Pace Select Advisors Trust (PREEF) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-08764
PACE® Select Advisors Trust
(Exact name of registrant as specified in charter)
1285 Avenue of the Americas, New York, New York					10019-6028
(Address of principal executive offices)					(Zip code)
Mark F. Kemper, Esq. UBS Global Asset Management 1285 Avenue of the Americas New York, NY 10019-6028
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq. Dechert LLP 1775 I Street, N.W. Washington, DC 20006-2401
Registrant’s telephone number, including area code:				212-821 3000
Date of fiscal year end:	July 31
Date of reporting period:		July 31, 2011

Item 1.  Reports to Stockholders.

PACE Select

Annual Report

PACE® Select Advisors Trust

Annual Report

July 31, 2011

PACE® Select Advisors Trust

Table of contents
Introduction	2
Portfolio Advisor's and Sub-Advisors' commentaries and schedules of investments
PACE® Money Market Investments	5
PACE® Government Securities Fixed Income Investments	13
PACE® Intermediate Fixed Income Investments	25
PACE® Strategic Fixed Income Investments	40
PACE® Municipal Fixed Income Investments	60
PACE® International Fixed Income Investments (formerly UBS PACE® Global Fixed Income Investments)	72
PACE® High Yield Investments	84
PACE® Large Co Value Equity Investments	99
PACE® Large Co Growth Equity Investments	108
PACE® Small/Medium Co Value Equity Investments	120
PACE® Small/Medium Co Growth Equity Investments	130
PACE® International Equity Investments	141
PACE® International Emerging Markets Equity Investments	155
PACE® Global Real Estate Securities Investments	168
PACE® Alternative Strategies Investments	177
Understanding your Portfolio's expenses	228
Statement of assets and liabilities	234
Statement of operations	242
Statement of changes in net assets	246
Financial highlights	253
Notes to financial statements	306
Report of independent registered public accounting firm	347
Tax information	348
General information	349
Board approvals of sub-advisory agreements	350
Trustees and officers	366

PACE Select Advisors Trust offers multiple share classes representing interests in 15 separate Portfolios. (PACE Money Market Investments offers only one share class.) Different classes of shares and/or Portfolios are offered by separate prospectuses.

For more information on a portfolio or class of shares, contact your financial advisor. He or she can send you a current prospectus relating to a portfolio or class of shares. Investors should carefully read and consider a mutual fund's investment objectives, risks, charges, and expenses before investing. The prospectus contains this and other information about a mutual fund. For a current prospectus, contact UBS Global Asset Management (Americas) Inc. at 888-793 8637, or visit us on the Web at www.ubs.com/globalam-us.

Derivatives vary in complexity, involve risks which are different from, and may be greater than, the risks associated with investing in securities or other instruments. Please see the funds' prospectuses for more complete discussion of the risks associated with investing in derivatives.

1

PACE Select Advisors Trust

Introduction

September 16, 2011

Dear PACE Shareholder,

We are pleased to provide you with the annual report for the PACE portfolios (the "Portfolios"), comprising the PACE Select Advisors Trust. This report includes summaries of the performance of each Portfolio, as well as commentaries from the investment advisor and sub-advisors regarding the events that affected Portfolio performance during the 12 months ended July 31, 2011. Please note that the opinions of the sub-advisors do not necessarily represent those of UBS Global Asset Management (Americas) Inc.

Decelerating Growth in Developed Countries

The US and many developed countries abroad experienced decelerating economic growth during the reporting period. Oil and food prices moved higher during this time, which had a negative impact on consumer spending. In addition, supply disruptions following the devastating earthquake and tsunami in Japan in March led to moderating growth in the manufacturing sector. In the US, gross domestic product ("GDP") growth was 2.5% and 2.3% during the third and fourth quarters of 2010, followed by first and second quarter 2011 GDP growth of 0.4% and 1.0%, respectively.

In contrast to their developed country counterparts, growth in most emerging market economies, such as China and India, remained robust. Against a backdrop of higher inflation, several emerging market central banks raised their interest rates and took other actions in an effort to cool growth and stem rising prices. By the end of the period, commodity prices had declined from their peaks and inflationary pressures appeared to have eased.

Global equities produce strong returns

While the global equity markets gave back a portion of their earlier gains late in the reporting period, overall they generated strong results. Expectations for strengthening growth, corporate profits that were often better than expected and robust demand supported the US stock market during the first nine months of the period. However, risk appetite was later replaced with increased risk aversion as a result of the European sovereign debt crisis, fears that the US may default on its debt obligations and overall disappointing economic data. Despite weakening stock prices during the last three months of the period, the US stock market, as measured by the S&P 500 Index,¹ returned 19.65% during the 12-months ended July 31, 2011.

International developed equities (as measured by the MSCI EAFE Index (net)²) proved resilient as well, gaining 17.17% during the reporting period. However, they experienced heightened volatility, at times, in light of fears that the European debt crisis may escalate. Emerging markets equities (as measured by the MSCI Emerging Markets Index³) also posted strong returns, gaining 17.79% over the period. Continued robust growth in developing countries and higher commodity prices supported emerging markets equities.

¹  The S&P 500 Index is an unmanaged, weighted index composed of 500 widely held common stocks varying in composition, and is not available for direct investment. Investors should note that indices do not reflect the deduction of fees and expenses.

²  The MSCI EAFE Index (net) is an index of stocks from 22 countries designed to measure the investment returns of developed economies outside of North America. Dividends are reinvested after the deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. The Index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

³  The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 21 emerging market countries in Europe, Latin America, and the Pacific Basin. The Index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

2

PACE Select Advisors Trust

Riskier fixed income securities outperform

There was also a meaningful shift in investor sentiment in the fixed income market during the reporting period. This, in turn, impacted the performance of the spread sectors (non-Treasuries). During much of the period, there were hopes for improving economic conditions, coupled with sharply rising oil and commodity prices. Despite hostilities in the Middle East and Northern Africa, the natural disaster in Japan and the European sovereign debt crisis, most spread sectors outperformed Treasuries and yields moved higher. Nonetheless, it was a different story during the last three months of the period. High oil prices hurt consumer spending, and economic data pointed to a soft patch in many developed countries. Against this backdrop, Treasury yields declined and nearly every spread sector lagged Treasuries. All told, during the 12 months ended July 31, 2011, the spread sectors typically outperformed Treasuries and the overall US bond market, as measured by the Barclays Capital US Aggregate Index,⁴ returned 4.44%.

Despite increased volatility and periodic flights to quality, riskier fixed income asset classes generated solid gains during the reporting period, as the BofA Merrill Lynch US High Yield Cash Pay Constrained Index⁵ returned 12.74% and the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global)⁶ rose 9.41%.

Sincerely,

Mark E. Carver
President, PACE Select Advisors Trust
Managing Director, UBS Global Asset Management (Americas) Inc.

⁴  The Barclays Capital US Aggregate Index is an unmanaged broad based index designed to measure the US- dollar-denominated, investment-grade, fixed rate taxable bond market. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed, asset-backed and commercial mortgage-backed sectors. US agency hybrid adjustable rate mortgage (ARM) securities were added to the Index on April 1, 2007. Investors should note that indices do not reflect the deduction of fees and expenses.

⁵  The BofA Merrill Lynch US High Yield Cash Pay Constrained Index is an unmanaged index of publicly placed non-convertible, coupon-bearing US-dollar-denominated below investment grade corporate debt with a term to maturity of at least one year. The index is market weighted, so that larger bond issuers have a greater effect on the index's return. However, the representation of any single bond issue is restricted to a maximum of 2% of the total index. Investors should note that indices do not reflect the deduction of fees and expenses.

⁶  The J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) is an unmanaged index which is designed to track total returns for US-dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans and Eurobonds. Investors should note that indices do not reflect the deduction of fees and expenses.

3

PACE Select Advisors Trust

This report is intended to assist investors in understanding how the Portfolios performed during the 12-month period ended July 31, 2011. The views expressed in the Advisor's and Sub-Advisors' Comments sections are as of the end of the reporting period, reflect performance results gross of fees and expenses, and are those of the investment advisor (with respect to PACE Money Market Investments only) and sub-advisors. Sub-advisors' comments on Portfolios that have more than one sub-advisor are reflective of their portion of the Portfolio only. The views and opinions in this report were current as of September 16, 2011. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the investment advisor and sub-advisors reserve the right to change their views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of a Portfolio's future investment intent.

4

PACE Select Advisors Trust

PACE Money Market Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio returned 0.01%, before the deduction of the maximum PACE program fee. (The Portfolio declined 1.97%, after the deduction of the maximum PACE program fee, for the same 12-month period.) Please remember that the PACE program fee is assessed outside the Portfolio at the PACE program account level. The program fee does not impact the determination of the Portfolio's net asset value per share. For comparison purposes, the median return of the Lipper Money Market Funds category was 0.01%. (Returns over various time periods are shown in the "Performance at a glance" table on page 7. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Advisor's comments

The economic recovery continued during the reporting period, although growth moderated as the period progressed. Elevated unemployment, housing market weakness, higher oil prices and supply disruptions following the devastating earthquake in Japan caused economic growth to decelerate. Against this backdrop, the Federal Reserve Board (the "Fed") maintained the federal funds rate at a historically low range between 0% and 0.25% during the reporting period. (The federal funds rate, or "fed funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) As a result, the yields of the securities in which the Portfolio invests remained extremely low, which impacted the Portfolio's yield.

We tactically adjusted the Portfolio's weighted average maturity (WAM)—which is the average duration of the securities in the Portfolio—but generally kept it in a fairly narrow range. When the reporting period began, the Portfolio had a WAM of 46 days. As of July 31, 2011, the Fund's WAM was 47 days.

At the issuer level, we maintained a greater-than-usual level of diversification over the 12-month period by investing in smaller positions, with the goal of reducing risk and keeping the Portfolio highly liquid. As the economic recovery continued over the period, we slightly increased the size of our positions in single issuers, typically purchasing up to 3% in single nongovernment issuers by the end of the reporting period. (The Portfolio is generally able to hold up to 5% in any one issuer, subject to certain exceptions.)

In terms of securities, over the 12-month period we increased the Portfolio's exposure to repurchase agreements and, to lesser extents, its allocation to commercial paper and a US bank note. In contrast, we decreased the Portfolio's exposure to US government and agency obligations, CDs and short-term corporate obligations. (Repurchase agreements are transactions in which the seller of a security agrees to buy it back at a predetermined time and price, or upon demand.)

PACE Select Advisors Trust – PACE Money Market Investments

Investment Advisor:

UBS Global Asset Management (Americas) Inc.

Portfolio Manager:

Robert Sabatino

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, although it may be possible to lose money by investing in this Portfolio. 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.

5

PACE Select Advisors Trust

PACE Money Market Investments

Advisor's comments – concluded

One final note, in response to revisions to the US Securities and Exchange Commission's ("SEC") rules governing money market funds, beginning on October 7, 2010, the Portfolio began disclosing, on a monthly basis: (a) a complete schedule of its portfolio holdings; and (b) information regarding its weighted average maturity and weighted average life. Also, beginning in February 2011, the Portfolio began including a link on UBS's Web site to more detailed Portfolio information appearing in filings with the SEC on Form N-MFP. This information is available on UBS's Web site at the following Internet address: www.ubs.com/usmoneymarketfundsholdings. This information will be updated monthly.

6

PACE Select Advisors Trust

PACE Money Market Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11	1 year			5 years			10 years
PACE Money Market Investments before deducting maximum PACE program fee1		0.01	%		1.80	%		1.82	%
PACE Money Market Investments after deducting maximum PACE program fee1		(1.97	)%		(0.22	)%		(0.20	)%
Lipper Money Market Funds median		0.01	%		1.79	%		1.74	%

For PACE Money Market Investments, average annual total returns for periods ended June 30, 2011, after deduction of the maximum PACE program fee, were as follows: 1-year period, (1.97)%; 5-year period, (0.14)%; 10-year period, (0.16)%.

For PACE Money Market Investments, the 7-day current yield for the period ended July 31, 2011 was 0.01% (without maximum PACE program fee and after fee waivers and/or expense reimbursements; the yield was (0.96)% before fee waivers and/or expense reimbursements). With the maximum PACE program fee, the 7-day current yield was (1.99)% after fee waivers and/or expense reimbursements; the yield was (2.96)% before fee waivers and/or expense reimbursements. The Portfolio's yield quotation more closely reflects the current earnings of the Portfolio than the total return quotation. Yields will fluctuate and reflect fee waivers and/or expense reimbursements.

¹  The maximum annual PACE program fee is 2% of the value of PACE assets. Prior to June 14, 2010, the maximum annual PACE program fee was 1.5% of the value of PACE assets; however, the current maximum annual PACE program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns shown above.

Past performance does not predict future performance and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions. The return of an investment will fluctuate. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the payable dates. Current performance may be higher or lower than the performance data quoted.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

An investment in PACE Money Market Investments is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Portfolio.

Not FDIC Insured. May lose value. No Bank guarantee.

7

PACE Select Advisors Trust

PACE Money Market Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	365.8
Number of holdings		91
Weighted average maturity		47 days
Portfolio composition1	07/31/11
Commercial paper		41.2	%
Repurchase agreements		21.3
US government and agency obligations		19.7
Certificates of deposit		12.4
Short-term corporate obligations		1.5
Bank note		0.8
Other assets less liabilities		3.1
Total		100.0	%
Top 10 holdings1	07/31/11
Repurchase agreement with Deutsche Bank Securities, 0.180% due 08/01/11		15.8	%
Repurchase agreement with Barclays Bank PLC, 0.140% due 08/01/11		5.5
US Treasury Notes, 0.750% due 05/31/12		2.5
General Electric Co., 0.100% due 08/05/11		1.9
Market Street Funding LLC, 0.150% due 08/01/11		1.6
Atlantic Asset Securitization LLC, 0.160% due 08/05/11		1.6
Bank of Nova Scotia, 0.180% due 10/03/11		1.4
Amsterdam Funding Corp., 0.180% due 08/01/11		1.4
Barclays US Funding Corp., 0.130% due 08/01/11		1.4
Deutsche Bank Financial LLC, 0.100% due 08/01/11		1.4
Total		34.5	%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

8

PACE Select Advisors Trust

PACE Money Market Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
US government and agency obligations—19.71%
Federal Farm Credit Bank 0.230%, due 11/08/111	$	3,000,000	$	2,998,102
Federal Home Loan Bank 0.165%, due 08/01/112		3,000,000		3,000,000
0.280%, due 08/07/112		3,000,000		3,000,000
0.040%, due 08/09/111		5,000,000		4,999,956
0.300%, due 09/15/112		3,000,000		3,000,000
0.270%, due 09/30/112		4,500,000		4,500,000
0.280%, due 10/12/112		3,500,000		3,500,000
0.270%, due 02/17/121		3,000,000		2,995,500
Federal Home Loan Mortgage Corp.* 0.135%, due 08/06/112		3,000,000		2,997,855
0.230%, due 08/23/111		5,000,000		4,999,297
Federal National Mortgage Association* 0.290%, due 08/08/111		2,000,000		1,999,887
0.210%, due 09/01/111		4,000,000		3,999,277
US Treasury Bills 0.155%, due 09/22/111		5,000,000		4,998,881
0.040%, due 10/27/111		3,000,000		2,999,709
0.250%, due 03/08/121		2,000,000		1,996,944
US Treasury Notes 1.000%, due 12/31/11		2,000,000		2,006,341
0.875%, due 02/29/12		3,000,000		3,008,922
1.000%, due 04/30/12		3,000,000		3,014,055
0.750%, due 05/31/12		9,000,000		9,039,324
1.875%, due 06/15/12		3,000,000		3,043,317
Total US government and agency obligations (cost—$72,097,367)				72,097,367
Bank note—0.82%
Banking-US—0.82%
Bank of America N.A. 0.120%, due 08/24/11 (cost—$3,000,000)		3,000,000		3,000,000
Certificates of deposit—12.37%
Banking-non-US—12.37%
Abbey National Treasury Services PLC 0.700%, due 10/17/112		3,500,000		3,500,000
0.450%, due 10/18/112		1,500,000		1,500,000
Bank of Nova Scotia 0.190%, due 08/01/112		1,500,000		1,500,000
0.190%, due 08/03/11		3,000,000		3,000,000
0.180%, due 10/03/11		5,000,000		5,000,000
BNP Paribas SA 0.399%, due 10/17/112		1,750,000		1,750,000
Dnb NOR ASA 0.240%, due 12/28/11		2,000,000		2,000,000
Lloyds TSB Bank PLC 0.500%, due 10/19/112		3,500,000		3,500,000
Mitsubishi UFJ Trust & Banking Corp. 0.220%, due 08/16/11		3,000,000		3,000,000

	Face amount		Value
Certificates of deposit—(Concluded)
Banking-non-US—(Concluded)
National Australia Bank Ltd. 0.269%, due 10/14/112	$	1,000,000	$	1,000,000
0.270%, due 10/19/112		750,000		749,966
Natixis 0.366%, due 10/13/112		1,000,000		1,000,000
Nordea Bank Finland 0.400%, due 06/12/12		2,500,000		2,500,000
Rabobank Nederland N.V. 0.267%, due 08/18/112		1,000,000		1,000,000
Royal Bank of Canada 0.260%, due 08/01/112		1,500,000		1,500,000
0.275%, due 08/01/112		1,500,000		1,500,000
0.260%, due 01/11/12		3,000,000		3,000,000
Royal Bank of Scotland PLC 0.553%, due 10/25/112		3,500,000		3,500,000
Toronto-Dominion Bank 0.105%, due 08/08/11		3,000,000		3,000,000
Westpac Banking Corp. 0.270%, due 08/01/112		1,750,000		1,750,000
Total certificates of deposit (cost—$45,249,966)				45,249,966
Commercial paper1—41.24%
Asset backed-banking—1.91%
Atlantis One Funding 0.200%, due 08/01/11		4,000,000		4,000,000
0.160%, due 09/13/11		3,000,000		2,999,427
				6,999,427
Asset backed-miscellaneous—15.05%
Amsterdam Funding Corp. 0.180%, due 08/01/11		5,000,000		5,000,000
Atlantic Asset Securitization LLC 0.160%, due 08/05/11		6,000,000		5,999,893
Barton Capital LLC 0.150%, due 08/02/11		3,000,000		2,999,988
Gotham Funding Corp. 0.160%, due 08/05/11		2,000,000		1,999,964
0.160%, due 08/08/11		3,000,000		2,999,907
LMA Americas LLC 0.200%, due 08/22/11		3,000,000		2,999,650
Market Street Funding LLC 0.150%, due 08/01/11		6,000,000		6,000,000
Regency Markets No. 1 LLC 0.150%, due 08/15/11		5,000,000		4,999,708
0.150%, due 08/16/11		3,000,000		2,999,813
Salisbury Receivables Co. LLC 0.140%, due 08/25/11		5,000,000		4,999,533
Thunderbay Funding 0.170%, due 09/13/11		5,000,000		4,998,985
Windmill Funding Corp. 0.140%, due 08/04/11		3,000,000		2,999,965
0.140%, due 08/09/11		3,000,000		2,999,907
0.140%, due 08/10/11		3,050,000		3,049,893
				55,047,206

9

PACE Select Advisors Trust

PACE Money Market Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Commercial paper1—(Continued)
Asset backed-securities—1.09%
Argento Variable Funding Co. LLC 0.180%, due 08/23/11	$	3,000,000	$	2,999,670
Grampian Funding LLC 0.210%, due 09/15/11		1,000,000		999,737
				3,999,407
Banking-non-US—6.90%
Commonwealth Bank of Australia 0.265%, due 08/08/112,3		1,000,000		999,981
0.180%, due 10/11/11		3,000,000		2,998,935
Credit Suisse 0.190%, due 08/17/11		3,000,000		2,999,747
0.190%, due 10/12/11		1,000,000		999,620
Dnb NOR ASA 0.130%, due 08/05/11		5,000,000		4,999,928
Kreditanstalt für Wiederaufbau 0.140%, due 09/08/11		3,000,000		2,999,557
Sumitomo Mitsui Banking Corp. 0.180%, due 08/08/11		3,000,000		2,999,895
Svenska Handelsbanken, Inc. 0.250%, due 12/14/11		5,000,000		4,995,312
Westpac Securities NZ Ltd. 0.284%, due 09/01/112,3		1,250,000		1,250,000
				25,242,975
Banking-US—10.82%
Barclays US Funding Corp. 0.130%, due 08/01/11		5,000,000		5,000,000
0.210%, due 08/17/11		5,000,000		4,999,533
Deutsche Bank Financial LLC 0.100%, due 08/01/11		5,000,000		5,000,000
0.200%, due 10/03/11		3,000,000		2,998,950
ING (US) Funding LLC 0.240%, due 08/05/11		3,000,000		2,999,920
0.160%, due 08/09/11		3,000,000		2,999,893
0.360%, due 11/03/11		3,000,000		2,997,180
JPMorgan Chase & Co. 0.150%, due 09/07/11		3,000,000		2,999,538
Natixis US Finance Co. LLC 0.250%, due 09/12/11		3,000,000		2,999,125
Nordea N.A., Inc. 0.230%, due 12/07/11		2,000,000		1,998,364
Societe Generale N.A., Inc. 0.210%, due 08/01/11		1,575,000		1,575,000
State Street Bank & Trust Co. 0.150%, due 10/13/11		3,000,000		2,999,088
				39,566,591

	Face amount		Value
Commercial paper1—(Concluded)
Diversified manufacturing—1.91%
General Electric Co. 0.100%, due 08/05/11	$	7,000,000	$	6,999,922
Finance-captive automotive—1.37%
Toyota Motor Credit Corp. 0.160%, due 08/10/11		5,000,000		4,999,800
Insurance-life—2.19%
Axa Financial, Inc. 0.160%, due 08/11/11		3,000,000		2,999,867
MetLife Short Term Funding LLC 0.140%, due 08/01/11		2,000,000		2,000,000
0.150%, due 09/14/11		3,000,000		2,999,450
				7,999,317
Total commercial paper (cost—$150,854,645)				150,854,645
Short-term corporate obligations—1.50%
Banking-non-US—1.09%
Svenska Handelsbanken, Inc. 0.292%, due 09/08/112,3		2,500,000		2,500,000
Westpac Securities NZ Ltd. 0.355%, due 08/04/112,3		1,500,000		1,500,000
				4,000,000
Banking-US—0.41%
JPMorgan Chase Bank N.A. 0.275%, due 09/09/112		1,500,000		1,500,000
Total short-term corporate obligations (cost—$5,500,000)				5,500,000
Repurchase agreements—21.34%
Repurchase agreement dated 07/29/11 with Barclays Bank PLC, 0.140% due 08/01/11, collateralized by $8,824,000 Federal Farm Credit Bank obligations, 1.875% due 12/07/12 and $11,396,000 Federal National Mortgage Association obligations, zero coupon due 05/01/12; (value—$20,400,564); proceeds: $20,000,233		20,000,000		20,000,000
Repurchase agreement dated 07/29/11 with Deutsche Bank Securities, 0.180% due 08/01/11, collateralized by $59,100,000 Federal Home Loan Bank obligations, 0.320% due 12/09/11; (value—$59,162,318); proceeds: $58,000,870		58,000,000		58,000,000

10

PACE Select Advisors Trust

PACE Money Market Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Repurchase agreements—(Concluded)
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $370 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12 and $81,406 US Treasury Bills, zero coupon due 08/04/11 to 07/26/12; (value—$81,632); proceeds: $80,000	$	80,000	$	80,000
Total repurchase agreements (cost—$78,080,000)				78,080,000
Total investments (cost—$354,781,978, which approximates cost for federal income tax purposes)—96.98%				354,781,978
Other assets in excess of liabilities—3.02%				11,061,651
Net assets (applicable to 365,845,932 shares of beneficial interest outstanding equivalent to $1.00 per share)—100.00%			$	365,843,629

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

¹  Rates shown are the discount rates at date of purchase.

²  Variable or floating rate security. The interest rate shown is the current rate as of July 31, 2011 and changes periodically. The maturity date reflects earlier of reset date or stated maturity date.

³  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 1.71% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

Affiliated issuer activity

The table below details the Portfolio's transaction activity in an affiliated issuer during the year ended July 31, 2011.

The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	—	$	5,865,000	$	5,865,000	$	—	$	24

11

PACE Select Advisors Trust

PACE Money Market Investments

Portfolio of investments—July 31, 2011

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
US government and agency obligations	$	—	$	72,097,367	$	—	$	72,097,367
Bank note		—		3,000,000		—		3,000,000
Certificates of deposit		—		45,249,966		—		45,249,966
Commercial paper		—		150,854,645		—		150,854,645
Short-term corporate obligations		—		5,500,000		—		5,500,000
Repurchase agreements		—		78,080,000		—		78,080,000
Total	$	—	$	354,781,978	$	—	$	354,781,978

Issuer breakdown by country of origin (unaudited)

	Percentage of total investments
United States		76.8	%
Canada		5.2
United Kingdom		4.2
Japan		3.1
Australia		2.9
Sweden		2.1
Norway		2.0
Switzerland		1.1
Germany		0.8
France		0.8
Finland		0.7
Netherlands		0.3
Total		100.0	%

Weighted average maturity—47 days

See accompanying notes to financial statements.
12

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 4.08%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 2.02%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Barclays Capital US Mortgage-Backed Securities Index (the "benchmark") returned 3.85%, and the Lipper US Mortgage Funds category posted a median return of 4.03%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 16. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisor's comments¹

The Portfolio outperformed its benchmark during the reporting period, helped by an emphasis on attractively priced, high-quality assets. Tactical security selection among agency mortgage backed securities ("MBS") was positive for performance. This included an underweight to higher coupon securities in the first half of the period, as these were the most adversely impacted by refinancing concerns. Detractors from relative performance included a modest underweight to Ginnie Mae MBS in the second half of the period, as these securities outperformed conventional (Fannie Mae and Freddie Mac) MBS due to strong demand from banks and international investors.

Exposure to senior non-agency MBS benefited the Portfolio, as the sector remained resilient amid negative foreclosure headlines, and gained from limited supply in conjunction with strong investor demand for higher yielding assets. However, this benefit was mitigated by the sector's underperformance in the latter stages of the period, amid further signs of slowing economic growth. An allocation to commercial mortgage-backed securities ("CMBS") in the beginning of the reporting period also benefited the Portfolio, as spreads in this sector tightened given continued demand for higher yielding assets. (Spread measures the difference in yield between a fixed income security and a government bond of similar duration.)

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

PACE Select Advisors Trust – PACE Government Securities Fixed Income Investments

Investment Sub-Advisor:

Pacific Investment Management Company LLC ("PIMCO")

Portfolio Manager:

W. Scott Simon

Objective:

Current income

Investment process:

The Portfolio invests primarily in government fixed income securities which include US bonds, including those backed by mortgages, and related repurchase agreements. Mortgage-backed securities include "to be announced" or "TBA" securities which usually are traded on a forward commitment basis with an approximate principal amount and no defined maturity date; issued or guaranteed by US government agencies and instrumentalities. The Portfolio also invests, to a lesser extent, in investment grade bonds of private issuers, including those backed by mortgages or other assets. The Portfolio may invest in bonds of varying maturities, but normally limits its duration to within two years (plus or minus) of the effective duration of the Portfolio's benchmark index. (Duration is a measure of a portfolio's sensitivity to interest rate changes.) The Portfolio may engage in short selling with respect to securities issued by the US Treasury and certain TBA securities coupon trades. PIMCO establishes duration targets based on its expectations for changes in interest rates, and then positions the Portfolio to take advantage of yield curve shifts. PIMCO decides to buy and sell specific bonds based on an analysis of their values relative to other similar securities.

13

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Sub-Advisor's comments – concluded

Duration positioning, including a shorter-than-benchmark duration in the latter half of the period as rates fell, was negative for relative performance. (Duration measures a portfolio's sensitivity to interest rate changes.)

A number of derivative instruments were used during the reporting period. Interest rate swaps were used to adjust interest rate and yield curve exposures, as well as to substitute for physical securities. Credit default swaps were used to manage credit exposure in lieu of the direct buying or selling of securities. Options were primarily used to manage interest rate and volatility exposures, but they were also used to generate income in expected interest rate scenarios. Mortgage derivatives were used to manage portfolio duration or enhance yield, while government futures were used to adjust interest rate exposures and replicate government bond positions. Overall, the use of these derivatives was beneficial during the reporting period.

Special considerations

The Portfolio may be appropriate for long-term investors seeking current income who are able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The yield and value of the Portfolio change every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers in which the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.

14

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Government Securities Fixed Income Investments Class P shares versus the Barclays Capital US Mortgage-Backed Securities Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. 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 illustration purposes only.

15

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		3.74	%		6.53	%		5.14	%
maximum sales charge	Class B2		3.03	%		5.73	%		4.65	%6
or PACE Select	Class C3		3.22	%		5.99	%		4.60	%
program fee	Class Y4		4.00	%		6.81	%		5.44	%
	Class P5		4.08	%		6.80	%		5.40	%
After deducting	Class A1		(0.96	)%		5.55	%		4.65	%
maximum sales charge	Class B2		(1.83	)%		5.40	%		4.65	%6
or PACE Select	Class C3		2.49	%		5.99	%		4.60	%
program fee	Class P5		2.02	%		4.68	%		3.31	%
Barclays Capital US Mortgage-Backed Securities Index7			3.85	%		6.85	%		5.71	%
Lipper US Mortgage Funds median			4.03	%		5.90	%		4.83	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, (0.69)%; 5-year period, 5.69%; 10-year period, 4.80%; Class B—1-year period, (1.67)%; 5-year period, 5.55%; 10-year period, 4.80%; Class C—1-year period, 2.74%; 5-year period, 6.12%; 10-year period, 4.74%; Class Y—1-year period, 4.24%; 5-year period, 6.95%; 10-year period, 5.59%; Class P—1-year period, 2.18%; 5-year period, 4.82%; 10-year period, 3.44%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.08% and 1.02%; Class B—1.91% and 1.77%; Class C—1.61% and 1.52%; Class Y—0.89% and 0.77%; and Class P—0.88% and 0.77%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to (1) waive its management fees through November 28, 2011 to the extent necessary to reflect the lower sub-advisory fee paid by UBS Global AM to Pacific Investment Management Company LLC, the Portfolio's investment advisor; and (2) waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.02%; Class B—1.77%; Class C—1.52%; Class Y—0.77%; and Class P—0.77%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses (pursuant to item (2)) to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The Barclays Capital US Mortgage-Backed Securities Index is an unmanaged index which primarily covers agency mortgage-backed pass-through securities issued by Ginnie Mae (formally known as Government National Mortgage Association or GNMA), Freddie Mac (formally known as Federal Home Loan Mortgage Corporation or FHLMC), and Fannie Mae (formally known as Federal National Mortgage Association or FNMA). Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

16

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Weighted average duration		3.0 yrs.
Weighted average maturity		3.5 yrs.
Average coupon		3.57	%
Average quality1		AAA
Net assets (mm)	$	607.6
Number of holdings		390
Portfolio composition2	07/31/11
Bonds		152.1	%
Investments sold short		(43.6	)
Cash equivalents and other assets less liabilities		(8.5	)
Total		100.0	%
Asset allocation2	07/31/11
US government agency mortgage pass-through certificates		134.5	%
Collateralized mortgage obligations		13.8
Asset-backed securities		2.7
Stripped mortgage-backed securities		1.1
Investments sold short		(43.6	)
Cash equivalents and other assets less liabilities		(8.5	)
Total		100.0	%

¹  Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

²  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

17

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Government national mortgage association certificates—30.99%
GNMA 3.500%, due 11/15/401	$	874,410	$	869,105
3.500%, due 12/15/401		41,087,457		40,838,187
3.500%, due 01/15/411		20,311,342		20,188,118
3.500%, due 02/15/411		11,697,665		11,626,698
4.500%, due 06/15/391		914,957		979,134
4.500%, due 08/15/391		1,575,184		1,685,056
4.500%, due 09/15/391		2,786,768		2,981,586
4.500%, due 02/15/401		1,505,281		1,606,985
4.500%, due 03/15/401		691,695		738,429
4.500%, due 04/15/401		1,713,063		1,828,805
4.500%, due 05/15/401		3,533,268		3,771,991
5.500%, due 06/15/37		40,192		44,515
5.500%, due 07/15/37		96,013		106,341
5.500%, due 12/15/37		59,611		66,023
5.500%, due 02/15/38		24,031		26,619
5.500%, due 07/15/38		105,771		117,116
5.500%, due 08/15/38		49,105		54,372
5.500%, due 10/15/38		4,496,246		4,979,088
5.500%, due 12/15/38		84,878		93,991
5.500%, due 03/15/39		821,797		909,941
5.500%, due 04/15/39		32,466		35,949
5.500%, due 05/15/39		716,316		793,164
5.500%, due 09/15/39		3,276,166		3,627,730
5.500%, due 12/15/39		802,262		888,311
5.500%, due 01/15/40		19,627		21,732
5.500%, due 02/15/40		270,422		299,427
5.500%, due 03/15/40		482,485		534,235
5.500%, due 04/15/40		26,998		30,003
5.500%, due 05/15/40		113,207		125,350
5.500%, due 06/15/40		735,123		813,971
6.000%, due 10/15/31		3,483		3,913
6.000%, due 03/15/34		3,734		4,190
6.000%, due 08/15/34		6,303		7,073
6.000%, due 07/15/36		131,775		148,499
6.500%, due 02/15/29		2,375		2,725
6.500%, due 11/15/34		17,847		20,204
6.500%, due 01/15/36		37,325		42,253
6.500%, due 03/15/36		2,087		2,359
6.500%, due 09/15/36		909,864		1,028,233
6.500%, due 02/15/37		43,889		49,533
6.500%, due 04/15/37		26,955		30,421
6.500%, due 01/15/38		18,632		21,045
6.500%, due 06/15/38		170,193		192,570
6.500%, due 07/15/38		76,102		85,769
6.500%, due 08/15/38		4,023		4,534
6.500%, due 10/15/38		384,667		433,530
6.500%, due 11/15/38		38,493		43,383
6.500%, due 01/15/39		12,619		14,240
7.500%, due 08/15/21		5,909		6,892
7.500%, due 09/15/23		941		1,099
8.000%, due 02/15/23		1,386		1,634
8.250%, due 04/15/19		363,561		413,073
10.500%, due 02/15/19		27,392		27,699
10.500%, due 06/15/19		33,452		38,468

	Face amount		Value
Government national mortgage association certificates—(Continued)
10.500%, due 07/15/19	$	68,437	$	75,606
10.500%, due 07/15/20		3,375		3,457
10.500%, due 08/15/20		30,103		33,342
10.500%, due 09/15/20		3,315		3,820
11.500%, due 05/15/19		3,080		3,590
GNMA II 3.500%, due 01/20/411		8,000,793		7,952,254
4.500%, due 08/20/40		475,387		506,541
9.000%, due 04/20/25		22,568		27,168
9.000%, due 12/20/26		4,167		5,019
9.000%, due 01/20/27		12,590		15,177
9.000%, due 06/20/30		1,517		1,611
9.000%, due 09/20/30		1,290		1,376
9.000%, due 10/20/30		8,384		10,201
9.000%, due 11/20/30		5,799		7,056
GNMA II ARM 2.250%, due 02/20/28		3,940		4,072
2.375%, due 01/20/23		104,348		107,973
2.375%, due 03/20/23		52,182		53,995
2.375%, due 01/20/24		131,663		136,238
2.375%, due 01/20/25		12,485		12,918
2.375%, due 02/20/25		35,875		37,121
2.375%, due 03/20/26		26,935		27,870
2.375%, due 01/20/27		170,939		176,878
2.375%, due 02/20/27		18,037		18,663
2.375%, due 01/20/28		19,268		19,937
2.375%, due 02/20/28		11,279		11,671
2.500%, due 11/20/21		29,786		30,784
2.500%, due 03/20/25		44,227		45,819
2.500%, due 10/20/30		29,962		30,966
2.625%, due 07/20/17		7,377		7,669
2.625%, due 09/20/21		150,940		156,921
2.625%, due 08/20/25		34,527		35,894
2.625%, due 09/20/25		41,554		43,200
2.625%, due 08/20/26		48,411		50,329
2.625%, due 09/20/26		7,183		7,468
2.625%, due 07/20/27		18,013		18,727
2.625%, due 08/20/27		46,322		48,157
2.625%, due 07/20/30		223,095		231,934
2.625%, due 08/20/30		175,310		182,257
3.375%, due 04/20/18		12,561		13,028
3.375%, due 06/20/22		135,002		140,014
3.375%, due 04/20/24		151,369		156,988
3.375%, due 05/20/25		108,305		112,708
3.375%, due 06/20/25		26,018		26,984
3.375%, due 04/20/26		242,619		251,625
3.375%, due 06/20/26		104,680		108,564
3.375%, due 04/20/27		61,346		63,623
3.375%, due 04/20/30		42,383		43,956
3.375%, due 05/20/30		855,057		886,797
3.500%, due 03/20/25		22,615		23,542
4.000%, due 01/20/18		138,227		144,101
4.000%, due 05/20/18		6,392		6,698
4.000%, due 06/20/19		15,439		16,180
4.500%, due 06/20/19		24,213		25,435

18

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Government national mortgage association certificates—(Concluded)
GNMA TBA 4.000%, TBA	$	45,925,000	$	47,474,969
5.000%, TBA		11,000,000		11,984,843
6.000%, TBA		11,000,000		12,268,438
6.500%, TBA		1,000,000		1,126,250
Total government national mortgage association certificates (cost—$184,429,445)				188,323,733
Federal home loan mortgage corporation certificates*—24.55%
FHLMC 5.000%, due 10/01/29		1,851,276		1,986,857
5.000%, due 06/01/34		87,854		94,210
5.000%, due 11/01/40		683,679		730,262
5.500%, due 02/01/33		739,682		807,953
5.500%, due 12/01/33		365,264		398,978
5.500%, due 12/01/34		381,901		417,150
5.500%, due 06/01/35		3,778,544		4,127,301
5.500%, due 06/01/36		3,924,551		4,286,784
5.500%, due 03/01/37		699,221		761,355
5.500%, due 04/01/37		825,321		896,339
5.500%, due 10/01/37		66,975		72,739
5.500%, due 11/01/37		1,898,526		2,061,892
5.500%, due 12/01/38		29,623		32,256
6.000%, due 11/01/37		16,528,242		18,239,727
7.000%, due 08/01/25		1,008		1,163
7.500%, due 10/01/17		1,599		1,606
8.000%, due 03/01/13		10,621		10,755
9.000%, due 04/01/25		37,101		45,581
11.000%, due 09/01/15		695		728
11.000%, due 10/01/15		271		298
11.000%, due 12/01/15		4,005		4,526
11.000%, due 04/01/19		4,427		5,268
11.000%, due 06/01/19		391		393
11.000%, due 08/01/20		32		32
11.000%, due 09/01/20		1,280		1,507
11.500%, due 01/01/16		2,262		2,298
11.500%, due 01/01/18		7,652		8,973
11.500%, due 05/01/19		2,628		2,642
11.500%, due 06/01/19		18,399		22,232
FHLMC ARM 2.387%, due 01/01/28		69,376		72,487
2.400%, due 11/01/27		169,306		178,008
2.483%, due 04/01/29		274,145		288,030
2.498%, due 07/01/24		244,477		246,129
2.531%, due 10/01/23		137,410		144,222
2.583%, due 12/01/29		141,433		149,116
2.587%, due 11/01/29		557,769		587,601
2.597%, due 06/01/28		481,423		506,946
2.597%, due 07/01/28		193,141		203,167
2.670%, due 11/01/25		320,836		338,936
2.685%, due 01/01/29		260,508		274,801
2.754%, due 10/01/27		378,846		400,416
2.764%, due 10/01/27		343,838		362,791

	Face amount		Value
Federal home loan mortgage corporation certificates*—(Concluded)
2.875%, due 01/01/30	$	36,632	$	38,475
5.104%, due 10/01/29		14,672		15,376
FHLMC TBA 4.000%		22,700,000		23,054,687
4.500%		42,000,000		43,785,000
5.000%		21,500,000		22,914,296
5.500%		19,000,000		20,573,437
Total federal home loan mortgage corporation certificates (cost—$147,193,416)				149,155,726
Federal housing administration certificates—0.18%
FHA GMAC 7.400%, due 02/01/21		382,416		378,591
FHA Reilly 6.896%, due 07/01/20		700,224		700,224
Total federal housing administration certificates (cost—$1,083,661)				1,078,815
Federal national mortgage association certificates*—78.68%
FNMA 3.500%, due 11/01/25		2,500,433		2,573,940
3.500%, due 02/01/26		1,594,884		1,642,268
3.500%, due 09/01/391		295,409		289,210
3.500%, due 11/01/391		492,795		482,406
3.500%, due 08/01/401		808,256		792,626
3.500%, due 09/01/401		55,745		54,570
3.500%, due 10/01/401		255,782		250,390
3.500%, due 11/01/401		2,830,592		2,770,915
3.500%, due 12/01/401		13,022,989		12,748,431
3.500%, due 01/01/411		2,182,543		2,136,530
3.500%, due 03/01/411		9,999,996		9,789,170
4.000%, due 05/01/18		201,720		210,930
4.000%, due 03/01/19		235,888		250,821
4.000%, due 06/01/19		273,857		291,194
4.000%, due 04/01/23		15,750		16,582
4.000%, due 03/01/24		3,048,517		3,203,393
4.000%, due 08/01/24		698,166		733,635
4.000%, due 03/01/25		1,083,209		1,137,055
4.000%, due 05/01/25		1,720,230		1,805,742
4.000%, due 05/01/391		551,627		562,579
4.000%, due 09/01/391		902,191		919,681
4.000%, due 09/01/401		4,102,984		4,172,910
4.000%, due 10/01/401		4,233,803		4,305,958
4.000%, due 11/01/401		9,606,001		9,769,710
4.000%, due 12/01/401		18,920,127		19,242,572
4.000%, due 01/01/411		46,673,728		47,469,158
4.000%, due 02/01/411		42,534,641		43,255,431
4.000%, due 03/01/411		32,435,366		32,979,300
4.000%, due 04/01/411		5,482,407		5,574,127
4.000%, due 05/01/411		22,065,327		22,434,479
4.500%, due 03/01/23		84,386		90,287

19

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Federal national mortgage association certificates*—(Continued)
4.500%, due 04/01/23	$	301,088	$	320,999
4.500%, due 05/01/24		2,064,605		2,199,813
4.500%, due 11/01/24		664,820		708,138
4.500%, due 01/01/25		22,950		24,445
4.500%, due 02/01/25		43,787		46,612
4.500%, due 03/01/25		898,117		956,073
4.500%, due 04/01/25		5,977,768		6,363,538
4.500%, due 05/01/25		388,310		413,368
4.500%, due 06/01/25		854,149		909,268
4.500%, due 09/01/25		79,181		84,340
4.500%, due 02/01/33		83,932		88,389
4.500%, due 05/01/38		662,009		692,613
4.500%, due 08/01/38		1,172,835		1,227,052
4.500%, due 01/01/39		53,673		56,154
4.500%, due 02/01/39		589,552		616,806
4.500%, due 04/01/39		1,801,344		1,884,616
4.500%, due 07/01/39		23,633		24,777
4.500%, due 09/01/39		1,193,501		1,248,464
4.500%, due 10/01/39		978,481		1,023,255
4.500%, due 01/01/40		679,381		710,469
4.500%, due 07/01/40		81,107		84,882
4.500%, due 04/01/41		1,033,056		1,079,999
4.500%, due 05/01/41		7,971,131		8,332,146
5.000%, due 08/01/18		46,421		49,872
5.000%, due 01/01/23		1,767,376		1,899,578
5.000%, due 02/01/23		89,490		96,142
5.000%, due 03/01/23		307,099		330,103
5.000%, due 04/01/23		516,158		554,524
5.000%, due 05/01/23		729,882		789,837
5.000%, due 06/01/23		769,713		826,925
5.000%, due 07/01/23		1,405,077		1,509,517
5.000%, due 09/01/23		2,651,389		2,883,829
5.000%, due 10/01/23		122,600		131,713
5.000%, due 11/01/23		120,239		129,176
5.000%, due 01/01/24		687,168		738,245
5.000%, due 07/01/24		3,538,760		3,840,147
5.000%, due 12/01/33		3,817,260		4,099,422
5.500%, due 12/01/16		57,471		62,351
5.500%, due 01/01/17		126,673		137,428
5.500%, due 06/01/17		81,456		87,900
5.500%, due 09/01/17		51,082		55,452
5.500%, due 11/01/17		83,650		90,805
5.500%, due 01/01/18		548,185		596,103
5.500%, due 02/01/18		158,942		172,537
5.500%, due 07/01/22		424,067		459,719
5.500%, due 02/01/23		67,523		73,200
5.500%, due 02/01/32		34,126		37,271
5.500%, due 11/01/32		661,416		722,361
5.500%, due 12/01/33		6,533		7,135
5.500%, due 04/01/34		311,295		340,303
5.500%, due 11/01/34		1,150,859		1,256,543
5.500%, due 01/01/35		240,354		262,501
5.500%, due 02/01/35		29,368		32,065
5.500%, due 05/01/37		1,850,931		2,021,481
5.500%, due 07/01/37		2,966,559		3,221,365

	Face amount		Value
Federal national mortgage association certificates*—(Continued)
5.500%, due 01/01/38	$	10,184,306	$	11,059,065
5.500%, due 06/01/39		9,277,920		10,132,815
6.000%, due 11/01/21		495,834		540,072
6.000%, due 06/01/22		87,801		95,470
6.000%, due 01/01/23		1,001,034		1,095,350
6.000%, due 03/01/23		1,919,577		2,090,839
6.000%, due 11/01/26		200,751		221,217
6.000%, due 01/01/32		41,429		46,132
6.000%, due 04/01/32		52,877		58,879
6.000%, due 09/01/32		38,554		42,930
6.000%, due 10/01/32		66,735		74,310
6.000%, due 12/01/32		108,244		120,530
6.000%, due 01/01/33		238,439		265,504
6.000%, due 02/01/33		129,626		144,178
6.000%, due 09/01/34		901,747		1,001,939
6.000%, due 04/01/35		4,162		4,608
6.000%, due 05/01/35		511,475		566,453
6.000%, due 06/01/35		120,951		133,924
6.000%, due 07/01/35		556,421		616,704
6.000%, due 08/01/35		294,951		326,588
6.000%, due 09/01/35		89,525		99,178
6.000%, due 01/01/36		256,371		284,350
6.000%, due 09/01/36		333,533		369,933
6.000%, due 10/01/36		648,880		717,262
6.000%, due 11/01/36		8,540		9,436
6.000%, due 01/01/37		482,913		533,735
6.000%, due 03/01/37		207,805		230,149
6.000%, due 08/01/37		540,983		596,642
6.000%, due 09/01/37		2,254,178		2,486,099
6.000%, due 12/01/37		388,064		427,990
6.000%, due 06/01/38		70,200		77,291
6.000%, due 08/01/38		74,412		81,929
6.000%, due 09/01/38		2,875,201		3,165,625
6.000%, due 10/01/38		3,790,100		4,182,591
6.000%, due 01/01/39		2,926,040		3,226,623
6.000%, due 10/01/39		75,088		82,814
6.500%, due 09/01/12		1,061		1,090
6.500%, due 12/01/12		2,430		2,609
6.500%, due 01/01/13		613		631
6.500%, due 02/01/13		3,784		3,887
6.500%, due 03/01/13		7,147		7,343
6.500%, due 04/01/13		639		657
6.500%, due 06/01/13		9,984		10,420
6.500%, due 07/01/13		2,768		2,883
6.500%, due 08/01/13		3,120		3,260
6.500%, due 09/01/13		9,764		10,201
6.500%, due 10/01/13		6,807		7,105
6.500%, due 11/01/13		18,801		19,643
6.500%, due 07/01/19		52,606		58,448
6.500%, due 10/01/36		1,557,441		1,745,481
7.500%, due 11/01/26		26,290		30,447
8.000%, due 11/01/26		39,816		46,368
9.000%, due 10/01/19		21,414		21,603
9.000%, due 02/01/26		29,449		34,916
10.500%, due 09/01/15		6,152		6,912

20

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Federal national mortgage association certificates*—(Concluded)
10.500%, due 08/01/20	$	1,032	$	1,087
10.500%, due 04/01/22		459		516
11.000%, due 10/01/15		1,248		1,267
11.000%, due 02/01/16		1,075		1,082
FNMA ARM 1.478%, due 03/01/44		622,457		635,315
1.724%, due 10/01/26		740,922		764,492
1.750%, due 09/01/15		39,686		39,982
2.329%, due 02/01/26		50,553		53,084
2.352%, due 09/01/26		34,055		35,485
2.520%, due 02/01/30		45,026		47,328
2.645%, due 07/01/30		26,044		27,088
2.782%, due 12/01/27		43,896		46,225
2.907%, due 05/01/30		118,219		124,186
3.139%, due 03/01/25		225,785		237,447
FNMA TBA 3.500%		8,000,000		8,223,750
4.000%		15,000,000		15,717,188
4.500%		59,200,000		61,966,813
5.000%		7,400,000		7,899,688
5.500%		26,500,000		28,708,673
6.000%		5,500,000		6,034,316
6.500%		10,600,000		11,754,406
Total federal national mortgage association certificates (cost—$468,353,367)				478,110,242
Collateralized mortgage obligations—13.81%
ARM Trust, Series 2005-8, Class 3A21 5.240%, due 11/25/35		2,345,679		1,709,679
Bear Stearns Asset Backed Securities Trust, Series 2003-AC5, Class A1 5.750%, due 10/25/332		2,491,001		2,510,010
Series 2004-AC3, Class A2 5.500%, due 06/25/342		2,689,745		2,657,813
Chevy Chase Funding LLC, Series 2004-1, Class A1 0.467%, due 01/25/353,4		256,076		189,699
Chevy Chase Mortgage Funding Corp., Series 2007-2A, Class A1 0.317%, due 05/25/483,4		1,698,285		740,568
Countrywide Alternative Loan Trust, Series 2006-0A2, Class A1 0.396%, due 05/20/464		4,160,987		2,219,783
FHLMC REMIC,* Series 0023, Class KZ 6.500%, due 11/25/23		64,957		74,270
Series 0159, Class H 4.500%, due 09/15/21		16,801		17,574
Series 1003, Class H 0.938%, due 10/15/204		72,993		73,003

	Face amount		Value
Collateralized mortgage obligations—(Continued)
Series 1349, Class PS 7.500%, due 08/15/22	$	3,394	$	3,903
Series 1502, Class PX 7.000%, due 04/15/23		481,765		551,530
Series 1534, Class Z 5.000%, due 06/15/23		242,400		242,353
Series 1573, Class PZ 7.000%, due 09/15/23		81,570		93,270
Series 1658, Class GZ 7.000%, due 01/15/24		40,347		46,259
Series 1694, Class Z 6.500%, due 03/15/24		345,118		376,457
Series 1775, Class Z 8.500%, due 03/15/25		8,019		9,405
Series 2411, Class FJ 0.537%, due 12/15/294		58,218		57,857
Series 3312, Class FN 0.407%, due 07/15/364		2,923,650		2,904,836
FNMA REMIC,* Trust 1987-002, Class Z 11.000%, due 11/25/17		196,842		224,902
Trust 1988-007, Class Z 9.250%, due 04/25/18		186,205		208,391
Trust 1992-129, Class L 6.000%, due 07/25/22		11,173		12,453
Trust 1992-158, Class ZZ 7.750%, due 08/25/22		31,201		36,053
Trust 1993-037, Class PX 7.000%, due 03/25/23		429,848		488,529
Trust 1993-240, Class Z 6.250%, due 12/25/13		1,062		1,109
Trust 1993-250, Class Z 7.000%, due 12/25/23		14,440		15,548
Trust 2004-72, Class F 0.687%, due 09/25/344		3,188,370		3,181,949
Trust 2005-088, Class A 0.337%, due 10/25/354		2,840,075		2,768,726
Trust 2007-4, Class DF 0.632%, due 02/25/374		3,088,177		3,067,964
Trust G92-040, Class ZC 7.000%, due 07/25/22		46,173		51,845
Trust G94-006, Class PJ 8.000%, due 05/17/24		57,506		66,188
GNMA REMIC, Trust 2000-009, Class FH 0.687%, due 02/16/304		46,909		46,995
Trust 2010-H01, Class FA 1.006%, due 01/20/604,5		5,860,788		5,902,340
Indymac Index Mortgage Loan Trust, Series 2005-AR2, Class 2A1A 0.507%, due 02/25/354		1,120,453		742,004
JPMorgan Alternative Loan Trust, Series 2008-R4, Class 2A1 0.687%, due 06/27/373,4		4,051,833		3,284,708

21

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Collateralized mortgage obligations—(Concluded)
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-FL1A, Class A1 0.562%, due 07/15/193,4	$	8,012,521	$	7,552,512
LB Commercial Conduit Mortgage Trust, Series 2007-C3, Class A4 5.941%, due 07/15/444		2,500,000		2,735,851
MLCC Mortgage Investors, Inc., Series 2004-1, Class 2A2 2.166%, due 12/25/344		1,058,476		1,017,201
Mortgage Equity Conversion Asset Trust, Series 2006-SFG3, Class A 0.690%, due 10/25/413,4,5		1,455,712		1,387,089
Series 2007-FF1, Class A 0.690%, due 01/25/423,4		1,647,609		1,556,991
Series 2007-FF3, Class A 0.740%, due 05/25/423,4,5		6,271,768		5,974,243
NCUA Guaranteed Notes, Series 2011-R4, Class 1A 0.581%, due 03/06/204		4,555,527		4,555,527
RBSSP, Resecuritization Trust Certificate, Series 2009-6, Class 18A1 0.687%, due 12/26/363,4		3,307,506		3,162,561
RiverView HECM Trust, Series 2008-1, Class A1 0.937%, due 09/26/413,4,5		7,335,762		7,095,630
Sequoia Mortgage Trust, Series 5, Class A 0.537%, due 10/19/264		446,770		392,438
Structured ARM Loan, Series 2007-4, Class 1A2 0.407%, due 05/25/37		548,385		316,692
Structured Asset Mortgage Investments, Inc., Series 2006-AR3, Class 11A1 0.397%, due 04/25/364		1,779,822		1,118,193
Series 2007-AR5, Class A2 0.737%, due 09/25/474		10,032,632		3,571,507
Washington Mutual Mortgage Pass-Through Certificates, Series 2003-AR9, Class 1A6 2.712%, due 09/25/334		3,679,607		3,462,874
Series 2003-AR9, Class 2A 2.777%, due 09/25/334		907,814		876,870
Wells Fargo Mortgage Backed Securities Trust, Series 2007-14, Class 1A1 6.000%, due 10/25/37		4,607,373		4,590,087
Total collateralized mortgage obligations (cost—$87,569,818)				83,944,239

	Face amount		Value
Asset-backed securities—2.73%
Countrywide Asset-Backed Certificates, Series 2005-13, Class 3AV3 0.437%, due 04/25/364	$	1,155,828	$	1,014,333
Cumberland CLO Ltd., Series 2005-2A, Class A 0.517%, due 11/10/193,4,5		7,788,424		7,530,425
EMC Mortgage Loan Trust, Series 2003-A, Class A2 0.937%, due 08/25/403,4		301,000		224,522
Green Tree Financial Corp., Series 1998-2, Class A5 6.240%, due 12/01/284		47,975		50,229
Renaissance Home Equity Loan Trust, Series 2003-2, Class A 0.627%, due 08/25/334		434,292		394,348
SLM Student Loan Trust, Series 2009-D, Class A 3.500%, due 08/17/433,4		4,723,519		4,731,876
Series 2010-A, Class 2A 3.457%, due 05/16/443,4		1,943,901		2,042,480
Specialty Underwriting & Residential Financing, Series 2003-BC1, Class A 0.867%, due 01/25/344		57,784		45,528
Stone Tower CLO Ltd., Series 2007-6A, Class A1 0.480%, due 04/17/213,4		600,000		557,331
Total asset-backed securities (cost—$16,776,101)				16,591,072
Stripped mortgage-backed securities—1.14%
FHLMC Multifamily Structured Pass Through Certificates, Series K005, Class AX* 1.389%, due 11/25/194,6,7		24,799,764		2,121,089
FHLMC REMIC,* Series 0013, Class B 7.000%, due 06/25/236,7		172,804		36,367
Series 2136, Class GD 7.000%, due 03/15/296,7		11,676		2,208
Series 2178, Class PI 7.500%, due 08/15/296		69,267		14,498
GNMA REMIC, Trust 2011-92, Class IX 1.446%, due 11/16/444,5,6,7		37,500,000		3,497,266
WF-RBS Commercial Mortgage Trust, Series 2011-C4, Class XA 1.072%, due 06/15/444,5,6,7,8		29,000,000		1,266,683
Total stripped mortgage-backed securities (cost—$6,807,205)				6,938,111

22

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Repurchase agreement—0.32%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $9,548 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $1,372,274 US Treasury Bills, zero coupon due 08/04/11 and $541,222 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$1,957,401); proceeds: $1,919,002 (cost—$1,919,000)	$	1,919,000	$	1,919,000
Total investments before investments sold short (cost—$914,132,013)— 152.40%				926,060,938

	Face amount			Value
Investments sold short—(43.61)%
FNMA TBA* 3.500%, TBA	$	(19,000,000	)	$	(18,519,062	)
4.000%, TBA		(168,000,000	)		(170,487,500	)
GNMA TBA 3.500%, TBA		(66,430,000	)		(65,911,016	)
4.500%, TBA		(2,000,000	)		(2,131,250	)
GNMA II TBA 3.500%, TBA		(8,000,000	)		(7,937,500	)
Total investments sold short (proceeds—$261,813,240)— (43.61)%					(264,986,328	)
Liabilities in excess of other assets—(8.79)%					(53,425,022	)
Net assets—100.00%				$	607,649,588

Aggregate cost for federal income tax purposes before investments sold short was $914,567,790; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	17,910,229
Gross unrealized depreciation		(6,417,081	)
Net unrealized appreciation	$	11,493,148

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

¹  Entire amount designated as collateral for investments sold short.

²  Step bond that converts to the noted fixed rate at a designated future date.

³  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 7.58% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁴  Variable or floating rate security. The interest rate shown is the current rate as of July 31, 2011 and changes periodically.

⁵  Security is being fair valued by a valuation committee under the direction of the board of trustees.

⁶  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.

⁷  Illiquid securities representing 1.15% of net assets as of July 31, 2011.

⁸  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security, which represent 0.21% of net assets as of July 31, 2011, is considered illiquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

23

PACE Select Advisors Trust

PACE Government Securities Fixed Income Investments

Portfolio of investments—July 31, 2011

Written options

Written option activity for the year ended July 31, 2011 was as follows:

	Number of contracts			Premiums received
Options outstanding at July 31, 2010		558		$	180,178
Options terminated in closing purchase transactions		(558	)		(180,178	)
Options outstanding at July 31, 2011		—		$	—

Swaptions

Swaptions activity for the year ended July 31, 2011 was as follows:

	Premiums received
Swaptions outstanding at July 31, 2010	$	911,875
Swaptions terminated in closing purchase transactions		(911,875	)
Swaptions outstanding at July 31, 2011	$	—

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Government national mortgage association certificates	$	—	$	188,323,733		$	—	$	188,323,733
Federal home loan mortgage corporation certificates		—		149,155,726			—		149,155,726
Federal housing administration certificates		—		—			1,078,815		1,078,815
Federal national mortgage association certificates		—		478,110,242			—		478,110,242
Collateralized mortgage obligations		—		63,584,937			20,359,302		83,944,239
Asset-backed securities		—		16,591,072			—		16,591,072
Stripped mortgage-backed securities		—		2,174,162			4,763,949		6,938,111
Repurchase agreement		—		1,919,000			—		1,919,000
Federal national mortgage association and government national mortgage association certificates sold short		—		(264,986,328	)		—		(264,986,328	)
Total	$	—	$	634,872,544		$	26,202,066	$	661,074,610

The following is a rollforward of the Portfolio's investments that were valued using unobservable inputs (Level 3) for the year ended July 31, 2011:

	Federal housing administration certificates			Collateralized mortgage obligations			Stripped mortgage-backed securities			Total
Beginning balance	$	1,257,578		$	16,097,006		$	—		$	17,354,584
Purchases		1,136,643			27,649,650			4,641,894			33,428,187
Sales		(1,316,331	)		(21,498,900	)		—			(22,815,231	)
Accrued discounts/(premiums)		(1,381	)		66,011			(4,046	)		60,584
Total realized gain/(loss)		—			—			—			—
Net change in unrealized appreciation/depreciation		2,306			(397,474	)		126,101			(269,067	)
Transfers in to Level 3		—			—			—			—
Transfers out of Level 31		—			(1,556,991	)		—			(1,556,991	)
Ending balance	$	1,078,815		$	20,359,302		$	4,763,949		$	26,202,066

The change in unrealized appreciation/depreciation relating to the Level 3 investments held at July 31, 2011 was $(206,927).

¹  Transfers out of Level 3 represent the value at the end of the period. At July 31, 2011, a security was transferred from Level 3 to Level 2 as the valuation is based on observable inputs from an established pricing source.

See accompanying notes to financial statements.
24

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 3.58%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 1.53%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Barclays Capital US Intermediate Government/Credit Index (the "benchmark") returned 4.12%, and the Lipper Short-Intermediate Investment Grade Debt Funds category posted a median return of 3.73%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 28. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisor's comments¹

The Portfolio lagged its benchmark during the reporting period, primarily due to duration and yield curve positioning. (Duration measures a portfolio's sensitivity to interest rate changes, while the yield curve plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity). Conversely, out-of-benchmark allocations to sectors such as commercial mortgage-backed securities ("CMBS"), non-agency residential mortgage-backed securities ("MBS") and Treasury inflation-protected securities ("TIPS") boosted relative performance.

Specifically, it was the Portfolio's yield curve-flattening bias in the fall of 2010 that detracted from relative performance as the yield curve steepened in anticipation of the Federal Reserve Board's (the "Fed") efforts to stimulate the economy via a second Treasury purchase program, or quantitative easing ("QE2"). (A "steepening yield curve" is one in which long term bond yields increase relative to those of short-term bonds.) Interest rates were volatile, as the 10-year Treasury yield rose as high as 3.74% and as low as 2.39% over the period. Thus, the Portfolio's duration positioning experienced some positive and some negative months of performance. In aggregate, duration positioning was a modest detractor, most recently due to a short duration bias in May and July 2011.

The Portfolio's allocations to CMBS and non-agency MBS were the largest contributors to performance during the reporting period. The performances of both sectors were highly correlated with investors' appetite for risk. From August 2010 until April 2011, CMBS and non-agency MBS benefited from an increased demand for yield in a low interest rate environment. However, both sectors underperformed during periods of increased risk aversion.

PACE Select Advisors Trust – PACE Intermediate Fixed Income Investments

Investment Sub-Advisor:

BlackRock Financial Management, Inc. ("BlackRock")

Portfolio Managers:

Matthew Marra and Brian Weinstein

Objective:

Current income, consistent with reasonable stability of principal

Investment process:

The Portfolio invests primarily in fixed income securities. BlackRock decides to buy specific bonds based on its credit analysis and review. BlackRock strives to add value by controlling the Portfolio's duration within a narrow band relative to the Barclays Capital US Intermediate Government/Credit Index. To accomplish this, BlackRock employs an analytical process that involves evaluating macroeconomic trends, technical market factors, yield-curve exposure and market volatility. Once BlackRock establishes the investment themes on duration, yield curve exposure, convexity, sector weighting, credit quality and liquidity, the Portfolio's investments are diversified by sector, subsector and security.

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

25

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Sub-Advisor's comments – concluded

Inflation-linked strategies that we implemented in November 2010 contributed positively to performance. The Fed's second round of quantitative easing raised inflation expectations and caused the US dollar to depreciate. This, coupled with turmoil in the Middle East, sparked a sharp rise in commodity prices, leading to higher headline inflation across the globe. Against this backdrop, TIPS outperformed their nominal (non-TIPS) Treasury counterparts. Later in the reporting period, we eliminated a portion of the Portfolio's TIPS position to capture profits, as growth in the US began slowing and commodity prices declined, which served to reduce inflation expectations.

A number of derivative instruments were used during the reporting period. Futures were used to manage the overall duration and yield curve exposures of the Portfolio. Interest rate swaps were utilized to manage the Portfolio's overall duration and spread duration. Foreign exchange forward contracts were used to help us hedge foreign currency risk from buying bonds that are not denominated in US dollars. Furthermore, we used these forward contracts to opportunistically express our views on certain currencies. Credit default swaps were used to manage the credit risk of corporate bonds held in the Portfolio. Overall, the use of these derivatives contributed to performance during the reporting period.

Special considerations

The Portfolio may be appropriate for long-term investors seeking current income and a reasonable stability of principal. Investors should be able to withstand short-term fluctuations in the fixed income markets. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.

26

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Intermediate Fixed Income Investments Class P shares versus the Barclays Capital US Intermediate Government/Credit Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. 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 illustration purposes only.

27

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		3.24	%		5.11	%		3.47	%
maximum sales charge	Class B2		2.46	%		4.31	%		3.00	%6
or PACE Select	Class C3		2.80	%		4.59	%		2.95	%
program fee	Class Y4		3.49	%		5.37	%		3.73	%
	Class P5		3.58	%		5.38	%		3.74	%
After deducting	Class A1		(1.44	)%		4.15	%		2.99	%
maximum sales charge	Class B2		(2.54	)%		3.97	%		3.00	%6
or PACE Select	Class C3		2.05	%		4.59	%		2.95	%
program fee	Class P5		1.53	%		3.29	%		1.68	%
Barclays Capital US Intermediate Government/Credit Index7			4.12	%		6.15	%		5.28	%
Lipper Short-Intermediate Investment Grade Debt Funds median			3.73	%		5.38	%		4.48	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, (1.50)%; 5-year period, 4.11%; 10-year period, 3.07%; Class B—1-year period, (2.65)%; 5-year period, 3.94%; 10-year period, 3.08%; Class C—1-year period, 1.85%; 5-year period, 4.55%; 10-year period, 3.02%; Class Y—1-year period, 3.39%; 5-year period, 5.36%; 10-year period, 3.81%; Class P—1-year period, 1.33%; 5-year period, 3.26%; 10-year period, 1.76%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.00% and 0.93%; Class B—1.82% and 1.68%; Class C—1.50% and 1.43%; Class Y—0.74% and 0.68%; and Class P—0.73% and 0.68%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—0.93%; Class B—1.68%; Class C—1.43%; Class Y—0.68%; and Class P—0.68%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The Barclays Capital US Intermediate Government/Credit Index is an unmanaged subset of the Barclays Capital US Government/Credit Index covering all investment grade issues with maturities from one up to (but not including) 10 years. The average-weighted maturity is typically between four and five years. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

28

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Weighted average duration		3.5 yrs.
Weighted average maturity		6.3 yrs.
Average coupon		3.99	%
Net assets (mm)	$	455.6
Number of holdings		253
Portfolio composition1	07/31/11
Bonds and notes		107.1	%
Options, futures, swaps and forward foreign currency contracts		(0.4	)
Cash equivalents and other assets less liabilities		(6.7	)
Total		100.0	%
Quality diversification1	07/31/11
US government and agency securities		40.7	%
AAA		13.2
AA		6.3
A		14.9
BBB and below/non-rated		32.0
Options, futures, swaps and forward foreign currency contracts		(0.4	)
Cash equivalents and other assets less liabilities		(6.7	)
Total		100.0	%
Asset allocation1	07/31/11
Corporate notes		47.2	%
US government obligations		29.8
US government agency mortgage pass-through certificates		10.5
Collateralized mortgage obligations		9.2
Asset-backed securities		9.1
Non-US government obligations		1.3
Options, futures, swaps and forward foreign currency contracts		(0.4	)
Cash equivalents and other assets less liabilities		(6.7	)
Total		100.0	%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

29

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
US government obligations—29.84%
US Treasury Bonds 4.375%, due 05/15/41		8,985,000	$	9,352,846
4.750%, due 02/15/41		7,775,000		8,612,025
6.250%, due 08/15/23		1,155,000		1,511,426
7.250%, due 08/15/22		985,000		1,381,770
8.125%, due 05/15/21		4,265,000		6,246,225
US Treasury Inflation Index Notes (TIPS) 2.000%, due 04/15/12		6,552,731		6,671,499
US Treasury Notes 0.375%, due 07/31/13		11,925,000		11,927,791
0.625%, due 07/15/14		13,170,000		13,198,842
1.500%, due 06/30/162		17,956,000		18,093,543
1.500%, due 07/31/16		29,610,000		29,790,325
2.375%, due 05/31/18		21,020,000		21,453,643
3.125%, due 05/15/21		6,515,000		6,693,120
3.625%, due 02/15/20		920,000		999,637
Total US government obligations (cost—$133,746,919)				135,932,692
Federal farm credit bank certificate—1.38%
FFCB 2.625%, due 04/17/14 (cost—$5,992,529)		6,000,000		6,297,810
Federal home loan bank certificate—0.51%
FHLB 5.625%, due 06/13/16 (cost—$2,168,980)		2,085,000		2,336,507
Federal home loan mortgage corporation certificates*—2.96%
FHLMC 3.525%, due 09/30/19		10,490,000		10,640,227
5.000%, due 11/13/14		2,500,000		2,826,370
Total federal home loan mortgage corporation certificates (cost—$13,231,254)				13,466,597
Federal national mortgage association certificates*—5.62%
FNMA 1.625%, due 10/26/15		2,275,000		2,302,318
2.375%, due 04/11/16		5,795,000		6,009,125
3.383%, due 10/09/193		1,290,000		932,468
3.607%, due 10/09/193		910,000		657,787
4.625%, due 05/01/13		845,000		902,042
FNMA TBA 4.000%		11,700,000		11,882,812
4.500%		2,800,000		2,922,500
Total federal national mortgage association certificates (cost—$25,028,645)				25,609,052

	Face amount1		Value
Collateralized mortgage obligations—9.20%
Arkle Master Issuer PLC, Series 2010-2A, Class 1A1 1.661%, due 05/17/604,5		2,015,000	$	2,014,180
Banc of America Commercial Mortgage, Inc., Series 2002-PB2, Class A4 6.186%, due 06/11/35		1,681,653		1,697,082
Bear Stearns Alternative Loan Trust-A Trust, Series 2004-13, Class A1 0.927%, due 11/25/344		416,926		375,425
Bear Stearns ARM Trust, Series 2004-5, Class 2A 3.139%, due 07/25/34		899,109		807,061
Bear Stearns Commercial Mortgage Securities, Series 2003-T12, Class A4 4.680%, due 08/13/394		2,400,000		2,527,755
Countrywide Home Loans, Series 2006-0A5, Class 2A1 0.387%, due 04/25/464		473,817		268,533
CWCapital COBALT, Series 2007-C3, Class A4 5.816%, due 05/15/464		840,000		914,835
Extended Stay America Trust, Series 2010-ESHA, Class A 2.951%, due 11/05/275		1,910,869		1,892,127
Series 2010-ESHA, Class D 5.498%, due 11/05/275		1,210,000		1,212,268
FNMA REMIC,* Trust 2005-109, Class PV 6.000%, due 10/25/32		1,102,259		1,220,577
Trust 2006-62, Class TA 5.500%, due 06/25/28		44,472		44,622
GNMA REMIC, Trust Series 2006-3, Class B 5.091%, due 01/16/374		1,560,000		1,684,864
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4 5.444%, due 03/10/39		990,000		1,063,137
Series 2007-GG11, Class A4 5.736%, due 12/10/49		1,451,000		1,558,860
Holmes Master Issuer PLC, Series 2010-1A, Class A2 1.649%, due 10/15/544,5		2,390,000		2,393,462
JPMorgan Chase Commercial Mortgage Securities, Series 2003-ML1A, Class A2 4.767%, due 03/12/39		1,455,000		1,510,641
Series 2004-CB8, Class A1A 4.158%, due 01/12/395		1,981,075		2,047,586
Series 2004-CBX, Class A4 4.529%, due 01/12/37		2,090,000		2,092,170

30

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Collateralized mortgage obligations—(Concluded)
Series 2006-LDP8, Class AM 5.440%, due 05/15/45		1,315,000	$	1,320,446
Series 2007-CB18, Class A3 5.447%, due 06/12/47		790,000		824,756
JPMorgan Mortgage Trust, Series 2006-S2, Class 2A2 5.875%, due 07/25/36		172,929		167,289
Series 2007-S1, Class 1A2 5.500%, due 03/25/22		136,340		133,176
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-4, Class AM 5.204%, due 12/12/494		875,000		834,085
Morgan Stanley Capital I, Series 2005-HQ6, Class A4A 4.989%, due 08/13/42		2,075,000		2,232,549
Series 2007-IQ14, Class A4 5.692%, due 04/15/494		2,000,000		2,148,659
Permanent Master Issuer PLC, Series 2006-1, Class 6A1 0.947%, due 04/15/204,6	GBP	1,466,000		2,356,640
Small Business Administration, Series 2004-P10B, Class 1 4.754%, due 08/10/14		405,523		431,668
Structured ARM Loan Trust, Series 2004-6, Class 4A1 2.520%, due 06/25/34		2,057,188		1,909,219
Series 2004-13, Class A2 0.487%, due 09/25/34		207,247		150,783
Structured Asset Securities Corp., Series 2003-AL1, Class A 3.357%, due 04/25/315		538,174		519,748
Thornburg Mortgage Securities Trust, Series 2006-5, Class A1 0.307%, due 10/25/464		988,690		985,745
TIAA Seasoned Commercial Mortgage Trust, Series 2007-C4, Class A1 5.575%, due 08/15/394		706,011		706,413
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4 5.572%, due 10/15/48		1,385,000		1,505,490
WaMu Mortgage Pass Through Certificates, Series 2007-0A4, Class 1A 1.033%, due 05/25/474		533,651		359,691
Total collateralized mortgage obligations (cost—$41,325,489)				41,911,542
Asset-backed securities—9.12%
AmeriCredit Automobile Receivables Trust, Series 2011-1, Class A2 0.840%, due 06/09/14		2,710,000		2,711,009

	Face amount1		Value
Asset-backed securities—(Continued)
Citibank Omni Master Trust, Series 2009, Class A14 2.937%, due 08/15/184,5		1,080,000	$	1,136,572
Series 2009-A8, Class A8 2.307%, due 05/16/164,5		2,160,000		2,186,044
Series 2009-A17, Class A17 4.900%, due 11/15/185		2,360,000		2,580,772
Countrywide Asset-Backed Certificates, Series 2006-2, Class 2A2 0.377%, due 06/25/364		779,879		655,830
Credit Acceptance Auto Loan Trust, Series 2010-1, Class A 2.060%, due 04/16/185		1,185,000		1,188,522
Ford Credit Floorplan Master Owner Trust, Series 2009-2, Class A 1.757%, due 09/15/144		1,545,000		1,564,509
Lehman XS Trust, Series 2005-6, Class 1A1 0.447%, due 11/25/354		456,601		213,330
Sallie Mae Student Loan Trust, Series 2005-8, Class A4 1.003%, due 01/25/284		3,300,000		3,208,008
Series 2008-5, Class A2 1.353%, due 10/25/164		3,160,580		3,194,496
Series 2008-5, Class A3 1.553%, due 01/25/184		1,100,000		1,124,381
Series 2008-5, Class A4 1.953%, due 07/25/234		2,950,000		3,061,915
Series 2010-C, Class A1 1.857%, due 12/15/174,5		946,264		952,507
Santander Consumer Acquired Receivables Trust, Series 2011-W0, Class A2 0.910%, due 11/15/135		3,107,297		3,108,861
Series 2011-W0, Class C 3.190%, due 10/15/155		1,070,000		1,071,829
Santander Drive Auto Receivables Trust, Series 2010-3, Class A2 0.930%, due 06/17/13		3,380,000		3,382,558
Series 2010-B, Class A2 1.010%, due 07/15/135		2,872,960		2,875,441
Series 2010-B, Class B 2.100%, due 09/15/145		2,490,000		2,500,446
Series 2010-B, Class C 3.020%, due 10/17/165		1,150,000		1,164,184
Series 2011-S1A, Class B 1.480%, due 05/15/175		1,290,325		1,285,972
Series 2011-S1A, Class D 3.100%, due 05/15/175		949,713		950,900
Series 2011-S2A, Class B 2.060%, due 06/15/175		908,209		907,005

31

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Asset-backed securities—(Concluded)
Structured Receivables Finance LLC, Series 2010-B, Class A 3.730%, due 08/15/365		531,151	$	525,840
Total asset-backed securities (cost—$41,565,947)				41,550,931
Corporate notes—47.15%
Airlines—0.29%
American Airlines, Inc. 10.500%, due 10/15/12		1,260,000		1,323,000
Automotive—0.74%
Asciano Finance Ltd. 5.000%, due 04/07/185		1,050,000		1,096,485
Daimler Finance N.A. LLC MTN 5.750%, due 09/08/11		1,150,000		1,155,853
Delphi Corp. 5.875%, due 05/15/195		1,134,000		1,142,505
				3,394,843
Banking-non-US—5.00%
Achmea Hypotheekbank N.V. 3.200%, due 11/03/145		1,605,000		1,697,504
Bank of Nova Scotia 1.650%, due 10/29/155		3,805,000		3,801,416
Canadian Imperial Bank of Commerce 2.750%, due 01/27/165		3,190,000		3,307,545
Credit Suisse AG 5.400%, due 01/14/20		900,000		926,842
DEPFA Asset Covered Securities Bank 4.875%, due 10/28/155		1,300,000		1,343,550
DnB NOR Boligkreditt 2.100%, due 10/14/155		1,700,000		1,707,936
Eksportfinans A/S 5.500%, due 05/25/16		1,275,000		1,481,350
Eksportfinans ASA 2.000%, due 09/15/15		3,090,000		3,137,994
HSBC Bank Brazil SA 4.000%, due 05/11/165		2,275,000		2,297,750
Royal Bank of Canada MTN 2.300%, due 07/20/167		1,325,000		1,330,696
Toronto-Dominion Bank 2.200%, due 07/29/155,7		1,690,000		1,730,175
				22,762,758
Banking-US—3.31%
Bank of America Corp. 5.750%, due 12/01/17		2,775,000		2,967,443
Series 1 3.750%, due 07/12/16		2,175,000		2,183,933
Bank of America Corp. MTN 5.000%, due 05/13/21		825,000		816,583
Capital One Financial Corp. 4.750%, due 07/15/21		1,125,000		1,137,172
Discover Bank 8.700%, due 11/18/19		1,100,000		1,361,290

	Face amount1		Value
Corporate notes—(Continued)
Banking-US—(Concluded)
JPMorgan Chase Bank N.A. 6.000%, due 07/05/17		1,825,000	$	2,058,959
6.000%, due 10/01/17		1,450,000		1,633,173
State Street Capital Trust III 5.237%, due 09/12/114,8		1,725,000		1,724,431
Wells Fargo & Co. 3.676%, due 06/15/169		1,161,000		1,219,504
				15,102,488
Beverages—0.78%
Anheuser-Busch InBev Worldwide, Inc. 3.000%, due 10/15/12		3,365,000		3,454,795
5.375%, due 01/15/20		75,000		86,256
				3,541,051
Chemicals—0.52%
CF Industries, Inc. 7.125%, due 05/01/20		1,060,000		1,242,850
Nalco Co. 8.250%, due 05/15/17		615,000		691,875
The Dow Chemical Co. 4.250%, due 11/15/20		442,000		452,787
				2,387,512
Consumer products—0.34%
Reynolds Group Issuer, Inc. 8.500%, due 10/15/165,9		1,505,000		1,568,963
Diversified financial services—1.19%
General Electric Capital Corp. 5.500%, due 01/08/20		1,220,000		1,339,485
General Electric Capital Corp. MTN 0.366%, due 04/10/124		2,850,000		2,854,093
4.375%, due 09/16/20		1,190,000		1,208,933
				5,402,511
Electric-integrated—3.26%
Carolina Power & Light Co. 5.300%, due 01/15/19		975,000		1,109,540
Constellation Energy Group, Inc. 5.150%, due 12/01/20		846,000		890,556
Duke Energy Corp. 3.950%, due 09/15/14		1,845,000		1,976,279
EDP Finance BV 5.375%, due 11/02/125		5,300,000		5,165,608
Florida Power Corp. 4.800%, due 03/01/13		340,000		361,423
IPALCO Enterprises, Inc. 5.000%, due 05/01/185		1,600,000		1,587,960
Jersey Central Power & Light Co. 5.625%, due 05/01/16		550,000		626,739
Pacificorp 5.500%, due 01/15/19		1,400,000		1,616,628
Progress Energy, Inc. 5.625%, due 01/15/16		1,325,000		1,514,063
				14,848,796

32

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate notes—(Continued)
Electronics—0.19%
Jabil Circuit, Inc. 5.625%, due 12/15/20		385,000	$	379,225
7.750%, due 07/15/16		425,000		476,000
				855,225
Financial services—7.12%
Ally Financial, Inc. 4.500%, due 02/11/14		4,492,000		4,469,540
Citigroup, Inc. 3.953%, due 06/15/16		1,625,000		1,688,763
4.587%, due 12/15/15		5,150,000		5,495,488
Credit Suisse AG Guernsey 5.860%, due 05/15/174,8		2,290,000		2,129,700
Goldman Sachs Group, Inc. 3.625%, due 02/07/16		2,025,000		2,049,995
5.250%, due 10/15/13		2,530,000		2,705,243
HSBC Holdings PLC 5.100%, due 04/05/21		1,100,000		1,155,368
JPMorgan Chase & Co. 3.150%, due 07/05/16		3,175,000		3,208,480
Morgan Stanley 3.800%, due 04/29/16		925,000		931,430
4.000%, due 07/24/15		520,000		536,428
4.200%, due 11/20/14		2,180,000		2,266,335
5.500%, due 07/28/21		550,000		566,914
Morgan Stanley MTN 5.625%, due 09/23/19		795,000		829,293
6.250%, due 08/28/17		740,000		818,087
Nomura Holdings, Inc. MTN 4.125%, due 01/19/16		1,030,000		1,059,882
SLM Corp. 5.679%, due 01/31/144		1,700,000		1,659,999
SteelRiver Transmission Co. LLC 4.710%, due 06/30/175		849,565		874,771
				32,445,716
Food products—0.47%
Kraft Foods, Inc. 6.000%, due 02/11/13		575,000		619,928
6.500%, due 08/11/17		1,275,000		1,531,785
				2,151,713
Gaming—0.60%
International Game Technology 7.500%, due 06/15/19		1,175,000		1,371,263
MGM Resorts International 13.000%, due 11/15/13		1,129,000		1,346,332
				2,717,595
Health care equipment & supplies—0.15%
Boston Scientific Corp. 5.125%, due 01/12/17		623,000		686,765
Hotels, restaurants & leisure—0.18%
Wyndham Worldwide Corp. 6.000%, due 12/01/16		750,000		814,244

	Face amount1		Value
Corporate notes—(Continued)
Insurance—2.29%
Fairfax Financial Holdings Ltd. 5.800%, due 05/15/215		650,000	$	642,627
Manulife Financial Corp. 3.400%, due 09/17/15		1,000,000		1,047,107
Metropolitan Life Global Funding I 2.875%, due 09/17/125		2,050,000		2,094,319
5.125%, due 04/10/135		1,850,000		1,966,380
5.125%, due 06/10/145		245,000		268,830
Pricoa Global Funding I 5.400%, due 10/18/125		2,175,000		2,290,866
Prudential Financial, Inc. MTN 3.000%, due 05/12/16		350,000		353,131
4.500%, due 11/15/20		375,000		386,669
4.750%, due 09/17/15		360,000		391,707
5.800%, due 06/15/12		975,000		1,014,635
				10,456,271
Media—2.62%
CCH II LLC/CCH II Capital Corp. 13.500%, due 11/30/16		1,840,000		2,171,200
Clear Channel Worldwide Holdings, Inc. 9.250%, due 12/15/17		625,000		679,688
COX Communications, Inc. 7.125%, due 10/01/12		350,000		374,242
DIRECTV Holdings/Financing 3.500%, due 03/01/16		2,300,000		2,420,476
4.600%, due 02/15/21		47,000		48,902
5.875%, due 10/01/19		615,000		701,335
Discovery Communications LLC 3.700%, due 06/01/15		610,000		651,086
Dish DBS Corp. 6.625%, due 10/01/14		1,050,000		1,119,563
Interpublic Group of Cos., Inc. 6.250%, due 11/15/14		561,000		624,113
10.000%, due 07/15/17		1,683,000		1,990,147
News America, Inc. 4.500%, due 02/15/215		580,000		579,857
8.500%, due 02/23/25		200,000		254,726
9.500%, due 07/15/24		225,000		308,266
				11,923,601
Medical providers—1.75%
Coventry Health Care, Inc. 5.450%, due 06/15/21		825,000		873,137
HCA, Inc. 6.500%, due 02/15/20		1,675,000		1,700,125
9.250%, due 11/15/16		2,109,000		2,250,040
Life Technologies Corp. 5.000%, due 01/15/21		1,243,000		1,305,719
6.000%, due 03/01/20		213,000		239,666
Tenet Healthcare Corp. 8.875%, due 07/01/19		614,000		678,470

33

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate notes—(Continued)
Medical providers—(Concluded)
WellPoint, Inc. 7.000%, due 02/15/19		750,000	$	915,662
				7,962,819
Metals & mining—1.06%
Alcoa, Inc. 5.400%, due 04/15/21		1,400,000		1,455,299
Barrick Gold Corp. 4.400%, due 05/30/215		1,375,000		1,427,984
Codelco, Inc. 3.750%, due 11/04/205		675,000		672,202
Rio Tinto Finance USA Ltd. 3.500%, due 11/02/20		752,000		750,616
Teck Resources Ltd. 6.250%, due 07/15/41		475,000		509,629
				4,815,730
Multi-line insurance—0.37%
American International Group, Inc. 5.450%, due 05/18/17		600,000		636,012
Genworth Financial, Inc. 7.625%, due 09/24/21		110,000		105,050
MetLife, Inc. 7.717%, due 02/15/19		750,000		931,258
				1,672,320
Oil & gas—4.36%
Anadarko Petroleum Corp. 5.750%, due 06/15/14		600,000		666,447
5.950%, due 09/15/16		2,370,000		2,732,290
6.375%, due 09/15/17		525,000		618,891
6.450%, due 09/15/36		148,000		161,313
7.625%, due 03/15/14		300,000		345,295
BP Capital Markets PLC 3.125%, due 03/10/12		1,690,000		1,715,173
3.200%, due 03/11/16		2,325,000		2,437,932
Continental Resources, Inc. 8.250%, due 10/01/19		2,035,000		2,238,500
Hilcorp Energy I LP/Hilcorp Finance Co. 7.750%, due 11/01/155		653,000		674,223
KeySpan Gas East Corp. 5.819%, due 04/01/415		1,100,000		1,181,863
Linn Energy LLC 6.500%, due 05/15/195		1,132,000		1,130,585
Marathon Petroleum Corp. 6.500%, due 03/01/415		304,000		326,357
Nexen, Inc. 6.400%, due 05/15/37		359,000		386,736
7.500%, due 07/30/39		600,000		730,085
OGX Petroleo e Gas Participacoes SA 8.500%, due 06/01/185		1,092,000		1,150,968
Pride International, Inc. 6.875%, due 08/15/20		975,000		1,173,192

	Face amount1		Value
Corporate notes—(Continued)
Oil & gas—(Concluded)
Southwestern Energy Co. 7.500%, due 02/01/18		1,894,000	$	2,182,835
				19,852,685
Oil refining—0.20%
Canadian Natural Resources Ltd. 6.500%, due 02/15/37		620,000		731,522
Valero Energy Corp. 6.125%, due 02/01/20		175,000		199,759
				931,281
Oil services—0.88%
Petrobras International Finance Co. 3.875%, due 01/27/16		1,505,000		1,560,620
5.750%, due 01/20/20		2,120,000		2,324,624
5.875%, due 03/01/18		95,000		105,773
				3,991,017
Packaging & containers—0.20%
Ball Corp. 7.125%, due 09/01/16		816,000		894,540
Paper & forest products—0.73%
Domtar Corp. 7.125%, due 08/15/15		172,000		191,780
Georgia-Pacific LLC 8.250%, due 05/01/165		925,000		1,052,862
International Paper Co. 7.300%, due 11/15/39		460,000		528,601
7.950%, due 06/15/18		1,250,000		1,536,821
				3,310,064
Pharmaceuticals—0.20%
Omnicare, Inc. 6.875%, due 12/15/15		884,000		908,310
Pipelines—1.54%
El Paso Pipeline Partners Operating Co. LLC 4.100%, due 11/15/15		725,000		767,641
6.500%, due 04/01/20		235,000		270,151
Enterprise Products Operating LLC 3.200%, due 02/01/16		1,525,000		1,575,499
5.200%, due 09/01/207		1,000,000		1,093,511
Spectra Energy Partners LP 2.950%, due 06/15/16		2,275,000		2,312,378
The Williams Cos., Inc. 8.750%, due 03/15/329		750,000		984,853
				7,004,033
Real estate investment trusts—0.96%
Developers Diversified Realty Corp. 7.875%, due 09/01/20		1,556,000		1,841,305
ERP Operating LP 6.625%, due 03/15/12		780,000		807,430
Rouse Co. LP 6.750%, due 05/01/135		1,087,000		1,130,480

34

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate notes—(Continued)
Real estate investment trusts—(Concluded)
UDR, Inc. MTN 4.250%, due 06/01/18		600,000	$	609,385
				4,388,600
Retail—0.96%
Dollar General Corp. 11.875%, due 07/15/1710		1,002,000		1,137,270
Home Depot, Inc. 4.400%, due 04/01/21		1,021,000		1,069,852
Macy's Retail Holdings, Inc. 5.750%, due 07/15/14		547,000		604,642
5.875%, due 01/15/13		192,000		203,991
7.450%, due 07/15/17		1,118,000		1,347,458
				4,363,213
Road & rail—0.19%
CSX Corp. 4.250%, due 06/01/21		832,000		860,834
Special purpose entity—1.11%
Capital One Multi-Asset, Series 4-3C 6.625%, due 06/17/144	GBP	350,000		602,943
Crown Castle Towers LLC 6.113%, due 01/15/205		1,805,000		2,015,674
Novus USA Trust, Series 2010-1 1.511%, due 11/18/114,5		2,475,000		2,460,598
				5,079,215
Telecommunications—2.17%
Qwest Corp. 6.500%, due 06/01/17		435,000		476,325
7.500%, due 10/01/14		194,000		219,220
7.625%, due 06/15/15		115,000		132,250
8.375%, due 05/01/16		350,000		414,750
Rogers Communications, Inc. 6.250%, due 06/15/13		825,000		902,887
SBA Tower Trust 4.254%, due 04/15/155,9		1,200,000		1,271,073
Telefonica Emisiones SAU 5.855%, due 02/04/13		925,000		969,037
6.421%, due 06/20/16		950,000		1,042,709
Verizon Communications, Inc. 8.750%, due 11/01/18		1,555,000		2,084,734
Verizon New Jersey, Inc. 5.875%, due 01/17/12		2,030,000		2,077,790
Virgin Media Secured Finance PLC 5.500%, due 01/15/215	GBP	190,000		311,876
				9,902,651
Telephone-integrated—0.41%
Qwest Communications International, Inc. 7.125%, due 04/01/18		1,197,000		1,280,790
8.000%, due 10/01/15		548,000		595,950
				1,876,740

	Face amount1		Value
Corporate notes—(Concluded)
Utilities—0.50%
Tennessee Valley Authority 5.250%, due 09/15/39		2,095,000	$	2,296,568
Wireless telecommunications—0.51%
Vodafone Group PLC 4.150%, due 06/10/14		2,150,000		2,321,028
Total corporate notes (cost—$207,556,420)				214,814,700
Non-US government obligations—1.30%
Israel Government AID Bond 5.500%, due 09/18/23		2,480,000		2,952,209
Russian Foreign Bond 7.500%, due 03/31/306,9		1,894,350		2,266,590
United Mexican States 5.125%, due 01/15/20		630,000		694,575
Total non-US government obligations (cost—$5,564,982)				5,913,374
Repurchase agreement—6.70%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $151,746 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $21,810,503 US Treasury Bills, zero coupon due 08/04/11 and $8,602,013 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$31,110,328); proceeds: $30,500,025 (cost—$30,500,000)		30,500,000		30,500,000
	Number of contracts/ Notional amount
Options purchased—0.01%
Call options purchased—0.00%
US Treasury Note 10 Year Futures, strike @ $124.50, expires 08/26/11		13		8,125
Put options purchased—0.01%
3 Month USD LIBOR11 Interest Rate Swap, strike @ 2.550%, expires 08/19/11 (Counterparty: Credit Suisse; receive floating rate); underlying swap terminates 08/23/16		12,900,000		26
US Treasury Note 5 Year Futures, strike @ $116.00, expires 08/26/11		25		391
US Treasury Note 5 Year Futures, strike @ $117.00, expires 08/26/11		61		1,906

35

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

	Number of contracts		Value
Options purchased—(Concluded)
Put options purchased—(Concluded)
US Treasury Note 10 Year Futures, strike @ $117.50, expires 08/26/11		212	$	9,938
US Treasury Note 10 Year Futures, strike @ $118.50, expires 08/26/11		118		7,375
US Treasury Note 10 Year Futures, strike @ $124.50, expires 08/26/11		13		23,562
				43,198
Total options (cost—$255,570)				51,323

	Number of shares		Value
Investment of cash collateral from securities loaned—0.92%
Money market fund—0.92%
UBS Private Money Market Fund LLC12(cost—$4,196,400)		4,196,400	$	4,196,400
Total investments (cost—$511,133,135)— 114.71%				522,580,928
Liabilities in excess of other assets—(14.71)%				(67,013,558	)
Net assets—100.00%			$	455,567,370

Aggregate cost for federal income tax purposes was $511,467,914; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	12,912,864
Gross unrealized depreciation		(1,799,850	)
Net unrealized appreciation	$	11,113,014

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

¹  In US Dollars unless otherwise indicated.

²  Partial amount delivered to broker as collateral for futures transactions.

³  Zero coupon bond. The rate shown represents the annualized yield at the date of purchase.

⁴  Variable or floating rate security. The interest rate shown is the current rate as of July 31, 2011 and changes periodically.

⁵  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 18.11% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁶  Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At July 31, 2011, the value of these securities amounted to 1.01% of net assets.

⁷  Security, or portion thereof, was on loan at July 31, 2011.

⁸  Perpetual bond security. The maturity date reflects the next call date.

⁹  Step bond that converts to the noted fixed rate at a designated future date.

¹⁰  Payment-in-kind security for which interest may be paid in cash or additional securities, at the discretion of the issuer.

¹¹  3 Month LIBOR at July 31, 2011 was 0.256%

¹²  The table below details the Portfolio's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	1,702,277	$	808,542,911	$	806,048,788	$	4,196,400	$	2,973

36

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

Futures contracts

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
US Treasury futures buy contracts:
	692	USD	US Treasury Note 2 Year Futures	September 2011	$	151,623,806	$	152,185,938	$	562,132
Interest rate futures buy contracts:
	65	AUD	Australian Treasury Bond 10 Year Futures	September 2011		7,563,994		7,811,139		247,145
					$	159,187,800	$	159,997,077	$	809,277
					Proceeds
US Treasury futures sell contracts:
	56	USD	Ultra Long-Term US Treasury Bond Futures	September 2011	$	7,195,894	$	7,388,500	$	(192,606	)
	75	USD	US Treasury Bond 30 Year Futures	September 2011		9,286,381		9,609,375		(322,994	)
	129	USD	US Treasury Note 5 Year Futures	September 2011		15,262,089		15,666,446		(404,357	)
	184	USD	US Treasury Note 10 Year Futures	September 2011		22,754,739		23,126,500		(371,761	)
Interest rate futures sell contracts:
	43	AUD	Australian Treasury Bond 3 Year Futures	September 2011		4,869,227		4,934,922		(65,695	)
					$	59,368,330	$	60,725,743	$	(1,357,413	)
									$	(548,136	)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
BNP Paribas SA	CAD	3,347,798	JPY	273,025,000	09/08/11	$	47,121
Citibank N.A.	EUR	1,575,000	USD	2,273,300	08/15/11		10,818
Citibank N.A.	EUR	1,590,000	USD	2,277,634	08/23/11		(6,002	)
Citibank N.A.	JPY	251,250,000	USD	3,136,320	09/07/11		(128,836	)
Citibank N.A.	JPY	273,025,000	CAD	3,326,924	09/08/11		(68,952	)
Citibank N.A.	USD	2,231,197	EUR	1,575,000	08/15/11		31,285
Citibank N.A.	USD	4,456,388	EUR	3,180,000	08/23/11		110,883
Citibank N.A.	USD	3,136,262	JPY	251,250,000	09/07/11		128,895
Deutsche Bank AG London	EUR	1,590,000	USD	2,285,178	08/23/11		1,543
Deutsche Bank AG London	EUR	1,630,000	USD	2,301,247	09/15/11		(38,548	)
Deutsche Bank AG London	USD	2,298,033	EUR	1,630,000	09/15/11		41,762
Royal Bank of Scotland PLC	GBP	1,960,500	USD	3,132,618	10/07/11		(83,196	)
						$	46,773

37

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

Interest rate swaps

				Rate type
Counterparty	Notional amount (000)		Termination dates	Payments made by the Portfolio†			Payments received by the Portfolio†			Upfront payments received (made)		Value			Unrealized appreciation (depreciation)
Credit Suisse International	USD	7,200	04/19/41		4.264	%		0.256	%13	$	—	$	(609,238	)	$	(609,238	)
Credit Suisse International	USD	15,300	04/20/16		2.259			0.256	13		—		(519,887	)		(519,887	)
Goldman Sachs Bank USA	USD	26,200	04/28/13		0.815			0.256	13		—		(121,862	)		(121,862	)
Goldman Sachs Bank USA	USD	37,000	05/23/13		0.779			0.256	13		—		(146,772	)		(146,772	)
Goldman Sachs Bank USA	USD	5,100	04/28/16		2.249			0.256	13		—		(169,798	)		(169,798	)
Goldman Sachs Bank USA	USD	2,300	05/23/21		0.256	13		3.328			—		88,664			88,664
Goldman Sachs Bank USA	USD	1,700	05/24/41		4.090			0.256	13		—		(89,560	)		(89,560	)
										$	—	$	(1,568,453	)	$	(1,568,453	)

¹³  Rate based on 3 Month LIBOR (USD on London Interbank Offered Rate).

^†  Payments made/received are based on the notional amount.

Credit default swaps on corporate issues—sell protection¹⁴

				Rate type
Counterparty	Notional amount (000)		Termination dates	Payments made by the Portfolio			Payments received by the Portfolio17			Upfront payments received		Value			Unrealized appreciation		Credit spread15
Credit Suisse First Boston	USD	2,200	09/20/16		—	16		1.000	%	$	29,863	$	(19,937	)	$	9,926		1.19	%

¹⁴  If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of the particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

¹⁵  Credit spreads, where available, represented in absolute terms, utilized in determining the market value as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity.

¹⁶  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Pacific Gas & Electric Co. bond, 4.800%, due 03/01/14.

¹⁷  Payments received are based on the notional amount.

38

PACE Select Advisors Trust

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2011

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
US government obligations	$	—		$	135,932,692		$	—	$	135,932,692
Federal farm credit bank certificate		—			6,297,810			—		6,297,810
Federal home loan bank certificate		—			2,336,507			—		2,336,507
Federal home loan mortgage corporation certificates		—			13,466,597			—		13,466,597
Federal national mortgage association certificates		—			25,609,052			—		25,609,052
Collateralized mortgage obligations		—			41,911,542			—		41,911,542
Asset-backed securities		—			41,550,931			—		41,550,931
Corporate notes		—			214,814,700			—		214,814,700
Non-US government obligations		—			5,913,374			—		5,913,374
Repurchase agreement		—			30,500,000			—		30,500,000
Options purchased		51,297			26			—		51,323
Investment of cash collateral from securities loaned		—			4,196,400			—		4,196,400
Futures contracts, net		(548,136	)		—			—		(548,136	)
Forward foreign currency contracts, net		—			46,773			—		46,773
Swap agreements, net		—			(1,588,390	)		—		(1,588,390	)
Total	$	(496,839	)	$	520,988,014		$	—	$	520,491,175

Issuer breakdown by country or territory of origin (unaudited)

	Percentage of total investments
United States		87.2	%
Canada		2.9
United Kingdom		2.8
Netherlands		1.3
Norway		1.2
Cayman Islands		0.8
Brazil		0.7
Switzerland		0.6
Israel		0.6
Russian Federation		0.4
Spain		0.4
Australia		0.4
Ireland		0.3
Japan		0.2
Mexico		0.1
Chile		0.1
Total		100.0	%

See accompanying notes to financial statements.
39

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 6.88%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 4.76%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Barclays Capital US Government/Credit Index (the "benchmark") returned 4.52%, and the Lipper Intermediate Investment Grade Debt Funds category posted a median return of 5.13%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 43. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisor's comments¹

The Portfolio outperformed its benchmark during the reporting period, helped by a focus on sectors that provided attractive risk-adjusted yields versus Treasuries. An emphasis on agency mortgage-backed securities ("MBS") was a contributor to performance, as this sector outperformed Treasuries during the reporting period. Within agency MBS, tactical coupon selection enhanced returns. Holdings of senior non-agency MBS were beneficial for the Portfolio, as the sector gained from limited supply in conjunction with strong investor demand for higher yielding assets.

An underweight to the corporate bond sector detracted from relative returns, as it outperformed like-duration Treasuries. This negative effect was partially offset by an allocation to high-yield corporate bonds, which outperformed investment-grade corporate bonds.

During the first half of the period, a longer-than-benchmark US duration had a negative impact on relative returns as US interest rates rose. A shorter-than-benchmark US duration during the second half of the period also detracted from relative returns, amid falling US interest rates. Duration exposure outside of the US, particularly in the UK, Australia and Canada, contributed to performance as interest rates fell in these markets over the period. (Duration measures a portfolio's sensitivity to interest rate changes.)

A number of derivative instruments were used during the reporting period. Interest rate swaps were used to adjust interest rate and yield curve exposures, as well as to substitute for physical securities. Credit default swaps were

PACE Select Advisors Trust – PACE Strategic Fixed Income Investments

Investment Sub-Advisor:

Pacific Investment Management Company LLC ("PIMCO")

Portfolio Manager:

Saumil H. Parikh

Objective:

Total return consisting of income and capital appreciation

Investment process:

The Portfolio invests primarily in investment grade fixed income securities of governmental and private issuers in the United States and foreign countries. Its duration (a measure of a portfolio's sensitivity to interest rate changes) is normally limited to within two years (plus or minus) of the effective duration of the Portfolio's benchmark index. PIMCO seeks to invest in the areas of the bond market it considers undervalued, based on such factors as quality, sector, coupon and maturity. PIMCO decides to buy or sell specific bonds based on an analysis of their values relative to other similar bonds. PIMCO monitors the prepayment experience of the Portfolio's mortgage-backed bonds, and will also buy and sell securities to adjust the average portfolio duration, credit quality, yield curve, sector and prepayment exposure, as appropriate.

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

40

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Sub-Advisor's comments – concluded

used to manage credit exposure in lieu of the direct buying or selling of securities. Options were primarily used to manage interest rate and volatility exposures, but they were also used to generate income in expected interest rate scenarios. Mortgage derivatives were used to manage portfolio duration or enhance yield. Government futures were used to adjust interest rate exposures and replicate government bond positions. Money market futures were used to manage exposures at the front end of the yield curve. Foreign exchange futures contracts were used to manage our currency exposures. Overall, the use of these derivatives was beneficial during the reporting period.

Special considerations

The Portfolio may be appropriate for long-term investors seeking total return consisting of income and capital appreciation and who are able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. In addition, investments in foreign bonds involve special risks. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.

41

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Strategic Fixed Income Investments Class P shares versus the Barclays Capital US Government/Credit Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. 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 illustration purposes only.

42

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		6.54	%		8.67	%		6.77	%
maximum sales charge	Class B2		5.82	%		7.86	%		6.29	%6
or PACE Select	Class C3		6.10	%		8.15	%		6.26	%
program fee	Class Y4		6.80	%		9.01	%		7.08	%
	Class P5		6.88	%		8.95	%		7.06	%
After deducting	Class A1		1.72	%		7.68	%		6.28	%
maximum sales charge	Class B2		0.82	%		7.56	%		6.29	%6
or PACE Select	Class C3		5.35	%		8.15	%		6.26	%
program fee	Class P5		4.76	%		6.79	%		4.94	%
Barclays Capital US Government/Credit Index7			4.52	%		6.48	%		5.68	%
Lipper Intermediate Investment Grade Debt Funds median			5.13	%		6.36	%		5.30	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 1.18%; 5-year period, 7.57%; 10-year period, 6.43%; Class B—1-year period, 0.27%; 5-year period, 7.45%; 10-year period, 6.43%; Class C—1-year period, 4.71%; 5-year period, 8.03%; 10-year period, 6.39%; Class Y—1-year period, 6.22%; 5-year period, 8.89%; 10-year period, 7.23%; Class P—1-year period, 4.11%; 5-year period, 6.66%; 10-year period, 5.07%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.09% and 1.06%; Class B—1.90% and 1.81%; Class C—1.56% and 1.56%; Class Y—0.85% and 0.81%; and Class P—0.87% and 0.81%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.06%; Class B—1.81%; Class C—1.56%; Class Y—0.81%; and Class P—0.81%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The Barclays Capital US Government/Credit Index is an unmanaged index which is composed of all investment-grade bonds that have at least one year to maturity. The Index's total return comprises price appreciation/depreciation and income as a percentage of the original investment. The Index is rebalanced monthly by market capitalization. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend  dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

43

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Weighted average duration		5.9 yrs.
Weighted average maturity		7.7 yrs.
Average coupon		4.07	%
Net assets (mm)	$	818.7
Number of holdings		305
Portfolio composition1	07/31/11
Bonds, notes and loan assignments		87.7	%
Preferred stock		0.8
Swaptions, futures, swaps and forward foreign currency contracts		0.3
Cash equivalents and other assets less liabilities		11.2
Total		100.0	%
Quality diversification1	07/31/11
US government and agency securities		40.4	%
AAA		5.6
AA		4.9
A		10.8
BBB		7.5
BB		6.8
B		1.6
Below B/non-rated		10.1
Preferred stock		0.8
Swaptions, futures, swaps and forward foreign currency contracts		0.3
Cash equivalents and other assets less liabilities		11.2
Total		100.0	%
Asset allocation1	07/31/11
Collateralized mortgage obligations		25.3	%
Corporate notes		24.8
US government obligations		21.0
Non-US government obligations		6.2
US government agency mortgage pass-through certificates		2.9
Municipal bonds and notes		2.8
Loan assignments		2.4
Asset-backed securities		2.3
Preferred stock		0.8
Swaptions, futures, swaps and forward foreign currency contracts		0.3
Cash equivalents and other assets less liabilities		11.2
Total		100.0	%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

44

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
US government obligations—21.02%
US Treasury Bonds 4.375%, due 05/15/41		5,900,000	$	6,141,546
8.000%, due 11/15/212		25,500,000		37,281,791
US Treasury Notes 1.500%, due 07/31/16		78,600,000		79,078,674
3.125%, due 05/15/21		48,300,000		49,620,522
Total US government obligations (cost—$169,408,594)				172,122,533
Government national mortgage association certificates—0.02%
GNMA 8.000%, due 06/15/17		30,020		33,535
8.000%, due 07/15/17		15,078		17,195
8.000%, due 09/15/17		19,091		21,236
8.000%, due 11/15/17		41,086		46,271
GNMA II ARM 2.125%, due 11/20/23		6,843		7,059
2.375%, due 01/20/26		15,638		16,181
2.625%, due 07/20/25		8,731		9,077
3.375%, due 05/20/26		26,219		27,193
Total government national mortgage association certificates (cost—$160,017)				177,747
Federal home loan mortgage corporation certificates*—0.21%
FHLMC 7.645%, due 05/01/25		1,317,437		1,515,053
FHLMC ARM 5.700%, due 03/01/36		172,550		186,780
Total federal home loan mortgage corporation certificates (cost—$1,493,882)				1,701,833
Federal housing administration certificates—0.01%
FHA GMAC 7.430%, due 06/01/21		40,698		40,698
FHA Reilly 7.430%, due 10/01/20		12,549		12,549
Total federal housing administration certificates (cost—$56,683)				53,247
Federal national mortgage association certificates*—2.66%
FNMA 3.500%, due 12/01/25		1,897,784		1,953,573
3.500%, due 11/01/40		321,497		314,719
3.500%, due 12/01/40		658,640		644,754
4.000%, due 02/01/41		992,627		1,009,544
5.396%, due 11/01/34		11,400,511		12,550,702
6.000%, due 10/01/36		51,954		57,429
6.000%, due 12/01/37		421,827		465,227

	Face amount1		Value
Federal national mortgage association certificates*—(Concluded)
FNMA ARM 1.678%, due 08/01/40		122,565	$	124,171
2.507%, due 05/01/27		41,941		44,321
2.522%, due 04/01/27		32,855		34,565
2.907%, due 05/01/30		118,219		124,186
5.158%, due 10/01/35		297,474		315,993
5.215%, due 09/01/35		287,946		307,462
5.332%, due 11/01/35		405,024		436,336
5.375%, due 01/01/36		420,351		452,558
5.513%, due 03/01/36		281,944		304,525
5.552%, due 01/01/36		228,032		244,213
5.603%, due 12/01/35		229,962		248,673
5.620%, due 02/01/36		489,652		529,049
5.633%, due 03/01/36		200,783		215,018
5.638%, due 03/01/36		305,033		329,500
5.728%, due 03/01/36		341,140		368,737
5.816%, due 06/01/36		69,986		75,950
FNMA ARM COFI 3.250%, due 11/01/26		93,610		92,674
FNMA TBA 6.000%		500,000		548,574
Total federal national mortgage association certificates (cost—$20,462,036)				21,792,453
Collateralized mortgage obligations—25.31%
ARM Trust, Series 2005-5, Class 2A1 2.886%, due 09/25/35		414,999		295,064
Banc of America Funding Corp., Series 2005-D, Class A1 2.758%, due 05/25/353		3,396,092		3,224,787
Series 2007-3, Class 2A1 5.500%, due 09/25/34		1,063,928		1,053,919
Banc of America Large Loan, Series 2010-HLTN, Class HLTN 1.937%, due 11/15/153,4		3,208,583		2,977,704
Series 2010-UB5, Class A4A 5.671%, due 02/17/513,4		2,500,000		2,745,196
Bank of America Mortgage Securities, Inc., Series 2002-G, Class 1A3 3.460%, due 07/20/323		6,648		6,201
Bear Stearns Alternative Loan Trust-A Trust, Series 2003-3, Class 1A 2.412%, due 10/25/333		40,047		31,758
Series 2004-9, Class 2A1 3.037%, due 09/25/343		1,020,568		742,347
Series 2005-7, Class 22A1 2.870%, due 09/25/353		1,562,299		1,108,754
Series 2006-1, Class 21A2 2.736%, due 02/25/363		1,587,654		653,058

45

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Collateralized mortgage obligations—(Continued)
Bear Stearns ARM Trust, Series 2003-1, Class 5A1 5.535%, due 04/25/33		32,867	$	31,568
Series 2003-1, Class 6A1 2.727%, due 04/25/33		95,628		85,113
Series 2003-5, Class 2A1 2.610%, due 08/25/33		615,788		587,543
Series 2004-3, Class 1A2 2.802%, due 07/25/34		479,375		396,183
Series 2004-6, Class 2A1 3.013%, due 09/25/34		2,204,759		1,848,615
Series 2004-7, Class 1A1 3.349%, due 10/25/34		597,630		470,254
Series 2004-9, Class 22A1 3.574%, due 11/25/34		65,974		61,651
Series 2005-2, Class A1 2.710%, due 03/25/35		2,052,696		1,890,228
Series 2005-5, Class A2 2.400%, due 08/25/35		3,584,689		3,208,817
Series 2005-9, Class A1 2.560%, due 10/25/35		1,618,363		1,383,723
Series 2005-10, Class A1 2.810%, due 10/25/35		503,612		497,886
Chase Mortgage Finance Corp., Series 2005-S3, Class A10 5.500%, due 11/25/35		3,227,000		2,931,497
Series 2007-S6, Class 2A1 5.500%, due 12/25/22		2,744,554		2,745,139
Citigroup Mortgage Loan Trust, Inc., Series 2005-4, Class A 5.326%, due 08/25/353		4,179,946		4,014,533
Series 2005-6, Class A2 2.450%, due 08/25/353		239,720		204,579
Series 2005-6, Class A3 2.100%, due 08/25/353		42,742		39,328
Series 2005-11, Class A1A 2.660%, due 12/25/353		1,044,358		916,499
Series 2006-AR1, Class 1A1 2.660%, due 10/25/353		5,398,169		4,345,585
Countrywide Alternative Loan Trust, Series 2003-J3, Class 2A1 6.250%, due 12/25/33		369,591		387,354
Series 2005-62, Class 2A1 1.263%, due 12/25/353		684,938		421,721
Series 2006-41CB, Class 1A9 6.000%, due 01/25/37		1,560,041		997,012
Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-R4, Class 2A 6.500%, due 01/25/343,4		1,363,412		1,379,609
Series 2004-12, Class 11A1 2.803%, due 08/25/343		767,396		560,622
Series 2004-12, Class 11A2 2.803%, due 08/25/343		493,326		373,550
Series 2004-12, Class 12A1 2.779%, due 08/25/343		182,134		143,611

	Face amount1		Value
Collateralized mortgage obligations—(Continued)
Series 2005-HYB9, Class 5A1 2.528%, due 02/20/363		463,893	$	320,637
FHLMC REMIC,* Series 1278, Class K 7.000%, due 05/15/22		97,542		109,458
Series 1367, Class KA 6.500%, due 09/15/22		1,982		2,235
Series 1502, Class PX 7.000%, due 04/15/23		535,937		613,546
Series 1503, Class PZ 7.000%, due 05/15/23		187,787		214,465
Series 1534, Class Z 5.000%, due 06/15/23		193,920		193,883
Series 1548, Class Z 7.000%, due 07/15/23		140,372		160,590
Series 1562, Class Z 7.000%, due 07/15/23		225,262		257,584
Series 1694, Class Z 6.500%, due 03/15/24		105,149		114,697
Series 2061, Class Z 6.500%, due 06/15/28		376,233		399,689
Series 2400, Class FQ 0.687%, due 01/15/323		182,590		182,670
Series 2579, Class DZ 5.000%, due 03/15/34		7,209,091		7,858,354
Series 2764, Class LZ 4.500%, due 03/15/34		2,780,220		2,795,371
Series 2764, Class ZG 5.500%, due 03/15/34		5,233,995		5,829,964
Series 2835, Class JZ 5.000%, due 08/15/34		3,272,532		3,586,324
Series 2921, Class PG 5.000%, due 01/15/35		6,200,000		6,724,120
Series 2983, Class TZ 6.000%, due 05/15/35		6,219,522		7,006,868
Series 3149, Class CZ 6.000%, due 05/15/36		8,661,573		9,888,600
Series G23, Class KZ 6.500%, due 11/25/23		147,630		168,795
Series T-054, Class 2A 6.500%, due 02/25/43		989,415		1,113,711
Series T-058, Class 2A 6.500%, due 09/25/43		3,685,913		4,241,411
Series T-075, Class A1 0.227%, due 12/25/363		2,152,711		2,139,732
First Horizon Mortgage Pass-Through Trust, Series 2005-AR3, Class 2A1 2.754%, due 08/25/353		112,043		92,305
FNMA REMIC,* Series 1991-065, Class Z 6.500%, due 06/25/21		8,574		9,465
Series 1992-040, Class ZC 7.000%, due 07/25/22		23,154		25,998
Series 1992-129, Class L 6.000%, due 07/25/22		10,834		12,076

46

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Collateralized mortgage obligations—(Continued)
Series 1993-037, Class PX 7.000%, due 03/25/23		29,803	$	33,871
Series 1993-060, Class Z 7.000%, due 05/25/23		162,735		185,735
Series 1993-065, Class ZZ 7.000%, due 06/25/13		74,193		76,586
Series 1993-070, Class Z 6.900%, due 05/25/23		25,824		29,426
Series 1993-096, Class PZ 7.000%, due 06/25/23		159,989		182,765
Series 1993-160, Class ZB 6.500%, due 09/25/23		55,929		57,702
Series 1993-163, Class ZB 7.000%, due 09/25/23		14,575		15,730
Series 1994-023, Class PX 6.000%, due 08/25/23		249,698		278,326
Series 1998-066, Class FG 0.487%, due 12/25/283		102,174		101,795
Series 1998-M7, Class Z 6.390%, due 05/25/36		7,665		7,660
Series 1999-W4, Class A9 6.250%, due 02/25/29		794,719		904,888
Series 2000-034, Class F 0.637%, due 10/25/303		14,124		14,070
Series 2002-080, Class A1 6.500%, due 11/25/42		1,846,633		1,994,941
Series 2003-064, Class AH 6.000%, due 07/25/33		9,789,714		10,986,444
Series 2003-106, Class US 8.794%, due 11/25/235,6		141,532		140,964
Series 2003-W8, Class 2A 7.000%, due 10/25/42		131,078		157,744
Series 2004-T1, Class 1A1 6.000%, due 01/25/44		2,233,307		2,489,352
Series 2004-W8, Class 2A 6.500%, due 06/25/44		2,089,175		2,397,982
Series 2005-024, Class ZE 5.000%, due 04/25/35		1,560,929		1,688,144
Series 2005-116, Class TZ 5.500%, due 01/25/36		7,471,754		8,324,891
Series 2005-120, Class ZU 5.500%, due 01/25/36		8,151,005		9,096,843
Series 2006-065, Class GD 6.000%, due 07/25/26		2,800,000		3,201,496
GNMA REMIC, Trust Series 2000-009, Class FG 0.787%, due 02/16/303		129,458		129,841
Trust Series 2002-031, Class FW 0.587%, due 06/16/313		132,474		132,588
Trust Series 2003-98, Class Z 6.000%, due 11/20/33		15,822,594		17,899,295
Trust Series 2005-26, Class ZA 5.500%, due 01/20/35		6,794,771		7,570,519
GS Mortgage Securities Corp. II, Series 2007-EOP, Class A1 1.142%, due 03/06/203,4		1,970,078		1,951,285

	Face amount1		Value
Collateralized mortgage obligations—(Continued)
GS Residential Mortgage Loan Trust, Series 2005-AR6, Class 2A1 2.780%, due 09/25/353		1,969,706		$1,848,900
Harborview Mortgage Loan Trust, Series 2004-11, Class 3A1A 0.537%, due 01/19/353		132,188		79,810
Series 2005-4, Class 3A1 2.770%, due 07/19/353		694,875		513,245
Housing Security, Inc., Series 1992-8, Class B 3.194%, due 06/25/243		262,229		253,734
Lehman Brothers Mortgage Trust, Series 1991-2, Class A3 8.460%, due 01/20/173,7		285,194		291,725
Residential Accredit Loans, Inc., Series 2006-Q03, Class A1 0.397%, due 04/25/463		1,985,073		878,629
Residential Asset Securitization Trust, Series 2006-A14C, Class 2A6 0.637%, due 12/25/363		1,745,506		609,452
Residential Funding Mortgage Security I, Series 2004-S2, Class A1 5.250%, due 03/25/34		158,015		158,632
Series 2004-S9, Class 1A23 5.500%, due 12/25/34		2,300,000		2,143,145
Sequoia Mortgage Trust, Series 2005-4, Class 2A1 2.780%, due 04/20/353		2,729,467		2,514,625
Small Business Administration, Series 1999-20K, Class 1 7.060%, due 11/01/19		296,591		329,560
Series 2000-20K, Class 1 7.220%, due 11/01/20		474,346		529,838
Series 2001-P10B, Class 1 6.344%, due 08/10/11		77,615		77,758
Series 2002-20K, Class 1 5.080%, due 11/01/22		2,325,767		2,511,596
Series 2003-20I, Class 1 5.130%, due 09/01/23		460,353		497,914
Series 2003-20L, Class 1 4.890%, due 12/01/23		1,237,638		1,344,363
Series 2004-P10A, Class 1 4.504%, due 02/10/14		1,298,772		1,364,018
Series 2005-20H, Class 1 5.110%, due 08/01/25		1,638,543		1,781,830
Series 2007-20D, Class 1 5.320%, due 04/01/27		4,725,529		5,179,437
Structured ARM Loan Trust, Series 2004-8, Class 3A 2.533%, due 07/25/34		1,361,711		1,209,391
Structured Asset Mortgage Investments, Inc., Series 2002-AR3, Class A1 0.847%, due 09/19/323		428,282		364,222

47

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Collateralized mortgage obligations—(Concluded)
Series 2006-AR3, Class 11A1 0.397%, due 04/25/363		4,947,905	$	3,108,576
Structured Asset Securities Corp., Series 2001-SB1, Class A2 3.375%, due 08/25/31		1,961,968		1,932,908
WaMu Mortgage Pass Through Certificates, Series 2002-AR6, Class A 1.663%, due 06/25/423		59,036		47,235
Series 2005-AR1, Class A1A 0.507%, due 01/25/453		157,875		127,197
Series 2005-AR2, Class 2A1A 0.497%, due 01/25/453		185,621		149,681
Series 2006-AR2, Class 2A1 5.675%, due 03/25/363		2,000,493		1,767,178
Series 2006-AR7, Class 3A 2.860%, due 07/25/463		2,841,487		2,059,782
Series 2006-AR9, Class 1A 1.263%, due 08/25/463		1,971,882		1,307,032
Series 2006-AR9, Class 2A 2.860%, due 08/25/463		1,543,370		1,157,518
Wells Fargo Mortgage Backed Securities Trust, Series 2003-M, Class A1 4.687%, due 12/25/333		837,827		845,070
Series 2004-CC, Class A1 4.903%, due 01/25/353		353,872		340,437
Series 2006-AR2, Class 2A1 2.747%, due 03/25/363		2,401,204		2,097,603
Series 2006-AR8, Class 1A1 2.802%, due 04/25/363		1,028,789		921,336
Total collateralized mortgage obligations (cost—$199,774,165)				207,217,816
Asset-backed securities—2.29%
Countrywide Asset-Backed Certificates, Series 2007-5, Class 2A1 0.287%, due 09/25/473		434,649		426,924
Credit Suisse Mortgage Capital Certificate 2010-UD1 5.946%, due 12/18/493,4		1,200,000		1,353,898
CSAB Mortgage Backed Trust, Series 2006-1, Class A6A 6.172%, due 06/25/368		730,111		436,526
Delta Funding Home Equity Loan Trust, Series 1999-003, Class A1A 1.027%, due 09/15/293		60,720		47,321
EFS Volunteer LLC, Series 2010-1, Class A1 1.103%, due 10/26/263,4		820,957		816,241
Landmark V CDO Ltd. Series 2005-1A, Class A1L 0.554%, due 06/01/173,4		2,760,119		2,683,909

	Face amount1		Value
Asset-backed securities—(Concluded)
Mid-State Trust Series 4, Class A 8.330%, due 04/01/30		275,669	$	284,404
SLC Student Loan Trust, Series 2008-2, Class A2 0.697%, due 06/15/173		6,470,222		6,465,966
SLM Student Loan Trust, Series 2008-9, Class A 1.753%, due 04/25/233		6,032,407		6,214,340
Total asset-backed securities (cost—$18,741,000)				18,729,529
Corporate notes—24.78%
Airlines—0.88%
American Airlines Pass Through Trust 2009-1A 10.375%, due 07/02/19		2,815,851		3,252,308
Continental Airlines Pass Through Trust 2009-2, Series A 7.250%, due 11/10/19		190,383		205,614
Northwest Airlines, Series 2000-1, Class G 7.150%, due 10/01/198		3,770,384		3,775,286
United Air Lines, 1991 Equipment Trust 10.360%, due 11/27/125		231,906		1,136
				7,234,344
Banking-non-US—4.39%
Banco Bradesco SA 2.361%, due 05/16/143,4		4,100,000		4,147,716
Banco Mercantil del Norte SA 4.375%, due 07/19/154		1,800,000		1,840,500
Banco Santander Brasil SA 2.347%, due 03/18/143,4		4,200,000		4,187,358
4.250%, due 01/14/164		3,500,000		3,543,505
Banco Votorantim SA 5.250%, due 02/11/164		3,800,000		3,904,500
Depfa ACS Bank 3.250%, due 02/15/129	EUR	5,500,000		7,891,084
Export-Import Bank of Korea 5.125%, due 06/29/20		400,000		415,652
5.875%, due 01/14/15		2,600,000		2,867,020
ICICI Bank Ltd. 5.000%, due 01/15/169		2,500,000		2,586,715
5.500%, due 03/25/154,10		3,000,000		3,167,916
6.625%, due 10/03/124		1,000,000		1,052,083
LBG Capital No.1 PLC 8.500%, due 12/17/213,4,11		400,000		374,000
				35,978,049
Banking-US—0.55%
Bank of America Corp. 5.750%, due 12/01/17		3,200,000		3,421,917
CIT Group, Inc. 7.000%, due 05/01/1410		724,973		730,411
JPMorgan Chase Bank N.A. 0.580%, due 06/13/163		400,000		372,349
				4,524,677

48

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate notes—(Continued)
Beverages—0.53%
Pernod-Ricard SA 5.750%, due 04/07/214		4,000,000	$	4,322,316
Chemicals—0.91%
Lyondell Chemical Co. 11.000%, due 05/01/18		6,600,000		7,474,500
Diversified financials—3.42%
American Express Co. 6.800%, due 09/01/663		3,800,000		3,914,000
Citigroup Capital XXI 8.300%, due 12/21/573		2,700,000		2,774,250
Goldman Sachs Group, Inc. 0.653%, due 07/22/153		300,000		286,267
0.697%, due 03/22/163		1,200,000		1,130,060
0.746%, due 01/12/153		1,100,000		1,062,078
3.700%, due 08/01/15		1,700,000		1,750,427
5.150%, due 01/15/14		4,500,000		4,847,990
5.950%, due 01/18/18		3,200,000		3,490,595
Lehman Brothers Holdings, Inc. MTN 5.625%, due 01/24/1312		4,500,000		1,215,000
Merrill Lynch & Co. MTN 6.875%, due 04/25/18		6,700,000		7,497,581
				27,968,248
Diversified operations—0.49%
Sinochem Overseas Capital Co. Ltd. 4.500%, due 11/12/204		1,900,000		1,892,332
6.300%, due 11/12/404		2,000,000		2,075,640
				3,967,972
Electric utilities—0.24%
PSE&G Power LLC 5.000%, due 04/01/14		1,800,000		1,939,225
Electric-generation—0.85%
Korea Hydro & Nuclear Power Co. Ltd. 6.250%, due 06/17/144		6,278,000		6,870,518
6.250%, due 06/17/149		100,000		109,438
				6,979,956
Electric-integrated—1.03%
Centrais Eletricas Brasileiras SA 6.875%, due 07/30/194,10		200,000		231,000
Puget Energy, Inc. 6.500%, due 12/15/20		7,600,000		8,161,412
				8,392,412
Finance-noncaptive diversified—0.76%
Ford Motor Credit Co. LLC 2.996%, due 01/13/123		233,000		233,899
7.500%, due 08/01/12		200,000		209,480
8.000%, due 06/01/14		1,100,000		1,222,644
8.700%, due 10/01/14		4,000,000		4,592,428
				6,258,451

	Face amount1		Value
Corporate notes—(Continued)
Financial services—4.15%
Ally Financial, Inc. 3.466%, due 02/11/143		1,100,000	$	1,081,402
3.647%, due 06/20/143		2,900,000		2,836,931
6.000%, due 12/15/11		3,000,000		3,056,250
6.625%, due 05/15/12		400,000		409,000
Citigroup, Inc. 1.961%, due 05/15/183		900,000		902,912
2.262%, due 08/13/133		1,000,000		1,015,168
4.587%, due 12/15/15		400,000		426,834
8.500%, due 05/22/19		6,400,000		8,042,701
HSBC Finance Corp. 6.676%, due 01/15/214		1,400,000		1,482,670
Morgan Stanley 1.853%, due 01/24/143		1,000,000		998,906
7.300%, due 05/13/19		6,370,000		7,324,665
Morgan Stanley MTN 6.000%, due 04/28/15		3,100,000		3,408,013
SLM Corp. MTN 5.125%, due 08/27/12		1,400,000		1,435,164
SLM Corp., Series A MTN 5.000%, due 10/01/13		700,000		726,019
5.375%, due 01/15/13		800,000		826,668
				33,973,303
Health care—0.90%
HCA, Inc. 9.250%, due 11/15/16		3,800,000		4,054,125
9.625%, due 11/15/1613		3,100,000		3,317,000
				7,371,125
Insurance—3.23%
American International Group, Inc. 8.175%, due 05/15/583		6,400,000		6,976,000
8.250%, due 08/15/18		4,100,000		4,859,709
8.625%, due 05/22/383,9	GBP	1,600,000		2,672,283
American International Group, Inc. MTN 4.000%, due 09/20/11	EUR	1,500,000		2,157,060
Progressive Corp. 6.700%, due 06/15/373		2,800,000		2,891,000
Prudential Financial, Inc. MTN 6.000%, due 12/01/17		6,000,000		6,903,972
				26,460,024
Media—0.19%
Historic TW, Inc. 9.125%, due 01/15/13		1,400,000		1,550,724
Media-cable—0.02%
DISH DBS Corp. 6.375%, due 10/01/11		200,000		201,500
Oil refining—0.04%
Valero Energy Corp. 6.625%, due 06/15/37		300,000		325,407

49

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate notes—(Concluded)
Oil services—0.32%
BP Capital Markets PLC 3.625%, due 05/08/14		200,000	$	211,740
BP Capital Markets PLC MTN 2.750%, due 02/27/12		200,000		202,473
El Paso Corp. 7.000%, due 06/15/17		1,700,000		1,968,756
TNK-BP Finance SA 7.875%, due 03/13/189		200,000		231,000
				2,613,969
Paper & forest products—0.07%
Celulosa Arauco y Constitucion SA 7.250%, due 07/29/19		500,000		587,635
Paper & packaging—0.39%
Georgia-Pacific LLC 9.500%, due 12/01/11		3,100,000		3,172,208
Retail—0.45%
Macy's Retail Holdings, Inc. 8.125%, due 07/15/158		3,100,000		3,708,276
Special purpose entity—0.25%
IPIC GMTN Ltd. 3.125%, due 11/15/154		2,000,000		2,030,999
Steel producers/products—0.17%
CSN Resources SA 6.500%, due 07/21/204		1,000,000		1,075,000
GTL Trade Finance, Inc. 7.250%, due 10/20/174		300,000		336,000
				1,411,000
Tobacco—0.22%
Reynolds American, Inc. 7.250%, due 06/15/37		1,600,000		1,777,859
Wireless telecommunications—0.33%
America Movil SAB de CV 3.625%, due 03/30/15		2,500,000		2,662,805
Total corporate notes (cost—$193,359,372)				202,886,984
Loan assignments3—2.43%
Airlines—0.36%
United Air Lines, Inc. Tranche A Revolver 0.375%, due 09/30/11		3,000,000		2,966,400
Auto & truck—0.13%
Ford Motor Co., Term Loan B1 2.940%, due 08/15/11		1,082,741		1,081,334
Banking-US—0.31%
CIT Group, Inc. Term Loan 3 6.250%, due 08/15/11		2,500,000		2,503,575
Cable—0.36%
Charter Communications Operating, LLC Extended Term Loan 3.500%, due 09/30/11		2,977,330		2,959,972

	Face amount1		Value
Loan assignments3—(Concluded)
Diversified financials—0.46%
First Data Corp. Term Loan B2 2.937%, due 08/24/11		876,768	$	815,517
Springleaf Finance Corp. Term Loan 5.500%, due 08/11/11		3,000,000		2,925,000
				3,740,517
Health care—0.74%
Biomet, Inc. Term Loan B 3.187%, due 08/25/11		902,305		890,088
3.187%, due 08/31/11		136,761		134,909
3.247%, due 09/26/11		2,721,860		2,685,006
Fresenius Medical Care Holdings, Inc. Tranche B Term Loan 1.621%, due 09/30/11		2,398,996		2,383,762
				6,093,765
Paper & packaging—0.07%
Georgia-Pacific Corp. New Term Loan B 2.246%, due 08/31/11		11,013		10,993
2.250%, due 08/10/11		533,428		532,479
				543,472
Total loan assignments (cost—$19,861,634)				19,889,035
Non-US government obligations—6.17%
Canadian Government Bond 3.250%, due 06/01/21	CAD	3,000,000		3,263,907
Emirate of Abu Dhabi 6.750%, due 04/08/194,10		2,300,000		2,748,500
Federal Republic of Brazil 5.875%, due 01/15/19		3,400,000		3,964,400
Government of Norway 6.500%, due 05/15/13	NOK	25,687,000		5,121,843
Mexican Bonos, Series M 10.000%, due 12/05/24	MXN	12,500,000		1,349,042
Notas do Tesouro Nacional, Series F 10.000%, due 01/01/12	BRL	1,356,000		865,515
10.000%, due 01/01/13	BRL	783,000		487,897
10.000%, due 01/01/14	BRL	787,000		478,765
10.000%, due 01/01/17	BRL	28,400,000		16,372,070
State of Qatar 4.000%, due 01/20/154		4,300,000		4,566,600
5.250%, due 01/20/204		2,100,000		2,304,750
6.400%, due 01/20/404		200,000		228,000
United Kingdom Treasury Bonds 4.000%, due 09/07/16	GBP	4,800,000		8,745,258
Total non-US government obligations (cost—$46,967,344)				50,496,547

50

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Municipal bonds and notes—2.82%
Education—1.29%
Clark County School District, Limited Tax (Building), Series A 5.000%, due 06/15/19		300,000	$	332,847
Los Angeles Unified School District Refunding, Series A-1 (NATL-RE Insured) 4.500%, due 07/01/25		3,200,000		3,218,912
4.500%, due 01/01/28		3,800,000		3,688,166
New York City Transitional Finance Authority Building Aid Revenue Fiscal 2008, Series S-1 5.000%, due 01/15/25		100,000		104,938
University of Toledo General Receipts Bonds (Build America Bonds) 6.750%, due 06/01/22		2,000,000		2,201,840
Will County Community High School District No. 210 Lincoln-Way (Capital Appreciation) (AGM Insured) 4.980%, due 01/01/2114		1,600,000		1,012,112
				10,558,815
General obligation—0.37%
California State Build America Bonds 7.500%, due 04/01/34		1,400,000		1,712,158
Cook County Build America Bonds (Recovery Zone Economic Development) 6.360%, due 11/15/33		1,200,000		1,302,324
				3,014,482
Tobacco—0.20%
Buckeye Tobacco Settlement Financing Authority (Asset Backed Series Turbo), Series A-2 5.875%, due 06/01/47		500,000		368,335
Tobacco Settlement Funding Corp., Louisiana, Series 2001-B 5.875%, due 05/15/39		1,075,000		1,062,552
Tobacco Settlement Funding Corp., Rhode Island, Series A 6.250%, due 06/01/42		200,000		187,812
				1,618,699
Transportation—0.72%
Bay Area Toll Authority Toll Bridge Revenue (Build America Bonds) 6.263%, due 04/01/49		1,500,000		1,741,020

	Face amount1		Value
Municipal bonds and notes—(Concluded)
Transportation—(Concluded)
Harris County Metropolitan Transportation Authority (Build America Bonds), Series C 6.875%, due 11/01/38		3,100,000	$	3,373,916
Port Authority of New York & New Jersey Consolidated (One Hundred Fifty-Eight) 5.859%, due 12/01/24		700,000		816,067
				5,931,003
Utilities—0.24%
Cincinnati Water System Revenue (Build America Bonds), Series B 6.458%, due 12/01/34		100,000		106,329
Metropolitan Water District Southern California (Build America Bonds) 5.906%, due 07/01/25		1,700,000		1,846,404
				1,952,733
Total municipal bonds and notes (cost—$20,984,995)				23,075,732
	Number of shares
Preferred stock15—0.83%
Commercial banks—0.83%
Wells Fargo & Co. (cost—$3,810,820)		6,400		6,794,880
	Face amount1
Certificate of deposit—0.46%
Banking-non-US—0.46%
Banco Bradesco SA 1.955%, due 01/24/135,16 (cost—$3,800,000)		3,800,000		3,800,000
Short-term US government obligation17—3.59%
US Treasury Bills 0.164%, due 09/01/11 (cost—$29,399,620)		29,400,000		29,399,620
Repurchase agreements—15.82%
Repurchase agreement dated 07/29/11 with Citigroup Global Markets, Inc., 0.170% due 08/01/11, collateralized by $16,775,000 US Treasury Notes, 0.750% due 09/15/13; (value—$16,956,197); proceeds: $16,600,235		16,600,000		16,600,000

51

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Repurchase agreements—(Continued)
Repurchase agreement dated 07/29/11 with Citigroup Global Markets, Inc., 0.200% due 08/01/11, collateralized by $6,705,000 Federal National Mortgage Association obligations, 3.650% due 12/08/20; (value—$6,757,189); proceeds: $6,600,110		6,600,000	$	6,600,000
Repurchase agreement dated 07/29/11 with Credit Suisse Securities (USA) LLC, 0.170% due 08/01/11, collateralized by $3,548,000 US Treasury Notes, 1.000% due 03/31/12; (value—$3,577,802); proceeds: $3,500,050		3,500,000		3,500,000
Repurchase agreement dated 07/29/11 with Deutsche Bank Securities, Inc., 0.170% due 08/01/11, collateralized by $38,792,000 US Treasury Inflation Index Bonds, 3.000% due 07/15/12; (value—$50,848,750); proceeds: $49,700,704		49,700,000		49,700,000
Repurchase agreement dated 07/29/11 with Goldman Sachs & Co., 0.220% due 08/01/11, collateralized by $9,662,000 Federal National Mortgage Association obligations, 5.000% due 04/01/41; (value—$10,342,701); proceeds: $10,000,183		10,000,000		10,000,000
Repurchase agreement dated 07/29/11 with JPMorgan Securities LLC, 0.200% due 08/01/11, collateralized by $9,815,000 Federal Farm Credit Bank obligations, 2.270% due 12/24/13; (value—$10,244,534); proceeds: $10,000,167		10,000,000		10,000,000

	Face amount1		Value
Repurchase agreements—(Concluded)
Repurchase agreement dated 07/29/11 with Morgan Stanley & Co., 0.170% due 08/01/11, collateralized by $27,556,500 US Treasury Notes, 2.625% due 12/31/14; (value—$29,419,185); proceeds: $28,400,402		28,400,000	$	28,400,000
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $23,608 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $3,393,142 US Treasury Bills, zero coupon due 08/04/11 and $1,338,248 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$4,839,951); proceeds: $4,745,004		4,745,000		4,745,000
Total repurchase agreements (cost—$129,545,000)				129,545,000
	Number of shares
Investment of cash collateral from securities loaned—0.54%
Money market fund—0.54%
UBS Private Money Market Fund LLC18 (cost—$4,383,525)		4,383,525		4,383,525
Total investments (cost—$862,208,687)—108.96%				892,066,481
Liabilities in excess of other assets—(8.96)%				(73,367,080	)
Net assets—100.00%			$	818,699,401

Aggregate cost for federal income tax purposes was $862,613,887; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	42,641,650
Gross unrealized depreciation		(13,189,056	)
Net unrealized appreciation	$	29,452,594

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

52

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

¹  In US Dollars unless otherwise indicated.

