------
30,252,475
------------
MEDIA--4.30%
71,900 Amfm Inc.* ......................................................................................... 5,608,200
70,000 Mediaone Group, Inc.*............................................................................... 5,565,000
92,700 Time Warner, Inc. (1)............................................................................... 7,410,206
------------
18,583,406
------------
MEDICAL PRODUCTS--5.97%
197,000 Medtronic, Inc. .................................................................................... 9,012,750
393,400 Tyco International Ltd. ............................................................................ 16,817,850
------------
25,830,600
------------
OTHER INSURANCE--2.47%
102,700 American International Group, Inc. (1).............................................................. 10,693,637
------------
SECURITIES & ASSET MANAGEMENT--2.45%
159,800 Morgan Stanley Dean Witter Discover & Co. .......................................................... 10,586,750
------------
SEMICONDUCTOR--6.60%
119,200 Altera Corp.* (1)................................................................................... 7,837,400
201,200 Intel Corp. (1)..................................................................................... 19,906,225
3,900 JDS Uniphase Corp.* ................................................................................ 795,356
------------
28,538,981
------------
SPECIALTY RETAIL--2.78%
177,350 Home Depot, Inc. ................................................................................... 10,042,444
27,000 Tiffany & Co. ...................................................................................... 1,998,000
------------
12,040,444
------------
Total Common Stocks (cost--$313,450,549)....................................................................... 432,102,671
------------
</TABLE>
54
<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--0.10%
$ 436 Repurchase Agreement dated 1/31/2000 with State Street
Bank & Trust Co., collateralized by $432,905 U.S.
Treasury Notes, 6.00% due 8/15/00 (value--$444,810);
proceeds: $436,055
(cost--$436,000).......................................... 02/01/00 4.500% $ 436,000
------------
432,538,671
Total Investments (cost--$313,886,549)--100.03%........................
(126,783)
Liabilities in excess of other assets--(0.03)%.........................
------------
Net Assets--100.00%.................................................... $432,411,888
============
</TABLE>
- -----------------
* Non-Income producing security.
ADR American Depositary Receipt.
(1) Security, or a portion thereof, was on loan at January 31, 2000.
See accompanying notes to financial statements
55
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--94.82%
AGRICULTURE, FOOD & BEVERAGE--4.28%
9,700 Andersons Inc. .................................................................................... $ 73,356
146,400 McCormick & Company Inc. .......................................................................... 3,870,450
13,700 Nash Finch Co. .................................................................................... 113,881
18,950 Pilgrims Pride Corp., Class A...................................................................... 106,594
37,900 Pilgrims Pride Corp., Class B...................................................................... 288,987
16,600 Sanderson Farms Inc. .............................................................................. 131,762
5,500 Suprema Specialties Inc.*.......................................................................... 57,063
9,300 Sylvan, Inc.*...................................................................................... 81,375
284,300 Whitman Corp. ..................................................................................... 3,571,519
20,000 WLR Foods Inc.*.................................................................................... 110,000
------------
8,404,987
------------
AIRLINES--0.57%
3,500 Alaska Air Group, Inc.*............................................................................ 111,562
44,700 America West Holding Corp.*........................................................................ 799,012
7,100 Amtran Inc.*....................................................................................... 110,938
49,600 Hawaiian Airlines Inc.*............................................................................ 96,100
------------
1,117,612
------------
ALCOHOL--0.03%
1,200 Golden State Vintners, Inc.*....................................................................... 5,550
5,900 Todhunter International Inc.*...................................................................... 51,625
------------
57,175
------------
APPAREL, RETAIL--0.42%
3,000 Finish Line Inc.*.................................................................................. 17,250
27,400 Genesco Inc.*...................................................................................... 239,750
40,200 Goodys Family Clothing Inc.*....................................................................... 194,719
8,200 Jos. A. Bank Clothiers, Inc.*...................................................................... 28,700
12,400 One Price Clothing Stores Inc.*.................................................................... 38,750
13,100 Paul Harris Stores Inc.*........................................................................... 39,709
3,100 Premiumwear Inc.*.................................................................................. 16,663
5,700 S & K Famous Brands Inc.*.......................................................................... 37,762
7,700 Shoe Carnival, Inc.*............................................................................... 62,322
14,200 Syms Corp.*........................................................................................ 63,900
3,600 United Retail Group Inc.*.......................................................................... 35,550
3,800 Wet Seal Inc.*..................................................................................... 47,500
------------
822,575
------------
APPAREL, TEXTILES--1.25%
10,800 Brown Shoe Inc. ................................................................................... 112,050
64,000 Burlington Industries Inc.*........................................................................ 200,000
32,700 Chaus Bernard Inc.*................................................................................ 61,312
8,925 Conso International Corp.*......................................................................... 76,978
4,100 Culp, Inc. ........................................................................................ 25,112
6,300 Dan River Inc.*.................................................................................... 29,925
3,832 Decorator Industries, Inc. ........................................................................ 19,400
14,700 Dixie Group Inc.*.................................................................................. 91,875
6,400 Garan Inc. ........................................................................................ 183,200
9,500 Gerber Childrenswear Inc.*......................................................................... 43,344
1,800 Hallwood Group Inc.*............................................................................... 19,688
4,600 Hampshire Group, Ltd.*............................................................................. 42,550
5,800 K-Swiss, Inc. ..................................................................................... 71,775
19,600 Kellwood Co. ...................................................................................... 345,450
10,600 Maxwell Shoe Inc.*................................................................................. 87,450
15,700 Movie Star Inc.*................................................................................... 12,756
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
APPAREL, TEXTILES--(CONCLUDED)
15,300 Nautica Enterprises Inc.*.......................................................................... $ 136,744
9,600 Oxford Industries Inc. ............................................................................ 165,600
8,100 Perry Ellis International Inc.*.................................................................... 92,391
17,200 Pillowtex Corp.* (1)............................................................................... 73,100
5,200 Sport Haley Inc.*.................................................................................. 22,100
6,900 Tandy Brands Accessories Inc.*..................................................................... 103,500
3,900 Tarrant Apparel Group*............................................................................. 24,375
4,900 Westpoint Stevens Inc. ............................................................................ 80,544
3,600 Weyco Group Inc. .................................................................................. 86,400
27,700 Wolverine World Wide Inc. ......................................................................... 252,762
------------
2,460,381
------------
BANKS--1.23%
1,100 American Bank Inc. ................................................................................ 24,200
25,000 Commercial Federal Corp. .......................................................................... 362,500
17,500 Corus Bank Shares Inc. ............................................................................ 434,219
18,600 Delta Financial Corp.*............................................................................. 76,725
12,800 First Citizens Bancshares, Inc. ................................................................... 779,200
3,200 GBC Bancorp........................................................................................ 62,400
6,800 Merchants Bancshares Inc. ......................................................................... 144,500
10,600 National City Bancorp. ............................................................................ 185,500
2,600 Northrim Bank Alaska............................................................................... 23,481
9,700 Sterling Financial Corp.*.......................................................................... 112,763
16,100 U.S. Bancorp, Inc. ................................................................................ 171,062
2,600 Yardville National Bancorp......................................................................... 28,275
------------
2,404,825
------------
CHEMICALS--2.57%
4,100 American Biltrite Inc. ............................................................................ 57,913
3,000 American Vanguard Corp. ........................................................................... 20,250
4,800 Ameron, Inc. ...................................................................................... 187,200
1,000 Associate Materials Inc. .......................................................................... 13,250
24,000 Avery Dennison Corp. .............................................................................. 1,626,000
9,600 Bairnco Corp. ..................................................................................... 62,400
10,600 Congoleum Corp.*................................................................................... 37,100
101,100 Ethyl Corp. ....................................................................................... 385,444
50,400 Gencorp Inc. ...................................................................................... 409,500
21,500 General Chemical Group Inc. ....................................................................... 48,375
5,020 Gentek, Inc. ...................................................................................... 1,293
12,200 Ivex Packaging Corp.*.............................................................................. 92,262
3,900 Lydall Inc.*....................................................................................... 29,250
61,600 NL Industries Inc. ................................................................................ 889,350
50,400 Omnova Solutions Inc. ............................................................................. 378,000
8,100 Patrick Industries Inc. ........................................................................... 95,175
10,800 Quaker Chemical.................................................................................... 155,925
5,300 Raven Industries Inc. ............................................................................. 76,187
11,700 Stepan Chemical Co. ............................................................................... 257,400
5,200 Summa Industries*.................................................................................. 57,200
7,500 Sybron Chemicals Inc.*............................................................................. 105,937
3,400 Wynn's International Inc. ......................................................................... 53,125
------------
5,038,536
------------
COMPUTER HARDWARE--1.87%
14,400 Amplicon Inc. ..................................................................................... 158,400
9,400 Gradco Systems Inc.*............................................................................... 19,388
29,800 Inacom Corp.*...................................................................................... 141,550
</TABLE>
56
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
COMPUTER HARDWARE--(CONCLUDED)
4,100 McRae Industries Inc. ............................................................................. $ 22,037
21,100 Paravant Inc.*..................................................................................... 59,344
49,000 Pitney Bowes, Inc. ................................................................................ 2,401,000
14,400 PSC Inc.*.......................................................................................... 115,200
15,200 Savoir Technology Group Inc.* (1).................................................................. 105,450
17,000 Splash Technology Holdings Inc.*................................................................... 228,437
43,300 Systemax Inc.*..................................................................................... 408,644
------------
3,659,450
------------
COMPUTER SOFTWARE--0.54%
19,100 Alternative Resources Corp.*....................................................................... 82,369
40,400 Avant Corp.*....................................................................................... 719,625
6,100 CFI Proservices Inc.*.............................................................................. 52,231
9,600 Comdial Corp.*..................................................................................... 114,000
2,700 Cotelligent, Inc.*................................................................................. 14,175
4,300 Software Spectrum, Inc.* (1)....................................................................... 69,875
------------
1,052,275
------------
CONSTRUCTION--6.08%
22,300 American Homestar Corp.*........................................................................... 66,900
10,100 Beazer Homes USA, Inc.*............................................................................ 185,587
8,500 Butler Manufacturing Co. .......................................................................... 191,250
10,500 Cameron Ashley Building Products, Inc.*............................................................ 145,031
21,720 Cavalier Homes Inc. ............................................................................... 85,523
14,400 Champion Enterprise Inc.*.......................................................................... 110,700
8,600 CoorsTek, Inc.*.................................................................................... 154,800
77,200 D.R. Horton Inc. (1)............................................................................... 892,625
7,200 Dayton Superior Corp.*............................................................................. 166,050
6,100 Dominion Homes Inc.*............................................................................... 32,406
13,800 Drew Industries Inc.*.............................................................................. 129,375
13,500 Engle Homes Inc. .................................................................................. 143,438
3,500 Granite Construction Inc. ......................................................................... 69,781
33,800 Hovnanian Enterprises Inc.*........................................................................ 211,250
5,200 International Aluminum Corp. ...................................................................... 118,300
10,700 M/I Schottenstein Homes, Inc. ..................................................................... 139,100
19,900 M.D.C. Holdings, Inc. ............................................................................. 281,087
2,700 Meadow Valley Corp.*............................................................................... 10,125
4,300 Miller Building Systems Inc.*...................................................................... 21,500
13,100 Morrison Knudsen Corp.*............................................................................ 96,613
21,900 NCI Building Systems Inc.*......................................................................... 331,237
3,800 Nobility Homes Inc.*............................................................................... 21,375
13,200 NVR Inc.*.......................................................................................... 597,300
13,600 Palm Harbor Homes Inc.*............................................................................ 211,650
5,000 Park Ohio Holdings Corp.*.......................................................................... 46,563
6,900 Perini Corp.*...................................................................................... 31,913
25,100 Pulte Corp. ....................................................................................... 437,681
1,800 Railworks Corp.*................................................................................... 18,900
2,400 Resortquest International Inc.*.................................................................... 11,700
13,100 Robertson Ceco Corp.*.............................................................................. 128,544
190,900 Rouse Co. ......................................................................................... 4,247,525
18,000 Ryland Group Inc. ................................................................................. 295,875
4,000 Silverleaf Resorts Inc.*........................................................................... 27,500
10,900 Skyline Corp. ..................................................................................... 224,812
14,700 Southern Energy Homes Inc.*........................................................................ 26,644
35,900 Standard Pacific Corp. ............................................................................ 334,319
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
CONSTRUCTION--(CONCLUDED)
44,100 Toll Brothers Inc.*................................................................................ $ 749,700
8,900 Trammell Crow Co.*................................................................................. 99,013
16,200 United States Home Corp.*.......................................................................... 387,787
9,400 Washington Homes Inc.*............................................................................. 50,525
22,000 Webb Delaware Corp.*............................................................................... 401,500
------------
11,933,504
------------
CONSUMER DURABLES--4.92%
12,900 Chromcraft Revington Inc.*......................................................................... 120,131
12,200 Flexsteel Industries Inc. ......................................................................... 150,975
189,200 Herman Miller Inc. ................................................................................ 4,126,925
8,900 Home Products International Inc.*.................................................................. 116,952
63,900 Interface, Inc. ................................................................................... 311,512
185,400 Leggett & Platt, Inc. ............................................................................. 3,337,200
114,800 Pier 1 Imports Inc. ............................................................................... 947,100
2,100 Pulaski Furniture Corp. ........................................................................... 36,750
16,390 Rowe Furniture Corp. .............................................................................. 141,364
19,900 Royal Appliance Manufacturing Co.*................................................................. 101,988
8,600 Stanley Furniture Co., Inc.*....................................................................... 154,800
19,400 Sullivan Industries Holdings Inc.*................................................................. 11,058
6,788 Virco Manufacturing Corp. ......................................................................... 85,274
------------
9,642,029
------------
DEFENSE & AEROSPACE--0.60%
4,900 Curtiss Wright Corp. .............................................................................. 174,869
1,300 Ducommun Inc.*..................................................................................... 14,056
8,100 EDO Corp. ......................................................................................... 53,662
6,200 Herley Industries, Inc.*........................................................................... 86,025
1,900 International Airline Support Inc.*................................................................ 5,938
6,900 Kellstrom Industries Inc.*......................................................................... 58,219
1,000 LMI Aerospace Inc.*................................................................................ 3,625
29,100 Precision Castparts Corp. ......................................................................... 745,687
6,000 SIFCO Industries, Inc. ............................................................................ 40,500
------------
1,182,581
------------
DIVERSIFIED RETAIL--0.37%
18,500 Bon Ton Stores Inc.*............................................................................... 67,063
8,700 Elder Beerman Stores Corp.*........................................................................ 43,500
45,900 Homebase Inc.*..................................................................................... 146,306
20,700 RDO Equipment Co.*................................................................................. 122,906
17,600 Shopko Stores, Inc.*............................................................................... 322,300
5,300 Specialty Catalog Corp.*........................................................................... 22,525
------------
724,600
------------
DRUGS & MEDICINE--0.66%
3,000 Amerisource Health Corp.*.......................................................................... 54,375
300 Chattem, Inc.*..................................................................................... 5,872
63,266 Herbalife International Inc., Class A.............................................................. 933,173
19,533 Herbalife International Inc., Class B.............................................................. 288,112
7,100 Natural Alternatives International Inc.*........................................................... 14,200
------------
1,295,732
------------
ELECTRIC UTILITIES--0.99%
8,900 Bangor Hydro Electric Co. ......................................................................... 131,275
14,271 Lennox International Inc. ......................................................................... 133,791
400 Maine Public Service Co. .......................................................................... 6,750
</TABLE>
57
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
ELECTRIC UTILITIES--(CONCLUDED)
49,300 Public Service Co. of New Mexico................................................................... $ 782,637
43,500 RGS Energy Group Inc. ............................................................................. 878,156
------------
1,932,609
------------
ELECTRICAL POWER--0.67%
5,700 Aztec Manufacturing Co. ........................................................................... 59,850
10,100 Carbide/Graphite Group Inc.*....................................................................... 67,544
12,400 Cherry Corp.*...................................................................................... 186,000
28,300 Hughes Supply, Inc. ............................................................................... 498,787
10,500 Lamson & Sessions Co.*............................................................................. 68,250
2,800 Lincoln Electric Holdings Inc. .................................................................... 54,775
5,400 Woodhead Industries................................................................................ 67,500
13,400 Woodward Governor Co. ............................................................................. 309,038
------------
1,311,744
------------
ELECTRONIC COMPONENTS--0.23%
7,100 Axsys Technologies Inc.*........................................................................... 86,975
3,100 SLI, Inc. ......................................................................................... 36,425
14,200 Triumph Group Inc.*................................................................................ 325,713
------------
449,113
------------
ENTERTAINMENT--0.94%
40,100 Carnival Corp. .................................................................................... 1,807,006
3,500 Funco, Inc.*....................................................................................... 36,094
------------
1,843,100
------------
ENVIRONMENTAL SERVICES--0.25%
7,100 Exponent Inc.*..................................................................................... 51,475
13,300 IT Group, Inc.*.................................................................................... 101,412
1,600 Met-Pro Corp. ..................................................................................... 16,000
28,700 Ogden Corp.*....................................................................................... 324,669
------------
493,556
------------
FINANCIAL SERVICES--3.28%
30,700 Advanta Corp. (1).................................................................................. 567,950
59,000 Amresco Inc.*...................................................................................... 81,125
47,500 Arcadia Financial Ltd.*............................................................................ 222,656
28,000 Bluegreen Corp.*................................................................................... 105,000
5,100 CCBT Financial Companies Inc. ..................................................................... 73,631
19,000 Consumer Portfolio Services Inc.*.................................................................. 29,094
3,800 DeWolfe Companies, Inc.*........................................................................... 24,700
14,500 Ezcorp Inc. ....................................................................................... 64,344
22,000 First Alliance Co.*................................................................................ 45,375
25,200 Gallagher (Arthur J.)& Co. ........................................................................ 1,354,500
500 Hawthorne Financial Corp.*......................................................................... 4,875
9,200 Kaye Group Inc. ................................................................................... 72,450
12,100 Main St. & Main Inc.*.............................................................................. 38,569
1,800 Matrix Bancorp Inc.*............................................................................... 21,825
127,800 MBNA Corp. ........................................................................................ 3,226,950
22,700 MIM Corp.*......................................................................................... 131,944
3,700 New Century Financial Corp.*....................................................................... 37,462
3,600 Onyx Acceptance Corp.*............................................................................. 21,600
3,200 Pacific Crest Capital Inc. ........................................................................ 36,400
5,900 Refac*............................................................................................. 29,869
26,350 Resource Bank Shares Mortgage Group Inc. .......................................................... 107,870
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
FINANCIAL SERVICES--(CONCLUDED)
1,300 TFC Enterprises, Inc.*............................................................................. $ 4,388
1,700 Union Acceptance Corp.*............................................................................ 10,731
23,000 World Acceptance Corp.*............................................................................ 115,000
------------
6,428,308
------------
FOOD RETAIL--0.19%
31,000 7 Eleven Inc.*..................................................................................... 83,313
25,000 M & F Worldwide Corp.*............................................................................. 131,250
8,700 Marsh Supermarkets Inc. ........................................................................... 123,975
3,650 Schultz Sav-O Stores, Inc. ........................................................................ 42,431
------------
380,969
------------
FOREST PRODUCTS, PAPER--0.42%
34,400 ACX Technologies, Inc.*............................................................................ 184,900
3,000 Baltek Corp.*...................................................................................... 24,750
6,400 BCT International Inc.*............................................................................ 12,400
9,450 Fibermark Inc.*.................................................................................... 99,816
1,000 Quipp Inc.*........................................................................................ 15,500
14,290 Republic Group Inc. ............................................................................... 189,342
19,100 Schweitzer Mauduit International Inc. ............................................................. 272,175
1,500 Universal Forest Products, Inc. ................................................................... 18,750
1,100 Wickes Co.*........................................................................................ 6,600
------------
824,233
------------
FREIGHT, AIR, SEA & LAND--1.97%
23,800 Arkansas Best Corp.*............................................................................... 282,625
34,900 Arnold Industries Inc. ............................................................................ 471,150
4,300 Boyd Brothers Transportation Inc.*................................................................. 30,100
8,500 Consolidated Delivery & Logistics Inc.*............................................................ 26,563
27,400 Consolidated Freightways Corp.*.................................................................... 159,262
12,500 Covenant Transport, Inc., Class A*................................................................. 167,187
12,200 Dynamex Inc.* (2).................................................................................. 0
5,800 Genesee & Wyoming Inc.*............................................................................ 73,225
20,600 Kitty Hawk Inc.*................................................................................... 141,625
12,200 Landstar Systems Inc.*............................................................................. 574,925
14,200 Old Dominion Freight Lines Inc.*................................................................... 168,625
10,200 PAM Transportation Services Inc.*.................................................................. 102,638
36,500 Roadway Express Inc. .............................................................................. 839,500
6,100 Smithway Motor Xpress Corp.*....................................................................... 23,638
8,100 Transport Corp. of America*........................................................................ 123,525
17,800 U.S. Xpress Enterprises Inc.*...................................................................... 115,700
11,300 USA Truck Inc.*.................................................................................... 97,109
30,100 Yellow Corp.*...................................................................................... 459,025
------------
3,856,422
------------
GAS UTILITY--0.04%
3,850 Energysouth Inc. .................................................................................. 73,150
------------
HEALTH & PERSONAL CARE--0.01%
5,400 Hawaii Tech Pharmacal Company Inc.*................................................................ 24,638
------------
HEAVY MACHINERY--0.53%
13,800 Cascade Corp. ..................................................................................... 139,725
16,400 Columbus McKinnon Corp. ........................................................................... 223,450
7,800 Gehl Co.*.......................................................................................... 145,275
9,900 NACCO Industries Inc. ............................................................................. 502,425
</TABLE>
58
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
COMMON STOCKS--(CONTINUED)
HEAVY MACHINERY--(CONCLUDED)
<C> <S> <C>
1,300 Richton International Corp.*....................................................................... $ 20,556
------------
1,031,431
------------
HOTELS--0.71%
4,500 Black Hawk Gaming & Development Inc.*.............................................................. 27,000
74,900 Boyd Gaming Corp.*................................................................................. 397,906
5,900 Lady Luck Gaming Corp.* (1)........................................................................ 65,638
12,825 Lakes Gaming Inc.*................................................................................. 118,631
33,900 Lodgian Inc.*...................................................................................... 137,719
6,784 Playcore Inc.*..................................................................................... 50,880
62,500 Prime Hospitality Corp.*........................................................................... 492,187
18,700 Suburban Lodges America Inc.*...................................................................... 95,838
------------
1,385,799
------------
HOUSEHOLD PRODUCTS--3.98%
69,000 Clorox Co. (1)..................................................................................... 3,294,750
7,500 CPAC Inc. ......................................................................................... 57,188
31,700 Fortune Brands, Inc. .............................................................................. 919,300
16,700 French Fragrances Inc.* (1)........................................................................ 108,550
24,700 Jason Inc.*........................................................................................ 256,262
15,200 Lifetime Hoan Corp. ............................................................................... 95,000
102,400 Newell Rubbermaid, Inc. ........................................................................... 3,072,000
4,900 Styling Technology Corp.*.......................................................................... 2,756
------------
7,805,806
------------
INDUSTRIAL SERVICES & SUPPLIES--3.63%
8,900 Amerco*............................................................................................ 231,400
4,100 American Business Products, Inc. .................................................................. 80,975
37,800 Avis Rental A Car Inc.*............................................................................ 803,250
1,400 Butler International Inc.*......................................................................... 14,437
22,000 CDI Corp.*......................................................................................... 512,875
7,400 Childrens Comprehensive Services*.................................................................. 40,700
10,800 Comfort Systems USA Inc.*.......................................................................... 75,600
15,900 Cort Business Services Corp.*...................................................................... 441,225
92,800 Harte-Hanks Co. ................................................................................... 2,209,800
2,800 Headway Corporate Resources Inc.*.................................................................. 12,775
13,350 Healthcare Services Group Inc.*.................................................................... 108,886
1,200 International Aircraft Investors*.................................................................. 7,725
36,350 Interpool Inc. .................................................................................... 261,266
7,900 McGrath Rentcorp. ................................................................................. 132,325
6,000 National Equipment Services Inc.*.................................................................. 37,500
10,100 National Techical Systems Inc. .................................................................... 41,031
34,500 Personnel Group of America Inc.*................................................................... 327,750
12,216 Pittston Brinks Group.............................................................................. 238,212
10,700 RemedyTemp, Inc.*.................................................................................. 230,719
34,700 Rollins Truck Leasing Corp. ....................................................................... 340,494
21,800 Simpson Industries, Inc. .......................................................................... 226,175
