-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QA1OAQOaOcumsnwq4cKjY1n+4s2TySj/jcl904wtUjxP7Qjeswk36RLCqWlESTHC sd4CczV+loJApqypIp6kJQ== 0000950130-96-001529.txt : 19960508 0000950130-96-001529.hdr.sgml : 19960508 ACCESSION NUMBER: 0000950130-96-001529 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19960506 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PAINEWEBBER AMERICA FUND /NY/ CENTRAL INDEX KEY: 0000703887 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 133175781 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-78626 FILM NUMBER: 96556916 BUSINESS ADDRESS: STREET 1: 1285 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127132421 MAIL ADDRESS: STREET 2: 1285 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: PAINE WEBBER GOVERNMENT FUND INC DATE OF NAME CHANGE: 19890402 497 1 GROWTH AND INCOME ANNUAL REPORT GROWTH & INCOME FUND PAINEWEBBER PERFORMANCE RESULTS (UNAUDITED)
NET ASSET VALUE TOTAL RETURN/1/ -------------------------- ----------------------------- 12 MONTHS 6 MONTHS 02/29/96 08/31/95 02/28/95 ENDED 02/29/96 ENDED 02/29/96 - ------------------------------------------------------------------------- Class A Shares $23.77 $22.52 $19.15 34.26% 14.16% - ------------------------------------------------------------------------- Class B Shares 23.70 22.37 19.10 33.19 13.72 - ------------------------------------------------------------------------- Class C Shares# 23.77 22.43 19.15 33.15 13.74 - -------------------------------------------------------------------------
Performance Summary Class A Shares
NET ASSET VALUE ---------------- CAPITAL GAINS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/ - ---------------------------------------------------------------------------- 12/20/83 - 12/31/84 $12.65 $13.21 -- $1.0800 13.72% - ---------------------------------------------------------------------------- 1985 13.21 14.97 $0.1950 0.8850 22.36 - ---------------------------------------------------------------------------- 1986 14.97 15.04 1.1380 0.6830 12.68 - ---------------------------------------------------------------------------- 1987 15.04 12.05 2.3027 0.7366 (3.16) - ---------------------------------------------------------------------------- 1988 12.05 13.67 -- 0.5120 17.83 - ---------------------------------------------------------------------------- 1989 13.67 16.32 0.1675 0.5178 24.59 - ---------------------------------------------------------------------------- 1990 16.32 15.85 -- 0.3030 (1.01) - ---------------------------------------------------------------------------- 1991 15.85 21.17 -- 0.2526 35.34 - ---------------------------------------------------------------------------- 1992 21.17 21.74 -- 0.2432 3.90 - ---------------------------------------------------------------------------- 1993 21.74 20.86 0.0310 0.2818 (2.59) - ---------------------------------------------------------------------------- 1994 20.86 18.18 1.2111 0.2417 (5.87) - ---------------------------------------------------------------------------- 1995 18.18 22.39 1.5085 0.2475 33.21 - ---------------------------------------------------------------------------- 01/01/96 - 02/29/96 22.39 23.77 -- -- 6.16 - ---------------------------------------------------------------------------- Totals: $6.5538 $5.9842 - ---------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 02/29/96: 302.31% - ---------------------------------------------------------------------------- Performance Summary Class B Shares NET ASSET VALUE ---------------- CAPITAL GAINS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/ - ---------------------------------------------------------------------------- 07/01/91 - 12/31/91 $18.04 $21.14 -- $0.1074 17.85% - ---------------------------------------------------------------------------- 1992 21.14 21.69 -- 0.0992 3.09 - ---------------------------------------------------------------------------- 1993 21.69 20.82 $0.0310 0.1193 (3.31) - ---------------------------------------------------------------------------- 1994 20.82 18.15 1.2111 0.0768 (6.62) - ---------------------------------------------------------------------------- 1995 18.15 22.35 1.5085 0.0715 32.18 - ---------------------------------------------------------------------------- 01/01/96 - 02/29/96 22.35 23.70 -- -- 6.04 - ---------------------------------------------------------------------------- Totals: $2.7506 $0.4742 - ---------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 02/29/96: 53.75% - ---------------------------------------------------------------------------- Performance Summary Class C Shares # NET ASSET VALUE ---------------- CAPITAL GAINS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/ - ---------------------------------------------------------------------------- 07/02/92 - 12/31/92 $19.96 $21.75 -- $0.1160 9.58% - ---------------------------------------------------------------------------- 1993 21.75 20.87 $0.0310 0.1308 (3.30) - ---------------------------------------------------------------------------- 1994 20.87 18.20 1.2111 0.0756 (6.61) - ---------------------------------------------------------------------------- 1995 18.20 22.42 1.5085 0.0728 32.21 - ---------------------------------------------------------------------------- 01/01/96 - 02/29/96 22.42 23.77 -- -- 6.02 - ---------------------------------------------------------------------------- Totals: $2.7506 $0.3952 - ---------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 02/29/96: 38.71% - ----------------------------------------------------------------------------
# Formerly Class D shares. /1/ Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the payable dates, and do not include sales charges; results would be lower for each class if sales charges were included. 1 GROWTH & INCOME FUND PAINEWEBBER PERFORMANCE RESULTS (UNAUDITED) (CONCLUDED) Average Annual Return
% RETURN AFTER DEDUCTING % RETURN WITHOUT SALES CHARGE MAXIMUM SALES CHARGE -------------------------------------------------------- CLASS CLASS -------------------------------------------------------- A* B** C*** A* B** C*** - ----------------------------------------------------------------------------- Twelve Months Ended 03/31/96 30.77% 29.75% 29.72% 24.89% 24.75% 28.72% - ----------------------------------------------------------------------------- Five Years Ended 03/31/96 9.52 N/A N/A 8.51 N/A N/A - ----------------------------------------------------------------------------- Ten Years Ended 03/31/96 9.93 N/A N/A 9.43 N/A N/A - ----------------------------------------------------------------------------- Commencement of Operations Through 03/31/96+ 12.04 9.56 9.24 11.62 9.26 9.24 - -----------------------------------------------------------------------------
* Maximum sales charge for Class A shares is 4.5% of the public offering price. Class A shares bear ongoing 12b-1 service fees. **Maximum contingent deferred sales charge for Class B shares is 5% and is reduced to 0% after 6 years. Class B shares bear ongoing 12b-1 distribution and service fees. *** Maximum contingent deferred sales charge for Class C (formerly Class D shares) is 1% and is reduced to 0% after 1 year. Class C shares bear ongoing 12b-1 distribution and service fees. + Commencement of operations dates are December 20, 1983, July 1, 1991 and July 2, 1992 for Class A, Class B and Class C, respectively. The data above represents past performance of the Fund's shares, which is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Note: The Fund offers Class Y (formerly Class C) shares to the INSIGHT Investment Advisory Program and to the trustees of the PaineWebber Savings Investment Plan. For the six months ended February 29, 1996 and since inception, February 12, 1992 through February 29, 1996, Class Y shares had a total return of 14.35% and 37.71%, respectively. For the twelve months ended March 31, 1996 and for the period since inception through March 31, 1996, Class Y shares have an average annual return of 31.10% and 8.18%, respectively. Class Y shares do not have initial or contingent deferred sales charges or ongoing distribution and service fees. 2 GROWTH FUND PAINEWEBBER PERFORMANCE RESULTS (UNAUDITED)
NET ASSET VALUE TOTAL RETURN/1/ -------------------------- ----------------------------- 12 MONTHS 6 MONTHS 02/29/96 08/31/95 02/28/95 ENDED 02/29/96 ENDED 02/29/96 - ------------------------------------------------------------------------- Class A Shares 23.65 22.27 19.21 33.24% 14.93% - ------------------------------------------------------------------------- Class B Shares 22.70 21.53 18.65 32.13 14.45 - ------------------------------------------------------------------------- Class C Shares# 22.88 21.68 18.78 32.18 14.50 - -------------------------------------------------------------------------
Performance Summary Class A Shares
NET ASSET VALUE ---------------- CAPITAL GAINS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/ - ---------------------------------------------------------------------------- 03/18/85 - 12/31/85 $ 9.15 $10.55 -- $0.1275 16.87% - ---------------------------------------------------------------------------- 1986 10.55 10.86 $0.4064 0.1042 7.64 - ---------------------------------------------------------------------------- 1987 10.86 9.81 1.4051 0.0847 4.34 - ---------------------------------------------------------------------------- 1988 9.81 11.87 -- 0.1011 22.05 - ---------------------------------------------------------------------------- 1989 11.87 14.79 1.1520 -- 34.27 - ---------------------------------------------------------------------------- 1990 14.79 12.98 0.4625 0.1625 (7.72) - ---------------------------------------------------------------------------- 1991 12.98 18.53 0.6003 0.0072 47.61 - ---------------------------------------------------------------------------- 1992 18.53 18.66 0.6235 -- 4.15 - ---------------------------------------------------------------------------- 1993 18.66 21.14 1.0734 -- 19.17 - ---------------------------------------------------------------------------- 1994 21.14 18.81 0.0258 -- (10.90) - ---------------------------------------------------------------------------- 1995 18.81 23.12 1.8440 -- 33.02 - ---------------------------------------------------------------------------- 01/01/96 - 02/29/96 23.12 23.65 -- -- 2.29 - ---------------------------------------------------------------------------- Totals: $7.593 $0.5872 - ---------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 02/29/96: 340.92% - ----------------------------------------------------------------------------