²  Partial amount delivered to broker as collateral for futures transactions.

³  Variable or floating rate security. The interest rate shown is the current rate as of July 31, 2011 and changes periodically.

⁴  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 8.10% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁵  Illiquid securities representing 0.47% of net assets as of July 31, 2011.

⁶  Inverse variable rate security. The interest rate shown is the current rate as of July 31, 2011, and changes periodically.

⁷  Security is being fair valued by a valuation committee under the direction of the board of trustees.

⁸  Step bond that converts to the noted fixed rate at a designated future date.

⁹  Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At July 31, 2011, the value of these securities amounted to 1.65% of net assets.

¹⁰  Security, or portion thereof, was on loan at July 31, 2011.

¹¹  Perpetual bond security. The maturity date reflects the next call date.

¹²  Bond interest in default.

¹³  Payment-in-kind security for which interest may be paid in cash or additional securities, at the discretion of the issuer.

¹⁴  Zero coupon bond. The interest rate represents annualized yield at date of purchase.

¹⁵  Non cumulative preferred stock. Convertible until 12/31/49.

¹⁶  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security, which represents 0.46% of net assets as of July 31, 2011, is considered illiquid and restricted.

Illiquid & restricted security	Acquisition date	Acquisition cost		Acquisition cost as a percentage of net assets			Value at 07/31/11		Value as a percentage of net assets
Banco Bradesco SA	01/19/11	$	3,800,000		0.46	%	$	3,800,000		0.46	%

¹⁷  Rate shown is the discount rate at date of purchase.

¹⁸  The table below details the Portfolios's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	196,020	$	490,644,508	$	486,457,003	$	4,383,525	$	2,888

Written options

Written option activity for the year ended July 31, 2011 was as follows:

	Number of contracts			Premiums received
Options outstanding at July 31, 2010	$	—		$	—
Options written		2,713			1,215,312
Options terminated in closing purchase transactions		(2,713	)		(1,215,312	)
Options outstanding at July 31, 2011	$	—		$	—

Swaptions⁵

Notional amount (000)

Put options written

Counterparty

Pay/ receive floating date

Expiration

Premiums received

Current value

Unrealized appreciation

$

60,000

USD 3 Month LIBOR19 Interest

Rate Swap, strike @ 2.250%;

underlying interest rate swap

terminating 09/26/14

Royal Bank of Scotland PLC

Pay

09/24/12

$

318,000

$

(131,358

)

$

186,642

¹⁹  3 Month LIBOR (USD on London Interbank Offered Rate) at July 31, 2011 was 0.256%.

53

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

Swaption activity for the year ended July 31, 2011 was as follows:

	Premiums received
Swaptions outstanding at July 31, 2010	$	707,790
Swaptions written		608,600
Swaptions terminated in closing purchase transactions		(998,390	)
Swaptions outstanding at July 31, 2011	$	318,000

Futures contracts

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation
Interest rate futures buy contracts:
	221	GBP	3 Month GBP LIBOR20 Interest Rate Swap Futures	March 2013	$	44,525,932	$	44,761,461	$	235,529
	113	GBP	3 Month GBP LIBOR20 Interest Rate Swap Futures	June 2013		22,822,300		22,854,621		32,321
	321	USD	90 Day Euro Dollar Futures	June 2013		78,966,549		79,467,563		501,014
	621	USD	90 Day Euro Dollar Futures	September 2013		152,534,342		153,441,337		906,995
	626	USD	90 Day Euro Dollar Futures	December 2013		153,856,220		154,301,175		444,955
	752	USD	90 Day Euro Dollar Futures	March 2014		184,307,274		184,898,000		590,726
	788	USD	90 Day Euro Dollar Futures	June 2014		192,427,969		193,237,300		809,331
	325	USD	90 Day Euro Dollar Futures	September 2014		79,284,452		79,486,875		202,423
	315	USD	90 Day Euro Dollar Futures	March 2016		75,396,038		75,903,188		507,150
					$	984,121,076	$	988,351,520	$	4,230,444

²⁰  3 Months LIBOR (GBP on London Interbank Offered Rate) at July 31, 2011 was 0.833%

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Bank of America N.A.	AUD	235,000	USD	256,150	08/31/11	$	(1,113	)
Barclays Bank PLC	CAD	5,565,000	USD	5,738,356	09/19/11		(79,996	)
Barclays Bank PLC	GBP	90,000	USD	146,972	08/03/11		(758	)
Barclays Bank PLC	GBP	7,107,000	USD	11,505,958	09/13/11		(154,728	)
Barclays Bank PLC	JPY	40,750,000	USD	523,988	08/04/11		(5,350	)
Barclays Bank PLC	MXN	10,093,041	USD	859,531	11/18/11		7,986
Barclays Bank PLC	USD	391,060	SGD	500,000	09/09/11		24,221
Barclays Capital	BRL	773,712	USD	480,000	08/02/11		(18,895	)
Barclays Capital	BRL	29,170,827	USD	18,127,534	09/02/11		(532,242	)
Barclays Capital	MYR	11,931,480	USD	3,930,000	08/11/11		(87,329	)
Barclays Capital	USD	18,243,169	BRL	29,170,827	08/02/11		566,405
Barclays Capital	USD	1,900,000	IDR	17,474,300,000	10/31/11		131,856
Barclays Capital	USD	11,064,896	INR	508,607,930	08/12/11		423,708
Barclays Capital	USD	614,955	MYR	1,900,000	08/11/11		24,775
Citibank N.A.	AUD	290,000	USD	319,481	08/03/11		887
Citibank N.A.	JPY	1,232,757,000	USD	15,341,099	10/17/11		(686,038	)
Citibank N.A.	NOK	11,321,000	USD	2,091,059	08/08/11		(10,781	)
Citibank N.A.	TWD	2,548,048	USD	88,829	01/11/12		173
Citibank N.A.	USD	1,183,035	MYR	3,650,000	08/11/11		45,920

54

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(Concluded)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Citibank N.A.	USD	1,602,746	MYR	4,779,390	11/10/11	$	(4,357	)
Citibank N.A.	USD	1,016,561	SGD	1,300,000	09/09/11		63,171
Credit Suisse London Branch	EUR	9,279,000	USD	12,955,804	10/19/11		(352,012	)
Credit Suisse London Branch	USD	2,627,723	CAD	2,484,000	09/19/11		(30,637	)
Credit Suisse London Branch	USD	302,218	NOK	1,670,000	08/08/11		7,832
Deutsche Bank AG London	IDR	34,760,850,000	USD	3,930,000	10/31/11		(111,881	)
Deutsche Bank AG London	MXN	5,672,796	USD	483,182	11/18/11		4,571
Deutsche Bank AG London	USD	10,400,000	CNY	62,712,000	01/28/15		(134,351	)
Deutsche Bank AG London	USD	1,100,000	CNY	6,523,000	04/07/16		(11,532	)
Deutsche Bank AG London	USD	100,000	IDR	878,700,000	01/31/12		911
Deutsche Bank AG London	USD	440,642	INR	20,600,000	08/12/11		24,678
Deutsche Bank AG London	USD	10,708,787	NOK	56,476,000	08/08/11		(223,534	)
Deutsche Bank AG London	USD	470,459	SGD	600,000	09/09/11		27,879
Deutsche Bank AG London	USD	3,800,000	TWD	108,186,000	01/11/12		(35,823	)
Goldman Sachs International	TWD	104,895,000	USD	3,700,000	01/11/12		50,329
Goldman Sachs International	USD	390,000	KRW	426,036,000	08/12/11		13,803
HSBC Bank USA	BRL	164,070	USD	100,000	08/02/11		(5,794	)
HSBC Bank USA	BRL	519,456	USD	320,000	09/02/11		(12,282	)
HSBC Bank USA	NOK	44,264,000	USD	8,205,242	08/08/11		(12,748	)
HSBC Bank USA	USD	149,138	BRL	245,585	09/02/11		7,956
HSBC Bank USA	USD	360,158	MYR	1,108,385	08/11/11		13,036
JPMorgan Chase Bank	INR	529,207,930	USD	11,815,664	08/12/11		(138,260	)
JPMorgan Chase Bank	KRW	483,075,000	USD	455,882	08/12/11		(1,984	)
JPMorgan Chase Bank	USD	5,860,000	CNY	34,779,100	04/07/16		(56,543	)
JPMorgan Chase Bank	USD	7,709,035	INR	358,315,930	07/12/12		(2,676	)
JPMorgan Chase Bank	USD	51,941	KRW	57,039,000	08/12/11		2,121
JPMorgan Chase Bank	USD	453,421	KRW	483,075,000	11/14/11		1,576
JPMorgan Chase Bank	USD	194,710	MYR	600,000	08/11/11		7,310
JPMorgan Chase Bank	USD	1,152,202	SGD	1,471,059	09/09/11		69,605
Morgan Stanley & Co., Inc.	EUR	9,280,000	USD	12,931,680	10/19/11		(377,570	)
Morgan Stanley & Co., Inc.	MXN	318,429	USD	27,145	11/18/11		280
Morgan Stanley & Co., Inc.	SGD	5,176,474	USD	4,206,785	09/09/11		(92,605	)
Royal Bank of Scotland PLC	BRL	28,233,045	USD	17,516,469	08/02/11		(688,415	)
Royal Bank of Scotland PLC	NOK	29,964,000	USD	5,526,884	08/08/11		(36,189	)
Royal Bank of Scotland PLC	USD	1,867,239	IDR	17,514,700,000	10/31/11		169,315
Royal Bank of Scotland PLC	USD	1,016,457	SGD	1,300,000	09/09/11		63,276
						$	(2,152,843	)

55

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

Interest rate swaps

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio†			Payments received by the Portfolio†			Upfront payments received (made)			Value			Unrealized appreciation (depreciation)
Barclays Bank PLC	AUD	5,000	12/15/20		5.015	%21		6.000	%	$	(10,670	)	$	205,326		$	194,656
Barclays Bank PLC	AUD	10,700	12/15/20		5.01521			6.000			121,681			439,397			561,078
Barclays Bank PLC	BRL	35,800	01/02/14		12.40022			12.510			—			(112,070	)		(112,070	)
Citibank N.A.	AUD	8,700	12/15/21		5.01521			5.750			91,616			142,465			234,081
										$	202,627		$	675,118		$	877,745

²¹  Rate based on 6 Month LIBOR (AUD on Interbank Offered Rate).

²²  Rate based on the Brazil CETIP (Central of Custody and Settlement of Private Bonds) Interbank Deposit Rate

^†  Payments made/received are based on the notional amount.

Inflation swaps

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio†			Payments received by the Portfolio†		Upfront payments received (made)		Value		Unrealized appreciation
Barclays Bank PLC	USD	9,000	01/15/21		2.680	%		—23		—	$	165,549	$	165,549

²³  Rate based on CPI Urban Consumers NSA.

^†  Payments made/received are based on the notional amount.

Credit default swaps on corporate issues—buy protection²⁴

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio25			Payments received by the Portfolio		Upfront payments made		Value			Unrealized appreciation (depreciation)
Barclays Bank PLC	USD	3,100	09/20/15		7.150	%		—26		—	$	(781,455	)	$	(781,455	)
Citibank N.A.	USD	300	12/20/13		3.400			—27		—		(20,729	)		(20,729	)
Credit Suisse First Boston	USD	1,400	03/20/13		1.450			—28		—		(29,139	)		(29,139	)
Deutsche Bank AG	USD	3,200	12/20/17		1.020			—29		—		160,712			160,712
										—	$	(670,611	)	$	(670,611	)

²⁴  If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of the particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or (ii) received a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

²⁵  Payments made are based on the notional amount.

²⁶  Payment from the counterparty will be received upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Macy's Retail Holdings, Inc. bond, 8.375%, due 07/15/15.

²⁷  Payment from the counterparty will be received upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Valero Energy Corp. bond, 8.750%, due 06/15/30.

²⁸  Payment from the counterparty will be received upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Time Warner, Inc. bond, 9.125%, due 01/15/13

²⁹  Payment from the counterparty will be received upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Bank of America Corp. bond, 5.750%, due 12/01/17.

56

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

Credit default swaps on corporate and soverign issues—sell protection³⁰

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio		Payments received by the Portfolio33			Upfront payments received (made)			Value			Unrealized appreciation (depreciation)			Credit spread31
Bank of America N.A.	USD	3,500	06/20/16		—32		1.000	%	$	16,827		$	(86,353	)	$	(69,526	)		1.54	%
Barclays Bank PLC	EUR	300	06/20/12		—34		1.000			32,958			3,251			36,209			0.16
Barclays Bank PLC	EUR	500	06/20/15		—34		1.000			75,251			10,001			85,252			0.63
Barclays Bank PLC	USD	3,900	03/20/13		—35		2.030			—			91,181			91,181			0.61
Barclays Bank PLC	USD	5,500	06/20/16		—36		1.000			15,937			(29,075	)		(13,138	)		1.11
Citibank N.A.	USD	1,800	03/20/14		—37		5.000			88,920			197,186			286,106			0.82
Citibank N.A.	USD	200	06/20/15		—34		5.000			(3,642	)		33,308			29,666			0.63
Credit Suisse First Boston	USD	1,200	06/20/15		—34		5.000			(18,409	)		199,849			181,440			0.63
Deutsche Bank AG	USD	3,000	03/20/13		—35		2.073			—			72,269			72,269			0.61
Deutsche Bank AG	USD	800	03/20/15		—38		1.000			(13,030	)		16,691			3,661			0.42
Deutsche Bank AG	USD	700	06/20/15		—34		5.000			(24,474	)		116,578			92,104			0.63
Deutsche Bank AG	USD	900	03/20/16		—38		1.000			(20,248	)		19,334			(914	)		0.53
HSBC Bank USA	USD	7,800	09/20/11		—39		1.000			(12,142	)		4,923			(7,219	)		0.58
									$	137,948		$	649,143		$	787,091

³⁰  If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of the particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

³¹  Credit spreads, where available, represented in absolute terms, utilized in determining the market value as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative or other credit event occurring. The credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity.

³²  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the General Electric Capital Corp. bond, 5.625%, due 09/15/17.

³³  Payments received are based on the notional amount.

³⁴  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the BP Capital Markets America bond, 4.200%, due 06/15/18.

³⁵  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the MetLife, Inc. bond, 5.000%, due 06/15/15.

³⁶  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Federal Republic of Brazil bond, 12.250%, due 03/06/30.

³⁷  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the El Paso Corp. bond, 6.875%, due 06/15/14.

³⁸  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Australian Government bond, 6.500%, due 05/15/13.

³⁹  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Export-Import Bank of Korea bond, 5.250%, due 02/10/14.

57

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
US government obligations	$	—	$	172,122,533		$	—	$	172,122,533
Government national mortgage association certificates		—		177,747			—		177,747
Federal home loan mortgage corporation certificates		—		186,780			1,515,053		1,701,833
Federal housing administration certificates		—		—			53,247		53,247
Federal national mortgage association certificates		—		21,699,779			92,674		21,792,453
Collateralized mortgage obligations		—		206,926,091			291,725		207,217,816
Asset-backed securities		—		18,729,529			—		18,729,529
Corporate notes		—		202,886,984			—		202,886,984
Loan assignments		—		19,889,035			—		19,889,035
Non-US government obligations		—		50,496,547			—		50,496,547
Municipal bonds and notes		—		23,075,732			—		23,075,732
Preferred stock		6,794,880		—			—		6,794,880
Certificate of deposit		—		3,800,000			—		3,800,000
Short-term US government obligation		—		29,399,620			—		29,399,620
Repurchase agreements		—		129,545,000			—		129,545,000
Investment of cash collateral from securities loaned		—		4,383,525			—		4,383,525
Swaptions, net		—		(131,358	)		—		(131,358	)
Futures contracts, net		4,230,444		—			—		4,230,444
Forward foreign currency contracts, net		—		(2,152,843	)		—		(2,152,843	)
Swap agreements, net		—		819,199			—		819,199
Total	$	11,025,324	$	881,853,900		$	1,952,699	$	894,831,923

The following is a rollforward of the Portfolio's investments that were valued using unobservable inputs (Level 3) for the year ended July 31, 2011:

	Federal home loan mortgage corporation certificates			Federal housing administration certificates			Federal national mortgage association certificates			Collateralized mortgage obligations			Total
Beginning balance	$	1,464,731		$	57,642		$	117,773		$	356,174		$	1,996,320
Purchases		—			44,746			—			—			44,746
Sales		(49,904	)		(49,411	)		(25,353	)		(53,126	)		(177,794	)
Accrued discounts/(premiums)		—			(54	)		—			—			(54	)
Total realized gain/(loss)		—			—			—			—			—
Net change in unrealized appreciation/depreciation		100,226			324			254			(11,323	)		89,481
Transfers in to Level 3		—			—			—			—			—
Transfers out of Level 3		—			—			—			—			—
Ending balance	$	1,515,053		$	53,247		$	92,674		$	291,725		$	1,952,699

The change in unrealized appreciation/depreciation relating to the Level 3 investments held at July 31, 2011 was $89,481.

58

PACE Select Advisors Trust

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2011

Issuer breakdown by country or territory of origin (unaudited)

	Percentage of total investments
United States		87.1	%
Brazil		4.7
South Korea		1.2
United Kingdom		1.1
Ireland		0.9
Qatar		0.8
India		0.8
Mexico		0.7
Norway		0.6
France		0.5
British Virgin Islands		0.5
Canada		0.4
United Arab Emirates		0.3
Cayman Islands		0.2
Luxembourg		0.1
Chile		0.1
Total		100.0	%

See accompanying notes to financial statements.
59

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 3.67%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 1.62%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Barclays Capital US Municipal 3-15 Year Blend Index (the "benchmark") returned 3.56%, and the Lipper Intermediate Municipal Debt Funds category posted a median return of 2.97%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 63. Please note that the returns shown do not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisor's comments¹

During the reporting period, the Portfolio outperformed its benchmark, largely due to favorable sector and security selection. Yield curve exposure was also beneficial, while the Portfolio maintained a relatively neutral duration posture. (Duration measures a portfolio's sensitivity to interest rate changes.) The municipal bond market rallied strongly during the latter half of the reporting period amidst a favorable backdrop of relatively light new issue supply, steady retail investor demand and improving municipal credit quality, particularly among states where tax revenues exhibited a consistent trend of positive growth. Adding pressure to the market were massive municipal mutual fund redemptions experienced from November 2010 to January 2011. However, demand for municipal securities reversed course and stabilized during the second half of the period.

Investor willingness to take on more risk in order to earn higher income in the low yield environment resulted in the strongest demand and returns to be achieved among intermediate maturity (primarily five to 15 years) and lower rated A and BBB municipal securities. Our overweight to A-rated revenue bonds, which provide attractive excess yield versus higher grade securities, was a positive contributor to relative performance. The Portfolio maintained a relatively neutral duration posture versus the benchmark and sought to capture excess yield provided by the steep yield curve. Yield curve positioning, with an overweight to five- to 10-year maturities enhanced the Portfolio's results. (The yield curve plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.) A strategic emphasis on revenue sectors, such as hospital, airport, tobacco and industrial development was also a plus, as these attractively yielding bonds benefited from a strong investor appetite. Essential service revenue bonds, such as water/sewer and

PACE Select Advisors Trust – PACE Municipal Fixed Income Investments

Investment Sub-Advisor:

Standish Mellon Asset Management Company LLC ("Standish")

Portfolio Manager:

Christine L. Todd

Objective:

High current income exempt from federal income tax

Investment process:

In deciding which securities to buy for the Portfolio, Standish seeks to identify undervalued sectors or geographical regions of the municipal market, or undervalued individual securities. To do this, Standish uses credit research and valuation analysis, and monitors the relationship of the municipal yield curve to the Treasury yield curve. Standish may also make modest duration adjustments based on economic analyses and interest rate forecasts. Standish generally sells securities if it identifies more attractive investment opportunities within its investment criteria that may improve the Portfolio's return. Standish also may sell securities with weakening credit profiles or to adjust the average duration of the Portfolio.

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

60

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Sub-Advisor's comments – concluded

utility, considered to be among the highest and most stable credit quality, experienced less demand versus higher yielding alternatives. As a result, the Portfolio's overweight to these areas detracted from relative returns. The Portfolio benefited from being underweight to low yielding Treasury-backed pre-refunded bonds, which underperformed the benchmark as retail investors generally sought higher yielding alternatives.

The fundamental credit backdrop for state governments showed improvement, as evidenced by a Rockefeller Institute of Government report that indicated a 9.1% increase in tax revenues in the first quarter of 2011 compared to the first quarter of 2010. The spike in tax revenues represented the fifth consecutive quarter of positive year-over-year growth. The Portfolio maintained broad diversification across many geographic regions, and benefited greatly from an overweight exposure to high profile tax-backed credits such as those issued in Illinois and New Jersey. These bonds rallied strongly amidst positive headlines surrounding stabilizing fiscal outlooks, led by progress toward balancing budgets and pension and health care reform. Mitigating the impact was greater exposure toward Texas local school district bonds, as they lagged the benchmark during the reporting period.

Special considerations

The Portfolio may be appropriate for long-term investors seeking high current income exempt from federal income taxes. Investors should be able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The yield and value of the Portfolio change every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers in which the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.

61

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Municipal Fixed Income Investments Class P shares versus the Barclays Capital US Municipal 3-15 Year Blend Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. 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 illustration purposes only.

62

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		3.49	%		4.44	%		3.73	%
maximum sales charge	Class B2		2.71	%		3.66	%		3.25	%6
or PACE Select	Class C3		2.97	%		3.92	%		3.20	%
program fee	Class Y4		3.67	%		4.68	%		3.97	%
	Class P5		3.67	%		4.70	%		3.97	%
After deducting	Class A1		(1.17	)%		3.48	%		3.25	%
maximum sales charge	Class B2		(2.29	)%		3.31	%		3.25	%6
or PACE Select	Class C3		2.22	%		3.92	%		3.20	%
program fee	Class P5		1.62	%		2.63	%		1.91	%
Barclays Capital US Municipal 3-15 Year Blend Index7			3.56	%		5.43	%		4.98	%
Lipper Intermediate Municipal Debt Funds median			2.97	%		4.33	%		4.07	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, (0.75)%; 5-year period, 3.44%; 10-year period, 3.25%; Class B—1-year period, (1.87)%; 5-year period, 3.24%; 10-year period, 3.26%; Class C—1-year period, 2.72%; 5-year period, 3.88%; 10-year period, 3.21%; Class Y—1-year period, 4.17%; 5-year period, 4.65%; 10-year period, 3.98%; Class P—1-year period, 2.10%; 5-year period, 2.59%; 10-year period, 1.92%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—0.95% and 0.93%; Class B—1.77% and 1.68%; Class C—1.46% and 1.43%; Class Y—0.74% and 0.68%; and Class P—0.74% and 0.68%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—0.93%; Class B—1.68%; Class C—1.43%; Class Y—0.68%; and Class P—0.68%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The Barclays Capital US Municipal 3-15 Year Blend Index is an unmanaged total return performance benchmark for the tax-exempt bond market. The Index includes municipal bonds with an effective maturity between 2 and 17 years that have at least one year to maturity and are investment grade. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

63

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Weighted average duration		4.9 yrs.
Weighted average maturity		5.9 yrs.
Average coupon		5.19	%
Net assets (mm)	$	316.7
Number of holdings		165
Portfolio composition1	07/31/11
Municipal bonds and notes		99.5	%
Tax-free money market fund		0.0	2
Cash equivalents and other assets less liabilities		0.5
Total		100.0	%
Top five sectors1	07/31/11
Revenue		48.7	%
Lease revenue/special revenue		24.0
General obligations		18.7
Pre-refunded		3.1
Other municipals		2.4
Total		96.9	%
Top five states1	07/31/11
California		14.7	%
Florida		11.0
Illinois		10.0
Texas		9.5
Washington		7.2
Total		52.4	%
Quality diversification1	07/31/11
AAA and agency backed securities		12.0	%
AA		47.0
A		28.0
BBB		5.8
Non-rated		6.7
Tax-free money market fund		0.0	2
Cash equivalents and other assets less liabilities		0.5
Total		100.0	%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

²  Weighting represents less than 0.05% of the Portfolio's net assets as of July 31, 2011.

64

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Municipal bonds and notes—99.47%
Alabama—0.67%
Birmingham Waterworks Board Water Revenue Series A (Assured Guaranty Insured) 5.000%, due 01/01/24	$	2,005,000	$	2,133,922
Alaska—2.50%
Alaska Housing Finance Corp. General Housing Series C (NATL-RE Insured) 5.000%, due 12/01/13		1,110,000		1,194,305
Alaska International Airports Revenue Refunding Series A (NATL-RE Insured) 5.500%, due 10/01/151		3,500,000		3,748,955
North Slope Boro Series A (NATL-RE Insured) 5.000%, due 06/30/16		2,000,000		2,345,260
Northern Tobacco Securitization Corp. Alaska Tobacco Settlement Asset-Backed Bonds Series A 4.625%, due 06/01/23		685,000		636,125
				7,924,645
Arizona—1.80%
Arizona State Transportation Board Excise Tax Revenue Maricopa County Regional Area Road Fund 5.000%, due 07/01/15		2,000,000		2,306,940
Pima County Sewer Revenue System (AGM Insured) 5.000%, due 07/01/23		1,500,000		1,633,905
San Manuel Entertainment Series 04-C 4.500%, due 12/01/162		1,800,000		1,771,812
				5,712,657
California—14.72%
California Health Facilities Financing Authority Revenue Sutter Health Series B 5.250%, due 08/15/23		1,500,000		1,626,045
California State 5.000%, due 03/01/17		2,000,000		2,266,300
5.000%, due 08/01/19		3,000,000		3,335,700
5.250%, due 10/01/20		1,000,000		1,149,990
5.500%, due 04/01/21		3,000,000		3,429,780
California State Department of Water Resources Power Supply Revenue Series L 5.000%, due 05/01/14		1,250,000		1,395,225
5.000%, due 05/01/17		1,000,000		1,179,820
California State Economic Recovery Refunding Series A 5.000%, due 07/01/20		3,000,000		3,462,510
California State Kindergarten Series A4 0.210%, due 05/01/343		1,200,000		1,200,000

	Face amount		Value
Municipal bonds and notes—(Continued)
California—(Concluded)
California State Refunding 5.000%, due 04/01/18	$	1,550,000	$	1,800,992
California Statewide Communities Development Authority Pollution Control Revenue Refunding Southern California Edison Company Series A (Mandatory Put 04/01/13 @ 100) (XL Capital Insured) 4.100%, due 04/01/283		1,000,000		1,048,450
California Statewide Communities Development Authority Revenue Kaiser Permanente Series A 5.000%, due 04/01/19		3,000,000		3,428,220
California Statewide Communities Development Authority Revenue St. Joseph Series F (AGM Insured) 5.250%, due 07/01/18		1,500,000		1,728,345
Irvine Improvement Bond Act 1915 Assessment District 05-21 Series A 0.220%, due 09/02/313		200,000		200,000
Los Angeles Wastewater System Revenue Refunding Series A (NATL-RE-FGIC Insured) 6.000%, due 06/01/22		2,000,000		2,499,180
San Diego Public Facilities Financing Authority Sewer Revenue Senior Series A 5.000%, due 05/15/25		2,500,000		2,704,125
San Francisco City and County Airports Community International Airport Revenue San Francisco International Airport 5.000%, due 05/01/171		3,715,000		4,115,477
Southern California Public Power Authority Power Project Revenue Canyon Power Series A 5.000%, due 07/01/22		2,000,000		2,226,400
Southern California Public Power Authority Revenue Windy Point/Windy Flats Project Series 1 5.000%, due 07/01/23		1,350,000		1,506,195
Tobacco Securitization Authority Northern California Tobacco Settlement Revenue Asset-Backed Bonds Series A-1 4.750%, due 06/01/23		825,000		726,272
Tuolumne Wind Project Authority Revenue Tuolumne Co. Project Series A 5.250%, due 01/01/24		2,590,000		2,801,240
University of California Revenue Series Q 5.250%, due 05/15/23		2,500,000		2,790,050
				46,620,316

65

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Municipal bonds and notes—(Continued)
Colorado—1.38%
Colorado Health Facilities Authority Revenue Boulder Community Hospital Project Series A 4.000%, due 10/01/18	$	1,500,000	$	1,561,455
Denver City & County Airport Revenue Series A 5.500%, due 11/15/191		2,500,000		2,807,175
				4,368,630
District of Columbia—0.33%
Metropolitan Airport Authority System Refunding Series A (NATL-RE-FGIC Insured) 5.750%, due 10/01/141		1,000,000		1,052,750
Florida—11.03%
Citizens Property Insurance Corp. Refunding Senior Secured High Risk Account Series A (NATL-RE Insured) 5.000%, due 03/01/14		2,000,000		2,112,680
Citizens Property Insurance Corp. Senior Secured Coastal Series A-1 5.000%, due 06/01/19		2,000,000		2,080,860
Citizens Property Insurance Corp. Senior Secured High Account Series A-1 5.500%, due 06/01/14		1,000,000		1,075,130
5.500%, due 06/01/17		2,835,000		3,113,737
Citizens Property Insurance Corp. Senior Secured High Risk Series A-1 5.000%, due 06/01/15		1,600,000		1,725,952
Florida Department of Children's & Family Services Certificates of Participation (Florida Civil Commitment Center) (NATL-RE Insured) 5.000%, due 04/01/14		1,065,000		1,167,549
Florida Hurricane Catastrophe Fund Finance Corp. Revenue Series A 5.000%, due 07/01/15		1,000,000		1,111,410
5.000%, due 07/01/16		1,500,000		1,677,060
Florida State Board of Education Lottery Revenue Refunding Series C 5.000%, due 07/01/16		1,000,000		1,159,540
Series E 5.000%, due 07/01/19		1,000,000		1,154,170
Florida State Municipal Power Agency Revenue All Requirements Power Series A 5.250%, due 10/01/20		1,555,000		1,730,746
5.250%, due 10/01/21		2,000,000		2,191,900
Lakeland Energy System Revenue Refunding Series B (AGM Insured) 5.000%, due 10/01/17		2,000,000		2,315,860	��
Miami-Dade County Water & Sewer Revenue Refunding Series C 5.250%, due 10/01/18		2,000,000		2,323,800

	Face amount		Value
Municipal bonds and notes—(Continued)
Florida—(Concluded)
Miami-Dade County Water & Sewer Revenue Refunding Systems Series B (AGM Insured) 5.250%, due 10/01/18	$	2,500,000	$	2,940,150
Orlando & Orange County Expressway Authority Expressway Revenue Junior Lien (NATL-RE-IBC/FGIC Insured) 8.250%, due 07/01/16		2,595,000		3,289,111
Tampa Solid Waste System Revenue Refunding (AGM Insured) 5.000%, due 10/01/151		1,000,000		1,097,390
Tampa Utilities Tax & Special Revenue Refunding Series B (AMBAC Insured) 5.750%, due 10/01/15		1,000,000		1,166,960
Tampa-Hillsborough County Expressway Authority Revenue (Escrowed to Maturity) (AMBAC Insured) 5.000%, due 07/01/14		640,000		719,264
Tampa-Hillsborough County Expressway Authority Revenue Unrefunded Balance (AMBAC Insured) 5.000%, due 07/01/14		695,000		763,659
				34,916,928
Georgia—1.13%
De Kalb County Water & Sewer Revenue Refunding Series B 5.250%, due 10/01/24		2,000,000		2,177,860
Gwinnett County Development Authority Certificates of Participation, Gwinnett County Public Schools Project (Pre-refunded with State and Local Government Securities to 01/01/14 @ 100) (NATL-RE Insured) 5.250%, due 01/01/20		1,250,000		1,390,525
				3,568,385
Guam—0.32%
Guam Education Financing Foundation Certificates of Participation, Guam Public Schools Project Series A 5.000%, due 10/01/12		1,000,000		1,012,140
Idaho—0.13%
Idaho Housing & Finance Association Single-Family Mortgage Series G-2, Class III 5.950%, due 07/01/191		350,000		362,929
Subseries D-3 5.150%, due 07/01/131		45,000		45,571
				408,500

66

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Municipal bonds and notes—(Continued)
Illinois—9.97%
Chicago O'Hare International Airport Revenue Refunding-General-Third Lien-Series B (NATL-RE Insured) 5.250%, due 01/01/18	$	1,000,000	$	1,130,520
Chicago (Pre-refunded with State and Local Government Securities to 01/01/14 @ 100) Series A (AGM Insured) 5.000%, due 01/01/34		2,000,000		2,212,820
Chicago Project Series C (NATL-RE Insured) 5.000%, due 01/01/20		1,000,000		1,030,290
Chicago Refunding Series A (AGM Insured) 5.000%, due 01/01/17		2,500,000		2,703,725
Cook County Forest Preservation District (AMBAC Insured) 5.000%, due 11/15/19		5,180,000		5,764,874
Illinois Development Finance Authority Revenue DePaul University Series C 5.500%, due 10/01/13		1,000,000		1,082,690
Illinois Development Finance Authority Revenue School District Program School District No. U-46 (AGM Insured) 5.150%, due 01/01/19		2,000,000		2,257,200
Illinois Health Facilities Authority Revenue Evangelical Hospital Series A (Escrowed to Maturity) 6.750%, due 04/15/17		660,000		781,044
Illinois Municipal Electric Agency Power Supply Refunding Series C (NATL-RE-FGIC Insured) 5.000%, due 02/01/16		1,200,000		1,349,244
Illinois State Refunding 5.000%, due 01/01/17		1,000,000		1,108,350
5.000%, due 01/01/22		2,500,000		2,599,175
5.000%, due 01/01/24		1,000,000		1,015,070
Illinois Toll Highway Authority Toll Highway Revenue Refunding Senior Series A-1 5.000%, due 01/01/25		1,250,000		1,301,375
Railsplitter Tobacco Settlement Authority 5.500%, due 06/01/23		1,365,000		1,414,208
Regional Transportation Authority Series A (AGM Insured) 5.750%, due 06/01/18		3,000,000		3,564,480
Springfield Electric Revenue Senior Lien Electric 5.000%, due 03/01/16		2,000,000		2,251,960
				31,567,025

	Face amount		Value
Municipal bonds and notes—(Continued)
Indiana—1.68%
Indiana State Finance Authority Environmental Facilities Revenue Refunding Industrial Power & Light Co. Series C 4.900%, due 01/01/16	$	1,500,000	$	1,652,445
Indiana University Revenues Student Fees Series S 5.000%, due 08/01/19		1,185,000		1,385,668
Indianapolis Thermal Energy System Refunding (AGM Insured) 5.000%, due 10/01/16		2,000,000		2,294,120
				5,332,233
Iowa—1.09%
Iowa Finance Authority Revenue Revolving Fund (Partially Pre-refunded with US Treasury obligations and State and Local Government Securities to 08/01/12 @ 100) 5.250%, due 02/01/14		3,310,000		3,462,426
Kentucky—0.73%
Pikville Hospital Revenue Refunding & Improvement (Pikville Medical Center) 6.000%, due 03/01/22		2,055,000		2,303,039
Louisiana—1.74%
Jefferson Parish Home Mortgage Authority Single-Family Mortgage Revenue Series A (GNMA/FNMA and FHA/VA/USDA Mortgages Insured) 5.125%, due 06/01/261		615,000		635,394
Louisiana Public Facilities Authority Revenue Hurricane Recovery Project (AMBAC Insured) 5.000%, due 06/01/15		2,880,000		3,179,923
New Orleans Aviation Board Revenue New Orleans Aviation Series B2 Refunding (AGM Insured) 5.000%, due 01/01/121		1,655,000		1,684,161
				5,499,478
Maryland—0.71%
Maryland State & Local Facilities Lien First Series 5.000%, due 08/01/15		2,000,000		2,238,300
Massachusetts—4.80%
Massachusetts Bay Transportation Authority Massachusetts Sales Tax Revenue Series A 5.000%, due 07/01/22		2,000,000		2,338,640
Series B 5.250%, due 07/01/21		6,000,000		7,210,920

67

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Municipal bonds and notes—(Continued)
Massachusetts—(Concluded)
Massachusetts Health & Educational Facilities Authority Revenue Massachusetts Institute of Technology Series M 5.250%, due 07/01/29	$	1,000,000	$	1,197,350
Massachusetts Health & Educational Facilities Authority Revenue Partners Healthcare Systems Series G-5 5.000%, due 07/01/19		1,000,000		1,118,690
Massachusetts State Development Finance Agency Solid Waste Disposal Revenue Waste Management Income Project 5.450%, due 06/01/141		2,000,000		2,166,380
Massachusetts State Water Resources Authority Refunding General Series B 5.000%, due 08/01/15		1,000,000		1,158,210
				15,190,190
Michigan—3.78%
Detroit Sewer Disposal Revenue Refunding Senior Lien Series C-1 6.500%, due 07/01/24		2,250,000		2,510,482
Detroit Sewer Disposal Revenue Second Lien Series D-2 (Mandatory Put 01/01/12 @ 100) (NATL-RE Insured) 5.500%, due 07/01/323		2,000,000		2,020,820
Detroit Sewer Disposal Revenue Senior Lien Series A (AGM Insured) 5.250%, due 07/01/19		2,500,000		2,749,500
Michigan State Housing Development Authority Series A 4.550%, due 12/01/141		2,395,000		2,503,877
Wayne County Airport Authority Revenue Refunding Detroit Metropolitan Airport Series A 5.000%, due 12/01/161		1,500,000		1,627,185
Series D 5.000%, due 12/01/17		510,000		556,553
				11,968,417
Minnesota—0.00%
Moorhead Residential Mortgage (Escrowed to Maturity) (FHA/VA Mortgages Insured) 7.100%, due 08/01/11		10,000		10,003
Missouri—2.35%
Missouri State Health & Educational Facilities Authority Health Facilities Revenue St. Lukes Health Systems Series A (AGM Insured) 5.000%, due 11/15/16		2,000,000		2,264,460
5.000%, due 11/15/17		2,500,000		2,833,800

	Face amount		Value
Municipal bonds and notes—(Continued)
Missouri—(Concluded)
Missouri State Highways & Transit Commission State Road Revenue Second Lien 5.000%, due 05/01/16	$	2,000,000	$	2,355,620
				7,453,880
Nevada—0.55%
Las Vegas Valley Water District Refunding & Improvement Series A 5.000%, due 02/01/17		1,500,000		1,725,720
New Jersey—2.26%
New Jersey Economic Development Authority Revenue Refunding School Facilities Construction Series EE 5.250%, due 09/01/23		1,500,000		1,622,835
New Jersey Economic Development Authority Water Facilities Revenue Refunding American Water Co. Series C 5.100%, due 06/01/231		1,000,000		1,055,240
New Jersey Transportation Trust Fund Authority Transportation System Series B (AGC-ICC/FGIC Insured) 5.500%, due 12/15/20		1,500,000		1,728,285
Series B (NATL-RE/FGIC Insured) 5.250%, due 12/15/18		2,500,000		2,749,100
				7,155,460
New York—6.86%
Metropolitan Transportation Authority Revenue Transportation Series G 5.000%, due 11/15/18		2,500,000		2,857,675
New York City Health & Hospital Corp. Revenue Health System Series A 5.000%, due 02/15/22		3,500,000		3,830,120
New York City Series B 5.000%, due 08/01/17		1,750,000		2,057,825
New York City Transitional Finance Authority Revenue Refunding Future Tax Secured Series A 5.500%, due 11/01/263		2,000,000		2,024,740
New York State Dorm Authority Lease Revenue Series B (Mandatory Put 07/01/13 @ 100) (XL Capital Insured) 5.250%, due 07/01/323		1,500,000		1,627,965
New York State Dorm Authority State Personal Income Tax Revenue Education Series D 5.000%, due 03/15/15		2,500,000		2,861,525

68

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Municipal bonds and notes—(Continued)
New York—(Concluded)
Port Authority of New York & New Jersey (NATL-RE-FGIC Insured) 5.000%, due 10/01/131	$	6,000,000	$	6,464,460
				21,724,310
Ohio—1.41%
Cincinnati Water System Revenue Refunding Series A 5.000%, due 12/01/214		1,000,000		1,182,180
Kent State University Revenue General Receipts Series B (Assured Guaranty Insured) 5.000%, due 05/01/21		3,000,000		3,288,240
				4,470,420
Oregon—0.36%
Oregon State Department of Transportation Highway User Tax Revenue Series A 5.250%, due 11/15/14		1,000,000		1,147,490
Pennsylvania—3.50%
Allegheny County Port Authority Special Revenue Refunding Transportation 5.000%, due 03/01/25		1,000,000		1,056,910
Lancaster Sewer Authority (Escrowed to Maturity) 6.000%, due 04/01/12		10,000		10,325
Pennsylvania Intergovernmental Cooperative Authority Special Tax Revenue Refunding Philadelphia Funding Program 5.000%, due 06/15/17		2,000,000		2,352,720
Pennsylvania State Higher Educational Facilities Authority Revenue University of Pennsylvania Series A 5.000%, due 09/01/17		1,150,000		1,367,660
Pennsylvania Third Series (AGM Insured) 5.000%, due 09/01/15		1,000,000		1,123,080
Philadelphia School District Refunding Series E 5.000%, due 09/01/18		1,000,000		1,113,530
Philadelphia Water & Wastewater Revenue Refunding Series A 5.000%, due 06/15/15		1,500,000		1,697,100
University of Pittsburgh of the Commonwealth System of Higher Education Capital Project Series B 5.500%, due 09/15/21		2,000,000		2,365,180
				11,086,505

	Face amount		Value
Municipal bonds and notes—(Continued)
Puerto Rico—4.23%
Puerto Rico Commonwealth Government Development Bank Senior Notes Series B 5.000%, due 12/01/14	$	1,500,000	$	1,618,965
Series C 5.250%, due 01/01/151		1,000,000		1,057,270
Puerto Rico Commonwealth Highway & Transportation Authority Highway Revenue Refunding Series CC 5.000%, due 07/01/13		1,070,000		1,131,696
Puerto Rico Commonwealth Highway & Transportation Authority Transportation Revenue (AGM Insured) 5.500%, due 07/01/25		2,000,000		2,149,320
Puerto Rico Commonwealth Refunding Series A (Mandatory Put 07/01/12 @ 100) 5.000%, due 07/01/303		1,000,000		1,025,680
Puerto Rico Public Buildings Authority Revenue Guaranteed Refunding Government Facilities Series J (Mandatory Put 07/01/12 @ 100) (Commonwealth GTD) 5.000%, due 07/01/283		1,450,000		1,489,266
Puerto Rico Public Finance Corp. Refunding Commonwealth Appropriations Series A (Mandatory Put 02/01/12 @ 100) 5.750%, due 08/01/273		500,000		508,740
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue First Sub-Series A 5.500%, due 08/01/23		4,000,000		4,397,480
				13,378,417
South Carolina—0.73%
Richland County School District No. 002 Series A (SCSDE Insured) 5.000%, due 02/01/21		2,000,000		2,312,400
Tennessee—0.96%
Memphis Electric System Revenue Refunding Sub 5.000%, due 12/01/15		2,625,000		3,049,436
Texas—9.47%
Austin Water & Wastewater Systems Revenue Refunding (NATL-RE Insured), 5.000%, due 11/15/17		2,000,000		2,264,280

69

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Municipal bonds and notes—(Continued)
Texas—(Continued)
Dallas-Fort Worth International Airport Revenue Refunding & Improvement Series A (NATL-RE-FGIC Insured) 5.750%, due 11/01/131	$	2,000,000	$	2,024,820
Dickinson Independent School District Refunding Schoolhouse (PSF-GTD) 5.000%, due 02/15/23		1,920,000		2,097,965
Fort Worth Independent School District (PSF-GTD) 5.000%, due 02/15/15		2,000,000		2,287,520
Harris County Flood Control District Refunding Contract Series A 5.250%, due 10/01/18		2,000,000		2,425,240
Harris County Hospital District Revenue Refunding Senior Lien Series A (NATL-RE Insured) 5.000%, due 02/15/18		1,675,000		1,849,870
Houston Utilities Systems Revenue Refunding Combined First Lien Series A (AGM Insured) 5.250%, due 11/15/17		2,500,000		3,001,300
Lower Colorado River Authority Refunding LCRA Transmission Services (BHAC Insured) 5.000%, due 05/15/20		1,765,000		1,963,474
North Texas Health Facilities Development Corp. Hospital Revenue United Regional Health Care Systems (AGM Insured) 5.000%, due 09/01/21		1,450,000		1,539,697
5.000%, due 09/01/22		1,400,000		1,471,862
San Antonio Electric & Gas Refunding Series A 5.000%, due 02/01/17		1,295,000		1,525,109
Schertz-Cibolo-Universal City Independent School District School Building Series A (PSF-GTD) 5.000%, due 02/01/14		1,500,000		1,662,615
Texas Municipal Power Agency Revenue (Escrowed to Maturity) (NATL-RE Insured) 6.100%, due 09/01/135		25,000		24,571
Texas Water Development Board Revenue State Revolving Fund Subseries A-1 5.000%, due 07/15/24		1,885,000		2,099,211
Tyler Independent School District School Building 5.000%, due 02/15/18		1,165,000		1,383,018

	Face amount		Value
Municipal bonds and notes—(Continued)
Texas—(Concluded)
University of Texas University Revenues Refunding Financing System Series D (Pre-refunded with State and Local Government Securities to 02/15/17 @ 100) 5.000%, due 08/15/17	$	1,805,000	$	2,141,777
Series D Unrefunded Balance 5.000%, due 08/15/17		195,000		229,860
				29,992,189
Utah—0.51%
Riverton Hospital Revenue IHC Health Services, Inc. 5.000%, due 08/15/15		1,200,000		1,373,868
Utah State Housing Finance Agency Single-Family Mortgage Series G-3, Class III 5.700%, due 07/01/151		240,000		244,229
				1,618,097
Virginia—0.56%
Virginia College Building Authority Educational Facilities Revenue 21st Century College & Equipment (Pre-refunded with State and Local Government Securities to 02/01/14 @ 100) Series A 5.000%, due 02/01/21		1,600,000		1,777,776
Washington—7.21%
Energy Northwest Electric Revenue Columbia Station Series A 5.000%, due 07/01/23		2,500,000		2,717,025
Energy Northwest Electric Revenue Refunding Columbia Station Series A 5.000%, due 07/01/21		2,000,000		2,206,280
Energy Northwest Electric Revenue Refunding Project 1 Series A 5.000%, due 07/01/16		1,515,000		1,780,625
Port of Seattle Refunding 5.500%, due 12/01/221		500,000		566,485
Port of Seattle Revenue Refunding Intermediate Lien Series C 5.000%, due 02/01/161		1,000,000		1,107,610
Seattle Municipal Lighting & Power Revenue Refunding & Improvement Series A 5.000%, due 02/01/22		2,500,000		2,900,550
Series B 5.000%, due 02/01/14		1,000,000		1,108,670
Washington Health Care Facilities Authority Overlake Hospital Medical Center Series A (Assured Guaranty Insured) 5.000%, due 07/01/16		1,000,000		1,106,240

70

PACE Select Advisors Trust

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Municipal bonds and notes—(Concluded)
Washington—(Concluded)
Washington State Public Power Supply Systems Nuclear Project No. 1 Revenue Refunding Series B 7.125%, due 07/01/16	$	3,000,000	$	3,803,820
Washington State Series 93-A (Escrowed to Maturity) 5.750%, due 10/01/12		5,000		5,168
Series A-Various Purpose 5.000%, due 07/01/17		2,130,000		2,532,975
5.000%, due 07/01/20		2,625,000		3,011,846
				22,847,294
Total municipal bonds and notes (cost—$298,780,581)				315,029,378

	Number of shares		Value
Tax-free money market fund—0.01%
State Street Global Advisors Tax Free Money Market Fund (cost—$14,408)		14,408	$	14,408
Total investments (cost—$298,794,989)—99.48%				315,043,786
Other assets in excess of liabilities—0.52%				1,653,117
Net assets—100.00%			$	316,696,903

Aggregate cost for federal income tax purposes was $298,794,989; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	17,104,803
Gross unrealized depreciation		(856,006	)
Net unrealized appreciation	$	16,248,797

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

¹  Security subject to Alternative Minimum Tax.

²  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security, which represents 0.56% of net assets as of July 31, 2011, is considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

³  Variable or floating rate security. The interest rate shown is the current rate as of July 31, 2011 and changes periodically.

⁴  Security purchased on a when-issued basis. When issued refers to a transaction made conditionally because a security, although authorized, has not yet been issued.

⁵  Zero coupon bond; interest rate represents annualized yield at date of purchase.

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Municipal bonds and notes	$	—	$	315,029,378	$	—	$	315,029,378
Tax-free money market fund		—		14,408		—		14,408
Total	$	—	$	315,043,786	$	—	$	315,043,786

See accompanying notes to financial statements.
71

PACE Select Advisors Trust

PACE International Fixed Income Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 12.60%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 10.37%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Barclays Capital Global Aggregate ex US Index (the "benchmark") returned 12.42%, and the Lipper International Income Funds category posted a median return of 11.41%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 75. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisor's comments¹

The Portfolio outperformed its benchmark during the reporting period. We had a preference for economies with improving economic fundamentals, such as Norway, Canada and Australia. We also had exposure to local interest rate markets in Korea and Mexico, as well as in Malaysia, during the first half of the period, given what we view to be their stronger economic growth prospects and more sound debt dynamics than other developed markets. During the reporting period, overweights in Canada, Korea, Mexico, Malaysia and Australia added to relative returns. An underweight to Japan was also beneficial. The intensification of the sovereign debt crisis in the Eurozone periphery resulted in a significant bond market selloff in the peripheral markets. Our decision to overweight the core Eurozone area economies versus the periphery added to returns. In contrast, underweights to the UK and US detracted from relative returns.

The ongoing recovery in the global economic environment resulted in our overweight to the Australian and Canadian dollars and an overweight to a basket of emerging markets currencies versus the US dollar. This positioning contributed to relative performance during the reporting period. An overweight to the Norwegian krone was also modestly beneficial. Conversely, an underweight to the Japanese yen detracted from relative results.

During the first half of the reporting period, the Portfolio's duration was largely in line with the benchmark. (Duration measures a portfolio's sensitivity to interest rate changes.) We then shifted to a shorter duration in February 2011, based on evidence of an ongoing global economic recovery and signs that the disinflationary forces

PACE Select Advisors Trust – PACE International Fixed Income Investments

Investment Sub-Advisor:

Rogge Global Partners plc ("Rogge Global Partners")

Portfolio Managers:

Olaf Rogge, John Graham, Richard Bell, Adrian James and Malie Conway

Objective:

High total return

Investment process:

Rogge Global Partners seeks to invest the Portfolio's assets in fixed income securities of financially healthy issuers, because it believes that these investments produce the highest bond and currency returns over time. In deciding which fixed income securities to buy for the Portfolio, Rogge Global Partners uses a top-down analysis to find value across countries and to forecast interest and currency-exchange rates over a one-year horizon in those countries. Rogge Global Partners also uses an optimization model to help determine country, currency and duration positions for the Portfolio. Rogge Global Partners generally sells securities that no longer meet these selection criteria or when it identifies more attractive investment opportunities, and may also sell securities to adjust the average duration of the Portfolio.

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

72

PACE Select Advisors Trust

PACE International Fixed Income Investments

Sub-Advisor's comments – concluded

in a number of developed markets were abating. This shorter duration had a negative impact on performance as government bond yields fell. The Portfolio had a relatively neutral yield curve position, which had little impact on performance. (The yield curve plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.)

We had an overweight exposure to investment grade bonds, with a preference for well funded, internationally diversified corporate issuers. As we expected, we saw greater differentiation of performance by geography and by industry sector. Companies with large exposure to peripheral Europe, for example, remained vulnerable, while others continued to benefit from secular growth in emerging markets. Our exposure to investment grade bonds in the financial and industrial sectors added to returns.

During the reporting period, futures were used to take positions in various government bond markets, to hedge interest rate exposure and to take yield curve positions. Foreign exchange futures contracts were used to manage the Portfolio's currency exposure. Overall, the use of futures was beneficial for performance.

Special considerations

The Portfolio may be appropriate for long-term investors seeking high total return and who are able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The yield and value of the Portfolio change every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers in which the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. These risks are greater for investments in emerging markets than in more developed countries.

73

PACE Select Advisors Trust

PACE International Fixed Income Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE International Fixed Income Investments Class P shares versus the Barclays Capital Global Aggregate ex US Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that PACE International Fixed Income Investments is a professionally managed portfolio while the Index is not available for investment and is unmanaged. The comparison is shown for illustration purposes only.

74

PACE Select Advisors Trust

PACE International Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		12.36	%		7.14	%		7.26	%
maximum sales charge	Class B2		11.54	%		6.34	%		6.79	%6
or PACE Select	Class C3		11.83	%		6.62	%		6.73	%
program fee	Class Y4		12.54	%		7.46	%		7.58	%
	Class P5		12.60	%		7.40	%		7.53	%
After deducting	Class A1		7.30	%		6.16	%		6.77	%
maximum sales charge	Class B2		6.54	%		6.03	%		6.79	%6
or PACE Select	Class C3		11.08	%		6.62	%		6.73	%
program fee	Class P5		10.37	%		5.27	%		5.39	%
Barclays Capital Global Aggregate ex US Index7			12.42	%		7.78	%		8.72	%
Lipper International Income Funds median			11.41	%		6.71	%		7.05	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 10.26%; 5-year period, 5.75%; 10-year period, 6.73%; Class B—1-year period, 9.56%; 5-year period, 5.62%; 10-year period, 6.74%; Class C—1-year period, 14.12%; 5-year period, 6.21%; 10-year period, 6.70%; Class Y—1-year period, 15.61%; 5-year period, 7.07%; 10-year period, 7.54%; Class P—1-year period, 13.37%; 5-year period, 4.89%; 10-year period, 5.36%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.30% and 1.25%; Class B—2.09% and 2.00%; Class C—1.77% and 1.72%; Class Y—1.01% and 0.96%; and Class P—1.15% and 1.00%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to (1) waive its management fees through November 28, 2011 to the extent necessary to reflect the lower sub-advisory fee paid by UBS Global AM to Rogge Global Partners plc, the Portfolio's investment advisor; and (2) waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.25%; Class B—2.00%; Class C—1.75%; Class Y—1.00%; and Class P—1.00%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses (pursuant to item (2)) to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The Barclays Capital Global Aggregate ex US Index is an unmanaged index which provides a broad-based measure of the global investment-grade fixed income markets excluding the US market. The two major components of this Index are the Pan-European Aggregate and the Asian-Pacific Aggregate Indices. The Index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction  of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

75

PACE Select Advisors Trust

PACE International Fixed Income Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Weighted average duration		6.2 yrs.
Weighted average maturity		8.8 yrs.
Average coupon		4.32	%
Net assets (mm)	$	577.7
Number of holdings		117
Portfolio composition1	07/31/11
Long-term global debt securities		97.1	%
Futures and forward foreign currency contracts		0.4
Cash equivalents and other assets less liabilities		2.5
Total		100.0	%
Quality diversification1	07/31/11
AAA		17.5	%
AA		12.6
A		25.3
BBB		2.9
BB		1.3
B		0.2
Non-rated		37.3
Futures and forward foreign currency contracts		0.4
Cash equivalents and other assets less liabilities		2.5
Total		100.0	%
Top five countries of incorporation1	07/31/11
Japan		22.6	%
United Kingdom		13.7
United States		11.0
France		7.6
Canada		7.5
Total		62.4	%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

76

PACE Select Advisors Trust

PACE International Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Long-term global debt securities—97.11%
Austria—0.18%
Sappi Papier Holding GmbH 6.625%, due 04/15/212,3		1,050,000	$	1,034,250
British Virgin Islands—0.54%
CNOOC Finance 2011 Ltd. 4.250%, due 01/26/212		3,100,000		3,147,653
Canada—7.46%
Canadian Government Bond 3.250%, due 06/01/21		12,050,000		13,110,027
3.750%, due 06/01/19		10,040,000		11,403,220
5.750%, due 06/01/33		4,460,000		6,471,656
Cards II Trust 3.048%, due 05/15/13		3,100,000		3,313,037
3.333%, due 05/15/16		2,300,000		2,464,270
Toronto-Dominion Bank 5.375%, due 05/14/15	EUR	4,000,000		6,327,846
				43,090,056
Cayman Islands—0.06%
UPCB Finance Ltd. 7.625%, due 01/15/204	EUR	250,000		362,817
Denmark—0.71%
Kingdom of Denmark 4.000%, due 11/15/15		19,660,000		4,126,274
France—7.59%
BNP Paribas Home Loan Covered Bonds SA 2.200%, due 11/02/152	USD	3,900,000		3,867,213
Caisse d'Amortissement de la Dette Sociale 3.625%, due 04/25/15		10,325,000		15,601,047
Electricite De France 5.375%, due 05/29/20		1,000,000		1,617,903
GDF Suez 2.750%, due 10/18/17		1,800,000		2,551,073
Pernod-Ricard SA 4.875%, due 03/18/16		950,000		1,397,133
Republic of France 4.000%, due 04/25/55		1,250,000		1,853,115
5.750%, due 10/25/32		2,520,000		4,665,568
Sanofi 2.625%, due 03/29/16	USD	4,100,000		4,243,291
Societe Generale 4.000%, due 07/07/16		3,750,000		5,649,213
5.250%, due 03/28/13		1,000,000		1,492,757
6.125%, due 08/20/18		600,000		922,822
				43,861,135
Germany—5.43%
Bayerische Landesbank 4.000%, due 01/16/12		7,340,000		10,657,013
Bundesrepublik Deutschland, Series 08 4.750%, due 07/04/40		3,034,000		5,516,578
Series 98 5.625%, due 01/04/28		3,600,000		6,737,052

	Face amount1		Value
Long-term global debt securities—(Continued)
Germany—(Concluded)
Deutsche Bank AG 3.625%, due 03/09/175		2,250,000	$	3,164,102
Kabel BW Erste Beteiligungs GmbH/Kabel Baden-Wurttemberg GmbH & Co. KG 5.721%, due 03/15/184,5		750,000		1,077,674
NRW Bank 3.875%, due 01/27/20		2,300,000		3,467,907
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 8.125%, due 12/01/174		500,000		748,984
				31,369,310
Italy—3.55%
Buoni Poliennali Del Tesoro 4.500%, due 02/01/20		7,200,000		9,611,132
4.750%, due 09/01/21		8,250,000		10,886,150
				20,497,282
Japan—22.63%
Bank of Tokyo-Mitsubishi UFJ Ltd. 3.850%, due 01/22/152	USD	1,900,000		2,024,612
Development Bank of Japan 1.750%, due 03/17/17		130,000,000		1,796,545
2.300%, due 03/19/26		500,000,000		7,101,150
Government of Japan 0.700%, due 09/20/14		2,733,000,000		36,028,029
1.000%, due 12/20/12		1,640,000,000		21,549,687
2.000%, due 03/20/16		1,976,000,000		27,611,998
2.000%, due 12/20/24		685,000,000		9,491,990
2.200%, due 09/20/26		159,700,000		2,236,113
2.300%, due 06/20/35		1,177,000,000		16,241,438
2.300%, due 12/20/36		480,000,000		6,618,962
				130,700,524
Luxembourg—1.50%
Gazprom Via Gaz Capital SA 4.560%, due 12/09/12		3,200,000		4,706,238
8.125%, due 02/04/15		2,000,000		3,258,888
Prologis International Funding SA 7.625%, due 10/23/146		450,000		676,025
				8,641,151
Malaysia—0.15%
Malaysia Government Bond, Series 0902 4.378%, due 11/29/19		2,500,000		874,326
Mexico—5.09%
Mexican Bonos 6.500%, due 06/10/21		83,800,000		7,020,835
8.000%, due 06/11/20		95,000,000		8,857,909
8.500%, due 12/13/18		140,200,000		13,506,073
				29,384,817

77

PACE Select Advisors Trust

PACE International Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Long-term global debt securities—(Continued)
Netherlands—3.18%
Bank Nederlandse Gemeenten 4.375%, due 01/19/15	GBP	660,000	$	1,174,915
BMW Finance N.V. 4.000%, due 09/17/14		600,000		897,887
Government of the Netherlands 5.500%, due 01/15/28		1,830,500		3,327,233
ING Bank N.V. 1.652%, due 06/09/144,5	USD	3,150,000		3,148,236
6.125%, due 05/29/235		800,000		1,184,637
Netherlands Government Bond 4.000%, due 01/15/37		2,750,000		4,319,987
Schlumberger Finance BV 2.750%, due 12/01/15		1,400,000		2,019,748
Urenco Finance N.V. 5.375%, due 05/22/15		1,500,000		2,329,230
				18,401,873
Norway—1.02%
DnB NOR Boligkreditt 3.375%, due 01/20/17	EUR	4,000,000		5,872,728
Poland—0.25%
Poland Government Bond, Series 1019 5.500%, due 10/25/19		4,050,000		1,436,437
Singapore—1.27%
DBS Bank Ltd. 2.375%, due 09/14/15	USD	950,000		951,957
5.000%, due 11/15/192,5	USD	2,400,000		2,564,043
Oversea-Chinese Banking Corp., Ltd. 4.250%, due 11/18/195	USD	2,300,000		2,399,746
United Overseas Bank Ltd. 5.375%, due 09/03/192,5	USD	1,300,000		1,397,995
				7,313,741
South Korea—3.86%
Korea Treasury Bond 5.750%, due 09/10/18		21,318,210,000		22,275,336
Spain—2.95%
Spain Government Bond 5.500%, due 04/30/21		12,450,000		17,020,866
Supranational—1.11%
European Investment Bank 6.000%, due 12/07/28	GBP	3,200,000		6,437,667
Sweden—3.20%
Government of Sweden 4.250%, due 03/12/19		14,830,000		2,648,699
Nordea Bank AB 4.000%, due 09/30/165	EUR	1,900,000		2,733,052
Nordea Hypotek AB 3.500%, due 01/18/17	EUR	2,100,000		3,095,940

	Face amount1		Value
Long-term global debt securities—(Continued)
Sweden—(Concluded)
Skandinaviska Enskilda Banken AB 4.500%, due 04/25/13	EUR	3,880,000	$	5,787,494
Vattenfall AB 6.250%, due 03/17/21	EUR	2,450,000		4,230,944
				18,496,129
Switzerland—0.71%
Credit Suisse London 5.125%, due 09/18/17	EUR	2,650,000		4,101,062
United Kingdom—13.72%
Abbey National Treasury Services PLC 3.625%, due 10/14/16	EUR	2,000,000		2,873,333
5.750%, due 03/02/264		3,250,000		5,689,246
Anglian Water Services Finance PLC 6.250%, due 06/27/16	EUR	900,000		1,483,440
Aviva PLC 5.250%, due 10/02/235	EUR	1,900,000		2,736,934
Barclays Bank PLC 1.286%, due 01/13/145	USD	2,600,000		2,605,252
4.000%, due 10/07/19	EUR	1,900,000		2,803,123
4.500%, due 03/04/195	EUR	1,450,000		2,045,880
Diageo Finance PLC 6.625%, due 12/05/14	EUR	1,900,000		3,073,589
First Hydro Finance PLC 9.000%, due 07/31/21		700,000		1,373,074
HSBC Bank PLC 1.050%, due 01/17/144,5	USD	3,000,000		3,006,990
HSBC Holdings PLC 6.250%, due 03/19/18	EUR	4,000,000		6,222,561
National Grid Gas PLC 5.125%, due 05/14/13	EUR	1,700,000		2,558,514
Nationwide Building Society 4.375%, due 02/28/22	EUR	3,750,000		5,448,771
Network Rail Infrastructure Finance PLC 4.875%, due 11/27/15		705,000		1,306,462
Royal Bank of Scotland Group PLC 5.250%, due 05/15/13	EUR	1,350,000		1,992,761
Royal Bank of Scotland PLC 4.875%, due 08/25/142	USD	3,000,000		3,149,832
Scottish & Southern Energy PLC 6.125%, due 07/29/13	EUR	900,000		1,382,168
Standard Chartered Bank 3.625%, due 02/03/175	EUR	1,400,000		2,001,647
Standard Chartered PLC 3.625%, due 12/15/15	EUR	4,500,000		6,580,192
United Kingdom Treasury Bonds 4.250%, due 12/07/55		3,770,000		6,525,532

78

PACE Select Advisors Trust

PACE International Fixed Income Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Long-term global debt securities—(Continued)
United Kingdom—(Concluded)
United Kingdom Treasury Inflation Linked Bonds 1.250%, due 11/22/17		7,708,646	$	14,371,694
				79,230,995
United States—10.95%
ABB Treasury Center USA, Inc. 2.500%, due 06/15/162		2,350,000		2,388,822
Ball Corp. 6.750%, due 09/15/20		1,050,000		1,123,500
BMW US Capital LLC 5.000%, due 05/28/15	EUR	600,000		931,624
Boeing Capital Corp. 2.125%, due 08/15/16		1,650,000		1,660,768
Celanese US Holdings LLC 6.625%, due 10/15/18		650,000		702,000
Citigroup, Inc. 1.111%, due 02/15/135		3,000,000		3,000,063
6.000%, due 08/15/17		1,800,000		2,003,695
CONSOL Energy, Inc. 8.250%, due 04/01/20		1,050,000		1,168,125
Daimler Finance N.A. LLC 0.856%, due 03/28/142,5		2,500,000		2,500,867
Ford Motor Credit Co. LLC 5.750%, due 02/01/21		1,200,000		1,225,714
Georgia-Pacific LLC 8.000%, due 01/15/24		500,000		616,555
HSBC Bank USA N.A. 4.875%, due 08/24/20		1,400,000		1,409,338
IBM Corp. 5.700%, due 09/14/17		4,200,000		4,992,078
Johnson & Johnson 4.750%, due 11/06/19	EUR	3,350,000		5,333,333
JPMorgan Chase Bank N.A. 6.000%, due 10/01/17		4,850,000		5,462,681
New York Life Global Funding 2.450%, due 07/14/162		2,800,000		2,844,747
OBP Depositor LLC Trust, Series 2010-OBP, Class A 4.646%, due 07/15/452		700,000		742,976
Pfizer, Inc. 5.750%, due 06/03/21	EUR	3,900,000		6,558,617
Philip Morris International, Inc. 5.650%, due 05/16/18		1,200,000		1,397,644
6.875%, due 03/17/14		1,800,000		2,071,597

	Face amount1		Value
Long-term global debt securities—(Concluded)
United States—(Concluded)
PNC Funding Corp. 5.125%, due 02/08/20		2,550,000	$	2,781,588
Procter & Gamble Co. 4.500%, due 05/12/14	EUR	3,700,000		5,628,932
Roche Holdings, Inc. 6.500%, due 03/04/21	EUR	2,900,000		5,169,207
Teva Pharmaceutical Finance III BV 0.747%, due 03/21/145		1,550,000		1,560,653
				63,275,124
Total long-term global debt securities (cost—$516,153,677)				560,951,553
Repurchase agreement—0.83%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $23,931 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $3,439,624 US Treasury Bills, zero coupon due 08/04/11 and $1,356,580 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$4,906,252); proceeds: $4,810,004 (cost—$4,810,000)		4,810,000		4,810,000
	Number of shares
Investment of cash collateral from securities loaned—0.01%
Money market fund—0.01%
UBS Private Money Market Fund LLC7(cost—$65,600)		65,600		65,600
Total investments (cost—$521,029,277)— 97.95%				565,827,153
Other assets in excess of liabilities—2.05%				11,834,627
Net assets—100.00%			$	577,661,780

Aggregate cost for federal income tax purposes was $523,099,313; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	46,261,579
Gross unrealized depreciation		(3,533,739	)
Net unrealized appreciation	$	42,727,840

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

79

PACE Select Advisors Trust

PACE International Fixed Income Investments

Portfolio of investments—July 31, 2011

  Note: The portfolio of investments is listed by the issuer's country of incorporation.

¹  In local currency unless otherwise indicated.

²  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 4.44% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

³  Security, or portion thereof, was on loan at July 31, 2011.

⁴  Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At July 31, 2011, the value of these securities amounted to 2.43% of net assets.

⁵  Variable or floating rate security. The interest rate shown is the current rate as of July 31, 2011 and changes periodically.

⁶  Step bond that converts to the noted fixed rate at a designated future date.

⁷  The table below details the Portfolio's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	—	$	1,121,038	$	1,055,438	$	65,600	$	19

Futures contracts

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
US Treasury futures buy contracts:
	5	USD	US Treasury Bond 30 Year Futures	September 2011	$	630,479	$	640,625	$	10,146
Interest rate futures buy contracts:
	146	AUD	Australian Bond 10 Year Futures	September 2011		17,086,504		17,564,991		478,487
	233	CAD	Canada Government Bond 10 Year Futures	September 2011		30,235,873		31,099,184		863,311
	77	EUR	German Euro BOBL Futures	September 2011		12,864,350		13,218,141		353,791
	160	EUR	German Euro Bund Futures	September 2011		28,837,602		29,959,857		1,122,255
	86	EUR	German Euro Schatz Futures	September 2011		13,266,702		13,395,019		128,317
					$	102,921,510	$	105,877,817	$	2,956,307
					Proceeds
US Treasury futures sell contracts:
	137	USD	US Treasury Note 2 Year Futures	September 2011	$	29,980,163	$	30,129,297	$	(149,134	)
	256	USD	US Treasury Note 5 Year Futures	September 2011		30,363,736		31,090,000		(726,264	)
	613	USD	US Treasury Note 10 Year Futures	September 2011		74,598,013		77,046,438		(2,448,425	)
Interest rate futures sell contracts:
	24	GBP	United Kingdom Long Gilt 10 Year Futures	September 2011		4,731,805		4,932,549		(200,744	)
	2	JPY	Japan Government Bond 10 Year Futures	September 2011		3,652,529		3,680,072		(27,543	)
					$	143,326,246	$	146,878,356	$	(3,552,110	)
									$	(595,803	)

80

PACE Select Advisors Trust

PACE International Fixed Income Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Barclays Bank PLC	KRW	1,238,591,000	USD	1,133,826	12/01/11	$	(31,752	)
Barclays Bank PLC	PLN	8,892,387	USD	3,232,079	08/10/11		38,833
Barclays Bank PLC	PLN	8,949,201	USD	3,211,639	10/12/11		18,478
Barclays Bank PLC	USD	50,792	DKK	259,709	08/10/11		(711	)
Barclays Bank PLC	USD	2,817,494	KRW	3,031,060,000	12/01/11		34,888
Barclays Bank PLC	USD	3,211,639	PLN	8,892,387	08/10/11		(18,393	)
Citibank N.A.	AUD	10,010,667	CAD	10,236,607	10/12/11		(203,863	)
Citibank N.A.	AUD	31,079,155	USD	33,888,429	08/10/11		(225,034	)
Citibank N.A.	CAD	10,302,978	AUD	10,010,667	08/10/11		206,539
Citibank N.A.	CAD	1,409,295	USD	1,454,000	08/10/11		(20,748	)
Citibank N.A.	CAD	10,389,872	USD	10,929,000	10/12/11		71,801
Citibank N.A.	EUR	2,672,789	GBP	2,361,142	08/10/11		35,516
Citibank N.A.	GBP	2,358,536	EUR	2,672,789	10/12/11		(34,531	)
Citibank N.A.	GBP	39,000	USD	62,735	08/10/11		(1,275	)
Citibank N.A.	GBP	13,000	USD	21,205	10/12/11		(118	)
Citibank N.A.	JPY	2,021,913,465	USD	25,873,504	08/10/11		(393,047	)
Citibank N.A.	MXN	110,814,438	USD	9,425,000	10/12/11		44,724
Citibank N.A.	NOK	103,915,948	USD	19,354,805	08/10/11		64,226
Citibank N.A.	USD	10,513,181	AUD	9,943,687	08/10/11		401,325
Citibank N.A.	USD	33,467,544	AUD	30,935,189	10/12/11		218,674
Citibank N.A.	USD	1,058,583	CAD	1,035,214	08/10/11		24,709
Citibank N.A.	USD	4,723,064	CNY	30,400,000	12/01/11		4,778
Citibank N.A.	USD	39,696,108	EUR	27,457,383	08/10/11		(249,419	)
Citibank N.A.	USD	746,180	EUR	516,347	10/12/11		(5,505	)
Citibank N.A.	USD	13,569,744	JPY	1,094,383,834	08/10/11		647,327
Citibank N.A.	USD	25,839,648	JPY	2,018,321,997	10/12/11		399,405
Citibank N.A.	USD	1,061,224	MXN	12,620,688	08/10/11		13,248
Citibank N.A.	USD	19,211,675	NOK	103,915,948	08/10/11		78,905
Citibank N.A.	USD	19,354,805	NOK	104,341,754	10/12/11		(62,800	)
Citibank N.A.	USD	976,742	NZD	1,207,643	08/10/11		84,088
Credit Suisse London Branch	CAD	10,920,000	AUD	10,639,801	08/10/11		251,418
Credit Suisse London Branch	CHF	6,659,682	USD	8,300,738	08/10/11		(161,766	)
Credit Suisse London Branch	EUR	2,983,807	USD	4,311,900	08/10/11		25,209
Credit Suisse London Branch	JPY	106,627,547	USD	1,355,513	08/10/11		(29,679	)
Credit Suisse London Branch	MXN	10,355,490	USD	883,725	08/10/11		2,102
Credit Suisse London Branch	MXN	104,335,060	USD	8,909,150	10/12/11		77,344
Credit Suisse London Branch	NZD	1,207,643	USD	1,050,770	08/10/11		(10,059	)
Credit Suisse London Branch	PLN	12,027,334	USD	4,343,880	08/10/11		24,878
Credit Suisse London Branch	SGD	1,909,131	USD	1,586,448	08/10/11		895
Credit Suisse London Branch	USD	17,364,281	CAD	17,004,667	08/10/11		430,142
Credit Suisse London Branch	USD	7,903,260	CHF	6,659,682	08/10/11		559,244
Credit Suisse London Branch	USD	8,300,738	CHF	6,656,362	10/12/11		165,424
Credit Suisse London Branch	USD	1,726,013	EUR	1,204,000	08/10/11		3,715
Credit Suisse London Branch	USD	8,909,150	MXN	103,711,419	08/10/11		(79,600	)
Credit Suisse London Branch	USD	1,046,181	NZD	1,207,643	10/12/11		9,784

81

PACE Select Advisors Trust

PACE International Fixed Income Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(Concluded)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Credit Suisse London Branch	USD	8,060,795	PHP	348,710,000	12/01/11	$	132,255
Credit Suisse London Branch	USD	4,372,304	PLN	12,027,334	08/10/11		(53,302	)
Credit Suisse London Branch	USD	4,343,880	PLN	12,099,008	10/12/11		(26,837	)
Credit Suisse London Branch	USD	1,586,448	SGD	1,908,814	10/12/11		(924	)
Deutsche Bank AG London	GBP	2,367,119	USD	3,863,304	08/10/11		(21,889	)
Deutsche Bank AG London	PEN	2,760,000	USD	989,070	12/01/11		(13,048	)
Deutsche Bank AG London	USD	4,542,772	CAD	4,353,393	08/10/11		12,808
Deutsche Bank AG London	USD	1,733,655	CLP	826,000,000	12/01/11		45,611
Deutsche Bank AG London	USD	1,078,523	CNY	6,950,000	12/01/11		2,349
Deutsche Bank AG London	USD	220,426	EUR	151,991	08/10/11		(2,068	)
Deutsche Bank AG London	USD	991,593	PEN	2,760,000	12/01/11		10,525
Deutsche Bank AG London	USD	1,548,890	SGD	1,909,131	08/10/11		36,662
JPMorgan Chase Bank	EUR	5,963,150	USD	8,479,750	08/10/11		(87,218	)
JPMorgan Chase Bank	GBP	35,136	USD	56,748	08/10/11		(921	)
JPMorgan Chase Bank	MXN	105,976,617	USD	8,861,069	08/10/11		(161,331	)
JPMorgan Chase Bank	USD	243,744	CAD	239,000	08/10/11		6,356
JPMorgan Chase Bank	USD	2,532,629	CNY	16,300,000	12/01/11		2,365
JPMorgan Chase Bank	USD	1,729,028	EUR	1,218,909	08/10/11		22,119
JPMorgan Chase Bank	USD	91,173	EUR	64,000	10/12/11		632
JPMorgan Chase Bank	USD	130,467	GBP	80,113	08/10/11		1,024
JPMorgan Chase Bank	USD	12,518,661	JPY	1,004,901,675	08/10/11		535,954
JPMorgan Chase Bank	USD	910,214	MYR	2,800,000	12/01/11		24,741
JPMorgan Chase Bank	USD	3,598,385	TWD	102,500,000	12/01/11		(36,766	)
Morgan Stanley & Co. International PLC	DKK	16,024,490	USD	3,108,027	08/10/11		17,953
Morgan Stanley & Co. International PLC	EUR	18,412,537	USD	26,592,491	08/10/11		140,093
Morgan Stanley & Co. International PLC	GBP	2,000	USD	3,277	10/12/11		(4	)
Morgan Stanley & Co. International PLC	JPY	1,249,997	USD	15,490	08/10/11		(748	)
Morgan Stanley & Co. International PLC	SEK	21,869,176	USD	3,481,466	08/10/11		6,885
Morgan Stanley & Co. International PLC	USD	143,385	AUD	134,001	08/10/11		3,698
Morgan Stanley & Co. International PLC	USD	3,007,036	DKK	15,764,781	08/10/11		32,957
Morgan Stanley & Co. International PLC	USD	301,731	DKK	1,556,690	10/12/11		(1,990	)
Morgan Stanley & Co. International PLC	USD	24,532,155	EUR	16,987,733	10/12/11		(164,100	)
Morgan Stanley & Co. International PLC	USD	377,758	JPY	30,505,500	08/10/11		18,537
Morgan Stanley & Co. International PLC	USD	3,511,259	SEK	21,869,176	08/10/11		(36,679	)
Morgan Stanley & Co. International PLC	USD	3,481,466	SEK	21,946,465	10/12/11		(6,474	)
Royal Bank of Scotland PLC	GBP	4,000	USD	6,579	10/12/11		18
Royal Bank of Scotland PLC	USD	371,347	AUD	351,000	08/10/11		13,922
						$	2,862,484

82

PACE Select Advisors Trust

PACE International Fixed Income Investments

Portfolio of investments—July 31, 2011

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Long-term global debt securities	$	—		$	560,951,553	$	—	$	560,951,553
Repurchase agreement		—			4,810,000		—		4,810,000
Investment of cash collateral from securities loaned		—			65,600		—		65,600
Futures contracts, net		(595,803	)		—		—		(595,803	)
Forward foreign currency contracts, net		—			2,862,484		—		2,862,484
Total	$	(595,803	)	$	568,689,637	$	—	$	568,093,834

Investments by type of issuer (unaudited)

	Percentage of total investments
	Long-term			Short-term
Government and other public issuers		57.84	%		—
Repurchase agreement		—			0.85	%
Banks and other financial institutions		26.76			—
Industrial		14.54			—
Investment of cash collateral from securities loaned		—			0.01
		99.14	%		0.86	%

See accompanying notes to financial statements.
83

PACE Select Advisors Trust

PACE High Yield Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 10.30%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 8.12%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the BofA Merrill Lynch Global High Yield Index (hedged in USD) (the "benchmark") returned 12.12%, and the Lipper High Current Yield Funds category posted a median return of 12.16%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 87. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisor's comments¹

The Portfolio underperformed its benchmark during the reporting period. Our beta positioning helped relative performance in the first half of the reporting period, but detracted from results during the second half of the period. (Beta is a measure of volatility or risk relative to the market as a whole.)

We believe that the Portfolio has a beta slightly higher than the benchmark, and we have not changed this relative position since the third quarter of 2009. This stance was beneficial when the high yield market rallied during the first half of the period. However, our overweight exposure to autos and airlines were a drag on relative performance during the first quarter of 2011, as oil prices rose in response to unrest in the Middle East. In spite of this, Ford was our best performing issuer over the entire 12-month reporting period. General Motors, on the other hand, was the most significant laggard, and nearly offset the contribution from Ford.

The Portfolio's overweight in financials was a benefit during most of the fiscal year, but weighed heavily on relative results toward the end of the period due to concerns about European sovereign exposure and lower growth expectations. Non-European financials, such as Ally Financial and CIT Group, were among our top performers during the fiscal year, as they generally exceeded earnings expectations and recovered from the recession. Elsewhere, our exposure to housing and building materials companies were a drag on performance as the anticipated housing recovery did not take place. Among our poor-performing building materials companies were Texas Industries and US Concrete, the latter of which emerged from bankruptcy in the second half of 2010.

PACE Select Advisors Trust – PACE High Yield Investments

Investment Sub-Advisor:

MacKay Shields LLC ("MacKay Shields")

Portfolio Managers:

Dan Roberts, Taylor Wagenseil, Michael Kimble and Lou Cohen

Objective:

Total return

Investment process:

MacKay Shields attempts to deliver attractive risk-adjusted returns by avoiding most of the unusually large losses in the high yield market, even if it means giving up much of the large potential gains. MacKay Shields believes that there is a very small subset of bonds that delivers outsized gains in the market. Due to the limited upside inherent in most bonds, over time, outsized gains are expected to be smaller than unusually large losses. By attempting to limit the Portfolio's participation in the extremes of the market, MacKay Shields strives to add value over a market cycle with lower volatility. MacKay Shields seeks to do this through a rigorous process that attempts to screen out what it believes to be the riskiest issuers in the market.

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

84

PACE Select Advisors Trust

PACE High Yield Investments

Sub-Advisor's comments – concluded

We are maintaining our current positioning relative to the benchmark because the economic recovery, in our view, is still on track, and we believe growth will continue at a slow pace. Our positive outlook is based on accommodative monetary policy and a recapitalized financial sector. In addition, the corporate health of issuers in the high yield market remains strong, with solid balance sheets, high cash levels, refinanced debt structures and record profits. Furthermore, high yield default rates, just under 2%, are well below their long term average of 4%. With high yield spreads currently in the 700 basis point (7%) range, we believe the market represents attractive value, and we continue to maintain a portfolio beta that is similar to, or slightly above, the benchmark. (Spread measures the difference in yield between a fixed income security and a government bond of similar duration.)

The Portfolio used currency forwards during the reporting period to hedge the currency exposure of the Portfolio into US dollars. Overall, the use of these derivatives during the period detracted from performance.

Special considerations

The Portfolio may be appropriate for long-term investors seeking total return and who are able to withstand short-term fluctuations in the fixed income markets in return for potentially higher returns over the long term. The Portfolio seeks to achieve its objective by investing primarily in a professionally managed, diversified portfolio of fixed income securities rated below investment grade or considered to be of comparable quality (commonly referred to as "junk bonds"). These securities are subject to higher risks than investment grade securities, including greater price volatility and a greater risk of loss of principal and nonpayment of interest. Issuers of such securities are typically in poor financial health, and their ability to pay interest and principal is uncertain. The prices of such securities may be more vulnerable to bad economic news, or even the expectation of bad news, than higher rated or investment grade bonds and other fixed income securities. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers in which the Portfolio invests. In addition, investments in foreign bonds involve special risks. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.

85

PACE Select Advisors Trust

PACE High Yield Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE High Yield Investments Class P shares versus the BofA Merrill Lynch Global High Yield Index (hedged in USD) from April 30, 2006, which is the month-end after the inception date of the Class P shares, through July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that PACE High Yield Investments is a professionally managed portfolio while the Index is not available for investment and is unmanaged. The comparison is shown for illustration purposes only.

86

PACE Select Advisors Trust

PACE High Yield Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			Since inception1
Before deducting	Class A2		10.00	%		9.15	%		8.72	%
maximum sales charge	Class C3		9.50	%		N/A			22.98	%
or PACE Select	Class Y4		10.24	%		N/A			27.66	%
program fee	Class P5		10.30	%		9.42	%		8.97	%
After deducting maximum sales charge	Class A2		5.05	%		8.15	%		7.77	%
or PACE Select	Class C3		8.75	%		N/A			22.98	%
program fee	Class P5		8.12	%		7.25	%		6.81	%
BofA Merrill Lynch Global High Yield Index (hedged in USD)6			12.12	%		9.33	%		9.03	%
Lipper High Current Yield Funds median			12.16	%		7.38	%		7.05	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 8.79%; 5-year period, 8.27%; since inception, 7.84%; Class C—1-year period, 12.60%; since inception, 23.73%; Class Y—1 year period, 14.11%; since inception, 28.54%; Class P—1-year period, 11.92%; 5-year period, 7.37%; since inception, 6.88%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.35% and 1.35%; Class B—2.06% and 2.06%; Class C—1.81% and 1.81%; Class Y—1.10% and 1.10%; and Class P—1.19% and 1.10%. Class B shares were not operational as of November 28, 2010. Therefore these amounts have been estimated. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.35%; Class B—2.10%; Class C—1.85%; Class Y—1.10% and Class P—1.10%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Since inception returns are calculated as of commencement of issuance on April 10, 2006 for Class P shares, May 1, 2006 for Class A shares and January 21, 2009 for Class C shares. Class Y shares commenced issuance on April 3, 2006 and had fully redeemed by July 24, 2006 remaining inactive through December 25, 2008. The inception return of Class Y shares is calculated from December 26, 2008, which is the date the Class Y shares recommenced investment operations. Since inception returns for the Index and Lipper median are shown as of April 30, 2006, which is the month-end after the inception date of the oldest share class (Class P).

²  Maximum sales charge for Class A shares is 4.5%. Class A shares bear ongoing 12b-1 service fees.

³  Maximum contingent deferred sales charge for Class C shares is 0.75% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  The BofA Merrill Lynch Global High Yield Index (hedged in USD) is an unmanaged index which covers US dollar, Canadian dollar, sterling and  euro-denominated fixed rate debt of corporate issuers domiciled in an investment grade rated country (i.e., BBB or higher foreign currency long-term debt rating). Individual bonds must be rated below investment grade (i.e., BB or lower based on a composite of Moody's and S&P) but not in default; and must have at least one year remaining term to maturity; a minimum face value outstanding of $100 million, C$50 million, 50 million pounds sterling or 50 million euros; and have available price quotations. New issues qualify for inclusion after they settle. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

87

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Weighted average duration		3.7 yrs.
Weighted average maturity		4.5 yrs.
Average coupon		7.05	%
Net assets (mm)	$	277.9
Number of holdings		297
Portfolio composition1	07/31/11
Bonds and loan assignments		94.7	%
Common stocks, preferred stock and warrants		2.2
Forward foreign currency contracts		(0.4	)
Cash equivalents and other assets less liabilities		3.5
Total		100.0	%
Quality diversification1	07/31/11
BB & higher		41.6	%
B		36.1
CCC & lower		7.5
Not rated		11.7
Forward foreign currency contracts		(0.4	)
Cash equivalents and other assets less liabilities		3.5
Total		100.0	%
Asset allocation1	07/31/11
Corporate bonds		88.0	%
Loan assignments		3.6
Asset-backed securities		2.7
Common stocks, preferred stock and warrants		2.2
Collateralized mortgage obligations		0.4
Forward foreign currency contracts		(0.4	)
Cash equivalents and other assets less liabilities		3.5
Total		100.0	%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Ratings Group, an independent rating agency.

88

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate bonds—88.00%
Aerospace & defense—2.45%
Alliant Techsystems, Inc. 6.750%, due 04/01/16		55,000	$	56,513
6.875%, due 09/15/20		2,150,000		2,236,000
BE Aerospace, Inc. 6.875%, due 10/01/20		500,000		537,500
8.500%, due 07/01/18		600,000		662,250
Ducommun, Inc. 9.750%, due 07/15/182		1,115,000		1,145,662
Hexcel Corp. 6.750%, due 02/01/15		453,000		462,626
TransDigm, Inc. 7.750%, due 12/15/182		1,600,000		1,704,000
				6,804,551
Airlines—2.85%
American Airlines Pass Through Trust 2001-01, 6.977%, due 05/23/21		356,673		299,605
Class B 7.377%, due 05/23/19		254,956		214,163
Continental Airlines Pass Through Trust 2003-ERJ1, Series RJ03 7.875%, due 07/02/18		875,214		866,462
Continental Airlines Pass Through Trust 2004-ERJ1, Series RJ04 9.558%, due 09/01/19		789,498		821,078
Continental Airlines Pass Through Trust 2005-ERJ1, Series ERJ1 9.798%, due 04/01/21		1,133,569		1,173,244
Delta Air Lines, Inc. 12.250%, due 03/15/152,3,4		2,105,000		2,344,444
Delta Air Lines Pass Through Trust 2001-1, Class B 7.711%, due 09/18/11		280,000		281,736
Delta Air Lines Pass Through Trust 2010-1, Class B 6.375%, due 01/02/16		1,200,000		1,140,000
United Air Lines Pass Through Trust 2009-2A 9.750%, due 01/15/17		680,347		772,194
				7,912,926
Auto & truck—1.97%
Ford Holdings, Inc. 9.300%, due 03/01/30		1,145,000		1,456,154
9.375%, due 03/01/20		285,000		336,086

	Face amount1		Value
Corporate bonds—(Continued)
Auto & truck—(Concluded)
Ford Motor Co. 6.625%, due 10/01/28		1,595,000	$	1,629,029
General Motors Co. 8.375%, due 07/15/495,6*		10,190,000		216,538
Navistar International Corp. 8.250%, due 11/01/21		1,685,000		1,832,437
				5,470,244
Automotive parts—0.36%
Goodyear Tire & Rubber Co. 8.250%, due 08/15/204		420,000		460,950
10.500%, due 05/15/16		475,000		534,969
				995,919
Banking-non-US—3.09%
Deutsche Postbank Funding Trust IV 5.983%, due 06/29/177,8	EUR	850,000		995,412
EGG Banking PLC 7.500%, due 12/09/137,8	GBP	1,560,000		2,492,788
HBOS Capital Funding LP 6.461%, due 11/30/187,8	GBP	1,400,000		1,712,034
HT1 Funding GmbH 6.352%, due 06/30/177,8	EUR	2,100,000		2,249,538
IKB Deutsche Industriebank AG 4.500%, due 07/09/13	EUR	1,000,000		1,142,335
				8,592,107
Banking-US—1.01%
Fifth Third Capital Trust IV 6.500%, due 04/15/378		1,600,000		1,556,000
Wachovia Capital Trust III 5.570%, due 09/19/117,8		750,000		699,375
Wells Fargo & Co., Series K 7.980%, due 06/15/187,8		525,000		562,406
				2,817,781
Beverages—0.45%
Constellation Brands, Inc. 7.250%, due 09/01/16		590,000		650,475
7.250%, due 05/15/17		225,000		246,375
8.375%, due 12/15/14		300,000		344,250
				1,241,100
Broadcast—0.73%
Clear Channel Communications, Inc. 6.875%, due 06/15/18		730,000		459,900
7.250%, due 10/15/27		445,000		229,175
9.000%, due 03/01/212		775,000		732,375
Clear Channel Worldwide Holdings, Inc. 9.250%, due 12/15/17		550,000		600,875
				2,022,325

89

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate bonds—(Continued)
Building & construction—2.91%
Beazer Homes USA, Inc. 8.125%, due 06/15/16		1,255,000	$	1,073,025
D.R. Horton, Inc. 5.625%, due 01/15/16		195,000		198,169
6.500%, due 04/15/16		255,000		266,475
K. Hovnanian Enterprises, Inc. 6.500%, due 01/15/14		580,000		475,600
10.625%, due 10/15/164		1,490,000		1,381,975
Meritage Homes Corp. 6.250%, due 03/15/15		550,000		546,563
PERI GmbH 5.625%, due 12/15/119	EUR	335,000		481,361
Pulte Group, Inc. 6.375%, due 05/15/33		567,000		462,105
7.875%, due 06/15/32		870,000		793,875
Shea Homes LP/Shea Homes Funding Corp. 8.625%, due 05/15/192		1,045,000		1,042,388
Standard Pacific Corp. 8.375%, due 05/15/18		1,365,000		1,375,237
				8,096,773
Building materials—0.43%
Interface, Inc. 7.625%, due 12/01/18		1,130,000		1,203,450
Building products—1.10%
Associated Materials LLC 9.125%, due 11/01/174		1,110,000		1,121,100
USG Corp. 6.300%, due 11/15/16		1,235,000		1,062,100
8.375%, due 10/15/182		210,000		204,750
9.750%, due 01/15/183		690,000		664,125
				3,052,075
Building products-cement—0.92%
Hanson Ltd. 6.125%, due 08/15/16		600,000		627,000
HeidelbergCement Finance BV 7.500%, due 04/03/20	EUR	395,000		593,116
Texas Industries, Inc. 9.250%, due 08/15/20		1,350,000		1,328,063
				2,548,179
Cable—1.77%
CCO Holdings LLC/CCO Holdings Capital Corp. 7.000%, due 01/15/19		1,035,000		1,076,400
Cequel Communications Holdings I LLC/Cequel Capital Corp. 8.625%, due 11/15/172		1,405,000		1,494,569
Dish DBS Corp. 6.625%, due 10/01/14		800,000		853,000
6.750%, due 06/01/212		675,000		696,937
7.125%, due 02/01/16		750,000		800,625
				4,921,531

	Face amount1		Value
Corporate bonds—(Continued)
Car rental—1.64%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 2.761%, due 05/15/144,8		200,000	$	194,000
8.250%, due 01/15/19		1,425,000		1,469,531
Europcar Groupe SA 4.920%, due 05/15/138,9	EUR	300,000		415,982
Hertz Corp. 6.750%, due 04/15/192		300,000		300,000
7.375%, due 01/15/212		585,000		598,163
8.875%, due 01/01/144		99,000		101,599
Hertz Holdings Netherlands BV 8.500%, due 07/31/159	EUR	1,000,000		1,487,191
				4,566,466
Chemicals—2.34%
Hexion US Finance Corp./Hexion Nova Scotia Finance ULC 8.875%, due 02/01/18		1,380,000		1,462,800
Huntsman International LLC 6.875%, due 11/15/139	EUR	600,000		877,658
7.500%, due 01/01/15	EUR	650,000		945,659
Lyondell Chemical Co. 8.000%, due 11/01/172		1,210,000		1,367,300
Nalco Co. 6.625%, due 01/15/192		880,000		987,800
Rockwood Specialties Group, Inc. 7.625%, due 11/15/14	EUR	270,000		388,933
Vertellus Specialties, Inc. 9.375%, due 10/01/152,4		470,000		485,863
				6,516,013
Coal—1.55%
Alpha Natural Resources, Inc. 6.000%, due 06/01/19		1,045,000		1,077,656
6.250%, due 06/01/21		170,000		175,950
Arch Coal, Inc. 7.000%, due 06/15/192		1,000,000		1,047,500
Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp. 8.250%, due 12/15/17		1,270,000		1,358,900
8.500%, due 12/15/19		605,000		654,156
				4,314,162
Commercial services—1.44%
Iron Mountain, Inc. 6.750%, due 10/15/18	EUR	495,000		689,927
8.375%, due 08/15/21		1,000,000		1,070,000
United Rentals North America, Inc. 9.250%, due 12/15/19		2,015,000		2,254,281
				4,014,208

90

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate bonds—(Continued)
Computer software & services—0.22%
Sungard Data Systems, Inc. 10.250%, due 08/15/15		600,000	$	622,500
Consumer products—0.54%
Jarden Corp. 7.500%, due 01/15/20		670,000		703,500
7.500%, due 01/15/20	EUR	550,000		794,246
				1,497,746
Containers & packaging—1.72%
Ball Corp. 7.375%, due 09/01/19		310,000		341,000
OI European Group BV 6.875%, due 03/31/179	EUR	115,000		165,656
Owens-Brockway Glass Container, Inc. 7.375%, due 05/15/16		750,000		819,375
Packaging Dynamics Corp. 8.750%, due 02/01/162		1,445,000		1,488,350
Rexam PLC 6.750%, due 06/29/678	EUR	1,406,000		1,964,723
				4,779,104
Diversified capital goods—0.45%
Mueller Water Products, Inc. 7.375%, due 06/01/17		445,000		424,975
8.750%, due 09/01/20		755,000		822,950
				1,247,925
Diversified financial services—4.80%
Ally Financial, Inc. 4.500%, due 02/11/14		260,000		258,700
6.750%, due 12/01/144		40,000		41,841
6.750%, due 12/01/14		725,000		761,250
7.500%, due 09/15/20		1,760,000		1,848,000
8.300%, due 02/12/15		645,000		706,275
Bank of America Corp. 8.000%, due 01/30/187,8		345,000		355,319
Capital One Capital III 7.686%, due 08/15/36		2,000,000		2,045,000
First Data Corp. 8.875%, due 08/15/202		1,715,000		1,835,050
GE Capital Trust III 6.500%, due 09/15/678,9	GBP	1,750,000		2,843,814
Mizuho Capital Investment USD 2 Ltd. 14.950%, due 06/30/142,7,8		1,000,000		1,267,350
Pinafore LLC/Pinafore, Inc. 9.000%, due 10/01/182		1,250,000		1,365,625
				13,328,224
Diversified manufacturing—0.83%
Bombardier, Inc. 7.500%, due 03/15/182		270,000		302,400
7.750%, due 03/15/202		1,770,000		1,991,250
				2,293,650

	Face amount1		Value
Corporate bonds—(Continued)
Diversified operations—0.78%
Icahn Enterprises LP 4.000%, due 08/15/138		900,000	$	867,465
8.000%, due 01/15/18		1,250,000		1,290,625
				2,158,090
Electric utilities—1.71%
Edison Mission Energy 7.200%, due 05/15/19		150,000		112,875
7.625%, due 05/15/27		65,000		44,850
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc. 10.000%, due 12/01/20		2,028,000		2,139,832
NRG Energy, Inc. 7.625%, due 01/15/182		250,000		254,375
8.250%, due 09/01/20		1,835,000		1,890,050
8.500%, due 06/15/19		295,000		306,800
				4,748,782
Electric-generation—1.19%
Calpine Corp. 7.875%, due 07/31/202		1,415,000		1,492,825
Intergen N.V. 8.500%, due 06/30/179	EUR	205,000		307,820
9.000%, due 06/30/172		400,000		422,000
9.500%, due 06/30/179	GBP	490,000		862,623
Tenaska Alabama Partners LP 7.000%, due 06/30/212		212,281		221,834
				3,307,102
Electric-integrated—0.27%
Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc. 11.500%, due 10/01/202,4		800,000		740,000
Electronics—0.95%
Freescale Semiconductor, Inc. 9.250%, due 04/15/182		1,180,000		1,286,200
10.125%, due 03/15/182,4		569,000		634,435
SGL Carbon SE 2.670%, due 05/16/158,9	EUR	500,000		707,673
				2,628,308
Finance-captive automotive—1.06%
Ally Credit Canada Ltd. 6.000%, due 05/23/12	EUR	300,000		431,958
FCE Bank PLC 7.125%, due 01/15/13	EUR	800,000		1,186,879
Ford Motor Credit Co. LLC 8.000%, due 12/15/16		1,165,000		1,334,309
				2,953,146

91

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate bonds—(Continued)
Finance-noncaptive consumer—1.57%
CIT Group, Inc. 7.000%, due 05/01/15		773	$	775
7.000%, due 05/04/152		505,000		506,263
7.000%, due 05/01/16		957		959
7.000%, due 05/02/162		1,308,000		1,311,270
7.000%, due 05/01/17		416		417
7.000%, due 05/02/172		2,550,000		2,556,375
				4,376,059
Finance-other—1.88%
SLM Corp. MTN 8.000%, due 03/25/20		2,000,000		2,191,306
8.450%, due 06/15/18		600,000		670,836
Springleaf Finance Corp. 3.250%, due 01/16/13	EUR	1,000,000		1,353,119
6.900%, due 12/15/17		350,000		327,687
Springleaf Finance Corp. MTN 6.500%, due 09/15/17		545,000		495,950
Series H 5.375%, due 10/01/12		175,000		173,688
				5,212,586
Financial services—1.47%
HSBC Finance Capital Trust IX 5.911%, due 11/30/358		1,450,000		1,341,250
Northern Rock Asset Management PLC 9.375%, due 10/17/21	GBP	2,000,000		2,757,638
				4,098,888
Food—0.17%
Smithfield Foods, Inc. 10.000%, due 07/15/14		410,000		479,188
Food-wholesale—0.08%
Barry Callebaut Services N.V. 6.000%, due 07/13/17	EUR	140,000		211,224
Gaming—4.50%
Caesars Entertainment Operating Co., Inc. 10.000%, due 12/15/18		2,709,000		2,387,045
12.750%, due 04/15/18		370,000		370,000
Isle of Capri Casinos, Inc. 7.000%, due 03/01/144		1,380,000		1,380,000
7.750%, due 03/15/192,4		575,000		586,500
MGM Resorts International 5.875%, due 02/27/144		55,000		53,900
6.625%, due 07/15/154		1,735,000		1,669,937
7.500%, due 06/01/16		1,485,000		1,447,875
Mohegan Tribal Gaming Authority 6.125%, due 02/15/134		1,475,000		1,235,313
11.500%, due 11/01/172,4		285,000		289,275
Pinnacle Entertainment, Inc. 7.500%, due 06/15/15		1,570,000		1,617,100

	Face amount1		Value
Corporate bonds—(Continued)
Gaming—(Concluded)
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 7.750%, due 08/15/20		1,340,000	$	1,480,700
				12,517,645
Health care providers & services—1.35%
Fresenius Medical Care US Finance, Inc. 6.875%, due 07/15/17		365,000		390,550
HCA, Inc. 6.500%, due 02/15/16		3,165,000		3,236,213
7.500%, due 02/15/22		55,000		55,825
9.250%, due 11/15/16		55,000		58,678
				3,741,266
Hotels, restaurants & leisure—0.47%
Royal Caribbean Cruises Ltd. 5.625%, due 01/27/149	EUR	925,000		1,315,841
Household durables—0.58%
Libbey Glass, Inc. 10.000%, due 02/15/15		1,493,000		1,619,905
Insurance—2.93%
American International Group, Inc. 5.000%, due 04/26/23	GBP	750,000		1,104,551
Series A2 4.875%, due 03/15/678	EUR	1,500,000		1,691,949
Series A3 5.750%, due 03/15/678	GBP	600,000		802,670
Hartford Life, Inc. 7.650%, due 06/15/27		885,000		965,637
Liberty Mutual Group, Inc. 7.800%, due 03/15/372,4		2,000,000		2,020,000
Lincoln National Corp. 7.000%, due 05/17/668		1,555,000		1,570,550
				8,155,357
Machinery—1.13%
Boart Longyear Management Pty Ltd. 7.000%, due 04/01/212		1,745,000		1,792,988
Terex Corp. 8.000%, due 11/15/17		1,335,000		1,360,031
				3,153,019
Machinery-agriculture & construction—0.25%
CNH America LLC 7.250%, due 01/15/16		625,000		687,500
Manufacturing-diversified—1.57%
American Railcar Industries, Inc. 7.500%, due 03/01/14		1,520,000		1,542,800
Amsted Industries, Inc. 8.125%, due 03/15/182		1,110,000		1,168,275
Polypore International, Inc. 7.500%, due 11/15/17		760,000		807,500

92

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate bonds—(Continued)
Manufacturing-diversified—(Concluded)
SPX Corp. 6.875%, due 09/01/172		390,000	$	418,275
7.625%, due 12/15/14		385,000		427,350
				4,364,200
Media—0.69%
EN Germany Holdings BV 10.750%, due 11/15/159	EUR	1,000,000		1,420,375
Lamar Media Corp. 6.625%, due 08/15/15		285,000		288,919
Series C 6.625%, due 08/15/15		105,000		106,181
Lighthouse International Co. SA 8.000%, due 04/30/149	EUR	275,000		106,690
				1,922,165
Medical products—0.14%
Bausch & Lomb, Inc. 9.875%, due 11/01/15		370,000		391,275
Metals—2.45%
Aleris International, Inc. 6.000%, due 06/01/205,10		13,347		13,347
7.625%, due 02/15/182		1,415,000		1,436,225
Century Aluminum Co. 8.000%, due 05/15/14		1,628,150		1,693,276
Novelis, Inc. 8.375%, due 12/15/17		1,750,000		1,905,312
Vedanta Resources PLC 8.250%, due 06/07/212		1,700,000		1,757,460
				6,805,620
Metals & mining—1.35%
Arch Western Finance LLC 6.750%, due 07/01/133		467,000		469,919
FMG Resources August 2006 Pty Ltd. 6.875%, due 02/01/182		525,000		546,000
7.000%, due 11/01/152		630,000		652,837
Foundation PA Coal Co. 7.250%, due 08/01/14		1,160,000		1,186,100
Glencore Finance Europe SA 6.500%, due 02/27/19	GBP	500,000		891,538
				3,746,394
Oil & gas—7.73%
AmeriGas Partners LP/AmeriGas Finance Corp. 6.500%, due 05/20/21		1,420,000		1,455,500
Berry Petroleum Co. 6.750%, due 11/01/20		1,120,000		1,148,000
Chesapeake Energy Corp. 6.250%, due 01/15/17	EUR	515,000		754,885
6.625%, due 08/15/20		645,000		696,600
6.875%, due 08/15/18		645,000		696,600
Concho Resources, Inc. 6.500%, due 01/15/22		300,000		313,500
7.000%, due 01/15/21		1,635,000		1,761,712

	Face amount1		Value
Corporate bonds—(Continued)
Oil & gas—(Concluded)
Denbury Resources, Inc. 9.750%, due 03/01/16		200,000	$	223,500
El Paso Corp. 6.875%, due 06/15/14		1,030,000		1,150,686
Energy Transfer Equity LP 7.500%, due 10/15/20		1,500,000		1,605,000
Ferrellgas LP/Ferrellgas Finance Corp. 6.500%, due 05/01/21		430,000		414,950
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp. 8.625%, due 06/15/20		715,000		752,538
Hilcorp Energy I LP/Hilcorp Finance Co. 7.625%, due 04/15/212		400,000		424,000
8.000%, due 02/15/202		355,000		383,400
Inergy LP/Inergy Finance Corp. 6.875%, due 08/01/212		960,000		964,800
Linn Energy LLC/Linn Energy Finance Corp. 8.625%, due 04/15/20		1,790,000		1,982,425
MarkWest Energy Partners LP/MarkWest Energy Finance Corp. 6.500%, due 08/15/21		925,000		964,312
OGX Petroleo e Gas Participacoes SA 8.500%, due 06/01/182		1,395,000		1,470,330
Precision Drilling Corp. 6.500%, due 12/15/212		515,000		525,300
6.625%, due 11/15/20		855,000		884,925
Swift Energy Co. 7.125%, due 06/01/17		500,000		515,000
8.875%, due 01/15/20		895,000		975,550
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 7.875%, due 10/15/182		730,000		764,675
8.250%, due 07/01/16		630,000		667,800
				21,495,988
Oil refining—0.22%
Tesoro Corp. 6.250%, due 11/01/12		430,000		451,500
6.500%, due 06/01/17		160,000		164,000
				615,500
Oil services—2.45%
Basic Energy Services, Inc. 7.125%, due 04/15/16		1,110,000		1,129,425
7.750%, due 02/15/192		420,000		430,500
Cie Generale de Geophysique—Veritas 6.500%, due 06/01/212		1,350,000		1,333,125
Geokinetics Holdings, Inc. 9.750%, due 12/15/14		915,000		894,412

93

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Corporate bonds—(Continued)
Oil services—(Concluded)
Helix Energy Solutions Group, Inc. 9.500%, due 01/15/162		1,245,000	$	1,307,250
Hornbeck Offshore Services, Inc., 8.000%, due 09/01/17		335,000		342,538
Series B 6.125%, due 12/01/14		1,375,000		1,375,000
				6,812,250
Packaging—1.19%
Reynolds Group Issuer 8.500%, due 10/15/163,9	EUR	1,100,000		1,608,250
8.750%, due 05/15/182,3		1,765,000		1,694,400
				3,302,650
Paper & forest products—2.89%
Boise Cascade LLC 7.125%, due 10/15/14		1,980,000		1,965,150
Boise Paper Holdings LLC/Boise Co-Issuer Co. 8.000%, due 04/01/20		155,000		163,137
Boise Paper Holdings LLC/Boise Finance Co. 9.000%, due 11/01/17		1,290,000		1,409,325
Domtar Corp. 9.500%, due 08/01/16		250,000		304,375
10.750%, due 06/01/17		1,185,000		1,528,650
Norske Skogindustrier ASA 7.000%, due 06/26/17	EUR	505,000		522,457
7.125%, due 10/15/332		1,850,000		1,193,250
Stora Enso Oyj 7.250%, due 04/15/362		1,000,000		935,000
				8,021,344
Pharmaceuticals—0.31%
Mylan, Inc. 6.000%, due 11/15/182		850,000		869,125
Railroads—0.66%
RailAmerica, Inc. 9.250%, due 07/01/17		1,674,000		1,841,400
Real estate investment trusts—0.89%
Host Hotels & Resorts, Inc. 6.000%, due 11/01/20		1,315,000		1,346,231
Prologis International Funding SA 7.625%, due 10/23/143	EUR	750,000		1,126,709
				2,472,940
Steel—0.78%
APERAM 7.375%, due 04/01/162		1,000,000		992,500
US Steel Corp. 7.000%, due 02/01/18		1,170,000		1,175,850
				2,168,350
Support-services—0.20%
TUI AG 5.125%, due 12/10/129	EUR	380,000		547,387

	Face amount1		Value
Corporate bonds—(Concluded)
Telecom-integrated/services—1.14%
EH Holding Corp. 7.625%, due 06/15/212		368,000	$	379,040
Intelsat Luxembourg SA 11.500%, due 02/04/1711		1,250,000		1,343,750
Satmex Escrow SA de C.V. 9.500%, due 05/15/172		1,400,000		1,435,000
				3,157,790
Telecommunication services—0.91%
Alcatel-Lucent USA, Inc. 6.450%, due 03/15/29		1,020,000		920,550
CommScope, Inc. 8.250%, due 01/15/192		1,560,000		1,622,400
				2,542,950
Telephone-integrated—0.82%
Frontier Communications Corp. 7.000%, due 11/01/25		965,000		933,637
7.050%, due 10/01/46		265,000		224,588
Virgin Media Finance PLC 9.500%, due 08/15/16	EUR	700,000		1,129,044
				2,287,269
Transportation—0.94%
Stena AB 5.875%, due 02/01/199	EUR	650,000		747,187
6.125%, due 02/01/179	EUR	1,500,000		1,864,377
				2,611,564
Transportation services—0.82%
Hapag-Lloyd AG 9.750%, due 10/15/172,4		1,130,000		1,039,600
PHI, Inc. 8.625%, due 10/15/18		1,000,000		1,025,000
Teekay Corp. 8.500%, due 01/15/20		195,000		203,775
				2,268,375
Wireless telecommunication services—1.93%
Crown Castle International Corp. 7.125%, due 11/01/19		1,000,000		1,066,250
9.000%, due 01/15/15		430,000		470,850
MetroPCS Wireless, Inc. 6.625%, due 11/15/20		490,000		491,225
7.875%, due 09/01/18		500,000		531,875
Nextel Communications, Inc. 5.950%, due 03/15/14		1,500,000		1,504,687
ViaSat, Inc. 8.875%, due 09/15/16		1,250,000		1,312,500
				5,377,387
Total corporate bonds (cost—$226,631,042)				244,584,788

94

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

	Face amount1		Value
Loan assignments8—3.58%
Airlines—0.80%
US Airways Group, Inc. Term Loan 2.687%, due 08/30/11		2,465,278	$	2,227,600
Broadcast—0.34%
Clear Channel Communication, Inc. Delay Draw Term Loan 2 3.837%, due 08/31/11		1,137,550		939,048
Computer software & services—0.65%
Sungard Data Systems, Inc. Tranche B 3.842%, due 09/12/11		1,166,071		1,154,993
3.845%, due 08/15/11		80,858		80,090
3.848%, due 08/08/11		188,076		186,289
3.893%, due 08/08/11		376,152		372,579
				1,793,951
Defense/aerospace—0.31%
Hawker Beechcraft Acquisition Co. LLC LC Facility Deposits 2.246%, due 09/29/11		60,863		49,786
Hawker Beechcraft Acquisition Co. LLC Term Loan 2.187%, due 08/31/11		862,514		582,731
2.246%, due 09/30/11		121,726		222,378
				854,895
Paper & packaging—0.30%
Georgia-Pacific Corp. New Term Loan B 2.246%, due 08/31/11		17,099		17,068
2.250%, due 08/10/11		828,176		826,702
				843,770
Support-services—0.36%
KAR Auction Services, Inc. Term Loan B 5.000%, due 08/31/11		1,000,000		1,004,170
Telecom-integrated/services—0.54%
Intelsat Jackson Holdings SA Tranche B Term Loan 5.250%, due 10/12/11		1,496,250		1,497,746
Wireless telecommunication services—0.28%
MetroPCS Wireless, Inc. Extended Term Loan B 4.009%, due 08/01/11		509,820		508,928
4.009%, due 08/31/11		267,146		266,678
				775,606
Total loan assignments (cost—$10,010,760)				9,936,786

	Face amount1		Value
Asset-backed securities—2.75%
Citigroup Mortgage Loan Trust, Inc., Series 2007-AHL2, Class A3A 0.257%, due 05/25/378		797,630	$	708,502
GSAA Home Equity Trust, Series 2006-14, Class A1 0.237%, due 09/25/368		867,677		378,851
Home Equity Loan Trust, Series 2007-FRE1, Class 2AV1 0.317%, due 04/25/378		735,753		519,295
HSI Asset Securitization Corp. Trust, Series 2007-NC1, Class A1 0.287%, due 04/25/378		1,206,197		1,040,746
Merrill Lynch Mortgage Investors Trust, Series 2007-MLN1, Class A2A 0.297%, due 03/25/378		1,866,875		956,977
Morgan Stanley Capital, Inc., Series 2006-HE6, Class A2B 0.287%, due 09/25/368		831,157		727,054
Series 2006-HE8, Class A2B 0.287%, due 10/25/368		323,490		211,776
Renaissance Home Equity Loan Trust, Series 2007-2, Class AF1 5.893%, due 06/25/373		1,481,749		959,038
Soundview Home Equity Loan Trust, Series 2006-EQ2, Class A2 0.297%, due 01/25/378		1,707,567		1,475,140
Series 2007-OPT1, Class 2A1 0.267%, due 06/25/378		782,720		675,682
Total asset-backed securities (cost—$9,724,291)				7,653,061
Collateralized mortgage obligations—0.42%
Banc of America Mortgage Securities, Series 2005-J, Class 1A1 3.072%, due 11/25/358		867,133		671,578
Countrywide Alternative Loan Trust, Series 2006-OC6, Class 2A1 0.257%, due 07/25/368		20,328		20,209
WaMu Mortgage Pass-Through Certificates, Series 2006-AR14, Class 1A1 5.368%, due 11/25/368		545,041		471,495
Total collateralized mortgage obligations (cost—$1,291,319)				1,163,282

95

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—1.17%
Automobiles—0.52%
General Motors Co.*		52,394	$	1,450,266
Building products—0.02%
Nortek, Inc.*		1,375		42,625
Construction materials—0.18%
US Concrete, Inc.5,*		59,953		505,404
Diversified financial services—0.17%
CIT Group, Inc.*		11,794		468,693
Metals—0.28%
Aleris International, Inc.5,10,*		15,446		772,300
Total common stocks (cost—$3,669,714)				3,239,288
Preferred stock—0.44%
Diversified financial services—0.44%
SG Preferred Capital II LLC2,12(cost—$1,221,875)		1,250		1,230,078
	Number of warrants
Warrants*—0.57%
Automobiles—0.56%
General Motors Co., strike price $10.00, expires 07/10/16		47,630		896,873
General Motors Co., strike price $18.33, expires 07/10/19		47,630		647,291
				1,544,164
Cable—0.01%
Charter Communications, Inc., strike price $46.86, expires 11/30/14		1,818		25,016
Total warrants (cost—$1,999,455)				1,569,180

	Face amount1		Value
Repurchase agreement—1.52%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $21,026 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $3,022,006 US Treasury Bills, zero coupon due 08/04/11 and $1,191,872 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$4,310,565); proceeds: $4,226,004 (cost—$4,226,000)		4,226,000	$	4,226,000
	Number of shares
Investment of cash collateral from securities loaned—5.26%
Money market fund—5.26%
UBS Private Money Market Fund LLC13(cost—$14,627,018)		14,627,018		14,627,018
Total investments (cost—$273,401,474)—103.71%				288,229,481
Liabilities in excess of other assets—(3.71)%				(10,305,876	)
Net assets—100.00%			$	277,923,605

Aggregate cost for federal income tax purposes was $273,403,538; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	20,801,652
Gross unrealized depreciation		(5,975,709	)
Net unrealized appreciation	$	14,825,943

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  Non-income producing security.