15,300 SOS Staffing Services Inc.*........................................................................ 72,675
3,300 Sterile Recoveries Inc.*........................................................................... 19,800
9,100 Sunrise Leasing Corp.*............................................................................. 50,050
7,700 Superior Surgical Manufacturing Inc. .............................................................. 66,412
23,900 Unifirst Corp. .................................................................................... 274,850
10,500 Wallace Computer Series, Inc. ..................................................................... 114,844
19,200 Westaff Inc.*...................................................................................... 142,800
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
INDUSTRIAL SERVICES & SUPPLIES--(CONCLUDED)
680 Zimmerman Sign Co. ................................................................................ $ 2,253
------------
7,118,804
------------
INFORMATION & COMPUTER SERVICES--3.11%
25,600 Advo Inc.*......................................................................................... 665,600
8,900 Amrep Corp.*....................................................................................... 41,163
14,600 Caere Corp.*....................................................................................... 127,750
9,300 Corrpro Companies Inc.*............................................................................ 53,475
158,500 Equifax, Inc. ..................................................................................... 3,407,750
5,800 FTI Consulting, Inc.*.............................................................................. 35,525
3,795 General Employment Enterprises*.................................................................... 15,654
7,900 Magellan Health Services Inc.*..................................................................... 56,287
10,400 Navigant Consulting, Co.*.......................................................................... 110,500
4,000 SM & A Corp.*...................................................................................... 21,750
12,500 Staff Leasing Inc.*................................................................................ 112,500
49,600 Sun Guard Data Systems*............................................................................ 1,450,800
1,000 Transport Lux Corp................................................................................. 7,625
------------
6,106,379
------------
LEISURE--5.02%
6,050 Boston Acoustics Inc. ............................................................................. 82,809
1,800 Brass Eagle Inc.*.................................................................................. 11,700
8,600 Cannondale Corp.*.................................................................................. 53,750
19,200 Department 56 Inc.*................................................................................ 368,400
4,800 Ellett Brothers Inc. .............................................................................. 33,000
2,300 Escalade Inc.*..................................................................................... 25,588
43,400 GTECH Holdings Corp.*.............................................................................. 965,650
276,800 Hasbro, Inc. ...................................................................................... 4,152,000
178,500 International Game Technology*..................................................................... 3,514,219
8,000 Johnson Worldwide Associates, Inc.*................................................................ 62,000
20,000 K2 Inc.*........................................................................................... 145,000
3,600 Koss Corp.*........................................................................................ 52,650
7,600 OroAmerica Inc.*................................................................................... 48,925
9,900 Russ Berrie & Company Inc. ........................................................................ 243,169
3,400 Sturm Ruger & Co. Inc. ............................................................................ 31,662
5,200 Travis Boats & Motors, Inc.*....................................................................... 59,475
------------
9,849,997
------------
LIFE INSURANCE--0.87%
21,400 American Annuity Group Inc. ....................................................................... 346,412
2,812 Cotton States Life Insurance Co. .................................................................. 21,793
24,881 Delphi Financial Group, Inc.*...................................................................... 821,073
5,800 Independence Holding Co. .......................................................................... 61,625
4,200 National Western Life Insurance Co.*............................................................... 294,000
9,200 Penn Treaty American Corp.*........................................................................ 124,775
9,200 Standard Management Corp.*......................................................................... 46,000
------------
1,715,678
------------
LONG DISTANCE & PHONE COMPANIES--1.91%
98,100 CenturyTel, Inc. .................................................................................. 3,752,325
------------
MACHINERY & ENGINEERING SERVICES--0.01%
2,400 Global Payment Technologies, Inc.*................................................................. 21,600
------------
MANUFACTURING-GENERAL--3.79%
8,100 Alltrista Corp.*................................................................................... 192,881
</TABLE>
59
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
MANUFACTURING-GENERAL--(CONCLUDED)
9,600 Amcast Industrial Corp. ........................................................................... $ 130,800
11,600 Ampco-Pittsburgh Corp. ............................................................................ 127,600
7,500 Aviation Sales Co.* (1)............................................................................ 64,219
6,800 Avteam Inc.*....................................................................................... 38,250
27,800 Baldwin Technology Inc.*........................................................................... 60,812
1,700 Ballantyne Omaha Inc.*............................................................................. 9,881
23,600 Barnes Group Inc. ................................................................................. 343,675
500 Chicago Rivet Machine Co. ......................................................................... 11,500
17,600 Commercial Intertech Corp. ........................................................................ 330,000
1,300 Core Materials Corp.*.............................................................................. 2,438
1,500 CTB International Corp.*........................................................................... 10,125
6,000 Denali Inc.*....................................................................................... 21,000
6,700 Detroit Diesel Corp.*.............................................................................. 105,525
12,200 DT Industries, Inc.*............................................................................... 126,575
8,250 Farr Co.*.......................................................................................... 76,312
6,500 Farrel Corp. ...................................................................................... 13,000
7,900 Featherlite Manufacturing Inc.*.................................................................... 46,413
21,900 Fedders Corp. ..................................................................................... 114,975
25,100 Gentek Inc. ....................................................................................... 243,156
11,600 Gleason Corp. ..................................................................................... 265,350
1,800 Graham Corp.*...................................................................................... 13,950
9,950 Hardinge, Inc. .................................................................................... 128,728
2,300 Hawk Corp.*........................................................................................ 13,225
45,100 Hexcel Corp.*...................................................................................... 236,775
7,200 Hurco Companies Inc.*.............................................................................. 27,900
105,500 Hussmann International Inc. ....................................................................... 1,457,219
18,200 Industrial Holdings Inc.*.......................................................................... 48,913
6,500 JLK Direct Distribution Inc.*...................................................................... 63,375
3,600 K Tron International Inc.*......................................................................... 50,400
28,500 Kaman Corp. ....................................................................................... 274,312
48,700 Mark IV Industries Inc. ........................................................................... 1,013,569
15,400 Media Arts Group Inc.*............................................................................. 73,150
8,700 Mestek, Inc.*...................................................................................... 145,725
44,800 Milacron Inc. ..................................................................................... 540,400
4,200 Nortek, Inc.*...................................................................................... 88,200
2,500 P & F Industries Inc.*............................................................................. 16,250
1,000 Peerless Manufacturing Co. ........................................................................ 14,500
3,200 Q E P Inc.*........................................................................................ 25,200
4,174 Riviera Tool Co.*.................................................................................. 16,173
23,400 Specialty Equipment Companies Inc.*................................................................ 418,275
1,600 SPS Technologies, Inc.*............................................................................ 53,800
1,700 Standard Motor Products Inc. ...................................................................... 27,519
8,200 Starrett LS Co. ................................................................................... 196,800
8,500 TB Woods Corp. .................................................................................... 80,219
7,400 Transtechnology Corp. ............................................................................. 81,400
------------
7,440,464
------------
MANUFACTURING-HIGH TECHNOLOGY--1.77%
6,100 Acme Electric Corp.*............................................................................... 31,644
10,100 Applied Signal Technology Inc. .................................................................... 141,400
7,600 Bel Fuse Inc. ..................................................................................... 159,600
3,900 Bio Rad Laboratories Inc.*......................................................................... 89,944
6,700 Blonder Tongue Labs Inc.*.......................................................................... 43,550
16,300 Brown & Sharpe Manufacturing Co.*.................................................................. 43,806
3,700 CEM Corp.*......................................................................................... 39,081
11,000 Channell Commercial Corp.*......................................................................... 139,563
7,300 Cobra Electronics Corp.*........................................................................... 40,378
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
MANUFACTURING-HIGH TECHNOLOGY--(CONCLUDED)
3,300 Datron Systems Inc.*............................................................................... $ 36,094
9,300 Delaware Global Technologies Corp.*................................................................ 74,981
16,600 Esterline Technologies Corp.*...................................................................... 185,712
72,700 Galileo International Inc. ........................................................................ 1,749,344
9,200 Generale Cable Corp. .............................................................................. 71,300
36,800 Griffon Corp.*..................................................................................... 269,100
9,000 Metrika Systems Corp.*............................................................................. 77,625
22,181 MTS Systems Corp. ................................................................................. 155,267
1,300 Napco Security Systems Inc.*....................................................................... 4,063
4,900 Superior TeleCom Inc. ............................................................................. 73,806
3,700 Tech/Ops Sevcon, Inc. ............................................................................. 39,775
1,100 Thermwood Corp.*................................................................................... 6,875
------------
3,472,908
------------
MEDICAL PRODUCTS--2.39%
11,500 American Dental Technologies*...................................................................... 23,000
3,200 Lakeland Industries, Inc.*......................................................................... 13,800
6,100 Medstone International Inc.*....................................................................... 35,075
4,700 Mesa Labs Inc.*.................................................................................... 18,506
21,300 Natures Sunshine Products Inc. .................................................................... 186,375
3,000 Signature Eyewear Inc.*............................................................................ 7,688
187,700 Sybron International Corp.*........................................................................ 4,328,831
11,000 Utah Medical Products Inc.*........................................................................ 77,687
------------
4,690,962
------------
MEDICAL PROVIDERS--1.68%
25,500 Ameripath Inc.*.................................................................................... 232,687
124,000 Beverly Enterprises Inc.*.......................................................................... 457,250
23,800 Capital Senior Living Corp.*....................................................................... 111,562
21,800 Carematrix Corp.*.................................................................................. 46,325
4,400 Carriage Services Inc.*............................................................................ 26,125
7,800 Castle Dental Centers, Inc.*....................................................................... 26,325
8,700 Coast Dental Services Inc.*........................................................................ 21,750
13,900 Healthcare Recoveries Inc.*........................................................................ 64,288
8,300 Horizon Health Corp.*.............................................................................. 58,100
14,400 Monarch Dental Corp.*.............................................................................. 36,000
108,500 Omnicare Inc. ..................................................................................... 1,146,031
16,800 Pediatrix Medical Group* (1)....................................................................... 153,300
4,200 Prime Medical Services, Inc.*...................................................................... 32,025
25,500 Promedco Management Co.*........................................................................... 71,719
10,600 Raytel Medical Corp.*.............................................................................. 34,450
7,500 Rehabcare Group Inc.*.............................................................................. 176,719
17,600 Rural/Metro Corp.*................................................................................. 72,600
32,400 Sierra Health Services Inc.*....................................................................... 232,875
35,200 Stewart Enterprises Inc. .......................................................................... 202,400
20,300 Total Renal Care Holdings Inc.*.................................................................... 93,888
------------
3,296,419
------------
MINING & METALS--2.90%
9,200 Atchinson Casting Corp.*........................................................................... 88,550
17,300 Bayou Steel Corp.*................................................................................. 51,900
23,500 Centex Construction Products Inc. ................................................................. 760,812
18,400 Chase Industries Inc.*............................................................................. 156,400
17,300 Commercial Metals Co. ............................................................................. 550,356
4,400 Eastern Co. ....................................................................................... 70,125
6,200 Fansteel Inc.*..................................................................................... 22,863
</TABLE>
60
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
MINING & METALS--(CONCLUDED)
8,609 Friedman Industries, Inc. ......................................................................... $ 34,436
2,100 IMCO Recycling Inc. ............................................................................... 23,888
30,700 Intermet Corp. .................................................................................... 349,212
12,500 Lawson Products, Inc. ............................................................................. 287,500
7,100 Lindberg Corp. .................................................................................... 48,923
46,200 Metals USA Inc.*................................................................................... 372,487
11,300 Niagara Corp.*..................................................................................... 48,025
7,800 Northwest Pipe Co.*................................................................................ 116,025
5,800 Oglebay Norton Co. ................................................................................ 125,425
6,300 Pitt-Des Moines, Inc. ............................................................................. 135,844
20,800 Quanex Corp. ...................................................................................... 449,800
13,450 Roanoke Electric Steel Corp. ...................................................................... 225,288
1,800 Schuff Steel Co.*.................................................................................. 7,200
20,900 Silgan Holdings Inc.*.............................................................................. 282,150
13,500 Steel Technologies Inc. ........................................................................... 166,219
25,400 Texas Industries, Inc.*............................................................................ 928,687
22,600 USEC Inc. ......................................................................................... 118,650
16,100 Wolverine Tube Inc.*............................................................................... 213,325
6,922 Zemex Corp. ....................................................................................... 64,029
------------
5,698,119
------------
MOTOR VEHICLES--2.14%
33,600 Apogee Enterprises Inc. ........................................................................... 155,400
29,200 Arvin Industries Inc. ............................................................................. 677,075
6,000 Bandag Inc. ....................................................................................... 142,875
20,100 Coachmen Industries, Inc. ......................................................................... 288,938
6,100 Delco Remy International Inc.*..................................................................... 49,563
20,900 Dura Automotive Systems, Inc.*..................................................................... 334,400
6,000 Edelbrock Corp. ................................................................................... 72,750
40,300 Fleetwood Enterprises Inc. ........................................................................ 657,394
3,900 Hayes Lemmerz International Inc.*.................................................................. 78,000
54,200 Mascotech Inc. .................................................................................... 674,112
20,100 Modine Manufacturing Co. .......................................................................... 497,475
10,100 R & B Inc.*........................................................................................ 37,875
3,805 Rexhall Industries, Inc.*.......................................................................... 34,958
8,000 Rush Enterprises Inc.*............................................................................. 73,000
16,900 Shiloh Industries Inc.*............................................................................ 169,000
15,070 Supreme Industries, Inc.*.......................................................................... 92,304
25,600 TBC Corp.*......................................................................................... 150,400
2,300 Transportation Components Inc.*.................................................................... 6,756
------------
4,192,275
------------
OIL REFINING--0.32%
5,100 Adams Resources & Energy Inc. ..................................................................... 51,000
3,100 Castle Energy Corp. ............................................................................... 79,825
1,400 Giant Industries Inc.*............................................................................. 12,075
10,000 Holly Corp. ....................................................................................... 135,000
4,000 Kaneb Services Inc.*............................................................................... 18,000
7,962 Mercury Air Group, Inc.*........................................................................... 66,682
18,800 Petroleum Development Corp.*....................................................................... 83,425
8,100 Tesoro Petroleum Corp.*............................................................................ 89,100
14,700 World Fuel Services Corp. ......................................................................... 101,062
------------
636,169
------------
OIL SERVICES--0.39%
28,400 Friede Goldman International Inc.*................................................................. 172,175
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
OIL SERVICES--(CONCLUDED)
17,400 Gulf Islands Fabrication Inc.*..................................................................... $ 176,175
25,500 Offshore Logistics Inc.*........................................................................... 235,875
23,100 Seitel, Inc.*...................................................................................... 187,688
------------
771,913
------------
OTHER INSURANCE--6.73%
17,200 Acceptance Insurance Co.*.......................................................................... 65,575
778 Amwest Insurance Group, Inc. ...................................................................... 5,446
10,200 Atlantic American Corp.*........................................................................... 26,138
5,880 Bancinsurance Corp.*............................................................................... 28,665
42,200 Commerce Group Inc. ............................................................................... 1,091,925
8,733 Donegal Group Inc. ................................................................................ 55,946
46,000 Enhance Financial Services Group Inc. ............................................................. 641,125
36,783 Fidelity National Financial, Inc. ................................................................. 459,787
2,700 FPIC Insurance Group Inc.*......................................................................... 46,069
84,600 Fremont General Corp. ............................................................................. 655,650
41,970 Frontier Insurance Group Inc.*..................................................................... 128,533
35,500 Harleysville Group Inc. ........................................................................... 423,781
6,200 HCC Insurance Holdings Inc. ....................................................................... 82,537
2,200 Investors Title Insurance Co. ..................................................................... 37,400
18,500 LandAmerica Financial Group Inc. .................................................................. 329,531
86,400 MBIA, Inc. ........................................................................................ 4,325,400
2,100 Midland Co. ....................................................................................... 41,869
23,200 MMI Companies Inc. ................................................................................ 204,450
5,200 Navigators Group Inc.*............................................................................. 51,025
3,100 Philadelphia Consolidated
Holding Corp.*................................................................................... 44,950
5,596 Professionals Insurance Co. Management Group*...................................................... 125,910
11,300 Radiologix Inc.*................................................................................... 43,788
136,600 Reliance Group Holdings, Inc. ..................................................................... 785,450
13,875 RLI Corp. ......................................................................................... 433,594
10,000 State Auto Financial Corp. ........................................................................ 83,750
17,400 Stewart Information Services Corp. ................................................................ 229,462
26,545 Trenwick Group Inc. ............................................................................... 373,289
7,600 Unico American Corp. .............................................................................. 57,000
51,400 Xl Capital Ltd. ................................................................................... 2,319,425
------------
13,197,470
------------
PRECIOUS METALS--0.00%
1,900 Michael Anthony Jewelers Inc.*..................................................................... 5,463
------------
PUBLISHING--7.89%
11,400 Cadmus Communications Corp. ....................................................................... 80,156
119,600 Central Newspapers Inc. ........................................................................... 3,901,950
3,400 Courier Corp. ..................................................................................... 82,663
19,700 Ennis Business Forms Inc. ......................................................................... 155,138
24,600 Franklin Quest Co.*................................................................................ 196,800
102,500 Houghton Mifflin Co. .............................................................................. 4,215,312
155,400 Lee Enterprises Inc. .............................................................................. 4,127,812
44,400 McClatchy Co. ..................................................................................... 1,870,350
1,600 Northstar Computer Forms Inc. ..................................................................... 16,400
7,900 Primesource Corp. ................................................................................. 45,302
11,800 Scientific Games Holdings Corp.*................................................................... 195,437
15,700 Standard Register ................................................................................. 243,350
</TABLE>
61
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
PUBLISHING--(CONCLUDED)
20,800 Standex International Corp. ....................................................................... $ 345,800
------------
15,476,470
------------
RAILROADS--0.35%
26,800 Greenbrier Companies, Inc. ........................................................................ 226,125
41,200 Westinghouse Air Brake Co. ........................................................................ 458,350
------------
684,475
------------
REAL PROPERTY--0.01%
2,000 Meritage Corp.*.................................................................................... 20,375
------------
RESTAURANTS--2.14%
4,000 Arkansas Restaurants Corp.*........................................................................ 32,000
3,500 Benihana Inc.*..................................................................................... 51,625
133,500 Bob Evans Farms Inc. .............................................................................. 2,119,312
34,600 CBRL Group Inc. ................................................................................... 320,050
63,000 CKE Restaurants, Inc. ............................................................................. 405,562
14,300 Cooker Restaurant Corp.*........................................................................... 33,069
1,700 Dave & Busters Inc.*............................................................................... 11,475
5,200 ELXSI Corp.*....................................................................................... 68,900
9,400 Lone Star Steakhouse & Saloon*..................................................................... 84,600
27,100 Lubys Cafeterias Inc. ............................................................................. 296,406
3,500 Max & Ermas Restaurants Inc.*...................................................................... 26,688
6,300 NPC International, Inc.*........................................................................... 52,959
29,300 Rainforest Cafe Inc.*.............................................................................. 119,031
44,900 Ryan's Family Steak Houses, Inc.*.................................................................. 401,294
9,800 Schlotzskys Inc.*.................................................................................. 76,563
34,200 Sizzler International Inc.*........................................................................ 94,050
------------
4,193,584
------------
SECURITIES & ASSET MANAGEMENT--2.62%
1,700 Conning Corp. ..................................................................................... 19,125
96,700 Franklin Resources, Inc. (1)....................................................................... 3,450,981
4,200 ITLA Capital Corp.*................................................................................ 46,200
8,328 Stifel Financial Corp. ............................................................................ 86,924
39,600 T. Rowe Price & Associates, Inc. .................................................................. 1,539,450
------------
5,142,680
------------
SEMICONDUCTOR--0.31%
10,800 Bell Microproducts Inc.*........................................................................... 132,300
2,600 Katy Industries Inc. .............................................................................. 23,075
30,200 Neomagic Corp.*.................................................................................... 277,462
3,900 O.I. Corp.*........................................................................................ 16,088
17,400 Richardson Electronics Ltd. ....................................................................... 121,800
11,200 Taitron Components Inc.*........................................................................... 32,550
------------
603,275
------------
SPECIALTY RETAIL--2.90%
19,600 Barnett Inc.*...................................................................................... 209,475
15,300 Building Materials Holding Corp.*.................................................................. 164,475
34,100 Central Garden & Pet Co.*.......................................................................... 352,722
18,000 Cole National Corp.*............................................................................... 115,875
1,000 Cost-U-Less, Inc.*................................................................................. 3,500
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
SPECIALTY RETAIL--(CONCLUDED)
16,400 CSK Auto Corp.*.................................................................................... $ 191,675
2,100 Discount Auto Parts Inc.*.......................................................................... 34,519
6,100 Duckwall Alto Stores Inc.*......................................................................... 47,275
12,600 Finlay Enterprises Inc.*........................................................................... 165,375
17,400 Friedman's Inc. ................................................................................... 121,528
32,000 Jan Bell Marketing Inc.*........................................................................... 92,000
125,100 Longs Drug Stores Corp............................................................................. 2,689,650
40,300 Micro Warehouse, Inc.*............................................................................. 765,700
7,500 Movie Gallery Inc.*................................................................................ 25,781
43,700 Musicland Stores, Corp.*........................................................................... 275,856
28,300 OfficeMax, Inc.*................................................................................... 183,950
2,700 Piercing Pagoda, Inc.*............................................................................. 34,763
8,900 Sport Supply Group Inc.*........................................................................... 56,737
1,200 Tractor Supply Co.*................................................................................ 21,600
6,400 Wolohan Lumber Co. ................................................................................ 81,200
10,800 York Group Inc. ................................................................................... 60,075
------------
5,693,731
------------
THRIFT--1.23%
2,100 Bank United Corp. ................................................................................. 54,469
50,537 BankAtlantic Bancorp Inc. ......................................................................... 259,002
11,000 Bay View Capital Corp. ............................................................................ 109,312
10,500 BSB Bancorp, Inc. ................................................................................. 201,469
3,500 Dime Community Bancorp Inc. ....................................................................... 54,031
34,100 Downey Financial Corp. ............................................................................ 656,425
3,000 First Bell Bancorp Inc. ........................................................................... 34,875
4,400 First Essex Bancorp Inc. .......................................................................... 61,875
2,700 First Republic Bank*............................................................................... 52,988
1,800 FirstFed America Bancorp, Inc. .................................................................... 19,800
23,400 FirstFed Financial Corp.*.......................................................................... 305,662
6,300 Flagstar Bancorp Inc. ............................................................................. 88,594
12,200 Hamilton Bancorp Inc.*............................................................................. 196,725
1,000 ISB Financial Corp. ............................................................................... 14,000
2,100 Klamath First Bancorp Inc. ........................................................................ 23,100
7,300 Parkvale Financial Corp. .......................................................................... 118,853
5,000 Quaker City Bancorp Inc.*.......................................................................... 82,500
1,000 Southwest Bancorp, Inc. ........................................................................... 19,000
2,500 Washington Federal Inc. ........................................................................... 41,875
2,000 Westcorp Inc. ..................................................................................... 22,875
------------
2,417,430
------------
TOBACCO--0.68%
32,100 General Cigar Holdings Inc.*....................................................................... 469,462
1,700 Holts Cigar Holdings Inc.*......................................................................... 6,375
15,700 Standard Commercial Corp. ......................................................................... 54,950
39,200 Universal Corp. ................................................................................... 801,150
------------
1,331,937
------------
WIRELESS TELECOMMUNICATIONS--0.43%
96,500 CellStar Corp.*.................................................................................... 838,344
------------
Total Common Stocks (cost--$211,586,366)...................................................................... 186,006,386
------------
</TABLE>
62
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- ---------- -------------------- -------------- ------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--7.36%
$ 14,439 Repurchase Agreement dated 01/31/00 with State Street
Bank & Trust Co., collateralized by $14,336,491
U.S.Treasury Notes, 6.00% due 08/15/00
(value--$14,730,744); proceeds: $14,440,805
(cost--$14,439,000)....................................... 02/01/00 4.500% $ 14,439,000
------------
Total Investments (cost--$226,025,366)--102.18%......................... 200,445,386
Liabilities in excess of other assets--(2.18)%.......................... (4,282,518)
------------
Net Assets--100.00%..................................................... $196,162,868
============
</TABLE>
- -----------------
* Non-income producing security.