Performance Summary Class B Shares
NET ASSET VALUE ---------------- CAPITAL GAINS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/ - ---------------------------------------------------------------------------- 07/01/91 - 12/31/91 $15.63 $18.47 $0.6003 $0.0037 22.18% - ---------------------------------------------------------------------------- 1992 18.47 18.44 0.6235 -- 3.30 - ---------------------------------------------------------------------------- 1993 18.44 20.71 1.0734 -- 18.26 - ---------------------------------------------------------------------------- 1994 20.71 18.28 0.0258 -- (11.61) - ---------------------------------------------------------------------------- 1995 18.28 22.22 1.8440 -- 31.95 - ---------------------------------------------------------------------------- 01/01/96 - 02/29/96 22.22 22.70 -- -- 2.16 - ---------------------------------------------------------------------------- Totals: $4.167 $0.0037 - ---------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 02/29/96: 77.84% - ---------------------------------------------------------------------------- Performance Summary Class C Shares # NET ASSET VALUE ---------------- CAPITAL GAINS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/ - ---------------------------------------------------------------------------- 07/02/92 - 12/31/92 $17.04 $18.57 $0.6235 -- 12.73% - ---------------------------------------------------------------------------- 1993 18.57 20.85 1.0734 -- 18.19 - ---------------------------------------------------------------------------- 1994 20.85 18.41 0.0258 -- (11.58) - ---------------------------------------------------------------------------- 1995 18.41 22.40 1.8440 -- 32.00 - ---------------------------------------------------------------------------- 01/01/96 - 02/29/96 22.40 22.88 -- -- 2.14 - ---------------------------------------------------------------------------- Totals: $3.5667 -- - ---------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 02/29/96: 58.84% - ----------------------------------------------------------------------------
# Formerly Class D shares. /1/ Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the payable dates, and do not include sales charges; results would be lower for each class if sales charges were included. 3 GROWTH FUND PAINEWEBBER PERFORMANCE RESULTS (UNAUDITED) (CONCLUDED) Average Annual Return
% RETURN AFTER DEDUCTING % RETURN WITHOUT SALES CHARGE MAXIMUM SALES CHARGE -------------------------------------------------------- CLASS CLASS -------------------------------------------------------- A* B** C*** A* B** C*** - ----------------------------------------------------------------------------- Twelve Months Ended 03/31/96 30.49% 29.55% 29.49% 24.63% 24.55% 28.49% - ----------------------------------------------------------------------------- Five Years Ended 03/31/96 12.61 N/A N/A 11.58 N/A N/A - ----------------------------------------------------------------------------- Ten Years Ended 03/31/96 11.81 N/A N/A 11.29 N/A N/A - ----------------------------------------------------------------------------- Commencement of Operations Through 03/31/96+ 14.47 13.07 13.37 13.99 12.80 13.37 - -----------------------------------------------------------------------------
* Maximum sales charge for Class A shares is 4.5% of the public offering price. Class A shares bear ongoing 12b-1 service fees. **Maximum contingent deferred sales charge for Class B shares is 5% and is reduced to 0% after 6 years. Class B shares bear ongoing 12b-1 distribution and service fees. *** Maximum contingent deferred sales charge for Class C (formerly Class D shares) is 1% and is reduced to 0% after 1 year. Class C shares bear ongoing 12b-1 distribution and service fees. + Commencement of operations dates are March 18, 1985, July 1, 1991 and July 2, 1992 for Class A, Class B and Class C, respectively. The data above represents past performance of the Fund's shares, which is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Note: The Fund offers Class Y (formerly Class C) shares to the INSIGHT Investment Advisory Program and the trustees of the PaineWebber Savings Investment Plan. For the six months ended February 29, 1996, and since inception, August 26, 1991 through February 29, 1996, Class Y shares had a total return of 15.08% and 70.78%, respectively. For the twelve months ended March 31, 1996 and for the period since inception through March 31, 1996, Class Y shares have an average annual return of 30.83% and 12.55%, respectively. Class Y shares do not have initial or contingent deferred sales charges or ongoing distribution and service fees. 4 GROWTH & INCOME FUND PAINEWEBBER PORTFOLIO OF INVESTMENTS FEBRUARY 29, 1996 (UNAUDITED)
NUMBER OF SHARES VALUE --------- ------------ COMMON STOCKS - 89.39% Aerospace - 2.66% 130,000 Lockheed Martin Corporation........................... $ 9,912,500 68,200 McDonnell Douglas Corporation......................... 6,018,650 ------------ 15,931,150 ------------ Agriculture, Food - 2.72% 188,700 Con Agra Incorporated................................. 7,948,987 70,000 IBP, Incorporated..................................... 1,750,000 66,850 Philip Morris Companies Incorporated.................. 6,618,150 ------------ 16,317,137 ------------ Air Transport - 2.06% 100,000 America West Airlines Inc.*........................... 2,062,500 100,000 AMR Corporation Delaware*............................. 8,775,000 100,000 Western Pacific Airlines Inc.*........................ 1,525,000 ------------ 12,362,500 ------------ Apparel, Textiles - 0.85% 100,000 Jones Apparel Group Incorporated*..................... 4,137,500 15,000 Nike Incorporated..................................... 973,125 ------------ 5,110,625 ------------ Banks - 7.18% 200,000 Bank of New York Company Incorporated................. 10,375,000 100,000 Barnett Banks Incorporated............................ 6,250,000 40,000 Chase Manhattan Corporation........................... 2,980,000 101,800 Citicorp.............................................. 7,940,400 100,000 CoreStates Financial Corporation...................... 4,300,000 10,000 First Empire State Corporation........................ 2,410,000 67,500 NationsBank Corporation............................... 4,978,125 100,000 UJB Financial Corporation............................. 3,800,000 ------------ 43,033,525 ------------ Beverages - 1.06% 100,000 Pepsico, Incorporated................................. 6,325,000 ------------ Business Machines - 7.84% 125,000 3Com Corporation*..................................... 6,109,375 208,000 Cisco Systems, Incorporated*.......................... 9,880,000 100,000 Compaq Computer Corporation*.......................... 5,062,500 68,000 Hewlett-Packard Company............................... 6,851,000 25,000 International Business Machines Corporation........... 3,065,625 100,000 Seagate Technology, Incorporated*..................... 6,525,000 100,000 Sun Microsystems Incorporated*........................ 5,250,000 32,700 Xerox Corporation..................................... 4,259,175 ------------ 47,002,675 ------------ Chemicals - 3.17% 50,000 Cabot Corporation..................................... 3,025,000 9,850 Dow Chemical Company.................................. 790,462 90,500 DuPont (EI) de Nemours & Company...................... 6,923,250
5 GROWTH & INCOME FUND PAINEWEBBER
NUMBER OF SHARES VALUE --------- ------------ COMMON STOCKS - (CONTINUED) Chemicals -- (concluded) 50,000 IMC Global Incorporated............................... $ 2,062,500 75,000 Olin Corporation...................................... 6,206,250 ------------ 19,007,462 ------------ Consumer Durables - 0.87% 100,000 Premark International Incorporated.................... 5,237,500 ------------ Containers - 0.74% 110,000 Temple-Inland Incorporated............................ 4,427,500 ------------ Domestic Petroleum Reserves - 0.92% 6,100 Atlantic Richfield Company............................ 667,950 430,000 Forest Oil Corporation*............................... 4,837,500 ------------ 5,505,450 ------------ Drugs, Medicine - 6.85% 8,900 American Home Products Corporation.................... 876,650 83,400 Bristol-Myers Squibb Company.......................... 7,099,425 134,500 Johnson & Johnson..................................... 12,575,750 107,800 Pfizer Incorporated................................... 7,101,325 57,200 Rhone-Poulenc Rorer Incorporated...................... 3,660,800 100,000 Schering Plough Corporation........................... 5,612,500 75,000 Smithkline Beecham, PLC............................... 4,106,250 ------------ 41,032,700 ------------ Electric Utilities - 0.94% 100,000 FPL Group Incorporated................................ 4,462,500 28,000 Norsk Hydro A S Sponsored ADR*........................ 1,193,500 ------------ 5,656,000 ------------ Electronics - 7.36% 100,000 Avnet Incorporated.................................... 4,987,500 113,300 Intel Corporation..................................... 6,663,456 150,000 Kemet Corporation*.................................... 3,525,000 268,200 Loral Corporation..................................... 12,638,925 7,200 Microsoft Corporation*................................ 710,550 168,600 Raytheon Company...................................... 8,451,075 125,000 Rockwell International Corporation.................... 7,125,000 ------------ 44,101,506 ------------ Gas Utilities - 0.60% 125,000 Panhandle Eastern Corporation......................... 3,578,125 ------------ Healthcare (Non-drug) - 4.70% 110,000 Beckman Instruments Incorporated New.................. 3,987,500 106,300 Becton Dickinson & Company............................ 8,716,600 100,000 HEALTHSOUTH Corporation*.............................. 3,500,000 150,000 Horizon/CMS Healthcare*............................... 3,562,500 79,200 Medtronic Incorporated................................ 4,544,100 150,000 Ornda Healthcorp*..................................... 3,843,750 ------------ 28,154,450 ------------