¹  In US Dollars unless otherwise indicated.

²  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 22.12% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

³  Step bond that converts to the noted fixed rate at a designated future date.

⁴  Security, or portion thereof, was on loan at July 31, 2011.

⁵  Illiquid securities representing 0.54% of net assets as of July 31, 2011.

96

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

⁶  Security exchanged on 04/21/11; position represents remaining escrow balance expected to be received upon finalization of debt restructuring.

⁷  Perpetual bond security. The maturity date reflects the next call date.

⁸  Variable or floating rate security. The interest rate shown is the current rate as of July 31, 2011, and changes periodically.

⁹  Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At July 31, 2011, the value of these securities amounted to 5.67% of net assets.

¹⁰  Security is being fair valued by a valuation committee under the direction of the board of trustees.

¹¹  Payment-in-kind security for which interest may be paid in cash or additional securities, at the discretion of the issuer.

¹²  Non cumulative preferred stock. Convertible until 12/31/49.

¹³  The table below details the Portfolio's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	22,131,690	$	98,175,537	$	105,680,209	$	14,627,018	$	10,721

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized depreciation
JPMorgan Securities, Inc.	EUR	22,170,000	USD	31,070,546	08/26/11	$	(769,032	)
JPMorgan Securities, Inc.	GBP	8,540,000	USD	13,577,644	08/26/11		(436,912	)
						$	(1,205,944	)

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Corporate bonds	$	—	$	244,571,441		$	13,347	$	244,584,788
Loan assignments		—		9,936,786			—		9,936,786
Asset-backed securities		—		7,653,061			—		7,653,061
Collateralized mortgage obligations		—		1,163,282			—		1,163,282
Common stocks		2,466,988		—			772,300		3,239,288
Preferred stock		—		1,230,078			—		1,230,078
Warrants		1,569,180		—			—		1,569,180
Repurchase agreement		—		4,226,000			—		4,226,000
Investment of cash collateral from securities loaned		—		14,627,018			—		14,627,018
Forward foreign currency contracts, net		—		(1,205,944	)		—		(1,205,944	)
Total	$	4,036,168	$	282,201,722		$	785,647	$	287,023,537

97

PACE Select Advisors Trust

PACE High Yield Investments

Portfolio of investments—July 31, 2011

The following is a rollforward of the Portfolio's investments that were valued using unobservable inputs (Level 3) for the year ended July 31, 2011:

	Corporate bond			Asset-backed security			Common stock		Total
Beginning balance	$	14,375		$	1,119,456		$	540,610	$	1,674,441
Purchases		—			—			—		—
Sales		—			(1,195,200	)		—		(1,195,200	)
Accrued discounts/(premiums)		(84	)		16,161			—		16,077
Total realized gain/(loss)		—			38,997			—		38,997
Net change in unrealized appreciation/depreciation		(944	)		20,586			231,690		251,332
Transfers in to Level 3		—			—			—		—
Transfers out of Level 3		—			—			—		—
Ending balance	$	13,347		$	—		$	772,300	$	785,647

The change in unrealized appreciation/depreciation relating to the Level 3 investments held at July 31, 2011 was $230,746.

Issuer breakdown by country or territory of origin (unaudited)

	Percentage of total investments
United States		82.3	%
United Kingdom		4.1
Germany		2.1
Canada		2.1
Netherlands		1.8
Luxembourg		1.5
Australia		1.0
Sweden		0.9
France		0.6
Norway		0.6
Jersey		0.6
Brazil		0.5
Mexico		0.5
Liberia		0.5
Cayman Islands		0.4
Finland		0.3
Belgium		0.1
Marshall Islands		0.1
Total		100.0	%

See accompanying notes to financial statements.
98

PACE Select Advisors Trust

PACE Large Co Value Equity Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 17.07%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 14.75%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Russell 1000 Value Index (the "benchmark") returned 16.76%, and the Lipper Large-Cap Value Funds category posted a median return of 15.53%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 103. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisors' comments¹

ICAP

Our portion of the Portfolio outperformed the benchmark during the reporting period. Overall, our portion of the Portfolio is built on a stock-by-stock basis and reflects the individual names that we believe have a combination of attractive valuations and catalysts likely to trigger appreciation over a 12- to 18-month timeframe.

In a period with a strongly rising market, our performance was primarily driven by several key factors. Stock selection in the consumer services sector added to performance, led by cable network operator Viacom, Inc., which benefited from improved ratings and rising affiliate fees. Stock selection in consumer durables added value as Johnson Controls, Inc., benefited from a recovery in auto sales. Underweighting the lagging financials sector also added to relative performance.

Stock selection in the retail sector detracted from performance, primarily due to office supply retailer Staples, Inc. It underperformed as sales and profit margins in its international business disappointed investors. Stock selection in basic industries hurt performance, in large part due to Newmont Mining Corp., which underperformed given higher costs and reduced profit expectations. Stock selection in consumer staples negatively impacted performance as beverage and snack maker PepsiCo, Inc. underperformed as increased

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

PACE Select Advisors Trust – PACE Large Co Value Equity Investments

Investment Sub-Advisors:

Institutional Capital LLC ("ICAP"), Westwood Management Corp. ("Westwood") and Pzena Investment Management, LLC ("Pzena")

Portfolio Managers:

ICAP: Jerrold Senser and Thomas Wenzel;

Westwood: Susan M. Byrne;

Pzena: Antonio DeSpirito, III, Richard S. Pzena and John P. Goetz

Objective:

Capital appreciation and dividend income

Investment process:

ICAP uses its proprietary valuation model to identify large capitalization companies that it believes offer the best relative values and seeks to avoid companies that exhibit excessive deterioration in earnings trends. ICAP looks for companies where there is a catalyst for positive change with potential to produce stock appreciation of 15% or more relative to the market over a 12- to 18-month period.

ICAP also uses internally and externally generated research to evaluate the financial condition and business prospects of every company it considers. ICAP monitors each stock purchased and sells the stock when its target price is achieved, the catalyst becomes inoperative, or ICAP identifies another stock with greater opportunity for appreciation.

Westwood utilizes a value style of investing in which it chooses common stocks it believes are currently undervalued.

Other key metrics it considers are return on equity, debt/equity ratio and, in the case of

(continued on next page)

99

PACE Select Advisors Trust

PACE Large Co Value Equity Investments

Sub-Advisors' comments – continued

commodity prices hurt the company's profit margins. PepsiCo remains in our portion of the Portfolio, whereas we sold Staples and Newmont Mining.

Other specific stocks that added to performance included diversified pharmaceutical company Sanofi, ADR. Its shares moved higher as its results have improved due to ongoing restructuring at the company. Marathon Oil Corp. also added to performance as its plans for spinning off its refining business were viewed favorably by investors.

Cisco Systems, Inc. underperformed and detracted from performance as its sales and growth outlook disappointed investors. We sold the position during the fourth quarter of 2010. The Goldman Sachs Group, Inc. lagged as trading revenues and its outlook weakened over the period. The stock remains in our portion of the Portfolio, as we believe it has the ability to gain share and improve results over time.

Westwood

Our portion of the Portfolio outperformed the benchmark during the reporting period, aided by security selection in the financial services, energy, consumer staples and producer durables sectors. Additionally, relative performance was aided by underweights in financial services and consumer staples, coupled with overweights in energy and consumer discretionary. In contrast, our performance was hindered by security selection in the health care, utilities and consumer discretionary sectors.

Companies in the asset management and insurance industries were strong performers during the period. Our holdings in this area benefited relative performance, as did not owning many companies in the underperforming large money center banks. In energy, a strong rally in commodity prices propelled the sector higher. Our holdings, such as EQT Corp. and Anadarko Petroleum Corp., demonstrated good production growth and, when coupled with rising energy prices and a sector overweight, pulled our sector performance higher. Our consumer staples holdings benefited from international sales growth in Philip Morris International, Inc., whereas the producer durables sector benefited from periodic optimism regarding the health of the economy. Union Pacific Corp. and Caterpillar, Inc. both performed well as investors were hopeful that they would see improving sales as the global economy expanded. Caterpillar has since been sold from our portion of the Portfolio, as its shares appreciated to our price target and discounted much of the company's favorable outlook.

Security selection in the utilities sector was the largest detractor from performance. Electric utility holdings American Electric Power Co., Inc. and Sempra Energy lagged as inclement weather impacted their performance. Security selection in health care detracted from performance as holdings such as Teva Pharmaceutical Industries Ltd., ADR and Abbott Laboratories were impacted by company-specific issues. Lastly, stock selection in the consumer discretionary sector was negatively impacted by our holding in General Motors Co. Its shares declined as investors worried, at various times, about rising crude oil prices, gasoline prices and the potential for slowing sales as the economy slowed down.

Investment process (concluded)

common equities, positive earnings surprises without a corresponding increase in Wall Street estimates.

Westwood has disciplines in place that serve as sell signals, such as a security reaching a pre-determined price target or a change to a company's fundamentals that negatively impacts the original investment thesis.

Pzena follows a disciplined investment process to implement its value philosophy, focusing exclusively on companies that are underperforming their historically demonstrated earnings power. Pzena applies intensive fundamental research to these companies in an effort to determine whether the problems that caused the earnings shortfall are temporary or permanent. The research process incorporates perspectives on valuation, earnings, management strategy, and downside protection.

100

PACE Select Advisors Trust

PACE Large Co Value Equity Investments

Sub-Advisors' comments – concluded

Pzena

Our portion of the Portfolio modestly outperformed the benchmark during the reporting period. Our performance was led predominantly by economically sensitive sectors—energy, consumer discretionary and technology—with additional strong performance coming from our health care holdings. Top performing holdings included JC Penney Co., Inc. (retail), Exxon Mobil Corp. (integrated energy) and TE Connectivity Ltd. (technology). JC Penney rallied given stronger same-store sales data and the disclosure that an activist investor had taken a meaningful stake in the company, identifying it as "undervalued and an attractive investment." Exxon Mobil performed well due to solid earnings, higher oil prices and an aggressive program of buying back its own shares. TE Connectivity, a specialist in connectors and other electronic devices, benefited from tight cost controls and recovering top line growth. Health care holdings that were important contributors to performance included Aetna, Inc. (managed care), Forest Laboratories, Inc. (pharmaceuticals) and Zimmer Holdings, Inc. (medical devices).

The largest detractor from performance was Hewlett-Packard Co. Despite investor concerns surrounding the potential impact of cloud computing and tablets on Hewlett-Packard, we see a company with leading industry positions, diversified revenue sources, a strong balance sheet and one of the cheapest valuations in the benchmark. As a result, it was the largest holding in our portion of the Portfolio as of July 31, 2011. Other detractors during the reporting period included Bank of America Corp. and Morgan Stanley in the financial services sector.

We continue to view the current environment as being good for the value investor. Without a lot of stress at the company level, valuations are attractive in our view, and balance sheets and cash flows are strong. We believe our portion of the Portfolio is trading at an attractive valuation compared to both our history and the valuation of the benchmark on a price-to-normalized earnings basis. The opportunity set and our holdings continue to be dominated by high quality businesses. Our largest exposures are in the financial, technology, energy and consumer discretionary sectors.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation and dividend income and who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.

101

PACE Select Advisors Trust

PACE Large Co Value Equity Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Large Co Value Equity Investments Class P shares versus the Russell 1000 Value Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that PACE Large Co Value Equity Investments is a professionally managed portfolio while the Index is not available for investment and is unmanaged. The comparison is shown for illustration purposes only.

102

PACE Select Advisors Trust

PACE Large Co Value Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		16.79	%		0.53	%		3.42	%
maximum sales charge	Class B2		15.78	%		(0.32	)%		2.91	%6
or PACE Select	Class C3		15.81	%		(0.26	)%		2.61	%
program fee	Class Y4		17.00	%		0.85	%		3.76	%
	Class P5		17.07	%		0.79	%		3.68	%
After deducting	Class A1		10.36	%		(0.60	)%		2.84	%
maximum sales charge	Class B2		10.78	%		(0.63	)%		2.91	%6
or PACE Select	Class C3		14.81	%		(0.26	)%		2.61	%
program fee	Class P5		14.75	%		(1.21	)%		1.63	%
Russell 1000 Value Index7			16.76	%		(0.01	)%		3.66	%
Lipper Large-Cap Value Funds median			15.53	%		0.22	%		2.80	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 21.84%; 5-year period, 0.36%; 10-year period, 3.17%; Class B—1-year period, 22.79%; 5-year period, 0.32%; 10-year period, 3.22%; Class C—1-year period, 26.73%; 5-year period, 0.69%; 10-year period, 2.93%; Class Y—1-year period, 29.08%; 5-year period, 1.83%; 10-year period, 4.09%; Class P—1-year period, 26.57%; 5-year period, (0.26)%; 10-year period, 1.95%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.20% and 1.20%; Class B—2.33% and 2.02%; Class C—2.02% and 2.02%; Class Y—0.89% and 0.89%; and Class P—0.95% and 0.95%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.27%; Class B—2.02%; Class C—2.02%; Class Y—1.02%; and Class P—1.02%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The Russell 1000 Value Index is designed to measure the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. The Russell 1000 Value Index is constructed to provide a comprehensive and unbiased barometer for the large-cap value segment. The Index is completely reconstituted  annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

103

PACE Select Advisors Trust

PACE Large Co Value Equity Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	1,199.8
Number of holdings		106
Portfolio composition1	07/31/11
Common stocks		91.9	%
ADRs		6.3
Cash equivalents and other assets less liabilities		1.8
Total		100.0	%
Top five sectors1	07/31/11
Financials		23.4	%
Health care		15.2
Information technology		12.1
Energy		11.6
Consumer discretionary		10.1
Total		72.4	%
Top ten equity holdings1	07/31/11
Microsoft Corp.		3.4	%
JPMorgan Chase & Co.		3.3
Pfizer, Inc.		3.2
Johnson & Johnson		2.8
Exxon Mobil Corp.		2.3
MetLife, Inc.		2.1
Wells Fargo & Co.		2.0
The Goldman Sachs Group, Inc.		2.0
ACE Ltd.		1.8
PepsiCo, Inc.		1.8
Total		24.7	%

For a listing of defined portfolio acronyms that are used throughout the Portfolio statistics, please refer to page 227.

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

104

PACE Select Advisors Trust

PACE Large Co Value Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—98.20%
Aerospace & defense—6.37%
General Dynamics Corp.		57,200	$	3,897,608
Honeywell International, Inc.		396,400		21,048,840
Huntington Ingalls Industries, Inc.1,*		41,279		1,382,021
ITT Corp.		160,100		8,539,734
L-3 Communications Holdings, Inc.		143,729		11,371,838
Northrop Grumman Corp.		304,550		18,428,321
Raytheon Co.		83,600		3,739,428
The Boeing Co.		113,500		7,998,345
				76,406,135
Auto components—1.08%
Johnson Controls, Inc.		351,800		12,999,010
Automobiles—0.71%
General Motors Co.*		309,100		8,555,888
Beverages—4.18%
Molson Coors Brewing Co., Class B		262,050		11,805,352
PepsiCo, Inc.		332,950		21,322,118
The Coca-Cola Co.		250,100		17,009,301
				50,136,771
Building products—0.52%
Masco Corp.		587,075		6,193,641
Capital markets—5.25%
Ameriprise Financial, Inc.		70,500		3,814,050
BlackRock, Inc.		46,050		8,218,083
Franklin Resources, Inc.		76,600		9,725,136
Morgan Stanley		217,750		4,844,938
State Street Corp.		181,425		7,523,695
The Charles Schwab Corp.		351,700		5,250,881
The Goldman Sachs Group, Inc.		175,250		23,653,492
				63,030,275
Chemicals—3.49%
E.I. du Pont de Nemours and Co.		173,100		8,900,802
Monsanto Co.		109,950		8,079,126
PPG Industries, Inc.		96,975		8,165,295
The Dow Chemical Co.		265,300		9,251,011
The Sherwin-Williams Co.		96,350		7,435,329
				41,831,563
Commercial banks—3.80%
BB&T Corp.		340,850		8,753,028
CIT Group, Inc.*		113,800		4,522,412
PNC Financial Services Group, Inc.		145,325		7,889,694
Wells Fargo & Co.		875,550		24,462,867
				45,628,001
Computers & peripherals—3.11%
Dell, Inc.*		1,128,325		18,323,998
Hewlett-Packard Co.		541,600		19,042,656
				37,366,654
Diversified consumer services—0.69%
Apollo Group, Inc., Class A*		163,650		8,318,330

	Number of shares		Value
Common stocks—(Continued)
Diversified financial services—5.32%
Bank of America Corp.		1,486,700	$	14,435,857
Citigroup, Inc.		246,856		9,464,459
JPMorgan Chase & Co.		985,793		39,875,327
				63,775,643
Diversified telecommunication services—1.07%
AT&T, Inc.		438,900		12,842,214
Electric utilities—2.34%
American Electric Power Co., Inc.		239,700		8,835,342
Edison International		195,150		7,429,361
Entergy Corp.		176,525		11,791,870
				28,056,573
Electronic equipment, instruments & components—1.64%
Corning, Inc.		218,200		3,471,562
TE Connectivity Ltd.		471,350		16,228,581
				19,700,143
Food & staples retailing—1.88%
CVS Caremark Corp.		251,100		9,127,485
Sysco Corp.		143,500		4,389,665
Wal-Mart Stores, Inc.		172,500		9,092,475
				22,609,625
Food products—0.65%
Archer Daniels Midland Co.		256,050		7,778,799
Health care equipment & supplies—1.40%
Covidien PLC		321,700		16,339,143
Zimmer Holdings, Inc.*		8,400		504,168
				16,843,311
Health care providers & services—0.80%
Aetna, Inc.		42,253		1,753,077
Laboratory Corp. of America Holdings*		86,500		7,850,740
				9,603,817
Household durables—0.63%
Fortune Brands, Inc.		126,592		7,622,104
Insurance—9.05%
ACE Ltd.		325,128		21,777,073
Aflac, Inc.		195,500		9,004,730
American International Group, Inc.*		275,125		7,896,088
Axis Capital Holdings Ltd.		330,900		10,545,783
Fidelity National Financial, Inc., Class A		496,475		8,092,542
Hartford Financial Services Group, Inc.		271,325		6,354,432
MetLife, Inc.		610,950		25,177,249
The Allstate Corp.		559,425		15,507,261
The Travelers Cos., Inc.		75,600		4,167,828
				108,522,986
IT services—0.81%
Computer Sciences Corp.		148,325		5,232,906
International Business Machines Corp.		24,550		4,464,418
				9,697,324

105

PACE Select Advisors Trust

PACE Large Co Value Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Machinery—0.35%
Deere & Co.		53,300	$	4,184,583
Media—5.31%
CBS Corp., Class B		172,600		4,724,062
Comcast Corp., Class A		370,700		8,904,214
Omnicom Group, Inc.		226,083		10,607,814
The Walt Disney Co.		230,500		8,901,910
Time Warner, Inc.		531,400		18,684,024
Viacom, Inc., Class B		245,950		11,908,899
				63,730,923
Multi-utilities—1.50%
Dominion Resources, Inc.		199,700		9,675,465
Sempra Energy		164,100		8,318,229
				17,993,694
Multiline retail—0.55%
J.C. Penney Co., Inc. (Holding Co.)		215,450		6,627,242
Oil, gas & consumable fuels—11.61%
Anadarko Petroleum Corp.		122,900		10,146,624
Apache Corp.		73,402		9,081,295
BP PLC, ADR		328,286		14,917,316
Chevron Corp.		85,100		8,852,102
EQT Corp.		153,500		9,744,180
Exxon Mobil Corp.		353,112		28,174,807
Marathon Oil Corp.		287,950		8,917,812
Marathon Petroleum Corp.		152,175		6,663,743
Newfield Exploration Co.*		131,800		8,885,956
Occidental Petroleum Corp.		173,447		17,029,026
Royal Dutch Shell PLC, A Shares, ADR		158,236		11,639,840
Royal Dutch Shell PLC, B Shares, ADR		71,075		5,234,674
				139,287,375
Personal products—0.49%
Avon Products, Inc.		222,730		5,842,208
Pharmaceuticals—12.98%
Abbott Laboratories		382,275		19,618,353
Bristol-Myers Squibb Co.		173,800		4,981,108
Forest Laboratories, Inc.*		273,700		10,143,322
Hospira, Inc.*		71,350		3,647,412
Johnson & Johnson		512,025		33,174,100
Merck & Co., Inc.		596,175		20,347,453
Pfizer, Inc.		1,968,152		37,867,244
Sanofi, ADR		435,850		16,889,187
Teva Pharmaceutical Industries Ltd., ADR		194,200		9,057,488
				155,725,667
Road & rail—0.79%
Union Pacific Corp.		92,000		9,428,160
Semiconductors & semiconductor equipment—2.12%
Applied Materials, Inc.		552,750		6,809,880
Intel Corp.		393,200		8,780,156
Texas Instruments, Inc.		330,100		9,820,475
				25,410,511

	Number of shares		Value
Common stocks—(Concluded)
Software—4.37%
CA, Inc.		522,450	$	11,650,635
Microsoft Corp.		1,489,752		40,819,205
				52,469,840
Specialty retail—1.08%
Lowe's Cos., Inc.		534,200		11,528,036
Staples, Inc.		85,700		1,376,342
				12,904,378
Tobacco—0.79%
Philip Morris International, Inc.		132,400		9,422,908
Wireless telecommunication services—1.47%
Vodafone Group PLC, ADR		626,950		17,617,295
Total common stocks (cost—$1,078,618,679)				1,178,163,591
	Face amount
Repurchase agreement—2.02%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $120,476 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $17,316,109 US Treasury Bills, zero coupon due 08/04/11 and $6,829,434 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17, (value—$24,699,561); proceeds: $24,215,020 (cost—$24,215,000)	$	24,215,000		24,215,000
	Number of shares
Investment of cash collateral from securities loaned—0.01%
Money market fund—0.01%
UBS Private Money Market Fund LLC2(cost—$173,750)		173,750		173,750
Total investments (cost—$1,103,007,429)— 100.23%				1,202,552,341
Liabilities in excess of other assets—(0.23)%				(2,792,132	)
Net assets—100.00%			$	1,199,760,209

106

PACE Select Advisors Trust

PACE Large Co Value Equity Investments

Portfolio of investments—July 31, 2011

Aggregate cost for federal income tax purposes was $1,144,616,827; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	103,990,808
Gross unrealized depreciation		(46,055,294	)
Net unrealized appreciation	$	57,935,514

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at July 31, 2011.

²  The table below details the Portfolio's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	9,903,388	$	124,908,294	$	134,637,932	$	173,750	$	804

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	1,178,163,591	$	—	$	—	$	1,178,163,591
Repurchase agreement		—		24,215,000		—		24,215,000
Investment of cash collateral from securities loaned		—		173,750		—		173,750
Total	$	1,178,163,591	$	24,388,750	$	—	$	1,202,552,341

Issuer breakdown by country or territory of origin (unaudited)

	Percentage of total investments
United States		88.2	%
United Kingdom		4.1
Switzerland		3.2
France		1.4
Ireland		1.4
Bermuda		0.9
Israel		0.8
Total		100.0	%

See accompanying notes to financial statements.
107

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 24.92%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 22.45%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Russell 1000 Growth Index (the "benchmark") returned 24.76%, and the Lipper Large-Cap Growth Funds category posted a median return of 23.38%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 114. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisors' comments¹

Wellington Management

Our portion of the Portfolio outperformed the benchmark during the reporting period. Stock selection was the primary driver of our performance, whereas sector allocation, a residual of the bottom-up stock selection process, had a small negative impact on our performance.

Stock selection in the consumer staples and consumer discretionary sectors contributed the most to performance during the reporting period. The consumer staples sector benefited the most from one holding, Green Mountain Coffee Roasters, Inc. Its shares soared during the period after it announced several strategic partnerships for its single-cup brewing system, Keurig, which included Starbucks and Dunkin Donuts. Subsequent to the announcement, the company also beat market expectations, driving its share price higher. Within the consumer discretionary sector, our positions in online travel company Priceline.com, Inc. and consumer fashion accessory company Fossil contributed to relative performance. Priceline.com continued to benefit from growing Internet-based commerce and travel trends in Europe and across the globe. Fossil initiated a share repurchase program and continued to raise its outlook during the period.

Weak stock selection in the financials and health care sectors detracted from performance. Large detractors in financials

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

PACE Select Advisors Trust – PACE Large Co Growth Equity Investments

Investment Sub-Advisors:

Wellington Management Company, LLP ("Wellington Management"), Marsico Capital Management, LLC ("Marsico"), Delaware Management Company ("Delaware"), Roxbury Capital Management, LLC ("Roxbury") and SSgA Funds Management, Inc. ("SSgA") until November 29, 2010.

Portfolio Managers:

Wellington: Andrew Shilling;

Marsico: Thomas Marsico, A. Douglas Rao and Coralie Witter

Delaware: Jeffrey Van Harte, Christopher Bonavico, Daniel Prislin and Christopher Ericksen

Roxbury: Brian L. Massey and Silas A. Myers

SSgA: J. Lee Montag and Brian Shannahan

Objective:

Capital appreciation

Investment process:

Wellington applies in-depth fundamental research in its effort to identify corporate change early, differentiate sustainable growth opportunities from short-lived events, identify superior business models, and develop strict valuation parameters for the companies it evaluates. Wellington's strategy is focused on investing in companies that appear well-positioned to benefit from long-lasting trends and that have structural advantages to maintaining their position.

Marsico uses an approach that combines top-down macro-economic analysis with bottom-up stock selection. It considers macro-economic factors such as interest rates, inflation, demographics, the regulatory environment and the global

(continued on next page)

108

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Sub-Advisors' comments – continued

included Wells Fargo & Co. and Banco Santander Brazil SA, ADS. Wells Fargo declined as a result of issues in its mortgage business due to the struggling US housing market. Uncertainty surrounding the potential impact of regulatory changes to the financial industry also placed pressure on the company. We eliminated our position based on those concerns. Shares of Banco Santander fell as investors feared that a rising interest rate environment in Brazil may squeeze bank margins. We eliminated our position due to those concerns. Within health care, our positions in Edwards Life Sciences Corp. and Teva Pharmaceutical Industries Ltd., ADR detracted from results. Shares of Edwards Life Sciences came under pressure toward the end of the period when it issued third quarter 2011 guidance that was lower than analysts' expectations. Teva Pharmaceuticals saw its shares fall during the period as a result of missing expectations in the fourth quarter of 2010 and the first quarter of 2011. We eliminated our position in Teva Pharmaceuticals during the period due to the lackluster outlook for its existing products line-up and the potential threat of new competing products down the road.

From a sector perspective, an underweight to the strong performing energy sector, and an overweight to financials were drags on relative performance. This was partially offset by an overweight to consumer discretionary and an underweight to consumer staples.

Marsico

Our portion of the Portfolio performed largely in line with the benchmark during the reporting period. Stock selection and an overweight to the strong performing consumer discretionary sector contributed to our relative results during the reporting period. Positions in Internet travel services company Priceline.com, Inc., Internet retailer Amazon.com, Inc. and hotel and casino operator Wynn Resorts Ltd. were strong individual contributors. Select holdings and an underweight to the information technology sector also added to our returns in the period, as positions in Chinese Internet search company Baidu, Inc., ADR and Apple, Inc. were top individual contributors. Elsewhere, stock selection in the industrials sector, including Goodrich Corp., Precision Castparts Corp. and Union Pacific Corp. proved advantageous to our performance during the reporting period.

Stock selection in the financials sector hurt our performance. An overweight to the sector early in the period further detracted from results relative to the benchmark. During the

Investment process (continued)

competitive environment. It then seeks to identify companies with earnings growth potential that may not be recognized by the market at large. Marsico's stock selection process may focus on factors such as market expertise or dominance, franchise durability and pricing power, solid company fundamentals, as well as strong management and reasonable valuations.

Delaware invests primarily in common stocks of large capitalization growth-oriented companies that Delaware believes have long-term capital appreciation potential and are expected to grow faster than the US economy. Using a bottom-up approach, Delaware seeks to select securities of companies that it believes have attractive large end-market potential, dominant business models and strong free cash flow generation that are attractively priced compared to the intrinsic value of the securities. Delaware also considers a company's operational efficiencies, management's plans for capital allocation and the company's shareholder orientation.

Roxbury employs a bottom-up approach to stock selection, seeking high quality growth companies whose stocks are trading at discounts to fair value. Roxbury looks for companies with sustainable competitive advantages and opportunities to grow and reinvest capital at higher rates than their cost of capital. Roxbury also seeks to invest in companies with management teams with a proven ability to allocate capital in ways that maximize shareholder value. Roxbury's investment approach seeks to balance both the protection of capital as well as the appreciation potential of a stock.

SSgA (until November 29, 2010) uses several quantitative measures based on valuation, sentiment and quality to identify

(continued on next page)

109

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Sub-Advisors' comments – continued

period, we reduced our exposure to the sector, trimming or selling outright various positions (including Citigroup and The Goldman Sachs Group, Inc.), but not before absorbing price declines in each of those holdings. Our reduced financials allocation represented a change in our outlook for a number of the largest financial services institutions. From our perspective, the regulatory environment for this group has become considerably more complex. Ultimately, we believe there could be a number of new or additional regulatory restrictions that may impact future profitability for some companies. A specific holding in the health care sector, Intuitive Surgical, emerged as the largest individual detractor in the period. It was subsequently sold to make room for ideas in which we have more conviction. From a sector perspective, having an underweight to energy, the strongest-performing sector in the benchmark, detracted from relative results.

As of July 31, 2011, our sector allocations emphasized information technology, consumer discretionary and industrials and we had no exposure to utilities and telecommunication services. As discussed, we significantly reduced our exposure to financials as we became more concerned about the regulatory overhang facing the industry.

Delaware

Our portion of the Portfolio outperformed the benchmark during the reporting period. Stock selection, particularly in the technology, consumer discretionary and health care sectors, drove our positive results.

In terms of individual holdings, top contributors to performance included Priceline.com, Inc., Polycom, Inc., QUALCOMM, Inc. and MasterCard, Inc. Priceline.com continued to exceed expectations and increase revenues, which we believe signifies that its core North American business is performing well. It also appears that Priceline.com's growing European hotel booking business was largely unaffected by sovereign debt crisis concerns during the period. Polycom more than doubled its second-quarter 2011 earnings due to improving sales and margins. A key focus for the company has been videoconferencing, which is experiencing strong demand in the developed and emerging market economies. Qualcomm's solid earnings momentum was driven by increased demand for smartphones and tablet devices. MasterCard's performance reversal during the reporting period appeared to result from the Federal Reserve Board's release of their final recommendations for debit card fee rates and network exclusivity rules. The final recommendations turned out to be more favorable than the original recommendations made in December 2010.

Individual holdings that detracted from performance included Staples, Inc. and EOG Resources, Inc. Staples released another modest earnings report during the second quarter of 2011, causing their stock price to weaken. This apparently increased investor concerns that the company's small- and medium-sized business customer base was struggling with an economy that had not fully recovered. We continue to hold the stock because we believe in the company's strategic plans to drive corporate profitability higher despite current economic conditions. EOG Resources' stock price likely suffered due to the company resetting its growth expectations for the large Eagle Ford

Investment process (concluded)

investment opportunities within a large cap growth universe and combines factors to produce an overall rank. Using comprehensive research, it seeks to determine the optimal weighting of these perspectives to arrive at strategies that vary by industry. SSgA ranks all companies within the investable universe from top to bottom based on their relative attractiveness. SSgA then constructs its portion of the Portfolio by selecting the highest-ranked stocks from the universe, and manages deviations from the benchmark to maximize the risk/reward trade-off. The aim is to have a resulting Portfolio with characteristics similar to the benchmark. SSgA generally sells stocks that no longer meet its selection criteria or that it believes otherwise may adversely affect performance relative to the benchmark.

110

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Sub-Advisors' comments – continued

Shale project during the first half of the period, and because of oil price volatility during the second part of the period. Although the stock was affected by fluctuations in the price of oil and natural gas, we do not believe the company's long-term intrinsic business value is dependent solely on commodity prices. We continue to hold the position because we believe EOG Resources' management team has an unusual capital allocation discipline that increases the company's potential to perform and add value through a variety of commodity price and economic environments.

Roxbury

Our portion of the Portfolio underperformed the benchmark during the reporting period. Lower quality stocks with higher price-to-earnings ratios (P/Es) tended to outperform during the reporting period, whereas our style of investing emphasizes higher quality stocks with lower relative P/Es, which lagged the benchmark. The catalyst for the rally in higher P/E equities was increased risk appetite (the "risk-on" trade) that was given the "green light" from the Federal Reserve Board's quantitative easing policies. In general, there were no one or two stocks that were detrimental to our overall performance; rather it was broad-based and across almost every sector. We feel this is further evidence that our underperformance was likely a "style" issue, as opposed to poor execution of our investment process.

Equity selection and sector weightings in the information technology, financials and consumer discretionary sectors detracted the most from performance during the period. Cisco Systems and Hewlett-Packard Co. were the largest detractors in the information technology sector, and in our portion of the Portfolio. We sold Cisco due to persistent market share losses in its core switching and routing business units, which was a violation of our original investment thesis. Hewlett-Packard was recently sold from our portion of the Portfolio, and the proceeds were used to purchase shares of NetApp, Inc. Within the consumer discretionary sector, The Walt Disney Co. and News Corp. declined due to macro-economic concerns. Additionally, with respect to Disney, the spike in gas prices and weak economic data instilled fear that theme parks would experience declines. Moreover, the News of the World scandal in the UK caused a firestorm around News Corp.'s stock. We sold the stock from our portion of the Portfolio when it became apparent that we could no longer analyze the risk and potential downside outcomes from the News Corp. scandal.

Stock selection in the health care and industrials sectors were positive contributors to performance. Within health care, our holdings in Thermo Fisher Scientific, Inc., Johnson & Johnson and Baxter International, Inc. were rewarded. In the industrials sector, Stericycle and General Dynamics contributed positively to results. We sold Stericycle during the reporting period as we felt its stock price had reached its fair value. General Dynamics was eliminated from our portion of the Portfolio, given our concern over cuts to the national defense budget.

SSgA

During the period from August 1, 2010 through November 29, 2010, when we managed a portion of the Portfolio, we underperformed the benchmark. Our investment process incorporates model-driven quantitative measures such as valuation, quality and investor sentiment, which are designed to generate buy/hold/sell "signals." Overall, our signals were mixed over the reporting period. The dynamic change between risk-aversion and risk-seeking continued during this period. European sovereign debt worries triggered risk-aversion, and a stark upturn in US initial jobless claims in August put equity investors on the defensive. When new positive economic reports surfaced in September, macro fears waned and our model performance picked up again. Continuing their recent trend, cash flow and quality signals showed solid strength during most of the time period, with a temporary setback in August. Our growth signal, which had been weak all year, was the strongest signal through most of this

111

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Sub-Advisors' comments – concluded

reporting period. As expected, due to the choppy market, our sentiment signal was the weakest, while earnings-based signals continue to struggle (as they did during most of 2010).

Overall, stock selection was weak and led to underperformance in nine out of 10 sectors within the benchmark. Our information technology and consumer discretionary holdings were the poorest-performing sectors on a relative basis. Within information technology, overweights to SanDisk Corp., a flash memory maker for consumer electronics products, and Intel Corp. were the largest detractors. Consumer discretionary stock selection was hurt by our underweight position in strong-performing Amazon.com, Inc. and an overweight to poor performer Whirlpool Corp., a home appliance maker. Partially offsetting these losses was strong stock selection in industrials, led by an overweight position in auto parts maker Timken Co., as its shares rallied sharply.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. Also, to the extent the Portfolio invests a large portion of its assets in a particular sector, the Portfolio may experience greater volatility and risk of loss due to unfavorable developments in that sector. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.

112

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Large Co Growth Equity Investments Class P shares versus the Russell 1000 Growth Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that PACE Large Co Growth Equity Investments is a professionally managed portfolio while the Index is not available for investment and is unmanaged. The comparison is shown for illustration purposes only.

113

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		24.55	%		4.09	%		1.33	%
maximum sales charge	Class B2		23.53	%		3.22	%		0.82	%6
or PACE Select	Class C3		23.47	%		3.23	%		0.50	%
program fee	Class Y4		24.83	%		4.45	%		1.70	%
	Class P5		24.92	%		4.38	%		1.61	%
After deducting	Class A1		17.70	%		2.92	%		0.76	%
maximum sales charge	Class B2		18.53	%		2.87	%		0.82	%6
or PACE Select	Class C3		22.47	%		3.23	%		0.50	%
program fee	Class P5		22.45	%		2.31	%		(0.40	)%
Russell 1000 Growth Index7			24.76	%		5.52	%		2.40	%
Lipper Large-Cap Growth Funds median			23.38	%		4.36	%		2.07	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 27.83%; 5-year period, 2.73%; 10-year period, 0.55%; Class B—1-year period, 29.11%; 5-year period, 2.70%; 10-year period, 0.60%; Class C—1-year period, 33.08%; 5-year period, 3.06%; 10-year period, 0.30%; Class Y—1-year period, 35.58%; 5-year period, 4.29%; 10-year period, 1.49%; Class P—1-year period, 32.95%; 5-year period, 2.14%; 10-year period, (0.60)%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.26% and 1.26%; Class B—2.37% and 2.05%; Class C—2.13% and 2.05%; Class Y—0.94% and 0.94%; and Class P—0.99% and 0.99%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.30%; Class B—2.05%; Class C—2.05%; Class Y—1.05%; and Class P—1.05%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The Russell 1000 Growth Index is designed to measure the performance of the large-cap growth segment of the US equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment. The Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend  dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

114

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	1,150.5
Number of holdings		121
Portfolio composition1	07/31/11
Common stocks		93.7	%
ADRs		4.1
Cash equivalents and other assets less liabilities		2.2
Total		100.0	%
Top five sectors1	07/31/11
Information technology		34.9	%
Consumer discretionary		19.1
Industrials		12.0
Energy		8.1
Health care		8.0
Total		82.1	%
Top ten equity holdings1	07/31/11
Apple, Inc.		6.3	%
Oracle Corp.		3.4
QUALCOMM, Inc.		3.0
Priceline.com, Inc.		2.8
Visa, Inc.		2.0
Google, Inc.		1.9
EOG Resources, Inc.		1.9
Goodrich Corp.		1.8
Allergan, Inc.		1.7
Green Mountain Coffee Roasters, Inc.		1.6
Total		26.4	%

For a listing of defined portfolio acronyms that are used throughout the Portfolio statistics, please refer to page 227.

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

115

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—97.81%
Aerospace & defense—3.42%
Goodrich Corp.		217,997	$	20,740,235
Honeywell International, Inc.		200,197		10,630,461
Precision Castparts Corp.		49,756		8,029,623
				39,400,319
Air freight & logistics—1.64%
C.H. Robinson Worldwide, Inc.		22,910		1,656,622
Expeditors International of Washington, Inc.		140,900		6,723,748
FedEx Corp.		121,125		10,523,340
				18,903,710
Auto components—0.64%
Johnson Controls, Inc.		200,360		7,403,302
Automobiles—0.52%
Harley-Davidson, Inc.		136,535		5,924,254
Beverages—1.00%
PepsiCo, Inc.		179,318		11,483,525
Biotechnology—0.52%
Biogen Idec, Inc.*		59,089		6,019,396
Capital markets—1.59%
Ameriprise Financial, Inc.		103,065		5,575,817
BlackRock, Inc.		37,575		6,705,634
The Bank of New York Mellon Corp.		241,600		6,066,576
				18,348,027
Chemicals—3.10%
Monsanto Co.		201,905		14,835,980
Syngenta AG, ADR		116,000		7,378,760
The Dow Chemical Co.		262,113		9,139,880
The Mosaic Co.		61,135		4,323,467
				35,678,087
Commercial banks—0.12%
PNC Financial Services Group, Inc.		25,610		1,390,367
Communications equipment—4.55%
Acme Packet, Inc.*		56,380		3,321,910
F5 Networks, Inc.*		35,985		3,363,878
Juniper Networks, Inc.*		261,545		6,117,537
Polycom, Inc.*		183,200		4,951,896
QUALCOMM, Inc.		632,475		34,646,980
				52,402,201
Computers & peripherals—8.43%
Apple, Inc.*		184,556		72,065,427
EMC Corp.*		415,995		10,849,150
NetApp, Inc.*		297,153		14,120,710
				97,035,287
Consumer finance—0.85%
American Express Co.		195,560		9,785,822
Diversified consumer services—0.91%
Apollo Group, Inc., Class A*		206,400		10,491,312

	Number of shares		Value
Common stocks—(Continued)
Diversified financial services—1.56%
CME Group, Inc.		27,500	$	7,952,725
IntercontinentalExchange, Inc.*		81,300		10,024,290
				17,977,015
Electrical equipment—0.36%
AMETEK, Inc.		96,935		4,119,738
Electronic equipment, instruments & components—0.13%
Dolby Laboratories, Inc., Class A*		36,405		1,542,116
Energy equipment & services—2.67%
Ensco PLC, ADR		87,465		4,657,511
Halliburton Co.		209,103		11,444,207
National-Oilwell Varco, Inc.		78,065		6,289,697
Schlumberger Ltd.		92,020		8,315,848
				30,707,263
Food & staples retailing—0.72%
Walgreen Co.		211,800		8,268,672
Food products—2.18%
Green Mountain Coffee Roasters, Inc.*		173,432		18,028,256
Mead Johnson Nutrition Co.		98,069		6,999,185
				25,027,441
Health care equipment & supplies—0.99%
Covidien PLC		73,150		3,715,289
Edwards Lifesciences Corp.*		56,690		4,044,831
Hologic, Inc.*		194,960		3,620,407
				11,380,527
Health care providers & services—0.57%
Medco Health Solutions, Inc.*		103,600		6,514,368
Hotels, restaurants & leisure—3.77%
Chipotle Mexican Grill, Inc.*		9,036		2,932,905
Ctrip.com International Ltd., ADR*		154,500		7,122,450
Las Vegas Sands Corp.*		90,285		4,259,646
MGM Resorts International1,*		335,260		5,065,779
Starbucks Corp.		309,892		12,423,570
Wynn Resorts Ltd.		75,381		11,584,552
				43,388,902
Household durables—0.09%
Harman International Industries, Inc.		25,254		1,050,566
Industrial conglomerates—0.57%
Danaher Corp.		132,382		6,501,280
Insurance—0.96%
Berkshire Hathaway, Inc., Class B*		148,315		11,000,524
Internet & catalog retail—4.13%
Amazon.com, Inc.*		58,135		12,936,200
Netflix, Inc.*		9,160		2,436,469
Priceline.com, Inc.*		59,828		32,166,524
				47,539,193
Internet software & services—5.35%
Baidu, Inc., ADR*		86,508		13,587,812
eBay, Inc.*		435,630		14,266,882

116

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Internet software & services—(Concluded)
Google, Inc., Class A*		36,925	$	22,291,253
VeriSign, Inc.		364,210		11,366,994
				61,512,941
IT services—5.46%
Accenture PLC, Class A		164,897		9,752,009
Alliance Data Systems Corp.1,*		63,480		6,242,623
Cognizant Technology Solutions Corp., Class A*		58,060		4,056,652
MasterCard, Inc., Class A		43,000		13,039,750
Teradata Corp.*		122,900		6,754,584
Visa, Inc., Class A		268,074		22,931,050
				62,776,668
Life sciences tools & services—2.04%
Agilent Technologies, Inc.*		259,652		10,946,928
Thermo Fisher Scientific, Inc.*		207,640		12,477,088
				23,424,016
Machinery—4.79%
Caterpillar, Inc.		46,845		4,627,818
Cummins, Inc.		145,046		15,212,424
Eaton Corp.		237,330		11,379,974
Illinois Tool Works, Inc.		71,505		3,560,949
Joy Global, Inc.		164,831		15,480,928
PACCAR, Inc.		112,340		4,809,275
				55,071,368
Media—3.62%
British Sky Broadcasting Group PLC, ADR		55,551		2,589,788
News Corp., Class A		402,550		6,448,851
Sirius XM Radio, Inc.1,*		1,521,290		3,209,922
The Walt Disney Co.		409,989		15,833,775
Time Warner, Inc.		196,400		6,905,424
Viacom, Inc., Class B		138,441		6,703,313
				41,691,073
Metals & mining—1.63%
Freeport-McMoRan Copper & Gold, Inc.		232,638		12,320,509
Rio Tinto PLC, ADR1		50,800		3,605,784
Walter Energy, Inc.		22,920		2,809,304
				18,735,597
Multiline retail—0.61%
Target Corp.		137,341		7,071,688
Oil, gas & consumable fuels—5.42%
Anadarko Petroleum Corp.		128,717		10,626,875
CONSOL Energy, Inc.		94,765		5,079,404
EOG Resources, Inc.		213,903		21,818,106
Exxon Mobil Corp.		153,260		12,228,615
Kinder Morgan Inc.1		124,482		3,514,127
Occidental Petroleum Corp.		92,648		9,096,181
				62,363,308

	Number of shares		Value
Common stocks—(Concluded)
Pharmaceuticals—3.92%
Allergan, Inc.		235,090	$	19,115,168
Johnson & Johnson		190,861		12,365,884
Novo Nordisk A/S, ADR		64,000		7,809,280
Perrigo Co.		63,800		5,761,778
				45,052,110
Road & rail—1.18%
J.B. Hunt Transport Services, Inc.		51,620		2,335,289
Union Pacific Corp.		109,138		11,184,462
				13,519,751
Semiconductors & semiconductor equipment—2.94%
Altera Corp.		346,115		14,149,181
Analog Devices, Inc.		161,155		5,543,732
Broadcom Corp., Class A		178,475		6,616,068
Skyworks Solutions, Inc.*		136,590		3,457,093
Texas Instruments, Inc.		137,340		4,085,865
				33,851,939
Software—8.06%
Adobe Systems, Inc.*		278,900		7,731,108
BMC Software, Inc.*		118,235		5,110,117
Citrix Systems, Inc.*		138,745		9,995,190
Intuit, Inc.*		186,700		8,718,890
Microsoft Corp.		494,385		13,546,149
Oracle Corp.		1,295,419		39,613,913
Rovi Corp.*		69,485		3,680,620
Salesforce.com, Inc.*		14,440		2,089,612
VMware, Inc., Class A*		22,205		2,228,050
				92,713,649
Specialty retail—2.28%
Abercrombie & Fitch Co., Class A		82,790		6,053,605
Lowe's Cos., Inc.		683,694		14,754,116
Staples, Inc.		336,100		5,397,766
				26,205,487
Textiles, apparel & luxury goods—2.48%
Coach, Inc.		100,070		6,460,519
Fossil, Inc.*		44,970		5,651,380
Lululemon Athletica, Inc.1,*		34,240		2,072,890
Nike, Inc., Class B		84,700		7,635,705
Polo Ralph Lauren Corp.		49,540		6,691,368
				28,511,862
Wireless telecommunication services—2.04%
American Tower Corp., Class A*		221,521		11,636,498
Crown Castle International Corp.*		273,700		11,878,580
				23,515,078
Total common stocks (cost—$907,917,702)				1,125,299,749

117

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Portfolio of investments—July 31, 2011

	Face amount		Value
Repurchase agreement—2.48%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $141,945 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $20,401,759 US Treasury Bills, zero coupon due 08/04/11 and $8,046,407 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$29,100,907); proceeds: $28,530,024 (cost—$28,530,000)	$	28,530,000	$	28,530,000

	Number of shares		Value
Investment of cash collateral from securities loaned—1.55%
Money market fund—1.55%
UBS Private Money Market Fund LLC2(cost—$17,797,200)		17,797,200	$	17,797,200
Total investments (cost—$954,244,902)— 101.84%				1,171,626,949
Liabilities in excess of other assets—(1.84)%				(21,123,714	)
Net assets—100.00%			$	1,150,503,235

Aggregate cost for federal income tax purposes was $968,137,840; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	218,487,963
Gross unrealized depreciation		(14,998,854	)
Net unrealized appreciation	$	203,489,109

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at July 31, 2011.

²  The table below details the Portfolio's transaction activity in an affiliated issuer for the year ended July 31, 2011. The Investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	8,858,229	$	291,359,338	$	282,420,367	$	17,797,200	$	3,962

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	1,125,299,749	$	—	$	—	$	1,125,299,749
Repurchase agreement		—		28,530,000		—		28,530,000
Investment of cash collateral from securities loaned		—		17,797,200		—		17,797,200
Total	$	1,125,299,749	$	46,327,200	$	—	$	1,171,626,949

118

PACE Select Advisors Trust

PACE Large Co Growth Equity Investments

Portfolio of investments—July 31, 2011

Issuer breakdown by country or territory of origin (unaudited)

	Percentage of total investments
United States		94.2	%
Cayman Islands		1.8
Ireland		1.1
United Kingdom		0.9
Curacao		0.7
Denmark		0.7
Switzerland		0.6
Total		100.0	%

See accompanying notes to financial statements.
119

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 19.66%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 17.29%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Russell 2500 Value Index (the "benchmark") returned 20.64% and the Lipper Small-Cap Core Funds category posted a median return of 23.99%. (Please note that despite the underperformance of one of the Fund's Sub-Advisors, the Fund as a whole outperformed the benchmark on a gross of fees basis. However, due to fees that are embedded in the Fund that are not embedded in the Index, the Fund underperformed the benchmark on a net of fees basis, as reported here. Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 124. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisors' comments¹

MetWest Capital

Our portion of the Portfolio significantly outperformed the benchmark during the reporting period. Stock selection was strongest in the information technology and consumer staples sectors. An underweight in financials also added value during the period, as that sector lagged the benchmark. It's important to note that all sector over- and underweights relative to the benchmark result from bottom-up stock selection rather than tactical allocation decisions.

Within the information technology sector, Entegris, Inc., a supplier of critical products used in the manufacture of semiconductors, was the top contributor to performance. Due to substantial investments in product development, the company has been able to regain some market share. Additionally, management has used its strong free cash flow generation to pay down debt, strengthening its balance sheet. Despite the selloff in the semiconductor equipment industry, investors finally appear to be recognizing that Entegris is executing well. In consumer staples, Ralcorp Holdings, Inc. added the most value. Shares of Ralcorp rallied as ConAgra

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

PACE Select Advisors Trust – PACE Small/Medium Co Value Equity Investments

Investment Sub-Advisors:

Metropolitan West Capital Management, LLC ("MetWest Capital"), Buckhead Capital Management, LLC ("Buckhead") and Systematic Financial Management, L.P. ("Systematic")

Portfolio Managers:

MetWest Capital: Samir Sikka;

Buckhead: Matthew D. Reams and David S. Griffin;

Systematic: Ronald M. Mushock and D. Kevin McCreesh

Objective:

Capital appreciation

Investment process:

MetWest Capital utilizes a bottom-up, fundamental, research-driven style that it believes is well suited to the small cap market segment. MetWest Capital seeks to identify high-quality companies selling below intrinsic value with clear catalysts to realize full value within its investment time horizon and constructs a portfolio of its highest conviction ideas.

Buckhead utilizes a fundamental, bottom-up, research-driven investment style and a disciplined investment process that is designed to identify companies that it believes are attractively valued, have strong underlying fundamental characteristics and are likely to have one or more catalysts that are expected to drive their share prices higher. Buckhead seeks to build concentrated portfolios with the largest positions in those companies that it believes have the highest likelihood of outperforming the market and/or the Portfolio's benchmark.

(continued on next page)

120

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Sub-Advisors' comments – continued

Foods made a hostile bid to acquire the food products company. ConAgra is eager to acquire Ralcorp's private label business as well as its large portfolio of brands, which includes Anthony's pasta and Krusteaz pancake and waffle mixes. However, Ralcorp's management team has, in our view, wisely rejected ConAgra's acquisition overtures thus far, as they considered the price offered as being far too low.

Underweights in the strong performing energy and materials sectors detracted from our relative return. More specifically, our lack of exposure to oil, gas and consumable fuel within the energy sector and chemicals in the materials sector subtracted from performance. Given the commodity-driven, cyclical nature of these industries, it is difficult to find high-quality companies with sustainable competitive advantages; thus, we typically avoid investments in these areas. However, since both industries performed well during the fiscal year, our lack of exposure hindered relative performance.

The investment team remains committed to its long-term focus on high-quality investments. We will maintain our proactive and individual company focus in our efforts to add value for shareholders over a complete market cycle.

Buckhead

Our portion of the Portfolio underperformed the benchmark during the reporting period. Investments in financial service companies, particularly bank stocks, were the most significant detractors from performance during the period. Shares of First Horizon National Corp., for example, lagged because of renewed concerns surrounding the bank's exposure to the mortgage market. Wilmington Trust and United Community Banks (both eliminated from our portion of the Portfolio during the period) performed poorly as loan losses continued to mount. Elsewhere, difficult lending conditions caused high-quality Bank of Hawaii Corp. to underperform. Among consumer stocks, Central European Distribution Corp. and Cooper Tire & Rubber Co. were weak and underperformed as operating results disappointed investors and management reduced earnings guidance. Central European Distribution was sold in early 2011 due to poor operating results and a reduction in near term profitability.

There were, however, areas of strength in our portion of the Portfolio during the reporting period. Positive contributions came from holdings in a variety of sectors. Tidewater, Inc. (energy), Kennametal, Inc. and Dycom Industries, Inc. (producer durables), and Coinstar, Inc. (consumer discretionary), for example, all posted strong earnings and spoke with conviction about their businesses' long-term prospects. In terms of sector allocations, we maintain overweight positions in the consumer discretionary, producer durable and technology sectors, and underweights in the utility, health care and financial services sectors. While most of the over/underweights were fairly neutral to performance, our relative results were held back by the lack of exposure to health care stocks.

Notwithstanding the subdued results experienced by stock market investors in recent months, segments of the stock market still trade at extended levels (although many of the structural imbalances restricting economic expansion remain in place). Our research continues to indicate that prices of small company stocks relative to earnings, sales and book value are at levels similar to those measured prior to the financial crisis, and double those

Investment process (concluded)

Systematic employs a two-pronged investment approach that utilizes both quantitative screening and fundamental research. Systematic's investment philosophy is predicated on its belief that stock prices reflect the market's estimates of earnings, and as revisions to those estimates are made by the market, stock prices will follow suit.

Systematic conducts a quantitative screening of all companies within the small/mid capitalization universe, and then uses fundamental research analysis to gauge investor expectations by focusing on key revenue and margin assumptions underlying earnings estimates.

121

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Sub-Advisors' comments – concluded

measured at the market bottom. In this environment, caution is advised. We continue to favor companies with strong balance sheets, dominant market positions and business models designed to generate substantial free cash flows.

Systematic

Our portion of the Portfolio outperformed the benchmark during the reporting period. Our results for the period can be attributed to the effectiveness of two key factors in our investment philosophy; earnings estimate revision and our valuation framework. The earnings estimate revision factor performed in-line with its historical pattern, as those stocks with the most positive earnings estimate revisions outperformed those stocks with the least positive (or most negative) revisions. Our proprietary multi-factor valuation model was also effective during the period.

From a performance attribution standpoint, strong stock selection was the primary reason for our outperformance. Our stock picking in the materials, consumer discretionary and financials sectors provided the largest boost to relative results. The largest individual contributor was Atmel Co., which makes semiconductor controllers found in a variety of electronic devices and industrial products. Its stock price moved sharply higher during the period, largely due to the company's success with its touch-screen controllers.

On the flip side, our stock picking in the health care, industrials and consumer staples sectors detracted from results. One stock that performed poorly during the reporting period was Motorola Mobility Holdings. We believe the stock's sharp price decline was due to increasing skepticism among investors about the competitiveness of its new Xoom tablet product. The untimely release of the iPad2 by Apple, coupled with Xoom's surprisingly high price tag, led to poor results. Amid a series of negative estimate revisions for the company, we made the decision to sell our position in the stock, in accordance with our earnings-focused discipline.

Our sector allocation effect, in aggregate, was also additive to relative results. Our underweight to the financials sector was the largest contributor. This was partially offset by our underweight positioning to the utilities sector, which detracted from relative results.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. In addition, small- and mid-cap companies are typically subject to a greater degree of change in earnings and business prospects than are larger, more established companies. Therefore, they are considered to have a higher level of volatility and risk.

122

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Small/Medium Co Value Equity Investments Class P shares versus the Russell 2500 Value Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that PACE Small/Medium Co Value Equity Investments is a professionally managed portfolio while the Index is not available for investment and is unmanaged. The comparison is shown for illustration purposes only.

123

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		19.40	%		3.51	%		5.75	%
maximum sales charge	Class B2		18.70	%		2.74	%		5.24	%6
or PACE Select	Class C3		18.55	%		2.73	%		4.95	%
program fee	Class Y4		19.74	%		3.86	%		6.09	%
	Class P5		19.66	%		3.69	%		5.96	%
After deducting	Class A1		12.84	%		2.35	%		5.15	%
maximum sales charge	Class B2		13.70	%		2.39	%		5.24	%6
or PACE Select	Class C3		17.55	%		2.73	%		4.95	%
program fee	Class P5		17.29	%		1.63	%		3.86	%
Russell 2500 Value Index7			20.64	%		3.05	%		8.02	%
Lipper Small-Cap Value Funds median8			19.91	%		3.17	%		7.94	%
Lipper Small-Cap Core Funds median8			23.99	%		4.08	%		6.94	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 25.26%; 5-year period, 2.79%; 10-year period, 5.79%; Class B—1-year period, 26.47%; 5-year period, 2.74%; 10-year period, 5.87%; Class C—1-year period, 30.64%; 5-year period, 3.16%; 10-year period, 5.57%; Class Y—1-year period, 32.87%; 5-year period, 4.30%; 10-year period, 6.73%; Class P—1-year period, 30.15%; 5-year period, 2.07%; 10-year period, 4.49%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.35% and 1.35%; Class B—2.37% and 2.16%; Class C—2.11% and 2.11%; Class Y—0.97% and 0.97%; and Class P—1.25% and 1.16%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.41%; Class B—2.16%; Class C—2.16%; Class Y—1.16%; and Class P—1.16%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select  program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The Russell 2500 Value Index is designed to measure the performance of the small to mid-cap value segment of the US equity universe. It includes those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2500 Value Index is constructed to provide a comprehensive and unbiased barometer of the small to mid-cap value market. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small to mid-cap opportunity set and that the represented companies continue to reflect value characteristics. Investors should note that indices do not reflect the deduction of fees and expenses.

⁸  On May 13, 2011, Lipper changed the peer group classification for PACE Small/Medium Co Value Equity Investments from the Lipper Small-Cap Core Funds category to the Lipper Small-Cap Value Funds category.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

124

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	425.3
Number of holdings		178
Portfolio composition1	07/31/11
Common stocks		97.7	%
Cash equivalents and other assets less liabilities		2.3
Total		100.0	%
Top five sectors1	07/31/11
Financials		22.0	%
Industrials		19.5
Consumer discretionary		16.3
Information technology		12.8
Health care		6.8
Total		77.4	%
Top ten equity holdings1	07/31/11
Raymond James Financial, Inc.		1.6	%
Jabil Circuit, Inc.		1.3
American Greetings Corp.		1.2
Entegris, Inc.		1.2
Coinstar, Inc.		1.2
Con-way, Inc.		1.1
Tidewater, Inc.		1.1
Ralcorp Holdings, Inc.		1.1
Covance, Inc.		1.1
Avery Dennison Corp.		1.0
Total		11.9	%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

125

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—97.66%
Aerospace & defense—0.46%
Triumph Group, Inc.		36,450	$	1,962,468
Air freight & logistics—0.74%
Atlas Air Worldwide Holdings, Inc.*		11,700		612,963
Forward Air Corp.		81,500		2,539,540
				3,152,503
Auto components—1.15%
Cooper Tire & Rubber Co.		151,380		2,552,267
Lear Corp.		47,850		2,344,650
				4,896,917
Automobiles—0.80%
Harley-Davidson, Inc.		35,825		1,554,447
Thor Industries, Inc.		74,500		1,842,385
				3,396,832
Beverages—0.66%
Constellation Brands, Inc., Class A*		32,675		666,243
Dr. Pepper Snapple Group, Inc.		56,370		2,128,531
				2,794,774
Building products—0.52%
Owens Corning, Inc.*		62,550		2,225,529
Capital markets—2.89%
Invesco Ltd.		34,500		765,210
Janus Capital Group, Inc.		174,000		1,468,560
Knight Capital Group, Inc., Class A*		149,005		1,685,247
Raymond James Financial, Inc.		218,915		6,952,740
Stifel Financial Corp.*		37,390		1,419,324
				12,291,081
Chemicals—0.75%
Huntsman Corp.		83,575		1,596,282
Innophos Holdings, Inc.		17,500		843,500
PolyOne Corp.		49,175		762,213
				3,201,995
Commercial banks—10.01%
Associated Banc-Corp		190,500		2,600,325
Bank of Hawaii Corp.		78,825		3,532,148
Cathay General Bancorp		215,000		2,979,900
CVB Financial Corp.1		321,000		3,110,490
East West Bancorp, Inc.		74,355		1,380,029
Fifth Third Bancorp		151,500		1,916,475
First Horizon National Corp.		385,544		3,466,041
First Midwest Bancorp, Inc.		317,220		3,781,262
Fulton Financial Corp.		114,000		1,157,100
Glacier Bancorp, Inc.		170,000		2,233,800
Huntington Bancshares, Inc.		509,100		3,077,509
IBERIABANK Corp.		39,950		2,036,252
KeyCorp		389,300		3,129,972
Prosperity Bancshares, Inc.		50,900		2,113,877
Wintrust Financial Corp.		90,020		3,076,884
Zions Bancorporation		136,500		2,989,350
				42,581,414

	Number of shares		Value
Common stocks—(Continued)
Commercial services & supplies—4.07%
Avery Dennison Corp.		139,615	$	4,404,853
Copart, Inc.*		34,000		1,477,300
KAR Auction Services, Inc.*		117,500		2,089,150
Republic Services, Inc.		92,055		2,672,357
Schawk, Inc.		121,000		1,910,590
Sykes Enterprises, Inc.*		89,800		1,733,140
United Stationers, Inc.		94,350		3,027,691
				17,315,081
Communications equipment—1.03%
Brocade Communications Systems, Inc.*		383,000		2,098,840
Plantronics, Inc.		66,000		2,260,500
				4,359,340
Computers & peripherals—1.70%
Avid Technology, Inc.*		164,800		2,157,232
Electronics for Imaging, Inc.*		206,000		3,545,260
Western Digital Corp.*		44,850		1,545,531
				7,248,023
Construction & engineering—1.97%
Dycom Industries, Inc.*		96,420		1,642,997
KBR, Inc.		85,125		3,034,706
MasTec, Inc.*		66,875		1,396,350
Pike Electric Corp.*		263,000		2,311,770
				8,385,823
Construction materials—0.53%
Texas Industries, Inc.1		58,500		2,258,685
Consumer finance—1.06%
Discover Financial Services		57,925		1,483,459
SLM Corp.		194,925		3,038,881
				4,522,340
Containers & packaging—2.94%
Ball Corp.		64,210		2,491,348
Boise, Inc.		129,100		894,663
Greif, Inc., Class A		54,030		3,298,531
Owens-Illinois, Inc.*		70,135		1,625,028
Rock-Tenn Co., Class A		68,010		4,179,895
				12,489,465
Diversified consumer services—1.45%
Coinstar, Inc.1,*		101,970		4,982,254
Weight Watchers International, Inc.		15,325		1,182,937
				6,165,191
Diversified telecommunication services—1.70%
General Communication, Inc., Class A*		141,500		1,606,025
Premiere Global Services, Inc.*		218,065		1,844,830
tw telecom, Inc.*		191,820		3,788,445
				7,239,300
Electric utilities—0.53%
Westar Energy, Inc.		87,000		2,245,470

126

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Electronic equipment, instruments & components—2.62%
Jabil Circuit, Inc.		309,675	$	5,670,150
Plexus Corp.*		77,720		2,293,517
SYNNEX Corp.*		112,460		3,184,867
				11,148,534
Energy equipment & services—3.01%
Oceaneering International, Inc.		55,000		2,376,000
Oil States International, Inc.*		26,300		2,122,410
Superior Energy Services, Inc.*		39,400		1,634,706
TETRA Technologies, Inc.*		148,500		1,911,195
Tidewater, Inc.1		87,735		4,767,520
				12,811,831
Food products—3.25%
Brooklyn Cheesecake & Desserts Co., Inc.2,*		4,955		1,239
Flowers Foods, Inc.		52,999		1,161,738
Hain Celestial Group, Inc.*		49,875		1,612,459
J&J Snack Foods Corp.		32,000		1,654,080
Ralcorp Holdings, Inc.*		52,000		4,498,000
Smithfield Foods, Inc.*		78,500		1,728,570
The Fresh Del Monte Produce, Inc.		129,510		3,174,290
				13,830,376
Health care equipment & supplies—1.56%
Sirona Dental Systems, Inc.*		38,000		1,922,040
STERIS Corp.		96,000		3,359,040
The Cooper Cos., Inc.		17,825		1,363,434
				6,644,514
Health care providers & services—2.88%
Amedisys, Inc.1,*		102,500		2,650,650
AMN Healthcare Services, Inc.*		279,500		2,252,770
Chemed Corp.		29,500		1,793,895
Health Management Associates, Inc., Class A*		307,800		2,924,100
Health Net, Inc.*		93,475		2,628,517
				12,249,932
Hotels, restaurants & leisure—2.53%
Ameristar Casinos, Inc.		60,725		1,348,095
Brinker International, Inc.		58,800		1,412,376
CEC Entertainment, Inc.		53,000		2,051,100
P.F. Chang's China Bistro, Inc.		82,500		2,716,725
Papa John's International, Inc.*		79,500		2,481,195
Wyndham Worldwide Corp.		21,700		750,603
				10,760,094
Household durables—2.29%
American Greetings Corp., Class A		235,880		5,229,459
Ethan Allen Interiors, Inc.1		91,000		1,674,400
MDC Holdings, Inc.		63,500		1,435,735
Newell Rubbermaid, Inc.		90,515		1,404,793
				9,744,387

	Number of shares		Value
Common stocks—(Continued)
Insurance—4.77%
Arch Capital Group Ltd.*		22,525	$	761,345
Brown & Brown, Inc.		124,115		2,706,948
HCC Insurance Holdings, Inc.		98,425		2,965,545
Horace Mann Educators Corp.		141,000		2,052,960
Lincoln National Corp.		114,900		3,044,850
Selective Insurance Group, Inc.		177,500		2,909,225
StanCorp Financial Group, Inc.		70,000		2,328,200
Unum Group		52,125		1,271,329
XL Group PLC		109,150		2,239,758
				20,280,160
Internet software & services—2.04%
DealerTrack Holdings, Inc.*		80,500		1,866,795
Digital River, Inc.*		43,975		1,121,363
ValueClick, Inc.*		188,025		3,395,731
WebMD Health Corp.*		64,500		2,273,625
				8,657,514
IT services—0.03%
TeleTech Holdings, Inc.*		6,355		125,765
Life sciences tools & services—2.39%
Bio-Rad Laboratories, Inc., Class A*		22,200		2,419,800
Charles River Laboratories International, Inc.*		82,500		3,262,875
Covance, Inc.*		78,500		4,494,125
				10,176,800
Machinery—5.85%
Briggs & Stratton Corp.		130,125		2,230,343
Kennametal, Inc.		97,300		3,836,539
Meritor, Inc.*		162,815		2,198,003
Pentair, Inc.		62,000		2,282,220
Timken Co.		73,950		3,229,396
Trimas Corp.*		135,460		3,246,976
Trinity Industries, Inc.		135,700		4,042,503
Wabtec Corp.		35,500		2,290,460
Watts Water Technologies, Inc., Class A		45,000		1,508,850
				24,865,290
Media—1.39%
DreamWorks Animation SKG, Inc., Class A*		110,000		2,404,600
John Wiley & Sons, Inc., Class A		28,645		1,433,969
Valassis Communications, Inc.1,*		77,750		2,083,700
				5,922,269
Metals & mining—0.87%
Noranda Aluminum Holding Corp.*		185,625		2,576,475
Walter Energy, Inc.		9,325		1,142,965
				3,719,440
Multi-utilities—1.05%
CMS Energy Corp.		124,000		2,373,360
NiSource, Inc.		102,925		2,071,880
				4,445,240

127

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Multiline retail—0.64%
Macy's, Inc.		94,425	$	2,726,050
Oil, gas & consumable fuels—2.37%
Comstock Resources, Inc.*		48,860		1,558,634
Denbury Resources, Inc.*		120,425		2,326,611
Energen Corp.		40,750		2,396,507
Rex Energy Corp.1,*		122,900		1,360,503
Western Refining, Inc.1,*		118,625		2,423,509
				10,065,764
Paper & forest products—0.94%
Glatfelter		140,000		2,112,600
MeadWestvaco Corp.		60,525		1,884,749
				3,997,349
Personal products—0.20%
Nu Skin Enterprises, Inc., Class A		22,525		845,589
Professional services—2.43%
Heidrick & Struggles International, Inc.		70,000		1,862,000
Kelly Services, Inc., Class A*		150,740		2,359,081
Resources Connection, Inc.		291,500		3,795,330
School Specialty, Inc.*		191,000		2,295,820
				10,312,231
Real estate investment trusts—2.56%
BioMed Realty Trust, Inc.		164,500		3,227,490
CBL & Associates Properties, Inc.		126,400		2,244,864
DuPont Fabros Technology, Inc.1		45,675		1,164,256
Home Properties, Inc.		47,700		3,125,304
Summit Hotel Properties, Inc.		101,400		1,143,792
				10,905,706
Road & rail—3.27%
Con-way, Inc.		131,805		4,826,699
Hertz Global Holdings, Inc.*		148,925		2,095,375
Landstar System, Inc.		77,000		3,453,450
Ryder System, Inc.		62,450		3,517,184
				13,892,708
Semiconductors & semiconductor equipment—4.21%
Atmel Corp.*		211,175		2,555,218
ATMI, Inc.*		100,500		1,874,325
Brooks Automation, Inc.*		115,500		1,098,405
Entegris, Inc.*		581,500		4,983,455
NVIDIA Corp.*		259,590		3,590,130
ON Semiconductor Corp.*		437,260		3,799,789
				17,901,322
Software—1.16%
Cadence Design Systems, Inc.*		227,950		2,354,723
Progress Software Corp.*		106,350		2,563,035
				4,917,758
Specialty retail—4.07%
Aeropostale, Inc.*		143,000		2,409,550
Chico's FAS, Inc.		119,036		1,796,253
Foot Locker, Inc.		49,775		1,081,611
Group 1 Automotive, Inc.		32,000		1,524,160

	Number of shares		Value
Common stocks—(Concluded)
Specialty retail—(Concluded)
Jos. A. Bank Clothiers, Inc.*		57,000	$	2,924,670
OfficeMax, Inc.*		425,000		3,009,000
Pier 1 Imports, Inc.*		118,600		1,303,414
Signet Jewelers Ltd.*		60,300		2,583,252
Williams-Sonoma, Inc.		17,700		655,254
				17,287,164
Textiles, apparel & luxury goods—2.03%
Carter's, Inc.*		76,500		2,562,750
PVH Corp.		37,450		2,679,547
The Jones Group Inc.		261,500		3,383,810
				8,626,107
Thrifts & mortgage finance—0.68%
First Niagara Financial Group, Inc.		237,025		2,903,556
Trading companies & distributors—0.24%
Applied Industrial Technologies, Inc.		31,950		1,019,844
Water utilities—0.91%
American Water Works Co., Inc.		137,600		3,852,800
Wireless telecommunication services—0.46%
MetroPCS Communications, Inc.*		119,650		1,947,902
Total common stocks (cost—$373,780,058)				415,316,227
	Face amount
Repurchase agreement���3.72%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $78,659 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $11,305,706 US Treasury Bills, zero coupon due 08/04/11 and $4,458,944 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$16,126,370); proceeds: $15,810,013 (cost—$15,810,000)	$	15,810,000		15,810,000
	Number of shares
Investment of cash collateral from securities loaned—3.56%
Money market fund—3.56%
UBS Private Money Market Fund LLC3(cost—$15,163,573)		15,163,573		15,163,573
Total investments (cost—$404,753,631)— 104.94%				446,289,800
Liabilities in excess of other assets—(4.94)%				(21,006,799	)
Net assets—100.00%			$	425,283,001

128

PACE Select Advisors Trust

PACE Small/Medium Co Value Equity Investments

Portfolio of investments—July 31, 2011

Aggregate cost for federal income tax purposes was $407,196,461; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	59,011,740
Gross unrealized depreciation		(19,918,401	)
Net unrealized appreciation	$	39,093,339

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at July 31, 2011.

²  Illiquid security representing 0.00% of net assets as of July 31, 2011.

³  The table below details the Portolio's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	11,194,599	$	188,007,480	$	184,038,506	$	15,163,573	$	7,632

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	415,314,988	$	1,239	$	—	$	415,316,227
Repurchase agreement		—		15,810,000		—		15,810,000
Investment of cash collateral from securities loaned		—		15,163,573		—		15,163,573
Total	$	415,314,988	$	30,974,812	$	—	$	446,289,800

Issuer breakdown by country or territory of origin (unaudited)

	Percentage of total investments
United States		97.9	%
Bermuda		0.9
Cayman Islands		0.7
Ireland		0.5
Total		100.0	%

See accompanying notes to financial statements.
129

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 35.82%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 33.12%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Russell 2500 Growth Index (the "benchmark") returned 30.39%, and the Lipper Small-Cap Growth Funds category posted a median return of 30.86%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 134. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisor's comments¹

Copper Rock

Our portion of the Portfolio outperformed the benchmark during the reporting period. Despite some volatility that crept into the markets in the spring of 2011, stocks with good earnings reports and strong fundamentals were rewarded throughout the period. Solid stock selection contributed to our outperformance, with particularly strong results in a handful of positions in the consumer staples, health care and consumer discretionary sectors.

Leading contributors included Green Mountain Coffee Roasters, Inc. in the consumer staples sector, Lululemon Athletica, Inc. and Shutterfly, Inc. in the consumer discretionary sector and Zoll Medical Corp. in the health care sector. Solid fundamentals and earnings have been consistently rewarded as Green Mountain Coffee Roasters posted another strong 2010 holiday season with better than expected brewer and k-cup sales. It also announced a k-cup distribution agreement with Dunkin' Donuts and then a partnership agreement with Starbucks. These agreements are expected to be incremental to sales and solidify Green Mountain Coffee Roasters' position as the leader in the single cup serve market. Lululemon Athletica has continued to demonstrate strong sales momentum while also opening new stores at a robust pace and driving margin improvements substantially.

Weakness during the period stemmed primarily from stock selection in the information technology sector. This was partially offset by a positive contribution from the overweight position relative to the benchmark. As a result, performance in the sector for the period was essentially flat. While our portion of the portfolio benefited from owning positions in names like Skyworks Solutions, Inc., Acme Packet, Inc. and Riverbed Technology, Inc., our positions in DG Fast Channel and GSI Commerce detracted from performance. DG FastChannel pre-announced

PACE Select Advisors Trust – PACE Small/Medium Co Growth Equity Investments

Investment Sub-Advisors:

Copper Rock Capital Partners, LLC ("Copper Rock"), Riverbridge Partners, LLC ("Riverbridge"), and Palisade Capital Management, L.L.C. ("Palisade")

Portfolio Managers:

Copper Rock: Tucker Walsh;

Riverbridge: Mark Thompson;

Palisade: Sammy Oh

Objective:

Capital appreciation

Investment process:

Copper Rock employs a fundamental, bottom-up investment approach that focuses on identifying emerging companies that exhibit the potential for strong and sustainable revenue growth over each of the following two years. Copper Rock utilizes a "pure" growth investment style that emphasizes growth and momentum characteristics. Copper Rock attempts to manage risk by diversifying and understanding its holdings and employing a stringent sell discipline.

(continued on next page)

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

130

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Sub-Advisors' comments – continued

negative third quarter results at the end of August 2010, just three weeks after reporting very strong second quarter results. We were expecting similar strong results and this pre-announcement was very surprising. We exited the stock as our investment thesis was broken, but the stock's extreme underperformance had an outsized negative impact on our results during the fiscal year. GSI Commerce, an e-commerce and interactive marketing services provider, acquired RueLaLa, a private sale business, which is a bit different than the company's core business, but which had been growing very rapidly. The core e-commerce business continued to perform better than expected, although the RueLaLa business grew slightly below expectations, with higher associated expenses than we had anticipated. As a result, our earnings forecasts started to come down despite good performance from the e-commerce business line, and we made the decision to sell the stock. Subsequent to our sale, eBay purchased the e-commerce portion of GSI Commerce, but did not acquire the RueLaLa business line.

Riverbridge Partners

Our portion of the Portfolio modestly underperformed the benchmark during the reporting period. Stock selection in the consumer discretionary sector detracted from performance, primarily due to concerns over the for-profit education industry, which negatively impacted our holdings in Capella Education Co. and Grand Canyon Education, Inc. We have investments in this industry because we believe demand will continue for these services. These companies typically cater to demographic groups not well served by traditional colleges. Our investment team is mindful of the risks confronting this industry and exercises particular discernment as to which companies will best fit our portfolios and are best positioned within the group over the long term. Our underweight to the outperforming energy sector also detracted from our relative performance. Energy, benefiting from rising crude oil prices, was the best performing market sector over the past year.

Stock selection within the health care sector contributed to performance. We are focused on those health care companies that are delivering a product or service that compels the ultimate payer, whether that entity is a central system or the actual receiver of health care, to consume their products or services. One of our top performers over the reporting period was Cepheid, Inc., which enables its customers to deliver superior medical outcomes at a reduced cost versus what they would otherwise spend for care. The company also facilitates the rapid detection of a biological condition, to expedite diagnosis and for more targeted treatments of a condition. Our overweight to the outperforming information technology sector also enhanced our results.

We believe that our long-term excess performance relative to the benchmark is attributable to the consistent application of our investment process over time. Many investors, led by hedge funds, have truncated their investment horizons over the last several years. As a result, fewer investors have the fortitude to stick with their investments during times of market turbulence. Hedge funds will quickly reverse their positions based on fear of loss. Market trends, because of this short-term orientation, may be shorter in duration. We believe this phenomenon will provide us and other long-term oriented investors with an advantage.

Investment process (concluded)

Riverbridge believes that earnings power determines the value of a franchise. Riverbridge focuses on companies that are viewed as building their earnings power and building the intrinsic value of the company over long periods of time. Riverbridge looks to invest in high-quality growth companies that demonstrate the ability to sustain strong secular earnings growth, regardless of overall economic conditions.

Palisade seeks fundamentally strong and dynamic small- and mid-cap companies that are trading at a discount to their growth rates. Palisade's goal is to ascertain a dynamic of change before it manifests in consensus estimates. Palisade believes that the small- and mid-cap market is inherently less efficient than the large-cap market, and attempts to gain an information advantage through fundamental research.

131

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Sub-Advisors' comments – concluded

Palisade

Our portion of the Portfolio outperformed the benchmark during the reporting period. Information technology was our best performing sector for the period, followed by the industrials, materials and energy sectors. Stock selection was particularly strong within information technology, especially among software stocks with strong earnings results. In addition, a number of our holdings were acquired at significant premiums. Netezza was acquired by IBM; ArcSight by Hewlett-Packard; Art Technology Group by Oracle Corp.; and Savvis Inc. by CenturyLink, Inc. Both Syniverse and CommScope were taken private by The Carlyle Group. Industrial company Baldor Electric was acquired by ABB. We do not own the acquiring companies as they were either purchased by larger-cap companies that are outside our investable universe, or taken over by larger equity firms.

The worst performing sector relative to the benchmark was consumer discretionary. We identified specialty retailers Talbots, OfficeMax and Coldwater Creek as potential turnaround candidates, but the turnarounds failed to materialize due to poor execution and a weak spending environment in women's apparel. We have exited all of these positions. Our portion of the Portfolio was hurt by its holdings in the financials sector. This was primarily due to weaker capital markets stocks such as Knight Capital Group, Inc. and MF Global Holdings Ltd., as transaction activity and trading volumes failed to improve. We continue to hold both stocks, as we believe business conditions will improve and both companies are valued attractively.

We feel that the market is likely to remain volatile as investors wrestle with numerous issues, including those surrounding the debt ceiling and global economic weakness. Although we are both cautious and aware of the economic and political factors, our portion of the Portfolio continues to be constructed from our bottom up research. We believe fear, dislocations in the market, the "risk off" trade, etc. can create opportunities if we maintain our discipline and a steady mindset. Acquisition activity within the benchmark has moderated in 2011, but we believe it will pick up again later in the year as corporate balance sheets remain flush with cash.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. In addition, small- and mid-cap companies are typically subject to a greater degree of change in earnings and business prospects than are larger, more established companies. Therefore, they are considered to have a higher level of volatility and risk. Also, to the extent the Portfolio invests a large portion of its assets in a particular sector, the Portfolio may experience greater volatility and risk of loss due to unfavorable developments in that sector.

132

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Small/Medium Co Growth Equity Investments Class P shares versus the Russell 2500 Growth Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that PACE Small/Medium Co Growth Equity Investments is a professionally managed portfolio while the Index is not available for investment and is unmanaged. The comparison is shown for illustration purposes only.

133

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		35.67	%		6.81	%		5.55	%
maximum sales charge	Class B2		34.23	%		5.96	%		5.00	%6
or PACE Select	Class C3		34.50	%		6.00	%		4.72	%
program fee	Class Y4		35.87	%		7.14	%		5.86	%
	Class P5		35.82	%		7.02	%		5.77	%
After deducting	Class A1		28.25	%		5.61	%		4.96	%
maximum sales charge	Class B2		29.23	%		5.64	%		5.00	%6
or PACE Select	Class C3		33.50	%		6.00	%		4.72	%
program fee	Class P5		33.12	%		4.90	%		3.68	%
Russell 2500 Growth Index7			30.39	%		6.89	%		5.91	%
Lipper Small-Cap Growth Funds median			30.86	%		5.42	%		5.05	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 39.13%; 5-year period, 5.49%; 10-year period, 4.51%; Class B—1-year period, 40.91%; 5-year period, 5.52%; 10-year period, 4.55%; Class C—1-year period, 44.98%; 5-year period, 5.88%; 10-year period, 4.27%; Class Y—1-year period, 47.49%; 5-year period, 7.02%; 10-year period, 5.41%; Class P—1-year period, 44.47%; 5-year period, 4.80%; 10-year period, 3.25%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.35% and 1.35%; Class B—2.73% and 2.13%; Class C—2.13% and 2.13%; Class Y—0.94% and 0.94%; and Class P—1.23% and 1.13%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.38%; Class B—2.13%; Class C—2.13%; Class Y—1.13%; and Class P—1.13%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select  program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The Russell 2500 Growth Index is designed to measure the performance of the small to mid-cap growth segment of the US equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2500 Growth Index is constructed to provide a comprehensive and unbiased barometer of the small to mid-cap growth market. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small to mid-cap opportunity set and that the represented companies continue to reflect growth characteristics. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend  dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

134

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	468.6
Number of holdings		206
Portfolio composition1	07/31/11
Common stocks		95.3	%
ADRs		0.4
Investment companies		0.9
Cash equivalents and other assets less liabilities		3.4
Total		100.0	%
Top five sectors1	07/31/11
Information technology		22.5	%
Health care		20.6
Industrials		18.8
Consumer discretionary		15.9
Energy		6.7
Total		84.5	%
Top ten equity holdings1	07/31/11
Green Mountain Coffee Roasters, Inc.		1.6	%
The Cooper Cos., Inc.		1.5
Zoll Medical Corp.		1.5
Affiliated Managers Group, Inc.		1.3
athenahealth, Inc.		1.2
AMETEK, Inc.		1.2
Acacia Research		1.1
Gentex Corp.		1.1
Cepheid, Inc.		1.1
SXC Health Solutions Corp.		1.0
Total		12.6	%

For a listing of defined portfolio acronyms that are used throughout the Portfolio statistics, please refer to page 227.

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

135

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—95.68%
Aerospace & defense—1.59%
BE Aerospace, Inc.*		47,292	$	1,882,222
TransDigm Group, Inc.*		37,007		3,333,220
Triumph Group, Inc.		41,350		2,226,284
				7,441,726
Air freight & logistics—1.63%
Atlas Air Worldwide Holdings, Inc.*		54,116		2,835,137
Forward Air Corp.		35,400		1,103,064
Hub Group, Inc., Class A*		103,902		3,686,443
				7,624,644
Auto components—1.48%
Gentex Corp.		184,672		5,233,605
Tenneco, Inc.*		42,116		1,682,113
				6,915,718
Biotechnology—3.31%
Alexion Pharmaceuticals, Inc.*		34,120		1,938,016
Ardea Biosciences, Inc.*		83,410		1,951,794
Cepheid, Inc.*		135,669		5,122,861
Dendreon Corp.*		38,700		1,428,030
Human Genome Sciences, Inc.*		71,260		1,497,173
Onyx Pharmaceuticals, Inc.*		41,130		1,356,467
Pharmasset, Inc.*		18,300		2,221,254
				15,515,595
Capital markets—3.14%
Affiliated Managers Group, Inc.*		60,252		6,286,091
Financial Engines, Inc.1,*		36,767		873,584
Knight Capital Group, Inc., Class A*		166,940		1,888,092
Lazard Ltd., Class A		53,215		1,788,024
MF Global Holdings Ltd.*		278,160		2,050,039
Stifel Financial Corp.*		48,620		1,845,615
				14,731,445
Chemicals—2.23%
Albemarle Corp.		43,649		2,906,151
FMC Corp.		30,630		2,682,269
Intrepid Potash, Inc.1,*		50,050		1,664,163
Landec Corp.*		91,546		565,754
Solutia, Inc.*		122,960		2,636,262
				10,454,599
Commercial banks—0.51%
Hancock Holding Co.		72,870		2,401,067
Commercial services & supplies—2.66%
Cenveo, Inc.*		229,460		1,328,574
Clean Harbors, Inc.*		40,560		2,139,540
EnerNOC, Inc.1,*		36,214		606,222
Innerworkings, Inc.1,*		140,700		1,031,331
Mobile Mini, Inc.*		43,900		926,729
Ritchie Brothers Auctioneers, Inc.1		108,193		2,963,406
Rollins, Inc.		180,900		3,453,381
				12,449,183

	Number of shares		Value
Common stocks—(Continued)
Communications equipment—1.94%
Acme Packet, Inc.*		25,924	$	1,527,442
Digi International, Inc.*		153,100		2,187,799
JDS Uniphase Corp.*		87,660		1,152,729
Riverbed Technology, Inc.*		148,027		4,238,013
				9,105,983
Computers & peripherals—0.45%
Fusion-io, Inc.1,*		39,806		1,178,656
Stratasys, Inc.1,*		35,875		914,812
				2,093,468
Construction & engineering—0.36%
Foster Wheeler AG*		62,210		1,685,891
Consumer finance—0.42%
First Cash Financial Services, Inc.*		45,000		1,947,150
Distributors—0.53%
LKQ Corp.*		100,600		2,471,742
Diversified consumer services—1.01%
Capella Education Co.*		18,324		783,351
Coinstar, Inc.1,*		50,550		2,469,873
Grand Canyon Education, Inc.*		61,455		945,792
Universal Technical Institute, Inc.*		29,900		517,270
				4,716,286
Diversified financial services—0.91%
Portfolio Recovery Associates, Inc.*		52,671		4,262,664
Electrical equipment—2.91%
AMETEK, Inc.		132,102		5,614,335
Polypore International, Inc.*		28,896		1,964,928
Roper Industries, Inc.		46,516		3,797,101
Woodward Governor Co.		65,770		2,269,065
				13,645,429
Electronic equipment, instruments & components—1.63%
Coherent, Inc.*		39,000		1,873,170
Echelon Corp.*		128,321		1,063,781
FARO Technologies, Inc.*		34,200		1,393,992
Napco Security Systems, Inc.*		56,250		147,375
National Instruments Corp.		122,350		3,161,524
				7,639,842
Energy equipment & services—3.90%
CARBO Ceramics, Inc.		22,903		3,574,471
Core Laboratories N.V.		9,414		1,023,114
ION Geophysical Corp.*		257,930		2,615,410
Key Energy Services, Inc.*		143,469		2,796,211
Lufkin Industries, Inc.		37,492		3,054,848
OYO Geospace Corp.*		26,771		2,715,383
Rowan Cos., Inc.*		63,960		2,505,313
				18,284,750
Food & staples retailing—0.99%
PriceSmart, Inc.		18,502		1,082,737
The Fresh Market, Inc.1,*		25,245		896,955

136

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Food & staples retailing—(Concluded)
United Natural Foods, Inc.*		63,353	$	2,644,988
				4,624,680
Food products—2.14%
Diamond Foods, Inc.1		34,950		2,502,070
Green Mountain Coffee Roasters, Inc.*		72,261		7,511,531
				10,013,601
Health care equipment & supplies—6.92%
Abaxis, Inc.*		55,513		1,316,768
AngioDynamics, Inc.*		109,400		1,513,002
DexCom, Inc.*		214,118		3,036,193
IDEXX Laboratories, Inc.*		18,813		1,560,350
Insulet Corp.*		66,761		1,312,521
Masimo Corp.		65,460		1,818,479
Neogen Corp.*		53,540		2,214,415
ResMed, Inc.1,*		48,950		1,482,696
Sirona Dental Systems, Inc.*		37,269		1,885,066
The Cooper Cos., Inc.		89,870		6,874,156
Thoratec Corp.*		76,570		2,579,643
Zoll Medical Corp.*		98,041		6,829,536
				32,422,825
Health care providers & services—6.22%
Air Methods Corp.*		30,072		2,108,047
AMERIGROUP Corp.*		31,566		1,736,130
Bio-Reference Laboratories, Inc.1,*		61,675		1,229,800
Catalyst Health Solutions, Inc.*		42,463		2,782,600
Chemed Corp.		51,000		3,101,310
ExamWorks Group, Inc.1,*		88,917		1,945,504
HMS Holdings Corp.*		34,892		2,637,835
IPC The Hospitalist Co.*		102,041		4,615,315
Lincare Holdings, Inc.		46,490		1,189,679
Magellan Health Services, Inc.*		55,420		2,887,382
MEDNAX, Inc.*		37,900		2,583,264
MWI Veterinary Supply, Inc.*		25,963		2,312,265
				29,129,131
Health care technology—3.33%
Allscripts Healthcare Solutions, Inc.*		203,390		3,691,529
athenahealth, Inc.1,*		96,495		5,672,941
Quality Systems, Inc.1		16,700		1,525,712
SXC Health Solutions Corp.*		74,471		4,701,354
				15,591,536
Hotels, restaurants & leisure—3.40%
Arcos Dorados Holdings, Inc., Class A		115,100		2,700,246
Cheesecake Factory, Inc.*		72,100		2,078,643
Chipotle Mexican Grill, Inc.*		4,328		1,404,782
Dunkin' Brands Group, Inc.*		2,303		66,626
Penn National Gaming, Inc.*		60,440		2,534,249
Red Robin Gourmet Burgers, Inc.*		54,400		1,872,448
Scientific Games Corp., Class A*		209,300		1,913,002
Wyndham Worldwide Corp.		97,910		3,386,707
				15,956,703

	Number of shares		Value
Common stocks—(Continued)
Household durables—0.50%
Tempur-Pedic International, Inc.*		32,552	$	2,344,070
Internet & catalog retail—0.54%
Shutterfly, Inc.*		46,908		2,551,795
Internet software & services—2.81%
Bankrate, Inc.1,*		96,500		1,764,985
Constant Contact, Inc.1,*		34,200		647,406
DealerTrack Holdings, Inc.*		64,600		1,498,074
Dice Holdings, Inc.*		93,740		1,292,675
Monster Worldwide, Inc.*		157,780		1,852,337
OpenTable, Inc.1,*		20,505		1,452,984
QuinStreet, Inc.*		98,541		1,230,777
Rackspace Hosting, Inc.*		34,540		1,381,600
SPS Commerce, Inc.*		31,300		574,981
Vocus, Inc.*		52,080		1,487,926
				13,183,745
IT services—2.51%
Cass Information Systems, Inc.		33,600		1,261,344
Echo Global Logistics, Inc.1,*		78,166		1,169,363
Forrester Research, Inc.		44,600		1,409,360
Gartner, Inc.*		85,863		3,169,203
MAXIMUS, Inc.		58,400		2,255,992
VeriFone Systems, Inc.*		63,923		2,516,649
				11,781,911
Life sciences tools & services—0.84%
Bruker Corp.*		95,010		1,636,072
MEDTOX Scientific, Inc.		29,900		466,739
Techne Corp.		24,500		1,856,855
				3,959,666
Machinery—4.27%
Astec Industries, Inc.*		39,377		1,477,425
CLARCOR, Inc.		41,515		1,829,151
Gardner Denver, Inc.		35,345		3,014,575
Graco, Inc.		42,286		1,857,624
Joy Global, Inc.		19,473		1,828,904
Kennametal, Inc.		45,860		1,808,260
Robbins & Myers, Inc.		54,886		2,647,701
Wabash National Corp*		157,700		1,184,327
WABCO Holdings, Inc.*		68,962		4,348,054
				19,996,021
Media—0.49%
Cinemark Holdings, Inc.		118,570		2,310,929
Metals & mining—0.44%
Schnitzer Steel Industries, Inc.		40,460		2,054,963
Multiline retail—0.42%
Big Lots, Inc.*		56,500		1,967,895
Oil, gas & consumable fuels—2.77%
Brigham Exploration Co.*		138,548		4,405,826
Forest Oil Corp.*		60,970		1,585,220
James River Coal Co.1,*		107,100		2,030,616
Oasis Petroleum, Inc.*		68,198		2,014,569

137

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Oil, gas & consumable fuels—(Concluded)
Plains Exploration & Production Co.*		40,175	$	1,567,227
Rosetta Resources, Inc.*		26,715		1,383,036
				12,986,494
Personal products—0.37%
Herbalife Ltd.		31,194		1,738,130
Professional services—2.71%
51job, Inc., ADR1,*		28,198		1,862,478
Acacia Research*		125,445		5,384,099
CoStar Group, Inc.*		21,600		1,269,216
Equifax, Inc.		56,130		1,928,627
Korn/Ferry International*		48,800		1,051,152
Resources Connection, Inc.		93,800		1,221,276
				12,716,848
Road & rail—0.87%
Kansas City Southern*		34,205		2,030,067
Knight Transportation, Inc.		129,090		2,031,876
				4,061,943
Semiconductors & semiconductor equipment—4.64%
Atmel Corp.*		305,287		3,693,973
Cabot Microelectronics Corp.*		42,761		1,654,423
Cavium, Inc.*		40,002		1,379,669
Cypress Semiconductor Corp.*		88,400		1,819,272
Entropic Communications, Inc.1,*		154,565		1,032,494
Netlogic Microsystems, Inc.*		27,718		957,657
Power Integrations, Inc.1		50,300		1,785,147
Semtech Corp.*		111,700		2,602,610
Skyworks Solutions, Inc.*		103,215		2,612,372
Ultratech, Inc.*		78,975		2,080,991
Volterra Semiconductor Corp.*		82,170		2,117,521
				21,736,129
Software—8.54%
BroadSoft, Inc.*		81,170		2,370,976
Concur Technologies, Inc.*		20,400		926,976
Ebix, Inc.1,*		77,077		1,517,646
Guidance Software, Inc.*		72,300		543,696
Informatica Corp.*		55,789		2,852,492
MICROS Systems, Inc.*		40,582		1,987,301
NetSuite, Inc.1,*		26,831		1,052,043
Nuance Communications, Inc.*		77,040		1,541,570
Pegasystems, Inc.1		39,707		1,602,575
QLIK Technologies, Inc.*		48,027		1,455,698
Rovi Corp.*		68,191		3,612,077
Solera Holdings, Inc.		21,792		1,217,737
Sourcefire, Inc.1,*		81,200		1,995,896
SS&C Technologies Holdings, Inc.*		100,220		1,856,074
SuccessFactors, Inc.*		52,000		1,404,000
Synchronoss Technologies, Inc.*		86,806		2,539,075
Taleo Corp., Class A*		55,200		1,827,120
TIBCO Software, Inc.*		169,988		4,426,488
Ultimate Software Group, Inc.*		63,500		3,453,130
Verint Systems, Inc.*		53,900		1,833,678
				40,016,248

	Number of shares		Value
Common stocks—(Concluded)
Specialty retail—4.50%
Abercrombie & Fitch Co., Class A		51,428	$	3,760,415
Chico's FAS, Inc.		120,240		1,814,422
Express, Inc.		95,500		2,143,020
Foot Locker, Inc.		79,600		1,729,708
GameStop Corp., Class A*		86,030		2,028,587
Pier 1 Imports, Inc.*		130,700		1,436,393
Tractor Supply Co.		39,212		2,584,855
Ulta Salon, Cosmetics & Fragrance, Inc.*		44,724		2,818,954
Vitamin Shoppe, Inc.*		63,571		2,769,153
				21,085,507
Textiles, apparel & luxury goods—3.00%
Crocs, Inc.*		83,975		2,630,937
Fossil, Inc.*		31,849		4,002,464
Lululemon Athletica, Inc.1,*		35,269		2,135,185
Under Armour, Inc., Class A*		47,729		3,503,786
Vera Bradley, Inc.*		48,780		1,769,250
				14,041,622
Trading companies & distributors—1.85%
Beacon Roofing Supply, Inc.*		93,500		1,999,030
Kaman Corp.		42,385		1,509,754
United Rentals, Inc.*		78,310		1,801,913
WESCO International, Inc.*		66,383		3,364,954
				8,675,651
Total common stocks (cost—$353,023,986)				448,335,225
Investment companies—0.91%
iShares Russell 2000 Growth Index Fund1		14,553		1,326,797
iShares Russell Midcap Growth Index Fund1		49,264		2,927,267
Total Investment companies (cost—$4,407,717)				4,254,064
	Face amount
Repurchase agreement—3.09%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $71,997 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $10,348,190 US Treasury Bills, zero coupon due 08/04/11 and $4,081,302 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$14,760,576); proceeds: $14,471,012 (cost—$14,471,000)	$	14,471,000		14,471,000

138

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Investment of cash collateral from securities loaned—8.65%
Money market fund—8.65%
UBS Private Money Market Fund LLC2(cost—$40,533,810)		40,533,810	$	40,533,810
Total investments (cost—$412,436,513)— 108.33%				507,594,099
Liabilities in excess of other assets—(8.33)%				(39,024,670	)
Net assets—100.00%			$	468,569,429

Aggregate cost for federal income tax purposes was $415,263,472; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	107,747,117
Gross unrealized depreciation		(15,416,490	)
Net unrealized appreciation	$	92,330,627

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at July 31, 2011.

²  The table below details the Portfolio's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	49,573,183	$	281,170,719	$	290,210,092	$	40,533,810	$	25,086

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	448,335,225	$	—	$	—	$	448,335,225
Investment companies		4,254,064		—		—		4,254,064
Repurchase agreement		—		14,471,000		—		14,471,000
Investment of cash collateral from securities loaned		—		40,533,810		—		40,533,810
Total	$	452,589,289	$	55,004,810	$	—	$	507,594,099

139

PACE Select Advisors Trust

PACE Small/Medium Co Growth Equity Investments

Portfolio of investments—July 31, 2011

Issuer breakdown by country or territory of origin (unaudited)

	Percentage of total investments
United States		96.4	%
Canada		1.5
Cayman Islands		0.7
British Virgin Islands		0.5
Bermuda		0.4
Switzerland		0.3
Netherlands		0.2
Total		100.0	%

See accompanying notes to financial statements.
140

PACE Select Advisors Trust

PACE International Equity Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 16.79%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 14.48%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the MSCI EAFE Index (net) (the "benchmark") returned 17.17%, and the Lipper International Large-Cap Core Funds category posted a median return of 16.77%. (Please note that while all of the Sub-Advisors outperformed the benchmark on a gross of fees basis, the Fund as a whole underperformed net of fees, as reported here, largely because fees and expenses that are embedded in the Fund are not embedded in the benchmark. Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 146. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisors' comments¹

Martin Currie

Our portion of the Portfolio outperformed the benchmark during the reporting period. On a regional level, our Asia ex-Japan holdings made the biggest positive contribution to returns, followed by our European positions. Conversely, our allocation to emerging markets equities, which aren't represented in the benchmark, was detrimental to returns over the period, as our emerging markets holdings underperformed due to concerns regarding inflation and central bank monetary tightening. Our Japanese holdings also detracted overall, although this was somewhat offset by our underweight position in what was a lagging region. On a sector level, our holdings in utilities, materials, energy, and especially consumer discretionary, did well. Consumer discretionary represents our largest sector overweight versus the benchmark, and we benefited from the robust performance of the sector, as well as from strong stock selection within it.

In terms of individual stocks, the best performer by far was Macao casino operator SJM Holdings Ltd., whose revenues continued to reflect the increasing disposable income of the

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

PACE Select Advisors Trust –
PACE International Equity Investments

Investment Sub-Advisors:

Martin Currie Inc. ("Martin Currie"),

Mondrian Investment Partners Limited

("Mondrian") and J.P. Morgan Investment

Management Inc. ("J.P. Morgan")

Portfolio Managers:

Martin Currie: James Fairweather;

Mondrian: Elizabeth A. Desmond, Nigel G. May, Emma R. E. Lewis and Russell J. Mackie;

J.P. Morgan: International REI Segment—Beltran Lastra and Jaco Venter; EAFE Opportunities Segment—Jeroen Huysinga

Objective:

Capital appreciation

Investment process:

Martin Currie has a highly active "conviction" approach, seeking the best opportunities for growth across global stock markets. Martin Currie identifies change as the central dynamic behind stock price movement. This means recognizing change at the company level (management changes, product strategies, acquisitions, etc.) and at the macro level (legislative changes, economic prospects, sector dynamics, etc.). Martin Currie believes its investment process allows it to identify, evaluate and exploit change at an early stage. In managing its segment of the Portfolio's assets, Martin Currie uses a fully integrated international investment process. So rather than running distinct regional portfolios, it compares and ranks stock opportunities across the whole investment universe. To help identify and evaluate the best stock ideas, Martin Currie employs fundamental company and sector research, together with its own proprietary quantitative screening tool.

(continued on next page)

141

PACE Select Advisors Trust

PACE International Equity Investments

Sub-Advisors' comments – continued

Asian consumer. The next best performer was French oil services company Technip SA, as the rising price of oil increased projected spending by oil companies. As global car production continued to grow, UK-listed engineer GKN PLC performed particularly well. Our holding in Italian luxury goods company Bulgari was another standout, with LVMH buying the company at a premium of almost 60% in March 2011. Elsewhere, the continued strong operating performance of Brazilian telecommunication operator TIM Brasil was rewarded by earnings upgrades from analysts and impressive share price appreciation.

The main detractor from relative performance was Barclays PLC. In a weak period for European financials in general, it suffered from concerns about profits at its investment bank, Barclays Capital, and the possible impact of tighter regulatory capital requirements. Our holding in financial company Credit Suisse Group also hurt our results. Other prominent negative contributors included two consumer discretionary stocks: Sony Corp. and Panasonic. The fall in Sony's share price was linked to the theft of user information by computer hackers. Panasonic was badly affected by the Japanese earthquake. Our investment thesis was predicated on the company's restructuring of its TV business and synergies from the Sanyo Electric acquisition; neither of these outcomes looks likely in the next 18 months. Dutch electronics giant Philips has also been suffering from falling margins in the difficult TV market. Of these stocks, we have sold Panasonic and Philips, but we maintain our positions in Barclays, Credit Suisse and Sony.

JPMorgan (International REI)

Our portion of the Portfolio outperformed the benchmark during the reporting period. Regionally, Europe contributed to performance, while the Pacific Rim detracted from results. At the sector level, stock selection in basic industries and banks and finance added the most value, while transport services and consumer cyclical and energy hurt our performance.

At the stock level, Rhodia, the French specialty chemical company, was the largest contributor to performance, as it was acquired by Solvay, a Belgian chemical firm. After taking profits, we decided to sell Rhodia for Solvay. Solvay reported higher-than-expected earnings during the first quarter of 2011, and received the 'go-ahead' from French regulators for its planned takeover of Rhodia. Solvay also raised prices and boosted production of its most profitable polymers. Additionally, we view the merger favorably, especially since ex-

Investment process (continued)

Mondrian conducts research on a global basis in an effort to identify securities that have the potential for capital appreciation over a market cycle. The center of its research effort is a value-oriented dividend discount methodology toward individual securities and market analysis that attempts to identify value across country boundaries. This approach focuses on future anticipated dividends, and discounts the value of those dividends back to what they would be worth if they were being paid today. Comparisons of the values of different possible investments are then made. In an international portfolio, currency returns can be an integral component of an investment's total return. Mondrian uses a purchasing power parity approach to assess the value of individual currencies. Purchasing power parity attempts to identify the amount of goods and services that a dollar will buy in the United States, and compares that to the amount of a foreign currency required to buy the same amount of goods and services in another country.

J.P. Morgan manages two separate segments of the Portfolio's assets, utilizing distinct principal investment strategies and portfolio management for each. In managing one segment of the Portfolio's assets, the International Research Enhanced Index Strategy segment ("International REI" segment), J.P. Morgan uses a bottom-up, research driven strategy that seeks to generate risk characteristics that closely match those of the Portfolio's benchmark yet at the same time capitalize on the information advantage created by the firm's proprietary research capabilities to generate outperformance. The strategy is driven by valuation based fundamental analysis, focused on normalized earnings

(continued on next page)

142

PACE Select Advisors Trust

PACE International Equity Investments

Sub-Advisors' comments – continued

Rhodia executives, whom we have a positive view of, will occupy senior positions in the combined company.

On the downside, Shiseido, a Japanese consumer goods company, detracted from results. Its domestic sales have struggled and overseas business has not compensated to the extent that we originally anticipated. We decided to sell out of the position at the beginning of April 2011.

Our portion of the Portfolio used derivatives in the form of currency forwards and futures. Derivatives are only used for the efficient management of cash flow and to reduce currency deviations versus the benchmark, where practical, for the purposes of risk management. Derivatives are not used as a source of generating incremental performance (alpha). Exchange traded equity futures can be used to gain or reduce exposure to a market quickly and cheaply and, as such, are used by us for the efficient management of cash flows, subject to regulatory guidelines.

JPMorgan (EAFE Opportunities)

For the period from November 8, 2010, when we began managing a portion of the Portfolio, through July 31, 2011, we outperformed the benchmark. At the regional level, Japan and Canada contributed to performance, while our emerging markets equities and Pacific Rim exposures detracted from results. Sector-wise, stock selection in basic industries and utilities added value, while health care, banks and finance hurt performance.

At the stock level, First Quantum Minerals Ltd., a Canadian mining company, was the largest contributor for the period. The stock has performed well due to continued strength in commodity prices and ongoing progress in terms of the company's own projects. Despite losing its rights to its operations in the Congo, we feel that the company remains one of the most exciting mid-cap mining stocks, possessing a huge pipeline of near-term development prospects and a substantial net cash position. Additionally, First Quantum Minerals has four development projects underway and, despite plans to spend $3.6 billion over the next four years, it does not anticipate that it will need to resort to debt financing.

On the downside, Huabao International Holdings Ltd., a Chinese maker of flavorings and fragrances, detracted from results. Having risen sharply in 2010, the stock pulled back in early 2011. Part of that decline can be attributed to a general sluggishness in emerging markets stocks. The asset class lagged the developed markets in the first quarter of 2011, as policy makers throughout much of the emerging market world continue to tighten in a bid to preempt inflationary pressures. In addition, producers of flavors and fragrances faced a number of headwinds in the form of higher input prices and an expected slowdown in sales growth. Strong pricing power, however, provides Huabao with some degree of protection from these headwinds.

Our portion of the Portfolio used derivatives in the form of currency forwards and futures. Derivatives are only used for the efficient management of cash flow and to reduce currency deviations versus the benchmark, where

Investment process (concluded)

and earnings growth. The J.P. Morgan team seeks to maintain regional weights and sector/industry weights close to those of the benchmark. Stock selection is the focus, being the expected primary source of added value.

In managing the second segment of the Portfolio's assets, the Europe, Australasia, and Far East Opportunities Strategy segment ("EAFE Opportunities" segment), J.P. Morgan uses an active equity strategy, which represents a partnership between portfolio management and the firm's proprietary network of analysts. J.P. Morgan applies a uniform valuation methodology across regions and sectors, and analysts conduct thorough analysis with a particular emphasis on a company's normalized (or mid-cycle) earnings and their intermediate growth rate. J.P. Morgan typically focuses on the most attractive companies, within a sector, that possess a catalyst for share price appreciation in an effort to build a portfolio where stock selection is the primary source of added value.

143

PACE Select Advisors Trust

PACE International Equity Investments

Sub-Advisors' comments – concluded

practical, for the purposes of risk management. Derivatives are not used as a source of generating incremental performance (alpha). Exchange traded equity futures can be used to gain or reduce exposure to a market quickly and cheaply and, as such, are used by us for the efficient management of cash flows, subject to regulatory guidelines.

Mondrian

Our portion of the Portfolio performed largely in line with the benchmark during the reporting period. The overall impact of country allocation was neutral to performance over the fiscal year. In Europe, returns were supported by our overweight position in France. Having no exposure to Greece was also rewarded, as its market sold off sharply during the reporting period. These positive impacts were partially offset by an underweight to the strongly performing German market. In the Asia Pacific region, Japan was the worst performing equity market in the benchmark. Its weak performance in 2010 was compounded by the natural disaster that devastated north-east Japan in March 2011. Our underweight position in Japan was positive for returns, as was stock selection within the country. We also benefited strongly from our non-benchmark position in Taiwan, through Taiwan Semiconductor Manufacturing Co.

Overall, stock selection added to performance over the period. In Europe, stock selection in Spain and the UK was positive for returns, but this was more than offset by weak stock selection in Germany, France and Italy. Within the Asian region, stock selection was strong in Japan and Singapore. In terms of sector positioning, overweight positions in the health care, energy and telecommunications sectors, and an underweight in the financial sector were positive for returns. This was offset by the underweight positions in the more cyclical sectors, such as materials, consumer discretionary and industrials.

During the reporting period, non-US dollar currencies appreciated against the US dollar, adding to international equity returns for US dollar-based investors. In particular, the Swiss franc appreciated substantially against the US dollar. In Asia, currencies were similarly strong with the Australian and New Zealand dollars rising sharply against the US dollar. During February 2011, we initiated a partial hedge of our Australian dollar exposure. Additionally, in June 2011, we initiated a hedge of our Swiss franc exposure. This hedging is undertaken using three month forward currency contracts. We have chosen to hedge these currencies as our analysis shows that these are significantly overvalued and we wish to protect the value of the underlying investment in these markets.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social, and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. These risks are greater for investments in emerging market issuers than for issuers in more developed countries.

144

PACE Select Advisors Trust

PACE International Equity Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE International Equity Investments Class P shares versus the MSCI EAFE Index (net) over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. 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 illustration purposes only.

145

PACE Select Advisors Trust

PACE International Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		16.37	%		(0.68	)%		4.20	%
maximum sales charge	Class B2		15.81	%		(1.53	)%		3.59	%6
or PACE Select	Class C3		15.57	%		(1.50	)%		3.35	%
program fee	Class Y4		16.65	%		(0.34	)%		4.59	%
	Class P5		16.79	%		(0.42	)%		4.48	%
After deducting	Class A1		9.99	%		(1.80	)%		3.62	%
maximum sales charge	Class B2		10.81	%		(1.84	)%		3.59	%6
or PACE Select	Class C3		14.57	%		(1.50	)%		3.35	%
program fee	Class P5		14.48	%		(2.40	)%		2.41	%
MSCI EAFE Index (net)7			17.17	%		0.95	%		5.69	%
Lipper International Large-Cap Core Funds median			16.77	%		0.82	%		4.94	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 23.76%; 5-year period, (1.22)%; 10-year period, 3.48%; Class B—1-year period, 25.07%; 5-year period, (1.32)%; 10-year period, 3.45%; Class C—1-year period, 28.92%; 5-year period, (0.92)%; 10-year period, 3.20%; Class Y—1-year period, 31.30%; 5-year period, 0.25%; 10-year period, 4.44%; Class P—1-year period, 28.67%; 5-year period, (1.83)%; 10-year period, 2.27%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.43% and 1.43%; Class B—2.59% and 2.30%; Class C—2.26% and 2.26%; Class Y—1.10% and 1.10%; and Class P—1.18% and 1.18%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.55%; Class B—2.30%; Class C—2.30%; Class Y—1.30%; and Class P—1.30%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select  program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The MSCI EAFE Index (net) is an index of stocks from 22 countries designed to measure the investment returns of developed economies outside of North America. Dividends are reinvested after the deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. The Index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

146

PACE Select Advisors Trust

PACE International Equity Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	908.6
Number of holdings		293
Portfolio composition1	07/31/11
Common stocks, preferred stocks and rights		94.8	%
ADRs and GDRs		2.9
Futures and forward foreign currency contracts		0.1
Cash equivalents and other assets less liabilities		2.2
Total		100.0	%
Regional allocation (equity investments)1	07/31/11
Europe and European territories		64.8	%
Asia		26.6
Oceania		4.6
The Americas		0.9
Russia		0.5
Africa		0.3
Total		97.7	%

Top five countries (equity investments)1	07/31/11
United Kingdom		21.7	%
Japan		19.8
France		10.9
Germany		8.3
Switzerland		6.9
Total		67.6	%
Top five sectors1	07/31/11
Financials		19.4	%
Consumer discretionary		12.2
Health care		11.0
Consumer staples		10.7
Industrials		10.4
Total		63.7	%

Top ten equity holdings1	07/31/11
Sanofi SA		2.3	%
Novartis AG		2.2
Royal Dutch Shell PLC, A Shares, Netherlands Exchange		1.6
GlaxoSmithKline PLC		1.6
Vodafone Group PLC		1.6
ING Groep N.V.		1.4
Compass Group PLC		1.3
BG Group PLC		1.2
BP PLC		1.1
Total SA		1.1
Total		15.4	%

For a listing of defined portfolio acronyms that are used throughout the Portfolio statistics, please refer to page 227.