(1) Security, or portion thereof, was on loan at January 31, 2000.
(2) Illiquid security with no market value at January 31, 2000.
See accompanying notes to financial statements
63
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY GROWTH EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--97.62%
APPAREL, RETAIL--1.80%
107,300 American Eagle Outfitters Inc.*.................................................................... $ 3,896,331
43,900 Talbots Inc........................................................................................ 1,555,706
------------
5,452,037
------------
BANKS--0.96%
58,300 Sovereign Bancorp, Inc............................................................................. 398,991
108,700 Webster Financial Corp............................................................................. 2,527,275
------------
2,926,266
------------
BROADCASTING & PUBLISHING--0.12%
30,200 Regent Communications Inc.* (1).................................................................... 354,850
------------
BUSINESS & PUBLIC SERVICES--0.40%
70,200 Bright Horizons Family Solutions*.................................................................. 1,210,950
------------
CABLE--1.91%
24,800 Ditech Communications Corp.*....................................................................... 2,917,100
112,900 Insight Communications Inc.*....................................................................... 2,871,894
------------
5,788,994
------------
COMPUTER-BUSINESS SERVICES--2.67%
38,300 Bisys Group Inc.*.................................................................................. 2,271,669
85,100 DBT Online Inc.*................................................................................... 1,595,625
32,200 Digital Insight Corp.* (1)......................................................................... 1,380,575
6,900 Network Access Solutions Corp.*.................................................................... 189,750
75,500 Technology Solutions Co.*.......................................................................... 2,656,656
------------
8,094,275
------------
COMPUTER HARDWARE--7.49%
108,300 Jack Henry & Associates Inc. (1)................................................................... 6,200,175
147,000 Network Appliance, Inc.*........................................................................... 14,755,125
31,900 RSA Security Inc.*................................................................................. 1,734,562
------------
22,689,862
------------
COMPUTER SOFTWARE--12.92%
60,100 Aspect Development Inc.*........................................................................... 4,026,700
111,100 Bindview Development Corp.*........................................................................ 5,110,600
21,600 ePlus Inc.* (1).................................................................................... 955,800
43,000 Espeed Inc.*....................................................................................... 2,953,562
50,700 Exchange Applications Software*.................................................................... 4,423,575
5,100 Extensity Inc.*.................................................................................... 295,163
77,700 Legato Systems Inc.*............................................................................... 1,957,069
26,200 Network Associates Inc.*........................................................................... 679,562
40,900 Onyx Software Corp.*............................................................................... 2,300,625
60,800 Sanchez Computer Associates Inc.* (1).............................................................. 2,055,800
98,650 Veritas Software Co.* (1).......................................................................... 14,390,569
------------
39,149,025
------------
CONSTRUCTION--2.17%
153,100 Dycom Industries Inc.* (1)......................................................................... 6,583,300
------------
DIVERSIFIED RETAIL--1.17%
211,800 Cost Plus Inc.*.................................................................................... 3,547,650
------------
DRUGS & MEDICINE--2.54%
14,200 Cima Labs Inc.*.................................................................................... 220,100
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
DRUGS & MEDICINE--(CONCLUDED)
31,700 Cubist Pharmaceuticals Inc.*....................................................................... $ 727,699
48,000 Pharmacopeia Inc.*................................................................................. 1,824,000
13,000 Triangle Pharmaceuticals Inc.*..................................................................... 255,125
75,200 United Therapeutics Corp.* (1)..................................................................... 4,662,400
------------
7,689,324
------------
ELECTRICAL EQUIPMENT--6.11%
200,500 Gemstar Group Ltd.* (1)............................................................................ 13,308,187
80,400 Teradyne Inc.*..................................................................................... 5,205,900
------------
18,514,087
------------
ELECTRONIC COMPONENTS--1.14%
27,800 Lam Research Corp.*................................................................................ 3,471,525
------------
ENTERTAINMENT--2.94%
206,200 CEC Entertainment Inc.*............................................................................ 5,193,662
129,700 Tweeter Home Entertainment
Group Inc.*...................................................................................... 3,720,769
------------
8,914,431
------------
FINANCIAL SERVICES--1.77%
129,900 Doral Financial Corp............................................................................... 1,347,713
110,100 Metris Co., Inc.................................................................................... 4,032,412
------------
5,380,125
------------
FOOD RETAIL--0.96%
79,600 American Italian Pasta Co.*........................................................................ 2,179,050
30,200 Morrison Management Specialists Inc................................................................ 700,262
1,600 Schultz Sav-O Stores, Inc.......................................................................... 18,600
------------
2,897,912
------------
FREIGHT, AIR, SEA & LAND--1.21%
135,750 Forward Air Corp.*................................................................................. 3,656,766
------------
HOTELS--0.24%
94,300 Extended Stay America Inc.*........................................................................ 736,719
------------
HUMAN RESOURCES--0.38%
41,200 HotJobs.com, Ltd.*................................................................................. 1,148,450
------------
INDUSTRIAL PARTS--2.24%
212,800 Mettler Toledo International Inc.*................................................................. 6,783,000
------------
INDUSTRIAL SERVICES & SUPPLIES--0.82%
112,300 G & K Services Inc................................................................................. 2,477,619
------------
INFORMATION & COMPUTER SERVICES--0.26%
38,900 NFO Worldwide Inc.*................................................................................ 795,019
------------
LEISURE--0.22%
75,500 West Marine Inc.*.................................................................................. 670,063
------------
MANUFACTURING-GENERAL--0.56%
43,800 Wesley Jessen Visioncare Inc.*..................................................................... 1,695,881
------------
MEDIA--6.24%
39,800 Acme Communications Inc.*.......................................................................... 985,050
26,800 AMFM Inc.*......................................................................................... 2,090,400
</TABLE>
64
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE SMALL/MEDIUM COMPANY GROWTH EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
MEDIA--(CONCLUDED)
21,600 Cumulus Media Inc.*................................................................................ $ 843,750
38,300 Emmis Broadcasting Corp.* (1)...................................................................... 3,387,156
55,300 Getty Images Inc.*................................................................................. 2,156,700
65,600 Radio One Inc.*.................................................................................... 5,018,400
52,700 Salem Communications Corp.*........................................................................ 909,075
18,200 West Teleservices Corp.*........................................................................... 461,825
50,450 Westwood One Inc.*................................................................................. 3,071,144
------------
18,923,500
------------
MEDICAL PRODUCTS--0.10%
3,800 Aspect Med Systems Inc.*........................................................................... 106,400
7,800 Sequenom Inc.*..................................................................................... 202,800
------------
309,200
------------
MEDICAL PROVIDERS--0.71%
135,700 Brookdale Living Community Inc.*................................................................... 1,840,431
57,000 Women First Healthcare Inc.*....................................................................... 299,250
------------
2,139,681
------------
MEDICAL--BIMEDICAL & GENETICS--2.25%
39,900 Neurocrine Biosciences Inc.*....................................................................... 947,625
111,500 Trimeris Inc.*..................................................................................... 5,870,583
------------
6,818,208
------------
OTHER INSURANCE--1.32%
82,000 Ambac Financial Group Inc.......................................................................... 4,012,875
------------
RESTAURANTS--3.63%
145,850 Cheesecake Factory Inc.*........................................................................... 4,174,956
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------- ------------
<C> <S> <C>
RESTAURANTS--(CONCLUDED)
101,300 Ruby Tuesday Inc................................................................................... $ 1,899,375
171,050 Sonic Corp.*....................................................................................... 4,917,688
------------
10,992,019
------------
SEMICONDUCTOR--14.73%
105,100 Applied Micro Circuits Corp.*...................................................................... 15,528,525
222,900 Micrel Inc.*....................................................................................... 14,098,425
75,000 Novellus Systems Inc.*............................................................................. 3,684,375
62,800 PMC Sierra Inc.*................................................................................... 11,335,400
------------
44,646,725
------------
SPECIALTY RETAIL--8.15%
190,950 Dollar Tree Stores Inc.* (1)....................................................................... 8,413,734
141,500 Duane Reade Inc.* (1).............................................................................. 3,263,344
118,100 Linens 'N Things Inc.*............................................................................. 2,317,712
130,300 O'Reilly Automotive Inc.* (1)...................................................................... 1,710,188
254,850 Profit Recovery Group
International Inc.*.............................................................................. 6,912,806
125,500 Too Inc.*.......................................................................................... 2,078,594
------------
24,696,378
------------
WIRELESS TELECOMMUNICATIONS--7.49%
73,300 Concord Communications Inc.* (1)................................................................... 2,702,937
144,800 Nextlink Communications Inc.* (1).................................................................. 12,217,500
160,100 Pinnacle Holdings Inc.*............................................................................ 6,794,244
32,500 SBA Communcations Corp.*........................................................................... 985,156
------------
22,699,837
------------
Total Common Stocks (cost--$180,812,567)...................................................................... 295,866,553
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE
- --------- -------------------- --------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--1.98%
$ 6,004 Repurchase Agreement dated 01/31/2000 with State Street
Bank & Trust Co. collateralized by $4,403,438 U.S.
Treasury Notes, 6.000% due 08/15/2000; (value--$4,491,956)
and $1,600,562 U.S. Treasury Note, 6.000% due 08/15/2000;
(value--$1,633,356); proceeds: $6,004,751................. 02/01/00 4.500% 6,004,000
------------
Total Investments (cost--$186,816,567)--99.60%......................... 301,870,553
Other assets in excess of liabilities--0.40%........................... 1,212,040
------------
Net Assets--100.00%.................................................... $303,082,593
============
</TABLE>
- -----------------
* Non-Income producing security
(1) Security, or a portion thereof, was on loan at January 31, 2000.
65
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES# VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--93.75%
AUSTRALIA--2.33%
LEISURE & ENTERTAINMENT--0.30%
140,000 TABCORP Holdings Ltd............................................................ $ 760,649
------------
MEDIA--0.63%
136,000 News Corporation Ltd............................................................ 1,600,870
------------
METALS & MINING--0.40%
515,000 North Ltd....................................................................... 1,015,281
------------
TELECOMMUNICATIONS-SERVICES--0.59%
299,200 Telstra Corp.................................................................... 1,488,939
------------
TRANSPORTATION--0.41%
43,500 Brambles Industries Ltd......................................................... 1,032,162
------------
Total Australia Common Stocks...................................................................... 5,897,901
------------
BRAZIL--0.97%
METALS & MINING--0.36%
31,000 Companhia Vale do Rio Doce ADR.................................................. 914,500
------------
OIL & GAS--0.26%
29,000 Petrobras S.A. ADR (1).......................................................... 671,985
------------
TELECOMMUNICATIONS-SERVICES--0.35%
30,500 Telecomunicacoes de Sao Paulo................................................... 884,500
------------
Total Brazil Common Stocks......................................................................... 2,470,985
------------
FINLAND--3.03%
COMPUTER SOFTWARE & SERVICES--0.52%
23,300 Tieto Corp...................................................................... 1,318,967
------------
INFORMATION TECHNOLOGY HARDWARE--2.51%
35,163 Nokia Corp...................................................................... 6,362,760
------------
Total Finland Common Stocks........................................................................ 7,681,727
------------
FRANCE--14.17%
BANKS--0.81%
10,190 Societe Generale................................................................ 2,044,783
------------
COMPUTER SOFTWARE & SERVICES--1.43%
17,127 Cap Gemini S.A.................................................................. 3,630,705
------------
CONSTRUCTION--0.71%
12,721 Compagnie de Saint-Gobain....................................................... 1,800,276
------------
CONSTRUCTION & BUILDING SERVICES--0.31%
8,839 Lafarge S.A..................................................................... 779,868
------------
DIVERSIFIED INDUSTRIALS--2.21%
54,600 Vivendi......................................................................... 5,595,409
------------
ENGINEERING & MACHINERY--0.48%
42,609 Alstom.......................................................................... 1,208,085
------------
FOOD & DRUG RETAILERS--1.26%
20,054 Carrefour....................................................................... 3,188,394
------------
LEISURE & ENTERTAINMENT--0.40%
24,579 Accor S.A....................................................................... 1,007,542
------------
LIFE ASSURANCE--1.48%
29,947 AXA............................................................................. 3,767,525
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES# VALUE
- --------------- ---------------
<C> <S> <C>
FRANCE--(CONCLUDED)
OIL & GAS--2.13%
43,607 Total FINA S.A., Series B (1)................................................... $ 5,413,688
------------
PHARMACEUTICAL--1.07%
51,643 Aventis S.A..................................................................... 2,716,753
------------
TELECOMMUNICATION SERVICES--1.07%
21,021 France Telecom.................................................................. 2,718,436
------------
WATER--0.81%
14,388 Suez Lyonnaise des Eaux......................................................... 2,071,297
------------
Total France Common Stocks......................................................................... 35,942,761
------------
GERMANY--6.31%
BANKS--0.36%
15,337 Bayerische Hypo-Vereinsbank AG.................................................. 913,104
------------
CHEMICALS--0.79%
44,765 BASF AG......................................................................... 1,924,573
3,779 Celanese AG*.................................................................... 77,454
------------
2,002,027
------------
COMPUTER SOFTWARE & SERVICES--1.20%
3,982 SAP AG.......................................................................... 3,045,020
------------
RETAIL--0.43%
26,696 Metro AG........................................................................ 1,090,414
------------
TELECOMMUNICATIONS-SERVICES--3.53%
39,909 Deutsche Telekom................................................................ 2,703,213
22,854 Mannesmann AG................................................................... 6,251,119
------------
8,954,332
------------
Total Germany Common Stocks........................................................................ 16,004,897
------------
GREECE--0.13%
TELECOMMUNICATIONS-SERVICES--0.13%
14,600 Hellenic Telecom................................................................ 329,546
------------
HONG KONG--3.97%
DIVERSIFIED INDUSTRIALS--0.43%
225,000 Swire Pacific Ltd............................................................... 1,084,442
------------
INVESTMENT COMPANIES--0.95%
168,000 Hutchison Whampoa Ltd........................................................... 2,418,354
------------
MEDIA & PHOTOGRAPHY--0.29%
620,000 I Cable Communication Ltd.*..................................................... 729,130
------------
REAL ESTATE--0.70%
328,000 Henderson Land Developement Company............................................. 1,770,580
------------
TELECOMMUNICATIONS-SERVICES--1.60%
646,836 Cable & Wireless HKT Ltd........................................................ 1,575,419
403,000 China Telecom Ltd.*............................................................. 2,491,395
------------
4,066,814
------------
Total Hong Kong Common Stocks...................................................................... 10,069,320
------------
INDIA--0.36%
TELECOMMUNICATIONS-SERVICES--0.36%
32,000 Videsh Sanchar Nigam Ltd. GDR................................................... 912,000
------------
</TABLE>
66
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES# VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
IRELAND--0.44%
BANKS--0.44%
172,735 Bank of Ireland................................................................. $ 1,121,119
------------
ISRAEL--0.16%
INFORMATION TECHNOLOGY HARDWARE--0.16%
7,400 Nice Systems Ltd ADR*........................................................... 413,475
------------
ITALY--4.63%
BANKS--0.80%
170,768 San Paolo-IMI SPA............................................................... 2,036,703
------------
INFORMATION TECHNOLOGY HARDWARE--1.00%
155,766 Telecom Italia SPA.............................................................. 2,529,740
------------
LIFE ASSURANCE--0.57%
151,638 Alleanza Assicurazioni (1)...................................................... 1,447,427
------------
MEDIA--0.41%
364,406 Seat Pagine Gialle Shares....................................................... 1,040,306
------------
TELECOMMUNICATIONS-SERVICES--1.85%
427,441 Telecom Italia Mobilare SPA..................................................... 4,701,647
------------
Total Italy Common Stocks.......................................................................... 11,755,823
------------
JAPAN--27.52%
AUTOMOBILES--1.16%
74,000 Bridgestone Corp................................................................ 1,561,632
43,000 Honda Motor Company Ltd......................................................... 1,374,173
------------
2,935,805
------------
CHEMICALS--3.14%
223,000 Asahi Chemical Industries Company Ltd........................................... 1,244,545
90,000 Shin Etsu Chemical Company Ltd.................................................. 4,813,193
189,000 Sumitomo Bakelite Company Ltd. (1).............................................. 1,901,798
------------
7,959,536
------------
CONSTRUCTION--0.43%
128,000 Daiwa House Industry Co......................................................... 1,097,177
------------
ELECTRONIC & ELECTRICAL EQUIPMENT--4.49%
87,000 Canon Inc. (1).................................................................. 3,558,465
12,800 Mabuchi Motor Co................................................................ 1,800,801