6 GROWTH & INCOME FUND PAINEWEBBER
NUMBER OF SHARES VALUE --------- ------------ COMMON STOCKS - (CONTINUED) Hotels, Restaurants - 0.97% 125,000 Mirage Resorts, Incorporated*......................... $ 5,796,875 ------------ International Oil - 4.03% 13,138 British Petroleum PLC................................. 1,318,727 161,600 Chevron Corporation................................... 8,989,000 21,800 Exxon Corporation..................................... 1,733,100 66,200 Mobil Corporation..................................... 7,257,175 50,000 Occidental Petroleum Corporation...................... 1,150,000 18,500 Royal Dutch Petroleum Company......................... 2,548,375 35,000 Total S.A. ........................................... 1,150,625 ------------ 24,147,002 ------------ Iron & Steel - 0.55% 100,000 USX-U.S. Steel Group, Incorporated.................... 3,275,000 ------------ Leisure, Luxury - 0.44% 80,000 Mattel Incorporated................................... 2,660,000 ------------ Life Insurance - 1.09% 100,600 Equitable of Iowa Companies........................... 3,885,675 55,000 Reliastar Financial Corporation....................... 2,640,000 ------------ 6,525,675 ------------ Miscellaneous Finance - 0.34% 43,800 American Express Company.............................. 2,014,800 ------------ Misc. Mining & Metals - 1.04% 100,000 Freeport McMoran Copper & Gold Company................ 3,262,500 40,000 Potash Corporation Saskatchewan Incorporated.......... 2,970,000 ------------ 6,232,500 ------------ Mortgage Financing - 1.09% 100,000 HGI Reality Incorporated.............................. 2,125,000 100,000 Irvine Apartment Communities Incorporated............. 2,012,500 100,000 Oasis Residential Incorporated........................ 2,375,000 ------------ 6,512,500 ------------ Motor Vehicles - 0.75% 79,800 Chrysler Corporation.................................. 4,498,725 ------------ Oil Refining, Distribution - 1.04% 100,000 Coastal Corporation................................... 3,675,000 38,000 Repsol, S.A., ADR* ................................... 1,377,500 15,000 Shell Transport & Trading PLC......................... 1,177,500 ------------ 6,230,000 ------------ Oil Service - 1.15% 50,000 Camco International Incorporated...................... 1,418,750 100,000 Haliburton Company.................................... 5,487,500 ------------ 6,906,250 ------------
7 GROWTH & INCOME FUND PAINEWEBBER
NUMBER OF SHARES VALUE --------- ------------ COMMON STOCKS - (CONTINUED) Other Insurance - 7.81% 125,000 ACE Limited........................................... $ 5,843,750 112,600 AFLAC Incorporated.................................... 5,221,825 200,971 Allstate Corporation.................................. 8,616,632 85,200 American International Group Incorporated............. 8,232,450 40,000 Chubb Corporation..................................... 3,885,000 37,500 CIGNA Corporation..................................... 4,443,750 17,000 ITT Hartford Group, Incorporated*..................... 875,500 170,700 St. Paul Companies, Incorporated...................... 9,665,887 ------------ 46,784,794 ------------ Paper - 1.57% 70,100 Champion International Corporation.................... 2,804,000 78,000 Kimberly Clark Corporation*........................... 5,957,250 23,300 Westvaco Corporation.................................. 675,700 ------------ 9,436,950 ------------ Producers Goods - 7.92% 158,250 Deere & Company....................................... 6,191,531 60,000 Dover Corporation..................................... 2,670,000 42,400 General Electric Company.............................. 3,201,200 100,000 Global Industrial Technologies Incorporated*.......... 2,337,500 100,000 Ingersoll Rand Company................................ 4,087,500 134,800 Kulicke & Soffa Industries, Incorporated*............. 2,797,100 192,000 Pentair Incorporated.................................. 5,088,000 100,000 Textron Incorporated.................................. 7,875,000 29,495 United States Robotics Corporation*................... 3,657,380 53,800 United Technologies Corporation....................... 5,783,500 100,000 Varity Corporation*................................... 3,775,000 ------------ 47,463,711 ------------ Publishing - 1.17% 185,900 Reynolds & Reynolds Company, Class A.................. 7,040,963 ------------ Railroads, Transit - 1.20% 100,000 Consolidated Rail Incorporated........................ 7,212,500 ------------ Real Property - 1.71% 100,000 Avalon Properties Incorporated........................ 2,237,500 65,000 Chelsea GCA Realty Incorporated....................... 1,933,750 65,000 Equity Residential Properties Trust................... 2,063,750 50,000 Starwood Lodging Trust................................ 1,718,750 100,000 Wellsford Residential Property........................ 2,262,500 ------------ 10,216,250 ------------ Retail (All Other) - 2.92% 125,000 Consolidated Stores Corporation*...................... 3,250,000 95,000 Eckerd Corporation*................................... 4,263,125 170,219 Sears, Roebuck & Company.............................. 7,723,687 100,000 Waban Incorporated*................................... 2,250,000 ------------ 17,486,812 ------------
8 GROWTH & INCOME FUND PAINEWEBBER
NUMBER OF SHARES VALUE --------- ----------- COMMON STOCKS - (CONCLUDED) Services - 1.70% 14,500 Ceridian Corporation*................................. $ 623,500 67,050 Computer Associates International Incorporated........ 4,609,688 150,000 Computervision Corporation*........................... 1,593,750 50,000 Sterling Software Incorporated*....................... 3,331,250 ----------- 10,158,188 ----------- Telephone, Telegraph - 0.38% 11,900 AT&T Corporation...................................... 757,138 100,000 NYNEX CableComms Group PLC, ADR*...................... 1,537,500 ----------- 2,294,638 ----------- Total Common Stocks (cost - $418,406,557)........................ 535,677,438 ----------- PREFERRED STOCK - 0.76% Paper - 0.76% 102,000 International Paper Capital Trust+ (cost - $4,441,245).......................................... 4,539,000 -----------
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES --------- -------------------- -------------- CONVERTIBLE BONDS - 1.05% Air Transport - 0.48% $ 2,500 AMR Corporation Delaware............... 11/01/24 6.125% 2,850,000 ------------ Business Machines - 0.57% 3,500 Quantum Corporation+.... 03/01/03 5.000 3,438,750 ------------ Total Convertible Bonds (cost - $6,100,000)........................ 6,288,750 ------------ U.S. GOVERNMENT OBLIGATIONS - 6.63% 40,000 United States Treasury Bills (cost - $39,754,400)........... 04/04/96 to 04/25/96 5.098 to 5.134@ 39,754,400 ------------ REPURCHASE AGREEMENT - 0.94% 5,617 Repurchase agreement dated 02/29/96, with State Street Bank and Trust Company, collateralized by $5,555,000 U.S. Treasury Notes, 6.125% due 05/15/98; proceeds: $5,617,827 (cost - $5,617,000)............ 03/01/96 5.300 5,617,000 ------------ Total Investments (cost - $474,319,202) - 98.77%............ 591,876,588 Other assets in excess of liabilities - 1.23%................ 7,371,915 ------------ Net Assets - 100.00%............... $599,248,503 ============
- ------- *Non-income producing security + Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. @Yield to maturity at date of purchase. ADR--American Depository Receipts See accompanying notes to financial statements 9 GROWTH FUND PAINEWEBBER PORTFOLIO OF INVESTMENTS FEBRUARY 29, 1996 (UNAUDITED)
NUMBER OF SHARES VALUE --------- ------------ Common Stocks - 90.85% Aerospace - 0.21% 125,000 Kellstrom Industries Incorporated*.................... $ 859,375 ------------ Apparel, Textiles - 0.88% 193,900 Norwood Promotional Products, Incorporated*........... 3,538,675 ------------ Banks - 2.73% 35,000 Bank of New York Company Incorporated................. 1,815,625 40,000 Barnett Banks Incorporated............................ 2,500,000 57,000 Chase Manhattan Corporation........................... 4,246,500 15,000 First Interstate Bancorp.............................. 2,450,625 ------------ 11,012,750 ------------ Beverages - 1.20% 60,000 The Coca Cola Company................................. 4,845,000 ------------ Business Machines - 5.92% 60,000 3Com Corporation*..................................... 2,932,500 68,400 Bay Networks Incorporated............................. 2,787,300 210,000 Cisco Systems, Incorporated*.......................... 9,975,000 20,000 Hewlett-Packard Company............................... 2,015,000 55,000 Seagate Technology, Incorporated*..................... 3,588,750 50,000 Sun Microsystems Incorporated*........................ 2,625,000 ------------ 23,923,550 ------------ Chemicals - 1.00% 50,000 IMC Global Incorporated............................... 2,062,500 30,000 Vigoro Corporation.................................... 1,987,500 ------------ 4,050,000 ------------ Containers - 1.93% 264,000 Sealed Air Corporation*............................... 7,788,000 ------------ Drugs, Medicine - 5.50% 64,900 Columbia Laboratories Incorporated*................... 730,125 52,500 Elan Corporation, PLC, ADS*........................... 3,045,000 120,000 Global Pharmaceutical Corporation*.................... 1,365,000 130,000 Pharmacyclics Incorporated*........................... 1,852,500 50,000 R.P. Scherer Corporation*............................. 2,200,000 172,000 Teva Pharmaceutical Industries Ltd., ADS*............. 7,439,000 130,000 Watson Pharmaceuticals, Incorporated*................. 5,590,000 ------------ 22,221,625 ------------ Electronics - 6.52% 100,000 Amphenol Corporation, Class A*........................ 2,437,500 183,500 Belden, Incorporated.................................. 5,413,250 80,000 Epic Design Technology Incorporated*.................. 2,645,000