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

147

PACE Select Advisors Trust

PACE International Equity Investments

Industry diversification—(unaudited)

As a percentage of net assets as of July 31, 2011

Common stocks

Aerospace & defense	0.68	%
Airlines	0.06
Auto components	1.18
Automobiles	2.56
Beverages	1.92
Biotechnology	0.01
Building products	0.94
Capital markets	1.30
Chemicals	2.47
Commercial banks	9.31
Commercial services & supplies	0.20
Communications equipment	0.41
Computers & peripherals	0.85
Construction & engineering	0.52
Construction materials	0.16
Containers & packaging	0.49
Distributors	0.07
Diversified consumer services	0.08
Diversified financial services	1.94
Diversified telecommunication services	4.76
Electric utilities	1.42
Electrical equipment	2.48
Electronic equipment, instruments & components	0.76
Energy equipment & services	1.05
Food & staples retailing	3.50
Food products	2.22
Gas utilities	0.66
Health care equipment & supplies	0.26
Health care providers & services	0.39
Hotels, restaurants & leisure	2.59
Household durables	1.17
Independent power producers & energy traders	0.05
Industrial conglomerates	1.54
Insurance	5.01
IT services	0.13
Machinery	1.11

Common stocks—(concluded)

Marine	0.05	%
Media	2.07
Metals & mining	3.50
Multiline retail	0.43
Multi-utilities	1.43
Office electronics	0.97
Oil, gas & consumable fuels	8.87
Paper & forest products	0.31
Personal products	1.27
Pharmaceuticals	10.38
Professional services	0.82
Real estate investment trusts	0.19
Real estate management & development	1.61
Road & rail	0.32
Semiconductors & semiconductor equipment	1.75
Software	0.61
Specialty retail	0.16
Textiles, apparel & luxury goods	1.49
Tobacco	1.15
Trading companies & distributors	1.28
Transportation infrastructure	0.45
Wireless telecommunication services	3.32
Total common stocks	96.68

Preferred stocks

Automobiles	0.44
Household products	0.58
Total preferred stocks	1.02

Rights

Electric utilities	0.02
Repurchase agreement	1.64
Investment of cash collateral from securities loaned	2.66
Liabilities in excess of other assets	(2.02	)
Net assets	100.00	%

148

PACE Select Advisors Trust

PACE International Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—96.68%
Australia—4.58%
AGL Energy Ltd.		54,282	$	845,615
Amcor Ltd.		579,437		4,482,406
AMP Ltd.		822,705		4,115,701
Australia & New Zealand Banking Group Ltd.		62,183		1,420,537
BHP Billiton Ltd.		53,361		2,440,976
Commonwealth Bank of Australia		15,510		838,327
Dexus Property Group		590,026		560,172
Incitec Pivot Ltd.		689,243		2,992,021
Macquarie Group Ltd.		29,264		884,972
National Australia Bank Ltd.		47,955		1,262,129
Newcrest Mining Ltd.		82,096		3,562,041
QBE Insurance Group Ltd.		333,516		6,000,543
Rio Tinto Ltd.		16,260		1,424,409
Stockland		198,877		665,377
Telstra Corp. Ltd.		1,880,688		6,173,957
Treasury Wine Estates Ltd.1,*		49,357		186,151
Wesfarmers Ltd.		32,499		1,045,397
Westfield Group		61,013		532,898
Westpac Banking Corp.		68,263		1,528,488
Woodside Petroleum Ltd.		15,695		661,407
Total Australia common stocks				41,623,524
Austria—0.15%
Erste Group Bank AG		20,777		990,566
Intercell AG*		28,000		112,758
Palfinger AG		8,438		276,874
Total Austria common stocks				1,380,198
Belgium—0.73%
Ageas STRIP VVPR2,*		151,262		217
Anheuser-Busch InBev N.V.		7,817		450,535
KBC GROEP N.V.		57,403		2,017,197
Nyrstar*		54,019		714,804
Solvay SA		22,911		3,447,311
Total Belgium common stocks				6,630,064
Bermuda—0.42%
Huabao International Holdings Ltd.		446,000		376,643
Jardine Matheson Holdings Ltd.1		60,000		3,439,264
Total Bermuda common stocks				3,815,907
Brazil—0.51%
Tim Participacoes SA, ADR		92,200		4,613,688
Canada—0.40%
First Quantum Minerals Ltd.		15,793		2,189,482
Kinross Gold Corp.		90,338		1,474,983
Total Canada common stocks				3,664,465
Cayman Islands—0.50%
China Resources Land Ltd.		562,000		1,106,868
Hengan International Group Co. Ltd.		118,500		1,031,728
Mindray Medical International Ltd., ADR1		88,100		2,385,748
Total Cayman Islands common stocks				4,524,344

	Number of shares		Value
Common stocks—(Continued)
Denmark—0.36%
Carlsberg A/S, Class B		20,448	$	2,010,661
Danske Bank A/S*		29,746		575,863
Novo-Nordisk A/S, Class B		5,843		715,471
Total Denmark common stocks				3,301,995
Finland—0.54%
Nokia Oyj		62,388		361,023
Nokian Renkaat Oyj		12,236		573,230
Outokumpu Oyj1		40,656		432,708
Sampo Oyj, A Shares		31,406		954,973
Stora Enso Oyj, R Shares		163,926		1,406,021
UPM-Kymmene Oyj		77,419		1,207,400
Total Finland common stocks				4,935,355
France—10.92%
Air Liquide SA		23,050		3,158,752
Alcatel-Lucent1,*		66,020		265,963
Alstom SA		12,470		654,275
Atos Origin SA		14,901		818,647
BNP Paribas		131,787		8,520,037
Bouygues SA		22,403		844,212
Carrefour SA		146,474		4,299,199
Cie de Saint-Gobain		64,747		3,728,248
France Telecom SA		374,622		7,736,837
GDF Suez, STRIP VVPR2,*		23,226		33
Imerys SA		8,236		564,127
L'Oreal SA		27,123		3,253,454
Lafarge SA1		12,803		683,249
Pernod Ricard SA		23,685		2,339,893
PPR		21,288		3,921,775
Safran SA		79,951		3,308,561
Sanofi SA1		267,002		20,726,881
Schneider Electric SA		61,399		8,847,907
Societe Generale SA		50,788		2,505,891
Sodexo		31,941		2,435,772
Suez Environnement Co.		121,689		2,250,586
Technip SA		40,449		4,408,932
Total SA		186,687		10,062,404
Vinci SA		67,390		3,893,752
Total France common stocks				99,229,387
Germany—7.25%
Adidas AG		85,744		6,371,337
Aixtron AG1		109,184		2,949,238
Allianz SE		24,742		3,235,333
BASF SE		20,989		1,905,408
Bayer AG		73,871		5,934,533
Bayerische Motoren Werke (BMW) AG		14,908		1,494,764
Brenntag AG		7,130		727,219
Commerzbank AG*		163,869		622,479
Continental AG*		8,045		803,121
Daimler AG		106,624		7,757,455
Deutsche Bank AG		12,480		687,886
Deutsche Boerse AG*		37,790		2,789,882
Deutsche Telekom AG		465,122		7,243,409

149

PACE Select Advisors Trust

PACE International Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Germany—(Concluded)
E.ON AG		57,588	$	1,589,647
Fresenius Medical Care AG & Co. KGaA		45,800		3,512,849
Hamburger Hafen und Logistik AG (HHLA)1		13,299		530,536
HeidelbergCement AG		3,408		187,522
Infineon Technologies AG		147,676		1,481,458
Lanxess AG		9,157		738,464
RWE AG		125,381		6,580,038
SAP AG		6,715		420,892
Siemens AG		64,350		8,260,036
Total Germany common stocks				65,823,506
Guernsey—0.05%
Resolution Ltd.		101,431		457,692
Hong Kong—2.32%
AIA Group Ltd.*		1,161,200		4,259,172
China Merchants Holdings International Co. Ltd.		908,000		3,216,945
China Overseas Land & Investment Ltd.		708,000		1,596,988
Hang Lung Properties Ltd.		430,000		1,594,408
Hang Seng Bank Ltd.		30,300		475,649
Henderson Land Development Co. Ltd.		527,500		3,336,461
Hutchison Whampoa Ltd.		98,000		1,139,938
SJM Holdings Ltd.		1,638,700		4,143,665
Sun Hung Kai Properties Ltd.		84,000		1,275,394
Total Hong Kong common stocks				21,038,620
Indonesia—0.14%
PT Perusahaan Gas Negara		2,743,500		1,280,260
Ireland—0.07%
Paddy Power PLC		13,213		644,216
Isle of Man—0.08%
Genting Singapore PLC*		473,000		744,089
Israel—1.20%
Check Point Software Technologies Ltd.*		51,200		2,951,680
Teva Pharmaceutical Industries Ltd., ADR		169,775		7,918,306
Total Israel common stocks				10,869,986
Italy—2.30%
Enel SpA		625,160		3,589,163
ENI SpA		309,716		6,715,080
Intesa Sanpaolo SpA EURO 52		2,564,835		5,921,392
Snam Rete Gas SpA		649,987		3,752,684
Telecom Italia SpA		171,930		215,811
UniCredito Italiano SpA		404,397		718,436
Total Italy common stocks				20,912,566
Japan—19.81%
Ajinomoto Co., Inc.		55,000		680,932
Amada Co. Ltd.		111,000		862,546
Asahi Group Holdings Ltd.		38,200		808,817
Astellas Pharma, Inc.		228,600		8,888,469
Benesse Corp.		17,200		744,775

	Number of shares		Value
Common stocks—(Continued)
Japan—(Continued)
Bridgestone Corp.		227,600	$	5,669,577
Canon, Inc.		180,900		8,797,286
Capcom Co. Ltd.1		38,000		994,587
Dai-ichi Life Insurance Co. Ltd.		3,615		5,114,306
Daito Trust Construction Co. Ltd.		7,900		760,409
Daiwa House Industry Co. Ltd.		56,000		753,825
DIC Corp.		192,000		448,198
East Japan Railway Co.		45,400		2,852,015
Electric Power Development Co. Ltd.1		17,700		466,613
FUJIFILM Holdings Corp.		106,500		3,223,587
Fujitsu Ltd.		275,900		1,625,326
Hisamitsu Pharmaceutical Co., Inc.		11,400		497,684
Hokuhoku Financial Group, Inc.		182,000		380,338
Hoya Corp.		46,100		1,121,381
Inpex Corp.		580		4,502,091
Japan Tobacco, Inc.		901		4,101,959
JFE Holdings, Inc.		51,500		1,402,918
JS Group Corp.		53,200		1,333,295
JX Holdings, Inc.		488,100		3,525,627
Kao Corp.		256,300		7,253,753
KDDI Corp.		756		5,624,964
Kirin Holdings Co. Ltd.		345,900		5,090,194
Komatsu Ltd.		18,300		570,971
Minebea Co. Ltd.		95,000		484,142
Mitsubishi Electric Corp.		305,900		3,612,085
Mitsubishi Heavy Industries Ltd.		406,000		1,896,061
Mitsubishi Logistics Corp.		28,000		322,743
Mitsubishi UFJ Financial Group, Inc. (MUFG)		986,100		5,012,994
Mitsui & Co. Ltd.		425,600		8,030,774
Mitsui Fudosan Co. Ltd.		193,700		3,690,373
Nintendo Co. Ltd.		1,800		287,008
Nippon Express Co. Ltd.		300		1,324
Nippon Sheet Glass Co. Ltd.1		1,087,300		3,470,636
Nippon Telegraph & Telephone Corp. (NTT)		60,000		2,964,349
Nissan Motor Co. Ltd.		350,700		3,752,654
Nitto Denko Corp.		17,000		819,873
NTT DoCoMo, Inc.		2,699		4,957,091
ORIX Corp.1		20,530		2,220,669
Otsuka Corp.		5,700		378,744
Otsuka Holdings Co. Ltd.		17,800		491,469
Sapporo Hokuyo Holdings, Inc.		197,800		854,767
Seiko Epson Corp.		44,000		750,675
Sekisui House Ltd.1		360,200		3,445,050
Seven & I Holdings Co. Ltd.		303,700		8,650,095
Shin-Etsu Chemical Co. Ltd.		23,600		1,275,026
Softbank Corp.1		23,500		917,105
Sony Corp.		130,200		3,287,356
Sumitomo Corp.		119,600		1,693,720
Sumitomo Heavy Industries Ltd.		52,000		366,490
Sumitomo Metal Mining Co. Ltd.		38,000		673,643
Sumitomo Mitsui Financial Group, Inc.		100,032		3,157,957
Sumitomo Mitsui Trust Holdings, Inc.		208,000		766,117
Sundrug Co. Ltd.		17,900		576,632

150

PACE Select Advisors Trust

PACE International Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Japan—(Concluded)
Suzuki Motor Corp.		182,000	$	4,227,018
Takashimaya Co. Ltd.		700		5,222
Takeda Pharmaceutical Co. Ltd.		177,900		8,500,260
The Bank of Yokohama Ltd.		689,500		3,383,155
The Nishi-Nippon City Bank Ltd.		177,000		543,544
Tokio Marine Holdings, Inc.		200,700		5,922,061
Tokyo Gas Co. Ltd.		193,000		920,710
Toshiba Corp.		213,000		1,110,226
Toyota Motor Corp.		146,607		6,000,277
Trend Micro, Inc.		29,100		912,974
Ube Industries Ltd.		286,000		971,979
Yamada Denki Co. Ltd.		6,870		548,096
Total Japan common stocks				179,949,587
Jersey—1.67%
Experian PLC		475,036		6,227,971
Glencore International PLC*		105,606		818,991
Petrofac Ltd.		209,685		4,789,212
Shire Ltd.		96,616		3,345,990
Total Jersey common stocks				15,182,164
Luxembourg—0.73%
ArcelorMittal		28,404		882,865
SES SA		210,725		5,696,091
Total Luxembourg common stocks				6,578,956
Netherlands—4.79%
ASML Holding N.V.		30,853		1,096,941
European Aeronautic Defense and Space Co. N.V.		60,515		2,090,383
Gemalto N.V.1		88,798		4,221,204
Heineken N.V.		87,800		5,188,934
ING Groep N.V.*		1,179,237		12,615,604
Koninklijke Ahold N.V.		466,179		6,201,691
Koninklijke (Royal) KPN N.V.1		190,212		2,715,133
Reed Elsevier N.V.		338,393		4,500,992
STMicroelectronics N.V.		22,495		176,533
Unilever N.V.		143,582		4,668,753
X5 Retail Group N.V., GDR3,*		1,000		41,274
Total Netherlands common stocks				43,517,442
Norway—0.79%
DnB NOR ASA		420,619		6,106,062
Norske Skogindustrier ASA*		157,762		233,722
Petroleum Geo-Services ASA*		22,397		361,903
Telenor ASA		27,172		453,064
Total Norway common stocks				7,154,751
Portugal—0.12%
Jeronimo Martins, SGPS SA		56,458		1,102,089
Russia—0.45%
Gazprom OAO, ADR*		277,410		4,066,831
Singapore—1.88%
CapitaLand Ltd.		212,000		509,002
Oversea-Chinese Banking Corp. Ltd.		567,000		4,672,955

	Number of shares		Value
Common stocks—(Continued)
Singapore—(Concluded)
Singapore Airlines Ltd.1		48,740	$	573,713
Singapore Telecommunications Ltd.1		2,219,320		6,170,160
United Overseas Bank Ltd.		305,420		5,188,855
Total Singapore common stocks				17,114,685
South Africa—0.31%
Harmony Gold Mining Co. Ltd.		210,288		2,851,951
South Korea—0.64%
Samsung Electronics Co. Ltd.		2,660		2,125,982
Samsung Electronics Co. Ltd., GDR3		9,327		3,713,079
Total South Korea common stocks				5,839,061
Spain—2.67%
Banco Bilbao Vizcaya Argentaria SA		244,313		2,555,891
Banco Santander SA1		408,613		4,263,942
Distribuidora Internacional de Alimentacion SA1,*		146,474		620,882
Iberdrola SA		948,575		7,691,751
Industria de Diseno Textil SA (Inditex)		9,636		870,140
Telefonica SA		369,016		8,232,738
Total Spain common stocks				24,235,344
Sweden—1.02%
Atlas Copco AB, A Shares		188,910		4,442,818
Nordea Bank AB		102,214		1,084,130
Tele2 AB, B Shares		27,396		581,642
Telefonaktiebolaget LM Ericsson, B Shares		249,806		3,125,381
Total Sweden common stocks				9,233,971
Switzerland—6.94%
ABB Ltd.*		393,937		9,419,129
Compagnie Financiere Richemont SA, A Shares		99,821		6,419,336
Credit Suisse Group*		242,480		8,729,940
Georg Fischer AG*		967		511,858
Kuehne & Nagel International AG		3,469		481,674
Nestle SA		42,862		2,726,631
Novartis AG		322,142		19,748,133
Roche Holding AG		11,503		2,061,881
SGS SA		638		1,236,469
Syngenta AG*		13,091		4,175,013
Zurich Financial Services AG*		31,847		7,557,985
Total Switzerland common stocks				63,068,049
Taiwan—0.63%
HON HAI Precision Industry Co. Ltd., GDR4		5,809		32,909
HON HAI Precision Industry Co. Ltd., GDR5		233,200		1,317,438
Taiwan Semiconductor Manufacturing Co. Ltd.		707,000		1,765,105
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		212,090		2,621,432
Total Taiwan common stocks				5,736,884

151

PACE Select Advisors Trust

PACE International Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Concluded)
United Kingdom—21.71%
Aegis Group PLC		318,715	$	804,277
Afren PLC*		197,723		452,591
Anglo American PLC		105,401		4,967,074
AstraZeneca PLC		23,950		1,163,697
Barclays PLC		1,036,032		3,774,959
Barratt Developments PLC*		294,229		472,383
BG Group PLC		450,996		10,608,280
BHP Billiton PLC		12,222		459,198
BP PLC		1,351,294		10,158,111
British American Tobacco PLC		137,918		6,356,410
BT Group PLC		222,840		730,309
Burberry Group PLC		30,711		748,929
Cairn Energy PLC*		319,407		1,925,851
Centrica PLC		654,556		3,277,732
Compass Group PLC		1,241,768		11,645,800
Cookson Group PLC		106,157		1,113,052
Domino's Pizza UK & IRL PLC		78,736		646,834
GKN PLC		992,441		3,632,684
GlaxoSmithKline PLC		642,855		14,344,888
HSBC Holdings PLC6		34,266		337,153
HSBC Holdings PLC5		916,671		8,952,950
Inchcape PLC		101,409		644,356
Intercontinental Hotels Group PLC		167,735		3,302,451
ITV PLC*		903,981		1,031,191
J Sainsbury PLC		146,288		726,958
Johnson Matthey PLC		64,089		2,131,208
Lloyds Banking Group PLC*		4,312,579		3,053,266
Man Group PLC		405,963		1,472,756
Meggitt PLC		124,648		790,371
Pearson PLC		351,415		6,738,463
Persimmon PLC		455,130		3,423,766
Petropavlovsk PLC		48,558		631,623
Premier Farnell PLC		364,991		1,159,995
Prudential PLC		698,914		7,856,912
Rio Tinto PLC		88,694		6,191,580
Royal Dutch Shell PLC, A Shares5		74,988		2,732,359
Royal Dutch Shell PLC, A Shares7,*		398,839		14,671,142
Royal Dutch Shell PLC, B Shares5		254,917		9,309,324
SABMiller PLC		37,330		1,393,139
Serco Group PLC		205,636		1,815,367
SIG PLC*		287,098		600,072
Standard Chartered PLC		120,978		3,075,760
Tate & Lyle PLC		397,292		3,955,841
Tesco PLC		1,366,028		8,564,230
The Weir Group PLC		18,976		656,472
Travis Perkins PLC		42,148		606,969
Tullow Oil PLC		58,701		1,176,215
Unilever PLC		255,284		8,156,679
Vodafone Group PLC		4,998,530		14,085,755
Xstrata PLC		34,098		716,454
Total United Kingdom common stocks				197,243,836
Total common stocks (cost—$828,780,437)				878,365,463

	Number of shares		Value
Preferred stocks—1.02%
Germany—1.02%
Henkel AG & Co. KGaA Vorzug		78,785	$	5,319,843
Volkswagen AG		19,914		3,979,195
Total preferred stocks (cost—$7,792,156)				9,299,038
	Number of rights
Rights*—0.02%
Spain—0.02%
Iberdrola SA, expires 08/02/11 (cost—$197,234)		904,020		194,848
	Face amount
Repurchase agreement—1.64%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $73,962 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $10,630,653 US Treasury Bills, zero coupon due 08/04/11 and $4,192,706 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$15,163,480); proceeds: $14,866,012 (cost—$14,866,000)	$	14,866,000		14,866,000
	Number of shares
Investment of cash collateral from securities loaned—2.66%
Money market fund—2.66%
UBS Private Money Market Fund LLC8(cost—$24,172,469)		24,172,469		24,172,469
Total investments (cost—$875,808,296)— 102.02%				926,897,818
Liabilities in excess of other assets—(2.02)%				(18,334,723	)
Net assets—100.00%			$	908,563,095

152

PACE Select Advisors Trust

PACE International Equity Investments

Portfolio of investments—July 31, 2011

Aggregate cost for federal income tax purposes was $885,710,169; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	87,970,349
Gross unrealized depreciation		(46,782,700	)
Net unrealized appreciation	$	41,187,649

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at July 31, 2011.

²  Illiquid securities representing 0.00% of net assets as of July 31, 2011.

³  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 0.41% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁴  Security is traded on the over-the-counter ("OTC") Market.

⁵  Security is traded on the London Exchange.

⁶  Security is traded on the Hong Kong Exchange.

⁷  Security is traded on the Netherlands Exchange.

⁸  The table below details the Portfolio's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	37,141,889	$	536,708,217	$	549,677,637	$	24,172,469	$	18,648

Futures contracts

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
Index futures buy contracts:
	9	AUD	ASX SPI 200 Index Futures	September 2011	$	1,113,635	$	1,081,781	$	(31,854	)
	132	EUR	DJ Euro Stoxx 50 Index Futures	September 2011		5,196,612		5,072,152		(124,460	)
	38	GBP	FTSE 100 Index Futures	September 2011		3,600,313		3,608,196		7,883
	11	JPY	TOPIX Index Futures	September 2011		1,157,696		1,198,471		40,775
					$	11,068,256	$	10,960,600	$	(107,656	)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Barclays Bank PLC	EUR	649,507	USD	932,129	10/12/11	$	443
Barclays Bank PLC	GBP	637,000	USD	1,018,126	10/12/11		(26,693	)
Barclays Bank PLC	USD	3,752,543	SEK	23,641,300	09/21/11		(4,859	)
BNP Paribas SA	EUR	322,167	USD	459,229	09/21/11		(3,156	)
BNP Paribas SA	JPY	68,671,984	USD	848,853	10/12/11		(43,912	)
BNP Paribas SA	USD	16,306,957	AUD	15,588,797	09/21/11		713,335
BNP Paribas SA	USD	3,948,786	CHF	3,323,848	09/21/11		277,536
BNP Paribas SA	USD	3,105,258	HKD	24,156,100	10/12/11		(4,431	)
Citibank N.A.	AUD	181,199	USD	192,315	10/12/11		(4,998	)
Citibank N.A.	USD	535,051	EUR	381,997	09/21/11		13,204
Citibank N.A.	USD	857,231	HKD	6,669,125	09/21/11		(1,262	)
Credit Suisse London Branch	EUR	8,084,240	USD	11,674,774	09/21/11		71,996

153

PACE Select Advisors Trust

PACE International Equity Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(concluded)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Credit Suisse London Branch	USD	1,092,414	JPY	88,719,319	09/21/11	$	60,726
Credit Suisse London Branch	USD	818,201	GBP	510,897	09/21/11		19,970
Credit Suisse London Branch	USD	2,617,681	CHF	2,203,747	10/12/11		185,244
HSBC Bank PLC	EUR	1,060,895	USD	1,510,189	09/21/11		(12,443	)
HSBC Bank PLC	GBP	5,369,669	USD	8,736,859	09/21/11		(72,555	)
HSBC Bank PLC	HKD	19,195,342	USD	2,467,745	09/21/11		4,062
HSBC Bank PLC	USD	690,368	GBP	423,223	09/21/11		3,966
HSBC Bank PLC	USD	3,703,531	JPY	296,858,782	09/21/11		154,926
HSBC Bank PLC	USD	2,388,088	SGD	2,939,671	09/21/11		53,559
Merrill Lynch International Bank Ltd.	EUR	158,921	USD	226,782	10/12/11		(1,182	)
Royal Bank of Canada	EUR	130,000	USD	183,758	09/21/11		(2,823	)
Royal Bank of Canada	GBP	1,537,872	USD	2,454,202	10/12/11		(68,243	)
Royal Bank of Scotland PLC	USD	1,680,181	SEK	10,721,636	10/12/11		17,478
State Street Bank & Trust Co.	AUD	11,953,500	USD	13,042,703	10/31/11		57,364
State Street Bank & Trust Co.	CHF	3,818,500	USD	4,538,647	09/30/11		(317,251	)
Westpac Banking Corp.	CAD	2,995,610	USD	3,068,942	09/21/11		(62,908	)
Westpac Banking Corp.	EUR	458,300	HKD	5,048,605	09/21/11		(9,790	)
Westpac Banking Corp.	JPY	68,747,656	EUR	586,428	09/21/11		(51,894	)
Westpac Banking Corp.	USD	1,277,885	EUR	903,120	09/21/11		18,304
						$	963,713

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Common stocks	$	47,301,436	$	831,064,027		$	—	$	878,365,463
Preferred stocks		—		9,299,038			—		9,299,038
Rights		—		194,848			—		194,848
Repurchase agreement		—		14,866,000			—		14,866,000
Investment of cash collateral from securities loaned		—		24,172,469			—		24,172,469
Futures contracts, net		—		(107,656	)		—		(107,656	)
Forward foreign currency contracts, net		—		963,713			—		963,713
Total	$	47,301,436	$	880,452,439		$	—	$	927,753,875

See accompanying notes to financial statements.
154

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 14.04%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 11.78%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the MSCI Emerging Markets Index (the "benchmark") returned 17.79%, and the Lipper Emerging Markets Funds category posted a median return of 15.65%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 160. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisors' comments¹

Mondrian

Our portion of the Portfolio underperformed the benchmark during the reporting period. Market and currency selection detracted from performance, primarily due to the impact of our underweight to Korea and an overweight to Turkey. These effects were partially offset by stock selection, particularly in Brazil and Taiwan. From a sector perspective, good positioning in the consumer staples and stock selection in the energy and information technology sectors benefited our portion of the Portfolio. However, this was partly offset by the impact of an underweight in materials.

In Asia, we benefited from our overweights to Thailand and Indonesia and an underweight to India. However, weak performance from our holdings in the Indian financial sector offset these gains. An underweight and poor stock selection in Korea weighed on relative returns, as the market was led higher by the cyclical automobile, chemicals and engineering sectors where we had limited exposure. These sectors recorded strong returns as tentative signs of recovery in the global economy drove demand higher. In addition, the devastating earthquake and tsunami in Japan led to disruption from competing manufacturers. Stock selection in Taiwan was strong as holdings in President Chainstore, Chunghwa Telecom Co. Ltd. and HTC Corp. performed well, leading to the complete sale of HTC during the period as the stock price approached our price objective.

In Latin America, we benefited from good stock selection in Brazil, where a zero weighting in Petrobras and strong

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

PACE Select Advisors Trust – PACE
International Emerging Markets
Equity Investments

Investment Sub-Advisors:

Mondrian Investment Partners Limited ("Mondrian"),

Delaware Management Company ("Delaware") and

Pzena Investment Management, LLC ("Pzena")

William Blair & Company L.L.C.
("William Blair")

Gartmore Global Partners ("Gartmore"), until March 22, 2011

Portfolio Managers:

Mondrian: Robert Akester, Ginny Chong, and Gregory Halton

Delaware: Liu-Er Chen

Pzena: Allison Fisch, Caroline Cai and John P. Goetz

William Blair: Todd M. McClone and Jeffrey A. Urbina

Gartmore: Christopher Palmer

Objective:

Capital appreciation

Investment process:

Mondrian conducts research on a global basis in an effort to identify securities that have the potential for capital appreciation over a market cycle. The center of its research effort is a value-oriented dividend discount methodology toward individual securities and market analysis that attempts to identify value across country boundaries. This approach focuses on future anticipated dividends, and discounts the value of those dividends back to what they would be worth if they were being paid today. Comparisons of the values of

(continued on next page)

155

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Sub-Advisors' comments – continued

performance from holdings in the utility sector, port operator Santos Brasil Participacoes, SA, toll road operator Companhia de Concessoes Rodoviarias (CCR) and global brewer Companhia de Bebidas das Americas (AmBev) all added to relative returns.

In Europe, we were negatively impacted by an overweight to Turkey and underweight to Russia. This was offset by stock selection, as the energy companies LUKOIL, ADR and Tupras-Turkiye Petrol Rafinerileri A.S. and the Turkish auto manufacturer Tofas Turk Otomobil Fabrikasi A.S. all outperformed. In Africa, the strong performance of South African stocks Sasol Ltd. and Tiger Brands Ltd. was offset by weak performance of the Egyptian telecommunication stocks MobiNil and Orascom Telecom. We sold Orascom Telecom during the fiscal year to pursue other opportunities.

Delaware

For the period from November 4, 2010, when we began managing a portion of the Portfolio, through July 31, 2011, we underperformed the benchmark. Information technology was a key detractor from performance. Yahoo!, Inc. was notably weak due to negative sentiment surrounding its investment in Alibaba Group, a Chinese Internet company. An ownership dispute concerning one of Alibaba's subsidiaries, Alipay, raised questions about the value of this asset to Yahoo. We believe that Yahoo remains significantly undervalued and provides attractive exposure to the growing Chinese Internet market. MEMC Electronic Materials, Inc. also underperformed, as oversupply in the solar energy sector exerted downward pricing pressure throughout the supply chain. Our underweight in the consumer discretionary sector also detracted from relative results. In the materials sector, soft pricing trends and concerns about slowing global growth negatively impacted the performance of our holding in cement company, Cemex SAB de C.V., ADR, as well as pulp company, Fibria Cellulose. We continue to believe that these companies have high asset quality and trade at significant discounts.

Our sector overweight in consumer staples contributed positively to performance. In particular, shares of Lotte Chilsung Beverage Co. Ltd., a Korean beverage firm, rose due to strong performance in its core business and positive news regarding its non-core investments. This outperformance was somewhat offset by our investment in Hypermarcas SA, a Brazilian consumer products company, which declined after reporting disappointing results. Other sources of positive performance included telecommunications and financials. In telecommunications, Brazilian mobile operator Vivo performed well as the market took a favorable view on the company's merger with Telecomunicacoes de Sao Paulo SA, ADR. In

Investment process (continued)

different possible investments are then made. In an international portfolio, currency returns can be an integral component of an investment's total return. Mondrian uses a purchasing power parity approach to assess the value of individual currencies. Purchasing power parity attempts to identify the amount of goods and services that a dollar will buy in the United States, and compares that to the amount of a foreign currency required to buy the same amount of goods and services in another country.

Delaware selects growth-oriented and value-oriented investments on the basis of the investment's discount to its intrinsic value. When selecting growth-oriented securities, Delaware typically seeks high growth caused by long-term economic factors, which may include demographics, economic deregulation, and technological developments. When selecting value-oriented securities, Delaware typically seeks lower valuations caused by cyclical economic factors or temporary changes in business operations. Strong management and sustainable business franchise are key considerations in selecting both growth-oriented and value-oriented securities.

Pzena follows a disciplined investment process to implement its value philosophy. Pzena focuses exclusively on companies that are underperforming their historically demonstrated earnings power, and applies intensive fundamental research to these companies in an effort to determine whether the causes of the earnings shortfall are temporary or permanent. Pzena looks for companies where, in its opinion: (1) the current market price is low compared to the company's normalized earnings power; (2) current earnings are below historic norms; (3) the problems are temporary;

(continued on next page)

156

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Sub-Advisors' comments – continued

financials, an overall underweight position worked in our favor. Our investments in UEM Land Holdings Bhd, Sberbank and Hong Leong Bank Berhad also contributed positively to relative performance.

We remain disciplined in implementing our investment philosophy and process regardless of short-term market fluctuations. We continue to focus on companies that we believe have sustainable franchises that are trading at significant discounts to our conservative intrinsic value estimates. Currently, our largest sector overweights are in the more traditionally defensive consumer staples and telecommunications sectors. We also have a sector overweight in information technology. We remain underweight in financials, particularly in China, where asset quality remains a concern.

Pzena

For the period from November 4, 2010, when we began managing a portion of the Portfolio, through July 31, 2011, we underperformed the benchmark. Stock selection within the consumer staples and materials sectors were largely responsible for the underperformance. In terms of individual names, Usinas Siderurgicas de Minas Gerais (Usiminas), a Brazilian steel maker, and China Dongxiang Group Co. (a Chinese apparel design and marketing company) were the largest detractors. Usiminas detracted from results, as its margins have been negatively affected by a strong Brazilian currency, increased competition from imports and raw material inflation. We believe that Usiminas will work through these challenges and its share price seems to us to be discounting the company's problems fully. China Dongxiang's share price suffered after the company announced an extraordinary provision related to the reclaiming of unsold inventory. The company also stated that its first half expected results were too optimistic. While this news was unwelcome and clearly represents a near-term headwind for the company, we see it as part of the maturing process of the industry and of China Dongxiang. The company's balance sheet remains extremely strong in a net cash position, and the company is attractively valued in our view. Therefore, we continue to hold these names.

On the positive side, stock selection in utilities and energy were the largest relative contributors. The top contributor, despite the volatility of its share price, was Gazprom, ADR. At the beginning of the period, its share price saw significant appreciation, as energy prices rose and instability in the Middle East and North Africa spread.

While macro concerns continue to dominate both the headlines and investors' thinking, we are finding attractively valued companies with strong balance sheets to include in our portion of the Portfolio.

Investment process (concluded)

(4) management has a viable strategy to generate earnings recovery; and/or (5) there is meaningful downside protection in case the earnings recovery does not materialize.

William Blair invests in a portfolio of mid cap and large cap equity securities issued by companies in emerging markets worldwide, according to a quality growth philosophy. William Blair's primary focus is on identifying such companies whose growth characteristics (rate and durability) are underestimated by the market and supported by quality management and strong competitive positioning. After screening the universe of emerging country issuers for certain quality, growth and liquidity characteristics to create a prospective list of investible securities, William Blair undertakes detailed fundamental analysis of these companies, focusing attention on areas where short- to intermediate-term earnings trends and overall operating performance are improving or are strong. Key considerations are the sustainability of a company's competitive advantage relative to peers, its industry and market conditions, a sound financial structure and high reinvestment rates that combine to create favorable conditions for prospective growth.

Gartmore (until March 22, 2011) seeks to identify companies where it believes the market has underestimated the prospects for earnings potential. Gartmore employs a stringent analysis of strategic factors, industry dynamics and the assessment of individual company franchises. It focuses on bottom-up stock picking within a risk-controlled environment.

157

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Sub-Advisors' comments – concluded

William Blair

For the period from March 23, 2011, when we began managing a portion of the Portfolio, through July 31, 2011, we outperformed the benchmark. This was due to strong stock selection in consumer discretionary, industrials and materials sectors, along with a significant focus in consumer-related stocks. Our consumer discretionary stock selection was bolstered by strong results and overweights to auto-related companies, coupled with positive performance in specialty retail. Samsung Engineering Co. Ltd., a Korean engineering and construction firm, drove our industrials results as it benefited from strong order flow. United Tractors also performed well due to increased heavy equipment sales guidance. Finally, materials stock selection was additive, due to good results in Asia, with holdings such as Anhui Conch Cement Co., a Chinese cement company, boosting our returns. Stock selection was strong across regions, with particular value added in emerging Asia, as well as in Europe, the Middle East and Africa (EMEA).

Detracting from performance was poor stock selection in the energy, financials and information technology sectors. From a regional perspective, our relative performance was hindered by stock selection and an overweight exposure to Latin America. America Movil, a Mexico-based wireless and fixed telecommunications services company, struggled during the period as it posted weak results.

Gartmore Global Partners (Gartmore Global Partners was acquired by Henderson Global Investors in early April. For purposes of this commentary, the Sub-Adviser will be referenced as Gartmore.)

For the period from August 1, 2010 through March 22, 2011, when we managed a portion of the Portfolio, it outperformed the benchmark. Stock selection in Russia, Brazil and China significantly contributed to returns, as did our underweight stance in South Korea. Conversely, stock selection in Taiwan and Thailand detracted from performance. From a sector perspective, our holdings in materials and consumer staples added the most value, while an underweight in energy detracted from performance.

Individual stocks that made significant contributions to performance included Novatek, Hyundai Heavy, Melfas and Wynn Macau. The Russian natural gas producer Novatek performed strongly, helped by higher energy prices and encouraging earnings. Hyundai Heavy, the world's largest shipbuilder, added value, after Hapag-Lloyd AG increased a container ship order by roughly $754 million. Shares of touch-screen maker Melfas rose as it delivered exemplary annual results in 2010, with profits three times higher than those in 2009. Wynn Macau, the Hong Kong-listed casino unit of Wynn Resorts Ltd., performed well due to rapid profit growth in the third quarter of 2010 and improved prospects going forward.

Stocks that detracted from performance included Gazprom, ADR, Mphasis, Andhra Bank and Pruska Real Estate. Our underweight position in Russian energy giant Gazprom detracted from relative returns, although our holding in gas producer Novatek offset this to some degree. Our position in Mphasis, which provides outsourcing to Hewlett-Packard, detracted following the release of weak first quarter 2011 sales results. Our out-of-benchmark position in Andhra Bank detracted following a strong run in 2010 as investors took profits. Finally, rising interest rates and the possibility of further attempts by the Bank of Thailand to curb property lending negatively impacted homebuilder Pruska Real Estate and we sold the stock from our portion of the Portfolio.

Special considerations

The Portfolio may be appropriate for long-term investors seeking capital appreciation who are able to withstand short-term fluctuations in the equity markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the Portfolio invests. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social, and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. These risks are greater for investments in emerging market issuers than for issuers in more developed countries.

158

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE International Emerging Markets Equity Investments Class P shares versus the MSCI Emerging Markets Index over the 10 years ended July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. 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 illustration purposes only.

159

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			10 years
Before deducting	Class A1		14.01	%		8.75	%		13.36	%
maximum sales charge	Class B2		13.07	%		7.85	%		12.78	%6
or PACE Select	Class C3		13.19	%		7.94	%		12.48	%
program fee	Class Y4		14.22	%		9.13	%		13.76	%
	Class P5		14.04	%		8.79	%		13.47	%
After deducting	Class A1		7.73	%		7.52	%		12.72	%
maximum sales charge	Class B2		8.07	%		7.63	%		12.78	%6
or PACE Select	Class C3		12.19	%		7.94	%		12.48	%
program fee	Class P5		11.78	%		6.64	%		11.22	%
MSCI Emerging Markets Index7			17.79	%		11.34	%		17.26	%
Lipper Emerging Markets Funds median			15.65	%		9.09	%		15.88	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 20.62%; 5-year period, 8.13%; 10-year period, 11.83%; Class B—1-year period, 21.63%; 5-year period, 8.24%; 10-year period, 11.88%; Class C—1-year period, 25.67%; 5-year period, 8.56%; 10-year period, 11.59%; Class Y—1-year period, 27.92%; 5-year period, 9.74%; 10-year period, 12.86%; Class P—1-year period, 25.14%; 5-year period, 7.23%; 10-year period, 10.34%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.87% and 1.87%; Class B—2.72% and 2.72%; Class C—2.61% and 2.61%; Class Y—1.62% and 1.62%; and Class P—1.85% and 1.85%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—2.15%; Class B—2.90%; Class C—2.90%; Class Y—1.90%; and Class P—1.90%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

²  Maximum contingent deferred sales charge for Class B shares is 5% imposed on redemptions and is reduced to 0% after a maximum of six years. Class B shares bear ongoing 12b-1 service and distribution fees.

³  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total returns presented for the Class C shares shown above.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  Assumes the conversion of Class B to Class A shares at the end of the sixth year.

⁷  The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 21 emerging market countries in Europe, Latin America, and the Pacific Basin. The Index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction  of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

160

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	308.9
Number of holdings		254
Portfolio composition1	07/31/11
Common stocks, preferred stocks and warrants		69.1	%
ADRs, ADSs, GDRs NVDRs and SDRs		29.0
Investment company		1.2
Cash equivalents and other assets less liabilities		0.7
Total		100.0	%
Regional allocation (equity investments)1	07/31/11
Asia		48.5	%
The Americas		25.8
Europe and European territories		11.1
Africa		7.1
Russia		5.6
Total		98.1	%

Top five countries (equity investments)1	07/31/11
Brazil		15.8	%
South Korea		12.4
South Africa		7.1
Taiwan		7.0
China		6.7
Total		49.0	%
Top five sectors1	07/31/11
Financials		22.5	%
Information technology		13.3
Consumer staples		12.2
Energy		11.3
Consumer discretionary		9.4
Total		68.7	%

Top ten equity holdings1	07/31/11
Samsung Electronics Co. Ltd.		2.0	%
Industrial & Commercial Bank of China Ltd.		1.7
Gazprom, ADR		1.6
PT Astra International Tbk		1.4
China Mobile Ltd.		1.3
Sasol Ltd.		1.2
China Construction Bank Corp.		1.2
KT&G Corp.		1.2
LUKOIL, ADR		1.2
Companhia de Bebidas das Americas (AmBev), ADR		1.2
Total		14.0	%

For a listing of defined portfolio acronyms that are used throughout the Portfolio statistics, please refer to page 227.

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

161

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Industry diversification—(unaudited)

As a percentage of net assets as of July 31, 2011

Common stocks

Aerospace & defense	0.24	%
Airlines	0.12
Auto components	0.65
Automobiles	3.02
Beverages	1.29
Building products	0.24
Chemicals	1.47
Commercial banks	16.01
Communications equipment	0.87
Computers & peripherals	0.79
Construction & engineering	1.54
Construction materials	0.80
Consumer finance	0.38
Diversified financial services	1.25
Diversified telecommunication services	2.12
Electric utilities	1.66
Electronic equipment, instruments & components	1.79
Food & staples retailing	2.19
Food products	3.79
Gas utilities	1.28
Health care providers & services	0.14
Hotels, restaurants & leisure	0.84
Household durables	1.03
Household products	0.55
Independent power producers & energy traders	1.31
Industrial conglomerates	0.61
Insurance	1.57
Internet & catalog retail	0.11
Internet software & services	2.24
IT services	2.15
Machinery	1.49
Marine	0.57
Media	1.46
Metals & mining	4.47
Multiline retail	0.47
Oil, gas & consumable fuels	10.38

Common stocks—(Concluded)

Paper & forest products	0.31	%
Personal products	1.87
Real estate management & development	1.33
Road & rail	0.15
Semiconductors & semiconductor equipment	4.85
Specialty retail	0.79
Textiles, apparel & luxury goods	0.79
Tobacco	1.19
Transportation infrastructure	2.14
Water utilities	0.56
Wireless telecommunication services	6.24
Total common stocks	91.11

Preferred stocks

Automobiles	0.20
Beverages	1.18
Commercial banks	1.38
Food & staples retailing	0.17
Independent power producers & energy traders	0.23
Metals & mining	1.54
Oil, gas & consumable fuels	0.88
Semiconductors & semiconductor equipment	0.29
Total preferred stocks	5.87
Investment company	1.22

Warrants

Commercial banks	0.38
Industrial conglomerates	0.31
IT services	0.30
Real estate management & development	0.16
Total warrants	1.15
Repurchase agreement	0.61
Investment of cash collateral from securities loaned	1.12
Liabilities in excess of other assets	(1.08	)
Net assets	100.00	%

162

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—91.11%
Bermuda—2.25%
Bunge Ltd.		18,600	$	1,279,866
China Gas Holdings Ltd.		1,838,000		689,812
Credicorp Ltd.		27,621		2,698,572
Huabao International Holdings Ltd.		415,000		350,464
Pacific Basin Shipping Ltd.		1,914,000		1,053,601
Texwinca Holdings Ltd.		616,000		867,193
Total Bermuda common stocks				6,939,508
Brazil—10.40%
AES Tiete SA		4,400		63,836
All America Latina Logistica (ALL)		65,700		474,475
B2W Companhia Global do Varejo (B2W Varejo)		36,612		341,603
Banco Bradesco SA, ADR		26,700		513,441
Banco do Brasil SA		40,900		693,337
Banco Santander Brasil SA		77,900		731,859
Banco Santander Brasil SA, ADS		87,300		810,144
BR Malls Participacoes SA		107,150		1,247,786
Braskem SA, ADR		27,800		674,706
BRF—Brasil Foods SA, ADR		39,500		762,745
Centrais Eletricas Brasileiras SA, ADR		55,600		670,536
Cielo SA		80,556		2,238,749
Companhia de Concessoes Rodoviarias (CCR)		88,150		2,653,850
Companhia de Saneamento de Minas Gerais—Copasa MG		67,100		1,406,164
Companhia Siderurgica Nacional SA (CSN), ADR		80,200		851,724
CPFL Energia SA		89,700		1,275,355
CPFL Energia SA, ADR1		26,721		771,970
Cyrela Brazil Realty SA		45,600		446,929
Diagnosticos da America SA		35,500		440,645
Embraer SA, ADR		24,805		732,244
Fibria Celulose SA, ADR		80,000		956,800
Gerdau SA		64,300		493,388
Gerdau SA, ADR		46,700		425,904
Gol Linhas Aereas Inteligentes SA, ADR		46,300		359,288
Hypermarcas SA		73,700		566,466
Magazine Luiza SA*		13,800		122,797
Petroleo Brasileiro SA—Petrobras, ADR		91,700		3,115,049
Redecard SA		114,800		1,976,439
Santos Brasil Participacoes SA		48,800		846,452
Telecomunicacoes de Sao Paulo SA, ADR		31,310		993,153
Tractebel Energia SA		58,650		988,184
Vale SA, ADR		106,753		3,463,067
Total Brazil common stocks				32,109,085
British Virgin Islands—0.01%
Arcos Dorados Holdings, Inc., Class A		1,800		42,228
Canada—0.31%
Methanex Corp.		32,600		965,597
Cayman Islands—5.47%
Baidu, Inc., ADR*		17,199		2,701,447
Belle International Holdings Ltd.		741,000		1,627,033
Chaoda Modern Agriculture Holdings Ltd.		1,038,000		416,661

	Number of shares		Value
Common stocks—(Continued)
Cayman Islands—(Concluded)
China Dongxiang Group Co.		4,168,000	$	953,735
China Mengniu Dairy Co. Ltd.		139,000		481,137
Evergrande Real Estate Group Ltd.		1,005,100		758,851
Hengan International Group Co. Ltd.		117,000		1,018,668
Kingboard Laminates Holdings Ltd.		1,039,000		623,951
MStar Semiconductor, Inc.		34,127		170,408
Renren, Inc., ADR*		2,100		22,743
SINA Corp.*		10,000		1,080,900
Stella International Holdings Ltd.		225,500		615,938
Tencent Holdings Ltd.		55,700		1,453,660
Tingyi (Cayman Islands) Holding Corp.		524,000		1,627,558
Want Want China Holdings Ltd.		2,749,000		2,453,185
Xinao Gas Holdings Ltd.		262,000		882,391
Total Cayman Islands common stocks				16,888,266
Chile—1.78%
Banco Santander Chile, ADR1		16,401		1,524,965
Enersis SA, ADR		91,300		1,989,427
Inversiones Aguas Metropolitanas SA (IAM), ADR2		10,100		317,142
S.A.C.I. Falabella		91,879		887,661
Sociedad Quimica y Minera de Chile SA, ADR		12,199		784,640
Total Chile common stocks				5,503,835
China—6.68%
Bank of China Ltd., Class H		1,266,000		581,552
Bank of Communications Co. Ltd., Class H		47,100		40,991
China Bluechemical Ltd., Class H		1,070,000		832,892
China Construction Bank Corp., Class H		4,774,100		3,837,124
China Petroleum and Chemical Corp. (Sinopec), ADR		2,900		287,129
China Shenhua Energy Co. Ltd., Class H		415,000		2,076,815
China Shipping Development Co. Ltd., Class H		914,000		713,634
China Telecom Corp. Ltd., Class H		1,206,000		788,106
China Vanke Co. Ltd., Class B		164,969		227,528
Dongfeng Motor Group Co. Ltd., Class H		826,000		1,639,420
Huadian Power International Co., Class H*		2,667,000		492,116
Industrial & Commercial Bank of China Ltd., Class H		6,690,376		5,107,493
Jiangsu Expressway Co. Ltd., Class H		1,146,000		1,101,446
PetroChina Co. Ltd., ADR		6,000		853,380
Ping An Insurance (Group) Co. of China Ltd., Class H		119,000		1,162,041
Tsingtao Brewery Co. Ltd., Class H		142,000		904,101
Total China common stocks				20,645,768
Colombia—0.16%
Bancolombia SA, ADR		7,600		503,880

163

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Egypt—0.05%
Egyptian Co. for Mobile Services (MobiNil)		9,517	$	166,193
Guernsey—0.13%
Etalon Group Ltd., GDR2,*		58,700		403,269
Hong Kong—4.48%
Beijing Enterprises Holdings Ltd.		201,000		1,015,687
China Merchants Holdings International Co. Ltd.		308,000		1,091,211
China Mobile Ltd.		414,000		4,124,825
China Mobile Ltd., ADR		44,900		2,237,367
China Power International Development Ltd.		2,685,000		670,748
China Resources Power Holdings Co. Ltd.		938,000		1,826,039
China Unicom (Hong Kong) Ltd.		274,000		548,357
CNOOC Ltd.		646,000		1,439,141
CNOOC Ltd., ADR		3,900		867,009
Total Hong Kong common stocks				13,820,384
Hungary—0.83%
Magyar Telekom Telecommunications PLC		320,425		926,599
OTP Bank PLC		56,448		1,643,144
Total Hungary common stocks				2,569,743
India—4.82%
Axis Bank Ltd.		58,702		1,771,732
HCL Technologies Ltd.		79,581		874,132
HDFC Bank Ltd., ADR		72,755		2,528,964
ICICI Bank Ltd., ADR		8,400		391,188
Infosys Technologies Ltd., ADR		24,840		1,545,545
Larsen & Toubro Ltd., GDR		43,875		1,714,608
Reliance Industries Ltd., GDR2		33,835		1,278,625
Rural Electrification Corp. Ltd.		355,569		1,686,868
Tata Motors Ltd.		81,514		1,743,128
Tata Motors Ltd., ADR		62,598		1,340,849
Total India common stocks				14,875,639
Indonesia—3.70%
PT Astra International Tbk		530,000		4,384,909
PT Bank Rakyat Indonesia (Persero) Tbk		2,024,000		1,641,957
PT Indofood Sukses Makmur Tbk		1,360,500		1,015,742
PT Perusahaan Gas Negara		5,105,000		2,382,259
PT Tambang Batubara Bukit Asam Tbk		478,500		1,196,997
PT United Tractors Tbk		254,393		814,609
Total Indonesia common stocks				11,436,473
Israel—0.30%
Israel Chemicals Ltd.		55,309		925,432
Kazakhstan—0.26%
KazMunaiGas Exploration Production, GDR3		17,717		327,765
KazMunaiGas Exploration Production, GDR4		26,604		487,170
Total Kazakhstan common stocks				814,935

	Number of shares		Value
Common stocks—(Continued)
Luxembourg—0.36%
Oriflame Cosmetics SA, SDR		24,325	$	1,110,162
Malaysia—1.74%
CIMB Group Holdings Berhad		528,100		1,471,259
Genting Malaysia Berhad		552,400		679,171
Hong Leong Bank Berhad		83,600		375,332
KLCC Property Holdings Bhd		529,000		599,727
Malayan Banking Berhad		104,804		309,144
Maxis Berhad		582,600		1,079,400
UEM Land Holdings Bhd*		988,600		865,759
Total Malaysia common stocks				5,379,792
Mexico—5.56%
America Movil SA de C.V., ADR, Series L		107,707		2,778,841
Cemex SAB de C.V., ADR*		162,552		1,144,366
Compartamos SAB de C.V.1		649,200		1,168,165
Corporacion GEO SAB de C.V., Series B*		297,800		596,498
Empresas ICA SAB de C.V., ADR*		54,000		437,940
Fomento Economico Mexicano SAB de C.V., ADR		10,600		767,122
Grupo Aeroportuario del Pacifico SA de C.V., ADR		22,800		933,432
Grupo Financiero Banorte SAB de C.V., Series O		453,350		1,985,311
Grupo Mexico SAB de C.V., Series B		625,000		2,305,684
Grupo Televisa SA, ADR		71,300		1,582,147
Industrias CH SA, Series B*		260,600		923,633
Kimberly-Clark de Mexico SA de C.V., Series A		78,000		485,120
Wal-Mart de Mexico SAB de C.V., Series V1		746,900		2,062,402
Total Mexico common stocks				17,170,661
Netherlands—0.25%
X5 Retail Group N.V., GDR*		18,386		760,758
Peru—0.19%
Cia de Minas Buenaventura SA, ADR		14,100		577,254
Philippines—0.50%
Philippine Long Distance Telephone Co., ADR		27,500		1,556,500
Poland—1.46%
Bank Pekao SA		6,378		364,472
Cyfrowy Polsat SA*		178,564		1,032,138
Jastrzebska Spolka Weglowa SA*		11,600		569,077
Polska Grupa Energetyczna SA		49,635		413,020
Polski Koncern Naftowy Orlen SA*		29,826		497,900
Powszechna Kasa Oszczednosci Bank Polski SA		42,636		629,047
Powszechny Zaklad Ubezpieczen SA		7,340		997,474
Total Poland common stocks				4,503,128
Qatar — 0.28%
Industries Qatar QSC		22,705		856,346

164

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Russia—5.58%
Gazprom, ADR*		341,597	$	5,007,812
LUKOIL, ADR		54,864		3,684,118
Magnit OJSC, GDR2		35,490		1,015,710
Mining and Metallurgical Co. Norilsk Nickel, ADR3,*		20,291		542,581
Mining and Metallurgical Co. Norilsk Nickel, ADR4,*		26,950		716,026
Mobile TeleSystems, ADR		10,700		200,946
Rosneft Oil Co., GDR		221,325		1,887,902
Sberbank		854,712		3,123,557
VTB Bank OJSC, GDR5		85,628		514,624
VTB Bank OJSC,GDR6		90,300		537,540
Total Russia common stocks				17,230,816
South Africa—7.05%
ABSA Group Ltd.		29,711		583,075
African Bank Investments Ltd.		286,184		1,437,450
Anglo Platinum Ltd.		9,652		823,111
ArcelorMittal South Africa Ltd.		62,787		643,956
Aveng Ltd.		85,150		454,690
Clicks Group Ltd.		76,056		452,673
Impala Platinum Holdings Ltd.		19,533		497,907
MTN Group Ltd.		148,951		3,217,078
Murray & Roberts Holdings Ltd.		118,754		545,340
Naspers Ltd., N Shares		35,701		1,901,745
Pretoria Portland Cement Co. Ltd.		146,581		564,135
Sasol Ltd.		77,011		3,850,077
Sasol Ltd., ADR		16,300		817,445
Shoprite Holdings Ltd.		77,955		1,212,913
Standard Bank Group Ltd.		80,520		1,168,912
Tiger Brands Ltd.		45,355		1,377,007
Truworths International Ltd.		76,450		827,667
Vodacom Group Ltd.		110,713		1,408,699
Total South Africa common stocks				21,783,880
South Korea—11.86%
Dongbu Insurance Co. Ltd.		17,790		881,423
Grand Korea Leisure Co. Ltd.		21,170		468,289
Hana Financial Group, Inc.		30,360		1,192,667
Hyundai Mipo Dockyard Co. Ltd.		4,396		695,192
Hyundai Mobis		5,585		2,009,880
Hyundai Motor Co.		10,421		2,318,456
Industrial Bank of Korea (IBK)		66,950		1,152,609
Kangwon Land, Inc.		49,110		1,399,999
KB Financial Group, Inc.		35,478		1,763,111
KB Financial Group, Inc., ADR		31,600		1,567,676
KCC Corp.		2,241		743,151
KT Corp., ADR		48,700		962,312
KT&G Corp.		59,270		3,687,444
LG Display Co. Ltd., ADR		35,000		449,400
LG Electronics, Inc.		18,225		1,387,592
LG Household & Health Care Ltd.		2,654		1,200,448
Lotte Chilsung Beverage Co. Ltd.		1,682		2,310,819
Lotte Confectionery Co. Ltd.		665		1,135,658
Samsung Electronics Co. Ltd.		7,719		6,169,345
Samsung Engineering Co. Ltd.		6,551		1,613,406

	Number of shares		Value
Common stocks—(Continued)
South Korea—(Concluded)
Samsung Life Insurance Co. Ltd.		14,998	$	1,418,751
SK Telecom Co. Ltd.		22		3,060
SK Telecom Co. Ltd., ADR		132,275		2,105,818
Total South Korea common stocks				36,636,506
Taiwan—7.02%
Advanced Semiconductor Engineering, Inc.*		344,000		371,411
Advanced Semiconductor Engineering, Inc., ADR*		92,575		491,573
Asustek Computer, Inc., GDR		7,448		299,624
Cathay Financial Holding Co. Ltd.		267,240		400,328
Chunghwa Telecom Co. Ltd.		86,817		301,066
Chunghwa Telecom Co. Ltd., ADR		58,534		2,034,642
Compal Electronics, Inc.		546,000		708,106
Fubon Financial Holding Co. Ltd.		447,000		728,518
HON HAI Precision Industry Co. Ltd.		1,098,900		3,136,045
HON HAI Precision Industry Co. Ltd., GDR		234,611		1,329,073
HTC Corp.		90,300		2,686,301
Lite-On Technology Corp.		388,222		507,523
MediaTek, Inc.		125,652		1,124,443
President Chain Store Corp.		71,680		458,592
Quanta Computer, Inc.*		232,000		571,169
Taiwan Semiconductor Manufacturing Co. Ltd.		1,392,156		3,475,674
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		153,300		1,894,788
United Microelectronics Corp.		1,808,000		811,899
Wistron Corp.*		208,000		349,801
Total Taiwan common stocks				21,680,576
Thailand—2.59%
Bangkok Bank Public Co. Ltd.		212,800		1,254,258
CP ALL Public Co. Ltd.7		764,400		1,268,661
Kasikornbank Public Co. Ltd., NVDR		282,400		1,327,704
Kasikornbank Public Co. Ltd., PLC		91,300		432,336
PTT Public Co. Ltd.7		251,700		2,928,412
Siam Cement Public Co. Ltd., NVDR		60,700		772,821
Total Thailand common stocks				7,984,192
Turkey—2.66%
Asya Katilim Bankasi A.S.*		288,500		408,677
Ford Otomotiv Sanayi A.S.		79,090		622,093
Tofas Turk Otomobil Fabrikasi A.S.		84,551		350,113
Tupras-Turkiye Petrol Rafinerileri A.S.		59,542		1,448,641
Turkcell Iletisim Hizmetleri A.S. (Turkcell), ADR*		30,700		392,960
Turkiye Garanti Bankasi A.S.		695,050		3,065,376
Turkiye Is Bankasi (Isbank), Class C		214,962		616,491
Turkiye Sise ve Cam Fabrikalari A.S.		338,626		740,746
Turkiye Vakiflar Bankasi T.A.O., Class D		274,178		575,281
Total Turkey common stocks				8,220,378
United Kingdom—0.32%
Anglo American PLC, ADR		41,600		983,424

165

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Concluded)
United States—2.06%
Archer-Daniels-Midland Co.		38,300	$	1,163,554
Avon Products, Inc.		118,000		3,095,140
MEMC Electronic Materials, Inc.*		61,700		457,814
Yahoo!, Inc.*		126,600		1,658,460
Total United States common stocks				6,374,968
Total common stocks (cost—$266,819,795)				281,419,576
Preferred stocks—5.87%
Brazil—5.38%
AES Tiete SA		44,700		697,514
Companhia Brasileira de Distribuicao Grupo Pao de Acucar, ADR		12,000		518,280
Companhia de Bebidas das Americas (AmBev), ADR		121,902		3,659,498
Confab Industrial SA		197,372		525,613
Itau Unibanco Holding SA		67,300		1,364,356
Itau Unibanco Holdings SA, ADR		61,400		1,250,718
Itausa-Investimentos Itau SA		244,235		1,640,989
Petroleo Brasileiro SA, ADR		179,700		2,722,991
Usinas Siderurgicas de Minas Gerais SA (Usiminas), Class A		181,100		1,302,038
Vale SA, ADR		99,400		2,934,288
Total Brazil preferred stocks				16,616,285
South Korea—0.49%
Hyundai Motor Co.		8,373		607,692
Samsung Electronics Co. Ltd.		1,688		897,952
Total South Korea preferred stocks				1,505,644
Total preferred stocks (cost—$16,678,051)				18,121,929
Investment company—1.22%
United States—1.22%
WisdomTree India Earnings Fund (cost—$3,809,259)		160,694		3,750,598
	Number of warrants
Warrants*—1.15%
India—0.68%
Bank of Baroda (Citigroup Global Markets Holdings), expires 10/24/12		23,450		463,888
Central Bank of India (Citigroup Global Markets Holdings), expires 10/24/127		91,745		240,005
Corporation Bank (Citigroup Global Markets Holdings), expires 10/24/12		20,425		231,252

	Number of warrants		Value
Warrants*—(Concluded)
India—(Concluded)
HCL Technologies Ltd. (Citigroup Global Markets Holdings), expires 10/24/12		83,775	$	918,090
Indian Bank (Citigroup Global Markets Holdings), expires 10/24/12		47,725		241,918
Total India warrants				2,095,153
Qatar—0.31%
Industries Qatar (Citigroup Global Markets Holdings), expires 03/25/18		25,250		954,198
United Arab Emirates—0.16%
Aldar Properties (Citigroup Global Markets Holdings), expires 07/18/13		1,504,000		511,360
Total warrants (cost—$3,773,222)				3,560,711
	Face amount
Repurchase agreement—0.61%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $9,329 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $1,340,810 US Treasury Bills, zero coupon due 08/04/11 and $528,812 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$1,912,520); proceeds: $1,875,002 (cost—$1,875,000)	$	1,875,000		1,875,000
	Number of shares
Investment of cash collateral from securities loaned—1.12%
Money market fund—1.12%
UBS Private Money Market Fund LLC8(cost—$3,466,958)		3,466,958		3,466,958
Total investments (cost—$296,422,285)— 101.08%				312,194,772
Liabilities in excess of other assets—(1.08)%				(3,325,769	)
Net assets—100.00%			$	308,869,003

166

PACE Select Advisors Trust

PACE International Emerging Markets Equity Investments

Portfolio of investments—July 31, 2011

Aggregate cost for federal income tax purposes was $299,257,551; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	32,827,244
Gross unrealized depreciation		(19,890,023	)
Net unrealized appreciation	$	12,937,221

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at July 31, 2011.

²  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 0.98% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

³  Security is traded on the over-the-counter ("OTC") Market.

⁴  Security is traded on the Turquoise Exchange.

⁵  Security is traded on the Euroclear/Clearstream exchange.

⁶  Security is traded on the Crest exchange.

⁷  Security is being fair valued by a valuation committee under the direction of the board of trustees.

⁸  The table below details the Portfolio's transaction activity in an affiliated issuer for the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	7,322,675	$	77,801,886	$	81,657,603	$	3,466,958	$	2,061

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	109,664,010	$	171,755,566	$	—	$	281,419,576
Preferred stocks		16,616,285		1,505,644		—		18,121,929
Investment company		3,750,598		—		—		3,750,598
Warrants		3,560,711		—		—		3,560,711
Repurchase agreement		—		1,875,000		—		1,875,000
Investment of cash collateral from securities loaned		—		3,466,958		—		3,466,958
Total	$	133,591,604	$	178,603,168	$	—	$	312,194,772

See accompanying notes to financial statements.
167

PACE Select Advisors Trust

PACE Global Real Estate Securities Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 21.74%, before the deduction of the maximum PACE Select program fee. (The Class P shares returned 19.33%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the FTSE EPRA/NAREIT Developed Index (the "benchmark") returned 22.56%, while the Lipper Global Real Estate Funds category posted a median return of 20.87%. (Please note that while all of the Sub-Advisors outperformed the benchmark on a gross of fees basis, the Fund as a whole underperformed net of fees, as reported here, largely because fees and expenses that are embedded in the Fund are not embedded in the benchmark. Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 171. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisors' comments¹

CBRE Clarion (formerly, ING Clarion Real Estate Securities)

Our portion of the Portfolio outperformed the benchmark during the reporting period. Global real estate companies, as represented by the benchmark, were up a little more than 22% during the fiscal year, as all regions delivered strong performance. The best performing region was Europe, followed by the Americas. While property companies in the Asia-Pacific region continue to be challenged by the headwinds of governmental and central bank tightening measures, property companies in the region posted a solid double-digit return. The global economic backdrop continues to be somewhat bifurcated, with Western economies attempting to nurse a fragile recovery and Asian economies (ex-Japan) attempting to cool robust growth. In this environment, property fundamentals continue to exhibit evidence of sustained improvement, as recovering demand and limited supply of property generally combine to support the case for improved earnings prospects. Risks continue to include an economic recovery that occurs too slowly or, conversely, the potential that governmental and central bank policies unwittingly create inflationary pressures that prove difficult to contain. The ability for macro-economic policy to successfully support and sustain economic growth remains a critical backdrop to the continued recovery in property fundamentals.

Our relative performance benefited from positive stock selection in all regions, which more than offset the drag from our asset allocation decisions. Our portion of the Portfolio's modest cash position was also a drag on performance given the strong returns of real estate stocks during the period. The strongest contributions from a stock selection perspective came from our holdings in Hong Kong, the US and the UK. Conversely, our holdings in Japan, Singapore and France, overall, modestly lagged the benchmark during the period. From an asset allocation perspective, an underweight to the outperforming European region, along with an overweight to the

PACE Select Advisors Trust –
PACE Global Real Estate Securities Investments

Investment Sub-Advisors:

CBRE Clarion Securities, LLC ("CBRE Clarion") and Brookfield Investment Management Inc. ("Brookfield")

Portfolio Managers:

CBRE Clarion: T. Ritson Ferguson, Steven D. Burton & Joseph P. Smith

Brookfield: Jason Baine, Bernhard Krieg and Brett Ward

Objective:

Total Return

Investment process:

CBRE Clarion (formerly, ING Clarion Real Estate Securities) uses a multi-step investment process for constructing the investment portfolio. This process combines top-down region and sector allocation with bottom-up individual stock selection. First, CBRE Clarion selects property sectors and geographic regions in which to invest and determines the degree of representation of such sectors and regions, through a systematic evaluation of public and private real estate market trends and conditions. Second, CBRE Clarion uses a proprietary valuation process in an effort to identify investments with superior current income and growth potential relative to their peers.

(continued on next page)

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

168

PACE Select Advisors Trust

PACE Global Real Estate Securities Investments

Sub-Advisors' comments – concluded

underperforming Asia-Pacific region, detracted from relative results.

We remain positive on regions and property types that are more responsive to improving economic conditions. We are maintaining the outlook we have held since the beginning of the year despite recent market setbacks, which we believe are likely temporary in nature. In particular, we are positioned toward geographies and property types that benefit sooner from economic improvement, including the apartment sector in the US and office markets in central business districts with a financial orientation, such as New York, London, Hong Kong, Singapore and Sydney. In the Asia-Pacific region, we remain positively disposed to the commercial property sectors of office, retail and industrial, and are cautious on residential, with the exception of the Tokyo market. We prefer companies with above-average dividend yields, and that have a bias toward quality, as measured by property type, management, balance sheet, geography and business strategy. We continue to believe that current yield via the dividend will be a critical and material component of total return for an investor in a global real estate securities strategy.

Brookfield

Our portion of the Portfolio performed largely in line with the benchmark during the reporting period. North America, particularly the US, was a strong positive contributor to performance during the period. Amid signs of a prolonged economic recovery, US real estate investment trusts (REITs) continued to provide solid returns. In an environment marked by periods of risk aversion and low interest rates, our US REITs offered a unique combination of relatively high current yield, improving underlying fundamentals and attractive prospects for growth. High conviction positions in health care operators, apartment REITs and regional malls were especially positive for our performance.

The UK and continental European equity markets once again faced significant headwinds due to ongoing concerns over sovereign debt risk in European Union member nations. Additionally, investors were troubled by rising levels of inflation in an environment of sluggish economic growth. Our portion of the Portfolio held an underweight position to the region based on medium-term concerns about the financial stability of several European economies and the outlook for the euro. However, this was offset by our stock selection in Europe. The largest detractor within Europe was stock selection in France. Despite generally positive macroeconomic fundamentals, our holdings in the country lagged those in the benchmark.

Australian stock selection was a significant drag on performance during the fiscal year. Australian retail performance was weak, most notably our holding in Westfield Group. Market sentiment grew increasingly negative regarding the Australian and US retail environments with regard to both consumers and retailers. However, the strong performance of our holdings in Hong Kong offset these losses. Overall, our performance within the Asia Pacific region moderately outperformed the benchmark during the period.

Investment process (concluded)

Brookfield invests in a diversified portfolio of global securities of companies primarily in the real estate industry, including real estate investment trusts, real estate operating companies, companies whose value is significantly affected by the value of such companies' real estate holdings, and related entities and structures. Brookfield utilizes a fundamental, bottom-up, value-based stock selection methodology.

Special considerations

The Portfolio may be appropriate for long-term investors seeking to diversify a portion of their assets into real-estate related investments. Investors should be willing to withstand short-term fluctuations in the equity and real estate markets in return for potentially higher returns over the long term. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies or issuers in whose securities the Portfolio invests. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social, and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. These risks are greater for investments in emerging market issuers than for issuers in more developed countries. There are certain risks associated with investing in real estate-related investments, including sensitivity to economic downturns, interest rates, declines in property values and variation in property management.

169

PACE Select Advisors Trust

PACE Global Real Estate Securities Investments

Illustration of an assumed investment of $10,000 in Class A shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Global Real Estate Securities Investments Class A shares versus the FTSE EPRA/NAREIT Developed Index from December 31, 2006, the month-end after the inception date of the Class A shares, through July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that PACE Global Real Estate Securities Investments is a professionally managed portfolio while the Index is not available for investment and are unmanaged. The comparison is shown for illustration purposes only.

170

PACE Select Advisors Trust

PACE Global Real Estate Securities Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			Since inception1
Before deducting	Class A2		21.49	%		(5.87	)%
maximum sales charge	Class C3		20.51	%		(6.62	)%
or PACE Select	Class Y4		21.89	%		20.94	%
program fee	Class P5		21.74	%		(6.70	)%
After deducting maximum sales charge	Class A2		14.79	%		(7.01	)%
or PACE Select	Class C3		19.51	%		(6.62	)%
program fee	Class P5		19.33	%		(8.55	)%
FTSE EPRA/NAREIT Developed Index6			22.56	%		(3.11	)%
Lipper Global Real Estate Funds median			20.87	%		(3.68	)%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, 25.37%; since inception, (7.24)%; Class C—1-year period, 30.82%; since inception, (6.80)%; Class Y—1-year period, 33.29%; since inception, 21.48%; Class P—1-year period, 30.51%; since inception, (8.78)%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—1.89% and 1.45%; Class C—2.69% and 2.20%; Class Y—1.51% and 1.20%; and Class P—1.91% and 1.20%. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.45%; Class C—2.20%; Class Y—1.20%; and Class P—1.20%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Since inception returns are calculated as of commencement of issuance on December 18, 2006 for Class A and C shares, and January 22, 2007 for Class P shares. Class Y shares commenced issuance on November 30, 2006 and had fully redeemed by February 15, 2007 remaining inactive through December 25, 2008. The inception return of Class Y shares is calculated from December 26, 2008, which is the date the Class Y shares recommenced investment operations. Since inception returns for the Index and Lipper median are shown as of December 31, 2006, which is the month-end after the inception date of the oldest share classes (Class A and Class C).

²  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

³  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  The FTSE EPRA/NAREIT Developed Index is designed to track the performance of listed real estate companies and real estate investment trusts ("REITs") worldwide. By making the index constituents free-float adjusted, liquidity, size and revenue screened, the series is suitable for use as the basis for investment products, such as derivatives and exchange traded funds. Investors should note that indices do not reflect the deduction of fees and expenses.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

171

PACE Select Advisors Trust

PACE Global Real Estate Securities Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	106.0
Number of holdings		141
Portfolio composition1	07/31/11
Common stocks		97.2	%
Cash equivalents and other assets less liabilities		2.8
Total		100.0	%
Top five countries (equity investments)1	07/31/11
United States		42.5	%
Japan		10.4
Australia		9.0
Hong Kong		8.5
United Kingdom		5.9
Total		76.3	%
Top ten equity holdings1	07/31/11
Simon Property Group, Inc.		4.5	%
Sun Hung Kai Properties Ltd.		3.9
Mitsubishi Estate Co. Ltd.		3.1
Unibail Rodamco		2.8
Mitsui Fudosan Co. Ltd.		2.8
Westfield Group		2.8
Public Storage, Inc.		2.7
ProLogis, Inc.		2.7
Boston Properties, Inc.		2.6
Hongkong Land Holdings Ltd.		2.1
Total		30.0	%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

172

PACE Select Advisors Trust

PACE Global Real Estate Securities Investments

Industry diversification—(unaudited)

As a percentage of net assets as of July 31, 2011

Common stocks

Apartments	8.28	%
Building-residential/commercial	0.70
Diversified	19.91
Diversified operations	1.89
Health care	3.39
Hotels & motels	2.27
Manufactured homes	0.47
Office property	9.21
Real estate management/service	5.66
Real estate operations/development	20.07
Regional malls	8.39
Retirement/aged care	0.87
Shopping centers	10.40
Storage	2.87
Storage/warehousing	0.19
Warehouse/industrial	2.65
Total common stocks	97.22
Repurchase agreement	2.72
Investment of cash collateral from securities loaned	5.29
Liabilities in excess of other assets	(5.23	)
Net assets	100.00	%

173

PACE Select Advisors Trust

PACE Global Real Estate Securities Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—97.22%
Australia—8.99%
Charter Hall Group		61,561	$	141,349
Dexus Property Group		1,099,387		1,043,760
FKP Property Group		353,852		246,413
Goodman Group		1,326,013		989,292
GPT Group		278,810		920,914
Investa Office Fund		366,805		257,737
Mirvac Group		252,521		318,721
Stockland		405,064		1,355,211
Westfield Group		334,772		2,923,954
Westfield Retail Trust		496,097		1,328,113
Total Australia common stocks				9,525,464
Austria—0.17%
Conwert Immobilien Invest SE1		11,038		178,319
Bermuda—3.00%
Great Eagle Holdings Ltd.		44,000		145,332
Hongkong Land Holdings Ltd.		329,024		2,210,099
Kerry Properties Ltd.		168,567		819,630
Total Bermuda common stocks				3,175,061
Brazil—0.32%
BR Malls Participacoes SA		17,000		197,969
Sonae Sierra Brasil SA		8,800		137,318
Total Brazil common stocks				335,287
Canada—3.69%
Boardwalk Real Estate Investment Trust		8,570		449,108
Brookfield Asset Management, Inc., Class A1		5,400		170,262
Brookfield Properties Corp.		45,700		866,015
Calloway Real Estate Investment Trust		29,900		784,231
Canadian Real Estate Investment Trust		3,500		122,241
Cominar Real Estate Investment Trust2		2,500		59,161
Cominar Real Estate Investment Trust3,4,5		5,731		135,620
H&R Real Estate Investment Trust		11,200		257,537
Primaris Retail Real Estate Investment Trust		5,600		121,091
RioCan Real Estate Investment Trust3,4,5		2,200		59,775
RioCan Real Estate Investment Trust2		32,600		885,756
Total Canada common stocks				3,910,797
Cayman Islands—1.26%
China Resources Land Ltd.		285,789		562,866
Longfor Properties		225,000		347,954
Shimao Property Holdings Ltd.		173,000		229,675
Soho China Ltd.		219,000		199,247
Total Cayman Islands common stocks				1,339,742
China—0.16%
Guangzhou R&F Properties Co. Ltd., Class H		126,208		163,704
France—4.99%
ICADE		6,590		757,240
Klepierre		13,299		496,598
Mercialys SA		11,960		497,501
Nexity		6,380		286,659

	Number of shares		Value
Common stocks—(Continued)
France—(Concluded)
Societe Immobiliere de Location pour l'Industrie et le Commerce (Silic)1		1,900	$	245,975
Unibail Rodamco		13,512		3,008,202
Total France common stocks				5,292,175
Germany—0.36%
GSW Immobilien AG*		8,290		290,371
IVG Immobilien AG*		12,700		87,102
Total Germany common stocks				377,473
Hong Kong—8.46%
Cheung Kong (Holdings) Ltd.		21,000		320,089
China Overseas Land & Investment Ltd.		264,000		595,487
Franshion Properties China Ltd.		781,723		215,240
Hang Lung Properties Ltd.		73,000		270,679
Hysan Development Co. Ltd.		42,000		196,391
Sino Land Co. Ltd.		201,710		341,257
Sun Hung Kai Properties Ltd.		269,376		4,090,007
The Link REIT		267,300		934,638
Wharf (Holdings) Ltd.		272,413		1,999,302
Total Hong Kong common stocks				8,963,090
Italy—0.09%
Beni Stabili SpA		109,879		97,988
Japan—10.36%
Advance Residence Investment Corp.		63		132,681
AEON Mall Co. Ltd.		12,530		323,025
Frontier Real Estate Investment Corp.1		33		299,648
Japan Real Estate Investment Corp.1		55		552,113
Japan Retail Fund Investment Corp.1		284		443,864
Kenedix Realty Investment Corp.1		77		287,394
Mitsubishi Estate Co. Ltd.		180,602		3,242,904
Mitsui Fudosan Co. Ltd.		154,361		2,940,887
Nippon Accommodations Fund, Inc.		27		209,345
Nippon Building Fund, Inc.1		37		379,142
Nomura Real Estate Holdings, Inc.		9,000		165,180
Sumitomo Realty & Development Co. Ltd.		61,876		1,529,585
United Urban Investment Corp.		398		478,151
Total Japan common stocks				10,983,919
Jersey—0.12%
Atrium European Real Estate Ltd.		20,413		130,734
Luxembourg—0.14%
GAGFAH SA1		21,476		146,091
Netherlands—0.92%
Corio N.V.		11,684		710,779
Eurocommercial Properties N.V.		5,563		265,615
Total Netherlands common stocks				976,394
Norway—0.12%
Norwegian Property ASA		60,952		128,378
Poland—0.06%
Globe Trade Centre SA*		10,200		60,351

174

PACE Select Advisors Trust

PACE Global Real Estate Securities Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Singapore—4.53%
Ascendas Real Estate Investment Trust (A-REIT)		77,000	$	130,398
CapitaCommercial Trust1		497,000		581,010
Capitaland Ltd.		632,966		1,519,721
CapitaMall Trust1		79,300		123,973
CapitaMalls Asia Ltd.		313,410		372,121
City Developments Ltd.		12,800		111,814
Global Logistic Properties Ltd.*		576,175		966,128
Keppel Land Ltd.1		131,536		416,835
Suntec Real Estate Investment Trust1		458,063		583,837
Total Singapore common stocks				4,805,837
Sweden—0.45%
Castellum AB		13,133		189,937
Hufvudstaden AB, Class A		25,875		289,409
Total Sweden common stocks				479,346
Switzerland—0.57%
PSP Swiss Property AG*		3,151		318,860
Swiss Prime Site AG*		3,136		287,306
Total Switzerland common stocks				606,166
United Kingdom—5.94%
Big Yellow Group PLC		35,104		164,589
British Land Co. PLC		112,044		1,069,920
Capital & Counties Properties PLC		65,371		200,281
Derwent London PLC		30,130		882,458
Grainger PLC		33,102		63,834
Great Portland Estates PLC		85,405		580,249
Hammerson PLC		120,340		919,088
Land Securities Group PLC		118,104		1,645,917
Safestore Holdings PLC		102,441		202,864
Segro PLC		22,444		110,675
Shaftesbury PLC		23,217		194,039
Songbird Estates PLC*		67,047		165,687
St. Modwen Properties PLC		33,668		95,248
Total United Kingdom common stocks				6,294,849
United States—42.52%
Alexandria Real Estate Equities, Inc.		7,800		639,600
Apartment Investment & Management Co., Class A		24,000		655,200
AvalonBay Communities, Inc.		14,983		2,010,569
Boston Properties, Inc.		25,442		2,731,453
Brandywine Realty Trust		57,783		692,818
BRE Properties, Inc.		15,300		802,944
Brookdale Senior Living, Inc.*		43,082		921,524
Camden Property Trust		11,920		799,474
CBL & Associates Properties, Inc.		30,800		547,008
Corporate Office Properties Trust		16,500		512,655
Developers Diversified Realty Corp.		43,200		631,152
Digital Realty Trust, Inc.1		13,647		835,333
Douglas Emmett, Inc.		23,800		476,000
Equity Lifestyle Properties, Inc.		7,600		495,216
Equity One, Inc.1		19,808		384,275
Equity Residential		35,200		2,176,064

	Number of shares		Value
Common stocks—(Concluded)
United States—(Concluded)
Essex Property Trust, Inc.		4,300	$	603,548
Federal Realty Investment Trust		7,100		620,114
Forest City Enterprises, Inc., Class A*		30,500		549,305
General Growth Properties, Inc.		59,596		1,001,809
HCP, Inc.		27,300		1,002,729
Health Care REIT, Inc.		25,200		1,330,056
Highwoods Properties, Inc.		25,900		891,737
Host Hotels & Resorts, Inc.		69,083		1,094,966
Kimco Realty Corp.		23,000		437,690
Lennar Corp., Class A		20,900		369,721
Liberty Property Trust		33,700		1,144,452
OMEGA Healthcare Investors, Inc.		25,200		494,928
Pebblebrook Hotel Trust		10,000		197,700
Pennsylvania Real Estate Investment Trust		31,500		459,900
ProLogis, Inc.		78,891		2,810,886
Public Storage, Inc.		24,077		2,880,332
Regency Centers Corp.		8,900		399,788
Simon Property Group, Inc.		39,622		4,774,847
SL Green Realty Corp.		11,600		951,432
Starwood Hotels & Resorts Worldwide, Inc.		18,200		1,000,272
Tanger Factory Outlet Centers, Inc.		11,700		321,165
Taubman Centers, Inc.		8,700		521,130
The Macerich Co.		23,926		1,271,188
Toll Brothers, Inc.*		18,700		373,252
UDR, Inc.		35,600		936,636
Ventas, Inc.		14,036		759,769
Vornado Realty Trust		20,491		1,916,933
Weingarten Realty Investors1		24,974		642,331
Total United States common stocks				45,069,901
Total common stocks (cost—$87,352,112)				103,041,066
	Face amount
Repurchase agreement—2.72%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $14,339 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $2,060,914 US Treasury Bills, zero coupon due 08/04/11 and $812,820 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17, (value—$2,939,671); proceeds: $2,882,002 (cost—$2,882,000)	$	2,882,000		2,882,000

175

PACE Select Advisors Trust

PACE Global Real Estate Securities Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Investment of cash collateral from securities loaned—5.29%
Money market fund—5.29%
UBS Private Money Market Fund LLC6(cost—$5,613,519)		5,613,519	$	5,613,519
Total investments (cost—$95,847,631)— 105.23%				111,536,585
Liabilities in excess of other assets—(5.23)%				(5,548,074	)
Net assets—100.00%			$	105,988,511

Aggregate cost for federal income tax purposes was $101,600,280; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	11,169,434
Gross unrealized depreciation		(1,233,129	)
Net unrealized appreciation	$	9,936,305

For a listing of defined portfolio acronyms and currency abbreviations that were used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at July 31, 2011.

²  Security is traded on the Toronto Stock Exchange.

³  Security is being fair valued by a valuation committee under the direction of the board of trustees.

⁴  Security is traded on the over-the-counter ("OTC") Market.

⁵  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 0.18% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁶  The table below details the Portolio's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	4,402,048	$	59,205,335	$	57,993,864	$	5,613,519	$	2,757

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	49,261,939	$	53,779,127	$	—	$	103,041,066
Repurchase agreement		—		2,882,000		—		2,882,000
Investment of cash collateral from securities loaned		—		5,613,519		—		5,613,519
Total	$	49,261,939	$	62,274,646	$	—	$	111,536,585

See accompanying notes to financial statements.
176

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Performance

For the 12 months ended July 31, 2011, the Portfolio's Class P shares returned 2.94%, before the deduction of the maximum PACE Select program fee. (Class P shares returned 0.89%, after the deduction of the maximum PACE Select program fee, for the same 12-month period.) In comparison, the Citigroup Three-Month US Treasury Bill Index (the "benchmark") returned 0.13%, the MSCI World Free Index (net) returned 18.54%, the Barclays Capital Global Aggregate Index returned 9.09%, and the US Consumer Price Index (CPI) increased by 3.63%, while the Lipper Global Flexible Portfolio Funds category posted a median return of 14.22%. (Returns for all share classes over various time periods are also shown in the "Performance at a glance" table on page 184. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.) For a detailed commentary on the market environment in general during the reporting period, please refer to page 2.

Sub-Advisors' comments¹

Analytic Investors

Our portion of the Portfolio consists of long-short equity positions.² Our process is based on the premise that investor behavior changes—although slowly—and is fairly persistent from month to month. To support this premise, our model is driven by specific security characteristics within seven groups (such as valuation, quality and liquidity), to help us identify potential investment opportunities.

Our model worked quite well during the reporting period, as we were well-positioned in all factor categories. For example, our overweight to the quality category worked well as investors rewarded securities with above-average return on assets and attractive profit margins. Also, positive exposure to the revisions category, which includes factors such as earnings revision and analyst recommendations, the technical category, which includes the momentum factors, and the valuation category, with factors like earnings-to-price ratios, contributed positively to performance, as investors rewarded securities with strong earnings and above-average momentum. An underweight exposure to the risk category, which includes the debt-to-equity and analyst dispersion factors, contributed positively as well, as investors penalized these measures.

PACE Select Advisors Trust –
PACE Alternative Strategies Investments

Investment Sub-Advisors:

Analytic Investors, LLC ("Analytic Investors"); Wellington Management Company, LLP ("Wellington Management"); Goldman Sachs Asset Management, L.P. ("GSAM"), First Quadrant L.P. ("First Quadrant") and Standard Life Investments (Corporate Funds) Limited ("Standard Life Investments")

Portfolio Managers:

Analytic Investors: Dennis Bein, David Krider and Harindra de Silva

Wellington Management: Rick A. Wurster and Stephen A. Gorman

GSAM: Jonathan Beinner and Michael Swell

First Quadrant: Ken Ferguson and Dori Levanoni

Standard Life Investments: Guy Stern and David Millar

Objective:

Long-term capital appreciation

Investment process:

Analytic Investors primarily employs a long/short global equity strategy. This strategy is implemented by taking long and short positions of equity securities publicly traded in the United States and in foreign markets both by direct equity investment and through derivatives. Analytic Investors' strategy may also employ the use of derivatives, such as swaps, futures,

(continued on next page)

¹  All Sub-Advisors discuss performance on a gross of fees basis—meaning that no fees or expenses are reflected in their sleeves'/sleeve's performance. Alternately, Fund performance is shown net of fees, which does factor in fees and expenses associated with the Fund.

²  When a long position is taken, a security is purchased with the expectation that it will rise in value. A short position is taken when we believe, based on our research, that securities are overpriced, and, therefore, we hope to make a profit when the security falls in value. When shorting an investment, we borrow the security, sell it, and then buy an equal number of shares later—hopefully at a lower price—to replace those we borrowed.

177

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Sub-Advisors' comments – continued

The top equity performers were long positions in Biogen IDEC Inc., Lorillard, Inc. and Limited Brands, Inc., all of which performed well during the period. A short position in Nvidia Corp., and long positions in Oracle Corp. Japan and Pandora A/S, detracted from performance and were the worst-performing stocks in our portion of the Portfolio. We eliminated our position in Nvidia. Our stock selection added value over the period. Positions in the financial and consumer staples sectors performed well. Conversely, our positions in the materials and industrial sectors had a negative impact on performance.

Wellington Management

Top contributors to our absolute performance during the period included Green Mountain Coffee Roasters, Inc., the leading provider of single-cup brewers and portion packs for coffee and other beverages, and electronic cable and connectivity manufacturer Belden. Our portion of the Portfolio also benefited from its exposure to the US equity markets through the use of equity index futures on the S&P 500 and NASDAQ indexes.

Our thematic positioning within agricultural companies contributed to performance. Our exposures to fertilizer companies Intrepid Potash, Inc., CF Industries Holdings, Inc. and Monsanto Co. were the largest contributors to performance. Supply and demand factors, caused by limitations on net arable land growth and less fresh water, have required significant investment by farmers globally to improve productivity to meet strong emerging markets food demand growth, as well as continued growth in biofuels demand.

Our emerging markets equity exposure also contributed to positive absolute performance during the period, specifically our holdings in China, South Korea, Chile and the Philippines. The largest contributors to absolute performance among our emerging markets holdings included Baidu.com, the leading Internet search provider in China. Another strong performer was China-based news, information, entertainment and communications Internet portal company Sohu.com.

Our country relative value positions, which were intended to exploit spread inefficiencies in developed government bond markets, detracted from results. Specifically, our long US 10- and 30-year versus short Germany position was a drag on

Investment process (continued)

non-deliverable forwards ("NDFs"), and forward contracts.

Wellington Management pursues an "opportunistic equity plus alpha" strategy by opportunistically seeking non-core equity exposures that Wellington Management believes are attractively valued, have positive structural characteristics in the current market environment or are expected to benefit from anticipated economic cycles. In addition, Wellington Management may employ other investment approaches, for example, by allocating assets to fixed income securities or other non-equity investments that are expected to contribute positive returns over time. Wellington Management may buy and sell, directly or indirectly, listed or unlisted equity and fixed income securities issued by entities around the world, as well as derivative instruments.

GSAM seeks to employ a number of diverse strategies and seeks to allocate capital tactically to strategies it believes offer the best opportunities at a given point in time in a given market or sector. GSAM focuses mainly on the global fixed income and currency markets, across various investment grade and sub-investment grade sectors, and may also invest in derivative investments.

First Quadrant employs a "global macro strategy" which is implemented by combining several different complex investment techniques. It uses a "tactical risk allocation" approach across global markets which increases investment risk where it believes opportunities for risk-adjusted profit are high and attempts to lower market risks when it believes gains have been realized and future gains are unlikely. First Quadrant also assesses the

(continued on next page)

178

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Sub-Advisors' comments – continued

results. Our thematic positioning in energy also detracted from results. Our positions in EOG Resources, Canada Natural Resources and Whiting Petroleum declined during the period as energy equities fell due to oil price weakness and the muted near-term earnings prospects for companies due to the slowdown of the economic recovery. Our short exposure to the Swiss franc was also a drag on performance.

Certain derivative instruments, including interest rate swaps, interest rate futures and bond futures were used to gain exposure to global bond markets, implement yield curve and duration strategies and to take advantage of inefficiencies within the global bond market. Equity index futures and equity index options were used to gain exposure to certain global equity markets and to hedge against anticipated declines. We also made use of currency forwards to gain exposure to certain currencies, hedge against anticipated changes and to take advantage of inefficiencies between various currencies. The derivatives used in our portion of the Portfolio during the period contributed to performance.

GSAM

Within our portion of the Portfolio, duration—a measure of a portfolio's sensitivity to interest rate changes—and yield curve positioning detracted from performance. (A yield curve is a line that plots interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.) During the fourth quarter of 2010, we had a long US duration bias, driven by a view that the Federal Reserve Board's ("Fed") second round of quantitative easing ("QE2") would push yields lower. However, this positioning detracted as Treasury yields moved higher in the wake of the Fed's introduction of QE2. In global duration, positive results from our short Japan duration position were offset by our long duration bias in Europe. Gains in February 2011 were more than offset by our short US duration position in early March. We removed some of our short US duration position in mid-March, as downside risk to global growth increased. During the second quarter of 2011, our short US position on the five-year portion of the yield curve was the main detractor. This positioning detracted as bond yields fell given heightened global growth concerns.

From a currency perspective, during the fourth quarter of 2010, our long exposure to the Mexican peso and short exposure to the euro proved positive. During the first part of 2011, our short euro position detracted from results as the currency appreciated, driven by central bank rate hike expectations. Our short Swiss franc was a negative as it was seen as a safe haven against a backdrop of heightened risk aversion in global markets. These losses were slightly offset by our short Japanese yen exposure, as the currency weakened amid a coordinated intervention effort by the G7 after the earthquake. Our long Canadian dollar exposure also proved positive.

Investment process (concluded)

combination of local market and economic factors as well as global equity, fixed income or currency market factors and attempts to capture inefficiencies in those markets. First Quadrant's strategy is primarily implemented through the use of derivatives and it seldom holds net long positions.

Standard Life Investments employs a "global multi-asset strategy" and seeks to achieve a total return by delivering a diversified global portfolio that makes use of multiple strategies across various asset classes. Standard Life Investments aims to exploit market cyclicality and a diverse array of inefficiencies across and within global markets to maximize risk adjusted absolute return. Standard Life Investments' portion of the Portfolio consists of listed equity, equity-related and debt securities, including exchange traded funds, and will routinely make use of derivatives or other instruments both for investment and hedging purposes. Standard Life Investments may take long and/or short positions, and its derivative investments may include, but are not restricted to, futures, options, swaps, and forward currency contracts.

179

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Sub-Advisors' comments – continued

Overall, sector positioning contributed positively to returns. During the fourth quarter of 2010 and the first quarter of 2011, our exposure to non-agency mortgage-backed securities ("MBS") was the primary driver of results. The non-agency MBS market performed well due to strong supply/demand technicals. However, they gave back some of their gains later in the period due to broad risk reduction in the global markets, as well as seasonal weakness in US housing fundamentals. An overweight to corporate bonds contributed to relative performance for most of the fiscal year, as credit fundamentals remained strong and continued to improve. Late in the second quarter of 2011, however, some of these gains were reversed as investment grade corporate bond spreads widened, as a new wave of concerns surrounding peripheral Europe triggered increased volatility in the credit market. (Spread measures the difference in yield between a fixed income security and a government bond of similar duration.)

Finally, security selection contributed positively to performance. Excess returns were primarily driven by our security selection within the corporate bond sector. A down-in-quality bias proved beneficial, as lower quality investment grade bonds outperformed their higher quality counterparts. Our exposure to high yield bonds benefited performance as well. Within the collateralized sector, our selection of non-agency adjustable-rate mortgages ("ARMs") and collateralized mortgage obligations ("CMOs") within the residential MBS sector proved positive. Our selection of government securities within the government/agency sector also contributed to performance.

During the period we employed certain derivatives for the efficient management of our portion of the Portfolio. These included currency forwards, Treasury futures, credit default swaps and interest rate swaps and futures. Derivatives allow us to manage interest rate, credit and currency risks more effectively by allowing us both to hedge and to apply active investment views with greater versatility, and to afford greater risk management precision. The results of derivatives used during the period were within our expectations.

First Quadrant

Global asset class selection added modest value due to our preference toward global equities during the early part of 2011. The strengthening global economy favored equities during this period. However, as global market and economic conditions deteriorated in the summer months, this position was reduced. Our volatility management positioning also added value during the period.

Stock country selection benefited mildly from long positions in the US and Germany, as well as a short position in Australia. In contrast, our long positions in Spain and Italy detracted from results. Our currency risk strategy was steadily profitable as the factor that indicates whether a currency is expensive or inexpensive correctly anticipated equity market directions.

Bond country selection started the reporting period mixed, and ended the period in negative territory. Unfortunately, when the Federal Reserve Board ("Fed") announced implementation of its second round of quantitative easing ("QE2") in late 2010, our long US Treasury gave back its previous gains. The Canadian short position also detracted in the late part of 2010. July 2011 was also a difficult month for bond country selection. In particular, our long position in Japanese government bonds was a negative, as they performed poorly. A short position in the UK was also unprofitable, as UK gilts appreciated. Elsewhere, German bunds were buoyed by their relative appeal, as Portugal and Ireland joined Greece in being downgraded to below investment grade status by Moody's. A long position in German bunds made Germany our best performer in July.

Currency selection losses were dominated by our long British pound and short Australian dollar and Swiss franc positions. Additionally, one of our investment flow indicators and the relative valuation strategy (which measures the relative attractiveness of each market) experienced the greatest difficulty during the period. Investors shifted

180

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Sub-Advisors' comments – continued

their focus to risk avoidance from risk-seeking. As that effect dissipates, we expect the strategy to see a return to profitability.

Certain derivative instruments, namely global equity and global government bond futures, were used to facilitate asset class and country selection asset exposures. Developed market forward currency contracts were used to implement currency selection investment exposures. Exchange-traded options on global indices were used to gain exposure to option pricing dynamics. The results of derivatives used during the period were within our expectations.

Standard Life Investments

From the date we started to manage a portion of the Portfolio on August 5, 2010 through July 31, 2011, the global markets have been volatile. Against this backdrop, our exposure to global equities made a significant contribution to returns for much of the period. However, when investors' confidence faltered, as was the case in the second quarter of 2011, the index futures that we held alongside our equity positions helped to reduce volatility. Our allocation to inflation-linked bonds was also positive as investors periodically sought to reduce their risk exposure. Many of our duration positions were negative over the period, although these positions proved particularly useful during periods of uncertainty (duration is measure of a portfolio's sensitivity to interest rate changes). Relative duration strategies, however, including one whereby we were long Japanese long-term government securities versus short European long-term government bonds, produced steadily positive returns.

Our portion of the Portfolio has a number of investments that have euro exposure. Our European corporate bonds were generally positive for results as investors sought the relative safety of well-financed companies in preference to government bonds. Exposure to financial sector credit versus broad market credit reflected our expectation that the cost of capital for banks relative to the amount they receive from their borrowers has to decline. This strategy was negative for our results during the period, but we feel our thesis will play out, as it is at the heart of any move to stabilize Europe. The euro, however, remains fundamentally overvalued in our opinion. This view has been reinforced by the continuing sovereign debt debacle in the Eurozone, which currently appears intractable. Despite this very volatile situation, our short exposure to the euro versus the US dollar detracted from performance over the reporting period. As a way of offsetting the impact of a weak US dollar, we have switched part of this strategy to being long Mexican government bonds. We feel this position allows us to take advantage of a significant yield opportunity and to gain exposure to Mexico's relatively stable fiscal position.

Our portion of the Portfolio has a cash benchmark and is mandated to seek absolute return opportunities based on our three-year outlook of markets globally. Our goal for our portion of the Portfolio is to beat cash returns by 5% on a three-year rolling basis, while maximizing risk adjusted absolute return. Cash returns remain anchored close to zero, and are not expected to increase markedly over the coming three years as we expect below-average growth in developed markets for some time to come. That said, we do not foresee this persisting indefinitely so we have built our portion of the Portfolio to seek returns to also beat the long-term expectations of cash returns.

In terms of derivatives, many of the individual investment strategies in our portion of the Portfolio should be considered in combination with other positions. This is particularly the case, for example, with relative value investments, but it is also the case when looking at equity hedges.

Our use of futures for equity hedging are to reduce market exposure and risk and secondly to re-balance market position to the equity markets that we favor. During the reporting period, equity markets rose globally by approximately 8% in USD terms. The hedging that we had alongside our equity positions detracted from

181

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Sub-Advisors' comments – concluded

performance, although the equity positions, as would be expected, generated positive results. Because we were not 100% hedged, the net contribution from our equity positions was positive. For the second quarter of 2011, when equity markets fell sharply losing over 5% by mid June but ended the quarter marginally down, these equity hedges will have been generally positive, countering the portfolio's exposure to equity volatility. This has again been the position into the recent period of equity volatility.

While we have hedges in place for UK, European and Global Equity positions, we have a positive hedge for US Equities. This reflects our view that while we continue to seek alpha in these markets, we see relative value in US Equities compared to elsewhere in the world at present.

Special considerations

The Portfolio may be appropriate for investors seeking long term capital appreciation who are able to withstand short-term fluctuations in the equity markets and fixed income markets in return for potentially higher returns over the long-term. The Portfolio may employ investment strategies that involve greater risks than the strategies used by many other mutual funds, including increased use of short sales (which involve the risk of an unlimited increase in the market value of the security sold short, which could result in a theoretically unlimited loss), leverage and derivative transactions, and hedging strategies. The value of the Portfolio changes every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the issuers of securities in which the Portfolio invests. The value of the Portfolio's investments in foreign securities may fall due to adverse political, social and economic developments abroad and due to decreases in foreign currency values relative to the US dollar. It is important to note that an investment in the Portfolio is only one component of a balanced investment plan.

182

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Illustration of an assumed investment of $10,000 in Class P shares of the Portfolio (unaudited)

The following graph depicts the performance of PACE Alternative Strategies Investments Class P shares versus the Citigroup Three-Month US Treasury Bill Index, the MSCI World Free Index (net), the Barclays Capital Global Aggregate Index and the US Consumer Price Index (CPI) from April 30, 2006, the month-end after the inception date of the Class P shares, through July 31, 2011. The performance of the other classes will vary based upon the different class specific expenses and sales charges. The performance provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Past performance is no guarantee of future results. Share price and returns will vary with market conditions; investors may realize a gain or loss upon redemption. It is important to note that PACE Alternative Strategies Investments is a professionally managed portfolio while the Indices are not available for investment and are unmanaged. The comparison is shown for illustration purposes only.

183

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11		1 year			5 years			Since inception1
Before deducting	Class A2		2.69	%		(0.22	)%		(0.36	)%
maximum sales charge	Class C3		1.93	%		(0.96	)%		(1.02	)%
or PACE Select	Class Y4		2.84	%		N/A			(2.81	)%
program fee	Class P5		2.94	%		0.02	%		(0.11	)%
After deducting maximum sales charge	Class A2		(2.93	)%		(1.35	)%		(1.41	)%
or PACE Select	Class C3		0.93	%		(0.96	)%		(1.02	)%
program fee	Class P5		0.89	%		(1.96	)%		(2.09	)%
Citigroup Three-Month US Treasury Bill Index6,10			0.13	%		1.78	%		1.93	%
MSCI World Free Index (net)7,10			18.54	%		1.78	%		1.14	%
Barclays Capital Global Aggregate Index8			9.09	%		7.32	%		7.26	%
US Consumer Price Index (CPI)9			3.63	%		2.11	%		2.20	%
Lipper Global Flexible Portfolio Funds median			14.22	%		4.56	%		3.39	%

Average annual total returns for periods ended June 30, 2011, after deduction of the maximum sales charge or PACE Select program fee, were as follows: Class A—1-year period, (0.13)%; 5-year period, (1.00)%; since inception, (1.19)%; Class C—1-year period, 3.79%; 5-year period, (0.60)%; since inception, (0.79)%; Class Y—1-year period, 5.53%; since inception, (2.50)%; Class P—1-year period, 3.77%; 5-year period, (1.61)%; since inception, (1.85)%.

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2010 prospectuses, were as follows: Class A—2.07% and 2.01%; Class B—3.21% and 2.78%; Class C—2.76% and 2.76%; Class Y—1.77% and 1.77%; and Class P—1.80% and 1.76%. Class B shares were not operational as of November 28, 2010; ratios for Class B are annualized and reflect the limited operating history during the fiscal year ended July 31, 2010. Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Portfolio and UBS Global Asset Management (Americas) Inc. ("UBS Global AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.95%; Class B—2.70%; Class C—2.70%; Class Y—1.70%; and Class P—1.70%. The Portfolio has agreed to repay UBS Global AM for any waived fees/reimbursed expenses to the extent that it can do so over the following three fiscal years without causing the Portfolio's expenses in any of those three years to exceed these expense caps. The fee waiver/expense reimbursement agreement may be terminated by the Portfolio's board at any time and also will terminate automatically upon the expiration or termination of the Portfolio's advisory contract with UBS Global AM. Upon termination of the agreement, however, UBS Global AM's three year recoupment rights will survive.

¹  Since inception returns are calculated as of commencement of issuance on April 10, 2006 for Class P and A shares, April 11, 2006 for Class C shares. Class Y shares commenced issuance on April 3, 2006, and had fully redeemed by July 27, 2006 remaining inactive through July 22, 2008. The inception return of Class Y shares is calculated from July 23, 2008, which is the date the Class Y shares recommenced investment operations. Class B shares commenced issuance on May 19, 2006, and had fully redeemed by April 8, 2010. Since inception returns for the Indices and Lipper median are shown as of April 30, 2006, which is the month-end after the inception date of the oldest share classes (Class P and Class A).

²  Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees.

³  Maximum contingent deferred sales charge for Class C shares is 1% imposed on redemptions and is reduced to 0% after one year. Class C shares bear ongoing 12b-1 service and distribution fees.

⁴  The Portfolio offers Class Y shares to a limited group of eligible investors, including certain qualifying retirement plans. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees.

⁵  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but are subject to a maximum annual PACE Select program fee of 2% of the value of Class P shares. Prior to June 14, 2010, the maximum annual PACE Select program fee was 1.5% of the value of Class P shares; however, the current maximum annual PACE Select program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns presented for the Class P shares shown above.

⁶  The Citigroup Three-Month US Treasury Bill Index is an unmanaged index reflecting monthly return equivalents of yield averages that are not marked to the market and an average of the last three 3-month T-bill month-end rates. 3-month T-bills are the short-term debt obligations of the US government. Investors should note that indices do not reflect the deduction of fees and expenses.

⁷  The MSCI World Free Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market  performance of developed markets. As of May 2010, the index consisted of 24 developed market country indices. Dividends are reinvested after deduction of withholding tax, using tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates. Had US tax rates been applied, the performance of the index would be different. The index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses.

⁸  The Barclays Capital Global Aggregate Index is an unmanaged broad-based, market capitalization weighted index which is designed to measure the broad global markets for US and non US corporate, government, governmental agency, supranational, mortgage-backed and asset-backed fixed income securities. Investors should note that indices do not reflect the deduction of fees and expenses.

⁹  The US Consumer Price Index (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. The index is calculated by the Bureau of Labor Statistics. Investors should note that indices do not reflect the deduction of fees and expenses.

¹⁰  Effective November 28, 2010, the Portfolio's official benchmark had been changed from the MSCI World Free Index (net) to the Citigroup Three-Month US Treasury Bill Index in light of the investment strategies employed in pursuit of the Portfolio's investment objective.

If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectuses.

Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 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 gain distributions at net asset value on the ex-dividend dates. Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit http://www.ubs.com.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

184

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	548.4
Number of holdings		1,039
Portfolio composition1	07/31/11
Common and preferred stocks		33.3	%
Bonds and notes		30.6
ADRs, GDRs and SDRs		1.5
Investment companies		1.2
Investments sold short		(5.0	)
Options, swaptions, futures, swaps and forward foreign currency contracts		(1.5	)
Cash equivalents and other assets less liabilities		39.9
Total		100.0	%

Top five countries (long holdings)1	07/31/11
United States		37.9	%
Japan		4.3
United Kingdom		2.9
Canada		2.5
Mexico		1.6
Total		49.2	%
Top five equity sectors (long holdings)1	07/31/11
Consumer discretionary		5.3	%
Energy		5.0
Financials		4.8
Information technology		3.9
Materials		3.8
Total		22.8	%

Top five countries (short holdings)1	07/31/11
Japan		(1.8	)%
United States		(1.4	)
Canada		(0.3	)
Sweden		(0.3	)
Spain		(0.3	)
Total		(4.1	)%
Top five equity sectors (short holdings)1	07/31/11
Financials		(1.7	)%
Materials		(1.0	)
Industrials		(0.4	)
Energy		(0.4	)
Consumer discretionary		(0.3	)
Total		(3.8	)%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

For a listing of portfolio acronyms that are used throughout the Portfolio statistics, please refer to page 227.

185

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio statistics (unaudited) (concluded)

Top ten equity holdings (long holdings)1,2	07/31/11
Eli Lilly & Co.		0.5	%
Microsoft Corp.		0.5
Chevron Corp.		0.5
KDDI Corp.		0.5
Idemitsu Kosan Co. Ltd.		0.5
TonenGeneral Sekiyu KK		0.4
The Link REIT		0.4
Apple, Inc.		0.4
Lawson, Inc.		0.4
AmerisourceBergen Corp.		0.4
Total		4.5	%

Top ten equity holdings (short holdings)1,2	07/31/11
Daiwa Securities Group, Inc.		(0.3	)%
Nomura Holdings, Inc.		(0.3	)
NGK Insulators Ltd.		(0.3	)
The Dai-ichi Life Insurance Co. Ltd.		(0.3	)
Hennes & Mauritz AB		(0.3	)
Vulcan Materials Co.		(0.2	)
Acciona SA		(0.2	)
SBI Holdings, Inc.		(0.2	)
Range Resources Corp.		(0.2	)
NKSJ Holdings, Inc.		(0.2	)
Total		(2.5	)%

Top ten long-term fixed income holdings (long holdings)1,2	07/31/11
US Treasury Notes, 0.625%, 07/15/14		1.1	%
US Treasury Inflation Index Notes (TIPS), 1.375%, 07/15/18		0.9
FNMA, 3.500%, 03/01/41		0.9
FNMA TBA, 3.500%		0.7
FNMA TBA, 4.000%		0.7
US Treasury Inflation Index Bonds (TIPS), 3.875%, 04/15/29		0.7
US Treasury Inflation Index Notes (TIPS), 0.625%, 04/15/13		0.5
US Treasury Inflation Index Notes (TIPS), 3.000%, 07/15/12		0.5
FHLMC REMIC, Seres 2882, Class UL, 4.500%, 02/15/19		0.5
US Treasury Inflation Index Notes (TIPS), 0.500%, 04/15/15		0.4
Total		6.9	%

¹  Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

²  Figures represent the breakdown of direct investments of PACE Alternative Strategies Investments. Figures would be different if a breakdown of the underlying investment companies was included.

186

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Industry diversification—(unaudited)¹

As a percentage of net assets as of July 31, 2011

Common stocks

Aerospace & defense	0.34	%
Air freight & logistics	0.15
Airlines	0.38
Auto components	0.16
Automobiles	0.46
Beverages	0.29
Biotechnology	0.67
Building products	0.01
Capital markets	0.40
Chemicals	1.39
Commercial banks	1.84
Commercial services & supplies	0.20
Communications equipment	0.34
Computers & peripherals	0.46
Construction & engineering	0.11
Construction materials	0.05
Containers & packaging	0.19
Distributors	0.04
Diversified consumer services	0.13
Diversified financial services	0.48
Diversified telecommunication services	0.43
Electric utilities	0.10
Electrical equipment	0.41
Electronic equipment, instruments & components	0.11
Energy equipment & services	0.25
Food & staples retailing	1.10
Food products	0.86
Gas utilities	0.30
Health care equipment & supplies	0.20
Health care providers & services	0.84
Hotels, restaurants & leisure	0.91
Household durables	0.00	2
Independent power producers & energy traders	0.36
Industrial conglomerates	0.60
Insurance	0.42
Internet & catalog retail	0.56
Internet software & services	0.55
IT services	0.31
Leisure equipment & products	0.25
Life sciences tools & services	0.15
Machinery	0.97
Marine	0.10
Media	0.87
Metals & mining	1.94

Common stocks—(Concluded)

Multiline retail	0.60	%
Oil, gas & consumable fuels	4.74
Paper & forest products	0.19
Personal products	0.02
Pharmaceuticals	1.71
Professional services	0.09
Real estate investment trusts	1.04
Real estate management & development	0.57
Road & rail	0.14
Semiconductors & semiconductor equipment	1.06
Software	1.10
Specialty retail	1.02
Textiles, apparel & luxury goods	0.33
Thrifts & mortgage finance	0.10
Tobacco	0.13
Trading companies & distributors	0.18
Transportation infrastructure	0.03
Wireless telecommunication services	0.89
Total common stocks	34.62

Preferred stocks

Chemicals	0.01
Household products	0.14
Total preferred stocks	0.15
Investment companies	1.18
US government obligations	5.93
Federal home loan mortgage corporation certificates	0.31
Federal national mortgage association certificates	3.96
Collateralized mortgage obligations	3.32
Asset-backed securities	3.64

Corporate notes

Aerospace & defense	0.02
Agriculture	0.07
Auto manufacturers	0.21
Auto parts & equipment	0.05
Banking non-US	1.70
Banking US	0.39
Beverages	0.07
Broadcast	0.01
Building materials	0.17
Cable	0.04

187

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Industry diversification—(unaudited) (concluded)

As a percentage of net assets as of July 31, 2011

Corporate notes—(Continued)

Chemicals	0.18	%
Commercial services	0.24
Consumer products-miscellaneous	0.08
Cosmetics/personal care	0.02
Distribution/wholesale	0.00	2
Diversified banking institution	0.74
Diversified financial services	0.98
Diversified operations	0.04
Electrical composition & equipment	0.03
Electric-generation	0.05
Electric-integrated	0.39
Energy-alternate sources	0.03
Engineering & construction	0.06
Environmental control	0.06
Food-misc/diversified	0.01
Food-retail	0.07
Gas-distribution	0.07
Healthcare-products	0.07
Healthcare-services	0.31
Independent power producer	0.02
Insurance	0.37
Internet	0.05
Machine tools & related products	0.01
Machinery-construction & mining	0.02
Machinery-diversified	0.05
Mining	0.08
Money center banks	0.50
Mortgage banks	0.26
Multimedia	0.01
Office supplies & forms	0.04
Oil & gas	0.33
Packaging & containers	0.09
Paper & forest products	0.05
Pipelines	0.13
Publishing	0.06
Real estate	0.11
Retail-discount	0.02
Retail-drug store	0.07
Retail-major department store	0.05
Savings & loans	0.03
Semiconductors	0.03
Software	0.03
Steel-producers	0.11

Corporate notes—(Concluded)

Telecommunications	1.05	%
Transportation	0.02
Water	0.12
Total corporate notes	9.87
Municipal bonds and notes	0.93
Non-US government obligations	2.67
Time deposits	4.79
Certificates of deposit	1.46
Short-term US government obligations	16.69
Repurchase agreement	12.56

Options

Call options purchased	0.42
Put options purchased	0.78
Total options	1.20

Investments sold short
Common stocks

Airlines	(0.04	)
Biotechnology	(0.11	)
Capital markets	(0.83	)
Commercial banks	(0.17	)
Construction & engineering	(0.07	)
Construction materials	(0.24	)
Diversified telecommunication services	(0.06	)
Electric utilities	(0.23	)
Electrical equipment	(0.03	)
Energy equipment & services	(0.12	)
Household durables	(0.02	)
Insurance	(0.69	)
Machinery	(0.28	)
Metals & mining	(0.71	)
Multi-utilities	(0.02	)
Oil, gas & consumable fuels	(0.27	)
Paper & forest products	(0.04	)
Semiconductors & semiconductor equipment	(0.09	)
Specialty retail	(0.27	)
Total common stocks	(4.29	)
Federal national mortgage association certificates sold short	(0.71	)
Total investments sold short	(5.00	)
Other assets in excess of liabilities	1.72
Net assets	100.00	%

¹  Figures represent the industry breakdown of direct investments of PACE Alternative Strategies Investments. Figures would be different if a breakdown of the underlying investment companies' industry diversification was included.

²  Weighting represents less than 0.005% of the Portolio's net assets as of July 31, 2011.