24,000 Sony Corp....................................................................... 6,028,510
------------
11,387,776
------------
FOOD & DRUG RETAILERS--0.47%
19,000 Familymart Company Ltd.......................................................... 1,189,602
------------
GENERAL RETAILERS--1.56%
28,000 Ito-Yokado Company Ltd.......................................................... 2,551,384
100,000 Marui Company Ltd............................................................... 1,397,559
------------
3,948,943
------------
INFORMATION TECHNOLOGY HARDWARE--4.62%
88,000 Fujitsu Ltd..................................................................... 3,255,008
188,000 Hitachi Ltd..................................................................... 2,664,195
17,000 Riso Kagaku Corp................................................................ 517,935
16,000 Rohm Company Ltd................................................................ 5,277,182
------------
11,714,320
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES# VALUE
- --------------- ---------------
<C> <S> <C>
JAPAN--(CONCLUDED)
INSURANCE--0.38%
190,000 Mitsui Marine & Fire............................................................ $ 973,633
------------
LEISURE & ENTERTAINMENT--0.77%
28,000 Namco Ltd....................................................................... 1,956,583
------------
MEDIA & PHOTOGRAPHY--1.54%
34,000 Fuji Photo Film Company Ltd..................................................... 1,311,469
216,000 Toppan Printing Co.............................................................. 2,584,031
------------
3,895,500
------------
PERSONAL CARE & HOUSEHOLD PRODUCTS--1.18%
110,000 Kao Corp........................................................................ 3,002,888
------------
PHARMACEUTICALS--1.94%
47,000 Taisho Pharmaceutical Co........................................................ 1,414,423
80,000 Yamanouchi Pharmaceutical Co.................................................... 3,503,214
------------
4,917,637
------------
SPECIALTY & OTHER FINANCE--0.49%
18,000 Promise Company Ltd............................................................. 1,239,355
------------
SUPPORT SERVICES--1.87%
7,400 Benesse Corp.................................................................... 1,357,551
38,000 Secom Company Ltd............................................................... 3,398,863
------------
4,756,414
------------
TELECOMMUNICATION SERVICES--3.48%
260 NTT Mobile Communication Network................................................ 8,817,665
------------
Total Japan Common Stocks.......................................................................... 69,792,834
------------
KOREA--1.05%
FINANCE--0.28%
28,010 Shinhan Bank GDR*............................................................... 694,648
------------
TELECOMMUNICATIONS-SERVICES--0.77%
36,120 Korea Telecom Corp. ADR*........................................................ 1,961,768
------------
Total Korea Common Stocks.......................................................................... 2,656,416
------------
MEXICO--1.57%
CONSTRUCTION--0.21%
24,300 Cemex S.A. Series B*............................................................ 531,563
------------
DIVERSIFIED INDUSTRIAL--0.18%
124,000 Alfa, S.A. de C.V. Series A..................................................... 453,581
------------
MEDIA--0.25%
11,300 Grupo Televisa S.A. de C.V. ADR*................................................ 627,150
------------
RETAIL--0.23%
336,000 Cifra S.A. de C.V. Series V* (1)................................................ 580,198
------------
SPECIALTY & OTHER FINANCE--0.20%
1,448,000 Grupo Financiero Bancomer....................................................... 517,830
------------
TELECOMMUNICATION SERVICES--0.50%
11,900 Telefonos de Mexico, S.A. de C.V. ADR (1)....................................... 1,267,350
------------
Total Mexico Common Stocks......................................................................... 3,977,672
------------
NETHERLANDS--3.93%
MEDIA & PHOTOGRAPHY--2.95%
174,051 Elsevier N.V.................................................................... 2,026,594
</TABLE>
67
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES# VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
NETHERLANDS--(CONCLUDED)
MEDIA & PHOTOGRAPHY--(CONCLUDED)
102,842 VNU N.V......................................................................... $ 5,445,279
------------
7,471,873
------------
SPECIALTY & OTHER FINANCE--0.98%
49,403 ING Groep N.V................................................................... 2,488,015
------------
Total Netherlands Common Stocks.................................................................... 9,959,888
------------
POLAND--0.20%
TELECOMMUNICATIONS SERVICES--0.20%
75,000 Telekomunikacja Polska S.A.**................................................... 510,000
------------
SINGAPORE--1.92%
ELECTRICAL EQUIPMENT--1.08%
21,500 Chartered Semiconductor Manufacturing*.......................................... 1,765,687
200,000 Natsteel Electronics Ltd. (1)................................................... 975,037
------------
2,740,724
------------
TRANSPORT--0.43%
1,100,000 Neptune Orient Lines Ltd.*...................................................... 1,098,385
------------
TRANSPORTATION--0.41%
99,000 Singapore Airlines Ltd.......................................................... 1,035,066
------------
Total Singapore Common Stocks...................................................................... 4,874,175
------------
SOUTH AFRICA--0.39%
METALS & MINING--0.22%
4,060 Anglo American PLC.............................................................. 228,801
13,000 De Beers Centenary.............................................................. 338,700
------------
567,501
------------
SPECIALTY & OTHER FINANCE--0.17%
14,200 Nedcor Investment Bank Holdings................................................. 9,002
18,100 Nedcor Ltd...................................................................... 408,469
------------
417,471
------------
Total South Africa Common Stocks................................................................... 984,972
------------
SPAIN--3.44%
BANKS--1.68%
170,348 Banco Bilbao Vizcaya Argenta.................................................... 2,202,945
210,627 Banco Santander Central Hispanormer............................................. 2,070,110
------------
4,273,055
------------
TELECOMMUNICATIONS-SERVICES--1.76%
176,249 Telefonica S.A.*................................................................ 4,455,293
------------
Total Spain Common Stocks.......................................................................... 8,728,348
------------
SWEDEN--3.52%
BANKS--0.65%
124,000 Forenings Sparbanken AB......................................................... 1,654,554
------------
INFORMATION TECHNOLOGY HARDWARE--2.40%
86,000 Ericsson LM B Shares............................................................ 6,074,494
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES# VALUE
- --------------- ---------------
<C> <S> <C>
SWEDEN--(CONCLUDED)
SUPPORT SERVICES--0.47%
57,000 Securitas AB.................................................................... $ 1,191,006
------------
Total Sweden Common Stocks......................................................................... 8,920,054
------------
SWITZERLAND--1.50%
CONSTRUCTION AND BUILDING MATERIALS--0.87%
1,740 Holderbank Financiere Glarus AG................................................. 2,203,093
------------
PHARMACEUTICALS--0.63%
1,310 Novartis AG..................................................................... 1,611,782
------------
Total Switzerland Common Stocks.................................................................... 3,814,875
------------
THAILAND--0.31%
CHEMICALS--0.31%
1,800,000 Thai Petrochemical Industry*.................................................... 791,472
------------
UNITED KINGDOM--11.90%
AEROSPACE--0.24%
115,306 British Aerospace PLC........................................................... 617,427
------------
AEROSPACE & DEFENSE--0.47%
102,771 Smiths Industries PLC........................................................... 1,194,617
------------
AUTOMOBILES--0.47%
95,000 GKN PLC......................................................................... 1,191,952
------------
BANKS--1.63%
84,000 HSBC Holdings................................................................... 985,941
121,000 Lloyds TSB Group PLC............................................................ 1,222,373
60,000 National Westminster Bank PLC................................................... 1,151,074
47,831 Royal Bank of Scotland Group PLC................................................ 774,360
------------
4,133,748
------------
ELECTRICITY--0.27%
99,000 Scottish Power PLC.............................................................. 690,790
------------
INFORMATION TECHNOLOGY HARDWARE--0.55%
94,000 Marconi PLC..................................................................... 1,387,133
------------
INSURANCE--0.29%
75,500 Allied Zurich PLC............................................................... 735,218
------------
LEISURE & ENTERTAINMENT--0.35%
321,000 Hilton Group PLC................................................................ 883,461
------------
LIFE ASSURANCE--0.29%
310,000 Legal & General Group PLC....................................................... 737,756
------------
MEDIA--0.63%
69,000 British Sky Broadcasting PLC.................................................... 1,605,238
------------
METALS & MINING--0.26%
36,000 Rio Tinto....................................................................... 667,332
------------
OIL & GAS--1.39%
212,000 BP Amoco PLC.................................................................... 1,870,536
264,000 LASMO PLC....................................................................... 453,047
166,000 Shell Transportation & Trading Co............................................... 1,201,294
------------
3,524,877
------------
PHARMACEUTICAL--1.66%
34,000 Astra Zeneca Group, PLC......................................................... 1,257,763
59,000 Glaxo Wellcome PLC.............................................................. 1,513,007
</TABLE>
68
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES# VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
UNITED KINGDOM--(CONTINUED)
PHARMACEUTICAL--(CONCLUDED)
119,000 Smithkline Beecham.............................................................. $ 1,425,648
------------
4,196,418
------------
RESTAURANTS--0.43%
169,000 Scottish & Newcastle PLC........................................................ 1,086,203
------------
TELECOMMUNICATION SERVICES--2.68%
107,000 British Telecommunications PLC.................................................. 2,080,898
126,000 Cable & Wireless PLC............................................................ 2,568,207
390,000 Vodafone Group PLC.............................................................. 2,148,307
------------
6,797,412
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES# VALUE
- --------------- ---------------
<C> <S> <C>
UNITED KINGDOM--(CONCLUDED)
TRANSPORTATION--0.29%
321,000 Stagecoach Holdings PLC......................................................... $ 727,556
------------
Total United Kingdom Common Stocks................................................................. 30,177,138
------------
Total Common Stocks (cost--$183,243,009)........................................................... 237,787,398
------------
PREFERRED STOCKS--0.47%
JAPAN--0.47%
BANKS--0.47%
135,000,000 Sanwa International Finance
(cost--$1,145,171)............................................................ 1,182,335
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES
- ----------- ------------ --------
<C> <S> <C> <C> <C>
CONVERTIBLE BONDS--0.43%
JAPAN--0.43%
BANKS--0.43%
152,000 TB Finance Ltd. (cost--$996,256)....................................... 10/01/04 2.750% 1,083,388
------------
REPURCHASE AGREEMENT--2.86%
$ 7,255 Repurchase Agreement dated 01/31/2000 with State Street Bank & Trust
Co., collateralized by $7,203,493 U.S. Treasury Notes, 6.000% due
08/15/2000 (value--$7,401,589); proceeds: $7,255,907
(cost--$7,255,000)................................................... 02/01/00 4.500 7,255,000
------------
Total Investments (cost--$192,639,436)--97.51%...................................... 247,308,121
6,317,291
Other assets in excess of liabilities--2.49%........................................
------------
Net Assets--100.00%................................................................. $253,625,412
============
</TABLE>
- ---------------
# In local currency unless otherwise indicated.
* 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.
GDR Global Depositary Receipt.
(1) Security, or portion thereof, was on loan at January 31, 2000.
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT TO IN MATURITY APPRECIATION
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
-------------- ------------- -------- --------------
<S> <C> <C> <C> <C>
Japanese Yen................................................ 790,035,285 USD 7,501,285 02/01/2000 $ 139,341
U.S. Dollars................................................ 747,659 AUD 1,152,904 02/01/2000 (12,105)
-----------
$ 127,236
===========
</TABLE>
CURRENCY TYPE ABBREVIATIONS:
AUD Australian Dollars.
USD U.S. Dollars.
See accompanying notes to financial statements
69
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS JANUARY 31, 2000(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--90.13%
ARGENTINA--1.79%
ALCOHOLIC BEVERAGES--0.21%
13,600 Quilmes Industrial Quinsa S.A. ADR......................................... $ 188,700
------------
BANKS--0.41%
16,328 Banco de Galicia y Buenos Aires S.A. de C.V. ADR(1)........................ 304,109
23,671 IRSA Inversiones y Representaciones S.A. Class B........................... 75,759
------------
379,868
------------
BASIC MATERIALS--0.11%
25,600 Siderar S.A. .............................................................. 103,697
------------
DIVERSIFIED INDUSTRIALS--0.25%
58,347 Perez Companc S.A. Class B................................................. 232,258
------------
TELECOMMUNICATIONS--0.81%
3,000 Impsat Corp................................................................ 51,000
26,900 Telecom Argentina Stet-Fran Tel S.A. Class B............................... 199,361
12,900 Telefonica de Argentina S.A. Class B ADR................................... 492,619
------------
742,980
------------
Total Argentina Common Stocks................................................................. 1,647,503
------------
BOTSWANA--0.21%
BREWERIES, PUBS, & RESTAURANTS--0.21%
172,000 Sechaba Breweries Ltd. Ord.+ .............................................. 196,952
------------
BRAZIL--4.37%
BANKS--0.31%
11,300 Uniao de Bancos Brasileiros................................................ 288,150
------------
BASIC MATERIALS--0.36%
14,600 Aracruz Celulose S.A. ADR.................................................. 327,587
------------
ELECTRICITY--0.41%
21,000,000 Centrais Electricas Brasilieras S.A. (Electrobras)......................... 374,292
------------
FOOD STORES--0.51%
14,100 Companhia Brasileira de Distribucion....................................... 465,300
------------
OIL & GAS--0.24%
18,300 Ultrapar Participacoes S.A................................................. 220,744
------------
TELECOMMUNICATIONS--2.54%
45,800 Embratel Participacoes S.A. ADR............................................ 984,700
1,300 Tele Centro Sul Participacoes.............................................. 107,250
45,100 Tele Norte Leste Participacoes............................................. 1,119,044
1,000 Telecomunicacoes Brasileiras............................................... 130,000
5,000 Telecomunicacoes Brasileiras S.A. (Telebras) ADR........................... 78
------------
2,341,072
------------
Total Brazil Common Stocks.................................................................... 4,017,145
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
CHILE--2.58%
BANKS--0.36%
12,500 Banco Santander Chile Series A ADR(1)...................................... $ 198,437
6,100 Banco Santiago............................................................. 136,488
------------
334,925
------------
BREWERIES, PUBS, & RESTAURANTS--0.46%
9,300 Compania Cervecerias Unidas S.A. ADS(1).................................... 290,625
9,600 Embotelladora Andina S.A. ADS.............................................. 137,400
------------
428,025
------------
DIVERSIFIED INDUSTRIALS--0.26%
17,000 Quinenco S.A. ADR.......................................................... 234,812
------------
ELECTRICITY--0.49%
6,700 Chilectra ADR.............................................................. 134,000
15,800 Empresa Nacional de Electricidad S.A....................................... 200,463
5,518 Enersis S.A. ADR........................................................... 112,774
------------
447,237
------------
MINING--0.23%
6,600 Sociedad Quimica Y Minera de Chile S.A. Series B ADR....................... 212,025
------------
RETAILERS, FOOD--0.27%
12,200 Distribucion y Servicio D&S ADS(1)......................................... 247,050
------------
TELECOMMUNICATIONS--0.51%
23,850 Compania de Telecomunicaciones de Chile S.A. ADR(1)........................ 472,528
------------
Total Chile Common Stocks..................................................................... 2,376,602
------------
CROATIA--0.11%
HEALTH/PERSONAL CARE--0.11%
8,000 Pliva D.D. GDR*............................................................ 104,800
------------
CZECH REPUBLIC--0.79%
BANKS--0.09%
15,900 Ceska Sporitelna A.S.*..................................................... 77,910
1 Komercni Banka A.S......................................................... 7
------------
77,917
------------
UTILITIES--0.70%
2,380 Ceske Radiomunikace A.S. .................................................. 98,175
64,000 Cez........................................................................ 183,201
20,000 SPT Telecom A.S. (Reg) S*.................................................. 365,181
------------
646,557
------------
Total Czech Republic Common Stocks............................................................ 724,474
------------
EGYPT--0.37%
TELECOMMUNICATIONS--0.37%
6,700 Egypt Mobile Phone......................................................... 341,852
------------
</TABLE>
70
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
GREECE--1.56%
BANKS--0.81%
6,911 Alpha Credit Bank.......................................................... $ 458,837
4,595 National Bank of Greece*................................................... 290,623
------------
749,460
------------
BEVERAGE/TOBACCO MANUFACTURING--0.06%
2,630 Hellenic Bottling Company S.A. ............................................ 55,653
------------
TELECOMMUNICATIONS--0.69%
19,380 Hellenic Telecom Organization.............................................. 437,438
7,300 Panafon Hellenic Telecommunications S.A. .................................. 93,758
3,960 Stet Hellas Telecommunications*............................................ 102,960
------------
634,156
------------
Total Greece Common Stocks.................................................................... 1,439,269
------------
HONG KONG--1.58%
COMMERCE/INDUSTRIAL--0.13%
126,000 Beijing Datang Power Generation Company Ltd. 'H' Share..................... 19,757
24,000 Citic Pacific Ltd. ........................................................ 102,101
------------
121,858
------------
FINANCIAL SERVICES--0.28%
110,000 Pacific Century............................................................ 258,724
------------
GLASS & CERAMICS--0.27%
296,000 China Merchants Holdings Intl. ............................................ 247,285
------------
REAL ESTATE--0.25%
141,000 China Resources Enterprises Ltd. .......................................... 227,434
------------
TELECOMMUNICATIONS--0.65%
97,000 China Telecom Hong Kong Ltd.*.............................................. 599,666
------------
Total Hong Kong Common Stocks................................................................. 1,454,967
------------
HUNGARY--1.69%
BANKS--0.66%
9,834 OTP Bank GDS............................................................... 607,249
------------
HEALTH/PERSONAL CARE--0.08%
1,060 Richter Gedeon Vegyeszdi GDS............................................... 70,755
------------
OIL--0.13%
6,000 Magyar Olaj-Es Gazipare Reszvnytaras Ag. Series 'A'........................ 122,400
------------
TELECOMMUNICATIONS--0.82%
19,280 Matav RT ADS Series 'B' (1)................................................ 751,920
------------
Total Hungary Common Stocks................................................................... 1,552,324
------------
INDIA--8.76%
BANKS--0.28%
47,000 HDFC Bank.................................................................. 253,487
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
INDIA--(CONCLUDED)
CONSTRUCTION/BUILDING MATERIALS--0.49%
24,250 Acc Ltd.................................................................... $ 99,837
86,000 Associated Cement Co. ..................................................... 351,101
------------
450,938
------------
DIVERSIFIED INDUSTRIALS--0.50%
50,000 Larsen & Toubro............................................................ 460,436
------------
ENGINEERING VEHICLES--0.21%
23,000 Bajaj Auto Ltd. ........................................................... 189,776
------------
HOUSEHOLD GOODS & TEXTILES--1.60%
15,200 Hindustan Lever Ltd. ...................................................... 850,119