10 GROWTH FUND PAINEWEBBER
NUMBER OF SHARES VALUE --------- ----------- COMMON STOCKS - (CONTINUED) Electronics - (continued) 22,500 Glenayre Technologies, Incorporated*................... $ 992,813 100,000 Hummingbird Communications Ltd.*....................... 3,775,000 60,000 Hyperion Software Corporation*......................... 1,095,000 100,000 Lattice Semiconductor Corporation*..................... 3,287,500 150,000 Microcom Incorporated*................................. 4,537,500 25,000 Silicon Graphics, Incorporated*........................ 625,000 56,250 Thermo Instrument Systems Incorporated*................ 1,539,843 ----------- 26,348,406 ----------- Forest Products - 0.41% 195,000 Universal Forest Products Incorporated................. 1,657,500 ----------- Healthcare (Non-Drug) - 4.03% 155,000 Ornda Healthcorp*...................................... 3,971,875 132,000 Phycor Incorporated*................................... 6,006,000 187,854 VISX, Incorporated*.................................... 6,293,109 ----------- 16,270,984 ----------- Hotels, Restaurants - 3.57% 200,000 HFS, Incorporated*..................................... 9,300,000 110,000 Mirage Resorts, Incorporated*.......................... 5,101,250 ----------- 14,401,250 ----------- Leisure, Luxury - 5.15% 250,000 Activision Incorporated*............................... 3,687,500 165,000 Cinar Films Incorporated*.............................. 2,475,000 125,000 Grand Casinos Incorporated*............................ 3,984,375 200,000 Marker International*.................................. 1,825,000 140,000 Mattel Incorporated.................................... 4,655,000 130,400 Mountasia Entertainment International Incorporated*.... 423,800 229,500 Rawlings Sporting Goods Company, Incorporated*......... 1,893,375 80,000 Syratech Corporation*.................................. 1,860,000 ----------- 20,804,050 ----------- Life Insurance - 0.34% 35,000 Equitable of Iowa Companies............................ 1,351,875 ----------- Media - 11.23% 280,000 Ascent Entertainment Group Incorporated*............... 4,060,000 160,000 British Sky Broadcasting Group, PLC*................... 5,760,000 105,000 Comcast Corporation, Class A........................... 2,021,250 257,500 Comcast Corporation, Class A Special................... 5,053,437 125,000 Comcast UK Cable Partners Ltd.*........................ 1,562,500 61,000 Infinity Broadcasting Corporation, Class A*............ 2,516,250 56,250 Liberty Media Group Series A*.......................... 1,553,907
11 GROWTH FUND PAINEWEBBER
NUMBER OF SHARES VALUE --------- ------------ COMMON STOCKS - (CONTINUED) Media - (continued) Metromedia International 100,000 Group*................. $ 1,375,000 News Corporation 190,000 Limited................ 3,800,000 Savoy Pictures Entertainment, 200,000 Incorporated*.......... 1,050,000 Tele Communications 100,000 International*......... 2,150,000 Tele Communications, 225,000 Incorporated, Class A*. 4,725,000 Time Warner 188,000 Incorporated........... 8,037,000 United International Holdings Incorporated, 100,000 Class A*............... 1,687,500 ------------ 45,351,844 ------------ Misc. Mining & Metals - 0.92% Potash Corporation of Saskatchewan 50,000 Incorporated........... 3,712,500 ------------ Mortgage Financing - 2.92% Federal Home Loan 39,500 Mortgage Corporation... 3,258,750 Federal National 270,000 Mortgage Association... 8,538,750 ------------ 11,797,500 ------------ Oil Service - 0.49% Camco International 70,000 Incorporated........... 1,986,250 ------------ Other Insurance - 3.02% 60,000 ACE Limited............. 2,805,000 25,000 CIGNA Corporation....... 2,962,500 PennCorp Financial 150,000 Group, Incorporated.... 4,912,500 Prudential Reinsurance 61,400 Holdings Incorporated.. 1,504,300 ------------ 12,184,300 ------------ Paper - 0.52% Abitibi Price 150,000 Incorporated........... 2,100,000 ------------ Photographic, Optical - 0.73% Noel Group, 430,000 Incorporated*.......... 2,929,375 ------------ Pollution Control - 2.92% Republic Industries 400,000 Incorporated*.......... 11,800,000 ------------ Producers Goods - 3.87% Champion Road Machinery 200,000 Ltd. .................. 1,550,000 40,000 Kaydon Corporation...... 1,320,000 Kulicke & Soffa Industries 110,000 Incorporated*.......... 2,282,500 Mark IV Industries 110,250 Incorporated........... 2,205,000 United Technologies 30,000 Corporation............ 3,225,000 250,000 Waters Corporation*..... 5,062,500 ------------ 15,645,000 ------------
12 GROWTH FUND PAINEWEBBER
NUMBER OF SHARES VALUE --------- ------------ COMMON STOCKS - (CONCLUDED) Railroads, Transit - 2.09% 72,500 Burlington Northern Incorporated...................... $ 5,800,000 117,900 Railtex Incorporated*................................. 2,652,750 ------------ 8,452,750 ------------ Retail (Food) - 1.68% 300,000 General Nutrition Companies Incorporated*............. 6,787,500 ------------ Retail (All Other) - 5.37% 110,000 Corporate Express Incorporated*....................... 3,272,500 60,000 Eckerd Corporation*................................... 2,692,500 20,000 Micro Warehouse Incorporated*......................... 950,000 306,937 Staples, Incorporated*................................ 7,941,995 120,000 Viking Office Products, Incorporated*................. 6,825,000 ------------ 21,681,995 ------------ Services - 10.84% 40,000 Business Objects, S.A.*............................... 2,990,000 70,000 Ceridian Corporation*................................. 3,010,000 95,000 Computervision Corporation*........................... 1,009,375 25,000 Corestaff Incorporated*............................... 1,056,250 230,000 Data Documents Incorporated*.......................... 2,357,500 430,000 Excalibur Technologies Corporation*................... 11,717,500 40,000 First Data Corporation................................ 2,770,000 165,000 Netstar Incorporated*................................. 3,423,750 30,000 Oracle Corporation*................................... 1,560,000 56,250 Paychex, Incorporated................................. 3,100,781 85,500 Service Corporation International..................... 3,879,563 200,000 Staffing Resources Incorporated*...................... 2,566,000 65,000 Sterling Software Incorporated*....................... 4,330,625 ------------ 43,771,344 ------------ Telephone, Telegraph - 4.86% 125,000 Bell Cablemedia PLC, ADR*............................. 1,906,250 191,250 IntelCom Group, Incorporated*......................... 3,083,906 77,000 Intermedia Communications of Florida, Incorporated*... 1,443,750 75,000 International CableTel Incorporated*.................. 1,875,000 72,000 MFS Communications Company, Incorporated*............. 4,356,000 32,000 Millicom International Cellular, S.A.*................ 1,212,000 90,000 NYNEX CableComms Group PLC, ADR*...................... 1,383,750 40,000 Omnipoint Corporation*................................ 1,080,000 70,000 Paging Network Incorporated*.......................... 1,855,000 70,000 TeleWest Communications PLC, ADR*..................... 1,443,750 ------------ 19,639,406 ------------ Total Common Stocks (cost - $229,083,792)........................ 366,912,804 ------------
13 GROWTH FUND PAINEWEBBER
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE --------- -------- -------- ------------ CORPORATE BOND - 0.09% Domestic Petroleum Reserves - 0.09% $1,500 Garnet Resources Corporation (cost - $1,500,000)..................... 12/21/98 9.500% $ 375,000 ------------ CONVERTIBLE BOND - 0.59% Telephone, Telegraph - 0.59% 2,320 IntelCom Group, Incorporated (cost - $2,320,000)..................... 09/17/98 8.000 2,398,205 ------------ REPURCHASE AGREEMENTS - 8.34% 19,000 Repurchase agreement dated 02/29/96 with Daiwa Bank, collateralized by $14,395,000 U.S. Treasury Bond 11.375%, due 11/15/12: proceeds: $19,002,861 (cost - $19,000,000).. 03/01/96 5.420 19,000,000 14,686 Repurchase agreement dated 02/29/96 with State Street Bank and Trust Company, collateralized by $14,520,000 U.S. Treasury Notes 6.125%, due 05/15/98; proceeds: $14,688,162 (cost - $14,686,000).. 03/01/96 5.300 14,686,000 ------------ Total Repurchase Agreements (cost - $33,686,000).................................. 33,686,000 ------------ Total Investments (cost - $266,589,792) - 99.87%........................................ 403,372,009 Other assets in excess of liabilities - 0.13%. 511,292 ------------ Net Assets - 100.00%.......................... $403,883,301 ============
- ------- *Non-income producing ADS-American Depository Shares ADR-American Depository Receipts See accompanying notes to financial statements 14 PAINEWEBBER STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 1996 (UNAUDITED)