188

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—34.62%
Australia—0.96%
Asciano Ltd.		11,544	$	21,133
Brambles Ltd.		87,172		662,681
Caltex Australia Ltd.		96,180		1,126,707
CFS Retail Property Trust		835,990		1,587,475
GrainCorp Ltd.		5,658		48,864
Incitec Pivot Ltd.		57,618		250,121
Lynas Corp. Ltd.*		210,659		495,691
National Australia Bank Ltd.		23,916		629,446
Rio Tinto Ltd.		1,431		125,359
TABCORP Holdings Ltd.		92,162		325,643
Total Australia common stocks				5,273,120
Bermuda—0.60%
Arch Capital Group Ltd.*		19,645		664,001
Asian Citrus Holdings Ltd.		79,202		68,972
Bunge Ltd.		9,527		655,553
Cheung Kong Infrastructure Holdings Ltd.		40,000		230,450
China Green (Holdings) Ltd.		50,851		28,145
China Yurun Food Group Ltd.		24,350		76,345
Cosan Ltd., Class A		8,382		103,350
Cosco Pacific Ltd.		33,000		53,441
Digital China Holdings Ltd.		11,000		18,726
GOME Electrical Appliances Holdings Ltd.		927,000		436,789
Huabao International Holdings Ltd.		28,000		23,646
Lazard Ltd., Class A		6,608		222,029
Luk Fook Holdings International Ltd.		4,000		20,982
Orient Overseas International Ltd.		93,000		530,742
Shangri-La Asia Ltd.		53,444		138,018
Trinity Ltd.		16,000		17,783
Total Bermuda common stocks				3,288,972
Brazil—0.15%
Anhanguera Educacional Participacoes SA		17,600		341,480
Brasil Foods SA		4,007		76,220
Cosan SA Industria e Comercio		6,453		99,030
JBS SA*		8,147		24,375
SLC Agricola SA		8,222		91,188
Vale SA, ADR		5,370		174,203
Total Brazil common stocks				806,496
Canada—2.50%
Agrium, Inc.		2,561		224,109
Alimentation Couche Tard, Inc., Class B		10,200		321,869
Barrick Gold Corp.		12,180		579,403
Canadian National Railway Co.		468		35,091
Canadian Natural Resources Ltd.		10,600		427,074
Canadian Tire Corp. Ltd., Class A		6,900		421,893
Cenovus Energy, Inc.		19,149		736,138
CGI Group, Inc., Class A*		6,000		128,986
Empire Co. Ltd.		7,700		467,101
First Quantum Minerals Ltd.		2,201		305,138
Genworth MI Canada, Inc.		21,900		542,314

	Number of shares		Value
Common stocks—(Continued)
Canada—(Concluded)
George Weston Ltd.		28,600	$	1,984,594
Goldcorp, Inc.		17,241		824,292
IAMGOLD Corp.		16,776		335,520
Ivanhoe Mines Ltd.*		11,682		306,419
Kinross Gold Corp.		36,728		600,136
Pacific Rubiales Energy Corp.		27,010		776,843
Potash Corp. of Saskatchewan, Inc.		13,390		773,031
Quadra FNX Mining Ltd.*		24,947		397,136
Research In Motion Ltd. (RIM)*		30,600		766,401
Sherritt International Corp.		54,800		342,411
Sino-Forest Corp.*		95,800		731,948
Teck Resources Ltd., Class B		1,352		66,988
Tim Hortons, Inc.		20,600		988,550
Yamana Gold, Inc.		16,376		212,561
Yellow Media, Inc.		190,400		414,498
Total Canada common stocks				13,710,444
Cayman Islands—0.63%
3SBio, Inc., ADR*		1,200		19,320
Alibaba.com Ltd.		56,786		79,282
ASM Pacific Technology Ltd.		18,649		204,290
AutoNavi Holdings Ltd., ADR*		2,200		36,432
Baidu, Inc., ADR*		3,312		520,216
Belle International Holdings Ltd.		138,000		303,010
China Kanghui Holdings, Inc., ADR*		1,500		32,685
China Modern Dairy Holdings Ltd.*		77,489		23,686
China ZhengTong Auto Services Holdings Ltd.*		3,000		3,958
Ctrip.com International Ltd., ADR*		2,220		102,342
Daphne International Holdings Ltd.		40,000		42,930
ENN Energy Holdings Ltd.		20,000		67,358
Global Education & Technology Group Ltd., ADR*		3,500		17,570
Hengan International Group Co. Ltd.		12,700		110,573
Hengdeli Holdings Ltd.		32,000		15,924
Home Inns & Hotels Management, Inc., ADR*		700		26,978
Intime Department Store Group Co. Ltd.		44,000		73,965
Kingdee International Software Group Co. Ltd.		332,000		194,267
Lifestyle International Holdings Ltd.		9,500		31,176
Lijun International Pharmaceutical (Holding) Co. Ltd.		149,000		26,374
Minth Group Ltd.		31,000		49,726
NetEase.com, Inc., ADR*		450		22,734
Parkson Retail Group Ltd.		60,315		85,008
PCD Stores Group Ltd.		94,000		22,734
Sands China Ltd.*		132,800		401,243
Simcere Pharmaceutical Group, ADR*		4,800		52,608
Sun King Power Electronics Group Ltd.*		6,000		853
TAL Education Group, ADR*		1,200		15,300
Tencent Holdings Ltd.		10,986		286,713

189

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Cayman Islands—(Concluded)
The United Laboratories International Holdings Ltd.		211,500	$	218,261
Towngas China Co. Ltd.		34,000		18,164
Trauson Holdings Co. Ltd.		38,000		14,653
Wynn Macau Ltd.		92,800		325,483
Total Cayman Islands common stocks				3,445,816
Chile—0.21%
Banco Santander Chile, ADR		1,317		122,454
CAP SA		2,777		127,469
Cencosud SA		19,133		126,257
Empresa Nacional de Electricidad SA		55,105		98,766
Empresas CMPC SA		1,892		90,936
Empresas COPEC SA		5,383		95,600
Enersis SA, ADR		4,306		93,828
Lan Airlines SA, ADR		4,355		114,014
S.A.C.I. Falabella		13,314		128,629
Sociedad Quimica y Minera de Chile SA, ADR		2,374		152,696
Total Chile common stocks				1,150,649
China—0.36%
Angang Steel Co. Ltd., Class H		42,500		43,845
Anhui Conch Cement Co. Ltd., Class H		45,850		214,026
Bank of China Ltd., Class H		75,000		34,452
BYD Co. Ltd., Class H*		14,202		47,101
Changsha Zoomlion Heavy Industry Science and Technology Development Co. Ltd., Class H		5,460		10,801
China Construction Bank Corp., Class H		359,110		288,630
China Merchants Bank Co. Ltd., Class H		24,055		56,952
China National Building Material Co. Ltd., Class H		2,216		4,435
China Pacific Insurance Group Co. Ltd., Class H		8,000		30,273
China Shenhua Energy Co. Ltd., Class H		43,000		215,188
China Shipping Development Co. Ltd., Class H		6,000		4,685
China Suntien Green Energy Corp., Class H		7,000		1,971
China Telecom Corp. Ltd., Class H		148,000		96,716
Chongqing Machinery & Electric Co. Ltd., Class H		92,000		26,972
Dongfeng Motor Group Co. Ltd., Class H		16,000		31,756
Huaneng Power International, Inc., Class H		106,000		52,005
Industrial & Commercial Bank of China, Class H		103,020		78,646
Jiangsu Expressway Co. Ltd., Class H		31,000		29,795

	Number of shares		Value
Common stocks—(Continued)
China—(Concluded)
PetroChina Co. Ltd., Class H		56,000	$	79,604
Ping An Insurance (Group) Co. of China Ltd., Class H		10,910		106,537
Qingling Motors Co. Ltd., Class H		92,000		31,377
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		96,000		131,438
Shenzhen Expressway Co. Ltd., Class H		104,000		54,760
Sinopec Shanghai Petrochemical Co. Ltd., Class H		152,000		63,236
Sinopharm Group Co., Class H		5,600		16,280
Weichai Power Co. Ltd., Class H		10,000		54,624
Wumart Stores, Inc., Class H		2,406		6,042
Zhuzhou CSR Times Electric Co. Ltd., Class H		8,000		23,697
Zijin Mining Group Co. Ltd.		75,000		40,610
ZTE Corp., Class H		38,668		121,020
Total China common stocks				1,997,474
Colombia—0.05%
Almacenes Exito SA		3,645		48,793
Bancolombia SA, ADR		587		38,918
Cementos Argos SA		5,949		36,873
Ecopetrol SA, ADR		710		29,997
Grupo de Inversiones Suramericana		3,104		62,850
Interconexion Electrica SA		5,376		37,010
Inversiones Argos SA		3,500		35,867
Total Colombia common stocks				290,308
Denmark—0.19%
AP Moller - Maersk A/S, Class B		1		7,643
Pandora A/S		36,662		1,039,998
Total Denmark common stocks				1,047,641
France—0.56%
Aeroports de Paris (ADP)		342		31,013
Air Liquide SA		3,664		502,111
Alcatel-Lucent, ADR*		28,800		116,640
Christian Dior SA		1,728		275,311
Compagnie de Saint-Gobain		499		28,733
Peugeot SA		8,170		308,888
Safran SA		18,480		764,746
Societe Generale SA		9,871		487,037
Vallourec SA		4,919		498,986
Vinci SA		545		31,490
Total France common stocks				3,044,955
Germany—0.85%
Aixtron SE		6,370		172,064
Asian Bamboo AG		1,019		33,308
Bayerische Motoren Werke (BMW) AG		6,435		645,211
Commerzbank AG*		284,051		1,079,007
Deutsche Lufthansa AG		14,122		284,870
Deutsche Post AG		1,865		32,964
K+S AG		3,729		298,592

190

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Germany—(Concluded)
Kabel Deutschland Holding AG*		5,733	$	323,281
Linde AG		4,025		722,536
Siemens AG		5,599		718,694
Symrise AG		12,494		341,727
Total Germany common stocks				4,652,254
Hong Kong—0.92%
Beijing Enterprises Holdings Ltd.		20,500		103,590
China Agri-Industries Holdings Ltd.		198,143		222,917
China Mobile Ltd.		18,500		184,322
China Overseas Land & Investment Ltd.		31,422		70,877
China Resources Enterprise Ltd.		16,000		69,530
China Unicom (Hong Kong) Ltd.		33,000		66,043
CNOOC Ltd.		80,000		178,222
Galaxy Entertainment Group Ltd.*		11,000		28,643
Hang Lung Properties Ltd.		25,671		95,186
Hong Kong Exchanges & Clearing Ltd.		8,348		171,961
Hutchison Whampoa Ltd.		2,317		26,951
Lenovo Group Ltd.		62,000		39,283
PCCW Ltd.		704,000		307,387
SJM Holdings Ltd.		439,000		1,110,068
The Link REIT		626,000		2,188,864
Wheelock & Co. Ltd.		41,000		176,695
Total Hong Kong common stocks				5,040,539
India—0.05%
Infosys Ltd., ADR		2,000		124,440
Jain Irrigation Systems Ltd.		3,329		13,046
JSW Steel Ltd.		2,084		36,435
Sterlite Industries (India) Ltd.		13,464		48,528
Tata Steel Ltd.		3,680		46,846
Total India common stocks				269,295
Indonesia—0.08%
PT Bumi Resources Tbk		503,500		180,097
PT United Tractors Tbk		74,121		237,348
Total Indonesia common stocks				417,445
Ireland—0.15%
Warner Chilcott PLC, Class A1		39,200		823,984
Isle of Man—0.02%
Genting Singapore PLC*		83,000		130,570
Israel—0.02%
Israel Chemicals Ltd.		7,617		127,448
Italy—0.31%
Eni SpA		58,566		1,269,793
Fiat Industrial SpA*		6,603		87,192
Prysmian SpA		18,317		338,193
Total Italy common stocks				1,695,178
Japan—4.31%
Alfresa Holdings Corp.		5,500		225,241
Amada Co. Ltd.		45,000		349,681

	Number of shares		Value
Common stocks—(Continued)
Japan—(Concluded)
Coca-Cola West Co. Ltd.		6,600	$	131,966
Cosmo Oil Co. Ltd.		106,000		319,018
Daito Trust Construction Co. Ltd.		19,500		1,876,959
DeNA Co. Ltd.		10,400		518,878
Denso Corp.		10,800		385,074
Dowa Holdings Co. Ltd.		59,000		396,244
Electric Power Development Co. Ltd.		61,100		1,610,739
Hankyu Hanshin Holdings, Inc.		5,761		23,182
Idemitsu Kosan Co. Ltd.		22,100		2,563,494
Inpex Corp.		55		426,922
Japan Retail Fund Investment Corp.		148		231,309
Japan Tobacco, Inc.		107		487,136
JX Holdings, Inc.		107,000		772,879
KDDI Corp.		345		2,566,948
Komatsu Ltd.		1,217		37,971
Kubota Corp.		38,000		344,509
Lawson, Inc.		38,000		2,055,162
Medipal Holdings Corp.		30,400		287,284
Miraca Holdings, Inc.		7,000		294,398
Mitsubishi Corp.		1,185		31,807
Mitsubishi Electric Corp.		1,817		21,455
Nippon Yusen Kabushiki Kaisha		4,920		18,068
Nomura Research Institute Ltd.		16,800		400,672
Oracle Corp. Japan		23,100		775,522
Osaka Gas Co. Ltd.		400,000		1,583,821
Santen Pharmaceutical Co. Ltd.		16,900		680,130
Softbank Corp.		24,000		936,617
Sumitomo Metal Mining Co. Ltd.		2,484		44,035
Sumitomo Mitsui Financial Group, Inc.		18,900		596,663
TonenGeneral Sekiyu KK		179,000		2,249,131
Toyota Tsusho Corp.		1,586		27,801
Yamada Denki Co. Ltd.		4,650		370,982
Total Japan common stocks				23,641,698
Jersey—0.14%
Shire PLC		22,484		778,662
Luxembourg—0.16%
ArcelorMittal		2,617		81,343
Evraz Group SA, GDR2,*		1,461		48,797
Millicom International Cellular SA, SDR		6,161		737,330
Total Luxembourg common stocks				867,470
Malaysia—0.04%
UEM Land Holdings Bhd*		262,200		229,620
Marshall Islands—0.03%
Scorpio Tankers, Inc.*		24,100		178,099
Mexico—0.01%
Grupo Mexico SAB de CV, Series B		18,564		68,484
Netherlands—0.14%
ASML Holding N.V.		11,051		392,905
Koninklijke Boskalis Westminster N.V.		8,170		343,151

191

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Netherlands—(Concluded)
Koninklijke Philips Electronics N.V.		994	$	24,755
Total Netherlands common stocks				760,811
Norway—0.10%
DnB NOR ASA		36,947		536,354
Papua New Guinea—0.09%
Oil Search Ltd.		66,981		502,712
Philippines—0.24%
Aboitiz Power Corp.		109,182		84,120
Alliance Global Group, Inc.*		392,111		107,816
Ayala Corp.		7,851		60,720
Ayala Land, Inc.		322,569		128,342
Banco de Oro Unibank, Inc.		72,258		109,664
Bank of the Philippine Islands		42,161		59,675
Energy Development Corp.		720,709		116,007
Globe Telecom, Inc.		452		10,278
Jollibee Foods Corp.		20,840		43,042
Manila Electric Co.		12,890		85,345
Metropolitan Bank & Trust Co.		86,564		158,014
Philippine Long Distance Telephone Co.		1,820		102,892
Philippine Long Distance Telephone Co., ADR		2,241		126,841
SM Investments Corp.		6,045		77,822
SM Prime Holdings, Inc.		217,487		59,532
Total Philippines common stocks				1,330,110
Poland—0.01%
KGHM Polska Miedz SA		756		51,759
Portugal—0.18%
Galp Energia, SGPS SA, B Shares		30,594		689,193
Jeronimo Martins, SGPS SA		13,971		272,721
Total Portugal common stocks				961,914
Russia—0.81%
Gazprom, ADR*		114,970		1,685,460
LUKOIL, ADR		11,900		799,085
Mining and Metallurgical Co. Norilsk Nickel, ADR3,*		19,860		530,635
Mining and Metallurgical Co. Norilsk Nickel, ADR4,*		736		19,681
Novolipetsk Steel (NLMK), GDR2		1,317		49,387
Rosneft Oil Co., GDR2		46,000		392,380
Sberbank of Russia, ADR*		36,250		541,937
Uralkali, GDR2,3,*		4,841		238,279
Uralkali, GDR2,4,*		429		21,133
VTB Bank OJSC, GDR2		27,500		165,275
Total Russia common stocks				4,443,252
Singapore—0.94%
Ascendas Real Estate Investment Trust (A-REIT)		266,000		450,467
Avago Technologies Ltd.1		42,100		1,415,823
DBS Group Holdings Ltd.		36,728		472,556

	Number of shares		Value
Common stocks—(Continued)
Singapore—(Concluded)
First Resources Ltd.		58,310	$	68,375
Fraser and Neave Ltd.		105,000		522,046
Jardine Cycle & Carriage Ltd.		6,000		240,488
StarHub Ltd.		55,000		128,848
UOL Group Ltd.		109,000		467,432
Wilmar International Ltd.		34,586		168,777
Yangzijiang Shipbuilding Holdings Ltd.		998,000		1,201,240
Total Singapore common stocks				5,136,052
South Africa—0.10%
AngloGold Ashanti Ltd., ADR		13,266		556,376
South Korea—0.38%
Hyundai Motor Co.		1,870		416,036
Samsung C&T Corp.		2,719		216,123
Samsung Electronics Co. Ltd.		1,027		820,821
Samsung Heavy Industries Co. Ltd.		14,920		606,419
Total South Korea common stocks				2,059,399
Spain—0.03%
ACS, Actividades de Contruccion y Servicios SA		681		28,700
Iberdrola SA		14,012		113,620
Total Spain common stocks				142,320
Sweden—0.11%
Sandvik AB		1,600		25,426
Swedbank AB, A Shares		33,569		587,511
Total Sweden common stocks				612,937
Switzerland—0.47%
ABB Ltd.*		1,463		34,981
Adecco SA*		551		33,028
Barry Callebaut AG*		377		397,635
Geberit AG*		181		42,656
Lonza Group AG*		5,676		482,780
Nestle SA		1,517		96,503
Novartis AG		8,465		518,926
Swiss Re Ltd.*		9,554		533,668
Syngenta AG*		418		133,310
Temenos Group AG*		13,650		326,783
Total Switzerland common stocks				2,600,270
Taiwan—0.19%
Delta Electronics, Inc.		53,997		190,981
Delta Electronics, Inc., GDR2		13,706		242,411
HON HAI Precision Industry Co. Ltd.		43,677		124,646
HTC Corp.		8,556		254,529
MediaTek, Inc.		4,989		44,646
Synnex Technology International Corp.		9,290		23,839
Taiwan Semiconductor Manufacturing Co. Ltd.		69,640		173,864
Total Taiwan common stocks				1,054,916

192

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
Turkey—0.16%
Akbank T.A.S.		18,652	$	81,391
Arcelik AS		4,630		21,172
BIM Birlesik Magazalar AS		727		24,763
Coca-Cola Icecek AS		248		3,565
Enka Insaat ve Sanayi AS		8,413		23,048
Eregli Demir ve Celik Fabrikalari TAS (Erdemir)		22,302		52,623
Haci Omer Sabanci Holding AS		16,628		65,236
Koc Holding AS		15,533		65,030
Tupras-Turkiye Petrol Rafinerileri AS		2,558		62,235
Turk Hava Yollari Anonim Ortakligi (THY)*		28,131		52,505
Turk Telekomunikasyon AS		12,801		54,524
Turkcell Iletisim Hizmet AS (Turkcell), ADR*		6,040		77,312
Turkiye Garanti Bankasi AS		38,789		171,071
Turkiye Halk Bankasi AS, Class C		4,327		30,410
Turkiye Is Bankasi (Isbank)		24,158		69,283
Yapi ve Kredi Bankasi AS*		3,166		7,569
Total Turkey common stocks				861,737
United Kingdom—1.91%
Aberdeen Asset Management PLC		100,801		363,052
Anglo American PLC		1,985		93,544
Antofagasta PLC		2,660		60,920
ARM Holdings PLC, ADR		9,300		267,747
AstraZeneca PLC		38,197		1,855,939
BG Group PLC		33,672		792,029
BHP Billiton PLC		16,420		616,922
Chemring Group PLC		24,260		217,625
Cookson Group PLC		37,537		393,574
Croda International PLC		18,474		572,777
Eurasian Natural Resources Corp. PLC		3,828		48,037
GKN PLC		98,303		359,824
Jazztel PLC*		70,710		438,052
Kazakhmys PLC		2,251		49,273
Michael Page International PLC		56,855		465,632
Pearson PLC		30,703		588,737
Rexam PLC		174,254		1,058,307
Rio Tinto PLC		2,298		160,420
Schroders PLC		4,762		126,656
Telecity Group PLC*		31,194		281,852
The Weir Group PLC		18,391		636,234
Tullow Oil PLC		24,305		487,009
Vedanta Resources PLC		1,292		37,200
Xstrata PLC		23,866		501,463
Total United Kingdom common stocks				10,472,825
United States—15.46%
3M Co.		1,433		124,872
ACCO Brands Corp.*		51,600		442,212
Acuity Brands, Inc.		11,143		542,553
Advance Auto Parts, Inc.1		28,500		1,566,645
AGCO Corp.*		1,256		59,560

	Number of shares		Value
Common stocks—(Continued)
United States—(Continued)
Alleghany Corp.*		715	$	235,528
Altera Corp.		19,364		791,600
Amazon.com, Inc.*		3,700		823,324
American International Group, Inc.1,*		16,700		479,290
AmerisourceBergen Corp.1		53,000		2,030,430
AMETEK, Inc.		8,300		352,750
Anadarko Petroleum Corp.		6,945		573,379
Annaly Capital Management, Inc.1		71,600		1,201,448
Apache Corp.		2,900		358,788
Apple, Inc.*		5,311		2,073,839
Arbitron, Inc.		28,550		1,116,876
Archer-Daniels-Midland Co.		5,100		154,938
AsiaInfo-Linkage, Inc.*		700		10,696
AT&T, Inc.		19,580		572,911
AutoZone, Inc.1,*		4,900		1,398,705
Bank of America Corp.		34,200		332,082
Belden, Inc.		23,000		847,550
Berkshire Hathaway, Inc., Class B*		3,700		274,429
Biogen Idec, Inc.1,*		17,500		1,782,725
BMC Software, Inc.*		2,900		125,338
C.H. Robinson Worldwide, Inc.		4,300		310,933
Carlisle Cos., Inc.		20,000		864,600
Caterpillar, Inc.		1,606		158,657
Celgene Corp.*		9,166		543,544
CenturyLink, Inc.		13,225		490,780
Cephalon, Inc.1,*		1,600		127,904
CF Industries Holdings, Inc.		7,697		1,195,498
Chevron Corp.1		24,900		2,590,098
Chipotle Mexican Grill, Inc.1,*		2,100		681,618
Citigroup, Inc.1		43,879		1,682,321
Citrix Systems, Inc.*		4,900		352,996
Coach, Inc.		3,200		206,592
Coca-Cola Enterprises, Inc.1		45,200		1,270,572
ConocoPhillips1		3,000		215,970
CONSOL Energy, Inc.		8,500		455,600
CSX Corp.		4,692		115,282
Cummins, Inc.		3,000		314,640
Deere & Co.		690		54,172
Deltic Timber Corp.		3,899		202,163
Dendreon Corp.*		13,187		486,600
Diebold, Inc.		6,300		190,512
eBay, Inc.*		7,400		242,350
Edwards Lifesciences Corp.1,*		3,600		256,860
Eli Lilly & Co.1		72,700		2,784,410
EMC Corp.*		8,000		208,640
Emerson Electric Co.		1,904		93,467
Endo Pharmaceuticals Holdings, Inc.*		7,100		264,475
EOG Resources, Inc.		8,500		867,000
Exxon Mobil Corp.1		12,400		989,396
FedEx Corp.		4,549		395,217
Fiserv, Inc.*		14,400		869,184
Flowserve Corp.		370		36,771
FMC Corp.		3,300		288,981

193

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Common stocks—(Continued)
United States—(Continued)
Forest Laboratories, Inc.*		3,500	$	129,710
Freeport-McMoRan Copper & Gold, Inc.		5,438		287,996
GATX Corp.		17,678		697,044
General Electric Co.		5,774		103,412
General Mills, Inc.		4,349		162,435
General Motors Co.1,*		37,000		1,024,160
Gilead Sciences, Inc.1,*		12,900		546,444
Goodrich Corp.		2,400		228,336
Google, Inc., Class A*		946		571,091
Green Mountain Coffee Roasters, Inc.*		6,600		686,070
Halliburton Co.		17,509		958,268
Hologic, Inc.*		11,000		204,270
Honeywell International, Inc.		2,474		131,369
Intrepid Potash, Inc.*		1,193		39,667
Intuitive Surgical, Inc.*		1,200		480,660
J.C. Penney Co., Inc.1		24,800		762,848
Joy Global, Inc.		3,900		366,288
JPMorgan Chase & Co.		6,100		246,745
KBR, Inc.		4,874		173,758
KeyCorp1		212,400		1,707,696
L-3 Communications Holdings, Inc.		688		54,435
Lear Corp.		2,100		102,900
Liberty Global, Inc., Series C*		21,800		871,346
Limited Brands, Inc.1		19,600		742,056
Lockheed Martin Corp.		728		55,131
Lorillard, Inc.1		2,200		233,684
Lululemon Athletica, Inc.*		3,400		205,836
Macy's, Inc.1		54,900		1,584,963
Mattel, Inc.		51,200		1,364,992
Maxim Integrated Products, Inc.		37,300		856,408
Mead Johnson Nutrition Co., Class A		7,673		547,622
Microsoft Corp.1		96,500		2,644,100
Molycorp, Inc.*		12,147		772,914
Monsanto Co.		15,003		1,102,420
Netflix, Inc.1,*		6,400		1,702,336
Newmont Mining Corp.		11,996		667,098
Nordstrom, Inc.		4,100		205,656
Occidental Petroleum Corp.		8,462		830,799
ON Semiconductor Corp.*		52,243		453,992
OpenTable, Inc.*		3,945		279,543
Pall Corp.		4,000		198,320
Peabody Energy Corp.		2,800		160,916
Penn National Gaming, Inc.*		9,172		384,582
PepsiCo, Inc.		3,098		198,396
Pfizer, Inc.		39,589		761,692
Pharmaceutical Product Development, Inc.1		11,000		317,130
Plains Exploration & Production Co.*		10,500		409,605
Precision Castparts Corp.		379		61,163
Priceline.com, Inc.*		1,000		537,650
QUALCOMM, Inc.		11,277		617,754
Ralcorp Holdings, Inc.*		7,300		631,450

	Number of shares		Value
Common stocks—(Concluded)
United States—(Concluded)
Range Resources Corp.		5,700	$	371,412
Raytheon Co.		1,914		85,613
RealD, Inc.*		18,432		285,327
Safeway, Inc.1		31,400		633,338
Salesforce.com, Inc.*		3,600		520,956
SEACOR Holdings, Inc.		3,850		386,386
Sirius XM Radio, Inc.*		207,900		438,669
Skyworks Solutions, Inc.*		8,400		212,604
Smithfield Foods, Inc.*		5,724		126,042
Sohu.com, Inc.*		2,423		218,312
Sotheby's		7,558		320,081
Southern Copper Corp.		1,909		65,211
Southwest Airlines Co.1		163,700		1,630,452
Teavana Holdings, Inc.*		200		5,640
Teradata Corp.*		3,660		201,154
The Boeing Co.		1,536		108,242
The Charles Schwab Corp.		29,377		438,599
The Goldman Sachs Group, Inc.		7,735		1,043,993
The Mosaic Co.		4,665		329,909
Tiffany & Co.		2,600		206,934
Time Warner, Inc.		15,793		555,282
Tyson Foods, Inc., Class A		6,976		122,499
Union Pacific Corp.		5,835		597,971
United Parcel Service, Inc., Class B		1,599		110,683
United Technologies Corp.		1,722		142,650
UnitedHealth Group, Inc.1		35,400		1,756,902
Urban Outfitters, Inc.*		16,071		522,950
US Bancorp		10,400		271,024
Valero Energy Corp.1		36,500		916,880
Verizon Communications, Inc.1		9,300		328,197
Vertex Pharmaceuticals, Inc.*		2,700		140,022
Virgin Media, Inc.		18,486		489,140
VMware, Inc., Class A*		5,700		571,938
Walter Energy, Inc.		2,018		247,346
Watson Pharmaceuticals, Inc.1,*		7,000		469,910
Websense, Inc.*		7,300		165,564
Wells Fargo & Co.		60,949		1,702,915
Weyerhaeuser Co.		1,224		24,468
Whiting Petroleum Corp.*		5,700		334,020
Wynn Resorts Ltd.		1,900		291,992
Zep, Inc.		12,200		228,750
Total United States common stocks				84,765,404
Total common stocks (cost—$182,753,055)				189,825,769
Preferred stocks—0.15%
Brazil—0.01%
Vale Fertilizantes SA		4,143		63,767
Germany—0.14%
Henkel AG & Co. KGaA		11,487		775,643
Total preferred stocks (cost—$767,865)				839,410

194

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Number of shares		Value
Investment companies—1.18%
United States—1.18%
Consumer Discretionary Select Sector SPDR Fund		13,877	$	549,807
Health Care Select Sector SPDR Fund		85,477		2,919,039
iShares MSCI South Korea Index Fund		39,635		2,603,227
Market Vectors Gold Miners ETF		6,699		381,441
Total investment companies (cost—$6,332,461)				6,453,514
	Face amount5
US government obligations—5.93%
US Treasury Inflation Index Bonds (TIPS) 1.750%, due 01/15/28		1,682,281		1,885,733
2.125%, due 02/15/40		1,484,326		1,746,635
2.125%, due 02/15/41		515,885		609,453
2.375%, due 01/15/25		1,450,294		1,759,955
3.875%, due 04/15/29		2,638,714		3,846,957
US Treasury Inflation Index Notes (TIPS) 0.500%, due 04/15/15		1,928,681		2,041,990
0.625%, due 04/15/13		2,878,548		2,973,450
1.250%, due 07/15/20		1,346,878		1,477,170
1.375%, due 07/15/18		4,444,428		4,961,093
1.625%, due 01/15/15		673,252		739,315
2.375%, due 01/15/17		1,501,050		1,748,372
3.000%, due 07/15/12		2,638,776		2,740,411
US Treasury Notes 0.625%, due 07/15/14		6,000,000		6,013,140
Total US government obligations (cost—$31,425,599)				32,543,674
Federal home loan mortgage corporation certificates**—0.31%
FHLMC 4.500%, due 05/01/23		17,216		18,316
5.000%, due 11/01/16		7,070		7,587
5.000%, due 01/01/17		13,989		15,041
5.000%, due 02/01/17		33,800		36,379
5.000%, due 03/01/17		25,523		27,493
5.000%, due 04/01/17		59,059		63,865
5.000%, due 09/01/17		168,315		181,958
5.000%, due 10/01/17		371,757		401,217
5.000%, due 11/01/17		290,139		311,771
5.000%, due 12/01/17		80,033		86,544
5.000%, due 01/01/18		35,731		38,637
5.000%, due 02/01/18		119,826		129,510
5.000%, due 03/01/18		61,775		66,800
5.000%, due 04/01/18		49,949		54,011
5.000%, due 05/01/18		19,404		20,983
5.000%, due 06/01/18		20,068		21,700
5.000%, due 07/01/18		50,752		54,882
5.000%, due 08/01/18		18,577		20,090

	Face amount5		Value
Federal home loan mortgage corporation certificates**—(Concluded)
5.000%, due 10/01/18		8,244	$	8,915
5.000%, due 11/01/18		13,605		14,712
5.500%, due 01/01/20		115,416		125,558
Total federal home loan mortgage corporation certificates (cost—$1,672,064)				1,705,969
Federal national mortgage association certificates**—3.96%
FNMA 2.800%, due 03/01/18		298,123		300,059
3.375%, due 11/01/20		298,464		299,746
3.416%, due 10/01/20		199,003		200,517
3.500%, due 03/01/41		4,964,470		4,859,807
3.632%, due 12/01/20		99,517		101,477
3.840%, due 05/01/18		210,000		221,553
4.000%, due 12/01/40		66,403		67,535
4.250%, due 01/01/21		297,972		315,570
4.270%, due 01/01/21		298,011		315,981
4.290%, due 02/01/21		198,917		210,987
4.301%, due 01/01/21		298,762		317,823
5.000%, due 09/01/17		22,676		24,517
5.000%, due 10/01/17		200,714		217,014
5.000%, due 12/01/17		1,061,837		1,148,062
5.000%, due 01/01/18		513,908		555,641
5.000%, due 02/01/18		544,745		588,980
5.000%, due 03/01/18		338,209		365,674
5.000%, due 04/01/18		511,535		551,104
5.000%, due 05/01/18		41,392		44,753
5.000%, due 06/01/18		40,667		43,970
5.000%, due 01/01/20		12,277		13,282
6.000%, due 03/01/32		147		164
6.000%, due 05/01/33		5,218		5,810
6.000%, due 12/01/33		2,992		3,328
6.000%, due 08/01/35		503		557
FNMA ARM 2.663%, due 11/01/34		781,719		826,088
2.678%, due 04/01/37		1,838,988		1,936,034
FNMA TBA 3.500%		4,000,000		4,111,875
4.000%		4,000,000		4,052,187
Total federal national mortgage association certificates (cost—$21,359,823)				21,700,095
Collateralized mortgage obligations—3.32%
American Home Mortgage Assets, Series 2006-3, Class 1A1 1.233%, due 10/25/466		619,017		385,114
Series 2006-3, Class 2A11 1.203%, due 10/25/466		668,910		354,682
Series 2006-4, Class 1A11 0.377%, due 10/25/466		1,077,625		559,744
Series 2007-1, Class A1 0.963%, due 02/25/476		652,244		317,636

195

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount5		Value
Collateralized mortgage obligations—(Continued)
American Home Mortgage Investment Trust, Series 2004-3, Class 1A 0.557%, due 10/25/346		22,610	$	20,433
Series 2005-4, Class 1A1 0.477%, due 11/25/456		803,995		510,038
Arkle Master Issuer PLC, Series 2010-2A, Class 1A1 1.661%, due 05/17/606,7		500,000		499,797
Series 2011-1A, Class 2A 1.534%, due 05/17/606,7		500,000		500,350
Banc of America Funding Corp., Series 2007-D, Class 1A5 0.466% , due 06/20/476		600,000		307,496
Citimortgage Alternative Loan Trust, Series 2006-A7, Class 1A12 6.000% , due 12/25/36		934,779		674,019
Countrywide Alternative Loan Trust, Series 2005-61, Class 1A1 0.447%, due 12/25/356		917,024		664,167
Series 2006-23CB, Class 1A6 6.000%, due 08/25/36		255,945		175,282
Series 2006-5T2, Class A3 6.000%, due 04/25/36		690,014		517,561
Countrywide Home Loan Mortgage Pass Through Trust. Series 2007-14, Class A19 6.000% , due 09/25/37		566,117		524,780
Credit Suisse Mortgage Capital Certificates, Series 2006-8, Class 4A1 6.500% , due 10/25/21		829,503		639,192
Downey Savings & Loan Association Mortgage Loan Trust, Series 2004-AR2, Class A2A 0.577%, due 11/19/446		1,047,947		719,513
Series 2006-AR2, Class 2A1A 0.387%, due 11/19/376		505,951		326,725
FHLMC Multifamily Structured Pass Through Certificates**, Series K011, Class A2 4.084% , due 11/25/206		400,000		416,700
FHLMC REMIC**, Seres 2882, Class UL 4.500% , due 02/15/19		2,419,397		2,525,335
FNMA REMIC**, Series 2009-70, Class AL 5.000% , due 08/25/19		1,296,240		1,402,953
Fosse Master Issuer PLC, Series 2011-1A, Class A2 1.650% , due 10/18/546,7		500,000		500,422
Greenpoint Mortgage Funding Trust, Series 2007-AR3, Class A1 0.407% , due 06/25/376		512,822		351,621

	Face amount5		Value
Collateralized mortgage obligations—(Concluded)
Harborview Mortgage Loan Trust, Series 2005-9, Class 2A1A 0.526% , due 06/20/356		498,649	$	397,570
Holmes Master Issuer PLC, Series 2010-1A, Class A2 1.649% , due 10/15/546,7		100,000		100,145
Lehman Mortgage Trust, Series 2006-8, Class 2A1 0.607% , due 12/25/366		1,172,614		546,621
NCUA Guaranteed Notes, Series 2011-R4, Class 1A 0.581%, due 03/06/206		455,532		455,532
Series 2011-R5, Class 1A 0.581%, due 04/06/206		460,401		460,743
Series 2011-R6, Class 1A 0.581%, due 05/07/206		460,686		460,686
Permanent Master Issuer PLC, Series 2011-1A, Class 1A3 2.905% , due 07/15/426,7	EUR	400,000		572,929
Residential Accredit Loans, Inc., Series 2007-QH9, Class A1 6.475% , due 11/25/376		483,486		233,346
Residential Asset Securitization Trust, Series 2007-A2, Class 1A3 6.000% , due 04/25/37		741,943		586,684
Sequoia Mortgage Trust, Series 2004-10, Class A3A 0.765% , due 11/20/346		101,232		88,655
WaMu Mortgage Pass Through Certificates, Series 2007-OA6, Class 1A 1.073% , due 07/25/476		760,000		495,104
Wells Fargo Alternative Loan Trust, Series 2007-PA2, Class 1A1 6.000% , due 06/25/37		1,111,015		925,871
Total collateralized mortgage obligations (cost—$20,716,085)				18,217,446
Asset-backed securities—3.64%
Access Group, Inc., Series 2002-1, Class A2 0.427%, due 09/25/256		369,022		368,112
Series 2003-1, Class A2 0.507%, due 12/27/166		426,118		425,479
AH Mortgage Advance Trust, Series SART-1, Class A1 2.630% , due 05/10/427		300,000		300,750
Ally Master Owner Trust, Series 2010-1, Class A 1.957% , due 01/15/156,7		800,000		813,594
Bank of America Auto Trust, Series 2009-2A, Class A3 2.130% , due 09/15/138,9		594,341		597,499
BMW Floorplan Master Owner Trust, Series 2009-1A, Class A 1.357% , due 09/15/146,7		500,000		504,358

196

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount5		Value
Asset-backed securities—(Continued)
Brazos Higher Education Authority, Inc., Series 2005-1, Class 1A2 0.327%, due 12/26/186		640,500	$	634,972
Series 2005-2, Class A9 0.347%, due 12/26/176		766,603		762,935
Series 2005-2, Class A10 0.367%, due 12/26/196		600,000		585,571
Series 2005-3, Class A14 0.357%, due 09/25/236		348,107		344,475
Series 2011-2, Class A2 1.097%, due 07/25/296		600,000		594,683
Brazos Student Loan Finance Corp., Series 2010-1, Class A1 1.147% , due 06/25/356		833,245		827,737
College Loan Corp. Trust, Series 2004-1, Class A3 0.413%, due 04/25/216		817,249		815,416
Series 2005-1, Class A2 0.353%, due 07/25/246		1,000,000		994,757
Series 2005-2, Class A2 0.359%, due 10/15/216		180,534		179,706
Collegiate Funding Services Education Loan Trust, Series 2003-A, Class A2 0.546% , due 09/28/206		68,205		68,197
Education Funding Capital Trust, Series 2003-3, Class A3 0.517%, due 03/16/206		424,100		423,944
Series 2004-1, Class A2 0.407%, due 12/15/226		438,342		435,079
Educational Funding of the South, Inc., Series 2011-1, Class A2 0.903% , due 04/25/356		700,000		660,010
Ford Credit Floorplan Master Owner Trust, Series 2009-2, Class A 1.757%, due 09/15/146		500,000		506,313
Series 2010-1, Class A 1.857%, due 12/15/146,7		1,400,000		1,423,094
GCO Education Loan Funding Trust, Series 2005-1, Class A3L 0.337% , due 11/25/206		661,277		659,249
GMAC Mortgage Corp. Loan Trust, Series 2007-HE3, Class 1A1 7.000%, due 09/25/37		43,103		32,230
Series 2007-HE3, Class 2A1 7.000%, due 09/25/37		83,177		60,648
Household Home Equity Loan Trust, Series 2007-3, Class APT 1.386% , due 11/20/366		254,201		224,600
Nelnet Student Loan Corp., Series 2004-2A, Class A3 0.357% , due 11/25/156		52,515		52,505

	Face amount5		Value
Asset-backed securities—(Concluded)
Northstar Education Finance, Inc., Series 2004-1, Class A3 0.423%, due 04/28/176		122,500	$	122,366
Series 2004-2, Class A1 0.373%, due 04/28/166		577,576		560,411
Penarth Master Issuer, Series 2011-1A, Class A1 0.837% , due 05/18/156,7		600,000		599,149
SLM Student Loan Trust, Series 2004-9, Class A4 0.383%, due 04/25/176		132,127		132,050
Series 2007-1, Class A3 0.283%, due 07/25/186		1,298,113		1,293,184
Series 2007-2, Class A2 0.253%, due 07/25/176		356,540		353,440
Series 2011-2, Class A2 1.387%, due 10/25/346		100,000		100,077
Student Loan Consolidation Center, Series 2011-1, Class A 1.407% , due 10/25/276,7		289,693		290,612
Suntrust Student Loan Trust, Series 2006-1A, Class A2 0.353% , due 07/28/206,7		432,730		430,975
US Education Loan Trust LLC, Series 2006-1, Class A2 0.384% , due 03/01/256,7		397,096		395,566
Wachovia Student Loan Trust, Series 2005-1, Class A4 0.363% , due 07/27/206		993,809		987,449
World Financial Network Credit Card Master Trust, Series 2006-A, Class A 0.337%, due 02/15/176,7		1,000,000		989,261
Series 2009-B, Class A 3.790%, due 05/15/16		400,000		409,159
Total asset-backed securities (cost—$19,997,561)				19,959,612
Corporate notes—9.87%
Australia—0.14%
Australia & New Zealand Banking Group Ltd. 3.750%, due 03/10/17	EUR	80,000		116,277
5.125%, due 09/10/19	EUR	60,000		88,740
FMG Resources August 2006 Pty Ltd. 6.875%, due 02/01/187		325,000		338,000
National Australia Bank Ltd. 3.750%, due 01/06/17	EUR	119,000		173,341
Santos Finance Ltd. 8.250%, due 09/22/706	EUR	50,000		72,474
Total Australia corporate notes				788,832
Austria—0.02%
PE Paper Escrow GmbH 12.000%, due 08/01/147		100,000		113,500

197

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount5		Value
Corporate notes—(Continued)
Belgium—0.06%
Anheuser-Busch InBev SA 6.570%, due 02/27/14	EUR	150,000	$	237,047
Fortis Bank SA/N.V. 4.625%, due 10/27/142,6,10	EUR	50,000		62,182
Total Belgium corporate notes				299,229
Bermuda—0.02%
Digicel Ltd. 8.250%, due 09/01/177		125,000		129,713
Canada—0.03%
TransCanada PipeLines Ltd. 6.350%, due 05/15/676		175,000		179,253
Cayman Islands—0.21%
Hutchison Whampoa Finance 09 Ltd. 4.750%, due 11/14/16	EUR	50,000		75,610
MUFG Capital Finance 1 Ltd. 6.346%, due 07/25/166,10		300,000		314,061
MUFG Capital Finance 4 Ltd. 5.271%, due 01/25/176,10	EUR	60,000		82,550
Resona Preferred Global Securities Cayman Ltd. 7.191%, due 07/30/156,7,10		425,000		436,605
Thames Water Utilities Ltd. 3.250%, due 11/09/16	EUR	50,000		72,076
UPCB Finance III Ltd. 6.625%, due 07/01/207		150,000		150,375
Total Cayman Islands corporate notes				1,131,277
Czech Republic—0.03%
CEZ AS 4.500%, due 06/29/20	EUR	100,000		145,617
Denmark—0.13%
AP Moller - Maersk A/S 4.375%, due 11/24/17	EUR	60,000		88,748
Carlsberg Breweries A/S 6.000%, due 05/28/14	EUR	50,000		77,894
Danske Bank A/S 4.100%, due 03/16/186	EUR	60,000		80,196
4.750%, due 06/04/14	EUR	100,000		149,758
Dong Energy A/S 4.875%, due 05/07/14	EUR	80,000		121,800
7.750%, due 06/01/30106	EUR	25,000		38,350
TDC A/S 4.375%, due 02/23/182	EUR	100,000		149,164
Total Denmark corporate notes				705,910
France—0.90%
Alstom SA 4.000%, due 09/23/14	EUR	100,000		148,785
Areva SA 3.875%, due 09/23/16	EUR	100,000		144,453
ASF 7.375%, due 03/20/19	EUR	50,000		88,648

	Face amount5		Value
Corporate notes—(Continued)
France—(Concluded)
AXA SA 4.500%, due 01/23/15	EUR	50,000	$	75,612
5.250%, due 04/16/406	EUR	100,000		133,129
BNP Paribas SA 3.500%, due 03/07/16	EUR	100,000		144,869
Bouygues SA 3.641%, due 10/29/19	EUR	100,000		142,727
Carrefour SA 3.875%, due 04/25/21	EUR	50,000		69,536
Casino Guichard-Perrachon SA 4.379%, due 02/08/17	EUR	200,000		293,675
Cie de Financement Foncier 1.625%, due 07/23/127		100,000		100,724
2.125%, due 04/22/137		500,000		507,402
CNP Assurances 6.875%, due 09/30/416	EUR	100,000		141,385
Credit Agricole SA 3.900%, due 04/19/21	EUR	100,000		127,125
Electricite de France 6.250%, due 01/25/21	EUR	100,000		172,702
France Telecom SA 3.375%, due 09/16/22	EUR	50,000		67,639
4.125%, due 01/23/19	EUR	100,000		149,104
8.125%, due 01/28/33	EUR	50,000		98,979
GDF Suez 3.500%, due 10/18/22	EUR	100,000		140,394
Lafarge SA 5.375%, due 11/29/1811	EUR	65,000		95,346
8.875%, due 05/27/1411	EUR	60,000		96,710
Lagardere SCA 4.875%, due 10/06/14	EUR	50,000		74,192
PPR 3.750%, due 04/08/15	EUR	170,000		251,261
RCI Banque SA 2.875%, due 07/23/12	EUR	140,000		201,377
3.250%, due 01/17/142	EUR	30,000		43,217
4.000%, due 01/25/16	EUR	50,000		71,590
Schneider Electric SA 3.750%, due 07/12/18	EUR	100,000		146,370
Societe Fonciere Lyonnaise SA 4.625%, due 05/25/16	EUR	100,000		145,508
Societe Generale SA 3.750%, due 08/21/14	EUR	150,000		220,279
4.750%, due 03/02/21	EUR	100,000		146,409
9.375%, due 09/04/196,10	EUR	50,000		74,720
Suez Environnement Co. 4.125%, due 06/24/22	EUR	50,000		74,515
4.820%, due 09/12/156,10	EUR	50,000		70,408
Unibail-Rodamco SE 3.375%, due 03/11/15	EUR	90,000		131,736
Veolia Environnement 5.250%, due 04/24/14	EUR	160,000		246,163
Vivendi SA 4.250%, due 12/01/16	EUR	50,000		74,266
Total France corporate notes				4,910,955

198

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount5		Value
Corporate notes—(Continued)
Germany—0.16%
Commerzbank AG 7.750%, due 03/16/21	EUR	100,000	$	143,468
Metro AG 4.250%, due 02/22/17	EUR	100,000		148,785
Muenchener Rueckversicherungs AG 5.767%, due 06/12/176,10	EUR	100,000		133,273
RWE AG 4.625%, due 09/28/156,10	EUR	75,000		103,457
Thyssenkrupp AG 8.000%, due 06/18/14	EUR	120,000		194,528
Volkswagen Leasing GmbH 2.750%, due 07/13/15	EUR	100,000		143,312
Total Germany corporate notes				866,823
Ireland—0.28%
Ardagh Glass Finance PLC 9.250%, due 07/01/162	EUR	50,000		76,874
Banesto Financial Product PLC 4.000%, due 05/08/12	EUR	60,000		86,605
Bord Gais Eireann 6.250%, due 06/16/1411	EUR	50,000		68,832
GE Capital European Funding 2.875%, due 09/17/15	EUR	40,000		57,400
3.750%, due 04/04/16	EUR	100,000		146,572
5.250%, due 01/31/13	EUR	200,000		299,272
6.000%, due 01/15/19	EUR	150,000		242,188
LeasePlan Finance N.V. 3.750%, due 03/18/13	EUR	60,000		86,947
Smurfit Kappa Acquisitions 7.250%, due 11/15/172	EUR	60,000		87,076
The Governor & Co. of the Bank of Ireland 2.750%, due 03/02/128,9		180,000		169,198
4.625%, due 04/08/13	EUR	20,000		25,002
Vimpel Communications 7.748%, due 02/02/217		200,000		206,286
Total Ireland corporate notes				1,552,252
Italy—0.37%
Assicurazioni Generali SpA MTN 5.125%, due 09/16/24	EUR	50,000		69,885
Atlantia SpA 5.625%, due 05/06/16	EUR	110,000		169,419
Banco Popolare SC 4.000%, due 04/06/13	EUR	100,000		140,795
6.000%, due 11/05/20	EUR	70,000		87,918
Enel SpA 5.250%, due 01/14/15	EUR	230,000		349,407
ENI SpA 3.500%, due 01/29/18	EUR	50,000		69,744
Intesa Sanpaolo SpA 3.375%, due 01/19/15	EUR	150,000		207,084
5.750%, due 05/28/186	EUR	150,000		214,916
8.375%, due 10/14/196,10	EUR	50,000		67,175

	Face amount5		Value
Corporate notes—(Continued)
Italy—(Concluded)
Telecom Italia SpA 6.750%, due 03/21/13	EUR	80,000	$	121,834
8.250%, due 03/21/16	EUR	60,000		97,106
UniCredit SpA 4.250%, due 07/31/18	EUR	100,000		137,903
5.250%, due 04/30/232	EUR	100,000		144,055
6.125%, due 04/19/21	EUR	130,000		172,841
Total Italy corporate notes				2,050,082
Jersey—0.10%
ASIF III Jersey Ltd. 4.750%, due 09/11/13	EUR	50,000		73,403
BAA Funding Ltd. 3.975%, due 02/15/122	EUR	90,000		130,337
4.125%, due 10/12/16	EUR	50,000		73,072
HSBC Capital Funding LP 5.130%, due 03/29/166,10	EUR	60,000		80,826
QBE Capital Funding III Ltd 7.250%, due 05/24/416,7		200,000		203,829
Total Jersey corporate notes				561,467
Luxembourg—0.38%
ArcelorMittal 8.250%, due 06/03/13	EUR	50,000		78,654
9.375%, due 06/03/16	EUR	50,000		87,671
Fiat Finance & Trade Ltd. SA 9.000%, due 07/30/12	EUR	60,000		89,447
Fiat Industrial Finance Europe SA 6.250%, due 03/09/18	EUR	100,000		139,379
Finmeccanica Finance 5.750%, due 12/12/18	EUR	60,000		91,032
FMC Finance VII SA 5.250%, due 02/15/212	EUR	60,000		83,628
Gazprom (Gaz Capital SA) 8.125%, due 02/04/15	EUR	50,000		81,472
9.250%, due 04/23/192		250,000		320,625
Intelsat Jackson Holdings SA 7.250%, due 04/01/197		400,000		405,000
Wind Acquisition Finance SA 7.250%, due 02/15/187		400,000		399,000
7.375%, due 02/15/182	EUR	100,000		142,612
Zinc Capital SA 8.875%, due 05/15/182	EUR	100,000		142,253
Total Luxembourg corporate notes				2,060,773
Mexico—0.24%
America Movil SAB de C.V. 3.750%, due 06/28/17	EUR	100,000		145,730
Bank of New York Mellon SA Institucion de Banca Multiple 9.625%, due 05/02/217		200,000		206,220
BBVA Bancomer SA Texas 7.250%, due 04/22/207		325,000		344,656

199

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount5		Value
Corporate notes—(Continued)
Mexico—(Concluded)
Cemex SAB de C.V. 5.246%, due 09/30/156,7		540,000	$	496,800
9.000%, due 01/11/188,9		100,000		94,000
Total Mexico corporate notes				1,287,406
Netherlands—0.81%
ABN Amro Bank N.V. 4.250%, due 04/11/16	EUR	100,000		146,270
6.375%, due 04/27/21	EUR	100,000		146,424
Allianz Finance II BV 4.750%, due 07/22/19	EUR	50,000		76,522
5.750%, due 07/08/416	EUR	100,000		138,369
6.125%, due 05/31/226	EUR	100,000		144,030
BMW Finance N.V. 3.625%, due 01/29/18	EUR	100,000		145,929
4.000%, due 09/17/14	EUR	100,000		149,648
Conti-Gummi Finance BV 7.500%, due 09/15/172	EUR	50,000		74,672
Daimler International Finance BV 7.875%, due 01/16/14	EUR	170,000		274,883
Deutsche Telekom International Finance BV 6.000%, due 01/20/17	EUR	100,000		162,472
E.ON International Finance BV 5.250%, due 09/08/15	EUR	40,000		62,988
EDP Finance BV 5.500%, due 02/18/14	EUR	80,000		107,024
ELM BV (Swiss Reinsurance Co.) 5.252%, due 05/25/166,10	EUR	50,000		62,864
Elsevier Finance (ELM BV) 6.500%, due 04/02/13	EUR	50,000		76,540
Eureko BV 7.375%, due 06/16/14	EUR	50,000		79,515
HeidelbergCement Finance BV 8.000%, due 01/31/17	EUR	90,000		139,990
ING Bank N.V. 2.500%, due 01/14/167		600,000		596,140
3.375%, due 03/03/15	EUR	120,000		174,021
4.625%, due 03/15/196	EUR	60,000		86,687
KBC IFIMA N.V. 3.875%, due 03/31/15	EUR	90,000		126,578
4.375%, due 10/26/15	EUR	100,000		141,794
Koninklijke KPN N.V. 4.750%, due 01/17/17	EUR	120,000		183,481
LeasePlan Corp. N.V. 3.875%, due 09/16/15	EUR	50,000		71,754
Linde Finance BV 7.375%, due 07/14/666	EUR	60,000		95,266
Metro Finance BV 9.375%, due 11/28/13	EUR	50,000		82,913
OI European Group BV 6.750%, due 09/15/202	EUR	100,000		142,253
Portugal Telecom International Finance BV 3.750%, due 03/26/12	EUR	100,000		141,392

	Face amount5		Value
Corporate notes—(Continued)
Netherlands—(Concluded)
Rabobank Nederland 8.375%, due 07/26/166,10		110,000	$	117,975
RWE Finance BV 4.625%, due 07/23/14	EUR	100,000		152,510
Schlumberger Finance BV 2.750%, due 12/01/15	EUR	50,000		72,134
SNS Bank N.V. 3.625%, due 07/18/13	EUR	10,000		14,320
Telefonica Europe BV 5.875%, due 02/14/33	EUR	50,000		71,443
Ziggo Bond Co. 8.000%, due 05/15/182	EUR	60,000		88,154
Ziggo Finance BV 6.125%, due 11/15/172	EUR	50,000		70,408
Total Netherlands corporate notes				4,417,363
New Zealand—0.06%
Westpac Securities NZ Ltd. 3.875%, due 03/20/17	EUR	220,000		319,121
Norway—0.59%
DnB NOR Bank ASA 4.375%, due 02/24/212	EUR	110,000		160,446
DnB NOR Boligkreditt 2.100%, due 10/14/157		1,200,000		1,205,602
2.900%, due 03/29/167		800,000		824,774
Nordea Eiendomskreditt AS 1.875%, due 04/07/147		200,000		203,036
Sparebank 1 Boligkreditt AS 2.625%, due 05/27/167		800,000		812,216
Total Norway corporate notes				3,206,074
Spain—0.28%
Banco Bilbao Vizcaya Argentaria SA 4.250%, due 03/30/15	EUR	100,000		141,934
BBVA Senior Finance SA 3.250%, due 04/23/15	EUR	100,000		136,359
Gas Natural Capital 4.125%, due 01/26/18	EUR	100,000		135,064
Iberdrola Finanzas SAU 3.875%, due 02/10/14	EUR	100,000		145,260
4.625%, due 04/07/17	EUR	100,000		146,653
4.875%, due 03/04/14	EUR	100,000		148,523
Santander International Debt SA 3.500%, due 08/12/14	EUR	100,000		140,775
Santander Issuances 5.435%, due 10/24/176	EUR	150,000		202,729
Telefonica Emisiones SAU 3.661%, due 09/18/17	EUR	50,000		67,901
4.375%, due 02/02/16	EUR	100,000		143,963
5.580%, due 06/12/13	EUR	100,000		149,426
Total Spain corporate notes				1,558,587
Sweden—0.31%
Akzo Nobel Sweden Finance AB 7.750%, due 01/31/1411	EUR	100,000		161,158

200

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount5		Value
Corporate notes—(Continued)
Sweden—(Concluded)
Nordea Bank AB 3.750%, due 02/24/17	EUR	90,000	$	131,539
6.250%, due 09/10/186	EUR	100,000		150,817
Sandvik AB 6.875%, due 02/25/14	EUR	50,000		79,066
Skandinaviska Enskilda Banken AB 2.500%, due 09/01/15	EUR	100,000		140,651
9.250%, due 03/13/156,10	EUR	100,000		152,234
Stadshypotek AB 1.450%, due 09/30/137		400,000		403,113
Svenska Handelsbanken AB 4.875%, due 03/25/14	EUR	90,000		137,353
Swedbank Hypotek AB 0.696%, due 03/28/146,7		200,000		200,325
TeliaSonera AB 3.875%, due 10/01/25	EUR	50,000		66,346
Volvo Treasury AB 9.875%, due 02/27/14	EUR	60,000		101,054
Total Sweden corporate notes				1,723,656
Switzerland—0.02%
Credit Suisse London 4.750%, due 08/05/19	EUR	80,000		120,583
United Arab Emirates—0.03%
Dolphin Energy Ltd. 5.888%, due 06/15/197		150,212		163,731
United Kingdom—1.03%
Anglian Water Services Financing PLC 4.625%, due 10/07/13	EUR	80,000		120,205
Anglo American Capital PLC 4.375%, due 12/02/16	EUR	60,000		88,999
Aviva PLC 5.250%, due 10/02/236	EUR	60,000		86,430
5.700%, due 09/29/156,10	EUR	40,000		51,154
Bank of Scotland PLC 5.000%, due 11/21/117		800,000		809,194
5.250%, due 02/21/177		200,000		215,963
Barclays Bank PLC 5.250%, due 05/27/14	EUR	150,000		227,980
6.000%, due 01/23/18	EUR	60,000		86,279
Brambles Finance PLC 4.625%, due 04/20/18	EUR	100,000		149,982
British Telecommunications PLC 6.125%, due 07/11/14	EUR	50,000		78,797
Experian Finance PLC 4.750%, due 02/04/20	EUR	50,000		75,692
FCE Bank PLC 4.750%, due 01/19/15	EUR	100,000		141,175
Hammerson PLC 4.875%, due 06/19/15	EUR	110,000		164,502
HSBC Bank PLC 3.125%, due 11/15/17	EUR	150,000		212,152
3.750%, due 11/30/16	EUR	100,000		147,690

	Face amount5		Value
Corporate notes—(Continued)
United Kingdom—(Concluded)
HSBC Holdings PLC 6.000%, due 06/10/19	EUR	65,000	$	100,269
Imperial Tobacco Finance PLC 4.500%, due 07/05/18	EUR	100,000		146,222
7.250%, due 09/15/14	EUR	150,000		242,409
LBG Capital No. 2 PLC, Series 22 15.000%, due 12/21/19	EUR	50,000		95,195
Legal & General Group PLC 4.000%, due 06/08/256	EUR	50,000		64,898
Lloyds TSB Bank PLC 4.500%, due 09/15/142	EUR	100,000		146,607
6.250%, due 04/15/14	EUR	160,000		244,515
6.500%, due 03/24/20	EUR	90,000		120,406
Mondi Finance Ltd. 5.750%, due 04/03/17	EUR	60,000		87,201
National Grid PLC 6.500%, due 04/22/14	EUR	100,000		158,126
Nationwide Building Society 3.750%, due 01/20/15	EUR	50,000		71,671
6.750%, due 07/22/20	EUR	60,000		83,663
Rexam PLC 4.375%, due 03/15/13	EUR	110,000		161,893
Royal Bank of Scotland PLC 4.875%, due 01/20/17	EUR	170,000		244,420
6.000%, due 05/10/13	EUR	90,000		133,053
SABMiller PLC 4.500%, due 01/20/15	EUR	50,000		75,523
Scottish & Southern Energy PLC 5.025%, due 10/01/156,10	EUR	50,000		70,947
6.125%, due 07/29/13	EUR	80,000		122,859
Standard Chartered PLC 5.750%, due 04/30/14	EUR	100,000		154,925
United Utilities Water PLC 4.250%, due 01/24/20	EUR	50,000		74,457
Virgin Media Finance PLC 9.500%, due 08/15/16		250,000		281,250
Vodafone Group PLC 4.750%, due 06/14/16	EUR	80,000		124,662
Total United Kingdom corporate notes				5,661,365
United States—3.65%
ACCO Brands Corp. 10.625%, due 03/15/15		175,000		195,344
AES Corp. 7.375%, due 07/01/218,9		100,000		103,500
Ally Financial, Inc. 6.875%, due 09/15/11		750,000		754,277
ANZ Capital Trust II 5.360%, due 12/15/137,10		400,000		406,000
Ashtead Capital, Inc. 9.000%, due 08/15/167		250,000		260,000
Bank of America Corp. 4.750%, due 04/03/17	EUR	100,000		144,341
5.125%, due 09/26/14	EUR	100,000		150,286

201

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount5		Value
Corporate notes—(Continued)
United States—(Continued)
BNP Paribas Capital Trust III 6.625%, due 10/23/116,10	EUR	100,000	$	141,175
Capital One Capital III 7.686%, due 08/15/36		401,000		410,022
Case New Holland, Inc. 7.750%, due 09/01/13		125,000		136,719
Casella Waste Systems, Inc. 11.000%, due 07/15/14		150,000		166,500
Charter Communications Operating LLC/Charter Communications Operating Capital 10.875%, due 09/15/147,11		100,000		110,250
CHS/Community Health Systems 8.875%, due 07/15/15		250,000		258,437
Chubb Corp. 6.375%, due 03/29/676		400,000		413,000
Cimarex Energy Co. 7.125%, due 05/01/17		50,000		52,625
Citigroup Capital XXI 8.300%, due 12/21/576		335,000		344,212
Citigroup, Inc. 4.000%, due 11/26/15	EUR	100,000		144,533
4.750%, due 05/31/176	EUR	90,000		120,352
7.375%, due 06/16/14	EUR	230,000		365,746
CommScope, Inc. 8.250%, due 01/15/197		150,000		156,000
CVS Caremark Corp. 6.302%, due 06/01/376		395,000		385,125
DJO Finance LLC/DJO Finance Corp. 10.875%, due 11/15/14		275,000		294,594
Enterprise Products Operating LLC 8.375%, due 08/01/666		200,000		217,500
Equinix, Inc. 7.000%, due 07/15/21		250,000		260,000
Fidelity National Information Services, Inc. 7.875%, due 07/15/20		150,000		160,125
Ford Motor Co. 7.450%, due 07/16/31		425,000		484,423
Freescale Semiconductor, Inc. 8.050%, due 02/01/207		150,000		151,125
Frontier Communications Corp. 8.250%, due 04/15/17		625,000		685,937
GE Capital Trust II 5.500%, due 09/15/672,6	EUR	50,000		66,457
	Number of units
GMAC Capital Trust I 8.125%, due 02/15/4012		11,560		296,167
	Face amount5
Goodyear Tire & Rubber Co. 10.500%, due 05/15/16		162,000		182,453

	Face amount5		Value
Corporate notes—(Continued)
United States—(Continued)
HCA, Inc. 7.500%, due 02/15/22		350,000	$	355,250
7.875%, due 02/15/20		125,000		135,313
9.250%, due 11/15/16		425,000		453,422
HSBC Bank USA N.A. 6.000%, due 08/15/406	BRL	490,000		663,152
HSBC Finance Corp. 3.750%, due 11/04/15	EUR	100,000		146,823
Huntsman International LLC 5.500%, due 06/30/16		400,000		396,000
HVB Funding Trust VIII 7.055%, due 03/28/126,10	EUR	55,000		76,263
IPALCO Enterprises, Inc. 5.000%, due 05/01/187		100,000		99,248
JP Morgan Chase & Co. 6.125%, due 04/01/14	EUR	200,000		311,569
JP Morgan Chase Bank N.A. 4.625%, due 05/31/176	EUR	150,000		213,309
Kraft Foods, Inc. 6.250%, due 03/20/15	EUR	50,000		79,733
Lyondell Chemical Co. 11.000%, due 05/01/18		300,000		339,750
MarkWest Energy Partners LP/MarkWest Energy Finance Corp. 8.750%, due 04/15/18		50,000		54,750
Merrill Lynch & Co., Inc. 4.625%, due 09/14/18	EUR	50,000		67,913
4.875%, due 05/30/14	EUR	100,000		149,448
MetLife Global Funding I 4.625%, due 05/16/17	EUR	50,000		75,606
Morgan Stanley 4.000%, due 11/17/15	EUR	255,000		364,780
4.500%, due 02/23/16	EUR	100,000		144,270
National City Preferred Capital Trust I 12.000%, due 12/10/126,10		325,000		354,981
Newfield Exploration Co. 7.125%, due 05/15/18		100,000		107,000
Nielsen Finance LLC/Nielsen Finance Co. 11.500%, due 05/01/16		216,000		251,100
NRG Energy, Inc. 7.375%, due 01/15/17		100,000		104,875
Pemex Project Funding Master Trust 6.375%, due 08/05/162	EUR	80,000		126,332
Plains Exploration & Production Co. 7.625%, due 06/01/18		250,000		268,750
Plastipak Holdings, Inc. 8.500%, due 12/15/157		75,000		78,094
ProLogis LP 1.875%, due 11/15/37		175,000		173,469
Puget Sound Energy, Inc., Series A 6.974%, due 06/01/676		150,000		154,482
Qwest Communications International, Inc. 8.000%, due 10/01/15		225,000		244,688

202

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount5		Value
Corporate notes—(Continued)
United States—(Continued)
Range Resources Corp. 7.250%, due 05/01/18		50,000	$	53,375
Regency Energy Partners LP/Regency Energy Finance Corp. 9.375%, due 06/01/16		250,000		279,687
Regions Bank 7.500%, due 05/15/18		250,000		261,509
Regions Financial Corp. 5.750%, due 06/15/15		125,000		124,219
Rensselaer Polytechnic Institute 5.600%, due 09/01/20		375,000		406,612
Reynolds Group Issuance/Reynold 6.875%, due 02/15/217		250,000		240,000
8.250%, due 02/15/217		100,000		92,250
8.500%, due 10/15/162,11	EUR	60,000		87,723
Roche Holdings, Inc. 6.500%, due 03/04/21	EUR	130,000		231,723
Rock-Tenn Co. 5.625%, due 03/15/13		25,000		25,906
RSC Equipment Rental, Inc./RSC Holdings III LLC 8.250%, due 02/01/21		125,000		129,063
10.000%, due 07/15/177		175,000		197,313
SandRidge Energy, Inc. 7.500%, due 03/15/217		400,000		420,000
SGS International, Inc. 12.000%, due 12/15/13		25,000		25,656
SLM Corp. 3.125%, due 09/17/12	EUR	50,000		70,984
6.250%, due 01/25/16		175,000		183,120
Springleaf Finance Corp. MTN 4.875%, due 07/15/12		125,000		124,531
Sprint Capital Corp. 6.900%, due 05/01/19		400,000		409,000
8.375%, due 03/15/12		125,000		129,688
Steel Dynamics, Inc. 7.750%, due 04/15/16		250,000		264,375
Swiss Re Treasury (US) 7.000%, due 05/19/14	EUR	50,000		79,793
Tenet Healthcare Corp. 9.000%, due 05/01/15		250,000		266,250
Terex Corp. 10.875%, due 06/01/16		75,000		86,063
The Procter & Gamble Co. 4.875%, due 05/11/27	EUR	75,000		114,894
Wachovia Corp. 4.375%, due 08/01/16	EUR	300,000		449,649
4.375%, due 11/27/18	EUR	50,000		71,927
Wal-Mart Stores, Inc. 4.875%, due 09/21/29	EUR	60,000		92,551
Windstream Corp. 7.750%, due 10/01/21		400,000		424,000
XM Satellite Radio, Inc. 13.000%, due 08/01/137		50,000		58,625

	Face amount5		Value
Corporate notes—(Concluded)
United States—(Concluded)
ZFS Finance USA Trust IV 5.875%, due 05/09/326,8,9		500,000	$	504,315
Zurich Finance (USA), Inc. 5.750%, due 10/02/236	EUR	80,000		116,018
Total United States corporate notes				20,028,414
Venezuela—0.02%
Petroleos de Venezuela SA 5.250%, due 04/12/17		60,000		38,700
8.500%, due 11/02/172		100,000		76,000
Total Venezuela corporate notes				114,700
Total corporate notes (cost—$51,595,889)				54,096,683
Municipal bonds and notes—0.93%
United States—0.93%
Brazos Higher Education Authority, Series I-A-2 0.407% , due 06/27/226		670,419		669,997
California (Build America Bonds) 7.500%, due 04/01/34		325,000		397,465
7.550%, due 04/01/39		675,000		837,817
7.625%, due 03/01/40		375,000		466,252
Illinois (Build America Bonds) 7.350% , due 07/01/35		225,000		253,076
Illinois Taxable Pension 5.100% , due 06/01/33		1,000,000		908,340
Pennsylvania Higher Education Assistance Agency Student Loan Revenue, Series 2, Class A-1 0.853% , due 04/25/196		386,027		386,281
South Carolina Student Loan Corp. Education Loan Revenue, Series A-1 0.354% , due 12/03/186		1,200,000		1,181,040
Total municipal bonds and notes (cost—$4,793,009)				5,100,268
Non-US government obligations—2.67%
Argentina—0.10%
Argentina Government Bond 0.010%, due 12/15/3513	EUR	2,680,000		575,708
Australia—0.17%
Australia Index Linked Government Bond 4.000%, due 08/20/20	AUD	500,000		949,888
Colombia—0.05%
Colombia Government International Bond 4.375%, due 07/12/21		260,000		267,540

203

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount5		Value
Non-US government obligations—(Concluded)
Germany—0.23%
Bundesrepublik Deutschland 6.250%, due 01/04/24	EUR	120,000	$	233,223
Series 07 4.250%, due 07/04/17	EUR	25,000		40,476
Series 98 4.750%, due 07/04/28	EUR	100,000		171,724
Deutsche Bundesrepublik Inflation Linked Bond 1.750%, due 04/15/20	EUR	505,632		807,261
Total Germany				1,252,684
Malaysia—0.41%
Bank Negara Malaysia Monetary Notes 2.796%, due 09/27/1114	MYR	1,325,000		444,372
2.798%, due 09/22/1114	MYR	1,325,000		444,504
Malaysia Government Bond 3.434%, due 08/15/14	MYR	3,950,000		1,339,114
Total Malaysia				2,227,990
Mexico—1.33%
Mexican Bonos 6.500%, due 06/10/21	MXN	21,400,000		1,792,910
7.500%, due 06/03/27	MXN	21,522,700		1,878,338
8.500%, due 05/31/29	MXN	19,300,000		1,821,124
10.000%, due 12/05/24	MXN	16,700,000		1,802,320
Total Mexico				7,294,692
Qatar—0.09%
State of Qatar 5.250%, due 01/20/207		470,000		515,825
South Africa—0.22%
South Africa Government Bond 6.750%, due 03/31/21	ZAR	2,285,000		307,938
10.500%, due 12/21/26	ZAR	5,050,000		884,585
Total South Africa				1,192,523
Venezuela—0.07%
Venezuela Government International Bond 7.750%, due 10/13/192		130,000		93,600
8.250%, due 10/13/242		270,000		182,250
9.000%, due 05/07/232		110,000		79,200
9.250%, due 05/07/282		40,000		28,200
Total Venezuela				383,250
Total non-US government obligations (cost—$14,175,039)				14,660,100
Time deposits—4.79%
BNP Paribas 0.120% , due 08/01/11		3,781,203		3,781,203
ING Bank N.V. 0.050% , due 08/01/11		4,291,244		4,291,244
JPMorgan Chase 0.050% , due 08/01/11		4,215,140		4,215,140

	Face amount5		Value
Time deposits—(Concluded)
Rabobank Nederland N.V. 0.040% , due 08/01/11		9,993,004	$	9,993,004
Societe Generale, Cayman Islands 0.140% , due 08/01/11		3,979,801		3,979,801
Total time deposits (cost—$26,260,392)				26,260,392
Certificates of deposit—1.46%
Banking-non-US—1.46%
Dexia Bank Belgium SA 0.460% , due 08/23/11		4,000,000		4,000,000
UniCredit SpA London 0.390% , due 09/12/11		4,000,000		4,000,000
Total certificates of deposit (cost—$8,000,000)				8,000,000
Short-term US government obligations15—16.69%
US Treasury Bills 0.020%, due 08/18/11		31,150,000		31,147,259
0.039%, due 09/08/111		52,353,000		52,348,183
0.022%, due 09/22/111		8,000,000		7,999,136
Total short-term US government obligations (cost—$91,497,496)				91,494,578
Repurchase agreement—12.56%
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $342,762 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12, $49,265,277 US Treasury Bills, zero coupon due 08/04/11 and $19,430,113 US Treasury Notes, 2.375% to 2.625% due 02/29/16 to 07/31/17; (value—$70,271,602); proceeds: $68,893,057 (cost—$68,893,000)		68,893,000		68,893,000
	Number of contracts/ Notional amount
Options purchased—1.20%
Call options purchased—0.42%
Euro Stoxx 50 Index, strike @ 2,750, expires 09/16/11		168		133,735
GBP Call/EUR Put, strike @ EUR 1.33, expires 11/07/11	GBP	7,800,000		5,859
GBP Call/ZAR Put, strike @ ZAR 13.7, expires 10/19/11	GBP	3,700,000		3,882
S&P 500 Index, Strike @ 1,360, expires 08/20/11		38		12,540

204

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Number of contracts/ Notional amount		Value
Options purchased—(Continued)
Call options purchased—(Continued)
S&P 500 Index, Strike @ 1,600, expires 09/17/11		189	$	945
USD Call/JPY Put, strike @ JPY 86, expires 12/10/15		1,000,000		51,978
USD Call/JPY Put, strike @ JPY 88, expires 05/16/14		1,250,000		44,989
USD Call/JPY Put, strike @ JPY 94, expires 08/15/13		11,700,000		191,697
3 month EURIBOR16 Interest Rate Swap, strike @ 2.600%, expires 09/12/13 (counterparty: Royal Bank of Scotland PLC; receive floating rate); underlying swap terminates 11/12/18	EUR	2,500,000		44,464
3 month EURIBOR16 Interest Rate Swap, strike @ 2.600%, expires 11/01/13 (counterparty: Royal Bank of Scotland PLC; receive floating rate); underlying swap terminates 05/11/18	EUR	19,150,000		341,526
3 month USD LIBOR17 Interest Rate Swap, strike @ 2.320%, expires 01/06/12 (counterparty: Deutsche Bank AG.; receive floating rate); underlying swap terminates 01/10/17		28,200,000		167,952
3 month USD LIBOR17 Interest Rate Swap, strike @ 2.605%, expires 02/21/12 (counterparty: Citibank N.A.; receive floating rate); underlying swap terminates 02/23/17		5,600,000		30,668
3 month USD LIBOR17 Interest Rate Swap, strike @ 2.703%, expires 07/06/12 (counterparty: Deutsche Bank AG.; receive floating rate); underlying swap terminates 07/10/17		26,300,000		307,269
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.510%, expires 06/27/12 (counterparty: Bank of America N.A.; receive floating rate); underlying swap terminates 06/29/22		12,000,000		357,205
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.510%, expires 06/27/12 (counterparty: Citibank N.A.; receive floating rate); underlying swap terminates 06/29/22		11,100,000		330,415

	Number of contracts/ Notional amount		Value
Options purchased—(Continued)
Call options purchased—(Concluded)
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.560%, expires 06/15/12 (counterparty: Citibank N.A.; receive floating rate); underlying swap terminates 06/19/22		2,200,000	$	59,541
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.570%, expires 07/11/12 (counterparty: Bank of America N.A.; receive floating rate); underlying swap terminates 07/13/22		5,800,000		169,509
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.595%, expires 02/24/12 (counterparty: Citibank N.A.; receive floating rate); underlying swap terminates 02/28/22		3,900,000		57,897
Total call options purchased				2,312,071
Put options purchased—0.78%
GBP Put/EUR Call, strike @ EUR 1.19, expires 11/07/11	GBP	7,800,000		600,640
S&P 500 Index, strike @ 1,150, expires 09/17/11		189		192,780
S&P 500 Index, strike @ 1,150, expires 10/22/11		95		142,699
3 month USD LIBOR17 Interest Rate Swap, strike @ 2.320%, expires 01/06/12 (counterparty: Deutsche Bank AG.; pay floating rate); underlying swap terminates 01/10/17		28,200,000		687,662
3 month USD LIBOR17 Interest Rate Swap, strike @ 2.605%, expires 02/21/12 (counterparty: Citibank N.A.; pay floating rate); underlying swap terminates 02/23/17		5,600,000		188,044
3 month USD LIBOR17 Interest Rate Swap, strike @ 2.703%, expires 07/06/12 (counterparty: Deutsche Bank AG.; pay floating rate); underlying swap terminates 07/10/17		26,300,000		835,322
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.510%, expires 06/27/12 (counterparty: Bank of America N.A.; pay floating rate); underlying swap terminates 06/29/22		12,000,000		548,359

205

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Number of contracts/ Notional amount			Value
Options purchased—(Concluded)
Put options purchased—(Concluded)
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.510%, expires 06/27/12 (counterparty: Citibank N.A.; pay floating rate); underlying swap terminates 06/29/22		11,100,000		$	507,232
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.560%, expires 06/15/12 (counterparty: Citibank N.A.; pay floating rate); underlying swap terminates 06/19/22		2,200,000			106,084
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.570%, expires 07/11/12 (counterparty: Bank of America N.A.; pay floating rate); underlying swap terminates 07/13/22		5,800,000			282,314
3 month USD LIBOR17 Interest Rate Swap, strike @ 3.595%, expires 02/24/12 (counterparty: Citibank N.A.; pay floating rate); underlying swap terminates 02/28/22		3,900,000			199,720
Total put options purchased					4,290,856
Total options purchased (cost—$7,465,638)					6,602,927
Total investments before investments sold short (cost—$557,704,976)—103.28%					566,353,437
	Number of shares
Investments sold short—(5.00)%
Common stocks—(4.29)%
Belgium—(0.14)%
Ageas		(375,107	)		(769,906	)
Canada—(0.30)%
Ivanhoe Mines Ltd.		(35,995	)		(942,587	)
Manulife Financial Corp.		(26,800	)		(425,793	)
Progress Energy Resources Corp.		(17,200	)		(249,508	)
Total Canada common stocks					(1,617,888	)
Finland—(0.13)%
Outokumpu Oyj		(67,942	)		(723,117	)
France—(0.22)%
Alstom SA		(2,643	)		(138,673	)
Compagnie Generale de Geophysique-Veritas		(19,782	)		(663,087	)

	Number of shares			Value
Investments sold short—(Continued)
Common stocks—(Concluded)
France—(Concluded)
Iliad SA		(2,465	)	$	(315,831	)
Veolia Environnement SA		(4,377	)		(98,825	)
Total France common stocks					(1,216,416	)
Germany—(0.06)%
Salzgitter AG		(4,781	)		(349,458	)
Italy—(0.07)%
Banco Popolare Society Cooperativa		(184,521	)		(353,792	)
Japan—(1.84)%
Daiwa Securities Group, Inc.		(387,000	)		(1,687,023	)
NGK Insulators Ltd.		(85,000	)		(1,555,928	)
Nippon Paper Group, Inc.		(8,900	)		(198,758	)
NKSJ Holdings, Inc.		(166,000	)		(1,101,335	)
Nomura Holdings, Inc.		(337,500	)		(1,646,108	)
SBI Holdings, Inc.		(12,573	)		(1,233,532	)
Senshu Ikeda Holdings, Inc.		(371,900	)		(574,235	)
The Dai-ichi Life Insurance Co. Ltd.		(1,056	)		(1,493,972	)
Tokyo Steel Manufacturing Co. Ltd.		(57,100	)		(585,951	)
Total Japan common stocks					(10,076,842	)
Jersey—(0.15)%
Glencore International PLC		(104,551	)		(810,809	)
Norway—(0.08)%
Norsk Hydro ASA		(63,875	)		(453,006	)
Spain—(0.27)%
Acciona SA		(12,446	)		(1,284,601	)
International Consolidated Airlines Group SA		(50,744	)		(196,798	)
Total Spain common stocks					(1,481,399	)
Sweden—(0.27)%
Hennes & Mauritz AB, B Shares		(43,736	)		(1,490,797	)
Switzerland—(0.07)%
Foster Wheeler AG		(14,200	)		(384,820	)
United States—(0.69)%
Cree, Inc.		(15,000	)		(492,900	)
Human Genome Sciences, Inc.		(27,800	)		(584,078	)	��
Range Resources Corp.		(18,900	)		(1,231,524	)
Toll Brothers, Inc.		(6,600	)		(131,736	)
Vulcan Materials Co.		(38,800	)		(1,330,452	)
Total United States common stocks					(3,770,690	)
Total common stocks (proceeds—$25,695,483)					(23,498,940	)

206

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

	Face amount			Value
Investments sold short—(Concluded)
Federal national mortgage association certificate**—(0.71)%
United States—(0.71)%
FNMA TBA 3.500% (proceeds—$3,842,500)	$	(4,000,000	)	$	(3,911,250	)
Total investments sold short (proceeds—$29,537,983)— (5.00)%					(27,410,190	)
Other assets in excess of liabilities—1.72%					9,411,053
Net assets—100.00%				$	548,354,300

Aggregate cost for federal income tax purposes before investments sold short was $560,742,278; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	20,492,986
Gross unrealized depreciation		(14,881,827	)
Net unrealized appreciation	$	5,611,159

For a listing of defined portfolio acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 227.

*  Non-income producing security.

**  On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

¹  Security, or portion thereof, pledged as collateral for investments sold short, written options or futures.

²  Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At July 31, 2011, the value of these securities amounted to 0.72% of net assets.

³  Security is traded on the London Exchange.

⁴  Security is traded on the over-the-counter ("OTC") market.

⁵  In US Dollars unless otherwise indicated.

⁶  Variable or floating rate security. The interest rate shown is the current rate as of July 31, 2011 and changes periodically.

⁷  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 3.68% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁸  Illiquid securities representing 0.27% of net assets as of July 31, 2011.

⁹  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 0.27% of net assets as of July 31, 2011, are considered illiquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

¹⁰  Perpetual bond security. The maturity date reflects the next call date.

¹¹  Step bond that converts to the noted fixed rate at a designated future date.

¹²  Represents a preferred security which trades as a bond. Coupon is variable and may periodically change. Security pays income on a quarterly basis.

¹³  GDP-linked bond.

¹⁴  Zero coupon bond. The interest rate represents annualized yield at date of purchase.

¹⁵  Rates shown are the discount rates at date of purchase.

¹⁶  3 Month EURIBOR at July 31, 2011 was 1.557%.

¹⁷  3 Month USD LIBOR at July 31, 2011 was 0.256%

207

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Written options

Number of contracts		Call options written	Expiration date	Premiums received		Current value			Unrealized appreciation (depreciation)
	94	S&P 500 Index, strike @ 1,350	09/17/11	$	157,163	$	(110,920	)	$	46,243
	92	S&P 500 Index, strike @ 1,375	09/17/11		91,807		(51,152	)		40,655
				$	248,970	$	(162,072	)	$	86,898
		Put options written
	168	Euro Stoxx 50 Index, strike @ 2,600	09/16/11		163,363		(160,048	)		3,315
	95	S&P 500 Index, strike @ 1,225	10/22/11		265,801		(265,801	)		—
	123	S&P 500 Index, strike @ 1,250	09/17/11		202,223		(319,800	)		(117,577	)
				$	631,387	$	(745,649	)	$	(114,262	)
				$	880,357	$	(907,721	)	$	(27,364	)

Written option activity for the year ended July 31, 2011 was as follows:

	Number of contracts			Premiums received
Options outstanding at July 31, 2010		224		$	269,063
Options written		6,527			10,739,926
Options terminated in closing purchase transactions		(5,871	)		(10,069,960	)
Options expired prior to exercise		(308	)		(58,672	)
Options outstanding at July 31, 2011		572		$	880,357

Swaptions and foreign exchange written options

Notional amount (000)		Call options written	Counterparty	Pay/ receive floating rate	Expiration date	Premiums received		Current value			Unrealized appreciation (depreciation)
EUR	1,000	3 Month EURIBOR16 Interest Rate Swap, strike @ 2.70%; terminating 11/12/23	Royal Bank of Scotland PLC	Pay	09/12/13	$	14,536	$	(22,494	)	$	(7,958	)
EUR	3,000	6 Month EURIBOR18 Interest Rate Swap, strike @ 3.240%; terminating 08/17/21	Citibank N.A.	Pay	08/15/11		43,122		(17,932	)		25,190
EUR	3,000	6 Month EURIBOR18 Interest Rate Swap, strike @ 3.330%; terminating 08/24/21	Citibank N.A.	Pay	08/22/11		39,218		(13,286	)		25,932
GBP	7,800	GBP Call/EUR Put, strike @ EUR 1.333	BNP Paribas	n/a	11/07/11		90,594		(5,859	)		84,735
GBP	3,700	GBP Call/ZAR Put, strike @ ZAR 13.7	Royal Bank of Scotland PLC	n/a	10/19/11		91,477		(3,882	)		87,595
USD	13,700	3 Month USD LIBOR17 Interest Rate Swap, strike @ 2.120%; terminating 01/30/17	Deutsche Bank AG	Pay	01/26/12		176,730		(138,588	)		38,142
USD	10,100	3 Month USD LIBOR17 Interest Rate Swap, strike @ 2.178%; terminating 01/25/17	JPMorgan Chase Bank N.A.	Pay	01/23/12		135,340		(89,720	)		45,620
USD	4,900	3 Month USD LIBOR17 Interest Rate Swap, strike @ 4.725%; terminating 07/22/26	Bank of America N.A.	Pay	07/20/16		352,310		(344,383	)		7,927
USD	5,600	3 Month USD LIBOR17 Interest Rate Swap, strike @ 4.745%; terminating 07/22/26	Deutsche Bank AG	Pay	07/20/16		400,960		(389,916	)		11,044
						$	1,344,287	$	(1,026,060	)	$	318,227

208

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Swaptions and foreign exchange written options—(concluded)

Notional amount (000)		Put options written	Counterparty	Pay/ receive floating rate	Expiration date	Premiums received		Current value			Unrealized appreciation (depreciation)
EUR	10,200	3 Month EURIBOR16 Interest Rate Swap, strike @ 2.70%; terminating 05/11/23	Royal Bank of Scotland PLC	Receive	11/01/13	$	389,298	$	(225,948	)	$	163,350
EUR	3,000	6 Month EURIBOR18 Interest Rate Swap, strike @ 3.240%; terminating 08/17/21	Citibank N.A.	Receive	08/15/11		43,122		(54,551	)		(11,429	)
EUR	3,000	6 Month EURIIBOR18 Interest Rate Swap, strike @ 3.330%; terminating 08/24/21	Citibank N.A.	Receive	08/22/11		39,218		(80,802	)		(41,584	)
GBP	7,800	GBP Put/EUR Call, strike @ EUR 1.19	BNP Paribas	n/a	11/07/11		470,464		(600,640	)		(130,176	)
USD	13,700	3 Month USD LIBOR17 Interest Rate Swap, strike @ 2.120%; terminating 01/30/17	Deutsche Bank AG	Receive	01/26/12		176,730		(234,698	)		(57,968	)
USD	10,100	3 Month USD LIBOR17 Interest Rate Swap, strike @ 2.178%; terminating 01/25/17	JPMorgan Chase Bank N.A.	Receive	01/23/12		135,340		(193,001	)		(57,661	)
USD	4,900	3 Month USD LIBOR17 Interest Rate Swap, strike @ 4.725%; terminating 07/22/26	Bank of America N.A.	Receive	07/20/16		352,310		(370,641	)		(18,331	)
USD	5,600	3 Month USD LIBOR17 Interest Rate Swap, strike @ 4.745%; terminating 07/22/26	Deutsche Bank AG	Receive	07/20/16		400,960		(428,155	)		(27,195	)
USD	1,000	USD Put/JPY Call, strike @ JPY 68	Royal Bank of Scotland PLC	n/a	12/10/15		84,275		(93,904	)		(9,629	)
USD	1,250	USD Put/JPY Call, strike @ JPY 71	Barclays Bank PLC	n/a	05/16/14		67,475		(88,772	)		(21,297	)
USD	11,700	USD Put/JPY Call, strike @ JPY 75	Royal Bank of Scotland PLC	n/a	08/15/13		592,605		(864,074	)		(271,469	)
						$	2,751,797	$	(3,235,186	)	$	(483,389	)
						$	4,096,084	$	(4,261,246	)	$	(165,162	)

¹⁸  6 Month EURIBOR at July 31, 2011 was 1.801%.

Swaption and foreign exchange written option activity for the year ended July 31, 2011 was as follows:

	Premiums received
Swaption and foreign exchange options outstanding at July 31, 2010	$	—
Swaption and foreign exchange options written		5,824,950
Swaption and foreign exchange options terminated in closing purchase transactions		(1,590,648	)
Swaption and foreign exchange options expired prior to exercise		(138,218	)
Swaption and foreign exchange options outstanding at July 31, 2011	$	4,096,084

Futures contracts

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
US Treasury futures buy contracts:
	145	USD	Ultra Long-Term US Treasury Bond Futures	September 2011	$	18,569,599	$	19,130,938	$	561,339
	67	USD	US Treasury Note 2 Year Futures	September 2011		14,720,496		14,734,766		14,270
	10	USD	US Treasury Note 5 Year Futures	September 2011		1,204,439		1,214,453		10,014
	662	USD	US Treasury Note 10 Year Futures	September 2011		81,258,889		83,205,125		1,946,236

209

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Futures contracts—(continued)

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
Index futures buy contracts:
	7	AUD	ASX SPI 200 Index Futures	September 2011	$	853,850	$	841,385	$	(12,465	)
	8	CAD	S&P TSE 60 Index Futures	September 2011		1,243,532		1,227,815		(15,717	)
	52	CHF	Swiss Market Index Futures	September 2011		4,257,838		3,826,440		(431,398	)
	13	EUR	AEX Index Futures	August 2011		1,237,628		1,223,980		(13,648	)
	50	EUR	CAC 40 Index Futures	August 2011		2,714,769		2,639,411		(75,358	)
	6	EUR	DAX Index Futures	September 2011		1,550,677		1,547,865		(2,812	)
	129	EUR	DJ Euro Stoxx 50 Index Futures	September 2011		5,137,027		4,956,876		(180,151	)
	33	EUR	FTSE MIB Index Futures	September 2011		4,684,335		4,369,846		(314,489	)
	10	EUR	IBEX 35 Index Futures	August 2011		1,377,404		1,379,448		2,044
	90	GBP	FTSE 100 Index Futures	September 2011		8,663,092		8,545,730		(117,362	)
	1	GBP	FTSE 250 Index Futures	September 2011		193,043		188,871		(4,172	)
	18	HKD	Hang Seng Index Futures	August 2011		2,578,380		2,577,779		(601	)
	8	JPY	NIKKEI 225 Index Futures	September 2011		484,877		508,874		23,997
	49	JPY	TOPIX Index Futures	September 2011		5,146,525		5,338,644		192,119
	73	KRW	KOSPI 200 Index Futures	September 2011		9,639,146		9,629,588		(9,558	)
	2	SEK	OMX 30 Index Futures	August 2011		34,463		33,951		(512	)
	23	USD	MSCI Taiwan Index Futures	August 2011		692,151		689,080		(3,071	)
	19	USD	NIKKEI 225 Index Futures	September 2011		892,568		933,850		41,282
	7	USD	Russell 2000 Mini Index Futures	September 2011		543,216		556,850		13,634
	274	USD	S&P 500 E-Mini Index Futures	September 2011		17,838,422		17,651,080		(187,342	)
Interest rate futures buy contracts:
	1	AUD	Australian Treasury Bond 3 Year Futures	September 2011		114,330		114,766		436
	358	EUR	German Euro Bund Futures	September 2011		64,563,200		67,063,201		2,500,001
	50	GBP	United Kingdom Long Gilt 10 Year Futures	September 2011		10,112,999		10,266,760		153,761
	2	JPY	Japan Government Bond 10 Year Futures	September 2011		3,661,899		3,674,828		12,929
	233	JPY	Japan Government Bond 10 Year Mini Futures	September 2011		42,503,063		42,802,695		299,632
	115	USD	90 Day Euro Dollar Futures	September 2011		28,640,834		28,642,188		1,354
	1	USD	90 Day Euro Dollar Futures	December 2011		248,940		248,763		(177	)
	1	USD	90 Day Euro Dollar Futures	March 2012		248,802		248,663		(139	)
	1	USD	90 Day Euro Dollar Futures	June 2012		248,577		248,575		(2	)
	2	USD	90 Day Euro Dollar Futures	September 2012		496,504		496,850		346
	3	USD	90 Day Euro Dollar Futures	December 2012		743,470		744,563		1,093
	2	USD	90 Day Euro Dollar Futures	March 2013		494,855		495,850		995
	2	USD	90 Day Euro Dollar Futures	June 2013		493,841		495,125		1,284
	2	USD	90 Day Euro Dollar Futures	September 2013		492,743		494,175		1,432
	2	USD	90 Day Euro Dollar Futures	December 2013		491,443		492,975		1,532
	1	USD	90 Day Euro Dollar Futures	March 2014		245,002		245,875		873
	1	USD	90 Day Euro Dollar Futures	June 2014		244,365		245,225		860
	1	USD	90 Day Euro Dollar Futures	September 2014		243,841		244,575		734
	1	USD	90 Day Euro Dollar Futures	December 2014		243,191		243,913		722
	1	USD	90 Day Euro Dollar Futures	March 2015		242,603		243,288		685
	1	USD	90 Day Euro Dollar Futures	June 2015		241,991		242,663		672
					$	340,532,859	$	344,948,161	$	4,415,302

210

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Futures contracts—(concluded)

Number of contracts		Currency		Expiration date	Proceeds		Current value		Unrealized appreciation (depreciation)
US Treasury futures sell contracts:
	46	USD	Ultra Long US Treasury Bond Futures	September 2011	$	5,934,750	$	6,069,125	$	(134,375	)
	65	USD	US Treasury Bond 30 Year Futures	September 2011		8,178,099		8,328,125		(150,026	)
	184	USD	US Treasury Note 2 Year Futures	September 2011		40,271,468		40,465,626		(194,158	)
	151	USD	US Treasury Note 10 Year Futures	September 2011		18,370,183		18,978,813		(608,630	)
Index futures sell contracts:
	48	AUD	ASX SPI 200 Index Futures	September 2011		5,964,717		5,769,497		195,220
	8	CAD	S&P TSE 60 Index Futures	September 2011		1,267,605		1,227,815		39,790
	3	EUR	AEX Index Futures	August 2011		288,685		282,457		6,228
	17	EUR	DAX Index Futures	September 2011		4,395,475		4,385,618		9,857
	235	EUR	DJ Euro Stoxx 50 Index Futures	September 2011		9,101,848		9,029,967		71,881
	597	EUR	DJ Euro Stoxx Banks Futures	September 2011		6,784,176		6,138,198		645,978
	4	EUR	FTSE MIB Index Futures	September 2011		552,402		529,678		22,724
	4	EUR	IBEX 35 Index Futures	August 2011		572,929		551,779		21,150
	13	HKD	Hang Seng Index Futures	August 2011		1,855,007		1,861,730		(6,723	)
	5	JPY	NIKKEI 225 Index Futures	September 2011		643,156		636,741		6,415
	34	JPY	TOPIX Index Futures	September 2011		3,576,870		3,704,366		(127,496	)
	16	SEK	OMX 30 Index Futures	August 2011		278,526		271,607		6,919
	28	SGD	MSCI Singapore Index Futures SGX	August 2011		1,679,669		1,696,631		(16,962	)
	161	USD	Russell 2000 Mini Index Futures	September 2011		12,569,089		12,807,550		(238,461	)
Interest rate futures sell contracts:
	548	AUD	Australian Treasury Bond 10 Year Futures	September 2011		63,959,701		65,853,911		(1,894,210	)
	402	CAD	Canadian Government Bond 10 Year Futures	September 2011		52,465,980		53,726,395		(1,260,415	)
	24	EUR	German Euro BOBL Futures	September 2011		4,107,970		4,121,663		(13,693	)
	23	EUR	German Euro Buxl Futures	September 2011		3,600,189		3,669,323		(69,134	)
	3	EUR	German Euro Schatz Futures	September 2011		466,002		467,463		(1,461	)
	1	GBP	3 Month Sterling Interest Rate Futures	September 2011		203,400		203,402		(2	)
	284	GBP	United Kingdom Long Gilt 10 Year Futures	September 2011		56,001,257		58,315,198		(2,313,941	)
	5	JPY	Japan Government Bond 10 Year Futures	September 2011		9,183,806		9,187,069		(3,263	)
	18	USD	90 Day Euro Dollar Futures	September 2011		4,482,569		4,483,125		(556	)
	18	USD	90 Day Euro Dollar Futures	December 2011		4,477,270		4,477,725		(455	)
	1,446	USD	90 Day Euro Dollar Futures	September 2012		358,627,483		359,222,550		(595,067	)
	109	USD	90 Day Euro Dollar Futures	March 2013		26,652,980		27,023,825		(370,845	)
					$	706,513,261	$	713,486,972	$	(6,973,711	)
									$	(2,558,409	)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Bank of America N.A.	AUD	140,000	USD	146,853	09/21/11	$	(6,003	)
Bank of America N.A.	CHF	785,000	USD	958,544	09/21/11		(39,595	)
Bank of America N.A. EU		980,000	USD	1,408,929	09/21/11		2,399
Bank of America N.A.	JPY	152,600,000	USD	1,909,661	09/21/11		(73,776	)
Bank of America N.A.	NOK	17,382,000	USD	3,197,260	09/21/11		(21,013	)

211

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Bank of America N.A.	NZD	2,145,000	USD	1,764,977	09/21/11	$	(113,662	)
Bank of America N.A.	SEK	12,060,000	USD	1,905,976	09/21/11		(5,808	)
Bank of America N.A.	SGD	1,565,000	USD	1,272,658	09/15/11		(27,191	)
Bank of America N.A.	SGD	9,760,000	USD	7,957,585	09/21/11		(148,923	)
Bank of America N.A.	TWD	29,514,000	USD	1,029,259	09/23/11		5,323
Bank of America N.A.	USD	1,734,982	AUD	1,645,000	09/21/11		61,076
Bank of America N.A.	USD	795,039	CHF	665,000	09/21/11		50,518
Bank of America N.A.	USD	619,871	EUR	435,000	09/15/11		4,553
Bank of America N.A.	USD	950,860	EUR	665,000	09/21/11		3,570
Bank of America N.A.	USD	1,591,465	GBP	995,000	09/21/11		40,920
Bank of America N.A.	USD	481,352	GBP	294,000	10/19/11		837
Bank of America N.A.	USD	2,066,381	JPY	167,200,000	09/21/11		106,821
Bank of America N.A.	USD	458,303	NOK	2,509,000	09/21/11		6,238
Bank of America N.A.	USD	805,799	NZD	970,000	09/21/11		43,749
Bank of America N.A.	USD	154,241	SGD	190,000	09/15/11		3,568
Bank of America N.A.	USD	8,602,001	SGD	10,570,000	09/21/11		177,280
Bank of America N.A.	USD	1,037,034	TWD	29,514,000	09/23/11		(13,098	)
Barclays Bank PLC	AUD	39,439	USD	41,835	08/12/11		(1,443	)
Barclays Bank PLC	AUD	1,495,000	USD	1,580,058	09/15/11		(53,469	)
Barclays Bank PLC	AUD	890,000	USD	946,382	09/21/11		(25,346	)
Barclays Bank PLC	CHF	230,000	USD	265,712	08/09/11		(26,546	)
Barclays Bank PLC	CHF	135,000	USD	162,036	09/21/11		(9,619	)
Barclays Bank PLC	CZK	36,837,000	PLN	6,000,000	08/17/11		(36,251	)
Barclays Bank PLC	CZK	36,446,982	PLN	6,000,000	10/18/11		(25,520	)
Barclays Bank PLC	EUR	697,936	USD	1,028,982	08/09/11		26,270
Barclays Bank PLC	EUR	3,847,611	USD	5,524,212	08/12/11		(3,226	)
Barclays Bank PLC	EUR	2,162,427	USD	3,108,960	08/16/11		2,708
Barclays Bank PLC	EUR	118,795	USD	171,722	09/09/11		1,170
Barclays Bank PLC	EUR	545,000	USD	793,575	09/15/11		11,251
Barclays Bank PLC	EUR	4,120,795	USD	5,890,624	09/21/11		(23,682	)
Barclays Bank PLC	EUR	450,000	USD	651,755	10/07/11		6,167
Barclays Bank PLC	EUR	608,000	USD	860,890	10/19/11		(11,095	)
Barclays Bank PLC	GBP	2,532,519	USD	4,185,742	08/10/11		29,076
Barclays Bank PLC	GBP	201,830	USD	332,340	09/08/11		1,173
Barclays Bank PLC	GBP	495,000	USD	797,794	09/15/11		(14,350	)
Barclays Bank PLC	GBP	1,470,000	USD	2,372,055	09/21/11		(39,609	)
Barclays Bank PLC	GBP	139,921	USD	225,171	10/07/11		(4,343	)
Barclays Bank PLC	GBP	2,310,000	USD	3,745,924	10/19/11		(42,705	)
Barclays Bank PLC	JPY	77,700,000	USD	966,830	09/15/11		(43,019	)
Barclays Bank PLC	JPY	342,347,507	USD	4,272,502	09/21/11		(177,201	)
Barclays Bank PLC	JPY	50,000,000	USD	620,010	10/07/11		(29,980	)
Barclays Bank PLC	NOK	70,000	USD	13,006	09/21/11		45
Barclays Bank PLC	SEK	4,300,000	USD	685,765	08/12/11		2,652
Barclays Bank PLC	SGD	450,000	USD	364,882	08/12/11		(8,850	)

212

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Barclays Bank PLC	SGD	376,000	USD	308,632	10/19/11	$	(3,694	)
Barclays Bank PLC	USD	316,952	CAD	305,000	09/21/11		1,919
Barclays Bank PLC	USD	336,748	CAD	320,000	10/07/11		(2,314	)
Barclays Bank PLC	USD	2,079,950	CHF	1,735,000	09/21/11		126,129
Barclays Bank PLC	USD	76,398	EUR	53,839	09/09/11		897
Barclays Bank PLC	USD	481,246	EUR	330,000	09/21/11		(7,618	)
Barclays Bank PLC	USD	955,715	GBP	585,000	09/15/11		4,093
Barclays Bank PLC	USD	4,304,498	GBP	2,675,000	09/21/11		84,075
Barclays Bank PLC	USD	2,286,049	GBP	1,421,000	10/19/11		44,532
Barclays Bank PLC	USD	297,986	JPY	23,594,831	08/26/11		8,599
Barclays Bank PLC	USD	654,496	JPY	52,200,000	09/15/11		23,935
Barclays Bank PLC	USD	8,576,948	JPY	691,600,000	09/21/11		412,207
Barclays Bank PLC	USD	2,344,105	KRW	2,494,831,000	10/19/11		9,375
Barclays Bank PLC	USD	1,119,100	SGD	1,375,000	09/15/11		22,940
Barclays Bank PLC	USD	957,908	SGD	1,170,000	09/21/11		13,876
Barclays Bank PLC	USD	3,684,703	SGD	4,489,000	10/19/11		44,103
BNP Paribas SA	AUD	4,357,835	USD	4,631,095	08/12/11		(150,997	)
BNP Paribas SA	AUD	1,505,000	USD	1,574,034	09/21/11		(69,168	)
BNP Paribas SA	CAD	550,000	USD	575,552	08/09/11		(4	)
BNP Paribas SA	CAD	2,300,000	USD	2,377,492	08/12/11		(29,223	)
BNP Paribas SA	CAD	1,245,000	USD	1,269,479	09/21/11		(32,143	)
BNP Paribas SA	CHF	1,600,000	USD	1,825,607	08/12/11		(207,588	)
BNP Paribas SA	DKK	1,200,000	USD	231,193	08/12/11		(198	)
BNP Paribas SA	EUR	543,929	USD	778,195	08/12/11		(3,208	)
BNP Paribas SA	EUR	153,399	USD	220,537	08/18/11		194
BNP Paribas SA	EUR	19,332,927	USD	27,914,309	09/09/11		158,423
BNP Paribas SA	EUR	2,685,000	USD	3,828,797	09/21/11		(24,807	)
BNP Paribas SA	EUR	3,841,847	USD	5,421,742	10/21/11		(87,894	)
BNP Paribas SA	EUR	700,000	USD	1,003,771	10/26/11		25
BNP Paribas SA	GBP	95,000	USD	152,918	09/21/11		(2,938	)
BNP Paribas SA	HKD	3,900,000	USD	502,018	08/12/11		1,587
BNP Paribas SA	JPY	320,000,000	USD	3,965,259	08/12/11		(191,952	)
BNP Paribas SA	JPY	89,800,000	USD	1,122,359	09/21/11		(44,828	)
BNP Paribas SA	JPY	277,005,000	USD	3,501,681	10/19/11		(99,744	)
BNP Paribas SA	NOK	1,000,000	USD	181,571	08/12/11		(4,043	)
BNP Paribas SA	NOK	13,670,000	USD	2,530,029	09/15/11		(1,968	)
BNP Paribas SA	NOK	23,262,000	USD	4,237,855	09/21/11		(69,098	)
BNP Paribas SA	SEK	48,393,000	USD	7,536,936	09/21/11		(134,455	)
BNP Paribas SA	USD	1,870,470	AUD	1,744,130	08/12/11		43,460
BNP Paribas SA	USD	1,747,616	CAD	1,705,000	09/21/11		34,928
BNP Paribas SA	USD	1,436,211	CHF	1,200,000	09/21/11		89,607
BNP Paribas SA	USD	495,562	EUR	350,000	08/12/11		7,244
BNP Paribas SA	USD	1,628,636	EUR	1,133,154	09/09/11		(1,790	)
BNP Paribas SA	USD	2,544,658	EUR	1,770,000	09/21/11		(4,293	)

213

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
BNP Paribas SA	USD	472,743	GBP	295,000	09/21/11	$	11,231
BNP Paribas SA	USD	1,359,930	JPY	107,579,000	10/19/11		38,737
BNP Paribas SA	USD	952,269	NOK	5,300,000	09/15/11		29,412
BNP Paribas SA	USD	8,424,239	NOK	45,843,000	09/21/11		63,580
BNP Paribas SA	USD	475,726	SEK	2,950,000	09/15/11		(7,930	)
BNP Paribas SA	USD	11,078,097	SEK	70,229,144	09/21/11		54,820
Brown Brothers Harriman & Co.	CHF	260,000	USD	307,721	09/21/11		(22,872	)
Brown Brothers Harriman & Co.	GBP	585,000	USD	957,353	09/21/11		(2,391	)
Brown Brothers Harriman & Co.	USD	5,858	CHF	5,000	09/21/11		500
Brown Brothers Harriman & Co.	USD	155,581	EUR	110,000	09/15/11		2,320
Brown Brothers Harriman & Co.	USD	1,590,722	GBP	980,000	09/21/11		17,055
Citibank N.A.	AUD	2,996,000	JPY	251,406,344	09/21/11		(3,434	)
Citibank N.A.	AUD	2,024,000	USD	2,128,886	09/21/11		(80,974	)
Citibank N.A.	CAD	1,685,000	USD	1,750,106	09/21/11		(11,528	)
Citibank N.A.	CHF	1,310,000	USD	1,613,202	09/21/11		(52,483	)
Citibank N.A.	EUR	980,000	NZD	1,739,882	09/21/11		117,298
Citibank N.A.	EUR	3,489,000	USD	5,013,231	09/21/11		5,699
Citibank N.A.	GBP	90,000	USD	145,183	09/15/11		(2,480	)
Citibank N.A.	GBP	2,809,000	USD	4,532,519	09/21/11		(75,892	)
Citibank N.A.	JPY	319,700,000	USD	3,986,466	09/21/11		(168,873	)
Citibank N.A.	MXN	9,075,000	USD	771,933	10/19/11		4,229
Citibank N.A.	NOK	7,841,025	EUR	1,013,000	09/21/11		2,129
Citibank N.A.	NOK	18,432,000	USD	3,357,208	09/21/11		(55,472	)
Citibank N.A.	NZD	5,675,000	USD	4,591,807	09/21/11		(378,485	)
Citibank N.A.	SEK	20,109,786	USD	3,143,087	09/21/11		(44,772	)
Citibank N.A.	USD	3,200,516	AUD	3,034,671	09/21/11		112,825
Citibank N.A.	USD	2,732,690	CAD	2,675,000	09/15/11		64,337
Citibank N.A.	USD	1,432,603	CAD	1,405,000	09/21/11		36,296
Citibank N.A.	USD	325,888	CHF	275,000	09/21/11		23,778
Citibank N.A.	USD	4,934,250	EUR	3,429,000	09/21/11		(12,832	)
Citibank N.A.	USD	3,568,984	MXN	41,967,000	10/19/11		(18,762	)
Citibank N.A.	USD	4,842,903	NOK	26,563,805	09/21/11		75,379
Citibank N.A.	USD	2,129,348	NOK	11,814,000	10/19/11		53,951
Citibank N.A.	USD	1,415,628	NZD	1,742,000	09/21/11		110,055
Citibank N.A.	USD	4,982,520	SEK	32,023,217	09/21/11		93,889
Credit Suisse London Branch	CAD	930,000	USD	952,898	09/21/11		(19,398	)
Credit Suisse London Branch	CHF	592,287	GBP	444,000	09/21/11		(24,681	)
Credit Suisse London Branch	CHF	130,000	USD	155,401	09/15/11		(9,882	)
Credit Suisse London Branch	CHF	945,000	USD	1,131,343	09/21/11		(70,239	)
Credit Suisse London Branch	EUR	2,440,000	USD	3,513,616	09/21/11		11,644
Credit Suisse London Branch	GBP	1,780,000	USD	2,863,072	09/21/11		(57,175	)
Credit Suisse London Branch	JPY	153,300,000	USD	1,912,988	09/21/11		(79,547	)
Credit Suisse London Branch	NOK	18,100,000	USD	3,323,424	09/21/11		(27,786	)

214

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Credit Suisse London Branch	NZD	1,535,000	USD	1,274,552	09/21/11	$	(69,835	)
Credit Suisse London Branch	TRY	1,544,000	USD	920,253	10/19/11		19,486
Credit Suisse London Branch	USD	5,736,587	CHF	4,775,000	09/21/11		334,897
Credit Suisse London Branch	USD	3,034,014	EUR	2,125,000	09/21/11		15,859
Credit Suisse London Branch	USD	953,354	JPY	77,100,000	09/21/11		48,763
Credit Suisse London Branch	USD	636,984	NZD	770,000	09/21/11		37,399
Credit Suisse London Branch	USD	1,117,813	SEK	7,200,000	09/21/11		23,551
Credit Suisse London Branch	USD	323,042	TRY	542,000	10/19/11		(6,840	)
Deutsche Bank AG London	AUD	805,338	EUR	591,000	09/21/11		(31,067	)
Deutsche Bank AG London	AUD	1,370,000	USD	1,414,855	09/21/11		(80,950	)
Deutsche Bank AG London	AUD	160,000	USD	174,041	10/19/11		(34	)
Deutsche Bank AG London	CAD	5,000	USD	5,119	09/15/11		(109	)
Deutsche Bank AG London	CHF	5,480,000	USD	6,695,470	09/21/11		(272,432	)
Deutsche Bank AG London	CNY	4,250,000	USD	660,194	03/30/12		(3,396	)
Deutsche Bank AG London	EUR	1,445,000	CAD	1,942,846	09/21/11		(42,707	)
Deutsche Bank AG London	EUR	219,999	USD	315,897	09/01/11		(15	)
Deutsche Bank AG London	EUR	110,000	USD	157,892	09/21/11		16
Deutsche Bank AG London	EUR	1,044,000	USD	1,470,370	10/19/11		(26,921	)
Deutsche Bank AG London	GBP	1,096,519	USD	1,752,530	08/05/11		(47,298	)
Deutsche Bank AG London	GBP	2,070,000	USD	3,334,481	09/21/11		(61,536	)
Deutsche Bank AG London	JPY	25,900,000	USD	318,816	09/21/11		(17,822	)
Deutsche Bank AG London	NOK	7,710,000	USD	1,420,915	09/21/11		(6,590	)
Deutsche Bank AG London	NZD	2,485,000	USD	2,060,636	09/21/11		(115,782	)
Deutsche Bank AG London	SEK	2,950,000	USD	474,811	09/15/11		7,015
Deutsche Bank AG London	SEK	35,120,000	USD	5,539,567	09/21/11		(27,752	)
Deutsche Bank AG London	SGD	5,875,000	USD	4,792,702	09/21/11		(86,983	)
Deutsche Bank AG London	USD	2,212,519	AUD	2,105,000	09/21/11		85,780
Deutsche Bank AG London	USD	480,001	CHF	385,000	09/21/11		9,532
Deutsche Bank AG London	USD	1,438,846	CNY	9,223,000	03/30/12		1,224
Deutsche Bank AG London	USD	5,100,293	EUR	3,565,000	09/21/11		16,317
Deutsche Bank AG London	USD	388,718	EUR	276,000	10/19/11		7,117
Deutsche Bank AG London	USD	1,270,909	GBP	790,000	09/21/11		25,155
Deutsche Bank AG London	USD	2,227,677	JPY	177,000,000	09/21/11		72,902
Deutsche Bank AG London	USD	1,891,012	NOK	10,461,000	09/21/11		45,839
Deutsche Bank AG London	USD	4,924,931	NZD	5,995,000	09/21/11		325,624
Deutsche Bank AG London	USD	3,815,137	SEK	24,129,000	09/21/11		9,858
Deutsche Bank AG London	USD	1,117,504	SGD	1,350,000	09/21/11		3,785
Goldman Sachs International	AUD	450,000	USD	472,694	09/21/11		(18,629	)
Goldman Sachs International	CAD	2,730,000	USD	2,861,927	09/21/11		7,766
Goldman Sachs International	CHF	385,000	USD	479,249	09/21/11		(10,284	)
Goldman Sachs International	CHF	2,166,000	USD	2,654,184	10/19/11		(100,999	)
Goldman Sachs International	GBP	895,000	USD	1,436,600	09/21/11		(31,726	)
Goldman Sachs International	JPY	385,600,000	USD	4,758,902	09/21/11		(252,980	)
Goldman Sachs International	JPY	122,672,000	USD	1,566,412	10/19/11		(28,483	)

215

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Goldman Sachs International	NOK	6,048,000	USD	1,105,586	09/21/11	$	(14,199	)
Goldman Sachs International	SEK	14,657,000	USD	2,256,655	09/21/11		(66,813	)
Goldman Sachs International	USD	152,656	AUD	145,000	09/21/11		5,659
Goldman Sachs International	USD	1,823,404	CAD	1,746,000	10/19/11		823
Goldman Sachs International	USD	1,111,756	GBP	690,000	09/21/11		20,250
Goldman Sachs International	USD	1,287,641	JPY	103,300,000	09/21/11		55,013
Goldman Sachs International	USD	931,293	NOK	5,140,000	09/21/11		20,377
Goldman Sachs International	USD	1,665,801	NOK	9,302,000	10/19/11		53,266
Goldman Sachs International	USD	785,125	NZD	965,000	09/21/11		60,043
Goldman Sachs International	USD	2,339,212	SEK	15,134,000	09/21/11		59,871
HSBC Bank PLC	AUD	2,680,000	USD	2,797,840	09/21/11		(128,261	)
HSBC Bank PLC	CHF	1,205,417	EUR	1,005,000	09/21/11		(90,296	)
HSBC Bank PLC	CHF	594,683	GBP	443,000	09/21/11		(29,368	)
HSBC Bank PLC	EUR	1,476,000	CHF	1,801,064	09/21/11		171,675
HSBC Bank PLC	EUR	4,029,000	SEK	37,043,537	09/21/11		89,685
HSBC Bank PLC	EUR	1,020,000	USD	1,443,814	09/21/11		(20,125	)
HSBC Bank PLC	NOK	7,842,401	EUR	1,013,000	09/21/11		1,874
HSBC Bank PLC	NOK	12,797,600	USD	2,285,000	09/21/11		(84,472	)
HSBC Bank PLC	NZD	1,757,000	USD	1,425,821	09/21/11		(112,998	)
HSBC Bank PLC	SEK	30,168,100	USD	4,652,433	09/21/11		(129,898	)
HSBC Bank PLC	USD	2,565,000	CHF	2,080,745	09/21/11		80,699
HSBC Bank PLC	USD	4,419,801	EUR	3,098,708	09/21/11		27,571
HSBC Bank PLC	USD	5,251,000	NOK	28,464,495	09/21/11		19,193
HSBC Bank PLC	USD	1,478,000	SEK	9,287,542	09/21/11		(5,713	)
HSBC Bank USA	AUD	1,350,000	USD	1,413,933	09/21/11		(60,035	)
HSBC Bank USA	CHF	5,525,000	USD	6,538,249	09/21/11		(486,872	)
HSBC Bank USA	GBP	1,590,000	USD	2,554,510	09/21/11		(54,025	)
HSBC Bank USA	JPY	241,000,000	USD	3,028,837	09/21/11		(103,590	)
HSBC Bank USA	MXN	27,461,000	USD	2,326,524	10/19/11		3,446
HSBC Bank USA	NZD	2,550,000	USD	2,059,915	09/21/11		(173,432	)
HSBC Bank USA	SEK	4,140,000	USD	635,274	09/21/11		(21,010	)
HSBC Bank USA	USD	473,237	CAD	465,000	09/21/11		12,912
HSBC Bank USA	USD	2,718,685	CHF	2,285,000	09/21/11		186,727
HSBC Bank USA	USD	1,120,792	GBP	695,000	09/21/11		19,417
HSBC Bank USA	USD	316,157	NZD	390,000	09/21/11		25,413
HSBC Bank USA	USD	54,204	PLN	156,000	10/19/11		1,421
HSBC Bank USA	USD	958,100	SGD	1,180,000	09/21/11		21,990
HSBC Bank USA	USD	447,381	ZAR	3,128,000	10/19/11		15,357
JPMorgan Chase Bank	AUD	290,000	USD	304,790	09/15/11		(12,081	)
JPMorgan Chase Bank	AUD	1,520,000	USD	1,590,529	09/21/11		(69,050	)
JPMorgan Chase Bank	BRL	882,000	USD	551,595	10/18/11		(7,075	)
JPMorgan Chase Bank	CAD	155,000	USD	157,124	09/15/11		(4,946	)
JPMorgan Chase Bank	CHF	3,747,358	USD	4,475,003	09/21/11		(289,818	)
JPMorgan Chase Bank	CNY	21,782,000	USD	3,343,405	09/14/11		(38,972	)

216

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
JPMorgan Chase Bank	CNY	10,503,000	USD	1,610,841	03/30/12	$	(29,087	)
JPMorgan Chase Bank	EUR	1,717,811	USD	2,467,472	09/01/11		747
JPMorgan Chase Bank	EUR	1,000,000	USD	1,421,010	09/21/11		(14,224	)
JPMorgan Chase Bank	JPY	68,490,560	USD	864,780	08/26/11		(25,168	)
JPMorgan Chase Bank	JPY	13,658,000	USD	173,298	10/19/11		(4,273	)
JPMorgan Chase Bank	MXN	1,302,261	USD	111,247	09/30/11		894
JPMorgan Chase Bank	NOK	21,019,000	USD	3,831,868	09/21/11		(59,794	)
JPMorgan Chase Bank	NOK	1,839,000	USD	326,067	10/19/11		(13,792	)
JPMorgan Chase Bank	NZD	10,000	USD	8,132	09/21/11		(626	)
JPMorgan Chase Bank	SEK	13,110,000	USD	2,060,807	09/21/11		(17,427	)
JPMorgan Chase Bank	SGD	5,890,000	USD	4,779,627	09/21/11		(112,517	)
JPMorgan Chase Bank	USD	1,743,522	AUD	1,650,000	09/21/11		57,995
JPMorgan Chase Bank	USD	338,848	AUD	319,000	10/19/11		8,213
JPMorgan Chase Bank	USD	161,240	BRL	260,000	10/19/11		3,395
JPMorgan Chase Bank	USD	723,000	CAD	684,009	09/21/11		(7,883	)
JPMorgan Chase Bank	USD	2,878,659	CHF	2,329,806	09/21/11		83,724
JPMorgan Chase Bank	USD	4,736,511	CNY	31,317,000	09/14/11		126,491
JPMorgan Chase Bank	USD	2,195,912	CNY	14,504,000	03/30/12		68,727
JPMorgan Chase Bank	USD	2,336,584	CNY	14,856,000	12/07/12		10,070
JPMorgan Chase Bank	USD	693,623	EUR	482,888	09/01/11		(210	)
JPMorgan Chase Bank	USD	953,459	EUR	670,000	09/21/11		8,148
JPMorgan Chase Bank	USD	1,557,042	GBP	974,370	08/05/11		42,289
JPMorgan Chase Bank	USD	625,067	GBP	390,000	09/21/11		14,763
JPMorgan Chase Bank	USD	3,664,071	JPY	293,580,000	09/08/11		151,233
JPMorgan Chase Bank	USD	650,189	KRW	706,625,000	09/09/11		18,227
JPMorgan Chase Bank	USD	1,197,590	NOK	6,620,000	09/15/11		28,586
JPMorgan Chase Bank	USD	6,236,317	NOK	33,768,169	09/21/11		15,851
JPMorgan Chase Bank	USD	635,701	NZD	785,000	09/15/11		52,131
JPMorgan Chase Bank	USD	627,050	NZD	785,000	09/21/11		60,470
JPMorgan Chase Bank	USD	217,331	NZD	256,000	10/19/11		6,391
JPMorgan Chase Bank	USD	1,129,155	SEK	7,290,000	09/21/11		26,476
JPMorgan Chase Bank	USD	2,467,384	SEK	16,151,000	10/19/11		88,968
JPMorgan Chase Bank	USD	4,469,978	SGD	5,480,000	09/21/11		81,627
JPMorgan Chase Bank	ZAR	7,888,905	USD	1,155,756	09/02/11		(19,360	)
Morgan Stanley & Co., Inc.	EUR	450,000	USD	635,135	09/21/11		(10,721	)
Morgan Stanley & Co., Inc.	GBP	485,000	USD	791,884	09/21/11		(3,801	)
Morgan Stanley & Co., Inc.	NZD	920,000	USD	798,514	09/21/11		(7,242	)
Morgan Stanley & Co., Inc.	SGD	380,000	USD	315,790	09/21/11		168
Morgan Stanley & Co., Inc.	USD	791,522	CAD	760,000	09/21/11		3,042
Morgan Stanley & Co., Inc.	USD	1,276,765	JPY	102,900,000	09/21/11		60,690
Morgan Stanley & Co., Inc.	USD	2,215,068	NOK	12,075,000	09/21/11		20,615
Morgan Stanley & Co., Inc.	USD	795,683	NZD	985,000	09/21/11		67,002
Morgan Stanley Capital Services, Inc.	AUD	41,805,539	USD	43,875,079	09/21/11		(1,769,400	)
Morgan Stanley Capital Services, Inc.	CAD	9,796,536	USD	10,003,827	09/21/11		(238,256	)
Morgan Stanley Capital Services, Inc.	CHF	43,486,084	USD	51,917,903	09/21/11		(3,375,310	)

217

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Morgan Stanley Capital Services, Inc.	EUR	10,203,705	USD	14,674,734	09/21/11	$	30,028
Morgan Stanley Capital Services, Inc.	GBP	12,841,594	USD	20,602,637	09/21/11		(465,128	)
Morgan Stanley Capital Services, Inc.	JPY	1,275,761,956	USD	15,928,015	09/21/11		(653,855	)
Morgan Stanley Capital Services, Inc.	NZD	13,543,598	USD	11,057,149	09/21/11		(804,636	)
Morgan Stanley Capital Services, Inc.	SEK	127,639,017	USD	19,834,675	09/21/11		(399,014	)
Morgan Stanley Capital Services, Inc.	USD	8,919,187	AUD	8,313,540	09/21/11		157,772
Morgan Stanley Capital Services, Inc.	USD	6,661,079	CAD	6,380,152	09/21/11		9,243
Morgan Stanley Capital Services, Inc.	USD	17,101,685	CHF	14,108,909	09/21/11		838,006
Morgan Stanley Capital Services, Inc.	USD	29,659,815	EUR	20,769,723	09/21/11		149,602
Morgan Stanley Capital Services, Inc.	USD	47,898,161	GBP	29,400,161	09/21/11		335,389
Morgan Stanley Capital Services, Inc.	USD	7,186,720	JPY	578,411,376	09/21/11		331,252
Morgan Stanley Capital Services, Inc.	USD	25,286,493	NZD	30,834,195	09/21/11		1,718,783
Morgan Stanley Capital Services, Inc.	USD	28,675,468	SEK	180,825,105	09/21/11		(10,574	)
Royal Bank of Canada	AUD	1,345,000	USD	1,411,876	09/21/11		(56,633	)
Royal Bank of Canada	BRL	3,693,000	USD	2,328,970	10/19/11		(9,482	)
Royal Bank of Canada	CAD	1,502,000	JPY	124,264,967	09/21/11		44,838
Royal Bank of Canada	CAD	780,000	USD	793,015	09/15/11		(22,567	)
Royal Bank of Canada	CAD	8,746,022	USD	8,939,319	09/21/11		(204,473	)
Royal Bank of Canada	CAD	441,000	USD	459,069	10/19/11		(1,689	)
Royal Bank of Canada	EUR	2,422,000	USD	3,439,796	09/21/11		(36,342	)
Royal Bank of Canada	GBP	885,000	USD	1,439,917	09/21/11		(12,004	)
Royal Bank of Canada	JPY	57,552,501	CAD	703,000	09/21/11		(13,073	)
Royal Bank of Canada	JPY	101,600,000	USD	1,267,249	09/21/11		(53,310	)
Royal Bank of Canada	MXN	45,733,000	USD	3,873,368	10/19/11		4,560
Royal Bank of Canada	NOK	1,717,000	USD	316,889	09/21/11		(1,013	)
Royal Bank of Canada	SEK	4,596,327	USD	710,000	09/21/11		(18,622	)
Royal Bank of Canada	USD	5,850,237	AUD	5,482,000	09/21/11		135,167
Royal Bank of Canada	USD	2,149,855	BRL	3,433,000	10/19/11		23,962
Royal Bank of Canada	USD	957,649	CAD	940,000	09/15/11		25,231
Royal Bank of Canada	USD	12,783,388	CAD	12,372,871	09/21/11		152,203
Royal Bank of Canada	USD	3,286,100	CAD	3,154,000	10/19/11		9,209
Royal Bank of Canada	USD	3,200,390	CHF	2,680,000	09/21/11		207,271
Royal Bank of Canada	USD	1,429,917	EUR	1,019,000	09/21/11		32,587
Royal Bank of Canada	USD	3,191,878	GBP	1,950,000	09/21/11		7,269
Royal Bank of Canada	USD	318,066	JPY	25,500,000	09/15/11		13,352
Royal Bank of Canada	USD	3,349,623	JPY	262,800,000	09/21/11		66,151
Royal Bank of Canada	USD	3,093,083	MXN	36,473,000	10/19/11		(7,630	)
Royal Bank of Canada	USD	312,489	NOK	1,750,000	09/15/11		11,651
Royal Bank of Canada	USD	4,057	NZD	5,000	09/21/11		322
Royal Bank of Canada	USD	4,058	SGD	5,000	09/21/11		95
Royal Bank of Scotland PLC	AUD	2,532,000	USD	2,690,192	09/21/11		(74,318	)
Royal Bank of Scotland PLC	AUD	6,893,000	USD	7,265,980	10/19/11		(233,373	)
Royal Bank of Scotland PLC	CHF	987,494	EUR	828,000	09/21/11		(67,240	)
Royal Bank of Scotland PLC	CHF	1,681,904	USD	1,996,989	09/21/11		(141,578	)

218

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
Royal Bank of Scotland PLC	CZK	36,807,000	PLN	6,000,000	08/12/11	$	(33,413	)
Royal Bank of Scotland PLC	EUR	504,000	CAD	685,927	09/21/11		(6,235	)
Royal Bank of Scotland PLC	EUR	1,007,000	JPY	112,161,674	09/21/11		12,554
Royal Bank of Scotland PLC	EUR	987,000	SEK	9,133,895	09/21/11		31,354
Royal Bank of Scotland PLC	EUR	11,310	USD	15,741	08/12/11		(506	)
Royal Bank of Scotland PLC	EUR	2,162,661	USD	3,057,492	08/17/11		(49,029	)
Royal Bank of Scotland PLC	EUR	4,585,754	USD	6,545,585	08/18/11		(41,408	)
Royal Bank of Scotland PLC	EUR	99,731	USD	143,344	09/09/11		162
Royal Bank of Scotland PLC	EUR	3,215,000	USD	4,592,319	09/21/11		(21,959	)
Royal Bank of Scotland PLC	GBP	1,314,000	JPY	169,801,781	09/21/11		51,287
Royal Bank of Scotland PLC	GBP	1,757,000	NOK	15,620,767	09/21/11		9,668
Royal Bank of Scotland PLC	GBP	1,783,000	USD	2,862,131	09/21/11		(63,037	)
Royal Bank of Scotland PLC	GBP	832,000	USD	1,366,260	10/19/11		1,698
Royal Bank of Scotland PLC	JPY	115,372,522	CAD	1,372,000	09/21/11		(65,170	)
Royal Bank of Scotland PLC	JPY	319,510,886	USD	4,089,253	09/21/11		(63,629	)
Royal Bank of Scotland PLC	MXN	9,183,000	USD	781,791	10/19/11		4,951
Royal Bank of Scotland PLC	NOK	20,000	USD	3,663	09/21/11		(40	)
Royal Bank of Scotland PLC	SEK	18,170,688	EUR	1,989,928	09/21/11		(24,455	)
Royal Bank of Scotland PLC	SEK	14,941,145	USD	2,270,617	09/21/11		(97,895	)
Royal Bank of Scotland PLC	USD	1,420,537	AUD	1,344,000	09/21/11		46,881
Royal Bank of Scotland PLC	USD	1,720,308	AUD	1,632,000	10/19/11		55,254
Royal Bank of Scotland PLC	USD	1,662,874	CAD	1,589,431	09/21/11		(1,156	)
Royal Bank of Scotland PLC	USD	910,211	CAD	872,000	10/19/11		858
Royal Bank of Scotland PLC	USD	154,437	CHF	130,000	09/15/11		10,846
Royal Bank of Scotland PLC	USD	956,976	EUR	670,000	09/21/11		4,631
Royal Bank of Scotland PLC	USD	5,462,225	GBP	3,373,592	09/21/11		72,450
Royal Bank of Scotland PLC	USD	5,303,013	JPY	419,861,640	09/21/11		154,190
Royal Bank of Scotland PLC	USD	1,773,563	NZD	2,104,000	09/21/11		69,168
Royal Bank of Scotland PLC	USD	294,660	PLN	832,000	10/19/11		2,006
Royal Bank of Scotland PLC	USD	1,765,546	SEK	10,950,000	09/21/11		(29,722	)
Standard Chartered Bank	JPY	51,100,000	USD	642,686	09/21/11		(21,492	)
Standard Chartered Bank	USD	159,522	JPY	12,600,000	09/21/11		4,248
Standard Chartered Bank	USD	315,600	NZD	375,000	09/21/11		12,833
Standard Chartered Bank	USD	317,415	SGD	390,000	09/21/11		6,513
State Street Bank & Trust Co.	CHF	2,455,258	EUR	2,014,158	09/21/11		(231,110	)
State Street Bank & Trust Co.	CHF	1,065,000	USD	1,271,293	09/21/11		(82,871	)
State Street Bank & Trust Co.	EUR	220,000	USD	320,379	09/21/11		4,628
State Street Bank & Trust Co.	GBP	585,000	USD	960,313	09/21/11		569
State Street Bank & Trust Co.	NZD	390,000	USD	314,761	09/21/11		(26,809	)
State Street Bank & Trust Co.	SEK	6,930,000	USD	1,104,639	09/21/11		6,077
State Street Bank & Trust Co.	USD	800,937	CHF	670,000	09/21/11		50,978
State Street Bank & Trust Co.	USD	5,180,166	EUR	3,587,000	09/16/11		(31,316	)
State Street Bank & Trust Co.	USD	480,522	EUR	340,000	09/21/11		7,458
State Street Bank & Trust Co.	USD	3,506,252	GBP	2,165,000	09/21/11		45,621

219

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Forward foreign currency contracts—(concluded)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
State Street Bank & Trust Co.	USD	953,477	SEK	5,890,000	09/21/11	$	(19,778	)
Westpac Banking Corp.	AUD	8,125,000	USD	8,649,968	09/21/11		(221,138	)
Westpac Banking Corp.	CAD	615,000	USD	637,185	09/21/11		(5,785	)
Westpac Banking Corp.	GBP	200,000	USD	320,148	09/21/11		(7,970	)
Westpac Banking Corp.	JPY	115,514,609	AUD	1,373,000	09/21/11		(2,335	)
Westpac Banking Corp.	JPY	25,800,000	USD	320,321	09/21/11		(15,017	)
Westpac Banking Corp.	NZD	785,000	USD	637,059	09/15/11		(50,773	)
Westpac Banking Corp.	NZD	6,301,341	USD	5,136,063	09/21/11		(382,792	)
Westpac Banking Corp.	NZD	2,679,000	USD	2,239,698	10/19/11		(101,518	)
Westpac Banking Corp.	SGD	575,000	USD	477,614	09/21/11		28
Westpac Banking Corp.	USD	1,891,056	AUD	1,785,000	09/15/11		59,343
Westpac Banking Corp.	USD	9,058,094	AUD	8,540,000	09/21/11		266,121
Westpac Banking Corp.	USD	1,756,457	CAD	1,720,000	09/21/11		41,769
Westpac Banking Corp.	USD	478,724	CHF	390,000	09/21/11		17,167
Westpac Banking Corp.	USD	1,117,253	EUR	780,000	09/21/11		2,229
Westpac Banking Corp.	USD	4,355,628	GBP	2,656,000	09/16/11		2,014
Westpac Banking Corp.	USD	2,068,095	JPY	164,100,000	09/21/11		64,815
Westpac Banking Corp.	USD	8,847,915	NZD	10,711,000	09/21/11		533,018
Westpac Banking Corp.	USD	881,165	NZD	1,054,000	10/19/11		39,940
Westpac Banking Corp.	USD	1,434,241	SGD	1,760,000	09/21/11		27,588
						$	(5,634,364	)

Interest rate swaps

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio†			Payments received by the Portfolio†			Upfront payments received (made)		Value			Unrealized appreciation (depreciation)
Bank of America N.A.	USD	9,000	07/15/14		1.665	%		0.256	%19	$	—	$	(27,339	)	$	(27,339	)
Bank of America N.A.	USD	8,300	07/25/14		1.761			0.256	19		—		(30,974	)		(30,974	)
Bank of America N.A.	USD	10,000	11/23/14		2.116			0.256	19		—		(162,162	)		(162,162	)
Bank of America N.A.	USD	4,000	12/31/15		1.750			0.256	19		17,192		(49,714	)		(32,522	)
Bank of America N.A.	USD	6,800	12/31/15		1.750			0.256	19		38,741		(84,514	)		(45,773	)
Bank of America N.A.	USD	5,600	07/15/16		0.256	19		3.112			—		32,100			32,100
Bank of America N.A.	USD	5,200	07/25/16		0.256	19		3.193			—		35,283			35,283
Bank of America N.A.	USD	4,600	05/15/18		2.600			0.256	19		39,135		(89,199	)		(50,064	)
Bank of America N.A.	USD	8,900	11/23/19		0.256	19		3.587			—		303,510			303,510
Bank of America N.A.	USD	5,900	07/01/24		0.256	19		4.479			—		148,219			148,219
Bank of America N.A.	USD	3,200	11/23/27		4.206			0.256	19		—		(126,755	)		(126,755	)
Bank of America N.A.	USD	3,300	07/01/44		4.595			0.256	19		—		(135,597	)		(135,597	)
Barclays Bank PLC	EUR	2,400	05/06/13		2.462			1.801	20		—		(36,316	)		(36,316	)
Barclays Bank PLC	EUR	900	05/06/21		1.801	20		3.616			—		55,266			55,266
Barclays Bank PLC	EUR	200	05/06/41		3.838			1.801	20		—		(22,082	)		(22,082	)
Barclays Bank PLC	NOK	19,900	07/07/21		3.270	21		4.420			—		83,632			83,632
Barclays Bank PLC	SEK	175,000	02/23/13		2.580	22		3.050			—		116,480			116,480
Barclays Bank PLC	SEK	46,000	06/30/13		2.580	22		2.850			—		10,875			10,875

220

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Interest rate swaps—(continued)

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio†			Payments received by the Portfolio†			Upfront payments received (made)			Value			Unrealized appreciation (depreciation)
BNP Paribas	CAD	1600	12/21/16		3.000	%		1.180	%23	$	27,926		$	(51,074	)	$	(23,148	)
Citibank NA	CAD	6650	12/21/16		3.000			1.180	23		108,827			(212,276	)		(103,449	)
Citibank NA	EUR	200	12/21/41		1.801	20		3.750			(5,225	)		15,675			10,450
Credit Suisse International	AUD	2,600	12/21/13		4.913	24		5.250			(19,032	)		26,070			7,038
Credit Suisse International	AUD	2,950	12/21/13		4.913	24		5.250			(6,573	)		29,579			23,006
Credit Suisse International	AUD	5,550	12/21/13		4.913	24		5.250			(14,953	)		55,649			40,696
Credit Suisse International	CAD	6,450	07/14/16		2.356			1.180	23		—			(55,882	)		(55,882	)
Credit Suisse International	CAD	650	07/15/16		2.374			1.180	23		—			(6,179	)		(6,179	)
Credit Suisse International	CHF	1,850	10/26/20		1.860			0.242	25		—			(6,885	)		(6,885	)
Credit Suisse International	CHF	2,820	02/04/21		0.242	25		2.275			—			133,880			133,880
Credit Suisse International	EUR	31,800	03/18/14		3.120			1.801	20		—			(409,656	)		(409,656	)
Credit Suisse International	EUR	48,800	04/18/14		3.370			1.801	20		—			(768,650	)		(768,650	)
Credit Suisse International	EUR	21,900	03/18/16		1.801	20		3.445			—			650,176			650,176
Credit Suisse International	EUR	34,100	04/18/16		1.801	20		3.690			—			1,288,865			1,288,865
Credit Suisse International	EUR	5,650	07/18/16		1.801	20		2.577			—			43,286			43,286
Credit Suisse International	EUR	550	07/19/16		1.801	20		2.531			—			2,515			2,515
Credit Suisse International	EUR	9,525	12/21/16		1.801	20		3.250			(191,060	)		410,491			219,431
Credit Suisse International	EUR	5,000	03/18/20		3.805			1.801	20		—			(221,823	)		(221,823	)
Credit Suisse International	EUR	7,900	04/18/20		4.050			1.801	20		—			(499,011	)		(499,011	)
Credit Suisse International	GBP	280	02/15/16		1.115	26		3.210			—			24,717			24,717
Credit Suisse International	GBP	550	02/16/16		1.115	26		3.201			—			48,199			48,199
Credit Suisse International	GBP	620	02/18/16		1.115	26		3.124			—			50,866			50,866
Credit Suisse International	NZD	3,550	12/21/13		3.750			2.815	27		—			14,959			14,959
Credit Suisse International	NZD	4,000	12/21/13		3.750			2.815	27		(7,205	)		16,855			9,650
Credit Suisse International	NZD	7,850	12/21/13		3.750			2.815	27		(10,235	)		33,077			22,842
Credit Suisse International	USD	11,500	12/21/16		0.256	19		2.500			(79,012	)		332,364			253,352
Deutsche Bank AG	EUR	21,100	07/15/14		2.516			1.801	20		—			(45,089	)		(45,089	)
Deutsche Bank AG	EUR	14,450	07/15/16		1.801	20		2.982			—			74,531			74,531
Deutsche Bank AG	EUR	1,300	12/21/16		1.801	20		3.250			(31,622	)		56,025			24,403
Deutsche Bank AG	EUR	3,325	07/15/20		3.453			1.801	20		—			(16,758	)		(16,758	)
Deutsche Bank AG	GBP	10	12/17/11		5.250			1.115	26		963			(265	)		698
Deutsche Bank AG	GBP	950	02/11/16		1.115	26		3.188			—			82,367			82,367
Deutsche Bank AG	NZD	2,050	02/15/16		4.690			2.815	27		—			(22,625	)		(22,625	)
Deutsche Bank AG	NZD	1,660	02/18/16		4.700			2.815	27		—			(18,841	)		(18,841	)
Deutsche Bank AG	NZD	1,380	02/22/16		4.683			2.815	27		—			(14,748	)		(14,748	)
Deutsche Bank AG	USD	51,600	06/30/13		0.256	19		0.750			25,488			124,666			150,154
Deutsche Bank AG	USD	61,100	06/30/13		0.256	19		0.750			(65,500	)		147,618			82,118
Deutsche Bank AG	USD	8,400	07/25/14		1.716			0.256	19		—			(27,631	)		(27,631	)
Deutsche Bank AG	USD	9,000	07/29/14		1.625			0.256	19		—			(20,717	)		(20,717	)
Deutsche Bank AG	USD	5,200	07/25/16		0.256	19		3.160			—			32,092			32,092
Deutsche Bank AG	USD	5,600	07/29/16		0.256	19		3.090			—			26,102			26,102
Deutsche Bank AG	USD	1,700	12/21/16		2.500			0.256	19		25,096			(49,132	)		(24,036	)
Deutsche Bank AG	USD	1,700	12/21/16		0.256	19		2.500			(33,580	)		49,132			15,552
Deutsche Bank AG	USD	1,400	12/21/18		3.250			0.256	19		42,659			(66,492	)		(23,833	)
Deutsche Bank AG	USD	1,400	12/21/18		0.256	19		3.250			(50,992	)		66,282			15,290
Deutsche Bank AG	USD	2,600	12/21/21		0.256	19		3.500			(52,136	)		92,237			40,101
JPMorgan Chase Bank	CAD	5,260	11/04/15		2.104			1.180	23		—			(13,841	)		(13,841	)
JPMorgan Chase Bank	EUR	4,630	11/08/15		1.801	20		2.060			—			(70,880	)		(70,880	)
JPMorgan Chase Bank	USD	3,800	06/30/13		0.750			0.256	19		4,292			(9,181	)		(4,889	)
JPMorgan Chase Bank	USD	18,000	06/30/13		0.750			0.256	19		12,710			(43,488	)		(30,778	)

221

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Interest rate swaps—(concluded)

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio†			Payments received by the Portfolio†			Upfront payments received (made)			Value			Unrealized appreciation (depreciation)
JPMorgan Chase Bank	USD	123,100	06/30/13		0.750	%		0.256	%19	$	74,637		$	(297,411	)	$	(222,774	)
JPMorgan Chase Bank	USD	2,300	12/21/16		2.500			0.256	19		50,915			(66,473	)		(15,558	)
JPMorgan Chase Bank	USD	1,000	12/21/18		3.250			0.256	19		38,177			(47,494	)		(9,317	)
JPMorgan Chase Bank	USD	2,600	12/21/21		3.500			0.256	19		55,100			(92,237	)		(37,137	)
Morgan Stanley & Co. International PLC	EUR	5,200	12/21/21		1.801	20		3.750			(314,600	)		333,573			18,973
Morgan Stanley & Co. International PLC	GBP	9,550	12/21/16		3.000			1.115	26		81,232			(518,522	)		(437,290	)
Morgan Stanley Capital Services Inc.	CHF	1,770	07/26/21		2.010			0.242	25		—			0			0
Morgan Stanley Capital Services Inc.	SEK	23,565	12/06/20		3.443			2.580	22		—			(86,715	)		(86,715	)
Royal Bank of Scotland PLC	AUD	36,000	08/13/14		4.913	24		5.100			—			261,200			261,200
Royal Bank of Scotland PLC	AUD	3,000	12/10/14		4.913	24		5.710			—			53,156			53,156
Royal Bank of Scotland PLC	SEK	81,000	02/14/13		2.580	22		3.050			—			52,705			52,705
										$	(238,635	)	$	889,646		$	651,011

¹⁹  Rate based on 3 Month LIBOR (USD on Interbank Offered Rate).