82,000 Reliance Industries Ltd. .................................................. 618,762
------------
1,468,881
------------
OIL & GAS--0.23%
52,000 Bharat Heavy Electricals................................................... 207,404
------------
OIL, INTEGRATED--0.93%
99,000 Bharat Petrol Corp. Ltd. .................................................. 858,303
------------
PHARMACEUTICALS--0.00%
100 Ranbaxy Laboratories Ltd. ................................................. 2,057
------------
STEEL & OTHER MATERIALS--0.33%
17,500 Hindlaco Industries........................................................ 306,892
------------
SUPPORT SERVICES--1.76%
2,400 Infosys Technologies....................................................... 396,606
15,300 Niit....................................................................... 949,232
9,000 Pentafour Software......................................................... 274,128
------------
1,619,966
------------
TELECOMMUNICATIONS--1.92%
220,000 Mahanagar Tele Nigam....................................................... 1,386,858
9,000 Videsh Sanchar Nigam Ltd. ................................................. 383,945
------------
1,770,803
------------
TOBACCO--0.51%
29,300 ITC Ltd. .................................................................. 468,565
------------
TRANSPORTATION--0.00%
300 Great Eastern Shipping Co. ................................................ 128
------------
Total India Common Stocks..................................................................... 8,057,636
------------
INDONESIA--1.27%
BANKS--0.11%
6,254,000 Bank Internasional Indonesia............................................... 105,145
------------
FOODS--0.57%
79,000 H M Sampoerna.............................................................. 177,710
353,000 P.T. Indofoods Sukses Makmur............................................... 341,843
------------
519,553
------------
TELECOMMUNICATIONS--0.46%
825,620 P.T. Telekomunikasi Indonesia.............................................. 424,747
------------
</TABLE>
71
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
INDONESIA--(CONCLUDED)
TRANSPORTATION EQUIPMENT--0.13%
246,000 Astra International........................................................ $ 121,594
------------
Total Indonesia Common Stocks................................................................. 1,171,039
------------
ISRAEL--3.84%
BANKS--1.99%
330,080 Bank Hapoalim B.M. ........................................................ 998,727
389,330 BkLeumiLe-Israel B.M. ..................................................... 831,641
------------
1,830,368
------------
COMPUTER SOFTWARE--0.41%
3,400 Check Point Software Tech Ltd.............................................. 374,584
------------
ELECTRONIC & ELECTRICAL EQUIPMENT--0.20%
3,290 Nice Systems Ltd........................................................... 183,829
------------
PHARMACEUTICALS--0.61%
8,580 Teva Pharmaceutical Industries Ltd., ADR................................... 561,454
------------
RETAILERS, FOOD--0.23%
18,134 Blue Square-Israel Ltd ADS................................................. 213,075
------------
TELECOMMUNICATIONS--0.40%
6,880 ECI Telecommunications Ltd.(1) ............................................ 185,760
10,000 Partner Communication Co. Ltd.............................................. 183,750
------------
369,510
------------
Total Israel Common Stocks.................................................................... 3,532,820
------------
KOREA--12.05%
BANKS--3.01%
84,000 Hanvit Bank................................................................ 217,944
51,129 Kookmin Bank............................................................... 919,275
169,030 Korea Exchange Bank........................................................ 588,257
82,000 Shinhan Bank............................................................... 1,043,703
------------
2,769,179
------------
COMMERCE/INDUSTRIAL--0.34%
21,000 Samsung Co................................................................. 317,757
------------
ELECTRICAL APPLIANCES--5.45%
29,284 Hyundai Electronics........................................................ 688,115
17,408 Samsung Electronics Co. ................................................... 4,322,948
------------
5,011,063
------------
ELECTRICITY & GAS--1.62%
51,720 Korea Electric Power Corp.................................................. 1,486,643
------------
1,486,643
------------
IRON & STEEL--0.12%
850 Pohang Iron & Steel Co. Ltd. .............................................. 108,673
TELECOMMUNICATIONS--1.51%
2,410 Korea Telecom.............................................................. 270,280
20,700 Korea Telecom ADR.......................................................... 1,124,269
------------
1,394,549
------------
Total Korea Common Stocks..................................................................... 11,087,864
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
MALAYSIA--1.17%
BANKS--0.27%
41,000 Commerce Asset Holdings.................................................... $ 121,921
28,000 Malayan Banking Berhad..................................................... 123,053
------------
244,974
------------
COMMERCE/INDUSTRIAL--0.17%
42,000 AMMB Holdings Berhad....................................................... 152,526
------------
CONSTRUCTION--0.12%
56,000 United Engineers (Malaysia) Ltd. Berhad.................................... 110,526
------------
ELECTRICITY & GAS--0.26%
79,000 Tenaga Nasional Berhad..................................................... 241,158
------------
SERVICES--0.22%
30,000 Resorts World Berhad....................................................... 104,210
40,000 Tanjong PLC................................................................ 101,053
------------
205,263
------------
TELECOMMUNICATIONS--0.13%
29,000 Telekom Malaysia Berhad.................................................... 120,579
------------
Total Malaysia Common Stocks.................................................................. 1,075,026
------------
MAURITIUS--0.23%
OTHER FINANCIAL--0.23%
301,000 State Bank of Mauritius.................................................... 208,807
------------
MEXICO--12.50%
ALCOHOLIC BEVERAGES--0.44%
181,500 Grupo Modelo S.A. de CV.................................................... 409,845
------------
BANKS--1.04%
184,100 Grupo Financiero Banamex Accival Series B*................................. 727,973
638,000 Grupo Financiero Bancomer Series 'O'....................................... 228,160
------------
956,133
------------
BREWERIES, PUBS, & RESTAURANTS--0.83%
189,400 Fomento Economico Mexica S.A. de C.V. Series B and 4 Units Series D*....... 760,541
------------
CONSTRUCTION--0.56%
192,000 Consorico ARA S.A. de C.V.*................................................ 278,574
74,300 Grupo Industrial Saltillo, S.A. de C.V. ................................... 211,808
10,000 Hylsamex S.A. de C.V. ..................................................... 20,844
------------
511,226
------------
CONSTRUCTION/BUILDING MATERIALS--0.90%
192,461 Cemex S.A. ................................................................ 825,928
------------
DIVERSIFIED INDUSTRIES--0.39%
98,600 Alfa S.A. ................................................................. 360,670
------------
FOOD & DRUG RETAILERS--0.11%
94,000 Grupo Continential......................................................... 105,650
------------
</TABLE>
72
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--(CONTINUED)
MEXICO--(CONCLUDED)
FOOD PRODUCERS--0.27%
152,120 Grupo Industrial Bimbo S.A. de C.V. Series 'A' NPV......................... $ 250,554
------------
MEDIA--1.44%
108,700 Controladora Commercial Mexicana........................................... 108,844
22,000 Grupo Televisa, S.A. de C.V. GDS........................................... 1,221,000
------------
1,329,844
------------
METALS--0.27%
16,500 Tubos de Acero de Mexico S.A. de C.V. ADR*(1).............................. 245,438
------------
MINING--0.25%
43,000 Grupo Mexico, S.A. de C.V. Series B........................................ 228,027
------------
PAPER, PACKAGING & PRINTING--0.46%
139,750 Kimberly-Clark de Mexico S.A. de C.V. ..................................... 421,235
------------
RETAILERS, GENERAL--0.95%
533,000 Cifra S.A. de C.V. Series C*............................................... 870,271
------------
TELECOMMUNICATIONS--4.59%
5,000 Carso Global Telecom Series 'A'............................................ 49,964
39,200 Telefonos de Mexico, S.A. de C.V. ADR(1)................................... 4,174,800
------------
4,224,764
------------
Total Mexico Common Stocks.................................................................... 11,500,126
------------
PERU--1.05%
BANKS--0.28%
21,500 Credicorp Ltd. ADR......................................................... 256,656
------------
MINING--0.24%
11,600 Compania de Minas Buenaventura S.A. ADS.................................... 217,500
------------
TELECOMMUNICATIONS--0.53%
30,000 Telefonica del Peru ADS.................................................... 489,375
------------
Total Peru Common Stocks...................................................................... 963,531
------------
PHILIPPINES--0.94%
ELECTRICITY & GAS--0.43%
149,520 Manila Electric Co. Class B................................................ 401,916
------------
REAL ESTATE--0.34%
624,000 Ayala Corp................................................................. 165,425
920,000 SM Prime................................................................... 145,204
------------
310,629
------------
TELECOMMUNICATIONS--0.17%
6,580 Philippine Long Distance
Telephone Co. ........................................................... 154,155
------------
Total Philippines Common Stocks............................................................... 866,700
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
POLAND--1.44%
BANKS--0.10%
6,406 Bank Pekao................................................................. $ 89,623
------------
DIVERSIFIED HOLDINGS COMPANIES--0.54%
48,940 Elektrim*.................................................................. 499,862
------------
FINANCIAL INSTITUTIONS/SERVICES--0.08%
4,490 Bank Handlowy W Warszawie S.A. ............................................ 73,861
------------
METALS & MINING--0.38%
22,020 Kghm Polska Miedz S.A. .................................................... 343,512
------------
TELECOMMUNICATIONS--0.34%
46,070 Telekomunika Polska S.A. GDR............................................... 313,276
------------
Total Poland Common Stocks.................................................................... 1,320,134
------------
RUSSIA--2.72%
OIL & GAS--2.40%
9,000 Gazprom ADR................................................................ 81,450
21,705 Lukoil Holding ADR......................................................... 1,003,856
83,150 Surgutneftegaz ADR......................................................... 1,122,525
------------
2,207,831
------------
UTILITIES--0.32%
20,980 Unified Energy System...................................................... 291,098
------------
Total Russia Common Stocks.................................................................... 2,498,929
------------
SOUTH AFRICA--8.16%
BANKS--0.88%
97,872 Amalgamated Bank of South Africa Group Ltd. ............................... 403,276
95,300 Standard Bank Investment................................................... 406,271
------------
809,547
------------
BREWERIES, PUBS, & RESTAURANTS--0.49%
47,651 South African Breweries Ltd. .............................................. 453,100
------------
DIVERSIFIED INDUSTRIALS--0.78%
54,532 Barlow Ltd. ............................................................... 384,576
158,275 Malbak Ltd. ............................................................... 109,112
25,600 Rembrandt Group Ltd. ...................................................... 220,704
------------
714,392
------------
ELECTRONIC & ELECTRICAL EQUIPMENT--0.70%
96,625 Dimension Data Holdings Ltd.(1) ........................................... 640,083
------------
FINANCIAL SERVICES--0.66%
450,175 FirstRand Ltd. ............................................................ 609,984
------------
HOUSEHOLD GOODS & TEXTILES--0.35%
346,800 Profurn.................................................................... 324,266
------------
INSURANCE--0.48%
317,565 Sanlam Ltd.*............................................................... 445,396
------------
LIFE ASSURANCE--0.38%
31,920 Liberty Life Association................................................... 347,023
------------
</TABLE>
73
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
SOUTH AFRICA--(CONCLUDED)
MEDIA--0.18%
105,000 Primedia Limited........................................................... $ 167,235
------------
MINING--0.81%
6,000 Anglo American Platinum*................................................... 180,666
21,600 De Beers Centenary......................................................... 562,764
------------
743,430
------------
OIL EXPLORATION & PRODUCTION--0.74%
85,960 Sasol Ltd. ................................................................ 678,416
------------
OTHER FINANCIAL--0.28%
33,100 Fedsure Holdings Ltd. ..................................................... 255,987
------------
PAPER, PACKAGING & PRINTING--0.88%
93,000 Nampak Ltd. ............................................................... 246,870
55,600 Sappi...................................................................... 563,930
------------
810,800
------------
RETAILERS, GENERAL--0.55%
124,237 LA Retail Stores Ltd. ..................................................... 110,258
388,742 Metro Cash and Carry....................................................... 400,447
------------
510,705
------------
Total South Africa Common Stocks.............................................................. 7,510,364
------------
TAIWAN--13.09%
BANKS--1.25%
891,000 China Trust Co. ........................................................... 1,150,240
------------
CHEMICALS--1.47%
233,750 Formosa Plastic............................................................ 525,795
344,216 Nan Ya Plastic............................................................. 830,382
------------
1,356,177
------------
ELECTRICAL APPLIANCES--8.01%
368,000 Acer Inc*.................................................................. 1,151,687
250,000 ASE Industries Inc. ....................................................... 961,695
95,000 D-Link Ord................................................................. 260,147
81,000 Taiwan Semiconductor Manufacturing Co.*.................................... 536,039
1,116,000 United Microelectronics Corp. ............................................. 4,456,724
------------
7,366,292
------------
MACHINERY/ENGINE SERVICES--0.72%
81,600 Hon Hai Precision*......................................................... 662,376
------------
TELECOMMUNICATIONS--0.37%
53,000 Systex Corp. .............................................................. 342,103
------------
TEXTILES--1.27%
497,420 Far East Textile........................................................... 1,167,539
------------
Total Taiwan Common Stocks.................................................................... 12,044,727
------------
THAILAND--2.47%
BANKS--0.72%
72,000 Bangkok Bank Public Co. Ltd.*.............................................. 187,075
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
THAILAND--(CONCLUDED)
BANKS--(CONCLUDED)
316,000 Thai Farmers Bank Public Co. Ltd. ......................................... $ 471,579
------------
658,654
------------
COMMUNICATIONS--0.82%
422,000 TelecomAsia Corporation Public Co. Ltd. ................................... 691,619
16,000 Total Access Communication Public Co. Ltd. ................................ 63,680
------------
755,299
------------
CONSTRUCTION--0.48%
16,000 Siam Cement Co.*........................................................... 441,732
------------
TELECOMMUNICATIONS--0.45%
29,600 Advanced Info Services Public Co. Ltd.*.................................... 418,068
------------
Total Thailand Common Stocks.................................................................. 2,273,753
------------
TURKEY--5.21%
BANKS--2.72%
30,500,000 Akbank T.A.S. ............................................................. 790,212
29,052,650 Turkyie Garanti Bankasi.................................................... 493,157
42,540,750 Yapi Ve Kredi Bankasi A.S. ................................................ 1,216,188
------------
2,499,557
------------
BEVERAGE/TOBACCO MANUFACTURING--0.21%
1,252,820 Ege Biracilik Ve Malt Sanayi............................................... 92,899
1,976,180 Erciyas Biracilik.......................................................... 100,635
------------
193,534
------------
CONSTRUCTION/BUILDING MATERIALS--0.09%
3,538,000 Akcansa Cimento S.A. ...................................................... 86,923
------------
DIVERSIFIED INDUSTRIALS--0.35%
1,521,280 KOC Holding................................................................ 319,391
------------
ELECTRICAL EQUIPMENT--0.10%
302,000 Vestel Electronic Sanayi ve Ticaret........................................ 90,385
------------
FINANCIAL INSTITUTIONS/SERVICES--0.43%
7,467,020 Haci Omer Sabanci.......................................................... 393,591
------------
MEDIA--0.10%
3,782,660 Hurriyet Gazete............................................................ 89,555
------------
RETAIL TRADE--0.88%
1,042,502 Migros Turk T.A.S. ........................................................ 810,293
------------
STEEL & OTHER MATERIALS--0.33%
7,350,000 Eregli Demir Celik......................................................... 308,625
------------
Total Turkey Common Stocks.................................................................... 4,791,854
------------
ZIMBABWE--0.18%
TELECOMMUNICATIONS--0.18%
442,000 Econet Wireless Holding.................................................... 168,341
------------
Total Common Stocks (cost--$64,100,551)....................................................... 82,927,539
------------
</TABLE>
74
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------- ---------------
<C> <S> <C>
PREFERRED STOCKS--7.78%
BRAZIL--7.78%
BANKS/RETAIL--2.17%
73,460,000 Banco Bradesco S.A. ....................................................... $ 595,919
4,290,000 Banco Itau S.A. ........................................................... 300,133
39,700 Companhia Vale Do Rio Doce 'A'............................................. 1,102,166
------------
1,998,218
------------
BREWERIES, PUBS, & RESTAURANTS--0.54%
728,000 Companhia Cervejaria Brahma................................................ 501,233
------------
BUILDING MATERIALS & MERCHANTS--0.21%
1,380,000 Companhia Cimento Portland Itau............................................ 192,326
------------
ELECTRICITY--0.64%
40,000 Companhia Paranaense de Energia Copel ADR.................................. 322,500
4,101,130 Eletropaulo Electricidade Sao Paulo........................................ 266,403
------------
588,903
------------
ENGINEERING--0.27%
8,950,000 Gerdau SA Siderugia........................................................ 248,473
------------
OIL EXPLORATION & PRODUCTION--1.08%
4,369,000 Petrol Brasileiro-Petrobras................................................ 989,757
------------
SUPPORT SERVICES--0.28%
14,901,879 Companhia Energetica de Minas Gerais....................................... 254,846
------------
TELECOMMUNICATIONS--2.59%
43,550,000 Tele Centro Sul Pa......................................................... 701,249
17,000 Telecomunicacoes de Sao Paulo (Telesp)..................................... 493,000
35,672,527 Telesp Cellular Participacoes.............................................. 564,501
22,083,207 Telesp Tel Sao Paulo....................................................... 625,344
------------
2,384,094
------------
Total Preferred Stocks (cost--$5,244,977)..................................................... 7,157,850
------------
<CAPTION>
NUMBER OF
WARRANTS VALUE
- --------------- ---------------
<C> <S> <C>
WARRANTS--0.76%
KOREA--0.76%
TELECOMMUNICATIONS--0.76%
5,900 SK Telecom................................................................. $ 695,020
------------
MEXICO--0.00%
CONSTRUCTION/BUILDING MATERIALS--0.00%
12,000 Cemex Appreciation......................................................... 3,831
------------
Total Warrants (cost--$552,544)............................................................... 698,851
------------
<CAPTION>
NUMBER OF
RIGHTS
- ---------------
<C> <S> <C>
RIGHTS--0.02%
BRAZIL--0.02%
BANKS--0.02%
4,205,131 Banco Bradesc.............................................................. 17,745
------------
BANKS/RETAIL--0.00%
11,000 Companhia Vale do Rio Doce................................................. 0
------------
Total Rights (cost--$0)....................................................................... 17,745
------------
Total Investments (cost--$69,898,072)--98.69%................................................. 90,801,985
1,209,370
Other assets in excess of liabilities--1.31%..................................................
------------
Net Assets--100.00%........................................................................... $ 92,011,355
============
</TABLE>
- ---------------
* Non-income producing security.
+ Illiquid security representing 0.21% of net assets.
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, 2000.