GROWTH & INCOME GROWTH FUND FUND ------------ ------------ Assets Investments at value (cost - $474,319,202 and $266,589,792, respectively)........................ $591,876,588 $403,372,009 Cash................................................ 3,500,994 -- Receivable for investments sold..................... 14,027,190 2,065,028 Dividends and interest receivable................... 1,005,415 229,321 Receivable for shares of beneficial interest sold... 668,092 88,514 Other assets........................................ 127,662 379,836 ------------ ------------ Total assets........................................ 611,205,941 406,134,708 ------------ ------------ Liabilities Payable for investments purchased................... 9,965,381 915,800 Payable for shares of beneficial interest repurchased........................................ 1,068,065 829,586 Payable to affiliates............................... 645,661 431,019 Accrued expenses and other liabilities.............. 278,331 75,002 ------------ ------------ Total liabilities................................... 11,957,438 2,251,407 ------------ ------------ Net Assets Beneficial interest--$0.001 par value (unlimited amount authorized)................................. 469,280,977 254,240,192 Accumulated undistributed net investment income (loss)............................................. 128,963 (1,383,297) Accumulated net realized gains from investments .... 12,281,177 14,244,189 Net unrealized appreciation of investments.......... 117,557,386 136,782,217 ------------ ------------ Net assets.......................................... $599,248,503 $403,883,301 ============ ============ Class A: Net assets.......................................... $268,308,144 $201,562,919 ------------ ------------ Shares outstanding.................................. 11,288,522 8,524,288 ------------ ------------ Net asset value and redemption value per share...... $23.77 $23.65 ============ ============ Maximum offering price per share (net asset value plus sales charge of 4.50% of offering price)...... $24.89 $24.76 ============ ============ Class B: Net assets.......................................... $272,542,747 $149,909,245 ------------ ------------ Shares outstanding.................................. 11,500,493 6,603,368 ------------ ------------ Net asset value and offering price per share........ $23.70 $22.70 ============ ============ Class C: Net assets.......................................... $ 38,254,805 $ 30,783,699 ------------ ------------ Shares outstanding.................................. 1,609,538 1,345,701 ------------ ------------ Net asset value and offering price per share........ $23.77 $22.88 ============ ============ Class Y: Net assets.......................................... $ 20,142,807 $ 21,627,438 ------------ ------------ Shares outstanding.................................. 847,922 901,933 ------------ ------------ Net asset value, offering price and redemption value per share.......................................... $23.76 $23.98 ============ ============
See accompanying notes to financial statements 15 PAINEWEBBER STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 29, 1996 (UNAUDITED)
GROWTH & INCOME GROWTH FUND FUND ----------- ----------- Investment income: Dividends.............................................. $ 4,032,949 $ 850,312 Interest............................................... 1,890,670 780,277 ----------- ----------- 5,923,619 1,630,589 ----------- ----------- Expenses: Investment advisory and administration................. 1,915,566 1,455,823 Service fees--Class A.................................. 274,581 218,453 Service and distribution fees--Class B................. 1,285,130 738,886 Service and distribution fees--Class C................. 169,319 151,618 Transfer agency and service fees....................... 289,791 80,197 Fund acquisition expenses.............................. 215,034 -- Reports and notices to shareholders.................... 121,640 26,853 Custody and accounting................................. 92,219 37,851 Legal and audit........................................ 75,930 21,397 Federal and state registration fees.................... 55,443 69,450 Trustees' fees......................................... 10,706 8,081 Other expenses......................................... 15,768 9,942 ----------- ----------- 4,521,127 2,818,551 ----------- ----------- Net investment income (loss)........................... 1,402,492 (1,187,962) ----------- ----------- Realized and unrealized gains from investment activi- ties: Net realized gains from investment transactions........ 38,364,438 31,794,897 Net change in unrealized appreciation/depreciation of investments........................................... 32,471,381 23,184,111 ----------- ----------- Net realized and unrealized gains from investment ac- tivities.............................................. 70,835,819 54,979,008 ----------- ----------- Net increase in net assets resulting from operations... $72,238,311 $53,791,046 =========== ===========
See accompanying notes to financial statements 16 GROWTH & INCOME FUND PAINEWEBBER STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FOR THE YEAR FEBRUARY 29, 1996 ENDED (UNAUDITED) AUGUST 31, 1995 ------------------ --------------- From operations: Net investment income....................... $ 1,402,492 $ 3,038,055 Net realized gains from investment transactions............................... 38,364,438 17,636,364 Net change in unrealized appreciation/depreciation of investments... 32,471,381 52,701,413 ------------ ------------- Net increase in net assets resulting from operations................................. 72,238,311 73,375,832 ------------ ------------- Dividends and distributions to shareholders from: Net investment income--Class A.............. (2,241,645) (1,163,754) Net investment income--Class B.............. (790,304) (457,553) Net investment income--Class C.............. (103,224) (53,897) Net investment income--Class Y.............. (215,598) (102,452) Net realized gains from investment transactions--Class A...................... (14,113,535) (11,701,555) Net realized gains from investment transactions--Class B...................... (16,674,335) (15,518,597) Net realized gains from investment transactions--Class C...................... (2,139,119) (1,953,255) Net realized gains from investment transactions--Class Y...................... (1,066,345) (828,242) ------------ ------------- (37,344,105) (31,779,305) ------------ ------------- From beneficial interest transactions: Net proceeds from the sale of shares........ 33,485,350 30,582,369 Proceeds from the issuance of shares from the acquisition of Mitchell Hutchins/Kidder, Peabody Equity Income Fund....................................... 60,522,138 -- Proceeds from the issuance of shares from the acquisition of PaineWebber Global Energy Fund................................ 17,163,198 -- Cost of shares repurchased.................. (61,236,302) (185,758,645) Proceeds from dividends reinvested.......... 34,672,037 29,628,162 ------------ ------------- Net increase (decrease) in net assets from beneficial interest transactions........... 84,606,421 (125,548,114) ------------ ------------- Net increase (decrease) in net assets....... 119,500,627 (83,951,587) Net assets: Beginning of period......................... 479,747,876 563,699,463 ------------ ------------- End of period (including undistributed net investment income of $128,963 and $12,910,318, respectively)................. $599,248,503 $ 479,747,876 ============ =============
See accompanying notes to financial statements 17 GROWTH FUND PAINEWEBBER STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FOR THE YEAR FEBRUARY 29, 1996 ENDED (UNAUDITED) AUGUST 31, 1995 ------------------ --------------- From operations: Net investment loss......................... $ (1,187,962) $ (331,823) Net realized gains from investment transactions............................... 31,794,897 17,051,928 Net change in unrealized appreciation/depreciation of investments... 23,184,111 7,109,490 ------------ ------------ Net increase in net assets resulting from operations................................. 53,791,046 23,829,595 ------------ ------------ Distributions to shareholders from: Net realized gains from investment transactions--Class A...................... (14,736,470) (170,322) Net realized gains from investment transactions--Class B...................... (11,773,021) (120,995) Net realized gains from investment transactions--Class C...................... (2,425,155) (33,706) Net realized gains from investment transactions--Class Y...................... (1,487,963) (37,136) ------------ ------------ (30,422,609) (362,159) ------------ ------------ From beneficial interest transactions: Net proceeds from sale of shares............ 16,674,855 29,210,160 Proceeds from the issuance of shares from the acquisition of PaineWebber Communications & Technology Growth Fund.... -- 62,703,777 Proceeds from the issuance of shares from the acquisition of PaineWebber Blue Chip Growth Fund................................ -- 86,500,222 Cost of shares repurchased.................. (52,751,411) (112,053,043) Proceeds from dividends reinvested.......... 28,720,783 345,390 ------------ ------------ Net increase (decrease) in net assets from beneficial interest transactions........... (7,355,773) 66,706,506 ------------ ------------ Net increase in net assets.................. 16,012,664 90,173,942 Net assets: Beginning of period......................... 387,870,637 297,696,695 ------------ ------------ End of period............................... $403,883,301 $387,870,637 ============ ============