²⁰  Rate based on 6 Month EURIBOR.

²¹  Rate based on 6 Month LIBOR (NOK on Interbank Offered Rate).

²²  Rate based on 3 Month LIBOR (SEK on Interbank Offered Rate).

²³  Rate based on 3 Month LIBOR (CAD on Interbank Offered Rate).

²⁴  Rate based on 3 Month LIBOR (AUD on Interbank Offered Rate).

²⁵  Rate based on 6 Month LIBOR (CHF on Interbank Offered Rate).

²⁶  Rate based on 6 Month LIBOR (GBP on Interbank Offered Rate).

²⁷  Rate based on 3 Month LIBOR (NZD on Interbank Offered Rate).

^†  Payments made/received are based on the notional amount.

Credit default swaps on credit indices—buy protection²⁸

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio29			Payments received by the Portfolio			Upfront payments received (made)			Value			Unrealized appreciation (depreciation)
Bank of America NA	USD	2,600	06/20/14		1.000	%		—	30	$	27,934		$	(28,719	)	$	(785	)
Barclays Bank PLC	EUR	5,600	06/20/16		1.000			—	31		(9,320	)		59,472			50,152
BNP Paribas	EUR	13,500	06/20/16		1.000			—	31		(36,133	)		143,370			107,237
Deutsche Bank AG	USD	2,100	06/20/14		1.000			—	30		23,693			(23,196	)		497
JP Morgan Chase Bank	USD	2,800	06/20/14		1.000			—	30		33,473			(30,928	)		2,545
										$	39,647		$	119,999		$	159,646

²⁸  If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of the particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional value of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

²⁹  Payments made are based on the notional amount.

³⁰  Payment from the counterparty will be received upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the CDX North America Investment Grade Index.

222

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

³¹  Payment from the counterparty will be received upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the iTraxx Europe Main Index.

Credit default swaps on sovereign issues—buy protection³²

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio29			Payments received by the Portfolio			Upfront payments made			Value		Unrealized appreciation (depreciation)
Bank of America NA	USD	2,500	06/20/21		0.250	%		—	33	$	(127,181	)	$	232,657	$	105,476
Citibank NA	USD	2,100	09/20/16		1.000			—	34		(183,415	)		244,440		61,025
Citibank NA	USD	180	12/20/20		0.250			—	33		(9,011	)		15,898		6,887
Credit Suisse International	USD	405	12/20/15		1.000			—	35		(53,448	)		112,601		59,153
Credit Suisse International	USD	950	06/20/16		1.000			—	35		(169,481	)		268,404		98,923
Deutsche Bank AG	USD	1,050	09/20/16		1.000			—	34		(102,323	)		122,220		19,897
Deutsche Bank AG	USD	1,200	09/20/16		1.000			—	34		(126,457	)		139,680		13,223
Deutsche Bank AG	USD	2,060	12/20/20		0.250			—	33		(120,479	)		181,942		61,463
										$	(891,795	)	$	1,317,842	$	426,047

³²  If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of the particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

³³  Payment from the counterparty will be received upon the occurrence of bankruptcy and/or by a restructuring event with respect to the French Government bond, 4.250%, due 04/25/19.

³⁴  Payment from the counterparty will be received upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Spain Government bond, 5.500%, due 07/30/17.

³⁵  Payment from the counterparty will be received upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Portuguese Republic bond, 5.450%, due 09/23/13.

Credit default swaps on credit indices—sell protection³⁶

				Rate type
	Notional amount (000)		Termination date	Payments made by the Portfolio		Payments received by the Portfolio39			Upfront payments received (made)			Value			Unrealized appreciation (depreciation)			Credit spread37
Bank of America NA	USD	2,600	6/20/16		—38		1.000	%	$	(3,652	)	$	5,498		$	1,846			0.96	%
Bank of America NA	USD	5,000	6/20/16		—40		5.000			(145,486	)		16,190			(129,296	)		4.92
Barclays Bank PLC	EUR	5,600	6/20/16		—41		1.000			549,898			(726,821	)		(176,923	)		3.11
BNP Paribus	EUR	13,500	6/20/16		—41		1.000			1,473,779			(1,752,159	)		(278,380	)		3.11
Deutsche Bank AG	USD	2,100	6/20/16		—38		1.000			(6,229	)		4,440			(1,789	)		0.96
Deutsche Bank AG	USD	10,500	6/20/16		—40		5.000			(280,000	)		33,999			(246,001	)		4.92
Deutsche Bank AG	USD	2,500	6/20/21		—42		1.000			76,330			(131,275	)		(54,945	)		1.88
Deutsche Bank AG	USD	2,500	6/20/21		—42		1.000			73,549			(131,275	)		(57,726	)		1.88
Deutsche Bank AG	USD	2,500	6/20/21		—42		1.000			76,692			(131,275	)		(54,583	)		1.88
JPMorgan Chase Bank NA	USD	2,800	6/20/16		—38		1.000			(9,962	)		5,921			(4,041	)		0.96
Royal Bank of Scotland PLC	USD	15,100	6/20/16		—40		5.000			(386,937	)		48,894			(338,043	)		4.92
									$	1,417,982		$	(2,757,863	)	$	(1,339,881	)

³⁶  If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of the particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

223

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

³⁷  Credit spreads, where available, represented in absolute terms, utilized in determining the market value as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity.

³⁸  Payment to the counterparty will be made upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the CDX North America Investment Grade Index.

³⁹  Payments received are based on the notional amount.

⁴⁰  Payment to the counterparty will be made upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the CDX North America High Yield Index.

⁴¹  Payment to the counterparty will be made upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the iTraxx Europe Subordinated Financials Index.

⁴²  Payment to the counterparty will be made upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the MCDX North America Index.

Credit default swaps on sovereign issues—sell protection⁴³

				Rate type
Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio		Payments received by the Portfolio39			Upfront payments received		Value			Unrealized (depreciation)			Credit spread37
Credit Suisse International	USD	2,400	06/20/21		—44		0.250	%	$	65,519	$	(127,075	)	$	(61,556	)		0.87	%
JPMorgan Chase Bank	USD	250	03/20/16		—45		1.000			44,853		(70,073	)		(25,220	)		10.13
JPMorgan Chase Bank	USD	1,200	09/20/16		—46		1.000			95,174		(116,972	)		(21,798	)		3.19
Morgan Stanley & Co. International PLC	USD	1,890	03/20/21		—44		0.250			70,494		(97,248	)		(26,754	)		0.87
									$	276,040	$	(411,368	)	$	(135,328	)

⁴³  If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of the particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

⁴⁴  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Bundesrepublik Deutschland bond, 6.000%, due 06/20/16.

⁴⁵  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Portuguese Republic bond, 4.250%, due 04/25/19.

⁴⁶  Payment to the counterparty will be made upon the occurrence of bankruptcy and/or by a restructuring event with respect to the Republic of Italy Bond, 6.875%, due 09/27/23.

Variance swaps⁴⁷

Counterparty	Notional amount (000)		Termination date	Pay/ receive variance	Reference entity	Volatility strike price			Upfront payments received (made)		Value			Unrealized appreciation (depreciation)
Barclays Bank PLC	EUR	5	12/21/12	Receive	DJ Euro Stoxx 50 Index		32.90	%	$	—	$	(50,144	)	$	(50,144	)
Barclays Bank PLC	GBP	2	12/16/11	Pay	FTSE 100 Index		27.90			—		29,421			29,421
Barclays Bank PLC	GBP	13	12/21/12	Pay	FTSE 100 Index		24.60			—		11,333			11,333
Barclays Bank PLC	HKD	10	12/29/11	Receive	China Enterprises Index (Hang Seng)		33.75			—		(11,524	)		(11,524	)
Barclays Bank PLC	HKD	146	12/28/12	Receive	China Enterprises Index (Hang Seng)		31.50			—		(23,444	)		(23,444	)

224

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

Variance swaps⁴⁷—(concluded)

Counterparty	Notional amount (000)		Termination date	Pay/ receive variance	Reference entity	Volatility strike price			Upfront payments received (made)		Value			Unrealized appreciation (depreciation)
Barclays Bank PLC	USD	13	12/21/12	Pay	S&P 500 Index		30.95	%	$	—	$	105,213		$	105,213
BNP Paribas	EUR	88	12/16/11	Receive	DJ Euro Stoxx 50 Index		27.30			—		(485,165	)		(485,165	)
BNP Paribas	EUR	14	12/21/12	Receive	DAX Index		27.25			—		(83,897	)		(83,897	)
BNP Paribas	EUR	6	12/21/12	Receive	DAX Index		25.85			—		(5,863	)		(5,863	)
BNP Paribas	EUR	90	12/21/12	Receive	DJ Euro Stoxx 50 Index		35.25			—		(1,168,658	)		(1,168,658	)
BNP Paribas	GBP	3	12/16/11	Pay	FTSE 100 Index		29.20			—		48,994			48,994
BNP Paribas	GBP	5	12/16/11	Pay	FTSE 100 Index		25.80			—		53,515			53,515
BNP Paribas	GBP	5	12/16/11	Pay	FTSE 100 Index		25.25			—		55,760			55,760
BNP Paribas	GBP	6	12/16/11	Pay	FTSE 100 Index		24.80			—		58,396			58,396
BNP Paribas	GBP	15	12/16/11	Receive	FTSE 100 Index		30.00			—		(256,335	)		(256,335	)
BNP Paribas	GBP	38	12/16/11	Pay	FTSE 100 Index		30.25			—		659,103			659,103
BNP Paribas	GBP	1	12/21/12	Pay	FTSE 100 Index		25.40			—		5,324			5,324
BNP Paribas	GBP	2	12/21/12	Pay	FTSE 100 Index		25.40			—		10,700			10,700
BNP Paribas	GBP	2	12/21/12	Pay	FTSE 100 Index		25.65			—		11,327			11,327
BNP Paribas	HKD	30	12/29/11	Receive	China Enterprises Index (Hang Seng)		34.95			—		(38,647	)		(38,647	)
BNP Paribas	HKD	34	12/29/11	Receive	China Enterprises Index (Hang Seng)		35.80			—		(45,858	)		(45,858	)
BNP Paribas	HKD	50	12/29/11	Receive	China Enterprises Index (Hang Seng)		35.25			—		(64,506	)		(64,506	)
BNP Paribas	HKD	51	12/29/11	Receive	China Enterprises Index (Hang Seng)		34.80			—		(63,961	)		(63,961	)
BNP Paribas	HKD	165	12/29/11	Pay	China Enterprises Index (Hang Seng)		35.75			—		227,649			227,649
BNP Paribas	HKD	400	12/29/11	Receive	China Enterprises Index (Hang Seng)		35.40			—		(541,336	)		(541,336	)
BNP Paribas	HKD	10	12/28/12	Receive	China Enterprises Index (Hang Seng)		35.10			—		(8,279	)		(8,279	)
BNP Paribas	HKD	15	12/28/12	Receive	China Enterprises Index (Hang Seng)		34.50			—		(11,259	)		(11,259	)
BNP Paribas	HKD	17	12/28/12	Receive	China Enterprises Index (Hang Seng)		35.10			—		(14,110	)		(14,110	)
BNP Paribas	HKD	18	12/28/12	Receive	China Enterprises Index (Hang Seng)		35.35			—		(15,332	)		(15,332	)
BNP Paribas	JPY	4,800	12/14/12	Receive	Nikkei 225 Index		28.70			—		(178,215	)		(178,215	)
BNP Paribas	JPY	20,000	12/14/12	Receive	Nikkei 225 Index		32.20			—		(1,620,886	)		(1,620,886	)
BNP Paribas	USD	72	12/21/12	Pay	S&P 500 Index		27.40			—		362,287			362,287
BNP Paribas	USD	233	12/21/12	Pay	S&P 500 Index		32.40			—		2,169,292			2,169,292
									$	—	$	(879,105	)	$	(879,105	)

⁴⁷  At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price variance of the reference entity and the strike price multiplied by the notional amount. As a receiver of the realized price variance, the Portfolio would receive the payoff amount when the realized price variance of the reference entity is greater than the strike price and would owe the payoff amount when the variance is less than the strike price. As a payer of the realized price variance, the Portfolio would owe the payoff amount when the realized price variance of the reference entity is greater than the strike price and would receive the payoff amount when the variance is less than the strike price.

225

PACE Select Advisors Trust

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2011

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Common stocks	$	111,330,986		$	78,494,783		$	—	$	189,825,769
Preferred stocks		63,767			775,643			—		839,410
Investment companies		6,453,514			—			—		6,453,514
US government obligations		—			32,543,674			—		32,543,674
Federal home loan mortgage corporation certificates		—			1,705,969			—		1,705,969
Federal national mortgage association certificates		—			21,700,095			—		21,700,095
Collateralized mortgage obligations		—			18,217,446			—		18,217,446
Asset-backed securities		—			19,959,612			—		19,959,612
Corporate notes		296,167			53,800,516			—		54,096,683
Municipal bonds and notes		—			5,100,268			—		5,100,268
Non-US government obligations		—			14,660,100			—		14,660,100
Time deposits		—			26,260,392			—		26,260,392
Certificates of deposit		—			8,000,000			—		8,000,000
Short-term US government obligations		—			91,494,578			—		91,494,578
Repurchase agreement		—			68,893,000			—		68,893,000
Options purchased		482,699			6,120,228			—		6,602,927
Common stocks sold short		(5,773,398	)		(17,725,542	)		—		(23,498,940	)
Federal national mortgage association certificates sold short		—			(3,911,250	)		—		(3,911,250	)
Written options		(907,721	)		—			—		(907,721	)
Swaptions and foreign exchange written options		—			(4,261,246	)		—		(4,261,246	)
Futures, net		(2,449,234	)		(109,175	)		—		(2,558,409	)
Forward foreign currency contracts, net		—			(5,634,364	)		—		(5,634,364	)
Swap agreements, net		—			(1,720,849	)		—		(1,720,849	)
Total	$	109,496,780		$	414,363,878		$	—	$	523,860,658

226

PACE Select Advisors Trust

Portfolio acronyms:

ADR  American Depositary Receipt

ADS  American Depositary Shares

AGC  Associated General Contractors

AGM  Assured Guaranty Municipal Corporation

AMBAC  American Municipal Bond Assurance Corporation

ARM  Adjustable Rate Mortgage — The interest rate shown is the current rate as of July 31, 2011.

BHAC  Berkshire Hathaway Assurance Corporation

CDO  Collaterlized Debt Obligation

CLO  Collateralized Loan Obligation

COFI  Cost of Funds Index

ETF  Exchange Traded Fund

EURIBOR  Euro Interbank Offered Rate

FFCB  Federal Farm Credit Bank

FGIC  Financial Guaranty Insurance Company

FHA  Federal Housing Administration

FHLB  Federal Home Loan Bank

FHLMC  Federal Home Loan Mortgage Corporation

FNMA  Federal National Mortgage Association

GDR  Global Depositary Receipt

GE  General Electric

GMAC  General Motors Acceptance Corporation

GNMA  Government National Mortgage Association

GS  Goldman Sachs

GTD  Guaranteed

IBC  Insured Bond Certificate

ICC  International Code Council

LIBOR  London Interbank Offered Rate

MLCC  Merrill Lynch Credit Corporation

MSCI  Morgan Stanley Capital International

MTN  Medium Term Note

NATL-RE  National Reinsurance

NVDR  Non Voting Depositary Receipt

OJSC  Open Joint Stock Company

PSF  Permanent School Fund

REIT  Real Estate Investment Trust

REMIC  Real Estate Mortgage Investment Conduit

SCSDE  South Carolina School District Enhancement

SDR  Special Drawing Rights

SPDR  Standard & Poor's Depository Receipts

STRIP  Separate Trading of Registered Interest and Principal of Securities

TBA  (To Be Announced) Security is purchased on a forward commitment basis 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.

TIAA  Teachers Insurance and Annuity Association

TIPS  Treasury inflation protected securities ("TIPS") are debt securities issued by the US Treasury whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the TIPS is fixed, while the principal value rises or falls based on changes in a published Consumer Price Index ("CPI"). Thus, if inflation occurs, the principal and interest payments on TIPS are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the TIPS principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the TIPS generally pay lower interest rates than typical US Treasury securities. Only if inflation occurs will TIPS offer a higher real yield than a conventional Treasury bond of the same maturity.

USDA  United States Department of Agriculture

VA  Veterans Administration

VVPR  Verminderde Voorheffing Precompte Reduit (Belgium dividend coupon)

Currency type abbreviations:

AUD  Australian Dollar

BRL  Brazilian Real

CAD  Canadian Dollar

CHF  Swiss Franc

CLP  Chilean Peso

CNY  Chinese Yuan Renminbi

CZK  Czech Koruna

DKK  Danish Krone

EUR  Euro

GBP  Great Britain Pound

HKD  Hong Kong Dollar

IDR  Indonesian Rupiah

INR  Indian Rupee

JPY  Japanese Yen

KRW  South Korean Won

MXN  Mexican Peso

MYR  Malaysian Ringgit

NOK  Norwegian Krone

NZD  New Zealand Dollar

PEN  Peruvian Nuevo Sol

PHP  Philippine Peso

PLN  Polish Zloty

SEK  Swedish Krona

SGD  Singapore Dollar

TRY  Turkish Lira

TWD  New Taiwan Dollar

USD  United States Dollar

ZAR  South African Rand

See accompanying notes to financial statements.
227

PACE Select Advisors Trust

Understanding your Portfolio's expenses (unaudited)

As a shareholder of a Portfolio, you incur two types of costs: (1) transactional costs (as applicable), including sales charges (loads), or ongoing program fees; and (2) ongoing Portfolio costs, including management fees; service and/or distribution (12b-1) fees (if applicable); and other Portfolio expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in each Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, February 1, 2011 to July 31, 2011.

Actual expenses

The first line for each class of shares in the table below for each Portfolio provides information about its actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for each class of shares for each respective Portfolio under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during the period.

Hypothetical example for comparison purposes

The second line for each class of shares in the table below for each Portfolio provides information about hypothetical account values and hypothetical expenses based on that Portfolio's actual expense ratios for each class of shares and an assumed rate of return of 5% per year before expenses, which is not that Portfolio's actual return for each class of shares. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing Portfolio costs only and do not reflect any transactional costs (as applicable), such as sales charges (loads), or program fees. Therefore, the second line in the table for each class of shares for each Portfolio is useful in comparing ongoing Portfolio costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs or program fees were included, your costs would have been higher.

228

PACE Select Advisors Trust

			Beginning account value February 1, 2011		Ending account value July 31, 2011		Expenses paid during period1 02/01/11 to 07/31/11		Expense ratio during the period
PACE Money Market Investments
	Class P	Actual	$	1,000.00	$	1,000.00	$	1.09		0.22	%
		Hypothetical (5% annual return before expenses)		1,000.00		1,023.70		1.10		0.22
PACE Government Securities Fixed Income Investments
	Class A	Actual		1,000.00		1,031.40		5.14		1.02
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.74		5.11		1.02
	Class B	Actual		1,000.00		1,027.50		8.90		1.77
		Hypothetical (5% annual return before expenses)		1,000.00		1,016.02		8.85		1.77
	Class C	Actual		1,000.00		1,028.00		7.64		1.52
		Hypothetical (5% annual return before expenses)		1,000.00		1,017.26		7.60		1.52
	Class Y	Actual		1,000.00		1,031.90		3.88		0.77
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.98		3.86		0.77
	Class P	Actual		1,000.00		1,032.60		3.88		0.77
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.98		3.86		0.77
PACE Intermediate Fixed Income Investments
	Class A	Actual		1,000.00		1,028.30		4.68		0.93
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.18		4.66		0.93
	Class B	Actual		1,000.00		1,024.40		8.43		1.68
		Hypothetical (5% annual return before expenses)		1,000.00		1,016.46		8.40		1.68
	Class C	Actual		1,000.00		1,026.50		7.19		1.43
		Hypothetical (5% annual return before expenses)		1,000.00		1,017.70		7.15		1.43
	Class Y	Actual		1,000.00		1,029.50		3.42		0.68
		Hypothetical (5% annual return before expenses)		1,000.00		1,021.42		3.41		0.68
	Class P	Actual		1,000.00		1,030.40		3.42		0.68
		Hypothetical (5% annual return before expenses)		1,000.00		1,021.42		3.41		0.68

229

PACE Select Advisors Trust

			Beginning account value February 1, 2011		Ending account value July 31, 2011		Expenses paid during period1 02/01/11 to 07/31/11		Expense ratio during the period
PACE Strategic Fixed Income Investments
	Class A	Actual	$	1,000.00	$	1,050.00	$	5.39		1.06	%
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.54		5.31		1.06
	Class B	Actual		1,000.00		1,046.80		9.19		1.81
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.82		9.05		1.81
	Class C	Actual		1,000.00		1,048.20		7.87		1.55
		Hypothetical (5% annual return before expenses)		1,000.00		1,017.11		7.75		1.55
	Class Y	Actual		1,000.00		1,052.00		4.12		0.81
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.78		4.06		0.81
	Class P	Actual		1,000.00		1,052.00		4.12		0.81
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.78		4.06		0.81
PACE Municipal Fixed Income Investments
	Class A	Actual		1,000.00		1,058.30		4.75		0.93
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.18		4.66		0.93
	Class B	Actual		1,000.00		1,054.30		8.56		1.68
		Hypothetical (5% annual return before expenses)		1,000.00		1,016.46		8.40		1.68
	Class C	Actual		1,000.00		1,055.70		7.29		1.43
		Hypothetical (5% annual return before expenses)		1,000.00		1,017.70		7.15		1.43
	Class Y	Actual		1,000.00		1,058.80		3.47		0.68
		Hypothetical (5% annual return before expenses)		1,000.00		1,021.42		3.41		0.68
	Class P	Actual		1,000.00		1,059.60		3.47		0.68
		Hypothetical (5% annual return before expenses)		1,000.00		1,021.42		3.41		0.68
PACE International Fixed Income Investments
	Class A	Actual		1,000.00		1,079.10		6.19		1.20
		Hypothetical (5% annual return before expenses)		1,000.00		1,018.84		6.01		1.20
	Class B	Actual		1,000.00		1,074.70		10.29		2.00
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.88		9.99		2.00
	Class C	Actual		1,000.00		1,075.60		8.65		1.68
		Hypothetical (5% annual return before expenses)		1,000.00		1,016.46		8.40		1.68
	Class Y	Actual		1,000.00		1,079.50		5.16		1.00
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.84		5.01		1.00
	Class P	Actual		1,000.00		1,080.20		5.16		1.00
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.84		5.01		1.00

230

PACE Select Advisors Trust

			Beginning account value February 1, 2011		Ending account value July 31, 2011		Expenses paid during period1 02/01/11 to 07/31/11		Expense ratio during the period
PACE High Yield Investments
	Class A	Actual	$	1,000.00	$	1,012.90	$	6.59		1.32	%
		Hypothetical (5% annual return before expenses)		1,000.00		1,018.25		6.61		1.32
	Class C	Actual		1,000.00		1,010.60		8.87		1.78
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.97		8.90		1.78
	Class Y	Actual		1,000.00		1,014.00		5.19		1.04
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.64		5.21		1.04
	Class P	Actual		1,000.00		1,013.90		5.49		1.10
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.34		5.51		1.10
PACE Large Co Value Equity Investments
	Class A	Actual		1,000.00		995.30		5.74		1.16
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.04		5.81		1.16
	Class B	Actual		1,000.00		991.90		9.98		2.02
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.78		10.09		2.02
	Class C	Actual		1,000.00		991.90		9.58		1.94
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.17		9.69		1.94
	Class Y	Actual		1,000.00		996.50		4.50		0.91
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.28		4.56		0.91
	Class P	Actual		1,000.00		997.10		4.56		0.92
		Hypothetical (5% annual return before expenses)		1,000.00		1,020.23		4.61		0.92
PACE Large Co Growth Equity Investments
	Class A	Actual		1,000.00		1,026.50		6.18		1.23
		Hypothetical (5% annual return before expenses)		1,000.00		1,018.70		6.16		1.23
	Class B	Actual		1,000.00		1,022.20		10.28		2.05
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.63		10.24		2.05
	Class C	Actual		1,000.00		1,022.10		10.28		2.05
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.63		10.24		2.05
	Class Y	Actual		1,000.00		1,027.50		4.88		0.97
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.98		4.86		0.97
	Class P	Actual		1,000.00		1,027.60		4.88		0.97
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.98		4.86		0.97

231

PACE Select Advisors Trust

			Beginning account value February 1, 2011		Ending account value July 31, 2011		Expenses paid during period1 02/01/11 to 07/31/11		Expense ratio during the period
PACE Small/Medium Co Value Equity Investments
	Class A	Actual	$	1,000.00	$	996.50	$	6.34		1.28	%
		Hypothetical (5% annual return before expenses)		1,000.00		1,018.45		6.41		1.28
	Class B	Actual		1,000.00		996.10		10.69		2.16
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.08		10.79		2.16
	Class C	Actual		1,000.00		993.00		9.98		2.02
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.78		10.09		2.02
	Class Y	Actual		1,000.00		997.70		5.30		1.07
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.49		5.36		1.07
	Class P	Actual		1,000.00		997.10		5.74		1.16
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.04		5.81		1.16
PACE Small/Medium Co Growth Equity Investments
	Class A	Actual		1,000.00		1,065.90		6.51		1.27
		Hypothetical (5% annual return before expenses)		1,000.00		1,018.50		6.36		1.27
	Class B	Actual		1,000.00		1,061.10		10.89		2.13
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.23		10.64		2.13
	Class C	Actual		1,000.00		1,061.40		10.53		2.06
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.58		10.29		2.06
	Class Y	Actual		1,000.00		1,066.50		5.69		1.11
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.29		5.56		1.11
	Class P	Actual		1,000.00		1,065.90		5.79		1.13
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.19		5.66		1.13
PACE International Equity Investments
	Class A	Actual		1,000.00		1,019.00		7.01		1.40
		Hypothetical (5% annual return before expenses)		1,000.00		1,017.85		7.00		1.40
	Class B	Actual		1,000.00		1,020.30		11.67		2.33
		Hypothetical (5% annual return before expenses)		1,000.00		1,013.24		11.63		2.33
	Class C	Actual		1,000.00		1,015.50		11.04		2.21
		Hypothetical (5% annual return before expenses)		1,000.00		1,013.84		11.03		2.21
	Class Y	Actual		1,000.00		1,020.60		5.71		1.14
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.14		5.71		1.14
	Class P	Actual		1,000.00		1,020.60		5.76		1.15
		Hypothetical (5% annual return before expenses)		1,000.00		1,019.09		5.76		1.15

232

PACE Select Advisors Trust

			Beginning account value February 1, 2011		Ending account value July 31, 2011		Expenses paid during period1 02/01/11 to 07/31/11		Expense ratio during the period
PACE International Emerging Markets Equity Investments
	Class A	Actual	$	1,000.00	$	1,011.70	$	9.28		1.86	%
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.57		9.30		1.86
	Class B	Actual		1,000.00		1,008.50		12.65		2.54
		Hypothetical (5% annual return before expenses)		1,000.00		1,012.20		12.67		2.54
	Class C	Actual		1,000.00		1,008.60		12.90		2.59
		Hypothetical (5% annual return before expenses)		1,000.00		1,011.95		12.92		2.59
	Class Y	Actual		1,000.00		1,013.70		8.04		1.61
		Hypothetical (5% annual return before expenses)		1,000.00		1,016.81		8.05		1.61
	Class P	Actual		1,000.00		1,012.30		8.98		1.80
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.87		9.00		1.80
PACE Global Real Estate Securities Investments
	Class A	Actual		1,000.00		1,052.40		7.38		1.45
		Hypothetical (5% annual return before expenses)		1,000.00		1,017.60		7.25		1.45
	Class C	Actual		1,000.00		1,049.00		11.18		2.20
		Hypothetical (5% annual return before expenses)		1,000.00		1,013.88		10.99		2.20
	Class Y	Actual		1,000.00		1,054.00		6.11		1.20
		Hypothetical (5% annual return before expenses)		1,000.00		1,018.84		6.01		1.20
	Class P	Actual		1,000.00		1,052.40		6.11		1.20
		Hypothetical (5% annual return before expenses)		1,000.00		1,018.84		6.01		1.20
PACE Alternative Strategies Investments
	Class A	Actual		1,000.00		984.20		10.23		2.08
		Hypothetical (5% annual return before expenses)		1,000.00		1,014.48		10.39		2.08
	Class C	Actual		1,000.00		979.60		13.94		2.84
		Hypothetical (5% annual return before expenses)		1,000.00		1,010.71		14.16		2.84
	Class Y	Actual		1,000.00		985.30		9.01		1.83
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.72		9.15		1.83
	Class P	Actual		1,000.00		984.20		9.00		1.83
		Hypothetical (5% annual return before expenses)		1,000.00		1,015.72		9.15		1.83

¹  Expenses are equal to the Portfolios' annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half year period).

233

PACE Select Advisors Trust

Statement of assets and liabilities

July 31, 2011

	PACE Money Market Investments		PACE Government Securities Fixed Income Investments		PACE Intermediate Fixed Income Investments			PACE Strategic Fixed Income Investments
Assets:
Investments in unaffiliated securities, at value (cost—$276,701,978; $912,213,013; $476,436,735; $728,280,162; $298,794,989; $516,153,677 and $254,548,456, respectively)1	$	276,701,978	$	924,141,938	$	487,884,528		$	758,137,956
Investment in an affiliated security, at value (cost—$0; $0; $4,196,400; $4,383,525; $0; $65,600 and $14,627,018, respectively)		—		—		4,196,400			4,383,525
Repurchase agreements, at value (cost—$78,080,000; $1,919,000; $30,500,000; $129,545,000; $0; $4,810,000 and $4,226,000, respectively)		78,080,000		1,919,000		30,500,000			129,545,000
Total investments in securities, at value (cost—$354,781,978; $914,132,013; $511,133,135; $862,208,687; $298,794,989; $521,029,277 and $273,401,474, respectively)	$	354,781,978	$	926,060,938	$	522,580,928		$	892,066,481
Cash		715		57,790		—			42
Foreign currency, at value (cost—$0; $0; $65,009; $284,230; $0; $18,125 and $1,258,788, respectively)		—		—		75,078			288,607
Receivable from affiliate		112,635		—		—			—
Receivable for investments sold		—		464,049,865		34,198,619			13,211,424
Receivable for shares of beneficial interest sold		12,460,761		577,324		628,976			3,757,518
Receivable for dividends and interest		59,292		1,971,645		3,701,108			5,310,466
Swap agreements, at value3		—		—		88,664			1,878,020
Due from broker		—		—		37,435			192,047
Unrealized appreciation on forward foreign currency contracts		—		—		372,307			1,753,580
Receivable for variation margin		—		—		—			1,865,603
Receivable for foreign tax reclaims		—		—		9,927			1,298
Other assets		20,712		28,870		29,344			767,290
Total assets		367,436,093		1,392,746,432		561,722,386			921,092,376
Liabilities:
Payable for shares of beneficial interest repurchased		1,154,661		1,584,234		503,991			1,062,024
Payable to custodian		4,066		21,581		19,118			35,800
Dividends payable to shareholders		1,260		—		—			—
Payable for investments purchased		—		516,470,185		98,305,871			90,378,762
Investments sold short, at value (proceeds—$0; $261,813,240; $0; $0; $0; $0 and $0, respectively)		—		264,986,328		—	��		—
Due to broker		—		1,400,000		337,260			617,422
Payable to affiliate		—		304,228		179,397			416,833
Payable for cash collateral from securities loaned		—		—		4,196,400			4,383,525
Swap agreements, at value3		—		—		1,677,054			1,058,821
Payable for variation margin		—		—		412,195			—
Unrealized depreciation on forward foreign currency contracts		—		—		325,534			3,906,423
Payable for foreign withholding taxes		—		—		4,556			3,105
Options and swaptions written, at value (premiums received $0; $0; $0; $318,000; $0; $0 and $0, respectively)		—		—		—			131,358
Accrued expenses and other liabilities		432,477		330,288		193,640			398,902
Total liabilities		1,592,464		785,096,844		106,155,016			102,392,975

¹  Includes $0; $0; $4,122,835; $4,287,883; $0; $64,324; and $14,290,915, respectively, of investments in securities on loan, at value plus accrued interest and dividends, if any.

²  Includes restricted cash of $5,037,905 delivered to broker as initial margin for futures contracts for PACE International Fixed Income Investments.

³  Net upfront payments received by PACE Intermediate Fixed Income Investments and PACE Strategic Fixed Income Investments were, $29,863 and $340,575, respectively.

234

	PACE Municipal Fixed Income Investments		PACE International Fixed Income Investments		PACE High Yield Investments
Assets:
Investments in unaffiliated securities, at value (cost—$276,701,978; $912,213,013; $476,436,735; $728,280,162; $298,794,989; $516,153,677 and $254,548,456, respectively)1	$	315,043,786	$	560,951,553	$	269,376,463
Investment in an affiliated security, at value (cost—$0; $0; $4,196,400; $4,383,525; $0; $65,600 and $14,627,018, respectively)		—		65,600		14,627,018
Repurchase agreements, at value (cost—$78,080,000; $1,919,000; $30,500,000; $129,545,000; $0; $4,810,000 and $4,226,000, respectively)		—		4,810,000		4,226,000
Total investments in securities, at value (cost—$354,781,978; $914,132,013; $511,133,135; $862,208,687; $298,794,989; $521,029,277 and $273,401,474, respectively)	$	315,043,786	$	565,827,153	$	288,229,481
Cash		—		5,038,9262		—
Foreign currency, at value (cost—$0; $0; $65,009; $284,230; $0; $18,125 and $1,258,788, respectively)		—		18,515		1,280,480
Receivable from affiliate		—		—		—
Receivable for investments sold		—		—		—
Receivable for shares of beneficial interest sold		171,329		494,056		453,468
Receivable for dividends and interest		3,499,557		7,148,941		5,207,349
Swap agreements, at value3		—		—		—
Due from broker		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		5,005,083		—
Receivable for variation margin		—		—		—
Receivable for foreign tax reclaims		—		110,488		4,302
Other assets		23,126		26,998		24,486
Total assets		318,737,798		583,670,160		295,199,566
Liabilities:
Payable for shares of beneficial interest repurchased		562,433		791,587		983,223
Payable to custodian		12,410		42,370		18,656
Dividends payable to shareholders		—		—		—
Payable for investments purchased		1,182,940		1,655,590		55,056
Investments sold short, at value (proceeds—$0; $261,813,240; $0; $0; $0; $0 and $0, respectively)		—		—		—
Due to broker		—		—		—
Payable to affiliate		159,000		342,832		170,990
Payable for cash collateral from securities loaned		—		65,600		14,627,018
Swap agreements, at value3		—		—		—
Payable for variation margin		—		591,884		—
Unrealized depreciation on forward foreign currency contracts		—		2,142,599		1,205,944
Payable for foreign withholding taxes		—		—		2,866
Options and swaptions written, at value (premiums received $0; $0; $0; $318,000; $0; $0 and $0, respectively)		—		—		—
Accrued expenses and other liabilities		124,112		375,918		212,208
Total liabilities		2,040,895		6,008,380		17,275,961

See accompanying notes to financial statements.
235

PACE Select Advisors Trust

Statement of assets and liabilities (continued)

July 31, 2011

	PACE Money Market Investments			PACE Government Securities Fixed Income Investments			PACE Intermediate Fixed Income Investments			PACE Strategic Fixed Income Investments
Net assets:
Beneficial interest shares of $0.001 par value (unlimited amount authorized)	$	365,845,642		$	598,872,232		$	458,672,837		$	779,141,192
Accumulated undistributed (distributions in excess of) net investment income		—			93,823			237,492			988,102
Accumulated net realized gain (loss)		(2,013	)		(72,304	)		(12,741,073	)		5,275,257
Net unrealized appreciation		—			8,755,837			9,398,114			33,294,850
Net assets	$	365,843,629		$	607,649,588		$	455,567,370		$	818,699,401
Class A
Net assets	$	—		$	80,726,776		$	39,022,093		$	56,151,226
Shares outstanding		—			6,065,684			3,211,356			3,858,021
Net asset value per share	$	—		$	13.31		$	12.15		$	14.55
Maximum offering price per share	$	—		$	13.94		$	12.72		$	15.24
Class B
Net assets	$	—		$	98,001		$	72,210		$	229,639
Shares outstanding		—			7,359			5,932			15,783
Net asset value and offering price per share	$	—		$	13.32		$	12.17		$	14.55
Class C
Net assets	$	—		$	22,063,619		$	3,473,627		$	12,855,927
Shares outstanding		—			1,656,194			285,506			883,242
Net asset value and offering price per share	$	—		$	13.32		$	12.17		$	14.56
Class Y
Net assets	$	—		$	50,829,815		$	1,276,728		$	2,809,723
Shares outstanding		—			3,818,596			105,059			193,237
Net asset value, offering price and redemption value per share2	$	—		$	13.31		$	12.15		$	14.54
Class P
Net assets	$	365,843,629		$	453,931,377		$	411,722,712		$	746,652,886
Shares outstanding		365,845,932			34,090,921			33,872,673			51,321,873
Net asset value, offering price and redemption value per share2	$	1.00		$	13.32		$	12.16		$	14.55

¹  Net assets divided by shares outstanding does not equal net asset value due to rounding.

²  Assumes shares were held a sufficient period or are otherwise not subject to a redemption fee.

236

	PACE Municipal Fixed Income Investments			PACE International Fixed Income Investments			PACE High Yield Investments
Net assets:
Beneficial interest shares of $0.001 par value (unlimited amount authorized)	$	302,752,991		$	533,195,742		$	262,700,248
Accumulated undistributed (distributions in excess of) net investment income		—			8,793,860			(2,793	)
Accumulated net realized gain (loss)		(2,304,885	)		(11,514,149	)		1,566,374
Net unrealized appreciation		16,248,797			47,186,327			13,659,776
Net assets	$	316,696,903		$	577,661,780		$	277,923,605
Class A
Net assets	$	73,527,720		$	98,635,523		$	25,550,476
Shares outstanding		5,658,135			7,877,944			2,459,126
Net asset value per share	$	13.00		$	12.52		$	10.39
Maximum offering price per share	$	13.61		$	13.11		$	10.88
Class B
Net assets	$	46,502		$	150,691		$	—
Shares outstanding		3,576			11,998			—
Net asset value and offering price per share	$	13.011		$	12.56		$	—
Class C
Net assets	$	13,942,810		$	8,034,443		$	3,791,405
Shares outstanding		1,072,841			641,527			365,206
Net asset value and offering price per share	$	13.00		$	12.52		$	10.38
Class Y
Net assets	$	117,834		$	5,215,965		$	384,720
Shares outstanding		9,062			417,537			36,924
Net asset value, offering price and redemption value per share2	$	13.00		$	12.49		$	10.42
Class P
Net assets	$	229,062,037		$	465,625,158		$	248,197,004
Shares outstanding		17,621,799			37,184,348			23,846,315
Net asset value, offering price and redemption value per share2	$	13.00		$	12.52		$	10.41

See accompanying notes to financial statements.
237

PACE Select Advisors Trust

Statement of assets and liabilities (continued)

July 31, 2011

	PACE Large Co Value Equity Investments		PACE Large Co Growth Equity Investments		PACE Small/Medium Co Value Equity Investments		PACE Small/Medium Co Growth Equity Investments
Assets:
Investments in unaffiliated securities, at value (cost—$1,078,618,679; $907,917,702; $373,780,058; $357,431,703; $836,769,827; $291,080,327; $87,352,112 and $488,811,976, respectively)1	$	1,178,163,591	$	1,125,299,749	$	415,316,227	$	452,589,289
Investment in an affiliated security, at value (cost—$173,750; $17,797,200; $15,163,573; $40,533,810; $24,172,469; $3,466,958; $5,613,519 and $0, respectively)		173,750		17,797,200		15,163,573		40,533,810
Repurchase agreement, at value (cost—$24,215,000; $28,530,000; $15,810,000; $14,471,000; $14,866,000; $1,875,000; $2,882,000 and $68,893,000, respectively)		24,215,000		28,530,000		15,810,000		14,471,000
Total investments in securities, at value (cost—$1,103,007,429; $954,244,902; $404,753,631; $412,436,513; $875,808,296; $296,422,285; $95,847,631 and $557,704,976, respectively)	$	1,202,552,341	$	1,171,626,949	$	446,289,800	$	507,594,099
Cash		1,130		1,043		837		—
Foreign currency, at value (cost—$0; $0; $0; $0; $1,299,921; $920,360; $37,550 and $3,343,589, respectively)		—		—		—		—
Receivable for investments sold		1,489,190		14,973,294		1,386,444		8,546,894
Receivable for shares of beneficial interest sold		1,137,357		1,026,414		435,369		396,975
Receivable for dividends and interest		1,930,161		482,956		92,959		51,386
Swap agreements, at value3		—		—		—		—
Due from broker		—		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		—		—	��	—
Receivable for variation margin		—		—		—		—
Receivable for foreign tax reclaims		54,293		3,455		722		—
Other assets		38,166		37,283		25,711		25,778
Total assets		1,207,202,638		1,188,151,394		448,231,842		516,615,132
Liabilities:
Payable for investments purchased		4,042,584		16,620,834		6,355,642		5,314,774
Payable for shares of beneficial interest repurchased		1,929,361		1,984,756		727,895		895,443
Payable to affiliate		827,923		802,490		318,480		345,961
Payable for cash collateral from securities loaned		173,750		17,797,200		15,163,573		40,533,810
Payable to custodian		39,891		38,158		13,784		587,201
Payable for foreign withholding taxes		—		—		—		353
Unrealized depreciation on forward foreign currency contracts		—		—		—		—
Payable for variation margin		—		—		—		—
Due to broker		—		—		—		—
Swap agreements, at value3		—		—		—		—
Investments sold short, at value (proceeds—$0; $0; $0; $0; $0; $0; $0 and $29,537,983, respectively)		—		—		—		—
Options and swaptions written, at value (premiums received $0; $0; $0; $0; $0; $0; $0 and $4,976,441, respectively)		—		—		—		—
Payable for dividend and interest on investments sold short		—		—		—		—
Accrued expenses and other liabilities		428,920		404,721		369,467		368,161
Total liabilities		7,442,429		37,648,159		22,948,841		48,045,703

¹  Includes $167,400; $17,186,868; $14,631,022; $39,113,909; $22,960,155; $3,348,995; $5,405,314; and $0, respectively, of investments in securities on loan, at value plus accrued interest and dividends, if any.

²  Includes restricted cash of $669,000 and $27,247,353 delivered to broker as initial margin for investments sold short, futures contracts and/or swaps for PACE International Equity Investments and PACE Alternative Strategies Investments, respectively.

³  Net upfront payments received by PACE Alternative Strategies Investments were $603,239.

238

	PACE International Equity Investments		PACE International Emerging Markets Equity Investments		PACE Global Real Estate Securities Investments		PACE Alternative Strategies Investments
Assets:
Investments in unaffiliated securities, at value (cost—$1,078,618,679; $907,917,702; $373,780,058; $357,431,703; $836,769,827; $291,080,327; $87,352,112 and $488,811,976, respectively)1	$	887,859,349	$	306,852,814	$	103,041,066	$	497,460,437
Investment in an affiliated security, at value (cost—$173,750; $17,797,200; $15,163,573; $40,533,810; $24,172,469; $3,466,958; $5,613,519 and $0, respectively)		24,172,469		3,466,958		5,613,519		—
Repurchase agreement, at value (cost—$24,215,000; $28,530,000; $15,810,000; $14,471,000; $14,866,000; $1,875,000; $2,882,000 and $68,893,000, respectively)		14,866,000		1,875,000		2,882,000		68,893,000
Total investments in securities, at value (cost—$1,103,007,429; $954,244,902; $404,753,631; $412,436,513; $875,808,296; $296,422,285; $95,847,631 and $557,704,976, respectively)	$	926,897,818	$	312,194,772	$	111,536,585	$	566,353,437
Cash		671,2192		—		172		27,247,3532
Foreign currency, at value (cost—$0; $0; $0; $0; $1,299,921; $920,360; $37,550 and $3,343,589, respectively)		1,324,210		923,589		37,610		3,420,361
Receivable for investments sold		9,457,641		111,345		554,947		31,388,146
Receivable for shares of beneficial interest sold		671,379		244,398		181,467		851,699
Receivable for dividends and interest		1,603,052		965,359		238,643		1,733,870
Swap agreements, at value3		—		—		—		10,858,214
Due from broker		—		—		—		1,095,828
Unrealized appreciation on forward foreign currency contracts		1,652,114		—		—		11,831,034
Receivable for variation margin		—		—		—		366,961
Receivable for foreign tax reclaims		295,857		12,201		16,900		36,986
Other assets		34,305		23,310		10,749		32,676
Total assets		942,607,595		314,474,974		112,577,073		655,216,565
Liabilities:
Payable for investments purchased		6,301,834		507,193		490,394		34,651,783
Payable for shares of beneficial interest repurchased		1,540,901		550,532		179,625		3,505,529
Payable to affiliate		692,308		286,700		32,251		651,258
Payable for cash collateral from securities loaned		24,172,469		3,466,958		5,613,519		—
Payable to custodian		71,235		90,807		6,649		425,241
Payable for foreign withholding taxes		73,388		382,596		63,376		52,846
Unrealized depreciation on forward foreign currency contracts		688,401		—		—		17,465,398
Payable for variation margin		74,967		—		—		641,413
Due to broker		22,827		—		—		4,050,400
Swap agreements, at value3		—		—		—		12,579,063
Investments sold short, at value (proceeds—$0; $0; $0; $0; $0; $0; $0 and $29,537,983, respectively)		—		—		—		27,410,190
Options and swaptions written, at value (premiums received $0; $0; $0; $0; $0; $0; $0 and $4,976,441, respectively)		—		—		—		5,168,967
Payable for dividend and interest on investments sold short		—		—		—		2,655
Accrued expenses and other liabilities		406,170		321,185		202,748		257,522
Total liabilities		34,044,500		5,605,971		6,588,562		106,862,265

See accompanying notes to financial statements.
239

PACE Select Advisors Trust

Statement of assets and liabilities (concluded)
July 31, 2011

	PACE Large Co Value Equity Investments			PACE Large Co Growth Equity Investments			PACE Small/Medium Co Value Equity Investments			PACE Small/Medium Co Growth Equity Investments
Net assets:
Beneficial interest shares of $0.001 par value (unlimited amount authorized)	$	1,371,543,701		$	1,089,825,262		$	424,550,030		$	405,502,780
Accumulated undistributed (distributions in excess of) net investment income		7,999,067			2,434,116			125,408			—
Accumulated net realized loss		(279,327,471	)		(159,138,190	)		(40,928,606	)		(32,090,937	)
Net unrealized appreciation		99,544,912			217,382,047			41,536,169			95,157,586
Net assets	$	1,199,760,209		$	1,150,503,235		$	425,283,001		$	468,569,429
Class A
Net assets	$	147,471,298		$	64,314,599		$	32,166,478		$	40,991,958
Shares outstanding		8,623,080			3,454,067			1,886,190			2,461,167
Net asset value per share	$	17.10		$	18.62		$	17.05		$	16.66
Maximum offering price per share	$	18.10		$	19.70		$	18.04		$	17.63
Class B
Net assets	$	85,994		$	69,313		$	2,307		$	12,037
Shares outstanding		5,010			4,064			150			806
Net asset value and offering price per share	$	17.16		$	17.06		$	15.431		$	14.941
Class C
Net assets	$	14,806,745		$	4,208,956		$	5,109,019		$	4,157,934
Shares outstanding		867,549			246,104			329,064			276,358
Net asset value and offering price per share	$	17.07		$	17.10		$	15.53		$	15.05
Class Y
Net assets	$	16,983,985		$	13,858,353		$	371,353		$	97,647
Shares outstanding		990,039			727,357			21,214			5,642
Net asset value, offering price and redemption value per share2	$	17.15		$	19.05		$	17.51		$	17.31
Class P
Net assets	$	1,020,412,187		$	1,068,052,014		$	387,633,844		$	423,309,853
Shares outstanding		59,673,297			56,295,148			22,306,159			24,690,440
Net asset value, offering price and redemption value per share2	$	17.10		$	18.97		$	17.38		$	17.14

¹  Net assets divided by shares outstanding does not equal net asset value due to rounding.

²  Assumes shares were held a sufficient period or are otherwise not subject to a redemption fee.

240

	PACE International Equity Investments			PACE International Emerging Markets Equity Investments			PACE Global Real Estate Securities Investments			PACE Alternative Strategies Investments
Net assets:
Beneficial interest shares of $0.001 par value (unlimited amount authorized)	$	1,107,776,517		$	291,374,942		$	135,605,289		$	661,491,195
Accumulated undistributed (distributions in excess of) net investment income		15,656,869			2,060,455			(1,847,200	)		(8,331,082	)
Accumulated net realized loss		(266,876,554	)		(94,529	)		(43,462,852	)		(106,167,268	)
Net unrealized appreciation		52,006,263			15,528,135			15,693,274			1,361,455
Net assets	$	908,563,095		$	308,869,003		$	105,988,511		$	548,354,300
Class A
Net assets	$	66,904,052		$	22,648,452		$	4,566,246		$	63,766,689
Shares outstanding		4,987,477			1,641,162			758,409			6,838,726
Net asset value per share	$	13.41		$	13.80		$	6.02		$	9.32
Maximum offering price per share	$	14.19		$	14.60		$	6.37		$	9.86
Class B
Net assets	$	849		$	48,651		$	—		$	—
Shares outstanding		63			3,748			—			—
Net asset value and offering price per share	$	13.471		$	12.98		$	—		$	—
Class C
Net assets	$	3,601,201		$	3,372,764		$	219,755		$	6,478,862
Shares outstanding		274,140			262,048			36,692			709,881
Net asset value and offering price per share	$	13.14		$	12.87		$	5.99		$	9.13
Class Y
Net assets	$	21,046,045		$	17,807,804		$	194,543		$	1,564,823
Shares outstanding		1,569,166			1,266,755			32,176			166,772
Net asset value, offering price and redemption value per share2	$	13.41		$	14.06		$	6.05		$	9.38
Class P
Net assets	$	817,010,948		$	264,991,332		$	101,007,967		$	476,543,926
Shares outstanding		61,025,022			18,929,133			16,747,836			50,932,013
Net asset value, offering price and redemption value per share2	$	13.39		$	14.00		$	6.03		$	9.36

See accompanying notes to financial statements.
241

PACE Select Advisors Trust

Statement of operations

For the year ended July 31, 2011

	PACE Money Market Investments			PACE Government Securities Fixed Income Investments			PACE Intermediate Fixed Income Investments			PACE Strategic Fixed Income Investments
Investment income:
Interest (net of foreign withholding taxes of $0; $0; $4,556; $2,736; $0; $3,808 and $157, respectively)	$	947,570		$	19,817,497		$	14,393,732		$	33,760,547
Dividends		—			—			—			480,000
Securities lending income (includes $24; $0; $2,973; $2,888; $0; $19 and $10,721, respectively earned from an affiliated entity)		381			—			10,765			4,800
		947,951			19,817,497			14,404,497			34,245,347
Expenses:
Investment management and administration fees		1,267,950			3,830,186			2,443,633			4,682,450
Service fees–Class A		—			214,475			102,607			122,830
Service and distribution fees–Class B		—			1,331			1,218			2,642
Service and distribution fees–Class C		—			175,604			31,093			95,622
Transfer agency and related services fees		1,533,469			834,713			400,489			1,010,983
Reports and notices to shareholders		114,198			54,348			30,122			68,134
Professional fees		111,301			171,738			169,987			167,260
Custody and accounting fees		48,853			264,054			179,333			401,755
State registration fees		39,789			73,613			71,611			80,122
Trustees' fees		19,157			21,743			20,241			23,129
Insurance expense		9,984			14,849			11,060			17,658
Interest expense		—			100			974			—
Other expenses		25,163			48,288			34,285			38,179
		3,169,864			5,705,042			3,496,653			6,710,764
Fee waivers and/or expense reimbursements by investment manager and administrator		(2,258,176	)		(519,197	)		(207,420	)		(241,526	)
Recoupment of fees waived or expenses previously reimbursed		—			—			—			2,711
Net expenses		911,688			5,185,845			3,289,233			6,471,949
Net investment income		36,263			14,631,652			11,115,264			27,773,398
Net realized and unrealized gains (losses) from investment activities:
Net realized gains (losses) from:
Investments		(659	)		5,078,049			6,341,985			11,043,527
Futures		—			315,895			803,461			6,515,426
Options and swaptions written		—			1,092,053			—			(828,009	)
Investments sold short		—			(204,277	)		—			—
Swaps		—			(1,533,033	)		(324,289	)		558,907
Forward foreign currency contracts		—			—			215,208			(6,934,292	)
Foreign currency transactions		—			—			44,678			1,132,184
Net realized gain (loss)		(659	)		4,748,687			7,081,043			11,487,743
Net change in unrealized appreciation/depreciation of:
Investments		—			7,706,972			(735,669	)		8,447,004
Futures		—			(261,891	)		19,883			3,322,876
Options and swaptions written		—			(130,362	)		—			1,261,319
Investments sold short		—			(2,907,155	)		13,481			—
Swaps		—			(36,836	)		(1,558,527	)		(400,602	)
Forward foreign currency contracts		—			—			(323,921	)		105,006
Other assets and liabilities denominated in foreign currency		—			—			10,181			(50,978	)
Net change in unrealized appreciation/depreciation		—			4,370,728			(2,574,572	)		12,684,625
Net realized and unrealized gains (losses) from investment activities		(659	)		9,119,415			4,506,471			24,172,368
Net increase in net assets resulting from operations	$	35,604		$	23,751,067		$	15,621,735		$	51,945,766

242

	PACE Municipal Fixed Income Investments			PACE International Fixed Income Investments			PACE High Yield Investments
Investment income:
Interest (net of foreign withholding taxes of $0; $0; $4,556; $2,736; $0; $3,808 and $157, respectively)	$	12,496,928		$	18,393,985		$	20,996,707
Dividends		—			—			536,379
Securities lending income (includes $24; $0; $2,973; $2,888; $0; $19 and $10,721, respectively earned from an affiliated entity)		—			112			153,164
		12,496,928			18,394,097			21,686,250
Expenses:
Investment management and administration fees		1,729,825			4,068,300			2,051,096
Service fees–Class A		195,770			246,360			52,690
Service and distribution fees–Class B		552			1,518			—
Service and distribution fees–Class C		110,653			57,306			25,923
Transfer agency and related services fees		181,605			1,004,864			466,917
Reports and notices to shareholders		19,663			73,576			39,061
Professional fees		137,330			169,936			154,205
Custody and accounting fees		110,115			481,977			109,722
State registration fees		65,143			71,028			57,653
Trustees' fees		18,854			20,934			18,214
Insurance expense		7,678			12,893			5,263
Interest expense		69			—			—
Other expenses		26,284			27,738			24,677
		2,603,541			6,236,430			3,005,421
Fee waivers and/or expense reimbursements by investment manager and administrator		(113,934	)		(540,638	)		(118,506	)
Recoupment of fees waived or expenses previously reimbursed		—			18,289			5,357
Net expenses		2,489,607			5,714,081			2,892,272
Net investment income		10,007,321			12,680,016			18,793,978
Net realized and unrealized gains (losses) from investment activities:
Net realized gains (losses) from:
Investments		1,212,664			7,114,195			5,934,741
Futures		—			(5,221,921	)		—
Options and swaptions written		—			—			—
Investments sold short		—			—			—
Swaps		—			—			—
Forward foreign currency contracts		—			13,581,572			(3,740,949	)
Foreign currency transactions		—			17,640,431			(143,724	)
Net realized gain (loss)		1,212,664			33,114,277			2,050,068
Net change in unrealized appreciation/depreciation of:
Investments		(303,823	)		19,670,031			3,090,358
Futures		—			1,254,317			—
Options and swaptions written		—			—			—
Investments sold short		—			—			—
Swaps		—			—			—
Forward foreign currency contracts		—			(1,924,130	)		(238,831	)
Other assets and liabilities denominated in foreign currency		—			107,920			17,585
Net change in unrealized appreciation/depreciation		(303,823	)		19,108,138			2,869,112
Net realized and unrealized gains (losses) from investment activities		908,841			52,222,415			4,919,180
Net increase in net assets resulting from operations	$	10,916,162		$	64,902,431		$	23,713,158

See accompanying notes to financial statements.
243

PACE Select Advisors Trust

Statement of operations (concluded)

For the year ended July 31, 2011

	PACE Large Co Value Equity Investments			PACE Large Co Growth Equity Investments			PACE Small/Medium Co Value Equity Investments			PACE Small/Medium Co Growth Equity Investments
Investment income:
Interest (net of foreign withholding taxes of $0; $0; $0; $0; $4; $53; $0 and $11,067, respectively)	$	2,369		$	3,411		$	1,378		$	1,058
Dividends (net of foreign withholding taxes of $171,329; $36,457; $1,083; $5,953; $2,732,155; $853,637; $132,782 and $308,183, respectively)		25,029,009			13,292,856			4,660,679			1,707,471
Securities lending income (includes $804; $3,962; $7,632; $25,086; $18,648; $2,061; $2,757 and $0, respectively, earned from an affiliated entity)		97,753			33,608			75,434			356,850
		25,129,131			13,329,875			4,737,491			2,065,379
Expenses:
Investment management and administration fees		8,912,754			8,702,260			3,406,070			3,599,144
Service fees–Class A		382,020			160,046			79,942			98,181
Service and distribution fees–Class B		1,246			843			183			152
Service and distribution fees–Class C		158,610			43,529			54,416			39,008
Transfer agency and related services fees		1,231,369			1,139,030			1,041,776			1,045,170
Custody and accounting fees		468,062			436,293			167,297			176,767
Professional fees		149,834			194,713			142,234			142,434
Reports and notices to shareholders		94,753			125,005			69,157			70,563
State registration fees		79,697			78,617			66,415			66,651
Insurance expense		26,985			24,956			9,393			9,771
Trustees' fees		26,844			26,082			19,805			20,039
Interest expense		—			182			—			46
Dividend expense, interest expense and other borrowing costs for investments sold short		—			—			—			—
Other expenses		38,510			50,485			29,304			28,360
		11,570,684			10,982,041			5,085,992			5,296,286
Fee waivers and/or expense reimbursements by investment manager and administrator		(404	)		(89,315	)		(56,610	)		(116,207	)
Recoupment of fees waived or expenses previously reimbursed		2,092			—			—			1,606
Net expenses		11,572,372			10,892,726			5,029,382			5,181,685
Net investment income (loss)		13,556,759			2,437,149			(291,891	)		(3,116,306	)
Net realized and unrealized gains (losses) from investment activities:
Net realized gains (losses) from:
Investments (net of foreign tax expense of $0; $0; $0; $0; $0; $734,675; $0 and $0, respectively)		108,714,009			105,162,554			54,858,592			63,060,360
Futures		—			—			—			—
Options and swaptions written		—			—			—			—
Investments sold short		—			—			—			—
Swaps		—			—			—			—
Forward foreign currency contracts		—			—			—			—
Foreign currency transactions		—			—			—			—
Net realized gain		108,714,009			105,162,554			54,858,592			63,060,360
Net change in unrealized appreciation/depreciation of:
Investments		57,535,762			128,680,588			18,234,910			70,447,583
Futures		—			—			—			—
Options and swaptions written		—			—			—			—
Investments sold short		—			—			—			—
Swaps		—			—			—			—
Forward foreign currency contracts		—			—			—			—
Other assets and liabilities denominated in foreign currency		—			—			—			—
Net change in unrealized appreciation/depreciation		57,535,762			128,680,588			18,234,910			70,447,583
Net realized and unrealized gain from investment activities		166,249,771			233,843,142			73,093,502			133,507,943
Net increase in net assets resulting from operations	$	179,806,530		$	236,280,291		$	72,801,611		$	130,391,637

244

	PACE International Equity Investments			PACE International Emerging Markets Equity Investments			PACE Global Real Estate Securities Investments			PACE Alternative Strategies Investments
Investment income:
Interest (net of foreign withholding taxes of $0; $0; $0; $0; $4; $53; $0 and $11,067, respectively)	$	6,514		$	564		$	77		$	6,134,683
Dividends (net of foreign withholding taxes of $171,329; $36,457; $1,083; $5,953; $2,732,155; $853,637; $132,782 and $308,183, respectively)		28,493,850			8,356,184			2,761,120			4,356,295
Securities lending income (includes $804; $3,962; $7,632; $25,086; $18,648; $2,061; $2,757 and $0, respectively, earned from an affiliated entity)		930,288			17,797			36,245			—
		29,430,652			8,374,545			2,797,442			10,490,978
Expenses:
Investment management and administration fees		7,808,820			3,367,727			754,017			7,232,850
Service fees–Class A		172,403			56,377			11,051			159,990
Service and distribution fees–Class B		69			540			—			—
Service and distribution fees–Class C		37,892			37,530			1,991			71,056
Transfer agency and related services fees		1,106,093			946,683			417,370			493,866
Custody and accounting fees		821,946			658,238			70,689			528,076
Professional fees		180,021			167,295			161,406			363,466
Reports and notices to shareholders		113,423			116,801			33,127			65,095
State registration fees		77,076			64,214			50,858			69,657
Insurance expense		20,307			7,095			1,877			11,562
Trustees' fees		23,831			18,671			16,671			20,670
Interest expense		1,159			3,255			—			10,199
Dividend expense, interest expense and other borrowing costs for investments sold short		—			—			—			526,474
Other expenses		50,942			54,617			36,326			48,383
		10,413,982			5,499,043			1,555,383			9,601,344
Fee waivers and/or expense reimbursements by investment manager and administrator		(19,744	)		(13,416	)		(411,315	)		(42,140	)
Recoupment of fees waived or expenses previously reimbursed		—			—			—			477
Net expenses		10,394,238			5,485,627			1,144,068			9,559,681
Net investment income (loss)		19,036,414			2,888,918			1,653,374			931,297
Net realized and unrealized gains (losses) from investment activities:
Net realized gains (losses) from:
Investments (net of foreign tax expense of $0; $0; $0; $0; $0; $734,675; $0 and $0, respectively)		33,819,226			62,348,164			8,763,514			29,071,047
Futures		317,834			—			—			(2,261,629	)
Options and swaptions written		—			—			—			1,525,717
Investments sold short		—			—			—			(5,858,995	)
Swaps		—			—			—			363,828
Forward foreign currency contracts		2,546,075			1,860			—			(11,726,240	)
Foreign currency transactions		453,714			(442,785	)		(35,683	)		807,760
Net realized gain		37,136,849			61,907,239			8,727,831			11,921,488
Net change in unrealized appreciation/depreciation of:
Investments		73,507,800			(26,976,318	)		7,182,408			6,669,293
Futures		(163,901	)		—			—			(1,746,873	)
Options and swaptions written		—			—			—			(140,189	)
Investments sold short		—			—			—			2,404,320
Swaps		—			—			—			(1,052,488	)
Forward foreign currency contracts		857,964			—			—			(5,896,640	)
Other assets and liabilities denominated in foreign currency		(10,449	)		353,614			468			87,743
Net change in unrealized appreciation/depreciation		74,191,414			(26,622,704	)		7,182,876			325,166
Net realized and unrealized gain from investment activities		111,328,263			35,284,535			15,910,707			12,246,654
Net increase in net assets resulting from operations	$	130,364,677		$	38,173,453		$	17,564,081		$	13,177,951

See accompanying notes to financial statements.
245

PACE Select Advisors Trust

Statement of changes in net assets

	PACE Money Market Investments						PACE Government Securities Fixed Income Investments						PACE Intermediate Fixed Income Investments
	Years ended July 31,						Years ended July 31,						Years ended July 31,
	2011			2010			2011			2010			2011			2010
From operations:
Net investment income	$	36,263		$	43,561		$	14,631,652		$	19,750,643		$	11,115,264		$	13,710,690
Net realized gains (losses)		(659	)		(94	)		4,748,687			26,064,435			7,081,043			4,979,981
Net change in unrealized appreciation/depreciation		—			—			4,370,728			12,933,532			(2,574,572	)		13,117,623
Net increase in net assets resulting from operations		35,604			43,467			23,751,067			58,748,610			15,621,735			31,808,294
Dividends and distributions to shareholders from:
Net investment income–Class A		—			—			(2,406,844	)		(3,092,475	)		(863,862	)		(1,454,509	)
Net investment income–Class B		—			—			(2,676	)		(3,663	)		(1,681	)		(4,138	)
Net investment income–Class C		—			—			(542,028	)		(700,042	)		(65,946	)		(134,304	)
Net investment income–Class Y		—			—			(1,552,096	)		(1,558,291	)		(38,926	)		(78,814	)
Net investment income–Class P		(36,263	)		(43,561	)		(14,214,219	)		(16,487,839	)		(9,834,848	)		(13,904,993	)
Net realized gains–Class A		—			—			(3,234,533	)		(3,082,896	)		—			—
Net realized gains–Class B		—			—			(4,578	)		(4,285	)		—			—
Net realized gains–Class C		—			—			(886,763	)		(821,564	)		—			—
Net realized gains–Class Y		—			—			(1,877,527	)		(1,438,485	)		—			—
Net realized gains–Class P		(1,389	)		(10,489	)		(17,268,828	)		(15,257,195	)		—			—
		(37,652	)		(54,050	)		(41,990,092	)		(42,446,735	)		(10,805,263	)		(15,576,758	)
From beneficial interest transactions:
Net proceeds from shares sold		359,119,509			409,092,964			123,731,378			162,167,465			102,696,255			146,111,607
Cost of shares repurchased		(379,510,934	)		(552,857,220	)		(180,478,574	)		(150,566,609	)		(132,429,235	)		(112,192,313	)
Proceeds from dividends reinvested		19,904			33,528			38,969,566			39,428,168			9,945,673			14,435,941
Net increase (decrease) in net assets from beneficial interest transactions		(20,371,521	)		(143,730,728	)		(17,777,630	)		51,029,024			(19,787,307	)		48,355,235
Redemption fees		—			—			41,268			35,049			32,209			33,544
Net increase (decrease) in net assets		(20,373,569	)		(143,741,311	)		(35,975,387	)		67,365,948			(14,938,626	)		64,620,315
Net assets:
Beginning of year		386,217,198			529,958,509			643,624,975			576,259,027			470,505,996			405,885,681
End of year	$	365,843,629		$	386,217,198		$	607,649,588		$	643,624,975		$	455,567,370		$	470,505,996
Accumulated undistributed (distributions in excess of) net investment income	$	—		$	—		$	93,823		$	53,465		$	237,492		$	(269,948	)

246

	PACE Strategic Fixed Income Investments						PACE Municipal Fixed Income Investments
	Years ended July 31,						Years ended July 31,
	2011			2010			2011			2010
From operations:
Net investment income	$	27,773,398		$	25,265,746		$	10,007,321		$	10,057,677
Net realized gains (losses)		11,487,743			28,675,034			1,212,664			(337,288	)
Net change in unrealized appreciation/depreciation		12,684,625			51,979,570			(303,823	)		12,365,344
Net increase in net assets resulting from operations		51,945,766			105,920,350			10,916,162			22,085,733
Dividends and distributions to shareholders from:
Net investment income–Class A		(1,752,790	)		(1,573,552	)		(2,318,045	)		(2,642,625	)
Net investment income–Class B		(7,423	)		(11,180	)		(1,218	)		(1,834	)
Net investment income–Class C		(391,745	)		(372,694	)		(362,564	)		(401,842	)
Net investment income–Class Y		(107,818	)		(159,112	)		(3,901	)		(4,175	)
Net investment income–Class P		(26,840,251	)		(28,715,448	)		(7,322,824	)		(7,008,463	)
Net realized gains–Class A		(1,289,755	)		(41,715	)		—			—
Net realized gains–Class B		(7,592	)		(395	)		—			—
Net realized gains–Class C		(360,580	)		(11,433	)		—			—
Net realized gains–Class Y		(75,877	)		(4,631	)		—			—
Net realized gains–Class P		(19,163,723	)		(741,454	)		—			—
		(49,997,554	)		(31,631,614	)		(10,008,552	)		(10,058,939	)
From beneficial interest transactions:
Net proceeds from shares sold		189,350,728			193,295,918			56,391,695			84,935,927
Cost of shares repurchased		(172,483,419	)		(175,530,436	)		(77,508,355	)		(68,680,922	)
Proceeds from dividends reinvested		47,506,095			30,395,726			8,408,948			8,481,872
Net increase (decrease) in net assets from beneficial interest transactions		64,373,404			48,161,208			(12,707,712	)		24,736,877
Redemption fees		45,160			38,697			15,262			14,907
Net increase (decrease) in net assets		66,366,776			122,488,641			(11,784,840	)		36,778,578
Net assets:
Beginning of year		752,332,625			629,843,984			328,481,743			291,703,165
End of year	$	818,699,401		$	752,332,625		$	316,696,903		$	328,481,743
Accumulated undistributed (distributions in excess of) net investment income	$	988,102		$	6,329,490		$	—		$	—

See accompanying notes to financial statements.
247

PACE Select Advisors Trust

Statement of changes in net assets (continued)

	PACE International Fixed Income Investments						PACE High Yield Investments						PACE Large Co Value Equity Investments
	Years ended July 31,						Years ended July 31,						Years ended July 31,
	2011			2010			2011			2010			2011			2010
From operations:
Net investment income (loss)	$	12,680,016		$	12,637,486		$	18,793,978		$	16,963,583		$	13,556,759		$	11,115,134
Net realized gains		33,114,277			12,551,643			2,050,068			9,726,065			108,714,009			64,628,748
Net change in unrealized appreciation/depreciation		19,108,138			(3,389,286	)		2,869,112			13,323,709			57,535,762			59,307,694
Net increase in net assets resulting from operations		64,902,431			21,799,843			23,713,158			40,013,357			179,806,530			135,051,576
Dividends and distributions to shareholders from:
Net investment income–Class A		(2,504,717	)		(6,049,909	)		(1,428,831	)		(765,754	)		(1,238,328	)		(1,427,479	)
Net investment income–Class B		(2,658	)		(9,958	)		—			—			—			—
Net investment income–Class C		(158,235	)		(393,818	)		(221,860	)		(152,806	)		—			(31,970	)
Net investment income–Class Y		(150,612	)		(454,829	)		(4,034	)		(605	)		(185,964	)		(316,414	)
Net investment income–Class P		(11,903,830	)		(23,807,959	)		(16,282,071	)		(14,154,934	)		(10,356,972	)		(10,516,247	)
Net realized gains–Class A		—			—			(130,986	)		(78,625	)		—			—
Net realized gains–Class C		—			—			(18,866	)		(16,928	)		—			—
Net realized gains–Class Y		—			—			(1,874	)		(51	)		—			—
Net realized gains–Class P		—			—			(1,227,557	)		(1,255,813	)		—			—
Return of capital–Class A		—			(192,113	)		—			—			—			—
Return of capital–Class B		—			(248	)		—			—			—			—
Return of capital–Class C		—			(11,357	)		—			—			—			—
Return of capital–Class Y		—			(13,488	)		—			—			—			—
Return of capital–Class P		—			(833,372	)		—			—			—			—
		(14,720,052	)		(31,767,051	)		(19,316,079	)		(16,425,516	)		(11,781,264	)		(12,292,110	)
From beneficial interest transactions:
Net proceeds from shares sold		101,651,223			113,913,467			89,099,205			78,982,899			183,390,929			189,228,067
Cost of shares repurchased		(103,612,336	)		(101,037,675	)		(59,328,894	)		(48,839,004	)		(238,882,033	)		(254,574,170	)
Proceeds from dividends reinvested		13,558,753			29,414,162			18,090,389			15,514,240			11,209,828			11,815,305
Net increase (decrease) in net assets from beneficial interest transactions		11,597,640			42,289,954			47,860,700			45,658,135			(44,281,276	)		(53,530,798	)
Redemption fees		17,861			18,579			14,993			11,666			23,830			34,372
Net increase in net assets		61,797,880			32,341,325			52,272,772			69,257,642			123,767,820			69,263,040
Net assets:
Beginning of year		515,863,900			483,522,575			225,650,833			156,393,191			1,075,992,389			1,006,729,349
End of year	$	577,661,780		$	515,863,900		$	277,923,605		$	225,650,833		$	1,199,760,209		$	1,075,992,389
Accumulated undistributed (distributions in excess of) net investment income	$	8,793,860		$	(14,446,493	)	$	(2,793	)	$	(863,267	)	$	7,999,067		$	6,223,572

248

	PACE Large Co Growth Equity Investments						PACE Small/Medium Co Value Equity Investments
	Years ended July 31,						Years ended July 31,
	2011			2010			2011			2010
From operations:
Net investment income (loss)	$	2,437,149		$	1,659,535		$	(291,891	)	$	435,026
Net realized gains		105,162,554			57,779,334			54,858,592			51,988,477
Net change in unrealized appreciation/depreciation		128,680,588			52,043,717			18,234,910			13,559,055
Net increase in net assets resulting from operations		236,280,291			111,482,586			72,801,611			65,982,558
Dividends and distributions to shareholders from:
Net investment income–Class A		—			(116,030	)		—			(16,813	)
Net investment income–Class B		—			—			—			—
Net investment income–Class C		—			—			—			—
Net investment income–Class Y		(26,597	)		(100,359	)		(174	)		(13,258	)
Net investment income–Class P		(1,631,101	)		(4,102,688	)		(147,159	)		(818,895	)
Net realized gains–Class A		—			—			—			—
Net realized gains–Class C		—			—			—			—
Net realized gains–Class Y		—			—			—			—
Net realized gains–Class P		—			—			—			—
Return of capital–Class A		—			—			—			—
Return of capital–Class B		—			—			—			—
Return of capital–Class C		—			—			—			—
Return of capital–Class Y		—			—			—			—
Return of capital–Class P		—			—			—			—
		(1,657,698	)		(4,319,077	)		(147,333	)		(848,966	)
From beneficial interest transactions:
Net proceeds from shares sold		180,861,704			186,545,357			68,096,464			64,946,583
Cost of shares repurchased		(235,118,577	)		(228,881,459	)		(94,588,078	)		(95,629,678	)
Proceeds from dividends reinvested		1,587,210			4,184,445			141,912			826,718
Net increase (decrease) in net assets from beneficial interest transactions		(52,669,663	)		(38,151,657	)		(26,349,702	)		(29,856,377	)
Redemption fees		22,934			31,168			12,379			13,369
Net increase in net assets		181,975,864			69,043,020			46,316,955			35,290,584
Net assets:
Beginning of year		968,527,371			899,484,351			378,966,046			343,675,462
End of year	$	1,150,503,235		$	968,527,371		$	425,283,001		$	378,966,046
Accumulated undistributed (distributions in excess of) net investment income	$	2,434,116		$	1,654,665		$	125,408		$	178,159

See accompanying notes to financial statements.
249

PACE Select Advisors Trust

Statement of changes in net assets (concluded)

	PACE Small/Medium Co Growth Equity Investments						PACE International Equity Investments						PACE International Emerging Markets Equity Investments
	Years ended July 31,						Years ended July 31,						Years ended July 31,
	2011			2010			2011			2010			2011			2010
From operations:
Net investment income (loss)	$	(3,116,306	)	$	(2,005,318	)	$	19,036,414		$	14,556,203		$	2,888,918		$	2,150,750
Net realized gains		63,060,360			57,725,409			37,136,849			16,552,276			61,907,239			159,232
Net change in unrealized appreciation/depreciation		70,447,583			(1,119,645	)		74,191,414			(13,858,933	)		(26,622,704	)		40,318,395
Net increase in net assets resulting from operations		130,391,637			54,600,446			130,364,677			17,249,546			38,173,453			42,628,377
Dividends to shareholders from:
Net investment income–Class A		—			—			(1,165,174	)		(1,498,115	)		(163,519	)		(253,419	)
Net investment income–Class B		—			—			—			(401	)		—			—
Net investment income–Class C		—			—			(33,337	)		(54,114	)		—			(38,834	)
Net investment income–Class Y		—			—			(433,443	)		(812,371	)		(177,379	)		(551,002	)
Net investment income–Class P		—			—			(14,656,797	)		(16,405,498	)		(1,739,478	)		(3,017,588	)
		—			—			(16,288,751	)		(18,770,499	)		(2,080,376	)		(3,860,843	)
From beneficial interest transactions:
Net proceeds from shares sold		67,727,931			65,977,633			160,262,924			169,969,986			66,897,606			53,575,620
Cost of shares repurchased		(103,860,922	)		(93,868,360	)		(173,419,299	)		(187,811,537	)		(73,418,751	)		(84,031,041	)
Proceeds from dividends reinvested		—			—			15,566,057			18,146,234			2,000,818			3,764,075
Net increase (decrease) in net assets from beneficial interest transactions		(36,132,991	)		(27,890,727	)		2,409,682			304,683			(4,520,327	)		(26,691,346	)
Redemption fees		12,119			14,263			20,237			29,308			11,530			16,208
Net increase (decrease) in net assets		94,270,765			26,723,982			116,505,845			(1,186,962	)		31,584,280			12,092,396
Net assets:
Beginning of year		374,298,664			347,574,682			792,057,250			793,244,212			277,284,723			265,192,327
End of year	$	468,569,429		$	374,298,664		$	908,563,095		$	792,057,250		$	308,869,003		$	277,284,723
Accumulated undistributed (distributions in excess of) net investment income	$	—		$	—		$	15,656,869		$	9,642,793		$	2,060,455		$	1,933,910

250

	PACE Global Real Estate Securities Investments						PACE Alternative Strategies Investments
	Years ended July 31,						Years ended July 31,
	2011			2010			2011			2010
From operations:
Net investment income (loss)	$	1,653,374		$	1,658,115		$	931,297		$	1,069,754
Net realized gains		8,727,831			8,195,357			11,921,488			15,343,826
Net change in unrealized appreciation/depreciation		7,182,876			1,809,258			325,166			4,137,729
Net increase in net assets resulting from operations		17,564,081			11,662,730			13,177,951			20,551,309
Dividends to shareholders from:
Net investment income–Class A		(281,969	)		(294,268	)		(583,054	)		(183,571	)
Net investment income–Class B		—			—			—			—
Net investment income–Class C		(11,375	)		(12,411	)		(18,811	)		—
Net investment income–Class Y		(10,901	)		(4,423	)		(14,369	)		(28,303	)
Net investment income–Class P		(5,732,414	)		(5,852,048	)		(5,018,074	)		(2,293,558	)
		(6,036,659	)		(6,163,150	)		(5,634,308	)		(2,505,432	)
From beneficial interest transactions:
Net proceeds from shares sold		31,045,874			26,534,560			194,272,098			147,143,220
Cost of shares repurchased		(20,503,596	)		(16,205,411	)		(124,042,441	)		(144,625,395	)
Proceeds from dividends reinvested		5,791,306			5,976,100			5,436,765			2,436,809
Net increase (decrease) in net assets from beneficial interest transactions		16,333,584			16,305,249			75,666,422			4,954,634
Redemption fees		4,843			5,061			31,814			29,553
Net increase (decrease) in net assets		27,865,849			21,809,890			83,241,879			23,030,064
Net assets:
Beginning of year		78,122,662			56,312,772			465,112,421			442,082,357
End of year	$	105,988,511		$	78,122,662		$	548,354,300		$	465,112,421
Accumulated undistributed (distributions in excess of) net investment income	$	(1,847,200	)	$	424,617		$	(8,331,082	)	$	4,954,050

See accompanying notes to financial statements.
251

This page intentionally left blank.

252

PACE Select Advisors Trust

Financial highlights

PACE Money Market Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0001			0.0001			0.008			0.033			0.048
Dividends from net investment income		(0.000	)1		(0.000	)1		(0.008	)		(0.033	)		(0.048	)
Distributions from net realized gains		(0.000	)1		(0.000	)1		(0.000	)1		—			—
Total dividends and distributions		(0.000	)1		(0.000	)1		(0.008	)		(0.033	)		(0.048	)
Net asset value, end of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return2		0.01	%		0.01	%		0.81	%		3.40	%		4.86	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.88	%		0.90	%		0.89	%		0.93	%		0.92	%
Expenses after fee waivers and/or expense reimbursements by manager		0.25	%		0.27	%		0.59	%		0.60	%		0.60	%
Net investment income		0.01	%		0.01	%		0.78	%		3.27	%		4.75	%
Supplemental data:
Net assets, end of year (000's)	$	365,844		$	386,217		$	529,959		$	523,243		$	408,562

¹  Amount represents less than $0.0005 per share.

²  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each year reported. The figures do not include program fees; results would be lower if these fees were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

See accompanying notes to financial statements.
253

PACE Select Advisors Trust

Financial highlights

PACE Government Securities Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	13.71		$	13.36		$	12.87		$	12.72		$	12.71
Net investment income1		0.29			0.41			0.57			0.56			0.57
Net realized and unrealized gains		0.20			0.86			0.56			0.15			0.002
Net increase from operations		0.49			1.27			1.13			0.71			0.57
Dividends from net investment income		(0.38	)		(0.46	)		(0.64	)		(0.56	)		(0.56	)
Distributions from net realized gains		(0.51	)		(0.46	)		—			—			—
Total dividends and distributions		(0.89	)		(0.92	)		(0.64	)		(0.56	)		(0.56	)
Net asset value, end of year	$	13.31		$	13.71		$	13.36		$	12.87		$	12.72
Total investment return3		3.74	%		9.92	%		9.09	%		5.53	%		4.52	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.06	%4		1.08	%4		1.07	%4		1.12	%		1.13	%
Expenses after fee waivers and/or expense reimbursements by manager		1.02	%4		1.02	%4		1.02	%4		1.07	%		1.12	%
Net investment income		2.16	%		3.06	%		4.41	%		4.30	%		4.40	%
Supplemental data:
Net assets, end of year (000's)	$	80,727		$	92,416		$	90,386		$	91,614		$	99,378
Portfolio turnover		1,105	%		1,065	%		877	%		588	%		495	%
	Class C
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	13.72		$	13.37		$	12.88		$	12.73		$	12.72
Net investment income1		0.22			0.35			0.51			0.50			0.50
Net realized and unrealized gains		0.20			0.85			0.55			0.14			0.01
Net increase from operations		0.42			1.20			1.06			0.64			0.51
Dividends from net investment income		(0.31	)		(0.39	)		(0.57	)		(0.49	)		(0.50	)
Distributions from net realized gains		(0.51	)		(0.46	)		—			—			—
Total dividends and distributions		(0.82	)		(0.85	)		(0.57	)		(0.49	)		(0.50	)
Net asset value, end of year	$	13.32		$	13.72		$	13.37		$	12.88		$	12.73
Total investment return3		3.22	%		9.37	%		8.45	%		5.06	%		4.00	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.58	%4		1.61	%4		1.63	%4		1.68	%		1.70	%
Expenses after fee waivers and/or expense reimbursements by manager		1.52	%4		1.52	%4		1.52	%4		1.57	%		1.62	%
Net investment income		1.66	%		2.56	%		3.90	%		3.80	%		3.90	%
Supplemental data:
Net assets, end of year (000's)	$	22,064		$	24,394		$	24,477		$	24,536		$	26,449
Portfolio turnover		1,105	%		1,065	%		877	%		588	%		495	%

¹  Calculated using the average shares method.

²  Amount represents less than $0.005 per share.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁴  Includes interest expense representing less than 0.005%.

254

	Class B
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	13.71		$	13.36		$	12.87		$	12.73		$	12.72
Net investment income1		0.19			0.30			0.46			0.45			0.46
Net realized and unrealized gains		0.21			0.87			0.56			0.15			0.01
Net increase from operations		0.40			1.17			1.02			0.60			0.47
Dividends from net investment income		(0.28	)		(0.36	)		(0.53	)		(0.46	)		(0.46	)
Distributions from net realized gains		(0.51	)		(0.46	)		—			—			—
Total dividends and distributions		(0.79	)		(0.82	)		(0.53	)		(0.46	)		(0.46	)
Net asset value, end of year	$	13.32		$	13.71		$	13.36		$	12.87		$	12.73
Total investment return3		3.03	%		9.12	%		8.16	%		4.72	%		3.73	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.83	%4		1.91	%4		1.86	%4		1.89	%		1.88	%
Expenses after fee waivers and/or expense reimbursements by manager		1.77	%4		1.77	%4		1.77	%4		1.82	%		1.87	%
Net investment income		1.39	%		2.29	%		3.70	%		3.55	%		3.64	%
Supplemental data:
Net assets, end of year (000's)	$	98		$	157		$	173		$	769		$	1,617
Portfolio turnover		1,105	%		1,065	%		877	%		588	%		495	%
	Class Y
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	13.71		$	13.36		$	12.87		$	12.73		$	12.72
Net investment income1		0.32			0.44			0.61			0.59			0.61
Net realized and unrealized gains		0.20			0.86			0.55			0.15			0.002
Net increase from operations		0.52			1.30			1.16			0.74			0.61
Dividends from net investment income		(0.41	)		(0.49	)		(0.67	)		(0.60	)		(0.60	)
Distributions from net realized gains		(0.51	)		(0.46	)		—			—			—
Total dividends and distributions		(0.92	)		(0.95	)		(0.67	)		(0.60	)		(0.60	)
Net asset value, end of year	$	13.31		$	13.71		$	13.36		$	12.87		$	12.73
Total investment return3		4.00	%		10.20	%		9.29	%		5.86	%		4.87	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.88	%4		0.89	%4		0.92	%4		0.90	%		0.79	%
Expenses after fee waivers and/or expense reimbursements by manager		0.77	%4		0.77	%4		0.77	%4		0.82	%		0.79	%
Net investment income		2.42	%		3.29	%		4.65	%		4.56	%		4.74	%
Supplemental data:
Net assets, end of year (000's)	$	50,830		$	49,486		$	39,199		$	25,669		$	13,658
Portfolio turnover		1,105	%		1,065	%		877	%		588	%		495	%

See accompanying notes to financial statements.
255

PACE Select Advisors Trust

Financial highlights

PACE Government Securities Fixed Income Investments
(concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	13.71		$	13.36		$	12.87		$	12.72		$	12.72
Net investment income1		0.32			0.44			0.61			0.59			0.60
Net realized and unrealized gains (losses)		0.21			0.86			0.55			0.15			(0.01	)
Net increase from operations		0.53			1.30			1.16			0.74			0.59
Dividends from net investment income		(0.41	)		(0.49	)		(0.67	)		(0.59	)		(0.59	)
Distributions from net realized gains		(0.51	)		(0.46	)		—			—			—
Total dividends and distributions		(0.92	)		(0.95	)		(0.67	)		(0.59	)		(0.59	)
Net asset value, end of year	$	13.32		$	13.71		$	13.36		$	12.87		$	12.72
Total investment return2		4.08	%		10.20	%		9.27	%		5.87	%		4.71	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.86	%3		0.88	%3		0.86	%3		0.90	%		0.91	%
Expenses after fee waivers and/or expense reimbursements by manager		0.77	%3		0.77	%3		0.77	%3		0.82	%		0.87	%
Net investment income		2.41	%		3.30	%		4.66	%		4.55	%		4.66	%
Supplemental data:
Net assets, end of year (000's)	$	453,931		$	477,172		$	422,024		$	542,337		$	469,556
Portfolio turnover		1,105	%		1,065	%		877	%		588	%		495	%

¹  Calculated using the average shares method.

²  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all
dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

³  Includes interest expense representing less than 0.005%.

See accompanying notes to financial statements.
256

This page intentionally left blank.

257

PACE Select Advisors Trust

Financial highlights

PACE Intermediate Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.02		$	11.58		$	11.51		$	11.39		$	11.27
Net investment income1		0.26			0.34			0.44			0.48			0.43
Net realized and unrealized gains		0.12			0.49			0.08			0.12			0.12
Net increase from operations		0.38			0.83			0.52			0.60			0.55
Dividends from net investment income		(0.25	)		(0.39	)		(0.45	)		(0.48	)		(0.43	)
Net asset value, end of year	$	12.15		$	12.02		$	11.58		$	11.51		$	11.39
Total investment return2		3.24	%		7.24	%		4.88	%		5.26	%		4.96	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.99	%3		1.00	%3		1.02	%		1.05	%		1.08	%
Expenses after fee waivers and/or expense reimbursements by manager		0.93	%3		0.93	%3		0.93	%		0.93	%		1.05	%
Net investment income		2.18	%		2.93	%		3.97	%		4.10	%		3.81	%
Supplemental data:
Net assets, end of year (000's)	$	39,022		$	42,905		$	45,165		$	46,257		$	51,800
Portfolio turnover		664	%		974	%		512	%		387	%		255	%
	Class C
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.03		$	11.59		$	11.52		$	11.40		$	11.28
Net investment income1		0.20			0.29			0.38			0.42			0.38
Net realized and unrealized gains		0.13			0.48			0.09			0.12			0.11
Net increase from operations		0.33			0.77			0.47			0.54			0.49
Dividends from net investment income		(0.19	)		(0.33	)		(0.40	)		(0.42	)		(0.37	)
Net asset value, end of year	$	12.17		$	12.03		$	11.59		$	11.52		$	11.40
Total investment return2		2.80	%		6.70	%		4.36	%		4.72	%		4.43	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.49	%3		1.50	%3		1.53	%		1.57	%		1.57	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.43	%3		1.43	%3		1.43	%		1.43	%		1.55	%
Net investment income		1.67	%		2.43	%		3.43	%		3.60	%		3.31	%
Supplemental data:
Net assets, end of year (000's)	$	3,474		$	4,646		$	5,185		$	3,992		$	4,116
Portfolio turnover		664	%		974	%		512	%		387	%		255	%

¹  Calculated using the average shares method.

²  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

³  Includes interest expense representing less than 0.005%.

⁴  During the year ended July 31, 2009, UBS Global Asset Management (Americas) Inc. waived fees and/or reimbursed a portion of ordinary operating expenses. The ratios after and before fee waivers and/or expense reimbursements are the same since the fee waiver/reimbursement represents less than 0.01%.

⁵  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

258

	Class B
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.04		$	11.60		$	11.53		$	11.41		$	11.29
Net investment income1		0.17			0.25			0.36			0.38			0.34
Net realized and unrealized gains		0.12			0.50			0.08			0.13			0.13
Net increase from operations		0.29			0.75			0.44			0.51			0.47
Dividends from net investment income		(0.16	)		(0.31	)		(0.37	)		(0.39	)		(0.35	)
Net asset value, end of year	$	12.17		$	12.04		$	11.60		$	11.53		$	11.41
Total investment return2		2.46	%		6.43	%		4.08	%		4.45	%		4.18	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.81	%3		1.82	%3		1.82	%		1.91	%		1.84	%
Expenses after fee waivers and/or expense reimbursements by manager		1.68	%3		1.68	%3		1.68	%		1.68	%		1.80	%
Net investment income		1.42	%		2.18	%		3.23	%		3.35	%		3.04	%
Supplemental data:
Net assets, end of year (000's)	$	72		$	157		$	155		$	166		$	324
Portfolio turnover		664	%		974	%		512	%		387	%		255	%
	Class Y
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.02		$	11.59		$	11.51		$	11.39		$	11.28
Net investment income1		0.29			0.38			0.47			0.51			0.47
Net realized and unrealized gains		0.12			0.48			0.09			0.11			0.10
Net increase from operations		0.41			0.86			0.56			0.62			0.57
Dividends from net investment income		(0.28	)		(0.43	)		(0.48	)		(0.50	)		(0.46	)
Net asset value, end of year	$	12.15		$	12.02		$	11.59		$	11.51		$	11.39
Total investment return2		3.49	%		7.53	%		5.15	%		5.52	%		5.17	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		0.83	%3		0.74	%3		0.68	%		0.76	%		0.80	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		0.68	%3		0.68	%3		0.68	%4		0.68	%		0.80	%5
Net investment income		2.42	%		3.19	%		4.17	%		4.34	%		4.07	%
Supplemental data:
Net assets, end of year (000's)	$	1,277		$	1,997		$	2,313		$	1,359		$	1,249
Portfolio turnover		664	%		974	%		512	%		387	%		255	%

See accompanying notes to financial statements.
259

PACE Select Advisors Trust

Financial highlights

PACE Intermediate Fixed Income Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.02		$	11.59		$	11.51		$	11.39		$	11.28
Net investment income1		0.29			0.37			0.47			0.51			0.46
Net realized and unrealized gains		0.13			0.48			0.09			0.11			0.11
Net increase from operations		0.42			0.85			0.56			0.62			0.57
Dividends from net investment income		(0.28	)		(0.42	)		(0.48	)		(0.50	)		(0.46	)
Net asset value, end of year	$	12.16		$	12.02		$	11.59		$	11.51		$	11.39
Total investment return2		3.58	%		7.51	%		5.14	%		5.52	%		5.17	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		0.72	%3		0.73	%3		0.74	%		0.77	%		0.80	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		0.68	%3		0.68	%3		0.68	%		0.68	%		0.80	%4
Net investment income		2.43	%		3.16	%		4.22	%		4.35	%		4.07	%
Supplemental data:
Net assets, end of year (000's)	$	411,723		$	420,801		$	353,068		$	404,407		$	381,254
Portfolio turnover		664	%		974	%		512	%		387	%		255	%

¹  Calculated using the average shares method.

²  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

³  Includes interest expense representing less than 0.005%.

⁴  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements.
260

This page intentionally left blank.

261

PACE Select Advisors Trust

Financial highlights

PACE Strategic Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	14.56		$	13.09		$	13.75		$	13.25		$	13.26
Net investment income1		0.48			0.47			0.60			0.61			0.56
Net realized and unrealized gains		0.43			1.60			0.39			0.51			0.002
Net increase from operations		0.91			2.07			0.99			1.12			0.56
Dividends from net investment income		(0.51	)		(0.58	)		(0.73	)		(0.62	)		(0.55	)
Distributions from net realized gains		(0.41	)		(0.02	)		(0.92	)		—			—
Return of capital		—			—			—			—			(0.02	)
Total dividends, distributions and return of capital		(0.92	)		(0.60	)		(1.65	)		(0.62	)		(0.57	)
Net asset value, end of year	$	14.55		$	14.56		$	13.09		$	13.75		$	13.25
Total investment return3		6.54	%		16.09	%		8.31	%		8.42	%		4.32	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		1.09	%		1.09	%		1.10	%		1.13	%		1.15	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		1.06	%		1.06	%		1.07	%		1.06	%		1.15	%4
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, excluding interest expense		1.06	%		1.06	%		1.06	%		1.06	%		1.15	%4
Net investment income		3.38	%		3.36	%		4.75	%		4.40	%		4.17	%
Supplemental data:
Net assets, end of year (000's)	$	56,151		$	45,499		$	33,293		$	27,180		$	21,711
Portfolio turnover		444	%		239	%		178	%		236	%		188	%
	Class C
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	14.56		$	13.09		$	13.75		$	13.26		$	13.26
Net investment income1		0.42			0.40			0.54			0.54			0.50
Net realized and unrealized gains (losses)		0.43			1.60			0.39			0.50			0.002
Net increase from operations		0.85			2.00			0.93			1.04			0.50
Dividends from net investment income		(0.44	)		(0.51	)		(0.67	)		(0.55	)		(0.48	)
Distributions from net realized gains		(0.41	)		(0.02	)		(0.92	)		—			—
Return of capital		—			—			—			—			(0.02	)
Total dividends, distributions and return of capital		(0.85	)		(0.53	)		(1.59	)		(0.55	)		(0.50	)
Net asset value, end of year	$	14.56		$	14.56		$	13.09		$	13.75		$	13.26
Total investment return3		6.10	%		15.52	%		7.78	%		7.79	%		3.87	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		1.53	%		1.56	%		1.58	%		1.61	%		1.63	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		1.55	%4		1.56	%		1.57	%		1.56	%		1.63	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, excluding interest expense		1.55	%4		1.56	%		1.56	%		1.56	%		1.63	%
Net investment income		2.88	%		2.86	%		4.24	%		3.90	%		3.69	%
Supplemental data:
Net assets, end of year (000's)	$	12,856		$	12,289		$	8,797		$	5,592		$	5,531
Portfolio turnover		444	%		239	%		178	%		236	%		188	%

¹  Calculated using the average shares method.

²  Amount represents less than $0.005 per share.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁴  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

⁵  During the year ended July 31, 2007, UBS Global Asset Management (Americas) Inc. waived fees and/or reimbursed a portion of ordinary operating expenses. The ratios net and before fee waivers and/or expense reimbursements are the same since the fee waiver/reimbursement represents less than 0.01%.

262

	Class B
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	14.55		$	13.08		$	13.75		$	13.25		$	13.26
Net investment income1		0.38			0.36			0.49			0.48			0.44
Net realized and unrealized gains		0.44			1.60			0.40			0.53			0.01
Net increase from operations		0.82			1.96			0.89			1.01			0.45
Dividends from net investment income		(0.41	)		(0.47	)		(0.64	)		(0.51	)		(0.44	)
Distributions from net realized gains		(0.41	)		(0.02	)		(0.92	)		—			—
Return of capital		—			—			—			—			(0.02	)
Total dividends, distributions and return of capital		(0.82	)		(0.49	)		(1.56	)		(0.51	)		(0.46	)
Net asset value, end of year	$	14.55		$	14.55		$	13.08		$	13.75		$	13.25
Total investment return3		5.82	%		15.23	%		7.45	%		7.58	%		3.55	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		1.85	%		1.90	%		1.93	%		2.03	%		1.93	%5
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		1.81	%		1.81	%		1.82	%		1.81	%		1.93	%5
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, excluding interest expense		1.81	%		1.81	%		1.81	%		1.81	%		1.93	%5
Net investment income		2.63	%		2.63	%		4.02	%		3.59	%		3.36	%
Supplemental data:
Net assets, end of year (000's)	$	230		$	300		$	333		$	142		$	456
Portfolio turnover		444	%		239	%		178	%		236	%		188	%
	Class Y
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	14.54		$	13.08		$	13.74		$	13.25		$	13.26
Net investment income1		0.52			0.51			0.64			0.66			0.61
Net realized and unrealized gains (losses)		0.44			1.59			0.39			0.49			(0.01	)
Net increase from operations		0.96			2.10			1.03			1.15			0.60
Dividends from net investment income		(0.55	)		(0.62	)		(0.77	)		(0.66	)		(0.59	)
Distributions from net realized gains		(0.41	)		(0.02	)		(0.92	)		—			—
Return of capital		—			—			—			—			(0.02	)
Total dividends, distributions and return of capital		(0.96	)		(0.64	)		(1.69	)		(0.66	)		(0.61	)
Net asset value, end of year	$	14.54		$	14.54		$	13.08		$	13.74		$	13.25
Total investment return3		6.80	%		16.47	%		8.68	%		8.67	%		4.76	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		0.96	%		0.85	%		0.73	%		0.78	%		0.79	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		0.81	%		0.81	%		0.73	%		0.78	%		0.79	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, excluding interest expense		0.81	%		0.81	%		0.72	%		0.78	%		0.79	%
Net investment income		3.62	%		3.63	%		5.09	%		4.71	%		4.55	%
Supplemental data:
Net assets, end of year (000's)	$	2,810		$	3,058		$	3,186		$	3,045		$	1,208
Portfolio turnover		444	%		239	%		178	%		236	%		188	%

See accompanying notes to financial statements.
263

PACE Select Advisors Trust

Financial highlights

PACE Strategic Fixed Income Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	14.55		$	13.08		$	13.74		$	13.25		$	13.26
Net investment income1		0.52			0.50			0.64			0.64			0.59
Net realized and unrealized gains		0.44			1.60			0.38			0.50			0.002
Net increase from operations		0.96			2.10			1.02			1.14			0.59
Dividends from net investment income		(0.55	)		(0.61	)		(0.76	)		(0.65	)		(0.58	)
Distributions from net realized gains		(0.41	)		(0.02	)		(0.92	)		—			—
Return of capital		—			—			—			—			(0.02	)
Total dividends, distributions and return of capital		(0.96	)		(0.63	)		(1.68	)		(0.65	)		(0.60	)
Net asset value, end of year	$	14.55		$	14.55		$	13.08		$	13.74		$	13.25
Total investment return3		6.88	%		16.39	%		8.58	%		8.62	%		4.63	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		0.84	%		0.87	%		0.87	%		0.89	%		0.93	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, including interest expense		0.81	%		0.81	%		0.82	%		0.81	%		0.93	%4
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, excluding interest expense		0.81	%		0.81	%		0.81	%		0.81	%		0.93	%4
Net investment income		3.63	%		3.62	%		5.00	%		4.65	%		4.40	%
Supplemental data:
Net assets, end of year (000's)	$	746,653		$	691,186		$	584,235		$	785,267		$	679,623
Portfolio turnover		444	%		239	%		178	%		236	%		188	%

¹  Calculated using the average shares method.

²  Amount represents less than $0.005 per share.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁴  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements.
264

This page intentionally left blank.

265

PACE Select Advisors Trust

Financial highlights

PACE Municipal Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.94		$	12.45		$	12.15		$	12.22		$	12.27
Net investment income1		0.38			0.39			0.41			0.41			0.40
Net realized and unrealized gains (losses)		0.06			0.49			0.30			(0.07	)		(0.05	)
Net increase from operations		0.44			0.88			0.71			0.34			0.35
Dividends from net investment income		(0.38	)		(0.39	)		(0.41	)		(0.41	)		(0.40	)
Net asset value, end of year	$	13.00		$	12.94		$	12.45		$	12.15		$	12.22
Total investment return2		3.49	%		7.18	%		5.97	%		2.81	%		2.84	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.94	%		0.95	%		0.96	%		1.01	%		1.02	%
Expenses after fee waivers and/or expense reimbursements by manager		0.93	%		0.93	%		0.93	%		0.93	%		1.01	%
Net investment income		2.96	%		3.08	%		3.35	%		3.34	%		3.21	%
Supplemental data:
Net assets, end of year (000's)	$	73,528		$	83,501		$	88,167		$	87,036		$	90,219
Portfolio turnover		34	%		10	%		25	%		16	%		48	%
	Class C
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.94		$	12.45		$	12.16		$	12.22		$	12.27
Net investment income1		0.32			0.33			0.35			0.35			0.33
Net realized and unrealized gains (losses)		0.06			0.49			0.29			(0.06	)		(0.05	)
Net increase from operations		0.38			0.82			0.64			0.29			0.28
Dividends from net investment income		(0.32	)		(0.33	)		(0.35	)		(0.35	)		(0.33	)
Net asset value, end of year	$	13.00		$	12.94		$	12.45		$	12.16		$	12.22
Total investment return2		2.97	%		6.65	%		5.36	%		2.38	%		2.32	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.45	%		1.46	%		1.47	%		1.52	%		1.53	%
Expenses after fee waivers and/or expense reimbursements by manager		1.43	%		1.43	%		1.43	%		1.43	%		1.51	%
Net investment income		2.46	%		2.58	%		2.85	%		2.84	%		2.71	%
Supplemental data:
Net assets, end of year (000's)	$	13,943		$	15,767		$	15,474		$	13,905		$	14,777
Portfolio turnover		34	%		10	%		25	%		16	%		48	%

¹  Calculated using the average shares method.

²  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares.

266

	Class B
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.95		$	12.46		$	12.16		$	12.23		$	12.27
Net investment income1		0.28			0.29			0.31			0.31			0.30
Net realized and unrealized gains (losses)		0.06			0.50			0.31			(0.06	)		(0.04	)
Net increase from operations		0.34			0.79			0.62			0.25			0.26
Dividends from net investment income		(0.28	)		(0.30	)		(0.32	)		(0.32	)		(0.30	)
Net asset value, end of year	$	13.01		$	12.95		$	12.46		$	12.16		$	12.23
Total investment return2		2.71	%		6.37	%		5.17	%		2.05	%		2.10	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.75	%		1.77	%		1.74	%		1.89	%		1.78	%
Expenses after fee waivers and/or expense reimbursements by manager		1.68	%		1.68	%		1.68	%		1.68	%		1.76	%
Net investment income		2.21	%		2.33	%		2.63	%		2.57	%		2.44	%
Supplemental data:
Net assets, end of year (000's)	$	47		$	62		$	103		$	196		$	259
Portfolio turnover		34	%		10	%		25	%		16	%		48	%
	Class Y
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.95		$	12.45		$	12.16		$	12.23		$	12.28
Net investment income1		0.41			0.42			0.44			0.44			0.43
Net realized and unrealized gains (losses)		0.05			0.50			0.29			(0.07	)		(0.05	)
Net increase from operations		0.46			0.92			0.73			0.37			0.38
Dividends from net investment income		(0.41	)		(0.42	)		(0.44	)		(0.44	)		(0.43	)
Net asset value, end of year	$	13.00		$	12.95		$	12.45		$	12.16		$	12.23
Total investment return2		3.67	%		7.45	%		6.23	%		3.05	%		3.09	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.74	%		0.74	%		0.76	%		0.96	%		0.83	%
Expenses after fee waivers and/or expense reimbursements by manager		0.68	%		0.68	%		0.68	%		0.68	%		0.76	%
Net investment income		3.21	%		3.33	%		3.60	%		3.59	%		3.46	%
Supplemental data:
Net assets, end of year (000's)	$	118		$	123		$	145		$	136		$	137
Portfolio turnover		34	%		10	%		25	%		16	%		48	%

See accompanying notes to financial statements.
267

PACE Select Advisors Trust

Financial highlights

PACE Municipal Fixed Income Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	12.95		$	12.45		$	12.16		$	12.22		$	12.27
Net investment income1		0.41			0.42			0.44			0.44			0.43
Net realized and unrealized gains (losses)		0.05			0.50			0.29			(0.06	)		(0.05	)
Net increase from operations		0.46			0.92			0.73			0.38			0.38
Dividends from net investment income		(0.41	)		(0.42	)		(0.44	)		(0.44	)		(0.43	)
Net asset value, end of year	$	13.00		$	12.95		$	12.45		$	12.16		$	12.22
Total investment return2		3.67	%		7.54	%		6.14	%		3.14	%		3.10	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.72	%		0.74	%		0.74	%		0.79	%		0.81	%
Expenses after fee waivers and/or expense reimbursements by manager		0.68	%		0.68	%		0.68	%		0.68	%		0.76	%
Net investment income		3.21	%		3.33	%		3.61	%		3.59	%		3.47	%
Supplemental data:
Net assets, end of year (000's)	$	229,062		$	229,028		$	187,814		$	242,033		$	194,370
Portfolio turnover		34	%		10	%		25	%		16	%		48	%

¹  Calculated using the average shares method.

²  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder could pay on Portfolio distributions or the redemption of Portfolio shares.

See accompanying notes to financial statements.
268

This page intentionally left blank.

269

PACE Select Advisors Trust

Financial highlights

PACE International Fixed Income Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	11.43		$	11.64		$	11.84		$	11.38		$	11.20
Net investment income2		0.26			0.27			0.30			0.25			0.25
Net realized and unrealized gains (losses)		1.13			0.24			(0.06	)		1.14			0.23
Net increase from operations		1.39			0.51			0.24			1.39			0.48
Dividends from net investment income		(0.30	)		(0.70	)		(0.44	)		(0.93	)		(0.30	)
Return of capital		—			(0.02	)		—			—			—
Total dividends and return of capital		(0.30	)		(0.72	)		(0.44	)		(0.93	)		(0.30	)
Net asset value, end of year	$	12.52		$	11.43		$	11.64		$	11.84		$	11.38
Total investment return3		12.36	%		4.32	%		2.35	%		12.76	%		4.36	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.26	%		1.30	%		1.32	%		1.35	%		1.37	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.22	%4		1.25	%4		1.25	%		1.25	%		1.37	%
Net investment income		2.16	%		2.30	%		2.83	%		2.07	%		2.23	%
Supplemental data:
Net assets, end of year (000's)	$	98,636		$	98,039		$	103,708		$	118,784		$	111,910
Portfolio turnover		66	%		67	%		37	%		65	%		111	%
	Class C
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	11.43		$	11.64		$	11.85		$	11.38		$	11.20
Net investment income2		0.20			0.21			0.25			0.19			0.20
Net realized and unrealized gains (losses)		1.14			0.24			(0.08	)		1.15			0.23
Net increase from operations		1.34			0.45			0.17			1.34			0.43
Dividends from net investment income		(0.25	)		(0.64	)		(0.38	)		(0.87	)		(0.25	)
Return of capital		—			(0.02	)		—			—			—
Total dividends and return of capital		(0.25	)		(0.66	)		(0.38	)		(0.87	)		(0.25	)
Net asset value, end of year	$	12.52		$	11.43		$	11.64		$	11.85		$	11.38
Total investment return3		11.83	%		3.81	%		1.85	%		12.20	%		3.86	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.74	%		1.77	%		1.80	%		1.84	%		1.85	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.69	%		1.72	%4		1.75	%4		1.75	%		1.85	%
Net investment income		1.69	%		1.83	%		2.32	%		1.57	%		1.74	%
Supplemental data:
Net assets, end of year (000's)	$	8,034		$	7,154		$	7,234		$	7,161		$	6,347
Portfolio turnover		66	%		67	%		37	%		65	%		111	%

¹  Effective August 23, 2007, Rogge Global Partners plc ("Rogge") assumed the role of sole manager of the Portfolio. Prior to August 23, 2007, the investment advisory function for this Portfolio was performed by Rogge and Fischer Francis Trees & Watts, Inc., who were each responsible for a portion of the Portfolio.

²  Calculated using the average shares method.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁴  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

270

	Class B
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	11.46		$	11.68		$	11.87		$	11.40		$	11.22
Net investment income2		0.16			0.18			0.22			0.15			0.16
Net realized and unrealized gains (losses)		1.15			0.23			(0.06	)		1.16			0.24
Net increase from operations		1.31			0.41			0.16			1.31			0.40
Dividends from net investment income		(0.21	)		(0.61	)		(0.35	)		(0.84	)		(0.22	)
Return of capital		—			(0.02	)		—			—			—
Total dividends and return of capital		(0.21	)		(0.63	)		(0.35	)		(0.84	)		(0.22	)
Net asset value, end of year	$	12.56		$	11.46		$	11.68		$	11.87		$	11.40
Total investment return3		11.54	%		3.51	%		1.64	%		11.89	%		3.57	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		2.06	%		2.09	%		2.10	%		2.15	%		2.13	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		2.00	%		2.00	%		2.00	%		2.00	%		2.13	%
Net investment income		1.38	%		1.55	%		2.11	%		1.31	%		1.47	%
Supplemental data:
Net assets, end of year (000's)	$	151		$	166		$	191		$	505		$	723
Portfolio turnover		66	%		67	%		37	%		65	%		111	%
	Class Y
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	11.40		$	11.63		$	11.83		$	11.36		$	11.19
Net investment income2		0.28			0.30			0.34			0.29			0.29
Net realized and unrealized gains (losses)		1.14			0.23			(0.07	)		1.15			0.22
Net increase from operations		1.42			0.53			0.27			1.44			0.51
Dividends from net investment income		(0.33	)		(0.74	)		(0.47	)		(0.97	)		(0.34	)
Return of capital		—			(0.02	)		—			—			—
Total dividends and return of capital		(0.33	)		(0.76	)		(0.47	)		(0.97	)		(0.34	)
Net asset value, end of year	$	12.49		$	11.40		$	11.63		$	11.83		$	11.36
Total investment return3		12.54	%		4.68	%		2.71	%		13.16	%		4.67	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.11	%		1.01	%		0.94	%		0.99	%		1.03	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.00	%		0.96	%		0.89	%		0.93	%		1.03	%4
Net investment income		2.38	%		2.57	%		3.19	%		2.40	%		2.58	%
Supplemental data:
Net assets, end of year (000's)	$	5,216		$	5,825		$	7,773		$	10,253		$	7,113
Portfolio turnover		66	%		67	%		37	%		65	%		111	%

See accompanying notes to financial statements.
271

PACE Select Advisors Trust

Financial highlights

PACE International Fixed Income Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	11.43		$	11.64		$	11.84		$	11.38		$	11.20
Net investment income2		0.28			0.30			0.33			0.28			0.28
Net realized and unrealized gains (losses)		1.14			0.23			(0.07	)		1.14			0.23
Net increase from operations		1.42			0.53			0.26			1.42			0.51
Dividends from net investment income		(0.33	)		(0.72	)		(0.46	)		(0.96	)		(0.33	)
Return of capital		—			(0.02	)		—			—			—
Total dividends and return of capital		(0.33	)		(0.74	)		(0.46	)		(0.96	)		(0.33	)
Net asset value, end of year	$	12.52		$	11.43		$	11.64		$	11.84		$	11.38
Total investment return3		12.60	%		4.65	%		2.60	%		12.95	%		4.62	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.11	%		1.15	%		1.17	%		1.18	%		1.22	%
Expenses after fee waivers and/or expense reimbursements by manager		1.00	%		1.00	%		1.00	%		1.00	%		1.13	%
Net investment income		2.38	%		2.56	%		3.09	%		2.32	%		2.49	%
Supplemental data:
Net assets, end of year (000's)	$	465,625		$	404,680		$	364,616		$	534,097		$	440,787
Portfolio turnover		66	%		67	%		37	%		65	%		111	%

¹  Effective August 23, 2007, Rogge Global Partners plc ("Rogge") assumed the role of sole manager of the Portfolio. Prior to August 23, 2007, the investment advisory function for this Portfolio was performed by Rogge and Fischer Francis Trees & Watts, Inc., who were each responsible for a portion of the Portfolio.

²  Calculated using the average shares method.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

See accompanying notes to financial statements.
272

This page intentionally left blank.

273

PACE Select Advisors Trust

Financial highlights

PACE High Yield Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

	Class A															Class C
	Years ended July 31,															Years ended July 31,						Period ended July 31,
	2011			2010			2009			2008			2007			2011			2010			20091
Net asset value, beginning of period	$	10.17		$	8.94		$	9.04		$	9.60		$	9.81		$	10.16		$	8.93		$	7.49
Net investment income2		0.75			0.82			0.66			0.60			0.60			0.71			0.77			0.29
Net realized and unrealized gains (losses)		0.25			1.21			0.02			(0.54	)		(0.23	)		0.24			1.21			1.54
Net increase from operations		1.00			2.03			0.68			0.06			0.37			0.95			1.98			1.83
Dividends from net investment income		(0.73	)		(0.74	)		(0.78	)		(0.59	)		(0.58	)		(0.68	)		(0.69	)		(0.39	)
Distributions from net realized gains		(0.05	)		(0.06	)		—			(0.01	)		—			(0.05	)		(0.06	)		—
Return of capital		—			—			—			(0.02	)		—			—			—			—
Total dividends, distributions and return of capital		(0.78	)		(0.80	)		(0.78	)		(0.62	)		(0.58	)		(0.73	)		(0.75	)		(0.39	)
Net asset value, end of period	$	10.39		$	10.17		$	8.94		$	9.04		$	9.60		$	10.38		$	10.16		$	8.93
Total investment return3		10.00	%		23.35	%		9.49	%		0.58	%		3.66	%		9.50	%		22.81	%		25.40	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.31	%		1.35	%		1.46	%		1.59	%		1.96	%		1.77	%		1.81	%		1.92	%5
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.33	%4		1.35	%4		1.35	%		1.35	%		1.35	%		1.77	%		1.81	%4		1.85	%5
Net investment income		7.11	%		8.36	%		8.46	%		6.43	%		5.96	%		6.69	%		7.91	%		6.96	%5
Supplemental data:
Net assets, end of period (000's)	$	25,550		$	13,158		$	7,538		$	2,181		$	741		$	3,791		$	2,834		$	1,819
Portfolio turnover		36	%		30	%		49	%		25	%		26	%		36	%		30	%		49	%
	Class Y									Class P
	Years ended July 31,						Period ended July 31,			Years ended July 31,
	2011			2010			20096			2011			2010			2009			2008			2007
Net asset value, beginning of period	$	10.20		$	8.95		$	6.83		$	10.18		$	8.95		$	9.04		$	9.61		$	9.81
Net investment income2		0.74			0.85			0.42			0.77			0.85			0.69			0.63			0.62
Net realized and unrealized gains (losses)		0.28			1.22			2.11			0.26			1.20			0.02			(0.56	)		(0.22	)
Net increase from operations		1.02			2.07			2.53			1.03			2.05			0.71			0.07			0.40
Dividends from net investment income		(0.75	)		(0.76	)		(0.41	)		(0.75	)		(0.76	)		(0.80	)		(0.61	)		(0.60	)
Distributions from net realized gains		(0.05	)		(0.06	)		—			(0.05	)		(0.06	)		—			(0.01	)		—
Return of capital		—			—			—			—			—			—			(0.02	)		—
Total dividends, distributions and return of capital		(0.80	)		(0.82	)		(0.41	)		(0.80	)		(0.82	)		(0.80	)		(0.64	)		(0.60	)
Net asset value, end of period	$	10.42		$	10.20		$	8.95		$	10.41		$	10.18		$	8.95		$	9.04		$	9.61
Total investment return3		10.24	%		23.82	%		38.23	%		10.30	%		23.60	%		9.87	%		0.71	%		3.96	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.03	%		1.10	%		1.37	%5		1.15	%		1.19	%		1.34	%		1.31	%		1.72	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.05	%4		1.10	%		1.10	%5		1.10	%		1.10	%		1.10	%		1.10	%		1.10	%
Net investment income		7.86	%		8.61	%		9.13	%5		7.36	%		8.60	%		8.80	%		6.68	%		6.24	%
Supplemental data:
Net assets, end of period (000's)	$	385		$	9		$	7		$	248,197		$	209,650		$	147,029		$	142,985		$	87,171
Portfolio turnover		36	%		30	%		49	%		36	%		30	%		49	%		25	%		26	%

¹  For the period January 21, 2009 (commencement of issuance) through July 31, 2009.

²  Calculated using the average shares method.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend 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, redemption fees 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁴  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

⁵  Annualized.

⁶  For the period December 26, 2008 (recommencement of issuance) through July 31, 2009.

274

See accompanying notes to financial statements.
275

PACE Select Advisors Trust

Financial highlights

PACE Large Co Value Equity Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	14.76		$	13.16		$	16.67		$	22.41		$	22.35
Net investment income (loss)2		0.16			0.12			0.19			0.25			0.23
Net realized and unrealized gains (losses)		2.31			1.62			(3.44	)		(3.34	)		2.80
Net increase (decrease) from operations		2.47			1.74			(3.25	)		(3.09	)		3.03
Dividends from net investment income		(0.13	)		(0.14	)		(0.26	)		(0.11	)		(0.23	)
Distributions from net realized gains		—			—			—			(2.54	)		(2.74	)
Total dividends and distributions		(0.13	)		(0.14	)		(0.26	)		(2.65	)		(2.97	)
Net asset value, end of year	$	17.10		$	14.76		$	13.16		$	16.67		$	22.41
Total investment return4		16.79	%		13.20	%		(19.27	)%		(15.56	)%		13.94	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.17	%		1.20	%		1.24	%		1.22	%		1.21	%
Expenses after fee waivers and/or expense reimbursements by manager		1.17	%		1.20	%		1.24	%		1.09	%		1.08	%
Net investment income (loss)		0.94	%		0.81	%		1.52	%		1.26	%		0.99	%
Supplemental data:
Net assets, end of year (000's)	$	147,471		$	143,284		$	146,510		$	217,986		$	291,942
Portfolio turnover		49	%		61	%		87	%		161	%		105	%
	Class C
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	14.73		$	13.15		$	16.59		$	22.36		$	22.29
Net investment income (loss)2		0.02			(0.00	)3		0.09			0.09			0.05
Net realized and unrealized gains (losses)		2.32			1.61			(3.41	)		(3.32	)		2.80
Net increase (decrease) from operations		2.34			1.61			(3.32	)		(3.23	)		2.85
Dividends from net investment income		—			(0.03	)		(0.12	)		—			(0.04	)
Distributions from net realized gains		—			—			—			(2.54	)		(2.74	)
Total dividends and distributions		—			(0.03	)		(0.12	)		(2.54	)		(2.78	)
Net asset value, end of year	$	17.07		$	14.73		$	13.15		$	16.59		$	22.36
Total investment return4		15.81	%		12.31	%		(19.89	)%		(16.24	)%		13.11	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.96	%		2.02	%		2.05	%		2.01	%		2.00	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.98	%5		2.02	%5		2.02	%		1.88	%		1.86	%
Net investment income (loss)		0.13	%		(0.01	)%		0.74	%		0.47	%		0.21	%
Supplemental data:
Net assets, end of year (000's)	$	14,807		$	15,272		$	16,560		$	24,765		$	35,110
Portfolio turnover		49	%		61	%		87	%		161	%		105	%

¹  A portion of the investment advisory function for this Portfolio was transferred from SSgA Funds Management, Inc. to Pzena Investment Management, LLC on May 27, 2008. Institutional Capital LLC and Westwood Management Corp. continue to provide a portion of the investment advisory function.

²  Calculated using the average shares method.

³  Amount represents less than $0.005 per share.