See accompanying notes to financial statements
75
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 2000(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--$60,928,754; $276,663,285;
$142,851,987; $259,337,218;
$57,006,937; $110,085,223;
$381,575,937; $313,886,549;
$226,025,366; $186,816,567;
$192,639,436; $69,898,072,
respectively)......................... $60,928,754 $272,117,770 $137,863,898 $250,888,972
Investments of cash collateral received
for securities loaned, at value
(cost--$0; $0; $35,119,000; $0; $0;
$0; $47,861,501; $63,957,700;
$6,443,600; $54,222,505; $8,968,189;
$6,465,800, respectively)............. -- -- 35,119,000 --
Cash (including cash denominated in
foreign currencies, at value)......... -- -- -- 988,350
Receivable for investments sold......... -- 63,898,851 110 3,569,799
Receivable for shares of beneficial
interest sold......................... 142,169 248,182 178,293 179,793
Unrealized appreciation of forward
foreign currency contracts............ -- -- -- 6,902
Dividends and interest receivable....... 255,264 1,860,862 2,296,323 2,021,808
Receivable from investment adviser...... 3,118 -- -- --
Variation margin receivable............. -- 115,466 -- --
Deferred organizational expenses........ 10,489 10,489 10,489 10,489
Other assets............................ 181,773 33,238 49,828 17,999
----------- ------------ ------------ ------------
Total assets............................ 61,521,567 338,284,858 175,517,941 257,684,112
----------- ------------ ------------ ------------
LIABILITIES
Payable for shares of beneficial
interest repurchased.................. 2,171,916 257,294 259,858 190,149
Dividends payable to shareholders....... 117,711 -- -- --
Payable to custodian.................... 8,758 265,231 263,744 --
Payable for investments purchased....... -- 137,638,726 -- 27,101,979
Payable for cash collateral for
securities loaned..................... -- -- 35,119,000 --
Unrealized depreciation of forward
foreign currency contracts............ -- -- -- 389,428
Outstanding options written, at value... -- 1,400 -- 201,859
Variation margin payable................ -- -- -- 142,405
Payable to affiliates................... -- 109,542 78,989 125,113
Accrued expenses and other
liabilities........................... 171,653 105,140 45,966 19,511
----------- ------------ ------------ ------------
Total liabilities....................... 2,470,038 138,377,333 35,767,557 28,170,444
----------- ------------ ------------ ------------
NET ASSETS
Beneficial interest shares of $0.001 par
value outstanding--59,052,092;
16,826,133; 11,962,908; 19,165,940;
4,631,247; 9,573,840; 21,526,903;
15,510,803; 15,399,548; 11,707,836;
13,111,901; 6,436,532, respectively
(unlimited amount authorized)......... 59,052,092 208,193,047 146,185,798 247,640,964
Accumulated undistributed (distributions
in excess of) net investment
income (loss)......................... -- 897,507 636,587 1,174,473
Accumulated net realized gains (losses)
from investments, other assets,
liabilities, futures, options and
forward contracts denominated in
foreign currency transactions......... (563) (4,871,796) (2,083,912) (10,160,394)
Net unrealized appreciation
(depreciation) of investments, other
assets, liabilities, futures, options
written and forward contracts
denominated in foreign currencies..... -- (4,311,233) (4,988,089) (9,141,375)
----------- ------------ ------------ ------------
Net assets.............................. $59,051,529 $199,907,525 $139,750,384 $229,513,668
=========== ============ ============ ============
Net asset value, offering price and
redemption value per share............ $1.00 $11.88 $11.68 $11.98
=========== ============ ============ ============
</TABLE>
76
<PAGE>
<TABLE>
<CAPTION>
PACE PACE
PACE PACE PACE PACE SMALL/MEDIUM SMALL/MEDIUM
MUNICIPAL GLOBAL FIXED LARGE COMPANY LARGE COMPANY COMPANY COMPANY
FIXED INCOME INCOME VALUE EQUITY GROWTH EQUITY VALUE EQUITY GROWTH EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
------------ ------------ ------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost--$60,928,754; $276,663,285;
$142,851,987; $259,337,218;
$57,006,937; $110,085,223;
$381,575,937; $313,886,549;
$226,025,366; $186,816,567;
$192,639,436; $69,898,072,
respectively)......................... $54,296,573 $101,384,710 $350,766,796 $432,538,671 $200,445,386 $301,870,553
Investments of cash collateral received
for securities loaned, at value
(cost--$0; $0; $35,119,000; $0; $0;
$0; $47,861,501; $63,957,700;
$6,443,600; $54,222,505; $8,968,189;
$6,465,800, respectively)............. -- -- 47,861,501 63,957,700 6,443,600 54,222,505
Cash (including cash denominated in
foreign currencies, at value)......... -- 1,212,917 539 108 781 544
Receivable for investments sold......... -- 3,021,353 1,247,510 616,222 -- 4,174,203
Receivable for shares of beneficial
interest sold......................... 14,096 111,733 394,807 472,657 680,739 285,713
Unrealized appreciation of forward
foreign currency contracts............ -- 235,426 -- -- -- --
Dividends and interest receivable....... 846,436 1,884,425 122,536 126,096 86,479 213,815
Receivable from investment adviser...... -- -- -- -- -- --
Variation margin receivable............. -- -- 137,868 -- -- --
Deferred organizational expenses........ 10,489 10,489 10,489 10,489 10,489 10,489
Other assets............................ 43,748 15,338 52,004 36,532 48,776 26,872
----------- ------------ ------------ ------------ ------------ ------------
Total assets............................ 55,211,342 107,876,391 400,594,050 497,758,475 207,716,250 360,804,694
----------- ------------ ------------ ------------ ------------ ------------
LIABILITIES
Payable for shares of beneficial
interest repurchased.................. 77,759 179,156 544,542 359,968 558,829 318,112
Dividends payable to shareholders....... -- -- -- -- -- --
Payable to custodian.................... -- -- -- -- -- --
Payable for investments purchased....... 17,021 2,465,246 2,308,348 606,270 4,310,095 2,679,916
Payable for cash collateral for
securities loaned..................... -- -- 47,861,501 63,957,700 6,443,600 54,222,505
Unrealized depreciation of forward
foreign currency contracts............ -- 715,855 -- -- -- --
Outstanding options written, at value... -- -- -- -- -- --
Variation margin payable................ -- -- -- -- -- --
Payable to affiliates................... 26,462 51,989 241,049 305,058 129,046 238,609
Accrued expenses and other
liabilities........................... 94,617 35,889 155,205 117,591 111,812 262,959
----------- ------------ ------------ ------------ ------------ ------------
Total liabilities....................... 215,859 3,448,135 51,110,645 65,346,587 11,553,382 57,722,101
----------- ------------ ------------ ------------ ------------ ------------
NET ASSETS
Beneficial interest shares of $0.001 par
value outstanding--59,052,092;
16,826,133; 11,962,908; 19,165,940;
4,631,247; 9,573,840; 21,526,903;
15,510,803; 15,399,548; 11,707,836;
13,111,901; 6,436,532, respectively
(unlimited amount authorized)......... 57,804,412 117,131,596 370,222,955 275,560,330 221,320,738 135,477,650
Accumulated undistributed (distributions
in excess of) net investment
income (loss)......................... 239,774 (1,486,742) (20,278) (797,873) 139,411 (963,343)
Accumulated net realized gains (losses)
from investments, other assets,
liabilities, futures, options and
forward contracts denominated in
foreign currency transactions......... (338,339) (1,957,637) 10,318,196 38,997,309 282,699 53,514,300
Net unrealized appreciation
(depreciation) of investments, other
assets, liabilities, futures, options
written and forward contracts
denominated in foreign currencies..... (2,710,364) (9,258,961) (31,037,468) 118,652,122 (25,579,980) 115,053,986
----------- ------------ ------------ ------------ ------------ ------------
Net assets.............................. $54,995,483 $104,428,256 $349,483,405 $432,411,888 $196,162,868 $303,082,593
=========== ============ ============ ============ ============ ============
Net asset value, offering price and
redemption value per share............ $11.87 $10.91 $16.23 $27.88 $12.74 $25.89
=========== ============ ============ ============ ============ ============
<CAPTION>
PACE
PACE INTERNATIONAL
INTERNATIONAL EMERGING MARKETS
EQUITY EQUITY
INVESTMENTS INVESTMENTS
------------- ----------------
<S> <C> <C>
ASSETS
Investments, at value
(cost--$60,928,754; $276,663,285;
$142,851,987; $259,337,218;
$57,006,937; $110,085,223;
$381,575,937; $313,886,549;
$226,025,366; $186,816,567;
$192,639,436; $69,898,072,
respectively)......................... $247,308,121 $ 90,801,985
Investments of cash collateral received
for securities loaned, at value
(cost--$0; $0; $35,119,000; $0; $0;
$0; $47,861,501; $63,957,700;
$6,443,600; $54,222,505; $8,968,189;
$6,465,800, respectively)............. 8,968,189 6,465,800
Cash (including cash denominated in
foreign currencies, at value)......... 9,222,158 1,435,794
Receivable for investments sold......... 269,715 1,114,570
Receivable for shares of beneficial
interest sold......................... 307,773 86,871
Unrealized appreciation of forward
foreign currency contracts............ 139,341 --
Dividends and interest receivable....... 375,438 197,937
Receivable from investment adviser...... -- --
Variation margin receivable............. -- --
Deferred organizational expenses........ 10,489 10,489
Other assets............................ 178,334 60,020
------------ ------------
Total assets............................ 266,779,558 100,173,466
------------ ------------
LIABILITIES
Payable for shares of beneficial
interest repurchased.................. 240,610 94,358
Dividends payable to shareholders....... -- --
Payable to custodian.................... -- --
Payable for investments purchased....... 3,558,189 1,054,953
Payable for cash collateral for
securities loaned..................... 8,968,189 6,465,800
Unrealized depreciation of forward
foreign currency contracts............ 12,105 --
Outstanding options written, at value... -- --
Variation margin payable................ -- --
Payable to affiliates................... 203,233 78,625
Accrued expenses and other
liabilities........................... 171,820 468,375
------------ ------------
Total liabilities....................... 13,154,146 8,162,111
------------ ------------
NET ASSETS
Beneficial interest shares of $0.001 par
value outstanding--59,052,092;
16,826,133; 11,962,908; 19,165,940;
4,631,247; 9,573,840; 21,526,903;
15,510,803; 15,399,548; 11,707,836;
13,111,901; 6,436,532, respectively
(unlimited amount authorized)......... 189,278,400 74,081,236
Accumulated undistributed (distributions
in excess of) net investment
income (loss)......................... (3,647) (112,091)
Accumulated net realized gains (losses)
from investments, other assets,
liabilities, futures, options and
forward contracts denominated in
foreign currency transactions......... 9,485,589 (2,556,968)
Net unrealized appreciation
(depreciation) of investments, other
assets, liabilities, futures, options
written and forward contracts
denominated in foreign currencies..... 54,865,070 20,599,178
------------ ------------
Net assets.............................. $253,625,412 $ 92,011,355
============ ============
Net asset value, offering price and
redemption value per share............ $19.34 $14.30
============ ============
</TABLE>
See accompanying notes to financial statements
77
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000(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)........................ $1,593,909 $ 6,370,642 $ 4,657,739 $ 7,641,659
Dividends (net of foreign withholding
taxes, if any)........................ -- -- -- --
---------- ----------- ----------- -----------
1,593,909 6,370,642 4,657,739 7,641,659
---------- ----------- ----------- -----------
EXPENSES:
Investment advisory and administration
fees.................................. 99,656 692,639 425,865 794,399
Transfer agency fees and expenses....... 86,907 44,497 21,702 34,046
Reports and notices to shareholders..... 24,145 19,851 9,224 11,916
Legal and audit......................... 17,574 23,484 18,099 17,825
Trustees' fees and expenses............. 13,125 13,125 13,125 13,125
Federal and state registration fees..... 11,819 14,258 8,918 6,467
Amortization of organizational
expenses.............................. 9,568 9,568 9,568 9,568
Custody and accounting.................. 3,823 60,607 42,314 64,360
Other expenses.......................... 2,363 7,741 1,530 1,904
---------- ----------- ----------- -----------
268,980 885,770 550,345 953,610
Less: Fee waivers and reimbursements
from investment adviser............... (126,660) (44,524) (7,187) (46,046)
---------- ----------- ----------- -----------
Net expenses............................ 142,320 841,246 543,158 907,564
---------- ----------- ----------- -----------
Net investment income (loss)............ 1,451,589 5,529,396 4,114,581 6,734,095
---------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES)
FROM INVESTMENT ACTIVITIES:
Net realized gains (losses) from:
Investment transactions............... 66 (1,664,771) (1,510,593) (827,065)
Futures............................... -- -- -- (2,152,360)
Options written....................... -- 111,328 -- (600,005)
Foreign currency transactions......... -- -- -- (10,978)
Net change in unrealized
appreciation/depreciation of:
Investments........................... -- (1,881,290) (1,993,940) (2,812,909)
Futures............................... -- -- -- 149,398
Options............................... -- 234,282 -- (34,029)
Other assets, liabilities and forward
contracts denominated in foreign
currencies........................... -- -- -- (393,248)
---------- ----------- ----------- -----------
Net realized and unrealized gains
(losses) from investment activities... 66 (3,200,451) (3,504,533) (6,681,196)
---------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............. $1,451,655 $ 2,328,945 $ 610,048 $ 52,899
========== =========== =========== ===========
</TABLE>
78
<PAGE>
<TABLE>
<CAPTION>
PACE PACE
PACE PACE PACE PACE SMALL/MEDIUM SMALL/MEDIUM
MUNICIPAL GLOBAL FIXED LARGE COMPANY LARGE COMPANY COMPANY COMPANY
FIXED INCOME INCOME VALUE EQUITY GROWTH EQUITY VALUE EQUITY GROWTH EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
------------ ------------ ------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding
taxes, if any)........................ $ 1,548,622 $ 2,899,112 $ 250,220 $ 158,554 $ 287,422 $ 333,290
Dividends (net of foreign withholding
taxes, if any)........................ -- -- 2,687,769 1,006,418 1,254,854 119,346
----------- ----------- ------------ ----------- ------------ ------------
1,548,622 2,899,112 2,937,989 1,164,972 1,542,276 452,636
----------- ----------- ------------ ----------- ------------ ------------
EXPENSES:
Investment advisory and administration
fees.................................. 168,358 415,372 1,424,851 1,675,945 771,327 1,176,877
Transfer agency fees and expenses....... 12,000 49,258 77,073 64,392 55,200 61,223
Reports and notices to shareholders..... 10,362 10,727 38,497 22,875 23,339 18,739
Legal and audit......................... 15,040 13,172 33,910 29,293 26,680 37,239
Trustees' fees and expenses............. 13,125 13,125 13,125 13,125 13,125 13,125
Federal and state registration fees..... 7,668 9,940 30,490 20,565 16,082 15,382
Amortization of organizational
expenses.............................. 9,568 9,568 9,568 9,568 9,568 9,568
Custody and accounting.................. 17,927 76,367 103,864 126,099 57,849 88,870
Other expenses.......................... 2,541 2,717 16,989 10,267 7,860 1,168
----------- ----------- ------------ ----------- ------------ ------------
256,589 600,246 1,748,367 1,972,129 981,030 1,422,191
Less: Fee waivers and reimbursements
from investment adviser............... (18,082) (107,058) (9,640) (8,152) (18,493) (5,081)
----------- ----------- ------------ ----------- ------------ ------------
Net expenses............................ 238,507 493,188 1,738,727 1,963,977 962,537 1,417,110
----------- ----------- ------------ ----------- ------------ ------------
Net investment income (loss)............ 1,310,115 2,405,924 1,199,262 (799,005) 579,739 (964,474)
----------- ----------- ------------ ----------- ------------ ------------
REALIZED AND UNREALIZED GAINS (LOSSES)
FROM INVESTMENT ACTIVITIES:
Net realized gains (losses) from:
Investment transactions............... (57,731) (1,950,650) 16,433,008 40,657,832 3,009,371 71,653,178
Futures............................... -- -- 368,009 -- -- --
Options written....................... -- -- -- -- -- --
Foreign currency transactions......... -- (5,758) -- -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments........................... (2,575,451) (4,553,590) (78,505,318) 2,076,537 (34,821,682) 31,697,651
Futures............................... -- -- (330,994) -- -- --
Options............................... -- -- -- -- -- --
Other assets, liabilities and forward
contracts denominated in foreign
currencies........................... -- (1,269,093) -- -- -- --
----------- ----------- ------------ ----------- ------------ ------------
Net realized and unrealized gains
(losses) from investment activities... (2,633,182) (7,779,091) (62,035,295) 42,734,369 (31,812,311) 103,350,829
----------- ----------- ------------ ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............. $(1,323,067) $(5,373,167) $(60,836,033) $41,935,364 $(31,232,572) $102,386,355
=========== =========== ============ =========== ============ ============
<CAPTION>
PACE
PACE INTERNATIONAL
INTERNATIONAL EMERGING MARKETS
EQUITY EQUITY
INVESTMENTS INVESTMENTS
------------- ----------------
<S> <C> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding
taxes, if any)........................ $ 422,452 $ 13,584
Dividends (net of foreign withholding
taxes, if any)........................ 1,322,565 553,307
----------- -----------
1,745,017 566,891
----------- -----------
EXPENSES:
Investment advisory and administration
fees.................................. 1,078,252 502,251
Transfer agency fees and expenses....... 55,952 47,273
Reports and notices to shareholders..... 24,702 11,047
Legal and audit......................... 25,580 30,290
Trustees' fees and expenses............. 13,125 13,125
Federal and state registration fees..... 19,231 8,056
Amortization of organizational
expenses.............................. 9,568 9,568
Custody and accounting.................. 180,387 160,899
Other expenses.......................... 15,328 1,123
----------- -----------
1,422,125 783,632
Less: Fee waivers and reimbursements
from investment adviser............... (5,028) (104,073)
----------- -----------
Net expenses............................ 1,417,097 679,559
----------- -----------
Net investment income (loss)............ 327,920 (112,668)
----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES)
FROM INVESTMENT ACTIVITIES:
Net realized gains (losses) from:
Investment transactions............... 11,663,711 8,454,776
Futures............................... -- --
Options written....................... -- --
Foreign currency transactions......... (2,043,556) (136,985)
Net change in unrealized
appreciation/depreciation of:
Investments........................... 31,407,378 9,154,152
Futures............................... -- --
Options............................... -- --
Other assets, liabilities and forward
contracts denominated in foreign
currencies........................... 159,417 (5,049)
----------- -----------
Net realized and unrealized gains
(losses) from investment activities... 41,186,950 17,466,894
----------- -----------
Net increase (decrease) in net assets
resulting from operations............. $41,514,870 $17,354,226
=========== ===========
</TABLE>
See accompanying notes to financial statements
79
<PAGE>
PAINEWEBBER PACE SELECT ADVISORS TRUST
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PACE
PACE GOVERNMENT SECURITIES
MONEY MARKET INVESTMENTS FIXED INCOME INVESTMENTS
------------------------------- -------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED YEAR
JANUARY 31, 2000 ENDED JANUARY 31, 2000 ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
---------------- ------------- ---------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income................. $ 1,451,589 $ 1,534,974 $ 5,529,396 $ 10,030,353
Net realized gains (losses) from:
Investment, future and option
transactions....................... 66 165 (1,553,443) (2,597,744)
Foreign currency transactions....... -- -- -- 57,256
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... -- -- (1,647,008) (4,324,044)
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ 1,451,655 1,535,139 2,328,945 3,165,821
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (1,451,589) (1,534,974) (5,860,888) (10,395,294)
Net realized gains from investment
transactions......................... -- -- -- (453,493)
------------ ------------ ------------ ------------
(1,451,589) (1,534,974) (5,860,888) (10,848,787)
------------ ------------ ------------ ------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 51,871,360 73,861,364 39,737,882 76,221,851
Cost of shares repurchased............ (41,398,691) (53,636,534) (33,754,525) (49,556,340)
Proceeds from dividends reinvested.... 1,405,167 1,455,251 5,737,263 10,617,096
------------ ------------ ------------ ------------
Net increase in net assets from
beneficial interest transactions..... 11,877,836 21,680,081 11,720,620 37,282,607
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets............................... 11,877,902 21,680,246 8,188,677 29,599,641
NET ASSETS:
Beginning of period................... 47,173,627 25,493,381 191,718,848 162,119,207
------------ ------------ ------------ ------------
End of period......................... $ 59,051,529 $ 47,173,627 $199,907,525 $191,718,848
============ ============ ============ ============
Undistributed net investment income... $ -- $ -- $ 897,507 $ 1,228,999
============ ============ ============ ============
</TABLE>
80
<PAGE>
<TABLE>
<CAPTION>
PACE PACE
INTERMEDIATE FIXED INCOME STRATEGIC FIXED INCOME
INVESTMENTS INVESTMENTS
------------------------------- -------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED YEAR
JANUARY 31, 2000 ENDED JANUARY 31, 2000 ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
---------------- ------------- ---------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income................. $ 4,114,581 $ 6,492,499 $ 6,734,095 $ 10,253,465
Net realized gains (losses) from:
Investment, future and option
transactions....................... (1,510,593) (168,313) (3,579,430) (4,006,750)
Foreign currency transactions....... -- -- (10,978) (11,967)
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... (1,993,940) (3,749,017) (2,697,540) (8,421,318)
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- (393,248) (5,496)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ 610,048 2,575,169 52,899 (2,192,066)
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (4,100,549) (6,342,333) (6,605,821) (9,918,107)
Net realized gains from investment
transactions......................... (35,975) (724,632) -- (4,178,827)
------------ ------------ ------------ ------------
(4,136,524) (7,066,965) (6,605,821) (14,096,934)
------------ ------------ ------------ ------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 26,481,272 71,711,855 39,153,336 139,745,175
Cost of shares repurchased............ (26,285,534) (34,775,205) (31,830,089) (42,026,189)
Proceeds from dividends reinvested.... 4,038,220 6,908,534 6,529,019 13,904,642
------------ ------------ ------------ ------------
Net increase in net assets from
beneficial interest transactions..... 4,233,958 43,845,184 13,852,266 111,623,628
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets............................... 707,482 39,353,388 7,299,344 95,334,628
NET ASSETS:
Beginning of period................... 139,042,902 99,689,514 222,214,324 126,879,696
------------ ------------ ------------ ------------
End of period......................... $139,750,384 $139,042,902 $229,513,668 $222,214,324
============ ============ ============ ============
Undistributed net investment income... $ 636,587 $ 622,555 $ 1,174,473 $ 1,046,199
============ ============ ============ ============
<CAPTION>
PACE PACE
MUNICIPAL FIXED INCOME GLOBAL FIXED INCOME
INVESTMENTS INVESTMENTS
------------------------------- -------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED YEAR
JANUARY 31, 2000 ENDED JANUARY 31, 2000 ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
---------------- ------------- ---------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income................. $ 1,310,115 $ 2,491,105 $ 2,405,924 $ 4,600,527
Net realized gains (losses) from:
Investment, future and option
transactions....................... (57,731) (112,308) (1,950,650) 3,498,901
Foreign currency transactions....... -- -- (5,758) 2,153,170
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... (2,575,451) (1,140,661) (4,553,590) (5,366,888)
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- (1,269,093) 889,876
----------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (1,323,067) 1,238,136 (5,373,167) 5,775,586
----------- ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (1,283,129) (2,465,695) (2,120,017) (6,373,655)
Net realized gains from investment
transactions......................... -- -- (781,420) (3,639,664)
----------- ------------ ------------ ------------
(1,283,129) (2,465,695) (2,901,437) (10,013,319)
----------- ------------ ------------ ------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 8,936,488 20,483,781 24,978,335 35,855,990
Cost of shares repurchased............ (9,233,537) (16,611,583) (16,260,249) (29,144,329)
Proceeds from dividends reinvested.... 1,239,820 2,376,569 2,841,663 9,831,275
----------- ------------ ------------ ------------
Net increase in net assets from
beneficial interest transactions..... 942,771 6,248,767 11,559,749 16,542,936
----------- ------------ ------------ ------------
Net increase (decrease) in net
assets............................... (1,663,425) 5,021,208 3,285,145 12,305,203
NET ASSETS:
Beginning of period................... 56,658,908 51,637,700 101,143,111 88,837,908
----------- ------------ ------------ ------------
End of period......................... $54,995,483 $ 56,658,908 $104,428,256 $101,143,111
=========== ============ ============ ============
Undistributed net investment income... $ 239,774 $ 212,788 $ -- $ --
=========== ============ ============ ============
</TABLE>
See accompanying notes to financial statements
81
<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 FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED YEAR
JANUARY 31, 2000 ENDED JANUARY 31, 2000 ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
----------------- -------------- ----------------- --------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss).......... $ 1,199,262 $ 2,276,863 $ (799,005) $ (781,224)
Net realized gains (losses) from:
Investment, future and option
transactions....................... 16,801,017 25,011,927 40,657,832 10,229,777
Foreign currency transactions....... -- -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... (78,836,312) 14,372,120 2,076,537 52,000,533
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (60,836,033) 41,660,910 41,935,364 61,449,086
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (2,495,534) (2,068,017) -- --
Net realized gains from investment
transactions......................... (30,040,611) (21,559,073) (11,567,262) (19,611,543)
------------ ------------ ------------ ------------
(32,536,145) (23,627,090) (11,567,262) (19,611,543)
------------ ------------ ------------ ------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 86,269,800 148,206,501 76,014,639 142,031,214
Cost of shares repurchased............ (50,811,551) (80,472,039) (65,337,259) (98,726,785)
Proceeds from dividends reinvested.... 31,932,335 23,342,638 11,378,823 19,384,120
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
derived from beneficial interest
transactions......................... 67,390,584 91,077,100 22,056,203 62,688,549
------------ ------------ ------------ ------------
Contribution to capital from
Sub-Adviser.......................... -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets............................... (25,981,594) 109,110,920 52,424,305 104,526,092
NET ASSETS:
Beginning of period................... 375,464,999 266,354,079 379,987,583 275,461,491
------------ ------------ ------------ ------------
End of period......................... $349,483,405 $375,464,999 $432,411,888 $379,987,583
============ ============ ============ ============
Undistributed net investment income... -- $ 1,275,994 -- $ 1,132
============ ============ ============ ============
</TABLE>
82
<PAGE>
<TABLE>
<CAPTION>
PACE PACE
SMALL/MEDIUM COMPANY VALUE SMALL/MEDIUM COMPANY GROWTH
EQUITY INVESTMENTS EQUITY INVESTMENTS
--------------------------------- ---------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED YEAR
JANUARY 31, 2000 ENDED JANUARY 31, 2000 ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
----------------- -------------- ----------------- --------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss).......... $ 579,739 $ 776,036 $ (964,474) $ (1,031,067)
Net realized gains (losses) from:
Investment, future and option
transactions....................... 3,009,371 6,402,434 71,653,178 15,551,333
Foreign currency transactions....... -- -- -- --
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... (34,821,682) (2,998,643) 31,697,651 54,182,221
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (31,232,572) 4,179,827 102,386,355 68,702,487
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (832,372) (1,010,551) -- --
Net realized gains from investment
transactions......................... (9,001,355) (17,717,110) (33,399,939) (5,125,542)
------------ ------------ ------------ ------------
(9,833,727) (18,727,661) (33,399,939) (5,125,542)
------------ ------------ ------------ ------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 47,911,916 78,192,098 34,215,717 69,286,726
Cost of shares repurchased............ (26,526,311) (59,597,665) (98,528,541) (71,374,034)
Proceeds from dividends reinvested.... 9,712,297 18,526,406 33,003,540 5,060,397
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
derived from beneficial interest
transactions......................... 31,097,902 37,120,839 (31,309,284) 2,973,089
------------ ------------ ------------ ------------
Contribution to capital from
Sub-Adviser.......................... -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets............................... (9,968,397) 22,573,005 37,677,132 66,550,034
NET ASSETS:
Beginning of period................... 206,131,265 183,558,260 265,405,461 198,855,427
------------ ------------ ------------ ------------
End of period......................... $196,162,868 $206,131,265 $303,082,593 $265,405,461
============ ============ ============ ============
Undistributed net investment income... $ 139,411 $ 392,044 -- $ 1,131
============ ============ ============ ============
<CAPTION>
PACE
PACE INTERNATIONAL EMERGING MARKETS
INTERNATIONAL EQUITY INVESTMENTS EQUITY INVESTMENTS
---------------------------------- ---------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED YEAR
JANUARY 31, 2000 ENDED JANUARY 31, 2000 ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
----------------- --------------- ----------------- --------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss).......... $ 327,920 $ 951,372 $ (112,668) $ 715,293
Net realized gains (losses) from:
Investment, future and option
transactions....................... 11,663,711 13,004,589 8,454,776 (3,396,344)
Foreign currency transactions....... (2,043,556) 547,518 (136,985) 140,459
Net change in unrealized
appreciation/depreciation of:
Investments, futures and options.... 31,407,378 857,043 9,154,152 17,387,157
Other assets, liabilities and
forward contracts denominated in
foreign currencies................. 159,417 252,109 (5,049) (298,617)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ 41,514,870 15,612,631 17,354,226 14,547,948
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income................. (1,491,665) (1,983,217) (724,583) (468,284)
Net realized gains from investment
transactions......................... (13,070,076) (3,678,063) -- --
------------ ------------ ------------ ------------
(14,561,741) (5,661,280) (724,583) (468,284)
------------ ------------ ------------ ------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of
shares............................... 36,706,621 78,914,213 13,164,845 34,235,058
Cost of shares repurchased............ (39,013,121) (44,926,114) (26,996,911) (23,516,593)
Proceeds from dividends reinvested.... 14,268,026 5,599,716 716,496 462,033
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
derived from beneficial interest
transactions......................... 11,961,526 39,587,815 (13,115,570) 11,180,498
------------ ------------ ------------ ------------
Contribution to capital from
Sub-Adviser.......................... 694,257 -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets............................... 39,608,912 49,539,166 3,514,073 25,260,162
NET ASSETS:
Beginning of period................... 214,016,500 164,477,334 88,497,282 63,237,120
------------ ------------ ------------ ------------
End of period......................... $253,625,412 $214,016,500 $ 92,011,355 $ 88,497,282
============ ============ ============ ============
Undistributed net investment income... -- $ 1,160,098 -- $ 725,160
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements
83
<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").