See accompanying notes to financial statements 18 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) PAINEWEBBER ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES PaineWebber Growth & Income Fund ("Growth & Income Fund") and PaineWebber Growth Fund ("Growth Fund") (collectively, the "Funds") are diversified series of PaineWebber America Fund and PaineWebber Olympus Fund (the "Trusts"), respectively. The two Trusts were organized under separate Declarations of Trust and are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, as diversified open-end investment companies. Each fund offers Class A, Class B, Class C (formerly Class D) and Class Y (formerly Class C) Shares. Effective November 10, 1995, the Funds began using industry standardized nomenclature and the former Class C shares were renamed Class Y shares and the former Class D shares were renamed Class C shares. Class Y shares are offered for sale to participants in the INSIGHT Investment Advisory Program, and to the trustee of the PaineWebber Savings Investment Plan on behalf of that Plan. Each class of shares represents interests in the same assets of the applicable Fund, and the classes are identical except for differences in their sales charge structure, ongoing service/distribution charges and certain transfer agency expenses. In addition, Class B shares and all corresponding reinvested dividends shares automatically convert to Class A shares approximately six years after initial issuance. All classes of shares have equal rights as to voting privileges, except that Class A, Class B, and Class C shares have exclusive voting rights with respect to their distribution plans. The preparation of financial statements in accordance with generally accepted accounting principles requires Fund management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Valuation of Investments - Securities which are listed on stock exchanges are valued at the last sale price on the day the securities are being valued or, lacking any sales on such day, at the last available bid price. In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by Mitchell Hutchins Asset Management Inc. ("Mitchell Hutchins"), an affiliate and wholly owned subsidiary of PaineWebber Incorporated ("PaineWebber") and investment adviser, administrator and distributor of the Funds. Securities traded in the over-the- counter ("OTC") market and listed on the National Association of Securities Dealers Automated Quotation System ("NASDAQ") are valued at the last sale price on NASDAQ prior to the time of valuation; other OTC securities are valued at the last bid price available in the OTC market prior to the time of valuation. The amortized cost method of valuation is used to value short-term debt instruments with sixty days or less remaining to maturity. Securities and assets for which market quotations are not 19 PAINEWEBBER readily available (including restricted securities subject to limitations as to their sale) are valued at fair value as determined in good faith by or under the direction of each Trust's Board of Trustees. Repurchase Agreements - Each Fund's custodian takes possession of the collateral pledged for investments in repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to ensure that the value, including accrued interest, is at least equal to the repurchase price. In the event of default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. Each Fund occasionally participates in joint repurchase agreement transactions with other funds managed by Mitchell Hutchins. Investment Transactions and Investment Income - Investment transactions are recorded on trade date. Realized gains and losses from investment transactions are calculated using the identified cost method. Interest income is recorded on an accrual basis and dividend income is recorded on the ex-dividend date. Premiums are amortized and discounts are accreted as adjustments to interest income and identified cost of investments. Income, expenses (excluding class-specific expenses) and realized/unrealized gains (losses) are allocated proportionately to each class of shares based upon the relative net asset value of outstanding shares (or the value of dividend- eligible shares, as appropriate) of each class at the beginning of the day (after adjusting for current capital share activity of the respective classes). Class specific expenses are charged directly to the applicable class of shares. Dividends and Distributions - Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains 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 reclassifications. Dividends and distributions which exceed net investment income and net realized capital gains for financial reporting purposes but not for tax purposes are reported as dividends in excess of net investment income or distributions in excess of net realized capital gains. To the extent they exceed net investment income and net realized capital gains for tax purposes, they are reported as distributions of paid-in-capital. 20 PAINEWEBBER ACQUISITION Effective October 13, 1995, Growth & Income Fund acquired all of the net assets of PaineWebber Global Energy Fund ("Global Energy Fund") in a tax free exchange for shares of Growth & Income Fund. The acquisition was accomplished by a tax- free exchange of 338,423 Class A, 414,593 Class B and 24,548 Class C shares of Growth & Income Fund for 680,852 Class A, 832,585 Class B and 50,070 Class C shares, respectively, of Global Energy Fund outstanding. Global Energy Fund's net assets at that date, valued at $17,163,198 including accumulated net realized losses of $2,079,189 and net unrealized appreciation of investments of $653,059, were combined with those of Growth & Income Fund. Effective October 13, 1995, Growth & Income Fund acquired all of the net assets of Mitchell Hutchins/Kidder, Peabody Equity Income Fund ("MH/KP Equity Income Fund") in a tax free exchange for shares of Growth & Income Fund. The acquisition was accomplished by a tax-free exchange of 2,533,885 Class A, 137,926 Class Y and 67,543 Class C shares of Growth & Income Fund for 2,816,987 Class A, 153,429 Class Y and 75,614 Class B shares, respectively, of MH/KP Equity Income Fund outstanding. MH/KP Equity Income Fund's net assets at that date, valued at $60,522,138 including accumulated net realized losses of $384,848 and net unrealized appreciation of investments of $5,986,801 were combined with those of Growth & Income Fund. INVESTMENT ADVISER AND ADMINISTRATOR The Funds each have an Investment Advisory and Administration Contract ("Advisory Contract") with Mitchell Hutchins. In accordance with the Advisory Contract, Growth & Income Fund and Growth Fund pay Mitchell Hutchins an investment advisory and administration fee of 0.700% and 0.750%, respectively as a percentage of average daily net assets, which is accrued daily and paid monthly. At February 29, 1996, Growth & Income Fund and Growth Fund owed Mitchell Hutchins $332,752 and $239,716, respectively, in investment advisory and administration fees. For the six months ended February 29, 1996, Growth & Income Fund and Growth Fund paid $16,769 and $10,200, respectively, in brokerage commissions to PaineWebber for transactions executed on behalf of the Funds. In compliance with applicable state securities laws, Mitchell Hutchins will reimburse the Funds if and to the extent that the aggregate operating expenses in any fiscal year, exclusive of taxes, distribution fees, interest, brokerage fees and extraordinary expenses, exceed limitations imposed by various state regulations. Currently, the most restrictive limitation applicable to the Funds is 2.5% of the first $30 million of average daily net assets, 2.0% of the next $70 million and 1.5% of 21 PAINEWEBBER any excess over $100 million. For the six months ended February 29, 1996, no reimbursements were required pursuant to the above limitation for any of the Funds. DISTRIBUTION PLANS Mitchell Hutchins is the distributor of each Fund's shares and has appointed PaineWebber as the exclusive dealer for the sale of those shares. Under separate plans of service/distribution pertaining to the Class A, Class B and Class C (formerly Class D) shares, the Funds pay Mitchell Hutchins monthly service fees at the annual rate of up to 0.25% of the average daily net assets of Class A, Class B and Class C shares and monthly distribution fees at the annual rate of up to 0.75% of the average daily net assets on Class B and Class C shares. At February 29, 1996, Growth & Income Fund and Growth Fund owed Mitchell Hutchins $295,668 and $180,084, respectively, in service and distribution fees. Mitchell Hutchins also receives the proceeds of the initial sales charges paid upon the purchase of Class A shares and the contingent deferred sales charges paid upon certain redemptions of Class A, Class B and Class C shares. Mitchell Hutchins has informed each Fund that for the six months ended February 29, 1996, it received $485,860 and $327,821 in sales charges relating to Growth & Income Fund and Growth Fund, respectively. TRANSFER AGENCY SERVICE FEES Each Fund pays PaineWebber an annual fee of $4.00 per active PaineWebber shareholder account for certain services not provided by the Fund's transfer agent. For these services during the six months ended February 29, 1996, PaineWebber earned $103,253 and $69,638 from Growth & Income Fund and Growth Fund, respectively. At February 29, 1996, PaineWebber was owed $17,241 and $11,219 by Growth & Income Fund and Growth Fund, respectively, for transfer agency service fees. INVESTMENTS IN SECURITIES For federal income tax purposes, the cost of securities owned at February 29, 1996, was substantially the same as the cost of securities for financial statement purposes. 22 PAINEWEBBER At February 29, 1996, the components of net unrealized appreciation of investments were as follows:
GROWTH & INCOME FUND GROWTH FUND ------------ ------------ Gross appreciation (investments having an excess of value over cost).................................... $122,218,381 $145,858,757 Gross depreciation (investments having an excess of cost over value).................................... 4,660,995 9,076,540 ------------ ------------ Net unrealized appreciation of investments........... $117,557,386 $136,782,217 ============ ============ For the six months ended February 29, 1996, total aggregate purchases and sales of portfolio securities, excluding short-term securities, were as follows: GROWTH & INCOME FUND GROWTH FUND ------------ ------------ Purchases............................................ $322,743,213 $126,907,924 Sales................................................ $327,615,132 $161,677,047