⁴  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁵  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

276

	Class B
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	14.82		$	13.20		$	16.62		$	22.43		$	22.34
Net investment income (loss)2		0.01			(0.00	)3		0.09			0.06			0.04
Net realized and unrealized gains (losses)		2.33			1.62			(3.41	)		(3.33	)		2.79
Net increase (decrease) from operations		2.34			1.62			(3.32	)		(3.27	)		2.83
Dividends from net investment income		—			—			(0.10	)		—			—
Distributions from net realized gains		—			—			—			(2.54	)		(2.74	)
Total dividends and distributions		—			—			(0.10	)		(2.54	)		(2.74	)
Net asset value, end of year	$	17.16		$	14.82		$	13.20		$	16.62		$	22.43
Total investment return4		15.78	%		12.35	%		(19.92	)%		(16.38	)%		13.00	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		2.34	%		2.33	%		2.30	%		2.16	%		2.11	%
Expenses after fee waivers and/or expense reimbursements by manager		2.02	%		2.02	%		2.02	%		2.02	%		1.98	%
Net investment income (loss)		0.07	%		(0.02	)%		0.76	%		0.29	%		0.18	%
Supplemental data:
Net assets, end of year (000's)	$	86		$	165		$	405		$	765		$	1,872
Portfolio turnover		49	%		61	%		87	%		161	%		105	%
	Class Y
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	14.81		$	13.21		$	16.75		$	22.51		$	22.45
Net investment income (loss)2		0.20			0.16			0.23			0.32			0.30
Net realized and unrealized gains (losses)		2.31			1.63			(3.45	)		(3.35	)		2.82
Net increase (decrease) from operations		2.51			1.79			(3.22	)		(3.03	)		3.12
Dividends from net investment income		(0.17	)		(0.19	)		(0.32	)		(0.19	)		(0.32	)
Distributions from net realized gains		—			—			—			(2.54	)		(2.74	)
Total dividends and distributions		(0.17	)		(0.19	)		(0.32	)		(2.73	)		(3.06	)
Net asset value, end of year	$	17.15		$	14.81		$	13.21		$	16.75		$	22.51
Total investment return4		17.00	%		13.55	%		(18.93	)%		(15.30	)%		14.36	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		0.94	%		0.89	%		0.86	%		0.89	%		0.88	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		0.94	%		0.89	%		0.86	%		0.76	%		0.74	%
Net investment income (loss)		1.17	%		1.11	%		1.90	%		1.59	%		1.32	%
Supplemental data:
Net assets, end of year (000's)	$	16,984		$	17,345		$	23,834		$	33,809		$	45,177
Portfolio turnover		49	%		61	%		87	%		161	%		105	%

See accompanying notes to financial statements.
277

PACE Select Advisors Trust

Financial highlights

PACE Large Co Value Equity Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	2011			2010			2009			20081			2007
Net asset value, beginning of year	$	14.76		$	13.16		$	16.69		$	22.44		$	22.38
Net investment income2		0.20			0.16			0.22			0.30			0.28
Net realized and unrealized gains (losses)		2.31			1.61			(3.44	)		(3.34	)		2.82
Net increase (decrease) from operations		2.51			1.77			(3.22	)		(3.04	)		3.10
Dividends from net investment income		(0.17	)		(0.17	)		(0.31	)		(0.17	)		(0.30	)
Distributions from net realized gains		—			—			—			(2.54	)		(2.74	)
Total dividends and distributions		(0.17	)		(0.17	)		(0.31	)		(2.71	)		(3.04	)
Net asset value, end of year	$	17.10		$	14.76		$	13.16		$	16.69		$	22.44
Total investment return3		17.07	%		13.48	%		(19.01	)%		(15.39	)%		14.26	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.93	%		0.95	%		0.99	%		0.98	%		0.96	%
Expenses after fee waivers and/or expense reimbursements by manager		0.93	%		0.95	%		0.99	%		0.85	%		0.83	%
Net investment income		1.18	%		1.05	%		1.76	%		1.51	%		1.23	%
Supplemental data:
Net assets, end of year (000's)	$	1,020,412		$	899,926		$	819,420		$	1,159,915		$	1,306,425
Portfolio turnover		49	%		61	%		87	%		161	%		105	%

¹  A portion of the investment advisory function for this Portfolio was transferred from SSgA Funds Management, Inc. to Pzena Investment Management, LLC on May 27, 2008. Institutional Capital LLC and Westwood Management Corp. continue to provide a portion of the investment advisory function.

²  Calculated using the average shares method.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

See accompanying notes to financial statements.
278

This page intentionally left blank.

279

PACE Select Advisors Trust

Financial highlights

PACE Large Co Growth Equity Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	20111			20102			2009			20083			20074
Net asset value, beginning of year	$	14.95		$	13.36		$	16.67		$	18.18		$	15.75
Net investment income (loss)5		(0.00	)6		(0.01	)		0.03			0.006			(0.02	)
Net realized and unrealized gains (losses)		3.67			1.63			(3.27	)		(1.03	)		2.45
Net increase (decrease) from operations		3.67			1.62			(3.24	)		(1.03	)		2.43
Dividends from net investment income		—			(0.03	)		—			—			—
Distributions from net realized gains		—			—			(0.07	)		(0.48	)		—
Total dividends and distributions		—			(0.03	)		(0.07	)		(0.48	)		—
Net asset value, end of year	$	18.62		$	14.95		$	13.36		$	16.67		$	18.18
Total investment return7		24.55	%		12.12	%		(19.39	)%		(5.94	)%		15.43	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.23	%		1.26	%		1.30	%		1.25	%		1.25	%
Expenses after fee waivers and/or expense reimbursements by manager		1.22	%		1.23	%		1.26	%		1.20	%		1.20	%
Net investment income (loss)		(0.02	)%		(0.08	)%		0.21	%		0.00	%8		(0.10	)%
Supplemental data:
Net assets, end of year (000's)	$	64,315		$	55,978		$	56,038		$	77,628		$	80,334
Portfolio turnover		84	%		91	%		100	%		120	%		95	%
	Class C
	Years ended July 31,
	20111			20102			2009			20083			20074
Net asset value, beginning of year	$	13.84		$	12.45		$	15.66		$	17.26		$	15.08
Net investment income (loss)5		(0.14	)		(0.12	)		(0.07	)		(0.14	)		(0.16	)
Net realized and unrealized gains (losses)		3.40			1.51			(3.07	)		(0.98	)		2.34
Net increase (decrease) from operations		3.26			1.39			(3.14	)		(1.12	)		2.18
Dividends from net investment income		—			—			—			—			—
Distributions from net realized gains		—			—			(0.07	)		(0.48	)		—
Total dividends and distributions		—			—			(0.07	)		(0.48	)		—
Net asset value, end of year	$	17.10		$	13.84		$	12.45		$	15.66		$	17.26
Total investment return7		23.47	%		11.24	%		(20.00	)%		(6.80	)%		14.46	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		2.07	%		2.13	%		2.20	%		2.09	%		2.09	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		2.05	%		2.05	%		2.05	%		2.04	%9		2.05	%9
Net investment income (loss)		(0.84	)%		(0.90	)%		(0.57	)%		(0.84	)%		(0.95	)%
Supplemental data:
Net assets, end of year (000's)	$	4,209		$	3,956		$	4,170		$	6,120		$	7,488
Portfolio turnover		84	%		91	%		100	%		120	%		95	%

¹  A portion of the investment advisory function for this Portfolio was transferred from SSgA Funds Management, Inc. to Roxbury Capital Management, LLC and Delaware Management Company at the close of business on November 29, 2010. Marsico Capital Management, LLC and Wellington Management Company, LLP also continue to provide a portion of the investment advisory function.

²  A portion of the investment advisory function for this Portfolio was transferred to Roxbury Capital Management, LLC on May 25, 2010.

³  A portion of the investment advisory function for this Portfolio was transferred to Delaware Management Company on December 5, 2007.

⁴  A portion of the investment advisory function for this Portfolio was transferred from GE Asset Management, Inc. to Wellington Management Company, LLP on June 1, 2007.

⁵  Calculated using the average shares method.

⁶  Amount represents less than $0.005 per share.

280

	Class B
	Years ended July 31,
	20111			20102			2009			20083			20074
Net asset value, beginning of year	$	13.80		$	12.41		$	15.62		$	17.22		$	15.05
Net investment income (loss)5		(0.13	)		(0.11	)		(0.07	)		(0.14	)		(0.15	)
Net realized and unrealized gains (losses)		3.39			1.50			(3.07	)		(0.98	)		2.32
Net increase (decrease) from operations		3.26			1.39			(3.14	)		(1.12	)		2.17
Dividends from net investment income		—			—			—			—			—
Distributions from net realized gains		—			—			(0.07	)		(0.48	)		—
Total dividends and distributions		—			—			(0.07	)		(0.48	)		—
Net asset value, end of year	$	17.06		$	13.80		$	12.41		$	15.62		$	17.22
Total investment return7		23.53	%		11.28	%		(20.05	)%		(6.81	)%		14.42	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		2.34	%		2.37	%		2.32	%		2.24	%		2.24	%
Expenses after fee waivers and/or expense reimbursements by manager		2.05	%		2.05	%		2.05	%		2.05	%		2.05	%
Net investment income (loss)		(0.83	)%		(0.87	)%		(0.58	)%		(0.85	)%		(0.90	)%
Supplemental data:
Net assets, end of year (000's)	$	69		$	86		$	199		$	371		$	643
Portfolio turnover		84	%		91	%		100	%		120	%		95	%
	Class Y
	Years ended July 31,
	20111			20102			2009			20083			20074
Net asset value, beginning of year	$	15.29		$	13.67		$	17.03		$	18.54		$	16.05
Net investment income (loss)5		0.04			0.04			0.08			0.07			0.05
Net realized and unrealized gains (losses)		3.75			1.67			(3.34	)		(1.05	)		2.49
Net increase (decrease) from operations		3.79			1.71			(3.26	)		(0.98	)		2.54
Dividends from net investment income		(0.03	)		(0.09	)		(0.03	)		(0.05	)		(0.05	)
Distributions from net realized gains		—			—			(0.07	)		(0.48	)		—
Total dividends and distributions		(0.03	)		(0.09	)		(0.10	)		(0.53	)		(0.05	)
Net asset value, end of year	$	19.05		$	15.29		$	13.67		$	17.03		$	18.54
Total investment return7		24.83	%		12.49	%		(19.04	)%		(5.64	)%		15.90	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		0.99	%		0.94	%		0.88	%		0.87	%		0.86	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		0.98	%		0.91	%		0.84	%		0.82	%		0.82	%
Net investment income (loss)		0.22	%		0.25	%		0.63	%		0.38	%		0.27	%
Supplemental data:
Net assets, end of year (000's)	$	13,858		$	12,619		$	16,885		$	23,263		$	26,125
Portfolio turnover		84	%		91	%		100	%		120	%		95	%

⁷  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁸  Amount represents less than 0.005%.

⁹  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements.
281

PACE Select Advisors Trust

Financial highlights

PACE Large Co Growth Equity Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	20111			20102			2009			20083			20074
Net asset value, beginning of year	$	15.21		$	13.59		$	16.94		$	18.45		$	15.97
Net investment income5		0.04			0.03			0.06			0.05			0.03
Net realized and unrealized gains (losses)		3.75			1.66			(3.32	)		(1.04	)		2.49
Net increase (decrease) from operations		3.79			1.69			(3.26	)		(0.99	)		2.52
Dividends from net investment income		(0.03	)		(0.07	)		(0.02	)		(0.04	)		(0.04	)
Distributions from net realized gains		—			—			(0.07	)		(0.48	)		—
Total dividends and distributions		(0.03	)		(0.07	)		(0.09	)		(0.52	)		(0.04	)
Net asset value, end of year	$	18.97		$	15.21		$	13.59		$	16.94		$	18.45
Total investment return6		24.92	%		12.42	%		(19.19	)%		(5.68	)%		15.76	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.97	%		0.99	%		1.01	%		0.96	%		0.95	%
Expenses after fee waivers and/or expense reimbursements by manager		0.96	%		0.96	%		0.97	%		0.91	%		0.91	%
Net investment income		0.24	%		0.19	%		0.50	%		0.29	%		0.17	%
Supplemental data:
Net assets, end of year (000's)	$	1,068,052		$	895,889		$	822,192		$	1,230,206		$	1,231,468
Portfolio turnover		84	%		91	%		100	%		120	%		95	%

¹  A portion of the investment advisory function for this Portfolio was transferred from SSgA Funds Management, Inc. to Roxbury Capital Management, LLC and Delaware Management Company at the close of business on November 29, 2010. Marsico Capital Management, LLC and Wellington Management Company, LLP also continue to provide a portion of the investment advisory function.

²  A portion of the investment advisory function for this Portfolio was transferred to Roxbury Capital Management, LLC on May 25, 2010.

³  A portion of the investment advisory function for this Portfolio was transferred to Delaware Management Company on December 5, 2007.

⁴  A portion of the investment advisory function for this Portfolio was transferred from GE Asset Management, Inc. to Wellington Management Company, LLP on June 1, 2007.

⁵  Calculated using the average shares method.

⁶  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

See accompanying notes to financial statements.
282

This page intentionally left blank.

283

PACE Select Advisors Trust

Financial highlights

PACE Small/Medium Co Value Equity Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	2011			2010			20091			2008			2007
Net asset value, beginning of year	$	14.28		$	11.99		$	14.27		$	19.29		$	17.07
Net investment income (loss)2		(0.03	)		(0.01	)		0.05			0.06			0.01
Net realized and unrealized gains (losses)		2.80			2.31			(2.25	)		(3.01	)		2.97
Net increase (decrease) from operations		2.77			2.30			(2.20	)		(2.95	)		2.98
Dividends from net investment income		—			(0.01	)		(0.08	)		(0.00	)3		—
Distributions from net realized gains		—			—			(0.00	)3		(2.07	)		(0.76	)
Total dividends and distributions		—			(0.01	)		(0.08	)		(2.07	)		(0.76	)
Net asset value, end of year	$	17.05		$	14.28		$	11.99		$	14.27		$	19.29
Total investment return4		19.40	%		19.17	%		(15.29	)%		(16.25	)%		17.70	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.29	%		1.35	%		1.39	%		1.29	%		1.27	%
Expenses after fee waivers and/or expense reimbursements by manager		1.29	%		1.35	%		1.38	%		1.29	%		1.27	%
Net investment income (loss)		(0.18	)%		(0.05	)%		0.44	%		0.34	%		0.05	%
Supplemental data:
Net assets, end of year (000's)	$	32,166		$	27,920		$	24,661		$	37,185		$	47,845
Portfolio turnover		70	%		81	%		111	%		43	%		59	%
	Class C
	Years ended July 31,
	2011			2010			20091			2008			2007
Net asset value, beginning of year	$	13.10		$	11.07		$	13.18		$	18.12		$	16.19
Net investment income (loss)2		(0.14	)		(0.10	)		(0.03	)		(0.06	)		(0.13	)
Net realized and unrealized gains (losses)		2.57			2.13			(2.08	)		(2.81	)		2.82
Net increase (decrease) from operations		2.43			2.03			(2.11	)		(2.87	)		2.69
Dividends from net investment income		—			—			—			—			—
Distributions from net realized gains		—			—			(0.00	)3		(2.07	)		(0.76	)
Total dividends and distributions		—			—			(0.00	)3		(2.07	)		(0.76	)
Net asset value, end of year	$	15.53		$	13.10		$	11.07		$	13.18		$	18.12
Total investment return4		18.55	%		18.34	%		(15.98	)%		(16.93	)%		16.85	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		2.05	%		2.11	%		2.15	%		2.06	%		2.04	%
Expenses after fee waivers and/or expense reimbursements by manager		2.05	%		2.11	%		2.14	%		2.06	%		2.04	%
Net investment income (loss)		(0.93	)%		(0.80	)%		(0.32	)%		(0.42	)%		(0.71	)%
Supplemental data:
Net assets, end of year (000's)	$	5,109		$	5,178		$	5,603		$	8,400		$	11,964
Portfolio turnover		70	%		81	%		111	%		43	%		59	%

¹  A portion of the investment advisory function for this Portfolio was transferred to Buckhead Capital Management, LLC and Systematic Financial Management, L.P. on May 28, 2009. Ariel Investments, LLC and Opus Capital Group, LLC ceased serving as investment advisors for the Portfolio effective May 29, 2009. Metropolitan West Capital Management, LLC continues to provide a portion of the investment advisory function.

²  Calculated using the average shares method.

³  Amount represents less than $0.005 per share.

⁴  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

284

	Class B
	Years ended July 31,
	2011			2010			20091			2008			2007
Net asset value, beginning of year	$	13.03		$	11.02		$	13.12		$	18.06		$	16.15
Net investment income (loss)2		(0.11	)		(0.10	)		(0.02	)		(0.08	)		(0.14	)
Net realized and unrealized gains (losses)		2.51			2.11			(2.08	)		(2.79	)		2.81
Net increase (decrease) from operations		2.40			2.01			(2.10	)		(2.87	)		2.67
Dividends from net investment income		—			—			—			—			—
Distributions from net realized gains		—			—			(0.00	)3		(2.07	)		(0.76	)
Total dividends and distributions		—			—			(0.00	)3		(2.07	)		(0.76	)
Net asset value, end of year	$	15.43		$	13.03		$	11.02		$	13.12		$	18.06
Total investment return4		18.70	%		18.31	%		(15.90	)%		(16.99	)%		16.77	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		2.29	%		2.37	%		2.47	%		2.20	%		2.13	%
Expenses after fee waivers and/or expense reimbursements by manager		2.16	%		2.16	%		2.16	%		2.16	%		2.13	%
Net investment income (loss)		(0.92	)%		(0.81	)%		(0.25	)%		(0.53	)%		(0.80	)%
Supplemental data:
Net assets, end of year (000's)	$	2		$	57		$	97		$	333		$	1,006
Portfolio turnover		70	%		81	%		111	%		43	%		59	%
	Class Y
	Years ended July 31,
	2011			2010			20091			2008			2007
Net asset value, beginning of year	$	14.63		$	12.29		$	14.64		$	19.73		$	17.39
Net investment income (loss)2		0.01			0.07			0.09			0.11			0.07
Net realized and unrealized gains (losses)		2.88			2.32			(2.31	)		(3.07	)		3.03
Net increase (decrease) from operations		2.89			2.39			(2.22	)		(2.96	)		3.10
Dividends from net investment income		(0.01	)		(0.05	)		(0.13	)		(0.06	)		—
Distributions from net realized gains		—			—			(0.00	)3		(2.07	)		(0.76	)
Total dividends and distributions		(0.01	)		(0.05	)		(0.13	)		(2.13	)		(0.76	)
Net asset value, end of year	$	17.51		$	14.63		$	12.29		$	14.64		$	19.73
Total investment return4		19.74	%		19.50	%		(14.92	)%		(15.95	)%		18.07	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.08	%		0.97	%		0.98	%		0.95	%		0.94	%
Expenses after fee waivers and/or expense reimbursements by manager		1.08	%		0.97	%		0.97	%		0.95	%		0.94	%
Net investment income (loss)		0.03	%		0.47	%		0.85	%		0.68	%		0.37	%
Supplemental data:
Net assets, end of year (000's)	$	371		$	318		$	3,255		$	4,443		$	5,980
Portfolio turnover		70	%		81	%		111	%		43	%		59	%

See accompanying notes to financial statements.
285

PACE Select Advisors Trust

Financial highlights

PACE Small/Medium Co Value Equity Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	2011			2010			20091			2008			2007
Net asset value, beginning of year	$	14.53		$	12.20		$	14.53		$	19.60		$	17.31
Net investment income (loss)2		(0.01	)		0.02			0.07			0.08			0.03
Net realized and unrealized gains (losses)		2.87			2.34			(2.30	)		(3.05	)		3.02
Net increase (decrease) from operations		2.86			2.36			(2.23	)		(2.97	)		3.05
Dividends from net investment income		(0.01	)		(0.03	)		(0.10	)		(0.03	)		—
Distributions from net realized gains		—			—			(0.00	)3		(2.07	)		(0.76	)
Total dividends and distributions		(0.01	)		(0.03	)		(0.10	)		(2.10	)		(0.76	)
Net asset value, end of year	$	17.38		$	14.53		$	12.20		$	14.53		$	19.60
Total investment return4		19.66	%		19.38	%		(15.14	)%		(16.13	)%		17.86	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.17	%		1.25	%		1.32	%		1.18	%		1.16	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.16	%		1.16	%		1.16	%		1.16	%		1.16	%5
Net investment income (loss)		(0.05	)%		0.14	%		0.66	%		0.48	%		0.16	%
Supplemental data:
Net assets, end of year (000's)	$	387,634		$	345,494		$	310,059		$	428,819		$	483,873
Portfolio turnover		70	%		81	%		111	%		43	%		59	%

¹  A portion of the investment advisory function for this Portfolio was transferred to Buckhead Capital Management, LLC and Systematic Financial Management, L.P. on May 28, 2009. Ariel Investments, LLC and Opus Capital Group, LLC ceased serving as investment advisors for the Portfolio effective May 29, 2009. Metropolitan West Capital Management, LLC continues to provide a portion of the investment advisory function.

²  Calculated using the average shares method.

³  Amount represents less than $0.005 per share.

⁴  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁵  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

See accompanying notes to financial statements.
286

This page intentionally left blank.

287

PACE Select Advisors Trust

Financial highlights

PACE Small/Medium Co Growth Equity Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	2011			2010			20091			2008			20072
Net asset value, beginning of year	$	12.28		$	10.63		$	13.06		$	17.30		$	14.45
Net investment loss3		(0.13	)		(0.09	)		(0.05	)		(0.11	)		(0.12	)
Net realized and unrealized gains (losses)		4.51			1.74			(2.38	)		(1.53	)		3.40
Net increase (decrease) from operations		4.38			1.65			(2.43	)		(1.64	)		3.28
Distributions from net realized gains		—			—			—			(2.60	)		(0.43	)
Net asset value, end of year	$	16.66		$	12.28		$	10.63		$	13.06		$	17.30
Total investment return4		35.67	%		15.52	%		(18.61	)%		(11.39	)%		23.00	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.28	%		1.35	%		1.40	%		1.31	%		1.30	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.28	%		1.35	%5		1.38	%		1.31	%		1.30	%
Net investment loss		(0.83	)%		(0.71	)%		(0.56	)%		(0.70	)%		(0.77	)%
Supplemental data:
Net assets, end of year (000's)	$	40,992		$	32,053		$	29,429		$	41,494		$	49,562
Portfolio turnover		103	%		133	%		154	%		128	%		109	%
	Class C
	Years ended July 31,
	2011			2010			20091			2008			20072
Net asset value, beginning of year	$	11.19		$	9.76		$	12.07		$	16.30		$	13.74
Net investment loss3		(0.23	)		(0.16	)		(0.11	)		(0.21	)		(0.24	)
Net realized and unrealized gains (losses)		4.09			1.59			(2.20	)		(1.42	)		3.23
Net increase (decrease) from operations		3.86			1.43			(2.31	)		(1.63	)		2.99
Distributions from net realized gains		—			—			—			(2.60	)		(0.43	)
Net asset value, end of year	$	15.05		$	11.19		$	9.76		$	12.07		$	16.30
Total investment return4		34.50	%		14.65	%		(19.21	)%		(12.08	)%		22.14	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		2.05	%		2.13	%		2.19	%		2.08	%		2.08	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		2.09	%5		2.13	%5		2.13	%		2.08	%		2.08	%
Net investment loss		(1.63	)%		(1.49	)%		(1.30	)%		(1.47	)%		(1.55	)%
Supplemental data:
Net assets, end of year (000's)	$	4,158		$	3,217		$	3,285		$	4,991		$	6,712
Portfolio turnover		103	%		133	%		154	%		128	%		109	%

¹  A portion of the investment advisory function for this Portfolio was transferred from AG Asset Management LLC to Palisade Capital Management, LLC on February 2, 2009. Copper Rock Capital Partners, LLC and Riverbridge Partners, LLC continue to provide a portion of the investment advisory function.

²  A portion of the investment advisory function for this Portfolio was transferred from Delaware Management Co., Inc. to Copper Rock Capital Partners, LLC on March 1, 2007. ForstmannLeff Associates, LLC changed its name to AG Asset Management LLC on May 1, 2007.

³  Calculated using the average shares method.

⁴  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁵  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

288

	Class B
	Years ended July 31,
	2011			2010			20091			2008			20072
Net asset value, beginning of year	$	11.11		$	9.69		$	11.99		$	16.22		$	13.68
Net investment loss3		(0.22	)		(0.15	)		(0.11	)		(0.22	)		(0.23	)
Net realized and unrealized gains (losses)		4.05			1.57			(2.19	)		(1.41	)		3.20
Net increase (decrease) from operations		3.83			1.42			(2.30	)		(1.63	)		2.97
Distributions from net realized gains		—			—			—			(2.60	)		(0.43	)
Net asset value, end of year	$	14.94		$	11.11		$	9.69		$	11.99		$	16.22
Total investment return4		34.23	%		14.86	%		(19.18	)%		(12.16	)%		22.02	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		2.74	%		2.73	%		2.61	%		2.43	%		2.30	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		2.13	%		2.13	%		2.13	%		2.13	%		2.13	%
Net investment loss		(1.65	)%		(1.39	)%		(1.29	)%		(1.52	)%		(1.58	)%
Supplemental data:
Net assets, end of year (000's)	$	12		$	16		$	68		$	123		$	310
Portfolio turnover		103	%		133	%		154	%		128	%		109	%
	Class Y
	Years ended July 31,
	2011			2010			20091			2008			20072
Net asset value, beginning of year	$	12.74		$	11.02		$	13.47		$	17.71		$	14.72
Net investment loss3		(0.10	)		(0.02	)		(0.01	)		(0.05	)		(0.07	)
Net realized and unrealized gains (losses)		4.67			1.74			(2.44	)		(1.59	)		3.49
Net increase (decrease) from operations		4.57			1.72			(2.45	)		(1.64	)		3.42
Distributions from net realized gains		—			—			—			(2.60	)		(0.43	)
Net asset value, end of year	$	17.31		$	12.74		$	11.02		$	13.47		$	17.71
Total investment return4		35.87	%		15.71	%		(18.26	)%		(11.09	)%		23.54	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager		1.08	%		0.94	%		0.96	%		0.94	%		0.93	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager		1.08	%		0.94	%		0.96	%		0.94	%		0.93	%
Net investment loss		(0.61	)%		(0.14	)%		(0.15	)%		(0.33	)%		(0.41	)%
Supplemental data:
Net assets, end of year (000's)	$	98		$	62		$	4,369		$	5,671		$	6,022
Portfolio turnover		103	%		133	%		154	%		128	%		109	%

See accompanying notes to financial statements.
289

PACE Select Advisors Trust

Financial highlights

PACE Small/Medium Co Growth Equity Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	2011			2010			20091			2008			20072
Net asset value, beginning of year	$	12.62		$	10.90		$	13.36		$	17.61		$	14.67
Net investment loss3		(0.11	)		(0.06	)		(0.03	)		(0.08	)		(0.10	)
Net realized and unrealized gains (losses)		4.63			1.78			(2.43	)		(1.57	)		3.47
Net increase (decrease) from operations		4.52			1.72			(2.46	)		(1.65	)		3.37
Distributions from net realized gains		—			—			—			(2.60	)		(0.43	)
Net asset value, end of year	$	17.14		$	12.62		$	10.90		$	13.36		$	17.61
Total investment return4		35.82	%		15.78	%		(18.41	)%		(11.22	)%		23.28	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.16	%		1.23	%		1.31	%		1.17	%		1.16	%
Expenses after fee waivers and/or expense reimbursements by manager		1.13	%		1.13	%		1.13	%		1.13	%		1.13	%
Net investment loss		(0.67	)%		(0.50	)%		(0.31	)%		(0.52	)%		(0.60	)%
Supplemental data:
Net assets, end of year (000's)	$	423,310		$	338,951		$	310,425		$	456,354		$	500,929
Portfolio turnover		103	%		133	%		154	%		128	%		109	%

¹  A portion of the investment advisory function for this Portfolio was transferred from AG Asset Management LLC to Palisade Capital Management, LLC on February 2, 2009. Copper Rock Capital Partners, LLC and Riverbridge Partners, LLC continue to provide a portion of the investment advisory function.

²  A portion of the investment advisory function for this Portfolio was transferred from Delaware Management Co., Inc. to Copper Rock Capital Partners, LLC on March 1, 2007. ForstmannLeff Associates, LLC changed its name to AG Asset Management LLC on May 1, 2007.

³  Calculated using the average shares method.

⁴  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

See accompanying notes to financial statements.
290

This page intentionally left blank.

291

PACE Select Advisors Trust

Financial highlights

PACE International Equity Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	11.72		$	11.72		$	16.17		$	21.27		$	19.03
Net investment income2		0.25			0.19			0.27			0.41			0.29
Net realized and unrealized gains (losses)		1.66			0.06			(4.22	)		(2.99	)		4.09
Net increase (decrease) from operations		1.91			0.25			(3.95	)		(2.58	)		4.38
Dividends from net investment income		(0.22	)		(0.25	)		(0.50	)		(0.28	)		(0.35	)
Distributions from net realized gains		—			—			—			(2.24	)		(1.79	)
Total dividends and distributions		(0.22	)		(0.25	)		(0.50	)		(2.52	)		(2.14	)
Net asset value, end of year	$	13.41		$	11.72		$	11.72		$	16.17		$	21.27
Total investment return3		16.37	%		2.05	%		(24.02	)%		(13.73	)%		24.14	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.40	%		1.43	%		1.46	%		1.37	%		1.38	%
Expenses after fee waivers and/or expense reimbursements by manager		1.40	%4		1.43	%		1.46	%		1.37	%		1.38	%
Net investment income		1.91	%		1.54	%		2.47	%		2.16	%		1.42	%
Supplemental data:
Net assets, end of year (000's)	$	66,904		$	66,355		$	71,466		$	106,380		$	130,966
Portfolio turnover		66	%		60	%		60	%		54	%		61	%
	Class C
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	11.47		$	11.49		$	15.79		$	20.81		$	18.65
Net investment income2		0.14			0.08			0.17			0.25			0.12
Net realized and unrealized gains (losses)		1.64			0.05			(4.11	)		(2.92	)		4.01
Net increase (decrease) from operations		1.78			0.13			(3.94	)		(2.67	)		4.13
Dividends from net investment income		(0.11	)		(0.15	)		(0.36	)		(0.11	)		(0.18	)
Distributions from net realized gains		—			—			—			(2.24	)		(1.79	)
Total dividends and distributions		(0.11	)		(0.15	)		(0.36	)		(2.35	)		(1.97	)
Net asset value, end of year	$	13.14		$	11.47		$	11.49		$	15.79		$	20.81
Total investment return3		15.57	%		1.10	%		(24.67	)%		(14.42	)%		23.13	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		2.23	%		2.26	%		2.31	%		2.18	%		2.18	%
Expenses after fee waivers and/or expense reimbursements by manager		2.23	%4		2.26	%		2.31	%		2.18	%		2.18	%
Net investment income		1.08	%		0.69	%		1.62	%		1.33	%		0.60	%
Supplemental data:
Net assets, end of year (000's)	$	3,601		$	3,769		$	4,342		$	6,949		$	8,856
Portfolio turnover		66	%		60	%		60	%		54	%		61	%

¹  A portion of the investment advisory function for this Portfolio was transferred to J.P. Morgan Investment Management Inc. (EAFE Opportunities Segment) on November 8, 2010. Martin Currie Inc., Mondrian Investment Partners Limited and J.P. Morgan Investment Management Inc. (REI Segment) continue to provide a portion of the investment advisory function.

²  Calculated using the average shares method.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁴  During the year ended July 31, 2011, UBS Global Asset Management (Americas) Inc. waived fees and/or reimbursed a portion of ordinary operating expenses. The ratios after and before fee waivers and/or expense reimbursements are the same since the fee waiver/reimbursement represents less than 0.01%.

292

	Class B
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	11.68		$	11.65		$	15.79		$	20.80		$	18.60
Net investment income2		0.07			0.05			0.14			0.17			0.07
Net realized and unrealized gains (losses)		1.72			0.08			(4.09	)		(2.88	)		4.04
Net increase (decrease) from operations		1.79			0.13			(3.95	)		(2.71	)		4.11
Dividends from net investment income		—			(0.10	)		(0.19	)		(0.06	)		(0.12	)
Distributions from net realized gains		—			—			—			(2.24	)		(1.79	)
Total dividends and distributions		—			(0.10	)		(0.19	)		(2.30	)		(1.91	)
Net asset value, end of year	$	13.47		$	11.68		$	11.65		$	15.79		$	20.80
Total investment return3		15.81	%		1.14	%		(24.80	)%		(14.57	)%		23.03	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		3.50	%		2.59	%		2.63	%		2.31	%		2.27	%
Expenses after fee waivers and/or expense reimbursements by manager		2.36	%		2.40	%		2.40	%		2.31	%		2.27	%
Net investment income		0.62	%		0.43	%		1.36	%		0.89	%		0.37	%
Supplemental data:
Net assets, end of year (000's)	$	1		$	20		$	66		$	186		$	489
Portfolio turnover		66	%		60	%		60	%		54	%		61	%
	Class Y
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	11.71		$	11.72		$	16.20		$	21.30		$	19.06
Net investment income2		0.28			0.22			0.31			0.48			0.36
Net realized and unrealized gains (losses)		1.67			0.07			(4.23	)		(2.98	)		4.10
Net increase (decrease) from operations		1.95			0.29			(3.92	)		(2.50	)		4.46
Dividends from net investment income		(0.25	)		(0.30	)		(0.56	)		(0.36	)		(0.43	)
Distributions from net realized gains		—			—			—			(2.24	)		(1.79	)
Total dividends and distributions		(0.25	)		(0.30	)		(0.56	)		(2.60	)		(2.22	)
Net asset value, end of year	$	13.41		$	11.71		$	11.72		$	16.20		$	21.30
Total investment return3		16.65	%		2.43	%		(23.73	)%		(13.38	)%		24.55	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.16	%		1.10	%		1.06	%		1.02	%		1.02	%
Expenses after fee waivers and/or expense reimbursements by manager		1.16	%4		1.10	%		1.06	%		1.02	%		1.02	%
Net investment income		2.14	%		1.77	%		2.89	%		2.51	%		1.78	%
Supplemental data:
Net assets, end of year (000's)	$	21,046		$	23,368		$	33,012		$	50,655		$	65,377
Portfolio turnover		66	%		60	%		60	%		54	%		61	%

See accompanying notes to financial statements.
293

PACE Select Advisors Trust

Financial highlights

PACE International Equity Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	11.69		$	11.70		$	16.16		$	21.27		$	19.03
Net investment income2		0.29			0.22			0.29			0.46			0.35
Net realized and unrealized gains (losses)		1.66			0.05			(4.21	)		(2.99	)		4.09
Net increase (decrease) from operations		1.95			0.27			(3.92	)		(2.53	)		4.44
Dividends from net investment income		(0.25	)		(0.28	)		(0.54	)		(0.34	)		(0.41	)
Distributions from net realized gains		—			—			—			(2.24	)		(1.79	)
Total dividends and distributions		(0.25	)		(0.28	)		(0.54	)		(2.58	)		(2.20	)
Net asset value, end of year	$	13.39		$	11.69		$	11.70		$	16.16		$	21.27
Total investment return3		16.79	%		2.21	%		(23.81	)%		(13.53	)%		24.48	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.16	%		1.18	%		1.22	%		1.12	%		1.12	%
Expenses after fee waivers and/or expense reimbursements by manager		1.16	%4		1.18	%		1.22	%		1.12	%		1.12	%
Net investment income		2.20	%		1.80	%		2.72	%		2.44	%		1.70	%
Supplemental data:
Net assets, end of year (000's)	$	817,011		$	698,546		$	684,359		$	1,048,105		$	1,173,137
Portfolio turnover		66	%		60	%		60	%		54	%		61	%

¹  A portion of the investment advisory function for this Portfolio was transferred to J.P. Morgan Investment Management Inc. (EAFE Opportunities Segment) on November 8, 2010. Martin Currie Inc., Mondrian Investment Partners Limited and J.P. Morgan Investment Management Inc. (REI Segment) continue to provide a portion of the investment advisory function.

²  Calculated using the average shares method.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁴  During the year ended July 31, 2011, UBS Global Asset Management (Americas) Inc. waived fees and/or reimbursed a portion of ordinary operating expenses. The ratios after and before fee waivers and/or expense reimbursements are the same since the fee waiver/reimbursement represents less than 0.01%.

See accompanying notes to financial statements.
294

This page intentionally left blank.

295

PACE Select Advisors Trust

Financial highlights

PACE International Emerging Markets Equity Investments

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class A
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	12.19		$	10.58		$	19.46		$	23.61		$	18.30
Net investment income (loss)2		0.12			0.09			0.20			0.25			0.21
Net realized and unrealized gains (losses)		1.59			1.68			(5.71	)		(0.49	)		8.02
Net increase (decrease) from operations		1.71			1.77			(5.51	)		(0.24	)		8.23
Dividends from net investment income		(0.10	)		(0.16	)		(0.13	)		(0.27	)		(0.22	)
Distributions from net realized gains		—			—			(3.24	)		(3.64	)		(2.70	)
Total dividends and distributions		(0.10	)		(0.16	)		(3.37	)		(3.91	)		(2.92	)
Net asset value, end of year	$	13.80		$	12.19		$	10.58		$	19.46		$	23.61
Total investment return3		14.01	%		16.81	%		(21.37	)%		(2.61	)%		49.16	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.84	%		1.87	%		1.93	%		1.86	%		1.89	%
Expenses after fee waivers and/or expense reimbursements by manager		1.84	%4		1.87	%		1.93	%		1.86	%		1.89	%
Net investment income		0.87	%		0.75	%		2.06	%		1.14	%		1.05	%
Supplemental data:
Net assets, end of year (000's)	$	22,648		$	19,111		$	17,784		$	29,938		$	31,216
Portfolio turnover		111	%		60	%		77	%		53	%		54	%
	Class C
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	11.38		$	9.90		$	18.48		$	22.61		$	17.62
Net investment income (loss)2		0.01			(0.00	)5		0.13			0.08			0.06
Net realized and unrealized gains (losses)		1.48			1.58			(5.47	)		(0.46	)		7.69
Net increase (decrease) from operations		1.49			1.58			(5.34	)		(0.38	)		7.75
Dividends from net investment income		—			(0.10	)		—			(0.11	)		(0.06	)
Distributions from net realized gains		—			—			(3.24	)		(3.64	)		(2.70	)
Total dividends and distributions		—			(0.10	)		(3.24	)		(3.75	)		(2.76	)
Net asset value, end of year	$	12.87		$	11.38		$	9.90		$	18.48		$	22.61
Total investment return3		13.19	%		15.96	%		(21.97	)%		(3.34	)%		48.03	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		2.58	%		2.61	%		2.67	%		2.60	%		2.64	%
Expenses after fee waivers and/or expense reimbursements by manager		2.58	%4		2.61	%		2.67	%		2.60	%		2.64	%
Net investment income (loss)		0.11	%		(0.01	)%		1.35	%		0.39	%		0.30	%
Supplemental data:
Net assets, end of year (000's)	$	3,373		$	3,682		$	3,525		$	6,536		$	7,461
Portfolio turnover		111	%		60	%		77	%		53	%		54	%

¹  Portions of the investment advisory function for this Portfolio were transferred to Delaware Management Company and Pzena Investment Management, LLC, respectively, on November 4, 2010 and to William Blair & Company LLC on March 23, 2011. Mondrian Investment Partners Limited continues to provide a portion of the investment advisory function. Gartmore Global Partners provided a portion of the investment advisory function during this period and then was subsequently terminated as a sub-advisor to the Portfolio at the close of business on March 22, 2011.

²  Calculated using the average shares method.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable sales charges or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁴  During the year ended July 31, 2011, UBS Global Asset Management (Americas) Inc. waived fees and/or reimbursed a portion of ordinary operating expenses. The ratios after and before fee waivers and/or expense reimbursements are the same since the fee waiver/reimbursement represents less than 0.01%.

⁵  Amount represents less than $0.005 per share.

296

	Class B
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	11.48		$	9.91		$	18.50		$	22.61		$	17.60
Net investment income (loss)2		0.01			(0.03	)		0.11			0.06			0.04
Net realized and unrealized gains (losses)		1.49			1.60			(5.46	)		(0.46	)		7.69
Net increase (decrease) from operations		1.50			1.57			(5.35	)		(0.40	)		7.73
Dividends from net investment income		—			—			—			(0.07	)		(0.02	)
Distributions from net realized gains		—			—			(3.24	)		(3.64	)		(2.70	)
Total dividends and distributions		—			—			(3.24	)		(3.71	)		(2.72	)
Net asset value, end of year	$	12.98		$	11.48		$	9.91		$	18.50		$	22.61
Total investment return3		13.07	%		15.84	%		(22.05	)%		(3.41	)%		47.95	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		2.64	%		2.72	%		2.72	%		2.68	%		2.69	%
Expenses after fee waivers and/or expense reimbursements by manager		2.64	%4		2.72	%		2.72	%		2.68	%		2.69	%
Net investment income		0.09	%		(0.31	)%		1.14	%		0.28	%		0.20	%
Supplemental data:
Net assets, end of year (000's)	$	49		$	60		$	135		$	319		$	535
Portfolio turnover		111	%		60	%		77	%		53	%		54	%
	Class Y
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	12.41		$	10.78		$	19.79		$	23.95		$	18.53
Net investment income (loss)2		0.15			0.10			0.28			0.34			0.30
Net realized and unrealized gains (losses)		1.61			1.74			(5.83	)		(0.51	)		8.12
Net increase (decrease) from operations		1.76			1.84			(5.55	)		(0.17	)		8.42
Dividends from net investment income		(0.11	)		(0.21	)		(0.22	)		(0.35	)		(0.30	)
Distributions from net realized gains		—			—			(3.24	)		(3.64	)		(2.70	)
Total dividends and distributions		(0.11	)		(0.21	)		(3.46	)		(3.99	)		(3.00	)
Net asset value, end of year	$	14.06		$	12.41		$	10.78		$	19.79		$	23.95
Total investment return3		14.22	%		17.15	%		(21.00	)%		(2.22	)%		49.74	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.61	%		1.62	%		1.47	%		1.50	%		1.52	%
Expenses after fee waivers and/or expense reimbursements by manager		1.61	%4		1.62	%		1.47	%		1.50	%		1.52	%
Net investment income (loss)		1.08	%		0.88	%		2.87	%		1.49	%		1.44	%
Supplemental data:
Net assets, end of year (000's)	$	17,808		$	21,524		$	33,069		$	31,579		$	29,576
Portfolio turnover		111	%		60	%		77	%		53	%		54	%

See accompanying notes to financial statements.
297

PACE Select Advisors Trust

Financial highlights

PACE International Emerging Markets Equity Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Class P
	Years ended July 31,
	20111			2010			2009			2008			2007
Net asset value, beginning of year	$	12.36		$	10.72		$	19.68		$	23.84		$	18.44
Net investment income2		0.13			0.09			0.20			0.28			0.23
Net realized and unrealized gains (losses)		1.60			1.71			(5.77	)		(0.51	)		8.09
Net increase (decrease) from operations		1.73			1.80			(5.57	)		(0.23	)		8.32
Dividends from net investment income		(0.09	)		(0.16	)		(0.15	)		(0.29	)		(0.22	)
Distributions from net realized gains		—			—			(3.24	)		(3.64	)		(2.70	)
Total dividends and distributions		(0.09	)		(0.16	)		(3.39	)		(3.93	)		(2.92	)
Net asset value, end of year	$	14.00		$	12.36		$	10.72		$	19.68		$	23.84
Total investment return3		14.04	%		16.85	%		(21.42	)%		(2.52	)%		49.31	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.79	%		1.85	%		1.97	%		1.78	%		1.82	%
Expenses after fee waivers and/or expense reimbursements by manager		1.79	%4		1.85	%		1.97	%		1.78	%		1.82	%
Net investment income		0.95	%		0.78	%		2.03	%		1.22	%		1.13	%
Supplemental data:
Net assets, end of year (000's)	$	264,991		$	232,908		$	210,680		$	337,958		$	374,910
Portfolio turnover		111	%		60	%		77	%		53	%		54	%

¹  Portions of the investment advisory function for this Portfolio were transferred to Delaware Management Company and Pzena Investment Management, LLC, respectively, on November 4, 2010 and to William Blair & Company LLC on March 23, 2011. Mondrian Investment Partners Limited continues to provide a portion of the investment advisory function. Gartmore Global Partners provided a portion of the investment advisory function during this period and then was subsequently terminated as a sub-advisor to the Portfolio at the close of business on March 22, 2011.

²  Calculated using the average shares method.

³  Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each year reported. The figures do not include any applicable program or redemption fees; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁴  During the year ended July 31, 2011, UBS Global Asset Management (Americas) Inc. waived fees and/or reimbursed a portion of ordinary operating expenses. The ratios after and before fee waivers and/or expense reimbursements are the same since the fee waiver/reimbursement represents less than 0.01%.

See accompanying notes to financial statements.
298

This page intentionally left blank.

299

PACE Select Advisors Trust

Financial highlights

PACE Global Real Estate Securities Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

	Class A
	Years ended July 31,												Period ended July 31,
	2011			20101			2009			2008			20072
Net asset value, beginning of period	$	5.31		$	4.86		$	7.73		$	9.54		$	9.84
Net investment income3		0.09			0.11			0.16			0.19			0.09
Net realized and unrealized gains (losses)		1.01			0.83			(2.97	)		(1.70	)		(0.35	)
Net increase (decrease) from operations		1.10			0.94			(2.81	)		(1.51	)		(0.26	)
Dividends from net investment income		(0.39	)		(0.49	)		(0.06	)		(0.27	)		(0.04	)
Distributions from net realized gains		—			—			—			(0.03	)		—
Total dividends and distributions		(0.39	)		(0.49	)		(0.06	)		(0.30	)		(0.04	)
Net asset value, end of period	$	6.02		$	5.31		$	4.86		$	7.73		$	9.54
Total investment return4		21.49	%		19.70	%		(36.25	)%		(16.22	)%		(2.63	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.68	%		1.89	%		2.06	%		1.74	%		3.06	%5
Expenses after fee waivers and/or expense reimbursements by manager		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%5
Net investment income		1.54	%		2.13	%		3.32	%		2.10	%		1.47	%5
Supplemental data:
Net assets, end of period (000's)	$	4,566		$	3,975		$	3,238		$	6,647		$	4,199
Portfolio turnover		51	%		117	%		127	%		68	%		38	%

	Class Y
	Years ended July 31,						Period ended July 31,			Period ended February 15,
	2011			20101			20096			20077
Net asset value, beginning of period	$	5.33		$	4.87		$	4.35		$	10.00
Net investment income3		0.10			0.12			0.09			0.06
Net realized and unrealized gains		1.02			0.84			0.43			0.97
Net increase from operations		1.12			0.96			0.52			1.03
Dividends from net investment income		(0.40	)		(0.50	)		—			(0.04	)
Distributions from net realized gains		—			—			—			—
Total dividends and distributions		(0.40	)		(0.50	)		—			(0.04	)
Net asset value, end of period	$	6.05		$	5.33		$	4.87		$	10.99
Total investment return4		21.89	%		20.15	%		11.95	%		10.39	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.34	%		1.51	%		1.87	%		1.92	%5
Expenses after fee waivers and/or expense reimbursements by manager		1.20	%		1.20	%		1.20	%		1.20	%5
Net investment income		1.74	%		2.34	%		3.84	%		3.07	%5
Supplemental data:
Net assets, end of period (000's)	$	195		$	111		$	13		$	—
Portfolio turnover		51	%		117	%		127	%		38	%

¹  Investment advisory functions for this Portfolio were transferred from Goldman Sachs Asset Management, L.P. to Brookfield Investment Management Inc. and CBRE Clarion Securities, LLC (formerly ING Clarion Real Estate Securities, LLC) on November 17, 2009.

²  For the period December 18, 2006 (commencement of issuance) through July 31, 2007.

³  Calculated using the average shares method.

⁴  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend 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, redemption fees 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁵  Annualized.

⁶  For the period December 26, 2008 (recommencement of issuance) through July 31, 2009.

⁷  For the period November 30, 2006 (commencement of issuance) through February 15, 2007. There were no shares outstanding from February 16, 2007 through December 25, 2008.

⁸  For the period January 22, 2007 (commencement of issuance) through July 31, 2007.

300

	Class C
	Years ended July 31,												Period ended July 31,
	2011			20101			2009			2008			20072
Net asset value, beginning of period	$	5.29		$	4.85		$	7.69		$	9.49		$	9.84
Net investment income3		0.05			0.07			0.12			0.12			0.05
Net realized and unrealized gains (losses)		1.00			0.82			(2.95	)		(1.69	)		(0.36	)
Net increase (decrease) from operations		1.05			0.89			(2.83	)		(1.57	)		(0.31	)
Dividends from net investment income		(0.35	)		(0.45	)		(0.01	)		(0.20	)		(0.04	)
Distributions from net realized gains		—			—			—			(0.03	)		—
Total dividends and distributions		(0.35	)		(0.45	)		(0.01	)		(0.23	)		(0.04	)
Net asset value, end of period	$	5.99		$	5.29		$	4.85		$	7.69		$	9.49
Total investment return4		20.51	%		18.74	%		(36.73	)%		(16.84	)%		(3.16	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		2.45	%		2.69	%		2.96	%		2.68	%		3.78	%5
Expenses after fee waivers and/or expense reimbursements by manager		2.20	%		2.20	%		2.20	%		2.20	%		2.20	%5
Net investment income		0.79	%		1.37	%		2.67	%		1.29	%		0.84	%5
Supplemental data:
Net assets, end of period (000's)	$	220		$	171		$	136		$	213		$	343
Portfolio turnover		51	%		117	%		127	%		68	%		38	%

	Class P
	Years ended July 31,												Period ended July 31,
	2011			20101			2009			2008			20078
Net asset value, beginning of period	$	5.32		$	4.86		$	7.75		$	9.56		$	10.26
Net investment income3		0.10			0.12			0.17			0.21			0.09
Net realized and unrealized gains		1.01			0.83			(2.97	)		(1.71	)		(0.79	)
Net increase from operations		1.11			0.95			(2.80	)		(1.50	)		(0.70	)
Dividends from net investment income		(0.40	)		(0.49	)		(0.09	)		(0.28	)		—
Distributions from net realized gains		—			—			—			(0.03	)		—
Total dividends and distributions		(0.40	)		(0.49	)		(0.09	)		(0.31	)		—
Net asset value, end of period	$	6.03		$	5.32		$	4.86		$	7.75		$	9.56
Total investment return4		21.74	%		20.10	%		(36.09	)%		(16.06	)%		(6.82	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		1.65	%		1.91	%		2.17	%		1.71	%		3.02	%5
Expenses after fee waivers and/or expense reimbursements by manager		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%5
Net investment income		1.77	%		2.36	%		3.67	%		2.38	%		1.75	%5
Supplemental data:
Net assets, end of period (000's)	$	101,008		$	73,866		$	52,925		$	70,125		$	44,772
Portfolio turnover		51	%		117	%		127	%		68	%		38	%

See accompanying notes to financial statements.
301

PACE Select Advisors Trust

Financial highlights

PACE Alternative Strategies Investments

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

	Class A															Class B
	Years ended July 31,															Period ended April 7,			Years ended July 31,
	20111			2010			20092			20083			2007			20104			20092			20083			2007
Net asset value, beginning of period	$	9.16		$	8.79		$	10.46		$	11.27		$	9.93		$	8.64		$	10.36		$	11.19		$	9.91
Net investment income (loss)5		(0.00	)6		0.006			0.06			0.09			0.13			(0.03	)		(0.01	)		0.01			0.02
Net realized and unrealized gains (losses)		0.25			0.40			(1.63	)		(0.65	)		1.26			0.56			(1.62	)		(0.64	)		1.29
Net increase (decrease) from operations		0.25			0.40			(1.57	)		(0.56	)		1.39			0.53			(1.63	)		(0.63	)		1.31
Dividends from net investment income		(0.09	)		(0.03	)		(0.03	)		(0.07	)		(0.05	)		—			(0.02	)		(0.02	)		(0.03	)
Distributions from net realized gains		—			—			(0.07	)		(0.18	)		—			—			(0.07	)		(0.18	)		—
Total dividends and distributions		(0.09	)		(0.03	)		(0.10	)		(0.25	)		(0.05	)		—			(0.09	)		(0.20	)		(0.03	)
Net asset value, end of period	$	9.32		$	9.16		$	8.79		$	10.46		$	11.27		$	9.17		$	8.64		$	10.36		$	11.19
Total investment return7		2.69	%		4.41	%		(14.95	)%		(4.94	)%		14.09	%		6.01	%		(15.54	)%		(5.68	)%		13.26	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager including dividend expense, interest expense and other borrowing costs for investments sold short		2.08	%		2.06	%		2.23	%		2.42	%		2.69	%		3.20	%8		3.13	%		4.51	%		3.68	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager including dividend expense, interest expense and other borrowing costs for investments sold short		2.05	%		2.00	%		2.20	%		2.42	%9		2.52	%		2.77	%8		3.00	%		3.16	%		3.23	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.95	%		1.95	%		1.95	%		1.94	%9		1.88	%		2.70	%8		2.70	%		2.70	%		2.63	%
Net investment income (loss)		(0.02	)%		0.04	%		0.69	%		0.79	%		1.21	%		(0.49	)%8		(0.08	)%		0.08	%		0.31	%
Supplemental data:
Net assets, end of period (000's)	$	63,767		$	56,772		$	65,429		$	150,598		$	64,409		$	—		$	29		$	23		$	18
Portfolio turnover		295	%		244	%		423	%		389	%		178	%		244	%		423	%		389	%		178	%

¹  A portion of the investment advisory function for this Portfolio was transferred to Standard Life Investments (Corporate Funds) Limited on August 5, 2010. Analytic Investors, LLC, First Quadrant L.P., Goldman Sachs Asset Management, L.P. and Wellington Management Company, LLP continue to provide a portion of the investment advisory function.

²  A portion of the investment advisory function for this Portfolio was transferred to First Quadrant L.P. on April 8, 2009.

³  A portion of the investment advisory function for this Portfolio was transferred to Goldman Sachs Asset Management, L.P. on September 10, 2007.

⁴  For the period August 1, 2009 through April 7, 2010. There were no shares outstanding from April 8, 2010 through July 31, 2010.

⁵  Calculated using the average shares method.

⁶  Amount represents less than $0.005 per share.

⁷  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend 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 redemption fees; results would be lower if they were included. Total investment return for periods of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁸  Annualized.

⁹  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

¹⁰  The ratios after and before fee waivers and/or expense reimbursements by and recoupments to manager are the same since the recoupments to manager represent less than 0.01%.

302

	Class C
	Years ended July 31,
	20111			2010			20092			20083			2007
Net asset value, beginning of period	$	8.97		$	8.64		$	10.34		$	11.20		$	9.91
Net investment income (loss)5		(0.07	)		(0.06	)		(0.01	)		0.01			0.05
Net realized and unrealized gains (losses)		0.25			0.39			(1.62	)		(0.64	)		1.26
Net increase (decrease) from operations		0.18			0.33			(1.63	)		(0.63	)		1.31
Dividends from net investment income		(0.02	)		—			—			(0.05	)		(0.02	)
Distributions from net realized gains		—			—			(0.07	)		(0.18	)		—
Total dividends and distributions		(0.02	)		—			(0.07	)		(0.23	)		(0.02	)
Net asset value, end of period	$	9.13		$	8.97		$	8.64		$	10.34		$	11.20
Total investment return7		1.93	%		3.70	%		(15.61	)%		(5.67	)%		13.23	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager including dividend expense, interest expense and other borrowing costs for investments sold short		2.78	%		2.75	%		2.96	%		3.16	%10		3.45	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager including dividend expense, interest expense and other borrowing costs for investments sold short		2.78	%9		2.75	%		2.96	%		3.16	%9,10		3.28	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, excluding dividend expense, interest expense and other borrowing costs for investments sold short		2.68	%9		2.70	%		2.70	%		2.67	%9		2.65	%
Net investment income (loss)		(0.77	)%		(0.72	)%		(0.08	)%		0.08	%		0.56	%
Supplemental data:
Net assets, end of period (000's)	$	6,479		$	6,887		$	6,565		$	7,921		$	3,843
Portfolio turnover		295	%		244	%		423	%		389	%		178	%

See accompanying notes to financial statements.
303

PACE Select Advisors Trust

Financial highlights

PACE Alternative Strategies Investments (concluded)

Selected data for a share of beneficial interest outstanding throughout each period is presented below:

	Class Y
	Years ended July 31,									Period ended July 31,
	20111			2010			20092			20083,4
Net asset value, beginning of period	$	9.19		$	8.80		$	10.51		$	10.52
Net investment income5		0.02			0.03			0.08			(0.00	)6
Net realized and unrealized gains (losses)		0.25			0.40			(1.66	)		(0.01	)
Net increase (decrease) from operations		0.27			0.43			(1.58	)		(0.01	)
Dividends from net investment income		(0.08	)		(0.04	)		(0.06	)		—
Distributions from net realized gains		—			—			(0.07	)		—
Total dividends and distributions		(0.08	)		(0.04	)		(0.13	)		—
Net asset value, end of period	$	9.38		$	9.19		$	8.80		$	10.51
Total investment return7		2.84	%		4.83	%		(14.81	)%		(0.10	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager including dividend expense, interest expense and other borrowing costs for investments sold short		1.85	%		1.76	%		1.98	%		2.69	%9
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager including dividend expense, interest expense and other borrowing costs for investments sold short		1.80	%		1.76	%8		1.95	%		2.52	%9
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.70	%		1.70	%8		1.70	%		1.70	%9
Net investment income (loss)		0.21	%		0.37	%		0.95	%		(1.77	)%9
Supplemental data:
Net assets, end of period (000's)	$	1,565		$	1,977		$	13,707		$	57,552
Portfolio turnover		295	%		244	%		423	%		389	%

¹  A portion of the investment advisory function for this Portfolio was transferred to Standard Life Investments (Corporate Funds) Limited on August 5, 2010. Analytic Investors, LLC, First Quadrant L.P., Goldman Sachs Asset Management, L.P. and Wellington Management Company, LLP continue to provide a portion of the investment advisory function.

²  A portion of the investment advisory function for this Portfolio was transferred to First Quadrant L.P. on April 8, 2009.

³  A portion of the investment advisory function for this Portfolio was transferred to Goldman Sachs Asset Management, L.P. on September 10, 2007.

⁴  For the period July 23, 2008 (recommencement of issuance) through July 31, 2008.

⁵  Calculated using the average shares method.

⁶  Amount represents less than $0.005 per share.

⁷  Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the ex-dividend 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 redemption fees 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

⁸  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

⁹  Annualized.

304

	Class P
	Years ended July 31,
	20111			2010			20092			20083			2007
Net asset value, beginning of period	$	9.19		$	8.82		$	10.51		$	11.30		$	9.94
Net investment income5		0.02			0.03			0.08			0.12			0.16
Net realized and unrealized gains (losses)		0.26			0.40			(1.65	)		(0.65	)		1.26
Net increase (decrease) from operations		0.28			0.43			(1.57	)		(0.53	)		1.42
Dividends from net investment income		(0.11	)		(0.06	)		(0.05	)		(0.08	)		(0.06	)
Distributions from net realized gains		—			—			(0.07	)		(0.18	)		—
Total dividends and distributions		(0.11	)		(0.06	)		(0.12	)		(0.26	)		(0.06	)
Net asset value, end of period	$	9.36		$	9.19		$	8.82		$	10.51		$	11.30
Total investment return7		2.94	%		4.71	%		(14.73	)%		(4.76	)%		14.38	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by and recoupments to manager including dividend expense, interest expense and other borrowing costs for investments sold short		1.81	%		1.79	%		1.96	%		2.13	%		2.43	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager including dividend expense, interest expense and other borrowing costs for investments sold short		1.80	%		1.75	%		1.95	%		2.13	%8		2.28	%
Expenses after fee waivers and/or expense reimbursements by and recoupments to manager, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.70	%		1.70	%		1.70	%		1.68	%8		1.64	%
Net investment income (loss)		0.22	%		0.28	%		0.93	%		1.10	%		1.44	%
Supplemental data:
Net assets, end of period (000's)	$	476,544		$	399,477		$	356,352		$	555,361		$	384,649
Portfolio turnover		295	%		244	%		423	%		389	%		178	%

See accompanying notes to financial statements.
305

PACE Select Advisors Trust

Notes to financial statements

Organization and significant accounting policies

PACE Select Advisors Trust (the "Trust") is registered with the US Securities and Exchange Commission ("SEC") under the Investment Company Act of 1940, as amended, as an open-end management investment company currently composed of fifteen separate investment portfolios and was organized as a Delaware statutory trust under the laws of the State of Delaware by Certificate of Trust dated September 9, 1994, as amended June 9, 1995 and thereafter. 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 fifteen Portfolios 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 International Fixed Income Investments, PACE High Yield Investments, PACE Large Co Value Equity Investments, PACE Large Co Growth Equity Investments, PACE Small/Medium Co Value Equity Investments, PACE Small/Medium Co Growth Equity Investments, PACE International Equity Investments, PACE International Emerging Markets Equity Investments, PACE Global Real Estate Securities Investments and PACE Alternative Strategies Investments (collectively, the "Portfolios").

Effective November 22, 2010, the names of the Trust and each of the Portfolios have been changed as indicated below:

Former name	Current name
UBS PACE® Select Advisors Trust	PACE® Select Advisors Trust
UBS PACE® Money Market Investments	PACE® Money Market Investments
UBS PACE® Government Securities Fixed Income Investments	PACE® Government Securities Fixed Income Investments
UBS PACE® Intermediate Fixed Income Investments	PACE® Intermediate Fixed Income Investments
UBS PACE® Strategic Fixed Income Investments	PACE® Strategic Fixed Income Investments
UBS PACE® Municipal Fixed Income Investments	PACE® Municipal Fixed Income Investments
UBS PACE® Global Fixed Income Investments	PACE® International Fixed Income Investments
UBS PACE® High Yield Investments	PACE® High Yield Investments
UBS PACE® Large Co Value Equity Investments	PACE® Large Co Value Equity Investments
UBS PACE® Large Co Growth Equity Investments	PACE® Large Co Growth Equity Investments
UBS PACE® Small/Medium Co Value Equity Investments	PACE® Small/Medium Co Value Equity Investments
UBS PACE® Small/Medium Co Growth Equity Investments	PACE® Small/Medium Co Growth Equity Investments
UBS PACE® International Equity Investments	PACE® International Equity Investments
UBS PACE® International Emerging Markets Equity Investments	PACE® International Emerging Markets Equity Investments
UBS PACE® Global Real Estate Securities Investments	PACE® Global Real Estate Securities Investments
UBS PACE® Alternative Strategies Investments	PACE® Alternative Strategies Investments

Each of the Portfolios is classified as a diversified investment company with the exception of PACE Intermediate Fixed Income Investments, PACE International Fixed Income Investments, PACE Global Real Estate Securities Investments and PACE Alternative Strategies Investments. With the exception of PACE Money Market Investments (which currently offers Class P shares only) and PACE Global Real Estate Securities Investments (which currently offers Class A, Class C, Class Y and Class P shares), each Portfolio currently offers Class A, Class B, Class C, Class Y and Class P shares. Each class represents interests in the same assets of the applicable Portfolio and the classes are identical except for differences in their sales charge structures, ongoing service and distribution charges and certain transfer agency and related services expenses. In addition, Class B shares and all corresponding reinvested dividend shares automatically convert to Class A shares within a certain number of years after issuance which varies depending upon the amount invested. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to its service and/or distribution plan, if any. Class Y and Class P

306

PACE Select Advisors Trust

Notes to financial statements

shares have no service or distribution plan. The Portfolios' Class P shares currently are available for purchase only to participants in the PACE^SM Select Advisors Program, except that PACE Money Market Investments shares are also available to participants in the PACE^SM Multi Advisor Program.

As of October 1, 2007, new or additional investments into Class B shares, including investments through an automatic investment plan, are not permitted. Existing shareholders of Class B shares may: (i) continue as Class B shareholders; (ii) continue to reinvest dividends and distributions into Class B shares; and (iii) exchange their Class B shares for Class B shares of other series of the UBS Family of Funds, as permitted by existing exchange privileges. For Class B shares outstanding on October 1, 2007 and Class B shares acquired upon reinvestment of dividends and distributions or through exchanges, all Class B share attributes, including the associated Rule 12b-1 service plan and distribution fees, contingent deferred sales charges and conversion features will continue.

The Trust accounts separately for the assets, liabilities and operations of each Portfolio. Expenses directly attributable to each Portfolio are charged to that Portfolio's operations; expenses which are applicable to all Portfolios are allocated among them on a pro rata basis.

In the normal course of business, the Portfolios may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Portfolios' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolios that have not yet occurred. However, the Portfolios have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

PACE Money Market Investments attempts to maintain a stable net asset value of $1.00 per share; the Portfolio has adopted certain investment, portfolio valuation and dividend/distribution policies in an attempt to enable it to do so. As with any money market portfolio, there is no assurance, however, that the Portfolio will be able to maintain a stable net asset value of $1.00 per share.

The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") is the exclusive reference of authoritative US generally accepted accounting principles ("GAAP") recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The Portfolios' financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies:

Valuation of investments—Each Portfolio (except PACE Money Market Investments) calculates its net asset value based on the current value for its portfolio securities. The Portfolios normally obtain values for their securities from independent pricing sources. Independent pricing sources may use last reported sale prices, official market closing 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 NASDAQ Official Closing Price. Other OTC securities are valued at the last bid price available prior to valuation. Securities which are listed on US and foreign stock exchanges normally are valued at the market close, last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. Securities listed on foreign stock exchanges (and certain related derivatives) may be fair valued based on significant events that occur between the close of the foreign markets and 4:00 pm EST. PACE International Equity Investments, PACE International Emerging Markets Equity Investments, PACE Global Real Estate Securities Investments and PACE Alternative Strategies Investments may use a systematic fair valuation model provided by an independent third party to value securities principally traded in foreign markets (and certain related derivatives) in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation. If a security is valued at a "fair value", that value is likely to be

307

PACE Select Advisors Trust

Notes to financial statements

different from the last quoted market price for the security. The use of the fair valuation model may result in securities being transferred between Level 1 and Level 2 of the fair value hierarchy at reporting period ends. In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. ("UBS Global AM"). 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"). Various factors may be reviewed in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. If events occur that materially affect the value of securities (particularly non-US securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange ("NYSE"), the securities are fair valued. 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 Portfolio are valued using the amortized cost method of valuation. All investments quoted in foreign currencies will be valued daily in US dollars on the basis of the foreign currency exchange rates prevailing at the time such valuation is determined by the Portfolios' custodian. Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company. Pursuant to the Portfolios' use of the practical expediant within ASC Topic 820, investments in non-registered investment companies are also valued at the daily net asset value. Futures contracts are generally valued at the settlement price established each day on the exchange on which they are traded. Forward foreign currency contracts are valued daily using forward exchange rates quoted by independent pricing services. Swaps are marked to market daily based upon values from third party vendors or quotations from market makers to the extent available and the change in value, if any, is recorded on the Statement of assets and liabilities. In the event that market quotations are not readily available or deemed unreliable, swaps are valued at fair value as determined in good faith by or under the direction of the Board.

GAAP requires disclosure surrounding the various inputs that are used in determining the value of the Portfolio's investments. These inputs are summarized into the three broad levels listed below:

Level 1—Unadjusted quoted prices in active markets for identical investments.

Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risks.

Level 3—Unobservable inputs inclusive of the Portfolio's own assumptions in determining the fair value of investments.

In accordance with the requirements of GAAP, a fair value hierarchy has been included near the end of each Portfolio's Portfolio of investments.

In January 2010, FASB issued Accounting Standards Update No. 2010-06 "Improving Disclosures about Fair Value Measurements" ("ASU 2010-06"). ASU No. 2010-06 will require reporting entities to make new disclosures about amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, and information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. The new and revised disclosures have been implemented for annual and interim periods beginning after December 15, 2009 except for the disclosures surrounding purchases, sales, issuances and settlements on a gross basis in the reconciliation of Level 3 fair value measurements, which have been implemented for annual and interim periods beginning after December 15, 2010.

308

PACE Select Advisors Trust

Notes to financial statements

In April 2011, the FASB issued Accounting Standards Update No. 2011-03 ("ASU 2011-03") which relates to the accounting for repurchase agreements and similar agreements, including mortgage dollar rolls, that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. ASU 2011-03 modifies the criteria for determining effective control of transferred assets and as a result certain agreements may now be accounted for as secured borrowings. ASU 2011-03 is effective prospectively for new transfers and existing transactions that are modified in the first interim or annual period beginning on or after December 15, 2011. Management is currently evaluating the implications of this change and its impact on the financial statements.

In May 2011, FASB Issued ASU No. 2011-04 "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and International Financial Reporting Standards ("IFRS")" ("ASU 2011-04"). ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between US GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosure about amounts and reason for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU 2011-04 and its impact on the financial statements.

The provisions of ASC Topic 815 "Derivatives and Hedging" ("ASC Topic 815") require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk related contingent features in derivative agreements. Since investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of operations, they do not qualify for hedge accounting under ASC Topic 815. Accordingly, even though a Portfolio's investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of disclosure under ASC Topic 815. ASC Topic 815 requires (1) objectives for using derivative instruments be disclosed in terms of underlying risk and accounting designation, (2) the fair values of derivative instruments and their gains and losses be disclosed in a tabular format, and (3) information be disclosed about credit-risk contingent features of derivatives contracts. Certain derivative contracts entered into by the Portfolios may contain credit risk related contingent features that could be triggered subject to certain circumstances. If triggered, the derivative counterparty could request additional cash margin and/or terminate the derivative contract. Details of this disclosure can be found below as well as in the Portfolio of investments. The volume of derivatives that is presented in the Portfolio of investments of each Portfolio is consistent with the derivative activity during the year ended July 31, 2011 except for PACE Government Securities Fixed Income Investments, for which the derivatives volume during the year was greater than at year end. The Portfolios may be sellers of protection through credit default swap agreements which are by nature credit-risk contingent (the terms of these agreements can be found within the Portfolio of investments, with further discussion in the Notes to financial statements); however, the Portfolios are not aware of any additional credit-risk contingent features on other derivative contracts held by the Portfolios.

At July 31, 2011, the Portfolios had the following derivatives categorized by underlying risk:

Asset derivatives1
		Interest rate risk		Foreign exchange risk		Credit risk		Equity risk		Total
PACE Intermediate Fixed Income Investments
	Futures contracts	$	809,277		—		—		—	$	809,277
	Options purchased		51,323		—		—		—		51,323
	Forward foreign currency contracts		—	$	372,307		—		—		372,307
	Swap agreements		88,664		—		—		—		88,664
	Total value	$	949,264	$	372,307		—		—	$	1,321,571

309

PACE Select Advisors Trust

Notes to financial statements

Asset derivatives1
		Interest rate risk		Foreign exchange risk		Credit risk		Equity risk		Total
PACE Strategic Fixed Income Investments
	Futures contracts	$	4,230,444		—		—		—	$	4,230,444
	Forward foreign currency contracts		—	$	1,753,580		—		—		1,753,580
	Swap agreements		952,737		—	$	925,283		—		1,878,020
	Total value	$	5,183,181	$	1,753,580	$	925,283		—	$	7,862,044
PACE International Fixed Income Investments
	Futures contracts	$	2,956,307		—		—		—	$	2,956,307
	Forward foreign currency contracts		—	$	5,005,083		—		—		5,005,083
	Total value	$	2,956,307	$	5,005,083		—		—	$	7,961,390
PACE International Equity Investments
	Futures contracts		—		—		—	$	48,658	$	48,658
	Forward foreign currency contracts		—	$	1,652,114		—		—		1,652,114
	Total value		—	$	1,652,114		—	$	48,658	$	1,700,772
PACE Alternative Strategies Investments
	Futures contracts	$	5,511,200		—		—	$	1,299,238	$	6,810,438
	Options purchased		5,221,183	$	899,045		—		482,699		6,602,927
	Forward foreign currency contracts		—		11,831,034		—		—		11,831,034
	Swap agreements		5,414,274		—	$	1,635,626		3,808,314		10,858,214
	Total value	$	16,146,657	$	12,730,079	$	1,635,626	$	5,590,251	$	36,102,613

¹  In the Statement of assets and liabilities, options purchased are shown within Investments in securities of unaffiliated issuers, at value, swap agreements are shown at value while forward foreign currency contracts are shown using unrealized appreciation. Futures contracts are reported in the table above using the cumulative appreciation as detailed in the futures contract table at the end of the Portfolio of investments, but only the variation margin to be received, if any, is reported within the Statement of assets and liabilities.

Liability derivatives2
		Interest rate risk			Foreign exchange risk			Credit risk			Equity risk			Total
PACE Intermediate Fixed Income Investments
	Futures contracts	$	(1,357,413	)		—			—			—		$	(1,357,413	)
	Forward foreign currency contracts		—		$	(325,534	)		—			—			(325,534	)
	Swap agreements		(1,657,117	)		—		$	(19,937	)		—			(1,677,054	)
	Total value	$	(3,014,530	)	$	(325,534	)	$	(19,937	)		—		$	(3,360,001	)
PACE Strategic Fixed Income Investments
	Written options and swaptions	$	(131,358	)		—			—			—		$	(131,358	)
	Forward foreign currency contracts		—		$	(3,906,423	)		—			—			(3,906,423	)
	Swap agreements		(112,070	)		—		$	(946,751	)		—			(1,058,821	)
	Total value	$	(243,428	)	$	(3,906,423	)	$	(946,751	)		—		$	(5,096,602	)
PACE International Fixed Income Investments
	Futures contracts	$	(3,552,110	)		—			—			—		$	(3,552,110	)
	Forward foreign currency contracts		—		$	(2,142,599	)		—			—			(2,142,599	)
	Total value	$	(3,552,110	)	$	(2,142,599	)		—			—		$	(5,694,709	)
PACE High Yield Investments
	Forward foreign currency contracts		—		$	(1,205,944	)		—			—		$	(1,205,944	)
	Total value		—		$	(1,205,944	)		—			—		$	(1,205,944	)
PACE International Equity Investments
	Futures contracts		—			—			—			(156,314	)	$	(156,314	)
	Forward foreign currency contracts		—		$	(688,401	)		—			—			(688,401	)
	Total value		—		$	(688,401	)		—			(156,314	)	$	(844,715	)

310

PACE Select Advisors Trust

Notes to financial statements

Liability derivatives2
		Interest rate risk			Foreign exchange risk			Credit risk			Equity risk			Total
PACE Alternative Strategies Investments
	Futures contracts	$	(7,610,549	)		—			—		$	(1,758,298	)	$	(9,368,847	)
	Written options and swaptions		(2,604,115	)	$	(1,657,131	)		—			(907,721	)		(5,168,967	)
	Forward foreign currency contracts		—			(17,465,398	)		—			—			(17,465,398	)
	Swap agreements		(4,524,628	)		—		$	(3,367,016	)		(4,687,419	)		(12,579,063	)
	Total value	$	(14,739,292	)	$	(19,122,529	)	$	(3,367,016	)	$	(7,353,438	)	$	(44,582,275	)

²  In the Statement of assets and liabilities, swap agreements, written options and swaptions are shown at value while forward foreign currency contracts are shown using unrealized depreciation. Futures contracts are reported in the table above using the cumulative depreciation as detailed in the futures contract table at the end of the Portfolio of investments, but only the variation margin to be paid, if any, is reported within the Statement of assets and liabilities.

Transactions in derivative instruments during the year ended July 31, 2011, were as follows:

		Interest rate risk			Foreign exchange risk			Credit risk			Equity risk		Total
PACE Government Securities Fixed Income Investments
	Net realized gain (loss)3
	Futures contracts	$	315,895			—			—			—	$	315,895
	Written options and swaptions		1,092,053			—			—			—		1,092,053
	Swap agreements		(1,404,955	)		—		$	(128,078	)		—		(1,533,033	)
	Total net realized gain (loss)	$	2,993			—		$	(128,078	)		—	$	(125,085	)
	Net change in unrealized appreciation/depreciation4
	Futures contracts	$	(261,891	)		—			—			—	$	(261,891	)
	Written options and swaptions		(130,362	)		—			—			—		(130,362	)
	Swap agreements		—			—		$	(36,836	)		—		(36,836	)
	Total net change in unrealized appreciation/depreciation	$	(392,253	)		—		$	(36,836	)		—	$	(429,089	)
PACE Intermediate Fixed Income Investments
	Net realized gain (loss)3
	Futures contracts	$	803,461			—			—			—	$	803,461
	Options purchased5		(24,277	)		—			—			—		(24,277	)
	Forward foreign currency contracts		—		$	215,208			—			—		215,208
	Swap agreements		(325,022	)		—		$	733			—		(324,289	)
	Total net realized gain (loss)	$	454,162		$	215,208		$	733			—	$	670,103
	Net change in unrealized appreciation/depreciation4
	Futures contracts	$	19,883			—			—			—	$	19,883
	Options purchased5		(204,247	)		—			—			—		(204,247	)
	Forward foreign currency contracts		—		$	(323,921	)		—			—		(323,921	)
	Swap agreements		(1,568,453	)		—		$	9,926			—		(1,558,527	)
	Total net change in unrealized appreciation/depreciation	$	(1,752,817	)	$	(323,921	)	$	9,926			—	$	(2,066,812	)

311

PACE Select Advisors Trust

Notes to financial statements

		Interest rate risk			Foreign exchange risk			Credit risk		Equity risk			Total
PACE Strategic Fixed Income Investments
	Net realized gain (loss)3
	Futures contracts	$	6,515,426			—			—		—		$	6,515,426
	Written options and swaptions		(828,009	)		—			—		—			(828,009	)
	Forward foreign currency contracts		—		$	(6,934,292	)		—		—			(6,934,292	)
	Swap agreements		327,722			—		$	231,185		—			558,907
	Total net realized gain (loss)	$	6,015,139		$	(6,934,292	)	$	231,185		—		$	(687,968	)
	Net change in unrealized appreciation/depreciation4
	Futures contracts	$	3,322,876			—			—		—		$	3,322,876
	Written options and swaptions		1,261,319			—			—		—			1,261,319
	Forward foreign currency contracts		—		$	105,006			—		—			105,006
	Swap agreements		(731,685	)		—		$	331,083		—			(400,602	)
	Total net change in unrealized appreciation/depreciation	$	3,852,510		$	105,006		$	331,083		—		$	4,288,599
PACE International Fixed Income Investments
	Net realized gain (loss)3
	Futures contracts	$	(5,221,921	)		—			—		—		$	(5,221,921	)
	Forward foreign currency contracts		—		$	13,581,572			—		—			13,581,572
	Total net realized gain (loss)	$	(5,221,921	)	$	13,581,572			—		—		$	8,359,651
	Net change in unrealized appreciation/depreciation4
	Futures contracts	$	1,254,317			—			—		—		$	1,254,317
	Forward foreign currency contracts				$	(1,924,130	)		—		—			(1,924,130	)
	Total net change in unrealized appreciation/depreciation	$	1,254,317		$	(1,924,130	)		—		—		$	(669,813	)
PACE High Yield Investments
	Net realized gain (loss)3
	Forward foreign currency contracts		—		$	(3,740,949	)		—		—		$	(3,740,949	)
	Total net realized gain (loss)		—		$	(3,740,949	)		—		—		$	(3,740,949	)
	Net change in unrealized appreciation/depreciation4
	Forward foreign currency contracts		—		$	(238,831	)		—		—		$	(238,831	)
	Total net change in unrealized appreciation/depreciation		—		$	(238,831	)		—		—		$	(238,831	)
PACE International Equity Investments
	Net realized gain (loss)3
	Futures contracts		—			—			—	$	317,834		$	317,834
	Forward foreign currency contracts		—		$	2,546,075			—		—			2,546,075
	Total net realized gain (loss)		—		$	2,546,075			—	$	317,834		$	2,863,909
	Net change in unrealized appreciation/depreciation4
	Futures contracts		—			—			—	$	(163,901	)	$	(163,901	)
	Forward foreign currency contracts		—		$	857,964			—		—			857,964
	Total net change in unrealized appreciation/depreciation		—		$	857,964			—	$	(163,901	)	$	694,063

312

PACE Select Advisors Trust

Notes to financial statements

		Interest rate risk			Foreign exchange risk			Credit risk			Equity risk			Total
PACE Alternative Strategies Investments
	Net realized gain (loss)3
	Futures contracts	$	(3,805,891	)		—			—		$	1,544,262		$	(2,261,629	)
	Options purchased5		23,930			(8,888	)		—			(1,176,244	)		(1,161,202	)
	Written options and swaptions		(248,775	)		—			—			1,774,492			1,525,717
	Forward foreign currency contracts		—			(11,726,240	)		—			—			(11,726,240	)
	Swap agreements		(1,252,774	)		—		$	2,079,198			(462,596	)		363,828
	Total net realized gain (loss)	$	(5,283,510	)	$	(11,735,128	)	$	2,079,198		$	1,679,914		$	(13,259,526	)
	Net change in unrealized appreciation/depreciation4
	Futures contracts	$	(1,303,747	)		—			—		$	(443,126	)	$	(1,746,873	)
	Options purchased5		50,212		$	(976,819	)		—			79,317			(847,290	)
	Written options and swaptions		95,079			(260,241	)					24,973			(140,189	)
	Forward foreign currency contracts		—			(5,896,640	)		—			—			(5,896,640	)
	Swap agreements		759,524			—		$	(932,907	)		(879,105	)		(1,052,488	)
	Total net change in unrealized appreciation/depreciation	$	(398,932	)	$	(7,133,700	)	$	(932,907	)	$	(1,217,941	)	$	(9,683,480	)

³  The net realized gains (losses) from futures, written options and swaptions, swap agreements and forward foreign currency contracts are shown in the Statement of operations.

⁴  The net change in unrealized appreciation/depreciation on futures, written options and swaptions, swap agreements and forward foreign currency contracts are shown in the Statement of operations.

⁵  Realized and unrealized gain (loss) is included in net realized gain (loss) from investments and net change in unrealized appreciation/ depreciation of investments in the Statement of operations.

Repurchase agreements—The Portfolios may purchase securities or other obligations from a bank or securities dealer (or its affiliate), subject to the seller's agreement to repurchase them at an agreed upon date (or upon demand) and price. The Portfolios maintain custody of the underlying obligations prior to their repurchase, either through its regular custodian or through a special "tri-party" custodian or sub-custodian that maintains a separate account for both the Portfolios and their counterparty. The underlying collateral is valued daily 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 generally have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements involving obligations other than US government securities (such as commercial paper, corporate bonds, equities and mortgage loans) may be subject to special risks and may not have the benefit of certain protections in the event of counterparty insolvency. If the seller (or seller's guarantor, if any) becomes insolvent, the Portfolios may suffer delays, costs and possible losses in connection with the disposition or retention of the collateral. 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) may participate in joint repurchase agreement transactions with other funds managed, advised or sub-advised by UBS Global AM.

Under certain circumstances, the Portfolios may engage in a repurchase agreement transaction with a yield of zero in order to invest cash amounts remaining in its portfolio at the end of the day in order to avoid having the Portfolios assessed a fee for uninvested cash held in a business account at a bank.

Restricted securities—The Portfolios may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Portfolio's Portfolio of investments.

313

PACE Select Advisors Trust

Notes to financial statements

Investment transactions, investment income and expenses—Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions and foreign exchange transactions are calculated using the identified cost method. Dividend income is recorded net of withholding taxes on the ex-dividend date ("ex-date") (except in the case of certain dividends from foreign securities which 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.

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.

Foreign currency translation—The books and records of the Portfolios are maintained in US dollars. Foreign currency amounts are translated into US dollars as follows: (1) the foreign currency market value of investment securities and other assets and liabilities stated in foreign currencies are translated into US dollars based on the current exchange rates each business day; 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 on the Statement of operations.

The Portfolios do not generally isolate the effects of fluctuations in foreign exchange rates from the effects of fluctuations in the market prices of 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 US federal income tax regulations; such amount is categorized as realized foreign currency transaction gain or loss for both financial reporting and income tax purposes. Net realized foreign currency transaction 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 contracts ("forward contracts") as part of its investment strategy, in connection with planned purchases or sales of securities or to hedge the US 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 investment sub-advisor 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 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 Portfolios 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 determined pursuant to the Portfolios' segregation policies as disclosed in the Trust's Statement of Additional Information.

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 US dollar or each other.

314

PACE Select Advisors Trust

Notes to financial statements

Fluctuations in the value of open forward contracts are recorded for book purposes as unrealized gains or losses on forward foreign currency contracts by the Portfolios. Realized gains and losses on forward foreign currency contracts include net gains or losses recognized by the Portfolios on contracts which have matured. Net realized foreign currency gain (loss) from forward foreign currency contracts is treated as ordinary income (loss) for income tax reporting purposes by all Portfolios except PACE International Fixed Income Investments and PACE High Yield Investments. These two Portfolios treat net realized gain (loss) from forward foreign currency contracts as capital gain (loss) for income tax reporting.

Securities traded on to-be-announced basis—The Portfolios may from time to time purchase securities on a to-be-announced ("TBA") basis. In a TBA transaction, the Portfolio commits to purchasing or selling securities for which all specific information is not yet known at the time of the trade, particularly the face amount and maturity date of the underlying security transactions. Securities purchased on a TBA basis are not settled until they are delivered to the Portfolio, normally 15 to 45 days later. Beginning on the date the Portfolio enters into a TBA transaction, cash, US government securities or other liquid securities are segregated in an amount equal in value to the purchase price of the TBA security. These transactions are subject to market fluctuations, and their current value is determined in the same manner as for other securities.

Option writing—Certain Portfolios may write (sell) put and call options on securities or derivative instruments 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 on 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 or derivative instrument, and the liability related to such option is extinguished. If a call option which the Portfolio has written is exercised, the Portfolio recognizes a realized gain or loss (long-term or short-term, depending on the holding period of the underlying security) from the sale of the underlying security or derivative instrument 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 or derivative instrument which the Portfolio purchases upon exercise of the option.

In writing an option, the Portfolios bear the market risk of an unfavorable change in the price of the derivative instrument, security or currency underlying the written option. Exercise of an option written by a Portfolio could result in the Portfolio selling or buying a derivative instrument, security or currency at a price different from current market value.

In the ordinary course of business, the Portfolios may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Portfolios. Based on its history and experience, the Portfolios feel that the likelihood of such an event is remote.

In the normal course of trading activities, the Portfolios trade and hold certain fair valued derivative contracts that constitute guarantees. Such contracts include written put options, where the Portfolios would be obligated to purchase securities at specified prices (i.e. the options are exercised by the counterparties). The maximum payout for these contracts is limited to the number of put option contracts written and the related strike prices, respectively. At July 31, 2011, PACE Strategic Fixed Income Investments and PACE Alternative Strategies Investments had maximum payout amounts of approximately $318,000 and $3,383,184, respectively, relating to written put option contracts, which expire between one month and five years. Maximum payout amounts could be offset by the subsequent sale, if any, of assets obtained via the execution of a payout event.

315

PACE Select Advisors Trust

Notes to financial statements

The fair value of written put option contracts as of July 31, 2011 is $131,358 and $3,980,835 for PACE Strategic Fixed Income Investments and PACE Alternative Strategies Investments, respectively, and is included as a liability in Options and swaptions written, at fair value on the Statement of assets and liabilities.

Purchased options—Certain Portfolios may also purchase put and call options. Purchasing call options tends to increase exposure to the underlying instrument. Purchasing put options tends to decrease exposure to the underlying instrument. The Portfolio pays a premium which is included on the Statement of assets and liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying future, security or currency transaction to determine the realized gain or loss.

Futures contracts—Certain Portfolios may purchase or sell futures contracts to increase or reduce their exposure to an asset class without purchasing or selling the underlying securities. They may do this to enhance or realize gains, as a hedge and/or to manage the average duration of the Portfolio. Using futures contracts involves various market risks, including interest rate and equity risk as well as the risks that there may be an illiquid market or that a change in the value of the contract may not correlate with changes in the value of the underlying securities.

Upon entering into a futures contract, a Portfolio is required to deliver to a broker an amount of cash and/or liquid securities equal to a certain percentage of the contract amount. This amount is known as the "initial margin". Subsequent payments, known as "variation margin", generally are made or received by the Portfolio each day depending on the fluctuations in the value of the underlying futures contracts, except that in the case of certain futures contracts payments may be made or received at settlement. Such variation margin is recorded for financial statement purposes on a daily basis as an unrealized gain or loss on futures until the financial futures contract is closed, at which time the net gain or loss is reclassified to realized gain or loss on futures.

Loan assignments—Certain Portfolios may invest in secured or unsecured fixed or floating rate loans ("Loans") arranged through private negotiations between a borrowing corporation, government or other entity and one or more financial institutions ("Lenders") which may be in the form of participations ("Participations") in Loans or assignments ("Assignments") of all or a portion of Loans from third parties. A Portfolio may invest in multiple series or tranches of a Loan, which may have varying terms and carry different associated risks. Participations typically result in a Portfolio having a contractual relationship only with the Lender, not with the borrower. A Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of the payments from the borrower. In connection with purchasing Participations, a Portfolio generally has no direct right to enforce compliance by the borrower with the terms of the loan agreement relating to the Loan, or any rights of set-off against the borrower, and a Portfolio may not directly benefit from any collateral supporting the Loan in which it has purchased the Participation. As a result, a Portfolio assumes the credit risk of both the borrower and the Lender that is selling the Participation. In the event of the insolvency of the selling Lender, the Portfolio may be treated as a general creditor of that Lender and may not benefit from any set-off between the Lender and the borrower. A Portfolio will acquire Participations only if its sub-advisor determines that the selling Lender is creditworthy. When a Portfolio purchases Assignments from Lenders, it acquires direct rights against the borrower on the Loan. In an Assignment, the Portfolio is entitled to receive payments directly from the borrower and, therefore, does not depend on the selling bank to pass these payments onto the Portfolio. However, because Assignments are arranged through private negotiations between potential assignees and assignors, the rights and obligations acquired by a Portfolio as the purchaser of an Assignment may differ from, and be more limited than, those held by the assigning Lender.

316

PACE Select Advisors Trust

Notes to financial statements

Short sales "Against the Box"—Each Portfolio (other than PACE Money Market Investments and PACE Municipal Fixed Income Investments) may engage in short sales of securities it owns or has the right to acquire at no added cost through conversion or exchange of other securities it owns (short sales "against the box"). To make delivery to the purchaser in a short sale, the executing broker borrows the securities being sold short on behalf of a Portfolio, and that Portfolio is obligated to replace the securities borrowed at a date in the future. When a Portfolio sells short, it establishes a margin account with the broker effecting the short sale and deposits collateral with the broker. In addition, the Portfolio maintains, in a segregated account with its custodian, the securities that could be used to cover the short sale. Each Portfolio may incur transaction costs, including dividend and interest expense, in connection with opening, maintaining and closing short sales "against the box".

A Portfolio might make a short sale "against the box" to hedge against market risks when its sub-advisor believes that the price of a security may decline, thereby causing a decline in the value of a security owned by the Portfolio or a security convertible into or exchangeable for a security owned by the Portfolio. In such case, any loss in the Portfolio's long position after the short sale should be reduced by a corresponding gain in the short position. Conversely, any gain in the long position after the short sale should be reduced by a corresponding loss in the short position. The extent to which gains or losses in the long position are reduced will depend upon the amount of the securities sold short relative to the amount of the securities a Portfolio owns, either directly or indirectly, and in the case where the Portfolio owns convertible securities, changes in the investment values or conversion premiums of such securities.

Short sales—PACE Government Securities Fixed Income Investments (with respect to securities issued by the US Treasury and TBA securities coupon trades), PACE Global Real Estate Securities Investments and PACE Alternative Strategies Investments may engage in short sale transactions in which the Portfolio sells a security it does not own (or does not have the right to acquire at no added cost). The Portfolio must borrow the security to make delivery to the buyer. In a short sale where a Portfolio is not holding a position in the same security (or convertible into the same security), the Portfolio will maintain an account containing cash or liquid assets at such a level that the amount deposited in the account plus that amount deposited with the broker as collateral will, at minimum, equal the current value of the investment sold short. The initial amount of a short sale is recorded as a liability which is marked to market daily. Fluctuations in the value of this liability are recorded as unrealized gains or losses on the Statement of operations. A Portfolio incurs transaction costs, including interest expenses, in connection with opening, maintaining and closing short sales. Because PACE Alternative Strategies Investments is multi-managed and has the ability to engage in short sales, one investment advisor may take a short position and another advisor may take a long position in the same security. A Portfolio will be required to pay the buyer for any dividends or other corporate actions and interest payable on securities while those securities are in a short position. These dividends and interest are booked as an expense or liability to the Portfolio. A Portfolio will incur a loss as a result of the short sale if the price of the security increases between the date of the short sale and the date on which the Portfolio replaces the borrowed security, and a Portfolio will realize a gain if the security declines in price between those same dates. Because a Portfolio's loss on a short sale arises from increases in the value of the investment sold short, such loss, like the potential increase in price of the security sold short, is theoretically unlimited. In addition, a Portfolio's investments held long could decline in value at the same time the value of the investment sold short increases, thereby increasing the Portfolio's potential for loss. PACE Government Securities Fixed Income Investments and PACE Global Real Estate Securities Investments did not engage in uncovered short sales during the year ended July 31, 2011.

Treasury roll transactions—Certain Portfolios may enter into treasury roll transactions. A treasury roll transaction involves the sale of a Treasury security, with an agreement to repurchase the same security at an agreed upon price and date. Treasury rolls may constitute a financing transaction and the difference between the sale and repurchase price represents interest expense at an agreed upon rate. Whether such a transaction produces a positive impact on performance depends upon whether the income and gains on the securities purchased with

317

PACE Select Advisors Trust

Notes to financial statements

the proceeds received from the sale of the security exceeds the interest expense incurred by the Portfolio. Treasury rolls are not considered purchases and sales and any gains or losses incurred on the treasury rolls will be deferred until the Treasury securities are disposed.

Treasury roll transactions involve the risk that the market value of the securities that the Portfolio is required to purchase may decline below the agreed upon purchase price of those securities. If investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities sold as part of the treasury roll, the use of this technique will adversely impact the investment performance of the Portfolio. During the year ended July 31, 2011, the only Portfolio that utilizied treasury roll transactions was PACE Intermediate Fixed Income Investments.

Reverse repurchase agreements—Certain Portfolios may enter into reverse repurchase agreements with qualified third party banks, securities dealers or their affiliates. 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 a Portfolio enters into reverse repurchase agreements, the Portfolio establishes and maintains a segregated account with the Portfolio's custodian containing liquid securities having a value not less than the repurchase price, including accrued interest, of the reverse repurchase agreement. For the year ended July 31, 2011, PACE Government Securities Fixed Income Investments had an average daily reverse repurchase agreement of $1,257,143 for 7 days with a related weighted average annualized interest rate of 0.245%, which resulted in $60 of interest expense and PACE Intermediate Fixed Income Investments had an average daily reverse repurchase agreement of $5,412,500 for 1 day with a related weighted average annualized interest rate of 0.23%, which resulted in $35 of interest expense. There were no reverse repurchase agreements outstanding on July 31, 2011.

Interest rate swap agreements—Certain Portfolios may enter into interest rate swap agreements. This type of swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to a specified interest rate(s) for a specified amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other. Upfront payments made and/or received by the Portfolio are recorded as an adjustment to cost.

Risks may arise as a result of the failure of the counterparty to the swap contract to comply with the terms of the contract. The loss incurred by the failure of a counterparty is generally limited to the net interest payment to be received by the Portfolio. Therefore, the Portfolio considers the creditworthiness of the counterparty to a swap contract in evaluating potential credit risk.

The Portfolio accrues for interim payments on swap contracts on a daily basis, with the net amount recorded within swap agreements at value on the Statement of assets and liabilities. Once interim payments are settled in cash, the net amount is recorded as realized gain/loss on swaps, in addition to realized gain/loss recorded upon the termination of swap contracts on the Statement of operations. Fluctuations in the value of swap contracts are recorded for financial statement purposes as unrealized appreciation or depreciation of swaps within the Statement of operations.

Inflation swaps—Inflation swap agreements are used to hedge inflation risk by transferring inflation risk from one party to another through an exchange of cash flows. In an inflation swap, one party pays a fixed rate on a notional principal amount while the other party pays a floating rate linked to an inflation index on that same notional amount. The party paying the floating rate pays the inflation adjusted rate multiplied by the notional principal amount. If the average inflation rate over the term of the swap is the same as the fixed rate of the swap, the two legs will have the same value and the swap will break even.

318

PACE Select Advisors Trust

Notes to financial statements

Credit default swap agreements—Credit default swap agreements involve commitments to make or receive payments in the event of a default of a security or a credit event. As a buyer, the Portfolio would make periodic payments to the counterparty, and the Portfolio would receive payments only upon the occurrence of a credit event. If no credit event occurs, the Portfolio will lose its periodic stream of payments over the term of the contract. However, if a credit event does occur, the Portfolio typically would receive full notional value for a reference obligation that may have little or no value. As a seller, the Portfolio would receive periodic payments from the counterparty, and the Portfolio would make payments only upon the occurrence of a credit event. If no default or credit event occurs, the Portfolio will gain the periodic stream of payments it received over the term of the contract and the counterparty will lose its periodic stream of payments over the term of the contract. However, if a default or credit event occurs, the Portfolio typically pays full notional value for a reference obligation that may have little or no value. Credit default swaps may involve greater risks than if the Portfolio had invested in the reference obligation directly and are subject to general market risk, liquidity risk and credit risk. Upfront payments made and/or received by the Portfolio are recorded as an adjustment to cost.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a list of a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of referenced credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name's weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. A Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds with a credit default swap on indices which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Credit default swap agreements on corporate issues or sovereign issues of an emerging country involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection's right to choose the deliverable obligation with the lowest value following a credit event). The Portfolio may use credit default swaps on corporate issues or sovereign issues of an emerging country to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer's default.

The maximum potential amount of future payments (undiscounted) that a Portfolio as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement which may exceed the amount of unrealized appreciation or depreciation reflected on the Statement of assets and liabilities. Notional amounts of all credit default swap agreements outstanding as of July 31, 2011 for which a Portfolio is the seller of protection are disclosed under the sections "Credit default swaps on credit indices—sell protection" and "Credit default swaps on corporate and sovereign issues—sell protection" in the Portfolios of investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or

319

PACE Select Advisors Trust

Notes to financial statements

net amounts received from the settlement of buy protection credit default swap agreements entered into, if any, by a Portfolio for the same referenced entity or entities.

The use of swaps involves investment techniques and risks different from those associated with ordinary portfolio security transactions. If a Portfolio's sub-adviser is incorrect in its forecast of market values, interest rates and other applicable factors, the investment performance of the Portfolios will be less favorable than it would have been if this investment technique was never used. Swaps do not involve the delivery of securities and are subject to counterparty risk. If the other party to a swap defaults and fails to consummate the transaction, a Portfolio's risk of loss will consist of the net amount of interest or other payments that the Portfolio is contractually entitled to receive. Therefore, the Portfolio would consider the creditworthiness of the counterparty to a swap agreement in evaluating potential credit risk.

Total return swaps—Total return swap contracts involve commitments to pay interest in exchange for a market-linked return both based on notional amounts. To the extent the total return of the security or index underlying the transactions exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty. At July 31, 2011, there were no Portfolios that were invested in total return swap contracts.

Variance swaps—Variance swap agreements involve two parties agreeing to exchange cash flows based on the measured variance (or square of volatility) of a specified underlying asset. One party agrees to exchange a "fixed rate" or strike price payment for the "floating rate" or realized price variance on the underlying asset with respect to the notional amount. At inception, the strike price is generally chosen such that the fair value of the swap is zero. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price variance of the underlying asset and the strike price multiplied by the notional amount. As a receiver of the realized price variance, the Portfolio would receive the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would owe the payoff amount when the variance is less than the strike. As a payer of the realized price variance the Portfolio would owe the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would receive the payoff amount when the variance is less than the strike.

Dividends and distributions—Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification.

Concentration of risk

Investing in securities of foreign issuers and currency transactions may involve certain considerations and risks not typically associated with investments in the United States. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region, which could cause the securities and their markets to be less liquid and prices more volatile than those of comparable US companies and US government securities. These risks are greater with respect to securities of issuers located in emerging market countries in which PACE International Fixed Income Investments, PACE High Yield Investments, PACE International Equity Investments, PACE International Emerging Markets Equity Investments, PACE Global Real Estate Securities Investments and PACE Alternative Strategies Investments are authorized to invest.

Small capitalization ("small cap") companies may be more vulnerable than larger capitalization companies to adverse business or economic developments. Small cap companies may also have limited product lines, markets or

320

PACE Select Advisors Trust

Notes to financial statements

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 capitalization companies or the market averages in general and therefore may involve greater risk than investing in larger capitalization 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. These risks are greater with respect to the securities in which PACE Small/Medium Co Value Equity Investments and PACE Small/Medium Co Growth Equity Investments tend to invest.

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 management and administration fees and other transactions with affiliates

The Trust has entered into an investment management and administration contract ("Management Contract") with UBS Global AM. In accordance with the Management Contract, each Portfolio paid UBS Global AM investment management and administration fees, which were accrued daily and paid monthly, in accordance with the following schedule as of July 31, 2011:

Portfolio	Annual rate as a percentage of each Portfolio's average daily net assets
PACE Money Market Investments	0.350%
PACE Government Securities Fixed Income Investments	0.650% up to $250 million 0.600% above $250 million up to $500 million 0.575% above $500 million up to $750 million 0.550% above $750 million up to $1 billion 0.525% above $1 billion
PACE Intermediate Fixed Income Investments	0.550% up to $250 million 0.500% above $250 million up to $500 million 0.475% above $500 million up to $750 million 0.450% above $750 million up to $1 billion 0.425% above $1 billion
PACE Strategic Fixed Income Investments	0.650% up to $250 million 0.600% above $250 million up to $500 million 0.575% above $500 million up to $750 million 0.550% above $750 million up to $1 billion 0.525% above $1 billion
PACE Municipal Fixed Income Investments	0.550% up to $250 million 0.500% above $250 million up to $500 million 0.475% above $500 million up to $750 million 0.450% above $750 million up to $1 billion 0.425% above $1 billion
PACE International Fixed Income Investments	0.750% up to $500 million 0.725% above $500 million up to $1 billion 0.700% above $1 billion
PACE High Yield Investments	0.800% up to $500 million 0.750% above $500 million up to $1 billion 0.725% above $1 billion up to $1.5 billion 0.700% above $1.5 billion up to $2 billion 0.675% above $2 billion
PACE Large Co Value Equity Investments	0.800% up to $250 million 0.770% above $250 million up to $500 million 0.730% above $500 million up to $1 billion 0.700% above $1 billion

321

PACE Select Advisors Trust

Notes to financial statements

Portfolio	Annual rate as a percentage of each Portfolio's average daily net assets
PACE Large Co Growth Equity Investments	0.800% up to $500 million 0.775% above $500 million up to $1 billion 0.750% above $1 billion up to $1.5 billion 0.725% above $1.5 billion up to $2 billion 0.700% above $2 billion
PACE Small/Medium Co Value Equity Investments	0.800% up to $500 million 0.775% above $500 million
PACE Small/Medium Co Growth Equity Investments	0.800% up to $500 million 0.775% above $500 million
PACE International Equity Investments	0.900% up to $500 million 0.875% above $500 million up to $1 billion 0.850% above $1 billion up to $1.5 billion 0.825% above $1.5 billion up to $2 billion 0.800% above $2 billion
PACE International Emerging Markets Equity Investments	1.100% up to $500 million 1.075% above $500 million up to $1 billion 1.050% above $1 billion up to $1.5 billion 1.025% above $1.5 billion up to $2 billion 1.000% above $2 billion
PACE Global Real Estate Securities Investments	0.800% up to $500 million 0.750% above $500 million up to $1 billion 0.725% above $1 billion up to $1.5 billion 0.700% above $1.5 billion up to $2 billion 0.675% above $2 billion
PACE Alternative Strategies Investments1	1.400% up to $500 million 1.350% above $500 million up to $1 billion 1.300% above $1 billion up to $1.5 billion 1.275% above $1.5 billion up to $2 billion 1.250% above $2 billion

¹  At a meeting held on September 14, 2011, the Board of Trustees for PACE Alternative Strategies Investments approved a fee waiver pursuant to which, effective October 1, 2011, UBS Global AM is voluntarily obligated to waive 0.05% of its management fee through November 30, 2012.

Under separate Sub-Advisory Agreements, with the exception of PACE Money Market Investments, UBS Global AM (not the Portfolios) pays each investment sub-advisor a fee from the investment management and administration fees which UBS Global AM receives, which is accrued daily and paid monthly, in accordance with the following schedule:

Portfolio	Investment sub-advisor	Annual rate as a percentage of each sub-advisor's portion of the Portfolio's average daily net assets
PACE Government Securities Fixed Income Investments	Pacific Investment Management Company LLC	0.200%
PACE Intermediate Fixed Income Investments	BlackRock Financial Management, Inc.	0.200% up to $120 million 0.100% above $120 million
PACE Strategic Fixed Income Investments	Pacific Investment Management Company LLC	0.250%
PACE Municipal Fixed Income Investments	Standish Mellon Asset Management Company LLC	0.200% up to $60 million 0.150% above $60 million

322

PACE Select Advisors Trust

Notes to financial statements

Portfolio	Investment sub-advisor	Annual rate as a percentage of each sub-advisor's portion of the Portfolio's average daily net assets
PACE International Fixed Income Investments	Rogge Global Partners plc	0.250% up to $150 million 0.180% above $150 million up to $500 million 0.150% above $500 million
PACE High Yield Investments	MacKay Shields LLC	0.350%
PACE Large Co Value Equity Investments	Institutional Capital LLC Pzena Investment Management, LLC1 Westwood Management Corp.	0.300% 0.700% up to $25 million 0.500% above $25 million up to $100 million 0.400% above $100 million up to $300 million 0.350% above $300 million 0.300%
PACE Large Co Growth Equity Investments2	Delaware Management Company Marsico Capital Management, LLC Roxbury Capital Management, LLC Wellington Management Company, LLP	0.400% 0.300% 0.250% up to $250 million 0.200% above $250 million 0.300%
PACE Small/Medium Co Value Equity Investments	Buckhead Capital Management, LLC Metropolitan West Capital Management, LLC Systematic Financial Management, L.P.	0.400% up to $100 million 0.350% above $100 million 0.400% 0.400%
PACE Small/Medium Co Growth Equity Investments	Copper Rock Capital Partners, LLC Palisade Capital Management, LLC Riverbridge Partners, LLC	0.450% up to $100 million 0.400% above $100 million 0.450% up to $100 million 0.400% above $100 million 0.400%
PACE International Equity Investments	J.P. Morgan Investment Management Inc.— International REI segment J.P. Morgan Investment Management Inc.—EAFE Opportunities segment3 Martin Currie Inc. Mondrian Investment Partners Ltd.	0.200% 0.350% up to $150 million 0.300% above $150 million 0.350% up to $150 million 0.300% above $150 million up to $250 million 0.250% above $250 million up to $350 million 0.200% above $350 million 0.350% up to $150 million 0.300% above $150 million

¹  If the assets under Pzena's management are less than $10 million, Pzena receives 1.00% of the Portfolio's average daily net assets that it manages with a minimum annual fee of $35,000 and a maximum annual fee of $70,000.

²  SSgA Funds Management, Inc. was terminated as a sub-advisor to the Portfolio, effective November 29, 2010.

³  J.P. Morgan Investment Management Inc. assumed investment advisory responsibility with respect to a new mandate managing a separate portion of the Portfolio effective November 8, 2010.

323

PACE Select Advisors Trust

Notes to financial statements

Portfolio	Investment sub-advisor	Annual rate as a percentage of each sub-advisor's portion of the Portfolio's average daily net assets
PACE International Emerging Markets Equity Investments	Delaware Management Company4 Mondrian Investment Partners Ltd. Pzena Investment Management, LLC4 William Blair & Company L.L.C.5	0.600% up to $10 million 0.500% above $10 million 0.650% up to $150 million 0.550% above $150 million up to $250 million 0.500% above $250 million 0.810% up to $10 million 0.650% above $10 million up to $50 million 0.590% above $50 million up to $100 million 0.520% above $100 million up to $300 million 0.490% above $300 million 0.600% up to $100 million 0.550% above $100 million
PACE Global Real Estate Securities Investments	Brookfield Investment Management Inc. CBRE Clarion Securities, LLC6	0.420% up to $50 million 0.400% above $50 million 0.400%
PACE Alternative Strategies Investments	Analytic Investors, LLC First Quadrant L.P. Goldman Sachs Asset Management, L.P. Standard Life Investments (Corporate Funds) Limited7 Wellington Management Company, LLP	0.450% up to $200 million 0.400% above $200 million up to $400 million 0.300% above $400 million 0.90% 0.680% up to $300 million 0.640% above $300 million up to $500 million 0.600% above $500 million 0.700% 0.750% up to $200 million 0.725% above $200 million

⁴  Delaware Management Company and Pzena Investment Management, LLC became sub-advisors effective November 4, 2010.

⁵  Effective March 23, 2011, William Blair & Company L.L.C. commenced as a sub-adviser for a portion of PACE International Emerging Markets Equity Investments. As of the close of business, March 22, 2011, Gartmore Global Partners terminated as a sub-adviser to PACE International Emerging Markets Equity Investments.

⁶  Formerly known as ING Clarion Real Estate Securities, LLC.

⁷  Standard Life Investments (Corporate Funds) Limited became a sub-advisor effective August 5, 2010.

324

PACE Select Advisors Trust

Notes to financial statements

At July 31, 2011, certain Portfolios owe or are (owed by) UBS Global AM for investment management and administration fees, net of fee waivers/expense reimbursements and/or recoupments as follows:

Portfolio	Amounts due to (owed by) UBS Global AM
PACE Money Market Investments	$	(112,635	)
PACE Government Securities Fixed Income Investments		272,791
PACE Intermediate Fixed Income Investments		168,733
PACE Strategic Fixed Income Investments		397,071
PACE Municipal Fixed Income Investments		134,294
PACE International Fixed Income Investments		316,977
PACE High Yield Investments		163,017
PACE Large Co Value Equity Investments		782,591
PACE Large Co Growth Equity Investments		784,674
PACE Small/Medium Co Value Equity Investments		306,672
PACE Small/Medium Co Growth Equity Investments		333,116
PACE International Equity Investments		674,787
PACE International Emerging Markets Equity Investments		278,903
PACE Global Real Estate Securities Investments		31,072
PACE Alternative Strategies Investments		631,211

UBS Global AM has entered into a written fee waiver agreement with each of PACE Government Securities Fixed Income Investments, PACE International Fixed Income Investments, and PACE Large Co Growth Equity Investments under which UBS Global AM is contractually obligated to waive its management fees to the extent necessary to reflect the lower subadvisory fees paid by UBS Global AM to each of these Portfolio's sub-advisors: Pacific Investment Management Company LLC, Rogge Global Partners plc and SSgA Funds Management, Inc., respectively. Effective at the close of business November 29, 2010, SSgA Funds Management, Inc. no longer serves as a sub-advisor for PACE Large Co Growth Equity Investments. As a result, this fee waiver was discontinued effective November 30, 2010. For the year ended July 31, 2011, UBS Global AM was contractually obligated to waive $155,661, $288,903 and $88,539 in investment management and administration fees for PACE Government Securities Fixed Income Investments, PACE International Fixed Income Investments and PACE Large Co Growth Equity Investments, respectively.

Additionally, with respect to PACE Money Market Investments, UBS Global AM may voluntarily waive fees and/or reimburse expenses from time to time in the event that the Portfolio's yield falls below a certain level. Once started, there is no guarantee that UBS Global AM would continue to voluntarily waive an additional portion of its fees and/or reimburse expenses. For the year ended July 31, 2011, UBS Global AM voluntarily waived and/or reimbursed expenses of $1,261,944 for PACE Money Market Investments for that purpose.

UBS Global AM is contractually obligated to waive all or a portion of its investment management and administration fees and/or to reimburse the Portfolios for certain operating expenses in order to maintain the total annual ordinary operating expenses of each class (with certain exclusions such as dividend expense, borrowing costs and interest expense, if any) through November 30, 2011 at a level not to exceed amounts in the table below.

Each Portfolio will repay UBS Global AM for any such waived fees/reimbursed expenses during a three-year period following July 31, 2011, to the extent that ordinary operating expenses (with certain exclusions such as dividend expense, borrowing costs and interest expense) are otherwise below the applicable expense cap in effect at the time the fees or expenses were waived/reimbursed. For the year ended July 31, 2011, UBS Global AM had the following voluntary fee waivers/expense reimbursements, and recoupments. The fee waivers/expense

325

PACE Select Advisors Trust

Notes to financial statements

reimbursements, portions of which are subject to repayment by the Portfolios through July 31, 2014, and recoupments for the year ended July 31, 2011, were as follows:

Portfolio	Class A expense cap			Class B expense cap			Class C expense cap			Class Y expense cap			Class P expense cap			Fee waivers/ expense reimbursements		Recoupments
PACE Money Market Investments		N/A			N/A			N/A			N/A			0.60	%	$	996,232	$	—
PACE Government Securities Fixed Income Investments		1.02	%		1.77	%		1.52	%		0.77	%		0.77			363,536		—
PACE Intermediate Fixed Income Investments		0.93			1.68			1.43			0.68			0.68			207,420		—
PACE Strategic Fixed Income Investments		1.06			1.81			1.56			0.81			0.81			241,526		2,711
PACE Municipal Fixed Income Investments		0.93			1.68			1.43			0.68			0.68			113,934		—
PACE International Fixed Income Investments		1.25			2.00			1.75			1.00			1.00			251,735		18,289
PACE High Yield Investments		1.35			2.10	1		1.85			1.10			1.10			118,506		5,357
PACE Large Co Value Equity Investments		1.27			2.02			2.02			1.02			1.02			404		2,092
PACE Large Co Growth Equity Investments		1.30			2.05			2.05			1.05			1.05			776		—
PACE Small/Medium Co Value Equity Investments		1.41			2.16			2.16			1.16			1.16			56,610		—
PACE Small/Medium Co Growth Equity Investments		1.38			2.13			2.13			1.13			1.13			116,207		1,606
PACE International Equity Investments2		1.55			2.30			2.30			1.30			1.30			79		—
PACE International Emerging Markets Equity Investments2		2.15			2.90			2.90			1.90			1.90			—		—
PACE Global Real Estate Securities Investments		1.45			N/A	3		2.20			1.20			1.20			411,315		—
PACE Alternative Strategies Investments		1.95			2.70			2.70			1.70			1.70			42,140		477

¹  Share class has not commenced operations.

²  Expense caps in the table above became effective November 28, 2010. Prior to November 28, 2010, expense caps were as follows:

Portfolio	Class A expense cap			Class B expense cap			Class C expense cap			Class Y expense cap			Class P expense cap
PACE International Equity Investments		1.65	%		2.40	%		2.40	%		1.40	%		1.40	%
PACE International Emerging Markets Equity Investments		2.25			3.00			3.00			2.00			2.00

³  PACE Global Real Estate Securities Investments does not offer Class B shares.

At July 31, 2011, the following Portfolios had remaining fee waivers/expense reimbursements subject to repayment to UBS Global AM and respective dates of expiration as follows:

Portfolio	Fee waivers/ expense reimbursements subject to repayment		Expires July 31, 2012		Expires July 31, 2013		Expires July 31, 2014
PACE Money Market Investments	$	3,988,289	$	1,729,334	$	1,262,723	$	996,232
PACE Government Securities Fixed Income Investments—Class A		70,328		26,444		31,628		12,256
PACE Government Securities Fixed Income Investments—Class B		494		280		163		51
PACE Government Securities Fixed Income Investments—Class C		43,633		20,528		16,083		7,022
PACE Government Securities Fixed Income Investments—Class Y		128,036		42,938		40,800		44,298
PACE Government Securities Fixed Income Investments—Class P		996,627		316,871		379,847		299,909
PACE Intermediate Fixed Income Investments—Class A		97,143		40,388		32,279		24,476
PACE Intermediate Fixed Income Investments—Class B		646		259		228		159
PACE Intermediate Fixed Income Investments—Class C		10,164		4,223		3,445		2,496

326

PACE Select Advisors Trust

Notes to financial statements

Portfolio	Fee waivers/ expense reimbursements subject to repayment		Expires July 31, 2012		Expires July 31, 2013		Expires July 31, 2014
PACE Intermediate Fixed Income Investments—Class Y	$	3,837	$	25	$	1,293	$	2,519
PACE Intermediate Fixed Income Investments—Class P		584,929		209,484		197,675		177,770
PACE Strategic Fixed Income Investments—Class A		35,263		8,462		10,025		16,776
PACE Strategic Fixed Income Investments—Class B		649		278		278		93
PACE Strategic Fixed Income Investments—Class Y		5,864		—		1,522		4,342
PACE Strategic Fixed Income Investments—Class P		999,195		360,438		418,442		220,315
PACE Municipal Fixed Income Investments—Class A		51,369		23,896		17,116		10,357
PACE Municipal Fixed Income Investments—Class B		198		84		74		40
PACE Municipal Fixed Income Investments—Class C		12,434		5,657		4,247		2,530
PACE Municipal Fixed Income Investments—Class Y		247		106		72		69
PACE Municipal Fixed Income Investments—Class P		346,182		129,158		116,086		100,938
PACE International Fixed Income Investments—Class B		205		125		68		12
PACE International Fixed Income Investments—Class Y		3,207		—		—		3,207
PACE International Fixed Income Investments—Class P		1,106,739		469,248		388,975		248,516
PACE High Yield Investments—Class A		1,044		1,044		—		—
PACE High Yield Investments—Class P		589,363		296,377		174,480		118,506
PACE Large Co Value Equity Investments—Class B		2,613		1,350		859		404
PACE Large Co Growth Equity Investments—Class B		1,093		487		368		238
PACE Large Co Growth Equity Investments—Class C		7,241		4,566		2,137		538
PACE Small/Medium Co Value Equity Investments—Class B		689		490		175		24
PACE Small/Medium Co Value Equity Investments—Class P		821,220		464,511		300,123		56,586
PACE Small/Medium Co Growth Equity Investments—Class B		717		364		261		92
PACE Small/Medium Co Growth Equity Investments—Class P		1,002,386		547,958		338,313		116,115
PACE International Equity Investments—Class B		356		191		86		79
PACE Global Real Estate Securities Investments—Class A		46,327		20,367		15,857		10,103
PACE Global Real Estate Securities Investments—Class C		2,269		1,009		768		492
PACE Global Real Estate Securities Investments—Class Y		423		39		150		234
PACE Global Real Estate Securities Investments—Class P		1,317,681		444,161		473,034		400,486
PACE Alternative Strategies Investments—Class A		80,488		28,060		36,429		15,999
PACE Alternative Strategies Investments—Class B		92		54		38		—
PACE Alternative Strategies Investments—Class Y		6,979		6,086		—		893
PACE Alternative Strategies Investments—Class P		199,629		39,257		135,124		25,248

PACE Strategic Fixed Income Investments Class C, PACE International Fixed Income Investments Class A and Class C, PACE High Yield Investments Class C and Class Y, PACE Large Co Value Equity Investments Class A, Class C, Class Y and Class P, PACE Large Co Growth Equity Investments Class A, Class Y and Class P, PACE Small/Medium Co Value Equity Investments Class A, Class C and Class Y, PACE Small/Medium Co Growth Equity Investments Class A, Class C and Class Y, PACE International Equity Investments Class A, Class C, Class Y and Class P, PACE International Emerging Markets Equity Investments Class A, Class B, Class C, Class Y and Class P and PACE Alternative Strategies Investments Class C have no remaining fee waivers/expense reimbursements subject to repayment.

327

PACE Select Advisors Trust

Notes to financial statements

During the year ended July 31, 2011, the Portfolios listed below paid broker commissions to affiliates of the investment manager as follows:

Affiliated broker	PACE Large Co Value Equity Investments		PACE Large Co Growth Equity Investments		PACE International Equity Investments		International Emerging Markets Equity Investments		PACE PACE Global Real Estate Securities Investments		PACE Alternative Strategies Investments
UBS AG	$	—	$	—	$	3,323	$	15,182	$	60	$	9,437
UBS Securities Asia Ltd.		—		—		—		2,462		539		108
UBS Securites Australia Ltd.		—		—		—		—		—		5
UBS Securities Canada Inc.		—		—		—		143		27		94
UBS Securities LLC		2,484		2,247		—		3,096		437		905

Additional information regarding compensation to affiliate of a board member

Professor Meyer Feldberg serves as a senior advisor to Morgan Stanley, a financial services firm with which the Portfolios may conduct transactions, resulting in him being an interested trustee of the Portfolio. The Portfolios have been informed that Professor Feldberg's role at Morgan Stanley does not involve matters directly affecting any UBS funds. Portfolio transactions are executed through Morgan Stanley based on that firm's ability to provide best execution of the transactions. For the year ended July 31, 2011, the following Portfolios paid brokerage commissions to Morgan Stanley in the amounts as follows:

PACE Large Co Value Equity Investments	$	48,137
PACE Large Co Growth Equity Investments		71,780
PACE Small/Medium Co Value Equity Investments		7,470
PACE Small/Medium Co Growth Equity Investments		14,949
PACE International Equity Investments		26,693
PACE International Emerging Markets Equity Investments		66,554
PACE Global Real Estate Securities Investments		1,871
PACE Alternative Strategies Investments		156,792

During the year ended July 31, 2011, the following Portfolios purchased and sold certain securities (e.g., fixed income securities) in principal trades with Morgan Stanley having aggregate values as follows:

PACE Money Market Investments	$	198,963,243
PACE Government Securities Fixed Income Investments		6,069,828,721
PACE Intermediate Fixed Income Investments		693,179,180
PACE Strategic Fixed Income Investments		2,795,570,830
PACE Municipal Fixed Income Investments		12,969,694
PACE International Fixed Income Investments		87,386,386	��
PACE High Yield Investments		7,110,469
PACE Large Co Growth Equity Investments		17,177,812
PACE Small/Medium Co Growth Equity Investments		3,046,863
PACE International Equity Investments		4,467,484
PACE International Emerging Markets Equity Investments		346,556
PACE Global Real Estate Securities Investments		172,535
PACE Alternative Strategies Investments		640,657,971

328

PACE Select Advisors Trust

Notes to financial statements

Morgan Stanley received compensation in connection with these trades, which may have been in the form of a "mark-up" or "mark-down" of the price of the securities, a fee from the issuer for maintaining a commercial paper program, or some other form of compensation. Although the precise amount of this compensation is not generally known by the investment manager, it is believed that under normal circumstances it represents a small portion of the total value of the transactions.

Service and distribution plans

UBS Global Asset Management (US) Inc. ("UBS Global AM (US)") is the principal underwriter of each Portfolio's shares. Under separate plans of service and/or distribution pertaining to Class A, Class B and Class C shares, the Portfolios (with the exception of PACE Money Market Investments, which only offers Class P shares, and PACE Global Real Estate Securities Investments, which does not offer Class B shares) pay UBS Global AM (US) monthly service fees at the annual rate of 0.25% of the average daily net assets of Class A, Class B and Class C shares and monthly distribution fees (1) at the annual rate of 0.75% of the average daily net assets of Class B and Class C shares for PACE Large Co Value Equity Investments, PACE Large Co Growth Equity Investments, PACE Small/Medium Co Value Equity Investments, PACE Small/Medium Co Growth Equity Investments, PACE International Equity Investments, PACE International Emerging Markets Equity Investments, PACE Global Real Estate Securities Investments and PACE Alternative Strategies Investments and (2) at the annual rate of 0.75% and 0.50% of the average daily net assets of Class B and Class C shares, respectively, for PACE Government Securities Fixed Income Investments, PACE Intermediate Fixed Income Investments, PACE Strategic Fixed Income Investments, PACE Municipal Fixed Income Investments, PACE International Fixed Income Investments and PACE High Yield Investments Portfolios.

UBS Global AM (US) also receives the proceeds of the initial sales charges paid upon the purchase of Class A shares and the contingent deferred sales charges paid by shareholders upon certain redemptions of Class A, Class B and Class C shares.

At July 31, 2011, certain Portfolios owed UBS Global AM (US) service and distribution fees, and for the year ended July 31, 2011, certain Portfolios were informed by UBS Global AM (US) that it had earned sales charges as follows:

Portfolio	Service and distribution fees owed		Sales charges earned
PACE Government Securities Fixed Income Investments—Class A	$	17,264	$	4,226
PACE Government Securities Fixed Income Investments—Class B		99		3
PACE Government Securities Fixed Income Investments—Class C		14,074		671
PACE Intermediate Fixed Income Investments—Class A		8,326		6,276
PACE Intermediate Fixed Income Investments—Class B		61		—
PACE Intermediate Fixed Income Investments—Class C		2,277		18
PACE Strategic Fixed Income Investments—Class A		11,432		19,167
PACE Strategic Fixed Income Investments—Class B		193		204
PACE Strategic Fixed Income Investments—Class C		8,137		911
PACE Municipal Fixed Income Investments—Class A		15,798		9,625
PACE Municipal Fixed Income Investments—Class B		40		—
PACE Municipal Fixed Income Investments—Class C		8,868		44
PACE International Fixed Income Investments—Class A		20,690		5,276
PACE International Fixed Income Investments—Class B		126		—
PACE International Fixed Income Investments—Class C		5,039		75
PACE High Yield Investments—Class A		5,572		92,153
PACE High Yield Investments—Class C		2,401		666
PACE Large Co Value Equity Investments—Class A		32,285		9,036
PACE Large Co Value Equity Investments—Class B		75		56

329

PACE Select Advisors Trust

Notes to financial statements

Portfolio	Service and distribution fees owed		Sales charges earned
PACE Large Co Value Equity Investments—Class C	$	12,972	$	102
PACE Large Co Growth Equity Investments—Class A		14,070		4,075
PACE Large Co Growth Equity Investments—Class B		60		184
PACE Large Co Growth Equity Investments—Class C		3,686		36
PACE Small/Medium Co Value Equity Investments—Class A		7,194		4,092
PACE Small/Medium Co Value Equity Investments—Class B		2		—
PACE Small/Medium Co Value Equity Investments—Class C		4,612		1
PACE Small/Medium Co Growth Equity Investments—Class A		9,143		5,177
PACE Small/Medium Co Growth Equity Investments—Class B		11		2
PACE Small/Medium Co Growth Equity Investments—Class C		3,691		31
PACE International Equity Investments—Class A		14,424		7,713
PACE International Equity Investments—Class B		1		84
PACE International Equity Investments—Class C		3,096		11
PACE International Emerging Markets Equity Investments—Class A		4,854		5,955
PACE International Emerging Markets Equity Investments—Class B		42		71
PACE International Emerging Markets Equity Investments—Class C		2,901		515
PACE Global Real Estate Securities Investments—Class A		991		1,879
PACE Global Real Estate Securities Investments—Class C		188		—
PACE Alternative Strategies Investments—Class A		14,227		15,752
PACE Alternative Strategies Investments—Class C		5,820		577

Transfer agency and related services fees

UBS Financial Services Inc. provides certain services to the Portfolios pursuant to a delegation of authority from BNY Mellon Investment Servicing (US) Inc. ("BNY Mellon"), the Portfolios' transfer agent, and was compensated for these services by BNY Mellon, not the Portfolios.