The 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- Programs.
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--Each Portfolio calculates its net asset value based
on the current market value for its portfolio securities. The Portfolios
normally obtain market values for their securities from independent pricing
sources. Independent pricing sources may use reported last sale prices, current
market quotations or valuations from computerized "matrix" systems that derive
values based on comparable securities. Securities traded in the over-the-
counter ("OTC") market and listed on The Nasdaq Stock Market, Inc. ("Nasdaq")
normally are valued at the last sale price on Nasdaq prior to valuation. Other
OTC securities are valued at the last bid price available prior to valuation.
Securities which are listed on U.S. and foreign stock exchanges normally are
valued at the last sale price on the day the securities are 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 valued on
the exchange designated as the primary market by Mitchell Hutchins Asset
Management Inc. ("Mitchell Hutchins"), a wholly owned asset management
subsidiary of PaineWebber Incorporated ("PaineWebber") and investment adviser
and administrator of the Portfolios, or by the Portfolio's sub-adviser. If a
market value is not available from an independent pricing source for a
particular security, that security is valued at fair value as determined in good
faith by or under the direction of the Trust's board of trustees (the "board").
The amortized cost method of valuation, which approximates market value,
generally is used to value short-term debt instruments with sixty days or less
remaining to maturity, unless the board determines that this does not represent
fair value. Investments of the PACE Money Market Investments are valued using
the amortized cost method of valuation. All investments quoted in foreign
currencies will be 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 Portfolio's custodian.
Foreign currency exchange rates are generally determined prior to the close of
the New York Stock Exchange ("NYSE"). Occasionally, events affecting the value
of foreign investments and such exchange rates occur between the time at which
they are determined and the close of the NYSE, which will not be reflected in
the computation of the
84
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Portfolio's net asset value. If events materially affecting the value of such
securities or currency exchange rates occur during such time periods, the
securities will be valued at their fair value as determined in good faith by or
under the direction of the board.
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 a trade date basis. Realized gains and losses from investment
transactions and foreign exchange transactions are calculated using the
identified cost method. 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. The 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.
85
<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 primarily use financial futures contracts for
hedging purposes or to manage the average duration of a portfolio. 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 board. 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.
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.
86
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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>
87
<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 from the investment advisory fee which Mitchell Hutchins receives, 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 Pacific Investment Management Company 0.25%
Income Investments
PACE Intermediate Fixed Income Pacific Income Advisors, Inc. 0.20%
Investments
PACE Strategic Fixed Income Pacific Investment Management Company 0.25%
Investments
PACE Municipal Fixed Income Deutsche Asset Management, Inc. 0.20%
Investments
PACE Global Fixed Income Investments Rogge Global Partners plc 0.35%
PACE Large Company Value Equity Brinson Partners, Inc. 0.30%
Investments
PACE Large Company Growth Equity Alliance Capital Management L.P. 0.30%
Investments
PACE Small/Medium Company Value Equity Brandywine Asset Management, Inc. and
Investments Ariel Capital Management, Inc. 0.30%
PACE Small/Medium Company Growth Delaware Management Company, Inc. 0.40%
Equity Investments
PACE International Equity Investments Martin Currie Inc. 0.40%
PACE International Emerging Markets Schroder Investment Management North
Equity Investments America Inc. 0.50%
</TABLE>
Mitchell Hutchins agreed to waive all or a portion of its investment advisory
and administration fee and reimburse certain operating expenses for the six
months ended January 31, 2000, which will lower the overall expenses of certain
Portfolios.
As of January 31, 2000 the Portfolios owed PaineWebber for investment advisory
and administration fees as follows:
<TABLE>
<CAPTION>
AMOUNTS
PORTFOLIO OWED
- ------------------------------------------------------------ ---------
<S> <C>
PACE Government Securities Fixed Income Investments......... $109,540
PACE Intermediate Fixed Income Investments.................. $ 69,826
PACE Strategic Fixed Income Investments..................... $124,801
PACE Municipal Fixed Income Investments..................... $ 26,462
PACE Global Fixed Income Investments........................ $ 51,899
PACE Large Company Value Equity Investments................. $237,655
PACE Large Company Growth Equity Investments................ $301,074
PACE Small/Medium Company Value Equity Investments.......... $127,799
PACE Small/Medium Company Growth Equity Investments......... $231,353
PACE International Equity Investments....................... $200,910
PACE International Emerging Markets Equity Investments...... $ 77,683
</TABLE>
88
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
PaineWebber waived a portion of its investment advisory and administration
fees in connection with the Portfolio's investment of cash collateral from
securities lending transactions in the Mitchell Hutchins Private Money Market
Fund LLC. For the six months ended January 31, 2000, PaineWebber had the
following expense reimbursements and waivers:
<TABLE>
<CAPTION>
WAIVERS
AND
EXPENSE
PORTFOLIO REIMBURSEMENTS
- ------------------------------------------------------------ --------------
<S> <C>
PACE Money Market Investments............................... $126,660
PACE Government Securities Fixed Income Investments......... $ 44,524
PACE Intermediate Fixed Income Investments.................. $ 7,187
PACE Strategic Fixed Income Investments..................... $ 46,046
PACE Municipal Fixed Income Investments..................... $ 18,082
PACE Global Fixed Income Investments........................ $107,058
PACE Large Company Value Equity Investments................. $ 9,640
PACE Large Company Growth Equity Investments................ $ 8,152
PACE Small/Medium Company Value Equity Investments.......... $ 18,493
PACE Small/Medium Company Growth Equity Investments......... $ 5,081
PACE International Equity Investments....................... $ 5,028
PACE International Emerging Markets Equity Investments...... $104,073
</TABLE>
During the six months ended January 31, 2000, 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, 2000 as
follows:
<TABLE>
<CAPTION>
PORTFOLIO COMPENSATION
- ------------------------------------------------------------ ------------
<S> <C>
PACE Government Securities Fixed Income Investments......... $ 109
PACE Intermediate Fixed Income Investments.................. $31,424
PACE Strategic Fixed Income Investments..................... $ 1,749
PACE Global Fixed Income Investments........................ $ 400
PACE Large Company Value Equity Investments................. $12,743
PACE Large Company Growth Equity Investments................ $12,140
PACE Small/Medium Company Value Equity Investments.......... $ 7,230
PACE Small/Medium Company Growth Equity Investments......... $16,108
PACE International Equity Investments....................... $17,588
PACE International Emerging Markets Equity Investments...... $ 4,815
</TABLE>
89
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
As of January 31, 2000 the Portfolios owed PaineWebber for security lending
fees as follows:
<TABLE>
<CAPTION>
AMOUNTS
PORTFOLIO OWED
- ------------------------------------------------------------ ---------
<S> <C>
PACE Government Securities Fixed Income Investments......... $ 2
PACE Intermediate Fixed Income Investments.................. $9,163
PACE Strategic Fixed Income Investments..................... $ 312
PACE Global Fixed Income Investments........................ $ 90
PACE Large Company Value Equity Investments................. $3,394
PACE Large Company Growth Equity Investments................ $3,984
PACE Small/Medium Company Value Equity Investments.......... $1,247
PACE Small/Medium Company Growth Equity Investments......... $7,256
PACE International Equity Investments....................... $2,323
PACE International Emerging Markets Equity Investments...... $ 942
</TABLE>
For the six months ended January 31, 2000 the Portfolios 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 Investments......... $ 288
PACE Intermediate Fixed Income Investments.................. $ 92,464
PACE Strategic Fixed Income Investments..................... $ 5,058
PACE Global Fixed Income Investments........................ $ 1,203
PACE Large Company Value Equity Investments................. $ 35,247
PACE Large Company Growth Equity Investments................ $ 33,766
PACE Small/Medium Company Value Equity Investments.......... $ 21,359
PACE Small/Medium Company Growth Equity Investments......... $ 46,291
PACE International Equity Investments....................... $ 51,669
PACE International Emerging Markets Equity Investments...... $ 13,811
</TABLE>
As of January 31, 2000 the Portfolios held cash as collateral for market
values of securities loaned as follows:
<TABLE>
<CAPTION>
COLLATERAL MARKET VALUE
FOR SECURITIES OF SECURITIES
PORTFOLIO LOANED LOANED
- ------------------------------------------------------------ -------------- -------------
<S> <C> <C>
PACE Intermediate Fixed Income Investments.................. $35,119,000 $33,428,127
PACE Large Company Value Equity Investments................. $47,861,501 $45,964,338
PACE Large Company Growth Equity Investments................ $63,957,700 $61,906,945
PACE Small/Medium Company Value Equity Investments.......... $ 6,443,600 $ 6,264,838
PACE Small/Medium Company Growth Equity Investments......... $54,222,505 $50,851,234
PACE International Equity Investments....................... $ 8,968,189 $ 8,405,136
PACE International Emerging Markets Equity Investments...... $ 6,465,800 $ 5,940,677
</TABLE>
90
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
As of January 31, 2000 the Funds invested the collateral in the following
money market funds:
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------- -----------
<C> <S> <C>
PACE INTERMEDIATE FIXED INCOME INVESTMENTS:
3,310,432 Liquid Assets Portfolio..................................... $ 3,310,432
20,608,983 Mitchell Hutchins Private Money Market Fund LLC............. 20,608,983
3,180,342 Prime Portfolio............................................. 3,180,342
8,019,243 Scudder Institutional Fund Incorporated..................... 8,019,243
-----------
Total investments of cash collateral for securities loaned
(cost--$35,119,000)....................................... $35,119,000
===========
PACE LARGE COMPANY VALUE EQUITY INVESTMENTS:
8,335,929 Liquid Assets Portfolio..................................... $ 8,335,929
29,068,139 Mitchell Hutchins Private Money Market Fund LLC............. 29,068,139
2,453,571 Prime Portfolio............................................. 2,453,571
8,003,862 Scudder Institutional Fund Incorporated..................... 8,003,862
-----------
Total investments of cash collateral for securities loaned
(cost--$47,861,501)....................................... $47,861,501
===========
PACE LARGE COMPANY GROWTH EQUITY INVESTMENTS:
21,047,498 Liquid Assets Portfolio..................................... $21,047,498
31,640,336 Mitchell Hutchins Private Money Market Fund LLC............. 31,640,336
11,269,866 Prime Portfolio............................................. 11,269,866
-----------
Total investments of cash collateral for securities loaned
(cost--$63,957,700)....................................... $63,957,700
===========
PACE SMALL/MEDIUM COMPANY VALUE EQUITY INVESTMENTS:
3,778,772 Liquid Assets Portfolio..................................... $ 3,778,772
2,400,836 Mitchell Hutchins Private Money Market Fund LLC............. 2,400,836
263,992 TempCash Portfolio.......................................... 263,992
-----------
Total investments of cash collateral for securities loaned
(cost--$6,443,600)........................................ $ 6,443,600
===========
PACE SMALL/MEDIUM COMPANY GROWTH EQUITY INVESTMENTS:
9,925,888 Liquid Assets Portfolio..................................... $ 9,925,888
17,697,954 Mitchell Hutchins Private Money Market Fund LLC............. 17,697,954
12,092,798 Prime Portfolio............................................. 12,092,798
14,505,865 Scudder Institutional Fund Inc.............................. 14,505,865
-----------
Total investments of cash collateral for securities loaned
(cost--$54,222,505)....................................... $54,222,505
===========
PACE INTERNATIONAL EQUITY INVESTMENTS:
194,507 Liquid Asset Portfolio...................................... $ 194,507
3,115,054 Mitchell Hutchins Private Money Market Fund LLC............. 3,115,054
234,232 Prime Portfolio............................................. 234,232
5,424,396 Scudder Institutional Fund Incorporated..................... 5,424,396
-----------
Total investments of cash collateral for securities loaned
(cost--$8,968,189)........................................ $ 8,968,189
===========
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS:
2,258,526 Liquid Assets Portfolio..................................... $ 2,258,526
3,790,064 Mitchell Hutchins Private Money Market Fund LLC............. 3,790,064
417,210 Prime Portfolio............................................. 417,210
-----------
Total investments of cash collateral for securities loaned
(cost--$6,465,800)........................................ $ 6,465,800
===========
</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,
91
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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, 2000, the Portfolios did not
borrow under the Facility.
WRITTEN OPTION ACTIVITY
Written option activity for the six months ended January 31, 2000 for PACE
Government Securities Fixed Income Investments and PACE Strategic Fixed Income
Investments was as follows:
<TABLE>
<CAPTION>
PACE GOVERNMENT
SECURITIES FIXED INCOME PACE STRATEGIC FIXED
INVESTMENTS INCOME INVESTMENTS
----------------------- ----------------------
AMOUNT OF AMOUNT OF
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
OPTIONS RECEIVED OPTIONS RECEIVED
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Options outstanding at July 31, 1999............... -- -- 344 $ 120,856
Options written.................................... 800 $ 231,641 1,737 738,438
Options terminated in closing purchase
transactions..................................... -- -- (842) (1,215,291)
Options expired prior to exercise.................. (450) (111,328) (662) 588,324
------- ----------- ------- -----------
Options outstanding at January 31, 2000............ 350 $ 120,313 577 $ 232,327
======= =========== ======= ===========
</TABLE>
INVESTMENTS IN SECURITIES
At January 31, 2000, 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.... $ 467,128 $ (5,012,643) $ (4,545,515)
PACE Intermediate Fixed Income Investments............. $ 8,567 $ (4,996,656) $ (4,988,089)
PACE Strategic Fixed Income Investments................ $ 681,071 $ (9,129,317) $ (8,448,246)
PACE Municipal Fixed Income Investments................ $ 59,904 $ (2,770,268) $ (2,710,364)
PACE Global Fixed Income Investments................... $ 246,133 $ (8,946,646) $ (8,700,513)
PACE Large Company Value Equity Investments............ $ 32,206,243 $(63,015,384) $(30,809,141)
PACE Large Company Growth Equity Investments........... $129,390,522 $(10,738,400) $118,652,122
PACE Small/Medium Company Value Equity Investments..... $ 9,636,546 $(35,216,526) $(25,579,980)
PACE Small/Medium Company Growth Equity Investments.... $128,467,806 $(13,413,820) $115,053,986
PACE International Equity Investments.................. $ 67,009,349 $(12,340,664) $ 54,668,685
PACE International Emerging Markets Equity
Investments.......................................... $ 24,445,944 $ (3,542,031) $ 20,903,913
</TABLE>
For U.S. federal income tax purposes, the cost of securities owned at
January 31, 2000 was substantially the same as the cost of securities for
financial statement purposes.
92
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
For the six months ended January 31, 2000, 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......... $725,011,161 $707,350,918
PACE Intermediate Fixed Income Investments.................. $ 94,408,531 $ 90,096,186
PACE Strategic Fixed Income Investments..................... $275,115,699 $242,274,735
PACE Municipal Fixed Income Investments..................... $ 587,213 $ 1,299,282
PACE Global Fixed Income Investments........................ $ 75,162,203 $ 66,355,507
PACE Large Company Value Equity Investments................. $156,976,431 $111,580,380
PACE Large Company Growth Equity Investments................ $141,395,708 $120,662,681
PACE Small/Medium Company Value Equity Investments.......... $135,954,458 $118,217,806
PACE Small/Medium Company Growth Equity Investments......... $110,266,253 $163,985,607
PACE International Equity Investments....................... $ 75,574,634 $ 81,047,144
PACE International Emerging Markets Equity Investments...... $ 39,240,860 $ 51,831,498
</TABLE>
FEDERAL TAX STATUS
Each of the Portfolios intends to distribute substantially all of its taxable
income and to comply with the 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, 1999, PACE Municipal Fixed Income Investments and PACE
International Emerging Markets Equity Investments had net capital loss
carryforwards of $155,099 and $7,981,845, 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, 2007. 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, 1998. Such losses are treated for tax purposes as arising on
August 1, 1999:
<TABLE>
<CAPTION>
FOREIGN
CAPITAL CURRENCY
PORTFOLIO LOSSES LOSSES
- ------------------------------------------------------------ ------- --------
<S> <C> <C>
PACE Government Securities Fixed Income Investments......... $3,282,530 --
PACE Intermediate Fixed Income Investments.................. $ 535,624 --
PACE Strategic Fixed Income Investments..................... $6,863,487 $ 51,527
PACE Municipal Fixed Income Investments..................... $ 85,927 --
PACE Global Fixed Income Investments........................ -- $1,511,058
PACE International Emerging Markets Equity Investments...... $1,827,552 --
</TABLE>
MONEY MARKET FUND BOND
Effective September 30, 1999, PACE Money Market Investments obtained an
insurance bond that provides limited coverage for certain loss events involving
certain money market instruments held by the Portfolio. These loss events
include non-payment of principal or interest or a bankruptcy or insolvency of
the issuer or credit enhancement provider (if any). The insurance bond provides
for coverage up to $200 million for a number of funds with a deductible of 10
basis points (0.10%) of the total assets of the Portfolio for First Tier
Securities and 50 basis points (0.50%) of the total assets of the Portfolio for
Second Tier Securities, in each case determined as of the close of business on
the first business day prior to the loss event. In the event of a loss covered
under the bond, the Portfolio would expect to retain
93
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
the security in its portfolio, rather than having to sell it at its current
market value, until the date of payment of the loss, which is generally no later
than the maturity of the security. While the policy is intended to provide some
protection against credit risk and to help the Portfolio maintain a constant
price per share of $1.00, there is no guarantee that the insurance will do so.
For the period September 30, 1999 to January 31, 2000, PACE Money Market
Investments did not use this insurance bond.
CAPITAL CONTRIBUTIONS FROM SUB-ADVISER
On January 31, 2000, PACE International Equity Investments recorded a capital
contribution from Martin Currie Inc., the Portfolio's Sub-Adviser, in the amount
of $694,257. This amount was paid by the Sub-Adviser in connection with
unrealized appreciation on investments related to a corporate action.