FEDERAL TAX STATUS Each Fund intends to distribute all of its taxable income and to comply with the other requirements of the Internal Revenue Code applicable to regulated investment companies. Accordingly, no provision for federal income taxes is required. In addition, by distributing during each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, each Fund intends not to be subject to any federal excise tax. The Growth Fund has a net capital loss carryforward of $3,785,329 at August 31, 1995 pursuant to its acquisition of PaineWebber Blue Chip Growth Fund and PaineWebber Communications & Technology Growth Fund. This loss carryforward is available as a reduction, to the extent provided in the regulations, of future net capital gains realized, and will expire in 2002. 23 PAINEWEBBER SHARES OF BENEFICIAL INTEREST There is an unlimited amount of $0.001 par value shares of beneficial interest authorized. Transactions in shares of beneficial interest were as follows:
CLASS A CLASS B CLASS C CLASS Y ------------------------ ------------------------ --------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------ -------- ----------- -------- ------------- GROWTH & INCOME FUND SIX MONTHS ENDED FEBRUARY 29, 1996: Shares sold..... 424,190 $ 9,740,033 689,111 $ 15,696,077 276,566 $ 6,318,251 75,669 $ 1,730,989 Shares issued in connection with the acquisition of: MH/KP Equity Income Fund... 2,533,885 55,983,774 -- -- 67,543 1,493,701 137,926 3,044,663 PaineWebber Global Energy Fund.......... 338,423 7,478,321 414,593 9,142,000 24,548 542,877 -- -- Shares repurchased.... (1,059,768) (24,029,824) (1,349,077) (30,621,404) (214,579) (4,871,637) (75,283) (1,713,437) Shares converted from Class B to Class A........ 57,030 1,293,103 (57,209) (1,293,103) -- -- -- -- Dividends reinvested..... 688,025 15,111,874 737,304 16,143,771 97,255 2,136,436 58,385 1,279,956 ---------- ------------ ---------- ------------ -------- ----------- -------- ------------- Net increase ... 2,981,785 $ 65,577,281 434,722 $ 9,067,341 251,333 $ 5,619,628 196,697 $ 4,342,171 ========== ============ ========== ============ ======== =========== ======== ============= YEAR ENDED AUGUST 31, 1995: Shares sold..... 406,738 $ 8,281,477 791,571 $ 16,018,352 142,739 $ 2,898,240 169,458 $ 3,384,300 Shares repurchased.... (3,712,415) (73,393,874) (4,676,193) (92,319,141) (715,856) (14,159,528) (288,614) (5,886,102) Shares converted from Class B to Class A........ 72,134 1,428,360 (72,367) (1,428,360) -- -- -- -- Dividends reinvested..... 653,877 11,890,156 821,955 14,887,430 105,724 1,919,882 51,195 930,694 ---------- ------------ ---------- ------------ -------- ----------- -------- ------------- Net decrease.... (2,579,666) $(51,793,881) (3,135,034) $(62,841,719) (467,393) $(9,341,406) (67,961) $ (1,571,108) ========== ============ ========== ============ ======== =========== ======== ============= CLASS A CLASS B CLASS C CLASS Y ------------------------ ------------------------ --------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------ -------- ----------- -------- ------------- GROWTH FUND SIX MONTHS ENDED FEBRUARY 29, 1996: Shares sold..... 242,173 $ 5,696,502 284,107 $ 6,339,581 108,485 $ 2,416,705 95,095 $ 2,222,067 Shares repurchased.... (921,226) (21,254,571) (940,261) (20,777,969) (282,403) (6,298,258) (188,243) (4,420,614) Shares converted from Class B to Class A........ 319,961 7,251,873 (322,427) (7,251,873) -- -- -- -- Dividends reinvested..... 623,918 13,988,235 505,415 10,896,748 108,095 2,347,836 65,491 1,487,963 ---------- ------------ ---------- ------------ -------- ----------- -------- ------------- Net increase (decrease)..... 264,826 $ 5,682,039 (473,166) $(10,793,513) (65,823) $(1,533,717) (27,657) $ (710,584) ========== ============ ========== ============ ======== =========== ======== ============= YEAR ENDED AUGUST 31, 1995: Shares sold..... 343,756 $ 6,797,998 593,500 $ 11,354,188 184,507 $ 3,593,377 373,860 $ 7,464,597 Shares issued in connection with the acquisition of: PaineWebber Communications & Technology Growth Fund.... 533,772 11,895,983 2,011,998 43,342,827 343,927 7,464,967 -- -- PaineWebber Blue Chip Growth Fund... 2,348,128 52,326,034 1,425,501 30,724,310 159,005 3,449,878 -- -- Shares repurchased.... (2,089,914) (41,666,293) (1,875,647) (36,501,877) (729,746) (14,263,697) (955,791) (19,621,176) Shares converted from Class B to Class A........ 63,558 1,245,674 (65,425) (1,245,674) -- -- -- -- Dividends reinvested..... 8,698 161,962 6,276 113,599 1,793 32,693 1,975 37,136 ---------- ------------ ---------- ------------ -------- ----------- -------- ------------- Net increase (decrease)..... 1,207,998 $ 30,761,358 2,096,203 $ 47,787,373 (40,514) $ 277,218 (579,956) $ (12,119,443) ========== ============ ========== ============ ======== =========== ======== =============
24 [This Page Intentionally Left Blank] 25 GROWTH & INCOME FUND PAINEWEBBER FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
CLASS A ----------------------------------------------------------------- FOR THE SIX MONTHS ENDED FEBRUARY 29, FOR THE YEARS ENDED AUGUST 31, 1996 ------------------------------------------------- (UNAUDITED) 1995 1994 1993 1992 1991 ------------ -------- -------- -------- -------- -------- Net asset value, beginning of period.... $ 22.52 $ 20.43 $ 20.86 $ 20.48 $ 19.26 $ 15.87 -------- -------- -------- -------- -------- -------- Net investment income... 0.10 0.24 0.28 0.28 0.24 0.19 Net realized and unrealized gains (losses) from investment transactions........... 2.91 3.18 (0.41) 0.37 1.25 3.50 -------- -------- -------- -------- -------- -------- Total increase (decrease) from investment operations.. 3.01 3.42 (0.13) 0.65 1.49 3.69 -------- -------- -------- -------- -------- -------- Dividends from investment income...... (0.25) (0.12) (0.27) (0.27) (0.27) (0.30) Distributions from realized gains on investments............ (1.51) (1.21) (0.03) -- -- -- -------- -------- -------- -------- -------- -------- Total dividends and distributions.......... (1.76) (1.33) (0.30) (0.27) (0.27) (0.30) -------- -------- -------- -------- -------- -------- Net asset value, end of period................. $ 23.77 $ 22.52 $ 20.43 $ 20.86 $ 20.48 $ 19.26 ======== ======== ======== ======== ======== ======== Total investment return(1).............. 14.16% 18.30% (0.58)% 3.15% 7.78% 23.62% ======== ======== ======== ======== ======== ======== Ratios/Supplemental Data: Net assets, end of period (000's)......... $268,308 $187,057 $222,432 $359,073 $358,643 $232,555 Ratio of expenses to average net assets..... 1.23%*(2) 1.19% 1.20% 1.13% 1.22% 1.42% Ratio of net investment income to average net assets................. 0.95%*(2) 1.07% 1.29% 1.33% 1.26% 1.79% Portfolio turnover...... 65% 111% 94% 37% 16% 52% Average commission rate paid per share of common stock investments purchased/sold(3)...... $0.0596 -- -- -- -- --
- ------- * Annualized ** Formerly Class D shares + Commencement of issuance of shares (1) Total investment return is calculated assuming a $1,000 investment on the first day of each period reported, reinvestment of all dividends and capital gain distributions at net asset value on the payable date, and a sale at net asset value on the last day of each period reported. The figures do not include sales charges; results would be lower if sales charges were included. Total investment return information for periods less than one year is not annualized. (2) These ratios include non-recurring reorganization expenses of 0.08% for each Class. (3) Disclosure effective for fiscal years beginning on or after September 1, 1995. 26 GROWTH & INCOME FUND PAINEWEBBER
CLASS B CLASS C** - ------------------------------------------------------------------- ------------------------------------------------------ FOR THE FOR THE FOR THE FOR THE SIX MONTHS FOR THE YEARS PERIOD SIX MONTHS FOR THE YEARS PERIOD ENDED ENDED JULY 1, ENDED ENDED JULY 2, FEBRUARY 29, AUGUST 31, 1991+ TO FEBRUARY 29, AUGUST 31, 1992+ TO 1996 --------------------------------------- AUGUST 31, 1996 -------------------------- AUGUST 31, (UNAUDITED) 1995 1994 1993 1992 1991 (UNAUDITED) 1995 1994 1993 1992 - ------------ -------- -------- -------- -------- ---------- ------------ ------- ------- ------- ---------- $22.37 $ 20.37 $ 20.78 $ 20.41 $ 19.23 $ 18.04 $ 22.43 $ 20.42 $ 20.83 $ 20.47 $ 20.95 -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- ------- 0.01 0.06 0.10 0.12 0.13 0.02 0.02 0.06 0.11 0.11 0.02 2.90 3.18 (0.37) 0.36 1.20 1.17 2.90 3.19 (0.38) 0.37 (0.44) -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- ------- 2.91 3.24 (0.27) 0.48 1.33 1.19 2.92 3.25 (0.27) 0.48 (0.42) -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- ------- (0.07) (0.03) (0.11) (0.11) (0.15) -- (0.07) (0.03) (0.11) (0.12) (0.06) (1.51) (1.21) (0.03) -- -- -- (1.51) (1.21) (0.03) -- -- -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- ------- (1.58) (1.24) (0.14) (0.11) (0.15) -- (1.58) (1.24) (0.14) (0.12) (0.06) -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- ------- $ 23.70 $ 22.37 $ 20.37 $ 20.78 $ 20.41 $ 19.23 $ 23.77 $ 22.43 $ 20.42 $ 20.83 $ 20.47 ======== ======== ======== ======== ======== ======= ======= ======= ======= ======= ======= 13.72% 17.38% (1.31)% 2.34% 6.99% 6.60% 13.74% 17.37% (1.29)% 2.35% 2.85% ======== ======== ======== ======== ======== ======= ======= ======= ======= ======= ======= $272,543 $247,543 $289,290 $461,389 $386,275 $57,539 $38,255 $30,468 $37,287 $61,869 $13,019 2.04%*(2) 1.97% 1.97% 1.90% 1.97% 2.10%* 2.04%*(2) 1.98% 1.94% 1.87% 1.73%* 0.11%*(2) 0.29% 0.51% 0.57% 4.90% 1.18%* 0.12%*(2) 0.28% 0.54% 0.61% 0.94%* 65% 111% 94% 37% 16% 52% 65% 111% 94% 37% 16% $0.0596 -- -- -- -- -- $0.0596 -- -- -- --
27 GROWTH & INCOME FUND PAINEWEBBER FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
CLASS Y** -------------------------------------------------------- FOR THE FOR THE SIX MONTHS FOR THE YEARS PERIOD ENDED ENDED FEBRUARY 12, FEBRUARY 29, AUGUST 31, 1992+ TO 1996 -------------------------- AUGUST 31, (UNAUDITED) 1995 1994 1993 1992 ------------ ------- ------- ------- ------------ Net asset value, beginning of period.... $ 22.54 $ 20.42 $ 20.86 $ 20.48 $ 20.95 ------- ------- ------- ------- ------- Net investment income... 0.15 0.30 0.33 0.33 0.16 Net realized and unrealized gains (losses) from investment transactions........... 2.89 3.18 (0.40) 0.37 (0.49) ------- ------- ------- ------- ------- Total increase (decrease) from investment operations.. 3.04 3.48 (0.07) 0.70 (0.33) ------- ------- ------- ------- ------- Dividends from investment income...... (0.31) (0.15) (0.34) (0.32) (0.14) Distributions from realized gains on investments............ (1.51) (1.21) (0.03) -- -- ------- ------- ------- ------- ------- Total dividends and distributions.......... (1.82) (1.36) (0.37) (0.32) (0.14)% ------- ------- ------- ------- ------- Net asset value, end of period................. $ 23.76 $ 22.54 $ 20.42 $ 20.86 $ 20.48 ======= ======= ======= ======= ======= Total investment return(1).............. 14.35% 18.66% (0.31)% 3.44% (1.15)% ======= ======= ======= ======= ======= Ratios/Supplemental Data: Net assets, end of period (000's)......... $20,143 $14,680 $14,690 $17,005 $10,560 Ratio of expenses to average net assets..... 0.96%*(2) 0.89% 0.90% 0.86% 0.93%* Ratio of net investment income to average net assets................. 1.22%*(2) 1.39% 1.60% 1.62% 1.56%* Portfolio turnover...... 65% 111% 94% 37% 16% Average commission rate paid per share of common stock investments purchased/sold(3)...... $0.0596 -- -- -- --
- ------- * Annualized ** Formerly Class C shares + Commencement of issuance of shares (1) Total investment return is calculated assuming a $1,000 investment on the first day of each period reported, reinvestment of all dividends and capital gain distributions at net asset value on the payable date, and a sale at net asset value on the last day of each period reported. Total investment return information for periods less than one year is not annualized. (2) These ratios include non-recurring acquisition expenses of 0.08%. (3) Disclosure effective for fiscal years beginning on or after September 1, 1995. 28 [This Page Intentionally Left Blank] 29 GROWTH FUND PAINEWEBBER FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
CLASS A ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FEBRUARY 29, FOR THE YEARS ENDED AUGUST 31, 1996 -------------------------------------------------- (UNAUDITED) 1995 1994 1993 1992 1991 ------------ -------- -------- -------- -------- ------- Net asset value, beginning of period.... $22.27 $ 20.04 $ 20.60 $ 16.78 $ 17.50 $ 13.43 -------- -------- -------- -------- -------- ------- Net investment income (loss)................. (0.04) 0.01 -- 0.07 -- 0.02 Net realized and unrealized gains (losses) from investment transactions........... 3.26 2.25 0.51 4.37 (0.11) 4.68 -------- -------- -------- -------- -------- ------- Net increase (decrease) from investment operations............. 3.22 2.26 0.51 4.44 (0.11) 4.70 -------- -------- -------- -------- -------- ------- Dividends from investment income...... -- -- -- -- (0.01) (0.17) Distributions from realized gains on investments............ (1.84) (0.03) (1.07) (0.62) (0.60) (0.46) -------- -------- -------- -------- -------- ------- Total dividends and distributions.......... (1.84) (0.03) (1.07) (0.62) (0.61) (0.63) -------- -------- -------- -------- -------- ------- Net asset value, end of period................. $ 23.65 $ 22.27 $ 20.04 $ 20.60 $ 16.78 $ 17.50 ======== ======== ======== ======== ======== ======= Total investment return(1).............. 14.93% 11.28% 2.33% 26.97% (0.85)% 37.02% ======== ======== ======== ======== ======== ======= Ratios/Supplemental Data: Net assets, end of period (000's)......... $201,563 $183,958 $141,342 $130,353 $102,640 $96,796 Ratio of expenses to average net assets..... 1.11%* 1.28%(2) 1.21% 1.22% 1.43% 1.56% Ratio of net investment income (loss) to average net assets..... (0.27)%* 0.19%(2) 0.06% 0.38% 0.00% 0.10% Portfolio turnover...... 42% 36% 24% 36% 32% 29% Average commission rate paid per share of common stock investments purchased/sold(3)...... $ 0.0595 -- -- -- -- --
- ------- * Annualized ** Formerly Class D shares + Commencement of offering of shares (1) Total investment return is calculated assuming a $1,000 investment on the first day of each period reported, reinvestment of all dividends and capital gain 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 sales charges; results for each class would be lower if sales charges were included. Total return information for periods less than one year is not annualized. (2) These ratios include non-recurring acquisition expenses of 0.06%, 0.06% and 0.05% for Class A, B and C, respectively. (3) Disclosure effective for fiscal years beginning on or after September 1, 1995. 30 GROWTH FUND PAINEWEBBER
CLASS B CLASS C** - -------------------------------------------------------------------- ------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS FOR THE YEARS PERIOD SIX MONTHS FOR THE YEARS PERIOD ENDED ENDED JULY 1, ENDED ENDED JULY 2, FEBRUARY 29, AUGUST 31, 1991+ TO FEBRUARY 29, AUGUST 31, 1992+ TO 1996 ----------------------------------------- AUGUST 31, 1996 ---------------------------- AUGUST 31, (UNAUDITED) 1995 1994 1993 1992 1991 (UNAUDITED) 1995 1994 1993 1992 - ------------ -------- ------- ------- ------- ---------- ------------ ------- ------- ------- ---------- $ 21.53 $ 19.53 $ 20.25 $ 16.64 $ 17.48 $15.63 $ 21.68 $ 19.67 $ 20.38 $ 16.75 $17.04 -------- -------- ------- ------- ------- ------ ------- ------- ------- ------- ------ (0.15) (0.02) (0.06) (0.05) (0.06) (0.02) (0.13) (0.10) (0.08) (0.06) (0.01) 3.16 2.05 0.41 4.28 (0.18) 1.87 3.17 2.14 0.44 4.31 (0.28) -------- -------- ------- ------- ------- ------ ------- ------- ------- ------- ------ 3.01 2.03 0.35 4.23 (0.24) 1.85 3.04 2.04 0.36 4.25 (0.29) -------- -------- ------- ------- ------- ------ ------- ------- ------- ------- ------ -- -- -- -- -- -- -- -- -- -- -- (1.84) (0.03) (1.07) (0.62) (0.60) -- (1.84) (0.03) (1.07) (0.62) -- -------- -------- ------- ------- ------- ------ ------- ------- ------- ------- ------ (1.84) (0.03) (1.07) (0.62) (0.60) -- (1.84) (0.03) (1.07) (0.62) -- -------- -------- ------- ------- ------- ------ ------- ------- ------- ------- ------ $ 22.70 $ 21.53 $ 19.53 $ 20.25 $ 16.64 $17.48 $ 22.88 $ 21.68 $ 19.67 $ 20.38 $16.75 ======== ======== ======= ======= ======= ====== ======= ======= ======= ======= ====== 14.45% 10.40% 1.55% 25.91% (1.58)% 11.84% 14.50% 10.37% 1.59% 25.86% (2.95)% ======== ======== ======= ======= ======= ====== ======= ======= ======= ======= ====== $149,909 $152,357 $97,272 $60,280 $35,867 $3,804 $30,784 $30,608 $28,561 $16,474 $2,275 1.88%* 2.06%(2) 2.00% 2.02% 2.20% 2.24%* 1.88%* 2.05%(2) 1.98% 2.06% 1.98%* (1.04)%* (0.60)%(2) (0.66)% (0.46)% (0.70)% (0.81)%* (1.04)%* (0.57)%(2) (0.65)% (0.69)% (0.65)%* 42% 36% 24% 36% 32% 29% 42% 36% 24% 36% 32% $0.0595 -- -- -- -- -- $0.0595 -- -- -- --
31 GROWTH FUND PAINEWEBBER
CLASS Y++ --------------------------------------------------- FOR THE SIX MONTHS FOR THE YEARS ENDED ENDED FEBRUARY 29, AUGUST 31, 1996 ------------------------------------- (UNAUDITED) 1995 1994 1993 1992 ------------ ------- ------- ------- ------- Net asset value, beginning of period................ $ 22.53 $ 20.22 $ 20.71 $ 16.83 $ 17.50 ------- ------- ------- ------- ------- Net investment income (loss)................... 0.00 0.24 0.03 0.08 0.05 Net realized and unrealized gains (losses) from investment transactions............. 3.29 2.10 0.55 4.42 (0.11) ------- ------- ------- ------- ------- Net increase (decrease) from investment operations............... 3.29 2.34 0.58 4.50 (0.06) ------- ------- ------- ------- ------- Dividends from investment income................... -- -- -- -- (0.01) Distributions from realized gains on investments.............. (1.84) (0.03) (1.07) (0.62) (0.60) ------- ------- ------- ------- ------- Total dividends and distributions............ (1.84) (0.03) (1.07) (0.62) (0.61) ------- ------- ------- ------- ------- Net asset value, end of period................... $ 23.98 $ 22.53 $ 20.22 $ 20.71 $ 16.83 ======= ======= ======= ======= ======= Total investment return(1)................ 15.08% 11.58% 2.67% 27.26% (0.52)% ======= ======= ======= ======= ======= Ratios/Supplemental Data: Net assets, end of period (000's).................. $21,627 $20,948 $30,521 $20,706 $11,581 Ratio of expenses to average net assets....... 0.86%* 0.97%(2) 0.94% 0.95% 1.12% Ratio of net investment income (loss) to average net assets............... (0.02)%* 0.53%(2) 0.40% 0.60% 0.38% Portfolio turnover........ 42% 36% 24% 36% 32% Average commission rate paid per share of common stock investments purchased/sold(3)........ $0.0595 -- -- -- --
- ------- * Annualized ++ A per share breakdown for Class Y shares (formerly Class C) has been omitted for the period August 26, 1991 (commencement of operations) to August 31, 1991 due to immaterial amounts. (1) Total investment return is calculated assuming a $1,000 investment on the first day of each period reported, reinvestment of all dividends and capital gain distributions at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total return information for period less than one year is not annualized. (2) These ratios include non-recurring acquisition expenses of 0.06%. (3) Disclosure effective for fiscal years beginning on or after September 1, 1995. 32 -----END PRIVACY-ENHANCED MESSAGE-----