SHARES OF BENEFICIAL INTEREST
For the six months ended January 31, 2000, transactions in shares of
beneficial interest for each of the Portfolios were as follows:
<TABLE>
<CAPTION>
NET INCREASE
(DECREASE)
SHARES DIVIDENDS IN SHARES
PORTFOLIO SHARES SOLD REPURCHASED REINVESTED OUTSTANDING
- ------------------------------------------------------------ ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
PACE Money Market Investments............................... 51,871,360 (41,398,691) 1,405,167 11,877,836
PACE Government Securities Fixed Income Investments......... 3,304,605 (2,804,468) 476,173 976,310
PACE Intermediate Fixed Income Investments.................. 2,230,712 (2,216,918) 340,369 354,163
PACE Strategic Fixed Income Investments..................... 3,219,036 (2,606,898) 534,548 1,146,686
PACE Municipal Fixed Income Investments..................... 738,989 (763,894) 102,500 77,595
PACE Global Fixed Income Investments........................ 2,172,645 (1,402,776) 245,587 1,015,456
PACE Large Company Value Equity Investments................. 4,641,984 (2,731,019) 1,856,529 3,767,494
PACE Large Company Growth Equity Investments................ 2,804,435 (2,369,955) 395,237 829,717
PACE Small/Medium Company Value Equity Investments.......... 3,466,344 (1,895,304) 743,098 2,314,138
PACE Small/Medium Company Growth Equity Investments......... 1,483,546 (3,918,202) 1,273,777 (1,160,879)
PACE International Equity Investments....................... 1,994,084 (2,059,341) 722,799 657,542
PACE International Emerging Markets Equity Investments...... 1,031,163 (1,988,303) 51,436 (905,704)
</TABLE>
For the year ended July 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............................... 73,861,364 (53,636,534) 1,455,251 21,680,081
PACE Government Securities Fixed Income Investments......... 6,093,627 (3,970,664) 852,684 2,975,647
PACE Intermediate Fixed Income Investments.................. 5,801,746 (2,825,616) 562,032 3,538,162
PACE Strategic Fixed Income Investments..................... 10,660,904 (3,241,234) 1,076,492 8,496,162
PACE Municipal Fixed Income Investments..................... 1,607,393 (1,306,420) 186,929 487,902
PACE Global Fixed Income Investments........................ 2,847,192 (2,315,240) 773,007 1,304,959
PACE Large Company Value Equity Investments................. 7,405,793 (3,982,286) 1,193,997 4,617,504
PACE Large Company Growth Equity Investments................ 5,989,806 (4,103,382) 813,775 2,700,199
PACE Small/Medium Company Value Equity Investments.......... 5,296,830 (4,082,992) 1,317,668 2,531,506
PACE Small/Medium Company Growth Equity Investments......... 4,344,031 (4,376,870) 315,880 283,041
PACE International Equity Investments....................... 5,000,157 (2,843,542) 353,072 2,509,687
PACE International Emerging Markets Equity Investments...... 3,655,135 (2,437,099) 51,623 1,269,659
</TABLE>
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
MONEY MARKET INVESTMENTS
------------------------------------------------------------
FOR THE FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 2000 ------------------------- ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- ------- ------- ------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Net investment income............................. 0.03 0.05 0.05 0.05 0.05
------- ------- ------- ------- -------
Dividends from net investment income.............. (0.03) (0.05) (0.05) (0.05) (0.05)
------- ------- ------- ------- -------
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total investment return (1)....................... 2.55% 4.85% 5.32% 5.13% 4.75%
======= ======= ======= ======= =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $59,052 $47,174 $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% 0.50%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.95%* 1.07% 1.20% 1.89% 2.40%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 5.10%* 4.70% 5.20% 5.04% 4.93%*
Net investment income to average net assets,
before fee waivers and expense
reimbursements.................................. 4.65%* 4.13% 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 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>
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, 2000 ------------------------------------ ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- ---------- -------- ---------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 12.10 $ 12.59 $ 12.61 $ 12.07 $ 12.00
-------- -------- -------- -------- -------
Net investment income............................. 0.34 0.68 0.72 0.64 0.49
Net realized and unrealized gains (losses) from
investments (1) options and futures............. (0.20) (0.43) 0.18 0.58 0.03
-------- -------- -------- -------- -------
Net increase from investment operations........... 0.14 0.25 0.90 1.22 0.52
-------- -------- -------- -------- -------
Dividends from net investment income.............. (0.36) (0.71) (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................. (0.36) (0.74) (0.92) (0.68) (0.45)
-------- -------- -------- -------- -------
Net asset value, end of period.................... $ 11.88 $ 12.10 $ 12.59 $ 12.61 $ 12.07
======== ======== ======== ======== =======
Total investment return (1)....................... 1.14% 2.02% 7.39% 10.42% 4.35%
======== ======== ======== ======== =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $199,908 $191,719 $162,119 $101,606 $58,752
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.85%* 0.87%++ 0.85% 1.57%++ 0.85%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.90%* 0.93%++ 0.95% 1.70%++ 1.15%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 5.59%* 5.49%++ 5.90% 5.44%++ 5.09%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 5.55%* 5.43%++ 5.80% 5.31%++ 4.79%*
Portfolio turnover................................ 269% 418% 353% 712% 978%
</TABLE>
- -----------------
+ For the period August 24, 1995 (commencement of operations) through
July 31, 1996.
* Annualized.
++ Includes 0.01% and 0.72% of interest expense related to the reverse
repurchase agreements during the years ended July 31, 1999 and 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
96
<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 FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 2000 -------------------------- ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- -------- ------- ------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 11.98 $ 12.35 $ 12.23 $ 11.95 $ 12.00
-------- -------- ------- ------- -------
Net investment income............................. 0.34 0.63 0.67 0.66 0.53
Net realized and unrealized gains (losses) from
investments and foreign currency................. (0.30) (0.28) 0.09 0.28 (0.09)
-------- -------- ------- ------- -------
Net increase from investment operations........... 0.04 0.35 0.76 0.94 0.44
-------- -------- ------- ------- -------
Dividends from net investment income.............. (0.34) (0.64) (0.64) (0.66) (0.48)
Distributions from net realized gains from
investments...................................... 0.00++ (0.08) -- -- (0.01)
-------- -------- ------- ------- -------
Total dividends and distributions................. (0.34) (0.72) (0.64) (0.66) (0.49)
-------- -------- ------- ------- -------
Net asset value, end of period.................... $ 11.68 $ 11.98 $ 12.35 $ 12.23 $ 11.95
======== ======== ======= ======= =======
Total investment return (1)....................... 0.39% 2.81% 6.41% 8.14% 3.59%
======== ======== ======= ======= =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $139,750 $139,043 $99,690 $66,751 $41,273
Expenses to average net assets, net of fee waivers
and expense reimbursements....................... 0.76%* 0.80% 0.84% 0.85% 0.85%*
Expenses to average net assets, before fee waivers
and expense reimbursements....................... 0.77%* 0.80% 0.84% 0.99% 1.23%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements........ 5.78%* 5.26% 5.60% 5.70% 5.56%*
Net investment income to average net assets,
before fee waivers and expense reimbursements.... 5.77%* 5.26% 5.60% 5.56% 5.18%*
Portfolio turnover................................ 65% 89% 111% 67% 36%
</TABLE>
- -----------------
+ For the period August 24, 1995 (commencement of operations) through
July 31, 1996.
++ The Portfolio made a distribution of less than $0.005 during the period.
* 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
97
<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, 2000 -------------------------------- ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- ---------- -------- ------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 12.33 $ 13.32 $ 13.04 $ 12.44 $ 12.00
-------- -------- -------- ------- -------
Net investment income............................. 0.36 0.69 0.69 0.67 0.59
Net realized and unrealized gains (losses) from
investments, futures, options and foreign
currency........................................ (0.35) (0.64) 0.40 0.70 0.38
-------- -------- -------- ------- -------
Net increase (decrease) from investment
operations...................................... 0.01 0.05 1.09 1.37 0.97
-------- -------- -------- ------- -------
Dividends from net investment income.............. (0.36) (0.70) (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................. (0.36) (1.04) (0.81) (0.77) (0.53)
-------- -------- -------- ------- -------
Net asset value, end of period.................... $ 11.98 $ 12.33 $ 13.32 $ 13.04 $ 12.44
======== ======== ======== ======= =======
Total investment return (1)....................... 0.05% 0.21% 8.66% 11.35% 8.15%
======== ======== ======== ======= =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $229,514 $222,214 $126,880 $75,174 $42,550
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.85%* 0.88%++ 0.85% 0.85% 0.85%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.89%* 0.92%++ 0.94% 1.10% 1.40%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 5.88%* 5.51%++ 5.49% 5.69% 5.85%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 5.84%* 5.47%++ 5.40% 5.44% 5.30%*
Portfolio turnover................................ 119% 202% 234% 357% 166%
</TABLE>
- -----------------
+ For the period August 24, 1995 (commencement of operations) through
July 31, 1996.
++ Includes 0.03% of interest expense related to the reverse repurchase
agreements for the year ended July 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
98
<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, 2000 ------------------------- ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- ------- ------- ------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 12.44 $ 12.70 $ 12.67 $ 12.32 $ 12.00
------- ------- ------- ------- -------
Net investment income............................. 0.28 0.56 0.58 0.61 0.49
Net realized and unrealized gains (losses) from
investments..................................... (0.57) (0.26) 0.02 0.38 0.27
------- ------- ------- ------- -------
Net increase (decrease) from investment
operations...................................... (0.29) 0.30 0.60 0.99 0.76
------- ------- ------- ------- -------
Dividends from net investment income.............. (0.28) (0.56) (0.57) (0.61) (0.43)
Distributions from net realized gains from
investments..................................... -- -- -- (0.03) (0.01)
------- ------- ------- ------- -------
Total dividends and distributions................. (0.28) (0.56) (0.57) (0.64) (0.44)
------- ------- ------- ------- -------
Net asset value, end of period.................... $ 11.87 $ 12.44 $ 12.70 $ 12.67 $ 12.32
======= ======= ======= ======= =======
Total investment return (1)....................... (2.36)% 2.34% 4.87% 8.30% 6.38%
======= ======= ======= ======= =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $54,995 $56,659 $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% 0.85%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.91%* 0.89% 0.93% 1.40% 1.74%*
Net investment income to average net assets, net
of
fee waivers and expense reimbursements.......... 4.67%* 4.42% 4.67% 5.08% 4.95%*
Net investment income to average net assets,
before
fee waivers and expense reimbursements.......... 4.61%* 4.38% 4.59% 4.53% 4.07%*
Portfolio turnover................................ 1% 11% 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
99
<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, 2000 -------------------------- ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- -------- ------- ------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 11.82 $ 12.25 $ 12.17 $ 12.33 $ 12.00
-------- -------- ------- ------- -------
Net investment income............................. 0.29 0.65 0.62 0.64 0.53
Net realized and unrealized gains (losses) from
investments and foreign currency................ (0.87) 0.20 (0.03) (0.21) 0.27
-------- -------- ------- ------- -------
Net increase (decrease) from investment
operations...................................... (0.58) 0.85 0.59 0.43 0.80
-------- -------- ------- ------- -------
Dividends from net investment income and foreign
currency........................................ (0.24) (0.81) (0.40) (0.51) (0.46)
Distributions from net realized gains from
investments..................................... (0.09) (0.47) (0.11) (0.08) (0.01)
-------- -------- ------- ------- -------
Total dividends and distributions................. (0.33) (1.28) (0.51) (0.59) (0.47)
-------- -------- ------- ------- -------
Net asset value, end of period.................... $ 10.91 $ 11.82 $ 12.25 $ 12.17 $ 12.33
======== ======== ======= ======= =======
Total investment return (1)....................... (5.05)% 6.49% 4.88% 3.54% 6.68%
======== ======== ======= ======= =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $104,428 $101,143 $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% 0.95%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 1.16%* 1.17% 1.23% 1.29% 1.61%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 4.62%* 4.57% 5.10% 5.36% 5.24%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 4.41%* 4.35% 4.82% 5.02% 4.58%*
Portfolio turnover................................ 69% 226% 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
100
<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, 2000 ---------------------------- ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- -------- -------- -------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 21.14 $ 20.27 $ 20.03 $ 14.07 $ 12.00
-------- -------- -------- -------- -------
Net investment income............................. 0.06 0.13 0.14 0.11 0.12
Net realized and unrealized gains (losses) from
investments and futures......................... (3.20) 2.34 1.63 6.61 2.02
-------- -------- -------- -------- -------
Net increase (decrease) from investment
operations...................................... (3.14) 2.47 1.77 6.72 2.14
-------- -------- -------- -------- -------
Dividends from net investment income.............. (0.14) (0.14) (0.14) (0.11) (0.05)
Distributions from net realized gains from
investments..................................... (1.63) (1.46) (1.39) (0.65) (0.02)
-------- -------- -------- -------- -------
Total dividends and distributions................. (1.77) (1.60) (1.53) (0.76) (0.07)
-------- -------- -------- -------- -------
Net asset value, end of period.................... $ 16.23 $ 21.14 $ 20.27 $ 20.03 $ 14.07
======== ======== ======== ======== =======
Total investment return (1)....................... (15.36)% 12.82% 9.89% 49.13% 17.90%
======== ======== ======== ======== =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $349,483 $375,465 $266,354 $180,807 $80,897
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.98%* 0.96% 0.98% 1.00% 1.00%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.98%* 0.96% 0.98% 1.06% 1.40%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 0.67%* 0.71% 0.82% 0.81% 1.22%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 0.67%* 0.71% 0.82% 0.75% 0.82%*
Portfolio turnover................................ 32% 40% 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
101
<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 FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 2000 -------------------------------- ENDED
(UNAUDITED) 1999 1998# 1997 JULY 31, 1996+
---------------- --------- --------- -------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 25.88 $ 22.99 $ 19.28 $ 13.27 $ 12.00
-------- -------- -------- -------- -------
Net investment income (loss)...................... (0.05) (0.05) (0.03) 0.03 0.03
Net realized and unrealized gains from
investments..................................... 2.80 4.44 4.79 6.01 1.26
-------- -------- -------- -------- -------
Net increase from investment operations........... 2.75 4.39 4.76 6.04 1.29
-------- -------- -------- -------- -------
Dividends from net investment income.............. -- -- (0.01) (0.03) (0.02)
Distributions from net realized gains from
investments..................................... (0.75) (1.50) (1.04) -- --
-------- -------- -------- -------- -------
Total dividends and distributions................. (0.75) (1.50) (1.05) (0.03) (0.02)
-------- -------- -------- -------- -------
Net asset value, end of period.................... $ 27.88 $ 25.88 $ 22.99 $ 19.28 $ 13.27
======== ======== ======== ======== =======
Total investment return (1)....................... 10.54% 19.66% 26.40% 45.61% 10.76%
======== ======== ======== ======== =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $432,412 $379,988 $275,461 $160,334 $69,248
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.94%* 0.97% 1.00% 1.00% 1.00%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.94%* 0.97% 1.02% 1.05% 1.33%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements.................................. (0.38)%* (0.24)% (0.14)% 0.22% 0.33%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements.................................. (0.38)%* (0.24)% (0.16)% 0.17% (0.01)%*
Portfolio turnover................................ 29% 43% 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
102
<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 MONTHS ENDED FOR THE YEARS ENDED
JANUARY 31, JULY 31, FOR THE PERIOD
2000# ---------------------------- ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- -------- -------- -------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 15.75 $ 17.39 $ 17.52 $ 12.29 $ 12.00
-------- -------- -------- -------- -------
Net investment income............................. 0.04 0.06 0.10 0.12 0.10
Net realized and unrealized gains (losses) from
investments..................................... (2.32) (0.06) 1.14 5.55 0.23
-------- -------- -------- -------- -------
Net increase (decrease) from investment
operations...................................... (2.28) 0.00 1.24 5.67 0.33
-------- -------- -------- -------- -------
Dividends from net investment income.............. (0.06) (0.09) (0.13) (0.10) (0.04)
Distributions from net realized gains from
investments..................................... (0.67) (1.55) (1.24) (0.34) --
-------- -------- -------- -------- -------
Total dividends and distributions................. (0.73) (1.64) (1.37) (0.44) (0.04)
-------- -------- -------- -------- -------
Net asset value, end of period.................... $ 12.74 $ 15.75 $ 17.39 $ 17.52 $ 12.29
======== ======== ======== ======== =======
Total investment return (1)....................... (14.55)% 1.16% 6.97% 46.99% 2.76%
======== ======== ======== ======== =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $196,163 $206,131 $183,558 $135,047 $63,894
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.99%* 1.00% 0.99% 1.00% 1.00%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 1.01%* 1.01% 1.00% 1.12% 1.51%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 0.62%* 0.42% 0.61% 1.00% 1.07%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 0.60%* 0.41% 0.60% 0.88% 0.56%*
Portfolio turnover................................ 64% 57% 42% 39% 30%
</TABLE>
- -----------------
+ For the period August 24, 1995 (commencement of operations) through
July 31, 1996.
* Annualized.
# As of October 4, 1999, Ariel Capital Management Inc., sub-advises a
portion of the Portfolio. Brandywine Asset Management, Inc. continues to
sub-advise a portion of the Portfolio.
(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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
103
<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 FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 2000 --------------------------------- ENDED
(UNAUDITED) 1999 1998 1997# JULY 31, 1996+
---------------- --------- --------- --------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 20.62 $ 15.80 $ 14.44 $ 11.20 $ 12.00
-------- -------- -------- -------- -------
Net investment income (loss)...................... (0.08) (0.08) (0.03) (0.02) 0.00**
Net realized and unrealized gains (losses) from
investments..................................... 8.09 5.28 2.03 3.26 (0.78)
-------- -------- -------- -------- -------
Net increase (decrease) from investment
operations...................................... 8.01 5.20 2.00 3.24 (0.78)
-------- -------- -------- -------- -------
Dividends from net investment income.............. -- -- -- -- (0.02)
Distributions from net realized gains from
investments..................................... (2.74) (0.38) (0.64) -- --
-------- -------- -------- -------- -------
Total dividends and distributions................. (2.74) (0.38) (0.64) 0.00 (0.02)
-------- -------- -------- -------- -------
Net asset value, end of period.................... $ 25.89 $ 20.62 $ 15.80 $ 14.44 $ 11.20
======== ======== ======== ======== =======
Total investment return (1)....................... 38.82% 33.62% 14.44% 28.93% (6.55)%
======== ======== ======== ======== =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $303,083 $265,405 $198,855 $125,609 $63,364
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 0.96%* 1.00% 1.00% 1.00% 1.00%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 0.96%* 1.01% 1.03% 1.08% 1.27%*
Net investment loss to average net assets, net of
fee waivers and expense reimbursements.......... (0.65)%* (0.48)% (0.20)% (0.21)% (0.14)%*
Net investment loss to average net assets, before
fee waivers and expense reimbursements.......... (0.65)%* (0.49)% (0.23)% (0.29)% (0.41)%*
Portfolio turnover................................ 40% 102% 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
104
<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 FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 2000 ---------------------------- ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- -------- -------- -------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 17.18 $ 16.54 $ 15.66 $ 12.79 $ 12.00
-------- -------- -------- -------- -------
Net investment income............................. 0.02 0.07 0.16 0.10 0.12
Net realized and unrealized gains from investments
and foreign currency............................ 3.23 1.10 1.20 2.97 0.73
-------- -------- -------- -------- -------
Net increase from investment operations........... 3.25 1.17 1.36 3.07 0.85
-------- -------- -------- -------- -------
Dividends from net investment income.............. (0.12) (0.19) (0.16) (0.13) (0.06)
Distributions from net realized gains from
investments..................................... (1.02) (0.34) (0.32) (0.07) --
-------- -------- -------- -------- -------
Total dividends and distributions................. (1.14) (0.53) (0.48) (0.20) (0.06)
-------- -------- -------- -------- -------
Capital contribution from Sub-Adviser............. 0.05 -- -- -- --
-------- -------- -------- -------- -------
Net asset value, end of period.................... $ 19.34 $ 17.18 $ 16.54 $ 15.66 $ 12.79
======== ======== ======== ======== =======
Total investment return (1)....................... 18.72% 7.33% 9.27% 24.30% 7.08%
======== ======== ======== ======== =======
Ratios/Supplemental Data:
Net assets, end of period (000's)................. $253,625 $214,017 $164,477 $102,979 $45,331
Expenses to average net assets, net of fee waivers
and expense reimbursements...................... 1.19%* 1.22% 1.21% 1.35% 1.50%*
Expenses to average net assets, before fee waivers
and expense reimbursements...................... 1.19%* 1.22% 1.21% 1.35% 1.81%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements....... 0.27%* 0.53% 1.14% 0.95% 1.35%*
Net investment income to average net assets,
before fee waivers and expense reimbursements... 0.27%* 0.53% 1.14% 0.95% 1.04%*
Portfolio turnover................................ 33% 89% 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
105
<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 FOR THE YEARS ENDED
SIX MONTHS ENDED JULY 31, FOR THE PERIOD
JANUARY 31, 2000 ---------------------------------- ENDED
(UNAUDITED) 1999 1998 1997 JULY 31, 1996+
---------------- ---------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...................... $ 12.05 $ 10.41 $ 15.60 $ 12.49 $ 12.00
-------- -------- -------- -------- ----------
Net investment income (loss).............................. (0.01) 0.09 0.09 0.06 0.07
Net realized and unrealized gains (losses) from
investments and foreign currency........................ 2.36 1.62 (5.23) 3.09 0.44
-------- -------- -------- -------- ----------
Net increase (decrease) from investment operations........ 2.35 1.71 (5.14) 3.15 0.51
-------- -------- -------- -------- ----------
Dividends from net investment income...................... (0.10) (0.07) (0.05) (0.04) (0.02)
-------- -------- -------- -------- ----------
Net asset value, end of period............................ $ 14.30 $ 12.05 $ 10.41 $ 15.60 $ 12.49
======== ======== ======== ======== ==========
Total investment return (1)............................... 19.55% 16.66% (32.99)% 25.31% 4.23%
======== ======== ======== ======== ==========
Ratios/Supplemental Data:
Net assets, end of period (000's)......................... $ 92,011 $ 88,497 $ 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% 1.50%*
Expenses to average net assets, before fee waivers and
expense reimbursements.................................. 1.73%* 1.79% 1.79% 2.09% 2.35%*
Net investment income (loss) to average net assets, net of
fee waivers and expense reimbursements.................. (0.26)%* 1.05% 0.98% 0.63% 0.94%*
Net investment income (loss) to average net assets, before
fee waivers and expense reimbursements.................. (0.49)%* 0.76% 0.69% 0.04% 0.08%*
Portfolio turnover........................................ 45% 66% 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 any applicable sales charges or program fees; results would be
lower if they were included. Total investment return for periods of less
than one year has not been annualized.
106
<PAGE>
MANAGED ACCOUNTS SERVICES
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