For the year ended July 31, 2011, UBS Financial Services Inc. received from BNY Mellon, not the Portfolios, total delegated services fees as follows:

Portfolio	Delegated services fees earned
PACE Money Market Investments	$	768,376
PACE Government Securities Fixed Income Investments		419,290
PACE Intermediate Fixed Income Investments		223,212
PACE Strategic Fixed Income Investments		554,557
PACE Municipal Fixed Income Investments		97,959
PACE International Fixed Income Investments		561,656
PACE High Yield Investments		268,160
PACE Large Co Value Equity Investments		689,915
PACE Large Co Growth Equity Investments		646,582
PACE Small/Medium Co Value Equity Investments		603,871
PACE Small/Medium Co Growth Equity Investments		605,721
PACE International Equity Investments		619,134
PACE International Emerging Markets Equity Investments		530,504
PACE Global Real Estate Securities Investments		246,277
PACE Alternative Strategies Investments		285,648

330

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2011, each Portfolio accrued transfer agency and related services fees payable to BNY Mellon on each class as follows:

Porfolio	Class A		Class B		Class C		Class Y		Class P
PACE Money Market Investments	$	—	$	—	$	—	$	—	$	1,533,469
PACE Government Securities Fixed Income Investments		77,271		153		24,746		82,342		650,201
PACE Intermediate Fixed Income Investments		41,676		213		4,271		3,243		351,086
PACE Strategic Fixed Income Investments		65,965		358		9,260		7,195		928,205
PACE Municipal Fixed Income Investments		27,105		53		5,678		95		148,674
PACE International Fixed Income Investments		101,604		237		6,452		11,261		885,310
PACE High Yield Investments		20,299		—		1,964		29		444,625
PACE Large Co Value Equity Investments		146,158		647		22,232		20,308		1,042,024
PACE Large Co Growth Equity Investments		72,702		398		8,814		16,946		1,040,170
PACE Small/Medium Co Value Equity Investments		39,870		67		6,904		594		994,341
PACE Small/Medium Co Growth Equity Investments		46,738		127		5,311		144		992,850
PACE International Equity Investments		83,375		104		7,393		28,731		986,490
PACE International Emerging Markets Equity Investments		31,343		101		4,926		33,792		876,521
PACE Global Real Estate Securities Investments		10,388		—		505		245		406,232
PACE Alternative Strategies Investments		72,026		—		4,682		2,438		414,720

Securities lending

Each Portfolio may lend securities up to 33¹/₃% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, US government securities or irrevocable letters of credit 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 Portfolio will regain ownership of loaned securities to exercise certain beneficial rights; however, each Portfolio may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower fail financially. Each Portfolio receives compensation for lending its securities from interest or dividends earned on the cash, US government securities or irrevocable letters of credit held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. State Street Bank and Trust Company serves as the Portfolios' lending agent.

Bank line of credit

Each Portfolio, other than PACE Money Market Investments, participates with other funds managed, advised or sub-advised by UBS Global AM in a $100 million committed credit facility with State Street Bank and Trust Company ("Committed Credit Facility"), to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of each Portfolio at the request of shareholders and other temporary or emergency purposes. Under the Committed Credit Facility arrangement, each Portfolio has agreed to pay commitment fees, pro rata, based on the relative asset size of the funds in the Committed Credit Facility. Each Portfolio borrows at prevailing rates in effect at the time of borrowings. For the year ended July 31, 2011, the following Portfolios had borrowings as follows:

Portfolio	Average daily amount of borrowings outstanding		Days outstanding		Interest expense		Weighted average annualized interest rate
PACE Government Securities Fixed Income Investments	$	1,185,528		1	$	40		1.215	%
PACE Municipal Fixed Income Investments		1,032,194		2		69		1.203
PACE Large Co Growth Equity Investments		1,066,458		5		182		1.229
PACE Small/Medium Co Growth Equity Investments		1,358,379		1		46		1.219
PACE International Equity Investments		906,589		37		1,159		1.244
PACE International Emerging Markets Equity Investments		1,206,185		80		3,255		1.214
PACE Alternative Strategies Investments		7,798,139		4		1,073		1.238

331

PACE Select Advisors Trust

Notes to financial statements

Prior to February 17, 2011, PACE Large Co Growth Equity Investments participated with other funds advised by UBS Global AM in a $75 million committed credit facility with JP Morgan Chase Bank ("JPMorgan Chase Bank 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 Portfolio at the request of shareholders and other temporary or emergency purposes. Under the JPMorgan Chase Bank Facility arrangement, the Portfolio had agreed to pay commitment fees, pro rata, based on the relative asset size of the funds in the JPMorgan Chase Bank Facility. The Portfolio was permitted to borrow at prevailing rates in effect at the time of borrowings. For the period ended February 16, 2011, the Portfolio did not borrow under the JPMorgan Chase Bank Facility.

Purchases and sales of securities

For the year ended July 31, 2011, aggregate purchases and sales of portfolio securities, excluding short-term securities and US Government and agency securities, were as follows:

Portfolio	Purchases		Sales
PACE Government Securities Fixed Income Investments	$	31,164,152	$	116,432,771
PACE Intermediate Fixed Income Investments		235,554,830		165,789,498
PACE Strategic Fixed Income Investments		253,941,976		242,790,331
PACE Municipal Fixed Income Investments		108,069,705		115,076,920
PACE International Fixed Income Investments		352,238,888		331,125,829
PACE High Yield Investments		127,143,548		88,942,493
PACE Large Co Value Equity Investments		572,665,922		622,836,963
PACE Large Co Growth Equity Investments		903,217,857		957,552,323
PACE Small/Medium Co Value Equity Investments		287,058,214		316,477,073
PACE Small/Medium Co Growth Equity Investments		453,228,350		491,936,143
PACE International Equity Investments		563,690,949		563,365,146
PACE International Emerging Markets Equity Investments		331,782,185		335,504,329
PACE Global Real Estate Securities Investments		57,328,267		46,656,750
PACE Alternative Strategies Investments		633,786,474		604,262,567

For the year ended July 31, 2011, aggregate purchases and sales of US Government and agency securities, excluding short-term securities, were as follows:

Portfolio	Purchases		Sales
PACE Government Securities Fixed Income Investments	$	9,491,134,631	$	9,323,718,885
PACE Intermediate Fixed Income Investments		2,938,751,091		2,993,097,336
PACE Strategic Fixed Income Investments		3,348,159,520		3,444,072,419
PACE International Fixed Income Investments		14,296,546		14,294,971
PACE Alternative Strategies Investments		482,529,450		453,982,218

Commission recapture program

The following Portfolios participate in a brokerage commission recapture program: PACE Large Co Value Equity Investments, PACE Large Co Growth Equity Investments, PACE Small/Medium Co Value Equity Investments, PACE Small/Medium Co Growth Equity Investments, PACE International Equity Investments, PACE International Emerging Markets Equity Investments, PACE Global Real Estate Securities Investments and PACE Alternative Strategies Investments. These Portfolios have established commission recapture arrangements with certain participating brokers or dealers. If a Portfolio's investment sub-advisor chooses to execute a transaction through a participating broker subject to best price and execution, the broker will rebate a portion of the commission back to the Portfolio. Any collateral benefit received through participation in the commission recapture program is directed exclusively to the Portfolio. For the year ended July 31, 2011, the following Portfolios recorded recaptured

332

PACE Select Advisors Trust

Notes to financial statements

commissions which are reflected on the Statement of operations within the net realized gains (losses) on investment activities:

Portfolio	Amount
PACE Large Co Value Equity Investments	$	150,906
PACE Large Co Growth Equity Investments		62,853
PACE Small/Medium Co Value Equity Investments		146,576
PACE Small/Medium Co Growth Equity Investments		273,769
PACE International Equity Investments		1,964
PACE International Emerging Markets Equity Investments		7,088
PACE Global Real Estate Securities Investments		23,672
PACE Alternative Strategies Investments		1,605

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 for each of the Portfolios, except PACE Money Market Investments, about which similar information is provided on the Statement of changes in net assets, were as follows:

PACE Government Securities Fixed Income Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		322,017		$	4,311,205			—		$	—			29,388		$	398,630
Shares repurchased		(1,323,351	)		(17,690,694	)		(3,066	)		(41,129	)		(239,374	)		(3,185,094	)
Shares converted from Class B to Class A		1,523			20,445			(1,523	)		(20,445	)		—			—
Dividends reinvested		322,295			4,240,233			532			6,996			87,921			1,156,389
Net decrease		(677,516	)	$	(9,118,811	)		(4,057	)	$	(54,578	)		(122,065	)	$	(1,630,075	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		1,549,324		$	20,826,642			7,352,916		$	98,174,456
Shares repurchased		(1,600,592	)		(21,457,841	)		(10,351,370	)		(138,083,371	)
Dividends reinvested		259,880			3,420,694			2,289,948			30,145,254
Net increase (decrease)		208,612		$	2,789,495			(708,506	)	$	(9,763,661	)

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		728,713		$	9,852,320			5,617		$	76,341			138,831		$	1,877,632
Shares repurchased		(1,098,779	)		(14,815,822	)		(4,153	)		(56,643	)		(284,012	)		(3,824,901	)
Shares converted from Class B to Class A		3,556			48,107			(3,554	)		(48,107	)		—			—
Dividends reinvested		342,102			4,543,316			550			7,290			92,411			1,227,180
Net decrease		(24,408	)	$	(372,079	)		(1,540	)	$	(21,119	)		(52,770	)	$	(720,089	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		1,769,546		$	23,862,711			9,379,343		$	126,498,461
Shares repurchased		(1,318,594	)		(17,728,119	)		(8,472,594	)		(114,141,124	)
Dividends reinvested		224,552			2,983,809			2,307,855			30,666,573
Net increase		675,504		$	9,118,401			3,214,604		$	43,023,910

333

PACE Select Advisors Trust

Notes to financial statements

PACE Intermediate Fixed Income Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		188,507		$	2,275,985			584		$	7,102			12,230		$	148,784
Shares repurchased		(605,032	)		(7,266,358	)		(3,035	)		(36,265	)		(117,218	)		(1,411,529	)
Shares converted from Class B to Class A		4,722			57,226			(4,714	)		(57,226	)		—			—
Dividends reinvested		52,304			628,474			93			1,115			4,236			50,980
Net decrease		(359,499	)	$	(4,304,673	)		(7,072	)	$	(85,274	)		(100,752	)	$	(1,211,765	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		9,306		$	112,398			8,314,566		$	100,094,760
Shares repurchased		(73,699	)		(887,064	)		(10,219,923	)		(122,770,793	)
Dividends reinvested		3,237			38,926			767,677			9,226,178
Net decrease		(61,156	)	$	(735,740	)		(1,137,680	)	$	(13,449,855	)

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		281,329		$	3,310,190			4,034		$	47,518			84,600		$	995,456
Shares repurchased		(703,084	)		(8,259,636	)		(1,917	)		(22,533	)		(154,565	)		(1,820,536	)
Shares converted from Class B to Class A		2,664			31,143			(2,659	)		(31,143	)		—			—
Dividends reinvested		90,459			1,061,686			223			2,622			9,019			105,968
Net decrease		(328,632	)	$	(3,856,617	)		(319	)	$	(3,536	)		(60,946	)	$	(719,112	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		47,283		$	554,932			12,008,075		$	141,203,511
Shares repurchased		(87,440	)		(1,024,060	)		(8,594,102	)		(101,065,548	)
Dividends reinvested		6,714			78,814			1,122,720			13,186,851
Net increase (decrease)		(33,443	)	$	(390,314	)		4,536,693		$	53,324,814

PACE Strategic Fixed Income Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		1,570,957		$	22,619,992			257		$	3,858			193,006		$	2,811,676
Shares repurchased		(1,029,608	)		(14,912,964	)		(1,523	)		(22,298	)		(197,671	)		(2,847,584	)
Shares converted from Class B to Class A		4,421			63,557			(4,422	)		(63,557	)		—			—
Dividends reinvested		186,281			2,649,058			863			12,261			43,729			621,104
Net increase (decrease)		732,051		$	10,419,643			(4,825	)	$	(69,736	)		39,064		$	585,196
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		28,690		$	410,410			11,362,544		$	163,441,235
Shares repurchased		(58,505	)		(842,906	)		(10,649,315	)		(153,794,110	)
Dividends reinvested		12,714			180,892			3,097,600			44,042,780
Net increase (decrease)		(17,101	)	$	(251,604	)		3,810,829		$	53,689,905

334

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		1,269,639		$	17,649,022			879		$	11,691			272,509		$	3,806,220
Shares repurchased		(792,786	)		(10,971,115	)		(2,823	)		(39,093	)		(124,012	)		(1,711,165	)
Shares converted from Class B to Class A		3,582			49,561			(3,584	)		(49,561	)		—			—
Dividends reinvested		101,324			1,400,996			687			9,459			23,560			325,832
Net increase (decrease)		581,759		$	8,128,464			(4,841	)	$	(67,504	)		172,057		$	2,420,887
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		99,028		$	1,354,135			12,390,311		$	170,474,850
Shares repurchased		(144,124	)		(2,001,353	)		(11,612,066	)		(160,807,710	)
Dividends reinvested		11,880			163,743			2,063,819			28,495,696
Net increase (decrease)		(33,216	)	$	(483,475	)		2,842,064		$	38,162,836

PACE Municipal Fixed Income Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		253,434		$	3,257,914			—		$	—			83,281		$	1,045,044
Shares repurchased		(1,174,212	)		(14,955,246	)		—			—			(247,223	)		(3,135,562	)
Shares converted from Class B to Class A		1,257			16,264			(1,256	)		(16,264	)		—			—
Dividends reinvested		125,625			1,607,082			79			1,011			18,560			237,581
Net decrease		(793,896	)	$	(10,073,986	)		(1,177	)	$	(15,253	)		(145,382	)	$	(1,852,937	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		—		$	—			4,069,360		$	52,072,473
Shares repurchased		(571	)		(7,279	)		(4,652,243	)		(59,394,004	)
Dividends reinvested		99			1,271			513,064			6,562,003
Net decrease		(472	)	$	(6,008	)		(69,819	)	$	(759,528	)

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		729,755		$	9,296,918			—		$	—			127,864		$	1,627,841
Shares repurchased		(1,509,793	)		(19,186,226	)		—			—			(176,048	)		(2,234,934	)
Shares converted from Class B to Class A		3,647			46,031			(3,644	)		(46,031	)		—			—
Dividends reinvested		145,060			1,842,634			127			1,600			23,373			296,962
Net decrease		(631,331	)	$	(8,000,643	)		(3,517	)	$	(44,431	)		(24,811	)	$	(310,131	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		—		$	—			5,824,530		$	74,011,168
Shares repurchased		(2,240	)		(28,205	)		(3,716,258	)		(47,231,557	)
Dividends reinvested		116			1,473			498,842			6,339,203
Net increase (decrease)		(2,124	)	$	(26,732	)		2,607,114		$	33,118,814

335

PACE Select Advisors Trust

Notes to financial statements

PACE International Fixed Income Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		365,771		$	4,327,620			1		$	12			76,850		$	917,453
Shares repurchased		(1,235,268	)		(14,724,825	)		—			—			(70,170	)		(841,818	)
Shares converted from Class B to Class A		2,620			30,425			(2,611	)		(30,425	)		—			—
Dividends reinvested		164,935			1,961,670			124			1,484			8,805			104,777
Net increase (decrease)		(701,942	)	$	(8,405,110	)		(2,486	)	$	(28,929	)		15,485		$	180,412
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		5,649		$	67,459			8,097,069		$	96,308,254
Shares repurchased		(111,419	)		(1,326,843	)		(7,282,606	)		(86,688,425	)
Dividends reinvested		12,387			146,924			953,184			11,343,898
Net increase (decrease)		(93,383	)	$	(1,112,460	)		1,767,647		$	20,963,727

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		426,369		$	4,923,082			1,847		$	22,267			93,275		$	1,081,590
Shares repurchased		(1,175,359	)		(13,584,368	)		(2,404	)		(26,147	)		(114,266	)		(1,329,048	)
Shares converted from Class B to Class A		1,872			21,921			(1,868	)		(21,921	)		—			—
Dividends reinvested		421,149			4,859,108			522			6,037			25,817			297,937
Net increase (decrease)		(325,969	)	$	(3,780,257	)		(1,903	)	$	(19,764	)		4,826		$	50,479
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		44,952		$	533,137			9,245,770		$	107,353,391
Shares repurchased		(242,403	)		(2,810,513	)		(7,210,772	)		(83,287,599	)
Dividends reinvested		39,822			459,531			2,064,683			23,791,549
Net increase (decrease)		(157,629	)	$	(1,817,845	)		4,099,681		$	47,857,341

PACE High Yield Investments

For the year ended July 31, 2011:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		1,507,757		$	15,845,072			132,012		$	1,385,347
Shares repurchased		(465,657	)		(4,890,434	)		(60,679	)		(636,565	)
Dividends reinvested		123,200			1,290,852			14,872			155,475
Net increase		1,165,300		$	12,245,490			86,205		$	904,257
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		35,520		$	374,613			6,780,923		$	71,494,173
Shares repurchased		—			—			(5,111,960	)		(53,801,895	)
Dividends reinvested		565			5,908			1,587,383			16,638,154
Net increase		36,085		$	380,521			3,256,346		$	34,330,432

336

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2010:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		691,126		$	6,773,730			105,595		$	1,064,331
Shares repurchased		(306,128	)		(2,956,039	)		(41,670	)		(409,248	)
Dividends reinvested		65,476			644,671			11,285			110,746
Net increase		450,474		$	4,462,362			75,210		$	765,829
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		—		$	—			7,284,556		$	71,144,838
Shares repurchased		—			—			(4,630,407	)		(45,473,717	)
Dividends reinvested		67			656			1,500,995			14,758,167
Net increase		67		$	656			4,155,144		$	40,429,288

PACE Large Co Value Equity Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		380,458		$	6,280,843			—		$	—			4,292		$	69,685
Shares repurchased		(1,535,140	)		(25,587,664	)		(1,541	)		(24,132	)		(173,217	)		(2,887,719	)
Shares converted from Class B to Class A		4,634			78,259			(4,607	)		(78,259	)		—			—
Dividends reinvested		67,781			1,123,133			—			—			—			—
Net decrease		(1,082,267	)	$	(18,105,429	)		(6,148	)	$	(102,391	)		(168,925	)	$	(2,818,034	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		13,189		$	224,663			10,531,750		$	176,737,479
Shares repurchased		(205,734	)		(3,442,569	)		(12,420,127	)		(206,861,690	)
Dividends reinvested		11,196			185,748			598,607			9,900,947
Net decrease		(181,349	)	$	(3,032,158	)		(1,289,770	)	$	(20,223,264	)

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		478,776		$	7,064,437			322		$	4,280			27,826		$	400,742
Shares repurchased		(2,009,868	)		(29,646,475	)		(5,540	)		(81,835	)		(253,109	)		(3,721,875	)
Shares converted from Class B to Class A		14,394			207,494			(14,332	)		(207,494	)		—			—
Dividends reinvested		89,586			1,296,304			—			—			2,021			29,340
Net decrease		(1,427,112	)	$	(21,078,240	)		(19,550	)	$	(285,049	)		(223,262	)	$	(3,291,793	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		46,448		$	677,794			12,305,196		$	181,080,814
Shares repurchased		(701,510	)		(10,350,068	)		(14,320,429	)		(210,773,917	)
Dividends reinvested		21,785			315,880			704,054			10,173,781
Net decrease		(633,277	)	$	(9,356,394	)		(1,311,179	)	$	(19,519,322	)

337

PACE Select Advisors Trust

Notes to financial statements

PACE Large Co Growth Equity Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		368,063		$	6,293,081			—		$	—			16,815		$	267,832
Shares repurchased		(660,165	)		(11,692,399	)		(789	)		(13,566	)		(56,460	)		(912,011	)
Shares converted from Class B to Class A		1,290			22,760			(1,402	)		(22,760	)		—			—
Net decrease		(290,812	)	$	(5,376,558	)		(2,191	)	$	(36,326	)		(39,645	)	$	(644,179	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		12,823		$	235,091			9,668,622		$	174,042,940
Shares repurchased		(112,418	)		(2,031,452	)		(12,344,173	)		(220,446,389	)
Dividends reinvested		1,476			26,597			86,991			1,560,613
Net decrease		(98,119	)	$	(1,769,764	)		(2,588,560	)	$	(44,842,836	)

For the year ended July 31, 2010:

	Class A						Class B							Class C
	Shares			Amount			Shares				Amount			Shares			Amount
Shares sold		360,614		$	5,374,502			—			$	—			11,242		$	150,284
Shares repurchased		(821,528	)		(12,255,768	)		(6,348	)			(83,644	)		(60,499	)		(835,844	)
Shares converted from Class B to Class A		3,150			46,396			(3,398	)			(46,396	)		—			—
Dividends reinvested		7,175			107,262			—				—			—			—
Net decrease		(450,589	)	$	(6,727,608	)		(9,746	)		$	(130,040	)		(49,257	)	$	(685,560	)
	Class Y						Class P
	Shares			Amount			Shares				Amount
Shares sold		41,512		$	629,541			11,896,506			$	180,391,030
Shares repurchased		(458,112	)		(6,994,734	)		(13,763,085	)			(208,711,469	)
Dividends reinvested		6,572			100,359			261,629		��		3,976,824
Net decrease		(410,028	)	$	(6,264,834	)		(1,604,950	)		$	(24,343,615	)

PACE Small/Medium Co Value Equity Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		260,606		$	4,305,822			—		$	—			2,263		$	35,547
Shares repurchased		(333,884	)		(5,514,100	)		—			—			(68,593	)		(1,033,795	)
Shares converted from Class B to Class A		3,814			59,064			(4,188	)		(59,064	)		—			—
Net decrease		(69,464	)	$	(1,149,214	)		(4,188	)	$	(59,064	)		(66,330	)	$	(998,248	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		1,762		$	29,583			3,744,485		$	63,666,448
Shares repurchased		(2,277	)		(36,808	)		(5,218,114	)		(87,944,311	)
Dividends reinvested		9			159			8,363			141,753
Net decrease		(506	)	$	(7,066	)		(1,465,266	)	$	(24,136,110	)

338

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		297,532		$	4,074,207			56		$	830			9,934		$	128,678
Shares repurchased		(404,304	)		(5,637,104	)		(234	)		(2,966	)		(120,560	)		(1,511,606	)
Shares converted from Class B to Class A		3,902			55,684			(4,260	)		(55,684	)		—			—
Dividends reinvested		1,166			15,652			—			—			—			—
Net decrease		(101,704	)	$	(1,491,561	)		(4,438	)	$	(57,820	)		(110,626	)	$	(1,382,928	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		25,574		$	342,820			4,314,115		$	60,400,048
Shares repurchased		(269,745	)		(3,763,238	)		(6,013,602	)		(84,714,764	)
Dividends reinvested		959			13,160			58,453			797,906
Net decrease		(243,212	)	$	(3,407,258	)		(1,641,034	)	$	(23,516,810	)

PACE Small/Medium Co Growth Equity Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		314,027		$	4,764,920			—		$	—			24,821		$	350,495
Shares repurchased		(462,972	)		(7,121,652	)		(7	)		(126	)		(36,073	)		(487,364	)
Shares converted from Class B to Class A		543			8,424			(603	)		(8,424	)		—			—
Net decrease		(148,402	)	$	(2,348,308	)		(610	)	$	(8,550	)		(11,252	)	$	(136,869	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		2,139		$	32,122			3,937,214		$	62,571,970
Shares repurchased		(1,399	)		(23,934	)		(6,096,566	)		(96,219,422	)
Net increase (decrease)		740		$	8,188			(2,159,352	)	$	(33,647,452	)

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		372,728		$	4,448,415			—		$	—			5,911		$	63,859
Shares repurchased		(532,918	)		(6,433,244	)		(3,198	)		(34,983	)		(54,864	)		(602,918	)
Shares converted from Class B to Class A		2,174			27,928			(2,395	)		(27,928	)		—			—
Net decrease		(158,016	)	$	(1,956,901	)		(5,593	)	$	(62,911	)		(48,953	)	$	(539,059	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		23,604		$	280,777			4,970,247		$	61,184,582
Shares repurchased		(415,257	)		(5,102,238	)		(6,588,473	)		(81,694,977	)
Net decrease		(391,653	)	$	(4,821,461	)		(1,618,226	)	$	(20,510,395	)

339

PACE Select Advisors Trust

Notes to financial statements

PACE International Equity Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		364,568		$	4,725,654			—		$	—			4,235		$	55,191
Shares repurchased		(1,124,903	)		(14,576,281	)		(876	)		(10,940	)		(61,106	)		(774,473	)
Shares converted from Class B to Class A		739			9,579			(736	)		(9,579	)		—			—
Dividends reinvested		83,851			1,064,071			—			—			2,571			32,114
Net decrease		(675,745	)	$	(8,776,977	)		(1,612	)	$	(20,519	)		(54,300	)	$	(687,168	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		27,582		$	364,308			11,927,604		$	155,108,192
Shares repurchased		(487,348	)		(6,360,275	)		(11,743,974	)		(151,687,751	)
Dividends reinvested		34,096			431,995			1,109,714			14,037,877
Net increase (decrease)		(425,670	)	$	(5,563,972	)		1,293,344		$	17,458,318

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		503,111		$	6,154,751			—		$	—			1,004		$	14,453
Shares repurchased		(1,050,216	)		(12,862,565	)		(2,628	)		(31,642	)		(54,910	)		(661,529	)
Shares converted from Class B to Class A		1,355			16,554			(1,358	)		(16,554	)		—			—
Dividends reinvested		111,135			1,369,177			26			324			4,283			51,910
Net decrease		(434,615	)	$	(5,322,083	)		(3,960	)	$	(47,872	)		(49,623	)	$	(595,166	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		123,787		$	1,550,206			13,345,211		$	162,250,576
Shares repurchased		(1,010,798	)		(12,327,501	)		(13,418,026	)		(161,928,300	)
Dividends reinvested		65,958			810,623			1,296,971			15,914,200
Net increase (decrease)		(821,053	)	$	(9,966,672	)		1,224,156		$	16,236,476

PACE International Emerging Markets Equity Investments

For the year ended July 31, 2011:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		432,002		$	5,829,038			—		$	—			13,242		$	169,950
Shares repurchased		(370,304	)		(5,052,285	)		(392	)		(5,136	)		(74,900	)		(957,439	)
Shares converted from Class B to Class A		1,021			13,911			(1,087	)		(13,911	)		—			—
Dividends reinvested		10,985			149,945			—			—			—			—
Net increase (decrease)		73,704		$	940,609			(1,479	)	$	(19,047	)		(61,658	)	$	(787,489	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		112,481		$	1,534,065			4,268,386		$	59,350,642
Shares repurchased		(593,537	)		(8,188,910	)		(4,306,615	)		(59,201,070	)
Dividends reinvested		12,721			176,698			120,966			1,674,175
Net increase (decrease)		(468,335	)	$	(6,478,147	)		82,737		$	1,823,747

340

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		293,755		$	3,411,311			2,997		$	32,222			59,539		$	620,009
Shares repurchased		(435,195	)		(5,038,895	)		(2,946	)		(33,469	)		(95,114	)		(1,013,907	)
Shares converted from Class B to Class A		7,921			89,017			(8,423	)		(89,017	)		—			—
Dividends reinvested		20,292			234,169			—			—			3,397			36,756
Net decrease		(113,227	)	$	(1,304,398	)		(8,372	)	$	(90,264	)		(32,178	)	$	(357,142	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		366,046		$	4,338,509			3,830,899		$	45,173,569
Shares repurchased		(1,745,193	)		(20,603,579	)		(4,891,148	)		(57,341,191	)
Dividends reinvested		46,841			549,454			251,595			2,943,696
Net decrease		(1,332,306	)	$	(15,715,616	)		(808,654	)	$	(9,223,926	)

PACE Global Real Estate Securities Investments

For the year ended July 31, 2011:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		181,474		$	1,051,599			4,228		$	24,012
Shares repurchased		(218,850	)		(1,275,191	)		(1,845	)		(11,092	)
Dividends reinvested		47,248			256,556			2,033			11,040
Net increase		9,872		$	32,964			4,416		$	23,960
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		12,459		$	72,352			5,149,263		$	29,897,911
Shares repurchased		(3,100	)		(18,283	)	��	(3,305,551	)		(19,199,030	)
Dividends reinvested		2,000			10,900			1,015,251			5,512,810
Net increase		11,359		$	64,969			2,858,963		$	16,211,691

For the year ended July 31, 2010:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		283,967		$	1,491,573			2,860		$	14,196
Shares repurchased		(254,559	)		(1,343,395	)		(1,174	)		(6,091	)
Dividends reinvested		52,970			269,088			2,443			12,410
Net increase		82,378		$	417,266			4,129		$	20,515
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		17,273		$	93,233			4,722,449		$	24,935,558
Shares repurchased		—			—			(2,835,106	)		(14,855,925	)
Dividends reinvested		869			4,423			1,120,076			5,690,179
Net increase		18,142		$	97,656			3,007,419		$	15,769,812

341

PACE Select Advisors Trust

Notes to financial statements

PACE Alternative Strategies Investments

For the year ended July 31, 2011:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		3,255,936		$	30,672,672			209,720		$	1,928,515
Shares repurchased		(2,675,217	)		(25,135,225	)		(269,638	)		(2,495,833	)
Dividends reinvested		58,309			546,937			1,959			18,066
Net increase (decrease)		639,028		$	6,084,384			(57,959	)	$	(549,252	)
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		28,635		$	269,901			17,084,492		$	161,401,010
Shares repurchased		(78,454	)		(734,955	)		(10,148,149	)		(95,676,428	)
Dividends reinvested		1,404			13,223			516,866			4,858,539
Net increase (decrease)		(48,415	)	$	(451,831	)		7,453,209		$	70,583,121

For the year ended July 31, 2010:

	Class A						Class B						Class C
	Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		2,529,691		$	23,129,053			—		$	—			228,421		$	2,039,743
Shares repurchased		(3,794,681	)		(34,566,460	)		(3,392	)		(30,354	)		(220,007	)		(1,967,859	)
Dividends reinvested		18,849			170,776			—			—			—			—
Net increase (decrease)		(1,246,141	)	$	(11,266,631	)		(3,392	)	$	(30,354	)		8,414		$	71,884
	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		313,777		$	2,854,661			13,022,405		$	119,119,763
Shares repurchased		(1,658,490	)		(15,104,028	)		(10,188,891	)		(92,956,694	)
Dividends reinvested		3,063			27,810			246,494			2,238,223
Net increase (decrease)		(1,341,650	)	$	(12,221,557	)		3,080,008		$	28,401,292

Redemption fees

Each class of each series of the Trust, with the exception of PACE Money Market Investments, will impose a 1% redemption fee on shares sold or exchanged within 90 days of their purchase date, subject to limited exemptions as noted in the prospectuses. This amount is paid to the applicable Portfolio. The redemption fees earned by the Portfolios are disclosed in the Statement of changes in net assets. For the year ended July 31, 2011, redemption fees represent less than $0.005 per share.

Federal tax status

Each of the Portfolios intends to distribute substantially all of its 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, net realized capital gains and certain other amounts, if any, each Portfolio intends not to be subject to a federal excise tax.

342

PACE Select Advisors Trust

Notes to financial statements

The tax character of distributions paid during the fiscal years ended July 31, 2011 and July 31, 2010 were as follows:

	2011								2010
Portfolio	Tax-exempt income		Ordinary Income		Long term realized capital gains		Return of capital		Tax-exempt income		Ordinary Income		Long term realized capital gains		Return of capital
PACE Money Market Investments	$	—	$	37,652	$	—	$	—	$	—	$	54,050	$	—	$	—
PACE Government Securities Fixed Income Investments		—		41,351,427		638,665		—		—		36,810,388		5,636,347		—
PACE Intermediate Fixed Income Investments		—		10,805,263		—		—		—		15,576,758		—		—
PACE Strategic Fixed Income Investments				47,433,092		2,564,462		—		—		30,831,986		799,628		—
PACE Municipal Fixed Income Investments		10,001,108		7,444		—		—		10,048,679		10,260		—		—
PACE International Fixed Income Investments		—		14,720,052		—		—		—		30,716,473		—		1,050,578
PACE High Yield Investments		—		17,938,536		1,377,543		—		—		15,132,172		1,293,344
PACE Large Co Value Equity Investments		—		11,781,264		—		—		—		12,292,110		—		—
PACE Large Co Growth Equity Investments		—		1,657,698		—		—		—		4,319,077		—		—
PACE Small/Medium Co Value Equity Investments		—		147,333		—		—		—		848,966		—		—
PACE International Equity Investments		—		16,288,751		—		—		—		18,770,499		—		—
PACE International Emerging Markets Equity Investments		—		2,080,376		—		—		—		3,860,843		—		—
PACE Global Real Estate Securities Investments		—		6,036,659		—		—		—		6,163,150		—		—
PACE Alternative Strategies Investments		—		5,634,308		—		—		—		2,505,432		—		—

At July 31, 2011, the components of accumulated earnings (deficit) on a tax basis were as follows:

Portfolio	Undistributed ordinary income		Undistributed long-term capital gains		Accumulated realized capital and other losses			Unrealized appreciation (depreciation)		Total
PACE Money Market Investments	$	—		—		(753	)		—	$	(753	)
PACE Government Securities Fixed Income Investments		2,284,476		850,769		(2,677,946	)		8,320,057		8,777,356
PACE Intermediate Fixed Income Investments		415,703		—		(13,395,229	)		9,874,059		(3,105,467	)
PACE Strategic Fixed Income Investments		5,001,427		5,612,430		(2,411,734	)		31,356,086		39,558,209
PACE Municipal Fixed Income Investments		—		—		(2,304,884	)		16,248,796		13,943,912
PACE International Fixed Income Investments		16,878,505		—		(18,427,768	)		46,015,301		44,466,038
PACE High Yield Investments		—		362,496		(2,793	)		14,863,654		15,223,357
PACE Large Co Value Equity Investments		7,999,067		—		(237,718,073	)		57,935,514		(171,783,492	)
PACE Large Co Growth Equity Investments		2,434,116		—		(145,245,252	)		203,489,109		60,677,973
PACE Small/Medium Co Value Equity Investments		—		—		(38,360,368	)		39,093,339		732,971

343

PACE Select Advisors Trust

Notes to financial statements

Portfolio	Undistributed ordinary income		Undistributed long-term capital gains		Accumulated realized capital and other losses			Unrealized appreciation (depreciation)		Total
PACE Small/Medium Co Growth Equity Investments	$	—	$	—	$	(29,263,978	)	$	92,330,627	$	63,066,649
PACE International Equity Investments		16,895,667		—		(257,272,050	)		41,162,961		(199,213,422	)
PACE International Emerging Markets Equity Investments		2,533,088		2,730,463		(462,361	)		12,692,871		17,494,061
PACE Global Real Estate Securities Investments		2,565,339		—		(42,122,741	)		9,940,624		(29,616,778	)
PACE Alternative Strategies Investments		—				(119,890,147	)		6,753,252		(113,136,895	)

At July 31, 2011, the following Portfolios had net capital loss carryforwards available as reductions, to the extent provided in the regulations, of future net realized gains. These losses expire as follows:

	Expiration dates
Portfolio	July 31, 2012		July 31, 2013		July 31, 2014		July 31, 2015		July 31, 2016		July 31, 2017		July 31, 2018		July 31, 2019		Total
PACE Money Market Investments	$	—	$	—	$	—	$	—	$	—	$	—	$	94	$	23	$	117
PACE Intermediate Fixed Income Investments		2,348,512		—		3,023,333		1,958,404		—		—		3,551,093		—		10,881,342
PACE Municipal Fixed Income Investments		—		—		—		—		794,627		—		1,510,257		—		2,304,884
PACE International Fixed Income Investments		—		—		—		1,422,528		2,354,563		765,140		7,784,695		—		12,326,926
PACE Large Co Value Equity Investments		—		—		—		—		—		31,704,391		206,013,682		—		237,718,073
PACE Large Co Growth Equity Investments		—		—		—		—		—		—		145,245,252		—		145,245,252
PACE Small/Medium Co Value Equity Investments		—		—		—		—		—		—		38,360,368		—		38,360,368
PACE Small/Medium Co Growth Equity Investments		—		—		—		—		—		5,318,367		23,945,611		—		29,263,978
PACE International Equity Investments		—		—		—		—		—		42,420,347		214,851,703		—		257,272,050
PACE Global Real Estate Securities Investments		—		—		—		—		—		15,250,731		26,828,947		—		42,079,678
PACE Alternative Strategies Investments		—		—		—		—		—		16,499,361		88,910,660				105,410,021

344

PACE Select Advisors Trust

Notes to financial statements

During the fiscal year, the following Portfolios utilized capital loss carryforwards to offset current year realized gains:

Portfolio	Capital loss carryforwards utilized
PACE Intermediate Fixed Income Investments	$	7,005,972
PACE Municipal Fixed Income Investments		1,132,447
PACE International Fixed Income Investments		4,917,847
PACE Large Co Value Equity Investments		107,166,808
PACE Large Co Growth Equity Investments		93,822,789
PACE Small/Medium Co Value Equity Investments		55,202,231
PACE Small/Medium Co Growth Equity Investments		61,234,181
PACE International Equity Investments		32,739,806
PACE International Emerging Markets Equity Investments		52,507,478
PACE Global Real Estate Securities Investments		1,265,997
PACE Alternative Strategies Investments		19,372,329

In accordance with US Treasury regulations, the following Portfolios have elected to defer realized capital losses and foreign currency losses arising after October 31, 2010. Such losses are treated for tax purposes as arising on August 1, 2011:

Portfolio	Capital losses			Foreign currency losses
PACE Money Market Investments	$	(636	)		—
PACE Government Securities Fixed Income Investments		(2,677,946	)		—
PACE Intermediate Fixed Income Investments		(2,132,886	)		(121,512	)
PACE International Fixed Income Investments		(86,234	)		—
PACE High Yield Investments		—			(2,793	)
PACE Global Real Estate Securities Investments		—			(43,063	)
PACE Alternative Strategies Investments		(441,785	)		(13,802,983	)

At July 31, 2011, the effect of permanent "book/tax" reclassifications resulted in increases and decreases to components of the Portfolios' net assets as follows:

Portfolio	Accumulated net investment income/( loss)			Accumulated net realized gain/(loss)			Beneficial interest
PACE Money Market Investments	$	—		$	129		$	(129	)
PACE Government Securities Fixed Income Investments		4,126,569			(4,126,569	)		—
PACE Intermediate Fixed Income Investments		197,439			(197,439	)		—
PACE Strategic Fixed Income Investments		(4,014,759	)		4,014,759			—
PACE Municipal Fixed Income Investments		1,231			—			(1,231	)
PACE International Fixed Income Investments		25,280,389			(25,280,389	)		—
PACE High Yield Investments		3,292			(3,292	)		—
PACE Small/Medium Co Value Equity Investments		386,473			23,406			(409,879	)
PACE Small/Medium Co Growth Equity Investments		3,116,306			—			(3,116,306	)
PACE International Equity Investments		3,266,413			(3,266,413	)		—
PACE International Emerging Markets Equity Investments		(681,997	)		681,997			—
PACE Global Real Estate Securities Investments		2,111,468			(2,111,468	)		—
PACE Alternative Strategies Investments		(8,582,121	)		13,199,792			(4,617,671	)

345

PACE Select Advisors Trust

Notes to financial statements

These differences are primarily due to tax treatment of foreign currency and futures transactions, net operating losses, paydown gains and losses, distributions in excess of net investment income, disposition of PFIC investments, swap adjustments, REIT adjustments, tax character of distributions and adjustments for certain debt obligations.

As of and during the year ended July 31, 2011, the Portfolios did not have any liabilities for any uncertain tax positions. The Portfolios recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of operations. During the year ended July 31, 2011, the Portfolios did not incur any interest or penalties.

Each of the tax years in the four year period ended July 31, 2011, remains subject to examination by the Internal Revenue Service and state taxing authorities.

346

PACE Select Advisors Trust

Report of Ernst & Young LLP, independent registered public accounting firm

The Board of Trustees and Shareholders of
PACE Select Advisors Trust

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of PACE Select Advisors Trust (formerly UBS PACE Select Advisors Trust) (comprising, respectively, 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 International Fixed Income Investments (formerly UBS PACE Global Fixed Income Investments), PACE High Yield Investments, PACE Large Co Value Equity Investments, PACE Large Co Growth Equity Investments, PACE Small/Medium Co Value Equity Investments, PACE Small/Medium Co Growth Equity Investments, PACE International Equity Investments, PACE International Emerging Markets Equity Investments, PACE Global Real Estate Securities Investments and PACE Alternative Strategies Investments, collectively the "Trust") as of July 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trust's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2011, by correspondence with the custodian and others, or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective series constituting PACE Select Advisors Trust at July 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated periods, in conformity with US generally accepted accounting principles.

New York, New York
September 29, 2011

347

PACE Select Advisors Trust

Tax information (unaudited)

We are required by subchapter M of the Internal Revenue Code of 1986, as amended, to advise you within 60 days of each Portfolio's fiscal year end (July 31, 2011) as to the federal tax status of distributions received by shareholders during such fiscal year. Accordingly, the percentage of dividends paid that qualify for the dividends received deduction for corporate shareholders and the amount of foreign tax credit to be passed through to shareholders are as follows:

Portfolio	Dividend Received Deduction			Foreign Tax Credit
PACE Large Co Value Equity Investments		100	%		—
PACE Large Co Growth Equity Investments		100	%		—
PACE Small/Medium Co Value Equity Investments		98.28	%		—
PACE International Equity Investments		—		$	1,188,804
PACE International Emerging Markets Equity Investments		—			1,556,443
PACE Global Real Estate Securities Investments		0.04	%		—
PACE Alternative Strategies Investments		10.86	%		—

Also, for the fiscal year ended July 31, 2011, the foreign source income for information reporting purposes for PACE International Equity Investments and PACE International Emerging Markets Equity Investments is $31,191,629 and $9,076,120, respectively.

For the period ended July 31, 2011, certain dividends paid by the Portfolios below may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the period, the amounts below represent the maximum amount that may be considered qualified dividend income.

Portfolio	Maximum amount considered qualified dividend income
PACE Large Co Value Equity Investments	$	11,781,264
PACE Large Co Growth Equity Investments		1,657,698
PACE Small/Medium Co Value Equity Investments		147,333
PACE International Equity Investments		16,288,751
PACE International Emerging Markets Equity Investments		2,080,376
PACE Global Real Estate Securities Investments		6,036,659
PACE Alternative Strategies Investments		5,634,308

Dividends received by tax-exempt recipients (e.g., IRAs and Keoghs) need not be reported as taxable income. Some retirement trusts (e.g., corporate, Keogh and 403(b)(7) plans) may need this information for their annual information reporting.

Shareholders should not use the above information to prepare their tax returns. Since each Portfolio's fiscal year is not the calendar year, another notification will be sent with respect to calendar year 2011. Such notification, which will reflect the amount to be used by calendar year taxpayers on their federal income tax returns, will be made in conjunction with Form 1099 DIV and will be mailed in February 2012. Shareholders are advised to consult their own tax advisers with respect to the tax consequences of their investment in each of the Portfolios.

348

PACE Select Advisors Trust

General information (unaudited)

Monthly and quarterly portfolio holdings disclosure

Each Portfolio will file its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Portfolios' FormsN-Q are available on the SEC's Web site at http://www.sec.gov. The Portfolios' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC 0330. Additionally, you may obtain copies of Forms N-Q from the Portfolios upon request by calling 1-800-647 1568.

In addition, PACE Money Market Investments discloses, on a monthly basis: (a) a complete schedule of its portfolio holdings; and (b) information regarding its weighted average maturity and weighted average life on UBS's Web site at the following internet address: www.ubs.com/usmoneymarketfundsholdings. In addition, at this location, you will find a link to more detailed Fund information appearing in filings with the SEC on Form N-MFP.

Proxy voting policies, procedures and record

You may obtain a description of each Portfolio's (1) proxy voting policies, (2) proxy voting procedures and (3)information regarding how a Portfolio voted any proxies related to portfolio securities during the most recent 12-month period ended June 30 for which an SEC filing has been made, without charge, upon request by contacting a Portfolio directly at 1-800-647 1568, online on a Portfolio's Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's Web site (http://www.sec.gov).

Other tax information

Pursuant to Section 871(k)(2)(C) of the Internal Revenue Code, PACE Money Market Investments designates 100% of its "qualified short-term gains" (as defined in Section 871(k)(2)(D)) related to the distribution made in December 2010 as short-term capital gain dividends.

349

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

February 2011 Board Meeting

William Blair & Company L.L.C.

Background—At a meeting of the board of PACE Select Advisors Trust (the "Trust") on February 15-16, 2011, the members of the board, including the trustees who are not "interested persons" of the Trust (the "Independent Trustees") as defined in the Investment Company Act of 1940, as amended, considered and approved the proposed sub-advisory agreement between UBS Global Asset Management (Americas) Inc. ("UBS Global AM") and William Blair & Company L.L.C. ("William Blair") (the "Sub-Advisory Agreement") with respect to PACE International Emerging Markets Equity Investments (the "Portfolio"). In considering the approval of the Sub-Advisory Agreement, the board was able to draw on its knowledge of the Trust, its portfolios and UBS Global AM. The board recognized its familiarity with UBS Global AM and the investment management and sub-advisory agreements for this and other portfolios of the Trust, including the extensive materials the board had previously reviewed in connection with the annual reconsideration of the contracts for the portfolios, and noted that it had previously received a memorandum from its independent legal counsel discussing, among other things, the duties of the board members in considering approval of management and sub-advisory agreements. The board also received a memorandum from UBS Global AM discussing UBS Global AM's reasons for recommending William Blair as a sub-advisor to the Portfolio.

In its consideration of the approval of the Sub-Advisory Agreement, the board considered the following factors:

Nature, extent and quality of the services under the Sub-Advisory Agreement—The board's evaluation of the services to be provided by William Blair to the Portfolio took into account the board's knowledge and familiarity gained as board members of funds in the UBS New York fund complex, including the Trust and its portfolios. The board considered management's reasons for recommending William Blair as an additional sub-advisor to the Portfolio, including its belief that William Blair's strategy focuses on securities of companies that are attractive complements to the companies that may be the primary investments covered by the strategies of the incumbent sub-advisors (excluding the sub-advisor proposed to be terminated at the same meeting). The board also received materials from William Blair detailing its investment philosophy and met with representatives of William Blair, who discussed with the board their investment philosophies and process and the backgrounds and qualifications of the portfolio management team. The board concluded that, overall, it was satisfied with the nature, extent and quality of services expected to be provided to the Portfolio under the proposed Sub-Advisory Agreement.

Sub-Advisory fee—The board reviewed and considered the proposed contractual sub-advisory fee to be payable by UBS Global AM to William Blair in light of the nature, extent and quality of the sub-advisory services anticipated to be provided by William Blair. The board noted that the proposed contractual sub-advisory fee was generally in line with the sub-advisory fees paid to the Portfolio's current sub-advisors. The board determined that the proposed sub-advisory fee was reasonable in light of the nature, extent and quality of the services proposed to be provided to the Portfolio under the Sub-Advisory Agreement.

Fund performance—The board received and considered composite performance information provided by William Blair. The board also noted that, as William Blair would be a new sub-advisor to the Portfolio, the current performance of the Portfolio was not a significant factor in the consideration of the approval of the Sub-Advisory Agreement.

Advisor profitability—Profitability of UBS Global AM or its affiliates in providing services to the Portfolio was not a significant factor considered by the board, as the sub-advisory fee would be paid by UBS Global AM out of the management fee paid to it by the Portfolio, and not by the Portfolio.

350

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

Economies of scale—The board noted that, as the sub-advisory fee for the Portfolio would be paid by UBS Global AM, not by the Portfolio, consideration of economies of scale with respect specifically to the sub-advisory fee was not relevant.

Other benefits to William Blair—The board was informed by management that William Blair's relationship with the Portfolio would be limited to its provision of sub-advisory services to the Portfolio and that therefore management believed that William Blair would not receive tangible ancillary benefits as a result of its relationship with the Portfolio, with the exception of possible benefits from soft dollars (e.g., research credits related to transaction commissions) for the Portfolio (which would also potentially benefit the Portfolio). The board recognized that William Blair could receive intangible benefits from its association with the Portfolio, such as increased name recognition or publicity from being selected as a sub-advisor to the Portfolio after an extensive review process. Similarly, the Portfolio could benefit from having a sub-advisor with an established or well-regarded reputation.

In light of all of the foregoing, the board approved the Sub-Advisory Agreement for the Portfolio.

No single factor reviewed by the board was identified by the board as the principal factor in determining whether to approve the Sub-Advisory Agreement. The Independent Trustees were advised by separate independent legal counsel throughout the process.

351

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

May 2011 Board Meeting

CBRE Clarion Securities, LLC

Background—At a meeting of the board of PACE Select Advisors Trust (the "Trust") on May 17-18, 2011, the members of the board, including the trustees who are not "interested persons" of the Trust as defined in the Investment Company Act of 1940, as amended, considered the reappointment of CBRE Clarion Securities, LLC ("Clarion") (formerly, ING Clarion Real Estate Securities, LLC ("ING CRES")) as a sub-advisor and approved the sub-advisory agreement between UBS Global Asset Management (Americas) Inc. ("UBS Global AM") and Clarion (the "Sub-Advisory Agreement") with respect to PACE Global Real Estate Securities Investments (the "Portfolio"). It was explained to the board that, upon the consummation of the anticipated acquisition of Clarion by CB Richard Ellis Group, Inc., a large real estate services company, the current sub-advisory agreement with ING CRES would automatically be terminated. In considering the approval of the Sub-Advisory Agreement, the board was able to draw on its knowledge of the Trust, its portfolios and UBS Global AM. The board recognized its familiarity with UBS Global AM and the investment management and sub-advisory agreements for this and other portfolios of the Trust, including the extensive materials the Board had previously reviewed in connection with the annual reconsideration of the contracts for the portfolios, and noted that it had previously received a memorandum from its independent legal counsel discussing, among other things, the duties of the board members in considering approval of management and sub-advisory agreements. The board also received a memorandum from UBS Global AM discussing UBS Global AM's reasons for recommending Clarion as a sub-advisor to the Portfolio.

In its consideration of the approval of the Sub-Advisory Agreement, the board considered the following factors:

Nature, extent and quality of the services under the Sub-Advisory Agreement—The board's evaluation of the services to be provided by Clarion to the Portfolio took into account the board's knowledge and familiarity gained as board members of funds in the UBS New York fund complex, including the Trust and its portfolios. The board considered management's reasons for recommending the reappointment of Clarion as a sub-advisor to the Portfolio, including that it currently manages a portion of the Portfolio's assets and was expected to continue to manage those assets in a materially similar manner. UBS Global AM expressed that Clarion did not expect any changes to relevant personnel as a result of the acquisition. The board also received materials from Clarion detailing the sub-advisor's investment philosophy and met with representatives of Clarion, who discussed with the board their investment philosophies and process, as well as the implications of the acquisition. The board concluded that, overall, it was satisfied with the nature, extent and quality of services expected to be provided to the Portfolio under the proposed Sub-Advisory Agreement.

Sub-Advisory fee—The board reviewed and considered the proposed contractual sub-advisory fee to be payable by UBS Global AM to Clarion in light of the nature, extent and quality of the sub-advisory services anticipated to be provided by Clarion. The board noted that Clarion has agreed to the same fee schedule as that currently in place, and that the proposed contractual sub-advisory fee was generally in line with the sub-advisory fee paid to the Portfolio's other current sub-advisor. The board determined that the proposed sub-advisory fee was reasonable in light of the nature, extent and quality of the services proposed to be provided to the Portfolio under the Sub-Advisory Agreement.

Fund performance—The board received and considered performance information provided by Clarion. The board also noted that UBS Global AM expects that the investment team will continue to perform at its current level after the transaction. The board concluded that, overall, it was satisfied with the performance of the Portfolio.

352

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

Advisor profitability—Profitability of UBS Global AM or its affiliates in providing services to the Portfolio was not a significant factor considered by the board, as the sub-advisory fee would be paid by UBS Global AM out of the management fee paid to it by the Portfolio, and not by the Portfolio.

Economies of scale—The board noted that, as the sub-advisory fee for the Portfolio would be paid by UBS Global AM, not by the Portfolio, consideration of economies of scale with respect specifically to the sub-advisory fee was not relevant.

Other benefits to Clarion—The board was informed by management that Clarion's relationship with the Portfolio would be limited to its provision of sub-advisory services to the Portfolio and that therefore management believed that Clarion would not receive tangible ancillary benefits as a result of its relationship with the Portfolio, with the exception of possible benefits from soft dollars (e.g., research credits related to transaction commissions) for the Portfolio (which would also potentially benefit the Portfolio). The board recognized that Clarion could receive intangible benefits from its association with the Portfolio, such as increased name recognition or publicity from being selected as a sub-advisor to the Portfolio after an extensive review process. Similarly, the Portfolio could benefit from having a sub-advisor with an established or well-regarded reputation.

In light of all of the foregoing, the board approved the Sub-Advisory Agreement for the Portfolio.

No single factor reviewed by the board was identified by the board as the principal factor in determining whether to approve the Sub-Advisory Agreement. The Independent Trustees were advised by separate independent legal counsel throughout the process.

353

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

July 6, 2011 Board Meeting

Mondrian Investment Partners Limited

Background—At a special meeting of the board of PACE Select Advisors Trust (the "Trust") held by telephone conference call on July 6, 2011, the members of the board, including the trustees who are not "interested persons" of the Trust (the "Independent Trustees") as defined in the Investment Company Act of 1940, as amended, considered and approved interim sub-advisory agreements between UBS Global Asset Management (Americas) Inc. ("UBS Global AM") and Mondrian Investment Partners Limited ("Mondrian") (each an "Interim Sub-Advisory Agreement") with respect to each of PACE International Equity Investments and PACE International Emerging Markets Equity Investments (each a "Portfolio" and together the "Portfolios"). For each Portfolio, it was necessary for the board to consider an Interim Sub-Advisory Agreement with Mondrian, a sub-advisor to the Portfolio, as a result of an anticipated change of control of Mondrian, that was expected to be consummated prior to the next in-person board meeting; the upcoming change of control would amount to an "assignment" of each current sub-advisory agreement and result in the termination of the sub-advisory agreement in accordance with its terms. The board was advised that the change of control of Mondrian was not expected to result in any personnel or strategy change that is likely to affect the Portfolios. The terms of each Interim Sub-Advisory agreement were substantially the same as the terms of each current sub-advisory agreement with Mondrian, except that: (i) the duration of the Interim Sub-Advisory Agreement was no more than 150 days from the date on which the current sub-advisory agreement terminated; (ii) the board (and shareholders) would be permitted to terminate the Interim Sub-Advisory Agreement on no more than 10 days' written notice to Mondrian; and (iii) Mondrian was not entitled to receive compensation from UBS Global AM under the Interim Sub-Advisory agreement for as long as it was in effect.The benefits of Mondrian's fee waiver would flow through UBS Global AM to each portfolio (UBS Global AM, in turn, agreed to pass through to each Portfolio, the benefits of the Mondrian fee waivers.) It was noted to the board that the superseding Sub-Advisory agreements between UBS Global AM and Mondrian would be considered later in the month in connection with the annual reconsideration of contracts. In considering the approval of each Interim Sub-Advisory Agreement, the board was able to draw on its knowledge of the Trust, its portfolios and UBS Global AM. The board recognized its familiarity with UBS Global AM, the portfolio management team and management record of Mondrian, and the investment management and sub-advisory agreements for this and other portfolios of the Trust, including the extensive materials the board had reviewed in connection with the prior annual reconsideration of the contracts for the portfolios, and noted that it had received a memorandum from its independent legal counsel discussing, among other things, the duties of the board members in considering approval of management and sub-advisory agreements. The board also received a memorandum discussing UBS Global AM's reasons for recommending Mondrian as a sub-advisor to the Portfolios.

In its consideration of the approval of each Sub-Advisory Agreement, the board considered the following factors:

Nature, extent and quality of the services under the Interim Sub-Advisory Agreement—The board's evaluation of the services to be provided by Mondrian to each Portfolio took into account the board's knowledge and familiarity gained as board members of funds in the UBS New York fund complex, including the Trust and its portfolios. The board received and considered information regarding the nature, extent and quality of services provided to the Portfolio by Mondrian during the past year. The board concluded that, overall, it was satisfied with the nature, extent and quality of services expected to be provided to each Portfolio under the proposed Interim Sub-Advisory Agreements.

Sub-Advisory fee—The board reviewed and considered the proposed contractual sub-advisory fee to be payable by UBS Global AM to Mondrian in light of the nature, extent and quality of the sub-advisory services anticipated to be provided by Mondrian. The board noted that the proposed contractual sub-advisory fee was generally in line

354

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

with the sub-advisory fees paid to the Portfolio's other current sub-advisors. It was also noted that Mondrian had agreed to waive the entirety of its sub-advisory fees under the Interim Sub-Advisory Agreements until superseding sub-advisory agreements could be considered at an in-person board meeting to be held later in the month. The board determined that the proposed sub-advisory fee was reasonable in light of the nature, extent and quality of the services proposed to be provided to each Portfolio under its Interim Sub-Advisory Agreement.

Fund performance—The board considered Mondrian's historical performance as a sub-advisor. The board concluded that, overall, it was satisfied with Mondrian's performance. The Board also recognized that it would be reconsidering each Portfolio's relationship with Mondrian at another meeting late in the month at which additional detailed performance information would be reviewed.

Advisor profitability—Profitability of UBS Global AM or its affiliates in providing services to the Portfolio was not a significant factor considered by the board, as the sub-advisory fee was being waived, which waiver was being passed through to the benefit of each Portfolio.

Economies of scale—The board noted that, as the sub-advisory fee was being waived, consideration of economies of scale was not relevant.

Other benefits to Mondrian—The board was informed by management that Mondrian's relationship with each Portfolio would be limited to its provision of sub-advisory services to the Portfolio and that therefore management believed that Mondrian would not receive tangible ancillary benefits as a result of its relationship with the Portfolio, with the exception of possible benefits from soft dollars (e.g., research credits related to transaction commissions) for the Portfolio (which would also potentially benefit the Portfolio). The board recognized that Mondrian could receive intangible benefits from its association with the Portfolio, such as increased name recognition or publicity from being selected as a sub-advisor to the Portfolio after an extensive review process. Similarly, the Portfolio could benefit from having a sub-advisor with an established or well-regarded reputation.

In light of all of the foregoing, the board approved the Interim Sub-Advisory Agreement for each Portfolio.

No single factor reviewed by the board was identified by the board as the principal factor in determining whether to approve the Interim Sub-Advisory Agreement for each Portfolio. The Independent Trustees were advised by separate independent legal counsel throughout the process.

355

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

July 19-20, 2011 Board Meeting

All Portfolios

Background—At a meeting of the board of PACE Select Advisors Trust (the "Trust") on July 19-20, 2011, the members of the board, including the trustees who are not "interested persons" of the Trust ("Independent Trustees"), as defined in the Investment Company Act of 1940, as amended, considered and approved the continuance of the investment management and administration agreement (the "Investment Management and Administration Agreement") between UBS Global Asset Management (Americas) Inc. ("UBS Global AM") and the Trust, on behalf of each series of the Trust (each a "Portfolio" and together the "Portfolios") and, for those Portfolios with sub-advisors, the sub-advisory agreements for the Portfolios, except that with respect to Mondrian Investment Partners Limited ("Mondrian"), new sub-advisory agreements were approved; the new Mondrian agreements were substantially the same as the sub-advisory agreements that had been in place for most of the prior year and which had been replaced by Interim Sub-Advisory Agreements earlier in July to address the automatic termination of prior sub-advisory agreements because of a change in control of the sub-advisor. (Throughout this discussion, each sub-advisor to a Portfolio is referred to as a "Sub-Advisor" and each sub-advisory agreement is referred to as a "Sub-Advisory Agreement.") In preparing for the meeting, the board members had requested and received extensive information from UBS Global AM to assist them, including information about the Portfolios' Sub-Advisors, as well as the management, sub-advisory, administrative and distribution arrangements for the Portfolios. The Independent Trustees discussed the materials initially provided by management prior to the scheduled board meeting. The Independent Trustees also met in executive session after management's presentation was completed to review the disclosure that had been made to them at the meeting. At all of these sessions the Independent Trustees were joined by their independent legal counsel. The Independent Trustees also received a memorandum from their independent legal counsel discussing the duties of board members in considering approval of management, sub-advisory, administration and distribution agreements.

In its consideration of the approval of the Investment Management and Administration Agreement and the Sub-Advisory Agreements, the board considered the following factors:

Nature, extent and quality of the services under the Investment Management and Administration Agreement and the Sub-Advisory Agreements—The board received and considered information regarding the nature, extent and quality of management services provided to the Portfolios by UBS Global AM and, for those Portfolios with sub-advisor(s), sub-advisory services provided by the particular Sub-Advisor during the past year. The board also considered the nature, extent and quality of administrative, distribution, and shareholder services performed by UBS Global AM and its affiliates for the Portfolios and the resources devoted to, and the record of compliance with, each Portfolio's compliance policies and procedures. The board noted that it received information at regular meetings throughout the year regarding the services rendered by UBS Global AM concerning the management of each Portfolio's affairs and UBS Global AM's role in coordinating providers of other services to the Portfolios. The board noted the complexity of this process for the Portfolios, given their broad range of investment strategies. The board noted that UBS Global AM provided extensive oversight of the Sub-Advisors for the Portfolios and reported to the board at each regular meeting on the Sub-Advisors' performance and made recommendations with respect to Sub-Advisor changes from time to time based on the performance of the Sub-Advisors and other relevant factors. The board's evaluation of the services provided by UBS Global AM and the Sub-Advisors took into account the board's knowledge and familiarity gained as board members of funds in the UBS New York fund complex, including the scope and quality of UBS Global AM's investment management and other capabilities and the quality of its administrative and other services. The board observed that the scope of services provided by UBS Global AM had expanded over time as a result of regulatory and other developments, including maintaining and monitoring its own and the Portfolios' expanded compliance programs. It also was noted that the Investment Management and Administration Agreement under consideration had been approved by shareholders at a special meeting of shareholders held in 2008.

356

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

The board had available to it the qualifications, backgrounds and responsibilities of the senior personnel at UBS Global AM responsible for the Portfolios and had previously received information regarding the person, persons or portfolio management team primarily responsible for the day-to-day portfolio management of each Portfolio and recognized that the Portfolios' senior personnel at UBS Global AM report to the board regularly and that at each regular meeting the board receives a detailed report on each Portfolio's performance and receives more extensive information periodically from each Sub-Advisor. The board also considered, based on its knowledge of UBS Global AM and its affiliates, the financial resources available to UBS Global AM and its parent organization, UBS AG. In that regard, the board received extensive financial information regarding UBS Global AM and noted that it was a wholly owned, indirect subsidiary of one of the largest financial services firms in the world. It was also noted that UBS Global AM had approximately $152 billion in assets under management as of March 31, 2011 and was part of the UBS Global Asset Management Division, which had approximately $621 billion in assets under management worldwide as of March 31, 2011. The board was also cognizant of, and considered, the regulatory and litigation actions and investigations occurring in the past few years involving UBS AG, UBS Global AM and certain of their affiliates.

The board concluded that, overall, it was satisfied with the nature, extent and quality of services provided (and expected to be provided) to the Portfolios under the Investment Management and Administration Agreement as well as under the Sub-Advisory Agreements.

Management and sub-advisory fees and expense ratios—For each Portfolio, the board reviewed and considered the contractual management fee (the "Contractual Management Fee") payable by the Portfolio to UBS Global AM in light of the nature, extent and quality of the advisory and administrative services provided by UBS Global AM. The board also reviewed and considered the fee waiver and/or expense reimbursement arrangements for the Portfolio (if any) and considered the actual fee rate (after taking any waivers and reimbursements into account) (the "Actual Management Fee"). The board considered whether UBS Global AM had entered into one or more fee waiver and/or expense reimbursement agreements with a Portfolio under which UBS Global AM was contractually obligated to waive its management fees and/or reimburse the Portfolio so that the total ordinary operating expenses of certain or all classes of a given Portfolio through November 28, 2011 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed specified limits for each class (or, with respect to certain Portfolios, an agreement to waive a portion of its management fee). The board also considered that each Portfolio with such a fee waiver/reimbursement agreement had agreed to repay UBS Global AM for those waived fees and/or reimbursed expenses if the Portfolio can do so over the following three fiscal years without causing its expenses in any of those years to exceed the expense caps. Additionally, the board received and considered information comparing each Portfolio's Contractual Management Fee, Actual Management Fee and overall expenses with those of funds in a group of funds selected and provided by Lipper, Inc. ("Lipper"), an independent provider of investment company data (the "Expense Group"), and, when appropriate, the board also received additional comparative data provided by Lipper on a supplemental expense group of sub-advised peers (which may include certain of the sub-advised peers contained within the primary Expense Group) (the "Supplemental Expense Group"). The board also noted that it had received supplemental information relating to net and gross fund yields and certain expense information for UBS money market funds, including PACE Money Market Investments, as compared to peers in the respective Expense Group. A discussion of the board's considerations with respect to each Portfolio's fees is set forth below.

In connection with its consideration of each Portfolio's management fees, the board also received information on UBS Global AM's standard institutional account fees for accounts of a similar investment type to each of the Portfolios. The board noted management's explanation that comparisons with such accounts may be of limited relevance given the different structures and regulatory requirements of mutual funds versus such accounts and the differences in the levels of services required by mutual funds and such accounts. The board also received information on fees charged to other mutual funds managed by UBS Global AM. The board did not receive

357

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

comparative information from Lipper with respect to the sub-advisory fees for those Portfolios with sub-advisors in connection with its consideration of sub-advisory fees. The board observed that it had received certain information regarding fees, profitability, compensation from other similar funds, and economies of scale from certain Sub-Advisors as part of the summary of each Sub-Advisor's responses to requests for due diligence materials in connection with the board's annual reconsideration of the Sub-Advisory Agreements; however, the board also observed that the compensation paid to a Sub-Advisor is paid by UBS Global AM, not by the particular Portfolio and, accordingly, that the retention of a Sub-Advisor generally does not increase the fees otherwise incurred by a Portfolio's shareholders (unless a management fee waiver level was affected by a sub-advisory fee change or a reallocation of assets).

Portfolio performance—For each Portfolio, the board received and considered (a) annualized total return information of the Portfolio compared to other funds (the "Performance Universe") selected by Lipper over the one-, three-, five-, ten-year (or shorter for newer Portfolios) and since inception periods ended April 30, 2011, and (b) annualized performance information for each year in the ten-year (or shorter) period ended April 30, 2011. The board was provided with a description of the methodology Lipper used to determine the similarity of a Portfolio with the funds included in its Performance Universe. The board also received updated supplemental data showing each Portfolio's performance through June 30, 2011. The board also considered UBS Global AM's statement that while management believed that the Lipper peer groups were useful in evaluating Portfolio expenses relative to peers, they were less useful in evaluating performance, as in many cases they were broad-based and consisted of funds that did not necessarily have similar investment parameters to the applicable Portfolio. The board also noted that it had received information throughout the year at periodic intervals with respect to each Portfolio's performance, in most cases with respect to certain benchmark indices, including with respect to each Sub-Advisor's performance. Further discussion of the board's considerations with respect to each Portfolio's performance is set forth below.

Advisor profitability—The board received and considered a profitability analysis of UBS Global AM and its affiliates in providing services to each Portfolio. The board also received profitability information with respect to the UBS New York fund complex as a whole. UBS Global AM's profitability was considered not excessive in light of the nature, extent and quality of the services provided to the Portfolios. To the extent provided by a Sub-Advisor, the board also reviewed information with respect to the Sub-Advisor's profitability in providing services to a Portfolio. The board did not consider such Sub-Advisor profitability information highly relevant as the sub-advisory fees are paid by UBS Global AM, not by the relevant Portfolio.

Economies of scale—The board received and considered information from management regarding whether UBS Global AM realized economies of scale as the Portfolios' assets grew, whether the Portfolios have appropriately benefited from any economies of scale, and whether there is potential for realization of any further economies of scale for the Portfolios. The board considered whether economies of scale in the provision of services to the Portfolios were being passed along to the shareholders. The board noted that each Portfolio's Contractual Management Fee contained breakpoints, with the exception of PACE Money Markets Investments. The board also noted that as of March 31, 2011, with the exception of PACE Small/Medium Co Growth Equity Investments, PACE Small/Medium Co Value Equity Investments, PACE International Emerging Markets Equity Investments, PACE Global Real Estate Securities Investments and PACE High Yield Investments, for those Portfolios having breakpoints, each Portfolio's asset level exceeded at least its first breakpoint. Accordingly, the board determined that actual economies of scale existed for those Portfolios whose assets had reached the first breakpoint level and potential economies of scale existed for those Portfolios whose assets had not yet reached their first breakpoint level. The board also noted that to the extent a Portfolio's assets have increased over time, it has realized other economies of scale as certain expenses, such as fees for Trustees, auditor and legal fees and printing and postage, become a smaller percentage of overall assets. The board also took note of the relationship between any breakpoints in a sub-advisory fee and the breakpoints in fees paid by the Portfolios to UBS Global AM.

358

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

Generally, in light of UBS Global AM's profitability data, the Actual Management Fee, the Contractual Management Fee and the breakpoints currently in place for the Portfolios, the board believed that UBS Global AM's sharing of potential and current economies of scale with the Portfolios was acceptable.

Other benefits to UBS Global AM and the Sub-Advisors—The board was informed by management that the Sub-Advisors' relationships with the sub-advised Portfolios were limited to their provision of sub-advisory services to these Portfolios, and that therefore, management believed that the Sub-Advisors and their affiliates did not receive tangible ancillary benefits as a result of the Sub-Advisors' relationships with the sub-advised Portfolios, with the exception of possible benefits from soft dollars (e.g., research credits related to transaction commissions) for the equity Portfolios (which would also potentially benefit such Portfolios) and possible limited benefits to certain affiliates of a Sub-Advisor, such as broker-dealers (e.g., an affiliate's execution of portfolio transactions subject to detailed restrictions in SEC rules and board oversight procedures). The board recognized that certain Sub-Advisors could receive intangible benefits from their association with the Trust, such as increased name recognition or publicity from being selected as Sub-Advisors to the Trust after an extensive review process. Similarly, a Portfolio could benefit from having a Sub-Advisor with an established or well-regarded reputation. In light of the costs of providing investment management, administrative and other services to the Portfolios and UBS Global AM's ongoing commitment to the Portfolios, the profits and other ancillary benefits that UBS Global AM and its affiliates received were considered reasonable.

In the discussions that follow, reference is made to "quintile" placement in Lipper expense group and performance universe categories. With respect to expenses, the first quintile represents that 20% of the funds in the Expense Group with the lowest fees or expenses, as applicable, and the fifth quintile represents that 20% of the funds in the Expense Group with the highest fees or expenses, as applicable. With respect to performance, the first quintile represents that 20% of the funds in the Performance Universe with the best relative performance, and the fifth quintile represents that 20% of the funds in the Performance Universe with the worst relative performance. Lipper quintile placement information is calculated on a share class basis. References to quintile placement appearing below relate to Class A shares, and the board had information relevant to other share classes (e.g., Class P shares) during its considerations.

PACE Large Co Growth Equity Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreements with each of Delaware Management Company, Wellington Management Company, LLP, Marsico Capital Management, LLC and Roxbury Capital Management LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the second quintile for the one- and three-year periods, in the third quintile for the five-year period and in the fourth quintile for the ten-year period and since inception. Management noted the Portfolio's strong performance relative to its Performance Universe over the recent period.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee and Actual Management Fee were in the fourth quintile and its total expenses were in the second quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. Management noted that in addition to total expenses being below the median, only three other funds in the Supplemental Expense Group, consisting of eleven sub-advised funds, had lower total expenses for the period.

359

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

PACE Large Co Value Equity Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreements with each of Pzena Investment Management, LLC, Westwood Management Corp. and Institutional Capital LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the third quintile for the one-year period and in the second quintile for the three-, five- and ten-year periods and since inception. Management noted the Portfolio's consistent relative performance within its Large Cap Value classification.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee and total expenses were in the third quintile and its Actual Management Fee was in the fourth quintile. Management noted that the Portfolio's total expenses were less than one basis point above the peer group median. It was also noted that the Portfolio's total expenses were below the median of the Supplemental Expense Group Management also discussed tactical adjustments to sub-advisor weightings in response to changes in market conditions and its perception of the ability of a Sub-Advisor to effectively implement its strategy in such conditions.

PACE Small/Medium Co Growth Equity Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreements with each of Copper Rock Capital Partners, LLC, Palisade Capital Management, L.L.C. and Riverbridge Partners, LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the third quintile for the one-, three- and ten-year periods, in the second quintile for the five-year period and in the fourth quintile since inception.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee and Actual Management Fee were in the third quintile and its total expenses were in the first quintile.

PACE Small/Medium Co Value Equity Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreements with each of Buckhead Capital Management, LLC, Metropolitan West Capital Management, LLC and Systematic Financial Management, L.P., the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the fifth quintile for the one-year period, in the third quintile for the three- and five-year periods and since inception and in the fourth quintile for the ten-year period. Management noted that the Portfolio had strong absolute performance for the one-year period, although it underperformed relative to the median.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee was in the second quintile, its Actual Management Fee was in the third quintile and its total expenses were in the first quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report.

360

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

PACE International Equity Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreements with each of Martin Currie Inc., Mondrian Investment Partners Limited and J.P. Morgan Investment Management Inc., the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the fifth quintile for the one-year period and in the fourth quintile for the three-, five- and ten-year periods and since inception. Management noted that, although the Portfolio underperformed on a relative basis compared to its peer group, it had strong absolute performance for the one-year period, and explained why it expects performance to improve.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee was in the fourth quintile, its Actual Management Fee was in the fifth quintile and its total expenses were in the third quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. Management noted that, compared to the Supplemental Expense Group, consisting of sub-advised funds, the Portfolio's Contractual Management Fee and Actual Management Fee were in line with the median, while its total expenses were below the median.

PACE International Emerging Markets Equity Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreements with each of Mondrian Investment Partners Limited, Pzena Investment Management, LLC, Delaware Management Company and William Blair & Company L.L.C., the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the third quintile for the one- and five-year periods, in the fourth quintile for the three-year period and in the fifth quintile for the ten-year period and since inception. Management noted that, although the Portfolio ranked in the third quintile for the one-year period, it had strong absolute performance.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee and Actual Management Fee were in the third quintile and its total expenses were in the fourth quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. Management noted that the Portfolio's Contractual Management Fee and Actual Management Fee were in line with the median, and that its total expenses were above the median partly due to slightly higher custodian fees and other non-management expenses versus the median. It was noted that custodian fees in emerging markets countries can vary significantly; therefore, the custodian fees at the Portfolio level are largely a function of actual countries invested in by the Portfolio relative to peers during the measurement period.

PACE Alternative Strategies Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreements with each of Analytic Investors, LLC, Goldman Sachs Asset Management, L.P., First Quadrant L.P., Wellington Management Company, LLP and Standard Life Investments (Corporate Funds) Limited, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the fifth quintile for the one-, three- and five-year periods and since inception. Management noted the Portfolio's considerably lower volatility profile compared to its stated peer group. Management discussed with the board its

361

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

belief that the Lipper peer group classification does not accurately reflect the complex strategies employed by the Portfolio and that while newly developed Lipper classifications might provide improved points of comparison, currently they include only a small sampling of other funds. Management instead provided the board with information comparing the Portfolio to Morningstar's new Multialternatives category, which it feels is a more appropriate classification, although not ideal. Referring to the supplemental data, management noted that the Portfolio's one-year performance ended June 30, 2011 is most representative of how the Portfolio is expected to perform and that the Portfolio's performance—especially its relatively mild volatility—is meeting management's expectations given the global markets.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were in the fifth quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. Reiterating its belief that the Lipper peer group classification does not provide a meaningful comparison, management stated that it continues to believe that the current fee arrangements for the Portfolio are reasonable.

In light of the complex strategies employed by the Portfolio and the evolving nature of the alternative investments space, the board determined that the management fee and the sub-advisory fees were reasonable in light of the nature, extent and quality of the services provided to the Portfolio. Nonetheless, the board determined that it would continue to monitor the Portfolio's expenses over the next year and requested that additional information be provided at the next quarterly board meeting.

PACE Global Real Estate Securities Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreement with each of CBRE Clarion Securities, LLC and Brookfield Investment Management Inc., the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the third quintile for the one-year period and in the fifth quintile for the three-year period and since inception.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee and total expenses were in the third quintile, while its Actual Management Fee was in the first quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report.

PACE Government Securities Fixed Income Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreement with Pacific Investment Management Company LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the third quintile for the one-year period and in the second quintile for the three-, five- and ten-year periods and since inception. Management noted that, despite the slightly higher fees, the Portfolio continues to perform well versus its peers.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee and total expenses were in the fifth quintile and its Actual Management Fee was in the fourth quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. Recognizing that the sub-advised universe of two funds, including the Portfolio, might not allow

362

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

for a very meaningful comparison, management noted that the Portfolio's Actual Management Fee and total expenses are in line with the other sub-advised fund in the peer group. In light of the Portfolio's strong performance versus its peers, the board determined that the management fee and the sub-advisory fees were satisfactory. Nonetheless, the board determined that it would continue to monitor the Portfolio's expenses over the next year.

PACE High Yield Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreement with MacKay Shields LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio was in the fifth quintile for the one-year period and in the first quintile for the three-year period and since inception. Management noted that the performance for the one-year period can be attributed to unprofitable positions in the energy sector and the automotive sector.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee was in the fourth quintile and its Actual Management Fee and total expenses were in the fifth quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. Management emphasized the exceptional nature and quality of the services provided by MacKay Shields LLC, noting its view that longer-term performance has been outstanding in this asset class. Although the board determined that the management fee and the sub-advisory fees were satisfactory, it noted that it would continue to monitor the Portfolio's expenses over the next year.

PACE Intermediate Fixed Income Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreement with BlackRock Financial Management, Inc., the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the third quintile for the one- and five-year periods, in the fourth quintile for the three-year period and in the fifth quintile for the ten-year period and since inception.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee was in the third quintile and its Actual Management Fee and total expenses were in the fourth quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. Management noted that the Portfolio's Contractual Management Fee and Actual Management Fee were at or within 0.01% of the median.

PACE Municipal Fixed Income Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreement with Standish Mellon Asset Management Company LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the second quintile for the one- and three-year periods, in the third quintile for the five-year period and in the fourth quintile for the ten-year period and since inception. Management noted the Portfolio's consistent very competitive relative performance for the most recent periods.

363

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee was in the third quintile and its Actual Management Fee and total expenses were in the fourth quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. Management noted that the Portfolio's Contractual Management Fee was slightly below the median, and that the small size of the Supplemental Expense Group, consisting of sub-advised funds, does not allow for a very meaningful comparison; however, the Portfolio's Actual Management Fee and total expenses were closer to the peer group median in the Supplemental Expense Group.

PACE Strategic Fixed Income Investments

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreement with Pacific Investment Management Company LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the first quintile for the one-, three-, five- and ten-year periods and since inception. Management noted that the Portfolio continues to perform extremely well, ranking in the first quintile for all time periods in the Lipper Intermediate Investment-Grade Debt classification. For the one-year period ended April 30, 2011, the Portfolio ranked in the top 19 percent, for the three-year period it ranked in the top six percent and for the five-year period it ranked in the top five percent.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee and Actual Management Fee were in the fourth quintile and its total expenses were in the fifth quintile. Management noted that the strategies and investments used by the Portfolio were more complex than those used by many other funds in the Expense Group, adding that performance is in the first quintile for all periods.

PACE International Fixed Income Investments
(formerly, UBS PACE Global Fixed Income Investments)

In approving the Investment Management and Administration Agreement and the Sub-Advisory Agreement with Rogge Global Partners plc, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the second quintile for the one-year period, in the fourth quintile for the three-year period and in the third quintile for the five- and ten-year periods and since inception.

Management and sub-advisory fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee was in the third quintile and its Actual Management Fee and total expenses were in the fourth quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. Management noted that although the Supplemental Expense Group, consisting of sub-advised funds, is relatively small, the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were generally in line with the median.

364

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

PACE Money Market Investments

In approving the Investment Management and Administration Agreement, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Lipper information showed that the Portfolio's performance was in the second quintile for the one- and ten-year periods and since inception and in the third quintile for the three- and five-year periods.

Management fees and expense ratios—The comparative Lipper information showed that the Portfolio's Contractual Management Fee was in the second quintile, its Actual Management Fee was in the first quintile and its total expenses were in the third quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report.

Conclusion

Based on its review and, in certain instances, management's explanations upon further questioning, the board concluded that each Portfolio's investment performance was satisfactory or acceptable and that each management fee and sub-advisory fee was reasonable in light of the nature, extent and quality of the services provided to the Portfolio under the applicable Investment Management and Administration Agreement and Sub-Advisory Agreement or Sub-Advisory Agreements, respectively.

In light of all of the foregoing, the board approved the Investment Management and Administration Agreement for each Portfolio and, for those Portfolios with Sub-Advisors, the Sub-Advisory Agreement(s) (noting that with respect to Mondrian, such approvals related to proposed new Sub-Advisory Agreements that would be replacing similar interim sub-advisory agreements). No single factor reviewed by the board was identified by the board as the principal factor in determining whether to approve the Investment Management and Administration Agreement or, for the sub-advised Portfolios, the Sub-Advisory Agreement(s). The Independent Trustees were advised by separate independent legal counsel throughout the process. The board discussed the proposed continuance of the Investment Management and Administration Agreement and the continuance/approval of new Sub-Advisory Agreements in private sessions with their independent legal counsel at which no representatives of UBS Global AM or the Sub-Advisors were present.

365

PACE Select Advisors Trust

Supplemental information (unaudited)

Board of Trustees & Officers

The Trust is governed by a Board of Trustees which oversees the Portfolios' operations. Each Trustee serves an indefinite term of office. Officers are appointed by the trustees and serve at the pleasure of the Board. The table below shows, for each trustee and officer, his or her name, address and age, the position held with the Trust, the length of time served as a trustee or officer of the Trust, the trustee's or officer's principal occupations during the last five years, the number of portfolios in the UBS fund complex overseen by the trustee or for which a person served as an officer, and other directorships held by the trustee.

The Trust's Statement of Additional Information contains additional information about the trustees and is available, without charge, upon request by calling 1-800-647 1568.

Interested Trustees:

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years	Number of portfolios in fund complex overseen by trustee	Other directorships held by trustee
Meyer Feldberg2; 69 Morgan Stanley 1585 Broadway 36th Floor New York, NY 10036	Trustee	Since 2001	Professor Feldberg is Dean Emeritus and Professor of Leadership and Ethics at Columbia Business School, although on an extended leave of absence. He is also a senior advisor to Morgan Stanley (financial services) (since March 2005). Professor Feldberg also serves as president of New York City Global Partners (an organization located in part of the Office of the Mayor of the City of New York that promotes interaction with other cities around the world) (since May 2007). Prior to July 2004, he was Dean and Professor of Management and Ethics of the Graduate School of Business at Columbia University (since 1989).	Professor Feldberg is a director or trustee of 27 investment companies (consisting of 59 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	Professor Feldberg is also a director of Primedia Inc. (publishing), Macy's, Inc. (operator of department stores), Revlon, Inc. (cosmetics), SAPPI, Ltd. (producer of paper) and the New York City Ballet.

366

PACE Select Advisors Trust

Supplemental information (unaudited)

Interested Trustees (concluded):

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years	Number of portfolios in fund complex overseen by trustee	Other directorships held by trustee
Barry M. Mandinach*3; 55	Trustee	Since July 2010	Mr. Mandinach is a managing director of UBS Global Asset Management (US) Inc. and UBS Global AM (collectively, "UBS Global AM—Americas region"). He has been with UBS Global AM—Americas region or its predecessors since 2001. He is the Head of Institutional & Wholesale Business (US) (since 2009) as well as Chief Marketing Officer (US) (since 2006).	Mr. Mandinach is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	None

Independent Trustees:

Richard Q. Armstrong; 75
c/o Keith Weller
Assistant Fund Secretary
UBS Global Asset Management (Americas) Inc.
1285 Avenue of the Americas,
New York, NY 10019 Trustee and Chairman of the Board of Trustees Since 2001 (Trustee) Since 2004 (Chairman of the Board of Trustees) Mr. Armstrong is chairman and principal of R.Q.A. Enterprises (management consulting firm) (since April 1991 and principal occupation since March 1995). Mr. Armstrong was president or chairman of a number of packaged goods companies (responsible for such brands as Canada Dry, Dr. Pepper, Adirondack Beverages and Moët Hennessy) (from 1982 until 1995). Mr. Armstrong is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager. None

367

PACE Select Advisors Trust

Supplemental information (unaudited)

Independent Trustees (continued):

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years	Number of portfolios in fund complex overseen by trustee	Other directorships held by trustee
Alan S. Bernikow; 70 207 Benedict Ave. Staten Island, NY 10314	Trustee	Since 2005	Mr. Bernikow is retired. He was a consultant on non-management matters for the firm of Deloitte & Touche (international accounting and consulting firm) (from June 2003 until 2007). Previously, he was deputy chief executive officer at Deloitte & Touche.	Mr. Bernikow is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	Mr. Bernikow is also a director of Revlon, Inc. (cosmetics) (and serves as the chair of its audit committee and as the chair of its compensation committee), a director of Mack-Cali Realty Corporation (real estate investment trust) (and serves as the chair of its audit committee); and a director of the Casual Male Retail Group, Inc. (menswear) (and serves as a member of its audit committee and as a member of its nominating and corporate governance committee). He is also a director of Premier American Bank, N.A.
Richard R. Burt; 64 McLarty Associates 900 17th Street, 8th Floor Washington, D.C. 20006	Trustee	Since 2001	Mr. Burt is a managing director to McLarty Associates (a consulting firm) with which he has been employed since April 2007. He was chairman of IEP Advisors (international investments and consulting firm) until February 2009. Prior to April 2007, he was chairman of Diligence Inc. (information and risk management firm).	Mr. Burt is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	Mr. Burt is also a director of Central Europe & Russia Fund, Inc., European Equity Fund, Inc. and The New Germany Fund, Inc.

368

PACE Select Advisors Trust

Supplemental information (unaudited)

Independent Trustees (concluded):

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years	Number of portfolios in fund complex overseen by trustee	Other directorships held by trustee
Bernard H. Garil; 71 6754 Casa Grande Way Delray Beach, FL 33446	Trustee	Since 2005	Mr. Garil is retired (since 2001). He was a managing director at PIMCO Advisory Services (from 1999 to 2001) where he served as president of closed-end funds and vice-president of the variable insurance product funds advised by OpCap Advisors (until 2001).	Mr. Garil is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	Mr. Garil is also a director of OFI Trust Company (commercial trust company), the Leukemia and Lymphoma Society (voluntary health agency) and a trustee for the Brooklyn College Foundation, Inc. (charitable foundation).
Heather R. Higgins; 52 255 E. 49th St., Suite 23D New York, NY 10017	Trustee	Since 2005	Ms. Higgins is the president and director of The Randolph Foundation (charitable foundation) (since 1991). Ms. Higgins also serves (or had served) on the boards of several non-profit charitable groups, including the Independent Women's Forum (chairman) (until term-limited), and the Philanthropy Roundtable (vice chairman). She also serves on the board of the Hoover Institution (from 2001 to 2007 and since January 2009).	Ms. Higgins is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	None

369

PACE Select Advisors Trust

Supplemental information (unaudited)

Officers:

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Joseph Allessie*; 46	Vice President and Assistant Secretary	Since 2005	Mr. Allessie is an executive director (since 2007) (prior to which he was a director) and deputy general counsel (since 2005) UBS Global AM—Americas region. Mr. Allessie is a vice president and assistant secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor, sub-advisor or manager.
Rose Ann Bubloski*; 43	Vice President and Assistant Treasurer	Since May 2011	Ms. Bubloski is an associate director (2003-2007 and 2008 to present) and senior manager of the US mutual fund treasury administration department of UBS Global AM—Americas region. From 2004 through 2007 she was a vice president and assistant treasurer of certain UBS funds. From 2007 to 2008 she was vice president at Cohen & Steers Capital Management, Inc. (investment manager). She is vice president and assistant treasurer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM serves as investment advisor or manager.
Mark E. Carver*; 47	President	Since May 2010	Mr. Carver is a managing director and Head of Product Development and Management-Americas for UBS Global AM—Americas region (since 2008). In this role, he oversees product development and management for both wholesale and institutional businesses. He is a member of the Americas Management Committee (since 2008) and the Regional Operating Committee (since 2008). Prior to 2008, Mr. Carver held a number of product-related or sales responsibilities with respect to funds, advisory programs and separately managed accounts. Mr. Carver joined a predecessor of an affiliated firm in 1985 and has been with UBS Global AM—Americas region (or its affiliates) since 1996. Mr. Carver is president of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.
Thomas Disbrow*; 45	Vice President and Treasurer	Since 2000 (Vice President) Since 2004 (Treasurer)	Mr. Disbrow is a managing director (since March 2011) (prior to which he was an executive director) (since 2007) (prior to which he was a director) (since 2000) and head of North America Fund Treasury (since March 2011) of UBS Global AM—Americas region. Mr. Disbrow is a vice president and treasurer and/or principal accounting officer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Michael J. Flook*; 46	Vice President and Assistant Treasurer	Since 2006	Mr. Flook is a director (since March 2010) (prior to which he was an associate director) (since 2006) and a senior manager of the US mutual fund treasury administration department of UBS Global AM—Americas region. Mr. Flook is a vice president and assistant treasurer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.

370

PACE Select Advisors Trust

Supplemental information (unaudited)

Officers (continued):

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Mark F. Kemper**; 53	Vice President and Secretary	Since 2004	Mr. Kemper is a managing director (since 2006) and head of the legal department of UBS Global AM—Americas region (since 2004). He has been secretary of UBS Global AM—Americas region since 2004, assistant secretary of UBS Global Asset Management Trust Company since 1993 and secretary of UBS AM Holdings (USA) Inc. (since 2001). Mr. Kemper is vice president and secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Joanne M. Kilkeary*; 43	Vice President and Assistant Treasurer	Since 1999	Ms. Kilkeary is a director (since 2008) (prior to which she was an associate director) (since 2000) and a senior manager (since 2004) of the US mutual fund treasury administration department of UBS Global AM—Americas region. Ms. Kilkeary is a vice president and assistant treasurer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Tammie Lee*; 40	Vice President and Assistant Secretary	Since 2005	Ms. Lee is an executive director (since 2010) (prior to which she was a director) and associate general counsel of UBS Global AM—Americas region (since 2005). Ms. Lee is a vice president and assistant secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Joseph McGill*; 49	Vice President and Chief Compliance Officer	Since 2004	Mr. McGill is a managing director (since 2006) and chief compliance officer (since 2003) at UBS Global AM—Americas region. Mr. McGill is a vice president and chief compliance officer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Nancy D. Osborn*; 45	Vice President and Assistant Treasurer	Since 2007	Mrs. Osborn is a director (since 2010) (prior to which she was an associate director) and a senior manager of the US mutual fund treasury administration department of UBS Global AM—Americas region (since 2006). Mrs. Osborn is a vice president and assistant treasurer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Robert Sabatino**; 38	Vice President	Since 2001	Mr. Sabatino is a managing director (since 2010) (prior to which he was an executive director) (since 2007), head of US taxable money markets (since 2009), and portfolio manager of UBS Global AM—Americas region in the short duration fixed income group (since 2001). Mr. Sabatino is a vice president of six investment companies (consisting of 37 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.

371

PACE Select Advisors Trust

Supplemental information (unaudited)

Officers (concluded):

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Eric Sanders*; 45	Vice President and Assistant Secretary	Since 2005	Mr. Sanders is a director and associate general counsel of UBS Global AM—Americas region (since 2005). Mr. Sanders is a vice president and assistant secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Andrew Shoup*; 55	Vice President and Chief Operating Officer	Since 2006	Mr. Shoup is a managing director and global head of the treasury administration department of UBS Global AM—Americas region (since July 2006). Mr. Shoup is also a director of UBS (IRL) Fund p.l.c. (since 2008). Prior to joining UBS Global AM—Americas region, he was chief administrative officer for the Legg Mason Partner Funds (formerly Smith Barney, Salomon Brothers, and CitiFunds mutual funds) from November 2003 to July 2006. Mr. Shoup is a vice president and chief operating officer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Keith A. Weller*; 50	Vice President and Assistant Secretary	Since 2000	Mr. Weller is an executive director and senior associate general counsel of UBS Global AM—Americas region (since 2005) and has been an attorney with affiliated entities since 1995. Mr. Weller is a vice president and assistant secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.

¹  Each trustee holds office for an indefinite term. Officers are appointed by the trustees and serve at the pleasure of the Board.

²  Professor Feldberg is deemed an "interested person" of the Trust as defined in the Investment Company Act of 1940, as amended, because he is a senior advisor to Morgan Stanley, a financial services firm with which the Trust may conduct transactions.

³  Mr. Mandinach is deemed an "interested person" of the Trust as defined in the Investment Company Act of 1940, as amended, because of his employment by UBS Global AM—Americas region.

*  This person's business address is 1285 Avenue of the Americas, New York, New York 10019-6028.

**  This person's business address is One North Wacker Drive, Chicago, Illinois 60606.

372

PRESORTED
STANDARD
U.S. POSTAGE
PAID
COMPUTERSHARE

UBS Global Asset Management (Americas) Inc.

1285 Avenue of the Americas

New York, NY 10019-6028

S003

Money Market Funds

PACE® Money Market Investments

Annual Report
July 31, 2011

PACE Money Market Investments

September 16, 2011

Dear Shareholder,

Performance

For the 12 months ended July 31, 2011, the Portfolio returned 0.01%, before the deduction of the maximum PACE program fee. (The Portfolio declined 1.97%, after the deduction of the maximum PACE program fee, for the same 12-month period.) Please remember that the PACE program fee is assessed outside the Portfolio at the PACE program account level. The program fee does not impact the determination of the Portfolio's net asset value per share. For comparison purposes, the median return of the Lipper Money Market Funds category was 0.01%. (Returns over various time periods are shown in the "Performance at a glance" table on page 4. Please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.)

Advisor's Comments

The economic recovery continued during the reporting period, although growth moderated as the period progressed. Elevated unemployment, housing market weakness, higher oil prices and supply disruptions following the devastating earthquake in Japan caused economic growth to decelerate. Against this backdrop, the Federal Reserve Board (the "Fed") maintained the federal funds rate at a historically low range between 0% and 0.25% during the reporting period. (The federal funds rate, or "fed

PACE Money
Market Investments

Investment Advisor:

UBS Global Asset Management (Americas) Inc.

Portfolio Manager:

Robert Sabatino

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, although it may be possible to lose money by investing in this Portfolio. 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.

1

PACE Money Market Investments

funds" rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) As a result, the yields of the securities in which the Portfolio invests remained extremely low, which impacted the Portfolio's yield.

We tactically adjusted the Portfolio's weighted average maturity (WAM)—which is the average duration of the securities in the Portfolio—but generally kept it in a fairly narrow range. When the reporting period began, the Portfolio had a WAM of 46 days. As of July 31, 2011, the Fund's WAM was 47 days.

At the issuer level, we maintained a greater-than-usual level of diversification over the 12-month period by investing in smaller positions, with the goal of reducing risk and keeping the Portfolio highly liquid. As the economic recovery continued over the period, we slightly increased the size of our positions in single issuers, typically purchasing up to 3% in single nongovernment issuers by the end of the reporting period. (The Portfolio is generally able to hold up to 5% in any one issuer, subject to certain exceptions.)

In terms of securities, over the 12-month period we increased the Portfolio's exposure to repurchase agreements and, to lesser extents, its allocation to commercial paper and a US bank note. In contrast, we decreased the Portfolio's exposure to US government and agency obligations, CDs and short-term corporate obligations. (Repurchase agreements are transactions in which the seller of a security agrees to buy it back at a predetermined time and price or upon demand.)

One final note, in response to revisions to the US Securities and Exchange Commission's ("SEC") rules governing money market funds, beginning on October 7, 2010, the Portfolio began disclosing, on a monthly basis: (a) a complete schedule of its portfolio holdings; and (b) information regarding its weighted average maturity and weighted average life. Also, beginning in February 2011, the Portfolio began including a link on UBS's Web site to more detailed Portfolio information appearing in filings with the SEC on Form N-MFP. This information is

2

PACE Money Market Investments

available on UBS's Web site at the following Internet address: www.ubs.com/usmoneymarketfundsholdings. This information will be updated monthly.

As always, we thank you for your continued support and welcome any comments or questions you may have.

Sincerely,

Mark E. Carver President, PACE Select Advisors Trust Managing Director, UBS Global Asset Management (Americas) Inc.	Robert Sabatino Portfolio Manager, PACE Money Market Investments Managing Director, UBS Global Asset Management (Americas) Inc.

This letter is intended to assist shareholders in understanding how the Portfolio performed during the year ended July 31, 2011. The views and opinions in this letter were current as of September 16, 2011. They are not guarantees of performance or investment results and should not be taken as investment advice.

Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Portfolio's future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. Investors should carefully read and consider a mutual fund's investment objectives, risks, charges, and expenses before investing. The prospectus contains this and other information about a mutual fund. For a current prospectus, contact UBS Global Asset Management at 888-793 8637, or visit us on the Web at www.ubs.com/globalam-us.

3

PACE Money Market Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/11	1 year			5 years			10 years
PACE Money Market Investments before deducting maximum PACE program fee1		0.01	%		1.80	%		1.82	%
PACE Money Market Investments after deducting maximum PACE program fee1		(1.97	)%		(0.22	)%		(0.20	)%
Lipper Money Market Funds median		0.01	%		1.79	%		1.74	%

For PACE Money Market Investments, average annual total returns for periods ended June 30, 2011, after deduction of the maximum PACE program fee, were as follows: 1-year period, (1.97)%; 5-year period, (0.14)%; 10-year period, (0.16)%.

For PACE Money Market Investments, the 7-day current yield for the period ended July 31, 2011 was 0.01% (without maximum PACE program fee and after fee waivers and/or expense reimbursements; the yield was (0.96)% before fee waivers and/or expense reimbursements). With the maximum PACE program fee, the 7-day current yield was (1.99)% after fee waivers and/or expense reimbursements; the yield was (2.96)% before fee waivers and/or expense reimbursements. The Portfolio's yield quotation more closely reflects the current earnings of the Portfolio than the total return quotation. Yields will fluctuate and reflect fee waivers and/or expense reimbursements.

¹ The maximum annual PACE program fee is 2% of the value of PACE assets. Prior to June 14, 2010, the maximum annual PACE program fee was 1.5% of the value of PACE assets; however, the current maximum annual PACE program fee of 2% is reflected in the performance returns throughout all periods in the average annual total returns shown above.

Past performance does not predict future performance and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions. The return of an investment will fluctuate. Performance results assume reinvestment of all dividends and capital gain distributions at net asset value on the payable dates. Current performance may be higher or lower than the performance data quoted.

Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of a Lipper peer group.

An investment in PACE Money Market Investments is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Portfolio.

Not FDIC Insured. May lose value. No Bank guarantee.

4

PACE Money Market Investments

Understanding your Portfolio's expenses (unaudited)

As a shareholder of the Portfolio, you incur two types of costs: (1) ongoing program fees; and (2) ongoing Portfolio costs, including management fees and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, February 1, 2011 to July 31, 2011.

Actual expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

5

PACE Money Market Investments

Understanding your Portfolio's expenses (unaudited) (concluded)

Please note that the expenses shown in the table are meant to highlight your ongoing Portfolio costs only and do not reflect any program fees. Therefore, the second line in the table is useful in comparing ongoing Portfolio costs only, and will not help you determine the relative total costs of owning different funds. In addition, if program fees were included, your costs would have been higher.

	Beginning account value February 1, 2011		Ending account value July 31, 2011		Expenses paid during period102/01/11 to 07/31/11		Expense ratio during the period
Actual	$	1,000.00	$	1,000.00	$	1.09		0.22	%
Hypothetical (5% annual return before expenses)		1,000.00		1,023.70		1.10		0.22

¹ Expenses are equal to the Portfolio's annualized net expense ratio, multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half year period).

6

PACE Money Market Investments

Portfolio statistics (unaudited)

Characteristics	07/31/11
Net assets (mm)	$	365.8
Number of holdings		91
Weighted average maturity		47 days
Portfolio composition1	07/31/11
Commercial paper		41.2	%
Repurchase agreements		21.3
US government and agency obligations		19.7
Certificates of deposit		12.4
Short-term corporate obligations		1.5
Bank note		0.8
Other assets less liabilities		3.1
Total		100.0	%
Top 10 holdings1	07/31/11
Repurchase agreement with Deutsche Bank Securities, 0.180% due 08/01/11		15.8	%
Repurchase agreement with Barclays Bank PLC, 0.140% due 08/01/11		5.5
US Treasury Notes, 0.750% due 05/31/12		2.5
General Electric Co., 0.100% due 08/05/11		1.9
Market Street Funding LLC, 0.150% due 08/01/11		1.6
Atlantic Asset Securitization LLC, 0.160% due 08/05/11		1.6
Bank of Nova Scotia, 0.180% due 10/03/11		1.4
Amsterdam Funding Corp., 0.180% due 08/01/11		1.4
Barclays US Funding Corp., 0.130% due 08/01/11		1.4
Deutsche Bank Financial LLC, 0.100% due 08/01/11		1.4
Total		34.5	%

¹ Weightings represent percentages of the Portfolio's net assets as of July 31, 2011. The Portfolio is actively managed and its composition will vary over time.

7

PACE Money Market Investments

Statement of net assets—July 31, 2011

Security description	Face amount		Value
US government and agency obligations—19.71%
Federal Farm Credit Bank
0.230%, due 11/08/111	$	3,000,000	$	2,998,102
Federal Home Loan Bank
0.165%, due 08/01/112		3,000,000		3,000,000
0.280%, due 08/07/112		3,000,000		3,000,000
0.040%, due 08/09/111		5,000,000		4,999,956
0.300%, due 09/15/112		3,000,000		3,000,000
0.270%, due 09/30/112		4,500,000		4,500,000
0.280%, due 10/12/112		3,500,000		3,500,000
0.270%, due 02/17/121		3,000,000		2,995,500
Federal Home Loan Mortgage Corp.*
0.135%, due 08/06/112		3,000,000		2,997,855
0.230%, due 08/23/111		5,000,000		4,999,297
Federal National Mortgage Association*
0.290%, due 08/08/111		2,000,000		1,999,887
0.210%, due 09/01/111		4,000,000		3,999,277
US Treasury Bills
0.155%, due 09/22/111		5,000,000		4,998,881
0.040%, due 10/27/111		3,000,000		2,999,709
0.250%, due 03/08/121		2,000,000		1,996,944
US Treasury Notes
1.000%, due 12/31/11		2,000,000		2,006,341
0.875%, due 02/29/12		3,000,000		3,008,922
1.000%, due 04/30/12		3,000,000		3,014,055
0.750%, due 05/31/12		9,000,000		9,039,324
1.875%, due 06/15/12		3,000,000		3,043,317
Total US government and agency obligations (cost—$72,097,367)				72,097,367
Bank note—0.82%
Banking-US—0.82%
Bank of America N.A.
0.120%, due 08/24/11 (cost—$3,000,000)		3,000,000		3,000,000

8

PACE Money Market Investments

Statement of net assets—July 31, 2011

Security description	Face amount		Value
Certificates of deposit—12.37%
Banking-non-US—12.37%
Abbey National Treasury Services PLC
0.700%, due 10/17/112	$	3,500,000	$	3,500,000
0.450%, due 10/18/112		1,500,000		1,500,000
Bank of Nova Scotia
0.190%, due 08/01/112		1,500,000		1,500,000
0.190%, due 08/03/11		3,000,000		3,000,000
0.180%, due 10/03/11		5,000,000		5,000,000
BNP Paribas SA
0.399%, due 10/17/112		1,750,000		1,750,000
Dnb NOR ASA
0.240%, due 12/28/11		2,000,000		2,000,000
Lloyds TSB Bank PLC
0.500%, due 10/19/112		3,500,000		3,500,000
Mitsubishi UFJ Trust & Banking Corp.
0.220%, due 08/16/11		3,000,000		3,000,000
National Australia Bank Ltd.
0.269%, due 10/14/112		1,000,000		1,000,000
0.270%, due 10/19/112		750,000		749,966
Natixis
0.366%, due 10/13/112		1,000,000		1,000,000
Nordea Bank Finland
0.400%, due 06/12/12		2,500,000		2,500,000
Rabobank Nederland N.V.
0.267%, due 08/18/112		1,000,000		1,000,000
Royal Bank of Canada
0.260%, due 08/01/112		1,500,000		1,500,000
0.275%, due 08/01/112		1,500,000		1,500,000
0.260%, due 01/11/12		3,000,000		3,000,000
Royal Bank of Scotland PLC
0.553%, due 10/25/112		3,500,000		3,500,000
Toronto-Dominion Bank
0.105%, due 08/08/11		3,000,000		3,000,000

9

PACE Money Market Investments

Statement of net assets—July 31, 2011

Security description	Face amount		Value
Certificates of deposit—(concluded)
Banking-non-US—(concluded)
Westpac Banking Corp.
0.270%, due 08/01/112	$	1,750,000	$	1,750,000
Total certificates of deposit (cost—$45,249,966)				45,249,966
Commercial paper1—41.24%
Asset backed-banking—1.91%
Atlantis One Funding
0.200%, due 08/01/11		4,000,000		4,000,000
0.160%, due 09/13/11		3,000,000		2,999,427
				6,999,427
Asset backed-miscellaneous—15.05%
Amsterdam Funding Corp.
0.180%, due 08/01/11		5,000,000		5,000,000
Atlantic Asset Securitization LLC
0.160%, due 08/05/11		6,000,000		5,999,893
Barton Capital LLC
0.150%, due 08/02/11		3,000,000		2,999,988
Gotham Funding Corp.
0.160%, due 08/05/11		2,000,000		1,999,964
0.160%, due 08/08/11		3,000,000		2,999,907
LMA Americas LLC
0.200%, due 08/22/11		3,000,000		2,999,650
Market Street Funding LLC
0.150%, due 08/01/11		6,000,000		6,000,000
Regency Markets No. 1 LLC
0.150%, due 08/15/11		5,000,000		4,999,708
0.150%, due 08/16/11		3,000,000		2,999,813
Salisbury Receivables Co. LLC
0.140%, due 08/25/11		5,000,000		4,999,533
Thunderbay Funding
0.170%, due 09/13/11		5,000,000		4,998,985

10

PACE Money Market Investments

Statement of net assets—July 31, 2011

Security description	Face amount		Value
Commercial paper1—(continued)
Asset backed-miscellaneous—(concluded)
Windmill Funding Corp.
0.140%, due 08/04/11	$	3,000,000	$	2,999,965
0.140%, due 08/09/11		3,000,000		2,999,907
0.140%, due 08/10/11		3,050,000		3,049,893
				55,047,206
Asset backed-securities—1.09%
Argento Variable Funding Co. LLC
0.180%, due 08/23/11		3,000,000		2,999,670
Grampian Funding LLC
0.210%, due 09/15/11		1,000,000		999,737
				3,999,407
Banking-non-US—6.90%
Commonwealth Bank of Australia
0.265%, due 08/08/112,3		1,000,000		999,981
0.180%, due 10/11/11		3,000,000		2,998,935
Credit Suisse
0.190%, due 08/17/11		3,000,000		2,999,747
0.190%, due 10/12/11		1,000,000		999,620
Dnb NOR ASA
0.130%, due 08/05/11		5,000,000		4,999,928
Kreditanstalt für Wiederaufbau
0.140%, due 09/08/11		3,000,000		2,999,557
Sumitomo Mitsui Banking Corp.
0.180%, due 08/08/11		3,000,000		2,999,895
Svenska Handelsbanken, Inc.
0.250%, due 12/14/11		5,000,000		4,995,312
Westpac Securities NZ Ltd.
0.284%, due 09/01/112,3		1,250,000		1,250,000
				25,242,975
Banking-US—10.82%
Barclays US Funding Corp.
0.130%, due 08/01/11		5,000,000		5,000,000
0.210%, due 08/17/11		5,000,000		4,999,533

11

PACE Money Market Investments

Statement of net assets—July 31, 2011

Security description	Face amount		Value
Commercial paper1—(concluded)
Banking-US—(concluded)
Deutsche Bank Financial LLC
0.100%, due 08/01/11	$	5,000,000	$	5,000,000
0.200%, due 10/03/11		3,000,000		2,998,950
ING (US) Funding LLC
0.240%, due 08/05/11		3,000,000		2,999,920
0.160%, due 08/09/11		3,000,000		2,999,893
0.360%, due 11/03/11		3,000,000		2,997,180
JPMorgan Chase & Co.
0.150%, due 09/07/11		3,000,000		2,999,538
Natixis US Finance Co. LLC
0.250%, due 09/12/11		3,000,000		2,999,125
Nordea N.A., Inc.
0.230%, due 12/07/11		2,000,000		1,998,364
Societe Generale N.A., Inc.
0.210%, due 08/01/11		1,575,000		1,575,000
State Street Bank & Trust Co.
0.150%, due 10/13/11		3,000,000		2,999,088
				39,566,591
Diversified manufacturing—1.91%
General Electric Co.
0.100%, due 08/05/11		7,000,000		6,999,922
Finance-captive automotive—1.37%
Toyota Motor Credit Corp.
0.160%, due 08/10/11		5,000,000		4,999,800
Insurance-life—2.19%
Axa Financial, Inc.
0.160%, due 08/11/11		3,000,000		2,999,867
MetLife Short Term Funding LLC
0.140%, due 08/01/11		2,000,000		2,000,000
0.150%, due 09/14/11		3,000,000		2,999,450
				7,999,317
Total commercial paper (cost—$150,854,645)				150,854,645

12

PACE Money Market Investments

Statement of net assets—July 31, 2011

Security description	Face amount		Value
Short-term corporate obligations—1.50%
Banking-non-US—1.09%
Svenska Handelsbanken, Inc.
0.292%, due 09/08/112,3	$	2,500,000	$	2,500,000
Westpac Securities NZ Ltd.
0.355%, due 08/04/112,3		1,500,000		1,500,000
				4,000,000
Banking-US—0.41%
JPMorgan Chase Bank N.A.
0.275%, due 09/09/112		1,500,000		1,500,000
Total short-term corporate obligations (cost—$5,500,000)				5,500,000
Repurchase agreements—21.34%
Repurchase agreement dated 07/29/11 with Barclays Bank PLC, 0.140% due 08/01/11, collateralized by $8,824,000 Federal Farm Credit Bank obligations, 1.875% due 12/07/12 and $11,396,000 Federal National Mortgage Association obligations, zero coupon due 05/01/12; (value—$20,400,564); proceeds: $20,000,233		20,000,000		20,000,000
Repurchase agreement dated 07/29/11 with Deutsche Bank Securities, 0.180% due 08/01/11, collateralized by $59,100,000 Federal Home Loan Bank obligations, 0.320% due 12/09/11; (value—$59,162,318); proceeds: $58,000,870		58,000,000		58,000,000
Repurchase agreement dated 07/29/11 with State Street Bank & Trust Co., 0.010% due 08/01/11, collateralized by $370 Federal Home Loan Mortgage Corp. obligations, 5.125% due 07/15/12 and $81,406 US Treasury Bills, zero coupon due 08/04/11 to 07/26/12; (value—$81,632); proceeds: $80,000		80,000		80,000
Total repurchase agreements (cost—$78,080,000)				78,080,000
Total investments (cost—$354,781,978 which approximates cost for federal income tax purposes)—96.98%				354,781,978
Other assets in excess of liabilities—3.02%				11,061,651
Net assets (applicable to 365,845,932 shares of beneficial interest outstanding equivalent to $1.00 per share)—100.00%			$	365,843,629

13

PACE Money Market Investments

Statement of net assets—July 31, 2011

* On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

¹ Rates shown are the discount rates at date of purchase.

² Variable or floating rate security. The interest rate shown is the current rate as of July 31, 2011 and changes periodically. The maturity date reflects earlier of reset date or stated maturity date.

³ Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 1.71% of net assets as of July 31, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

Affiliated issuer activity

The table below details the Portfolio's transaction activity in an affiliated issuer during the year ended July 31, 2011. The investment manager earns a management fee from UBS Private Money Market Fund LLC.

Security description	Value at 07/31/10		Purchases during the year ended 07/31/11		Sales during the year ended 07/31/11		Value at 07/31/11		Net income earned from affiliate for the year ended 07/31/11
UBS Private Money Market Fund LLC	$	—	$	5,865,000	$	5,865,000	$	—	$	24

14

PACE Money Market Investments

Statement of net assets—July 31, 2011

The following is a summary of the fair valuations according to the inputs used as of July 31, 2011 in valuing the Portfolio's investments:

	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
US government and agency obligations	$	—	$	72,097,367	$	—	$	72,097,367
Bank note				3,000,000				3,000,000
Certificates of deposit				45,249,966				45,249,966
Commercial paper				150,854,645				150,854,645
Short-term corporate obligations				5,500,000				5,500,000
Repurchase agreements				78,080,000				78,080,000
Total	$	—	$	354,781,978	$	—	$	354,781,978

Issuer breakdown by country of origin (unaudited)

	Percentage of total investments
United States		76.8	%
Canada		5.2
United Kingdom		4.2
Japan		3.1
Australia		2.9
Sweden		2.1
Norway		2.0
Switzerland		1.1
Germany		0.8
France		0.8
Finland		0.7
Netherlands		0.3
Total		100.0	%

Weighted average maturity—47 days

See accompanying notes to financial statements
15

PACE Money Market Investments

Statement of operations

	For the year ended July 31, 2011
Investment income:
Interest	$	947,570
Securities lending income (includes $24 earned from an affiliated entity)		381
		947,951
Expenses:
Transfer agency and related services fees		1,533,469
Investment management and administration fees		1,267,950
Reports and notices to shareholders		114,198
Professional fees		111,301
Custody and accounting fees		48,853
State registration fees		39,789
Trustees' fees		19,157
Insurance expense		9,984
Other expenses		25,163
		3,169,864
Fee waivers and/or expense reimbursements by investment manager and administrator		(2,258,176	)
Net expenses		911,688
Net investment income		36,263
Net realized loss		(659	)
Net increase in net assets resulting from operations	$	35,604

See accompanying notes to financial statements
16

PACE Money Market Investments

Statement of changes in net assets

	For the years ended July 31,
	2011			2010
From operations:
Net investment income	$	36,263		$	43,561
Net realized losses		(659	)		(94	)
Net increase in net assets resulting from operations		35,604			43,467
Dividends and distributions to shareholders from:
Net investment income		(36,263	)		(43,561	)
Net realized gains		(1,389	)		(10,489	)
Total dividends and distributions to shareholders		(37,652	)		(54,050	)
From beneficial interest transactions:
Net decrease in net assets from beneficial interest transactions		(20,371,521	)		(143,730,728	)
Net decrease in net assets		(20,373,569	)		(143,741,311	)
Net assets:
Beginning of year		386,217,198			529,958,509
End of year	$	365,843,629		$	386,217,198
Accumulated undistributed net investment income	$	—		$	—

See accompanying notes to financial statements
17

PACE Money Market Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

	Years ended July 31,
	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.000	1		0.000	1		0.008			0.033			0.048
Dividends from net investment income		(0.000	)1		(0.000	)1		(0.008	)		(0.033	)		(0.048	)
Distributions from net realized gains		(0.000	)1		(0.000	)1		(0.000	)1		—			—
Total dividends and distributions		(0.000	)1		(0.000	)1		(0.008	)		(0.033	)		(0.048	)
Net asset value, end of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return2		0.01	%		0.01	%		0.81	%		3.40	%		4.86	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements by manager		0.88	%		0.90	%		0.89	%		0.93	%		0.92	%
Expenses after fee waivers and/or expense reimbursements by manager		0.25	%		0.27	%		0.59	%		0.60	%		0.60	%
Net investment income		0.01	%		0.01	%		0.78	%		3.27	%		4.75	%
Supplemental data:
Net assets, end of year (000's)	$	365,844		$	386,217		$	529,959		$	523,243		$	408,562

¹ Amount represents less than $0.0005 per share.

² Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each year reported. The figures do not include program fees; results would be lower if these fees were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions.

See accompanying notes to financial statements
18

PACE Money Market Investments

Notes to financial statements

Organization and significant accounting policies—PACE Money Market Investments (the "Portfolio") is a diversified portfolio of PACE Select Advisors Trust (the "Trust"), which was organized as a Delaware statutory trust under the laws of the State of Delaware by Certificate of Trust dated September 9, 1994, as amended June 9, 1995 and thereafter, and is registered with the US Securities and Exchange Commission ("SEC") under the Investment Company Act of 1940, as amended, as an open-end management investment company. The trustees of the Trust have authority to issue an unlimited number of shares of beneficial interest, par value $0.001 per share.

Effective November 22, 2010, the names of the Trust and the Portfolio have been changed as indicated below:

Former name	Current name
UBS PACE® Select Advisors Trust	PACE® Select Advisors Trust
UBS PACE® Money Market Investments	PACE® Money Market Investments

The Trust has fifteen Portfolios available for investment, each having its own investment objectives and policies. Shares of the Portfolio currently are available only to participants in the PACE^SM Select Advisors Program and the PACE^SM Multi Advisor Program.

The Trust accounts separately for the assets, liabilities and operations of each Portfolio. Expenses directly attributable to each Portfolio are charged to that Portfolio's operations; expenses which are applicable to all Portfolios are allocated among them on a pro rata basis.

In the normal course of business, the Portfolio may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Portfolio's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

19

PACE Money Market Investments

Notes to financial statements

The Portfolio attempts to maintain a stable net asset value of $1.00 per share; the Portfolio has adopted certain investment, portfolio valuation and dividend/distribution policies in an attempt to enable it to do so. As with any money market portfolio, there is no assurance, however, that the Portfolio will be able to maintain a stable net asset value of $1.00 per share.

The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") is the exclusive reference of authoritative US generally accepted accounting principles ("GAAP") recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The Portfolio's financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies:

Valuation of investments—Investments are valued at amortized cost. Periodic review and monitoring of the valuation of the securities held by the Portfolio is performed in an effort to ensure that amortized cost approximates market value.

GAAP requires disclosure surrounding the various inputs that are used in determining the value of the Portfolio's investments. These inputs are summarized into the three broad levels listed below:

Level 1—Unadjusted quoted prices in active markets for identical investments.

Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risks.

Level 3—Unobservable inputs inclusive of the Portfolio's own assumptions in determining the fair value of investments.

In accordance with the requirements of GAAP, a fair value hierarchy has been included near the end of the Portfolio's Statement of net assets.

20

PACE Money Market Investments

Notes to financial statements

In January 2010, FASB issued Accounting Standards Update No. 2010-06 "Improving Disclosures about Fair Value Measurements" ("ASU 2010-06"). ASU 2010-06 will require reporting entities to make new disclosures about amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, and information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. The new and revised disclosures have been implemented for annual and interim periods beginning after December 15, 2009 except for the disclosures surrounding purchases, sales, issuances and settlements on a gross basis in the reconciliation of Level 3 fair value measurements, which have been implemented for annual and interim periods beginning after December 15, 2010.

In May 2011, FASB Issued ASU No. 2011-04 "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and International Financial Reporting Standards ("IFRS")" ("ASU 2011-04"). ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between US GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosure about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU 2011-04 and its impact on the financial statements.

Repurchase agreements—The Portfolio may purchase securities or other obligations from a bank or securities dealer (or its affiliate),

21

PACE Money Market Investments

Notes to financial statements

subject to the seller's agreement to repurchase them at an agreed upon date (or upon demand) and price. The Portfolio maintains custody of the underlying obligations prior to their repurchase, either through its regular custodian or through a special "tri-party" custodian or sub-custodian that maintains a separate account for both the Portfolio and its counterparty. The underlying collateral is valued daily 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 Portfolio generally has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements involving obligations other than US government securities (such as commercial paper, corporate bonds, equities and mortgage loans) may be subject to special risks and may not have the benefit of certain protections in the event of counterparty insolvency. If the seller (or seller's guarantor, if any) becomes insolvent, the Portfolio may suffer delays, costs and possible losses in connection with the disposition or retention of the collateral. 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. The Portfolio may participate in joint repurchase agreement transactions with other funds managed, advised or sub-advised by UBS Global Asset Management (Americas) Inc. ("UBS Global AM").

Under certain circumstances, the Portfolio may engage in a repurchase agreement transaction with a yield of zero in order to invest cash amounts remaining in its portfolio at the end of the day in order to avoid having the Portfolio assessed a fee for uninvested cash held in a business account at a bank.

Investment transactions and investment income—Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions are calculated using the identified cost method. 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.

22

PACE Money Market Investments

Notes to financial statements

Dividends and distributions—Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions is determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification.

Concentration of risk—The ability of the issuers of debt securities held by the Portfolio to meet their obligations may be affected by economic and political developments, including those particular to a specific industry, country, state or region.

Investment management and administration fees and other transactions with affiliates—The Portfolio's Board of Trustees has approved an investment management and administration contract ("Management Contract") with UBS Global AM. In accordance with the Management Contract, the Portfolio pays UBS Global AM an investment management and administration fee, which is accrued daily and paid monthly, at an annual rate of 0.35% of the Portfolio's average daily net assets. At July 31, 2011, the Portfolio is owed $112,635 from UBS Global AM, representing investment management and administration fees net of fee waivers/expense reimbursements.

UBS Global AM has contractually undertaken to waive a portion of the Portfolio's investment management and administration fees and/or reimburse a portion of the Portfolio's other expenses, when necessary, to maintain the total ordinary annual operating expenses (excluding dividend expense, borrowing costs and interest expense, if any) through November 28, 2011 at a level not to exceed 0.60%. The Portfolio will make a payment to UBS Global AM for any previously waived fees/reimbursed expenses during the following three fiscal years to the extent that operating expenses are otherwise below the expense cap.

23

PACE Money Market Investments

Notes to financial statements

At July 31, 2011, the Portfolio had fee waivers/expense reimbursements subject to repayment and respective dates of expiration as follows:

Fee waivers/expense reimbursements subject to repayment		Expires July 31, 2012		Expires July 31, 2013		Expires July 31, 2014
$	3,988,289	$	1,729,334	$	1,262,723	$	996,232

Additionally, UBS Global AM may voluntarily waive fees and/or reimburse expenses from time to time in the event that the Portfolio's yield falls below a certain level. Once started, there is no guarantee that UBS Global AM would continue to voluntarily waive an additional portion of its fees and/or reimburse expenses. For the year ended July 31, 2011, UBS Global AM voluntarily waived and/or reimbursed expenses of $1,261,944 for that purpose.

For the year ended July 31, 2011, UBS Global AM waived fees/reimbursed expenses, in total, of $2,258,176.

Additional information regarding compensation to affiliate of a board member

Professor Meyer Feldberg serves as a senior advisor to Morgan Stanley, a financial services firm with which the Portfolio may conduct transactions, resulting in him being an interested trustee of the Portfolio. The Portfolio has been informed that Professor Feldberg's role at Morgan Stanley does not involve matters directly affecting any UBS funds. Portfolio transactions are executed through Morgan Stanley based on that firm's ability to provide best execution of the transactions. During the year ended July 31, 2011, the Portfolio purchased and sold certain securities (e.g., fixed income securities) in principal trades with Morgan Stanley, having an aggregate value of $198,963,243. Morgan Stanley received compensation in connection with these trades, which may have been in the form of a "mark-up" or "mark-down" of the price of the securities, a fee from the issuer for maintaining a commercial paper program, or some other form of compensation. Although the precise amount of this compensation is not generally

24

PACE Money Market Investments

Notes to financial statements

known by the Portfolio's investment manager, it is believed that under normal circumstances it represents a small portion of the total value of the transactions.

Transfer agency related services

UBS Financial Services Inc. provides certain services to the Portfolio pursuant to a delegation of authority from BNY Mellon Investment Servicing (US) Inc. ("BNY Mellon"), the Portfolio's transfer agent, and is compensated for these services by BNY Mellon, not the Portfolio .

For the year ended July 31, 2011, UBS Financial Services, Inc. received from BNY Mellon, not the Portfolio, $768,376 of the total transfer agency and related services fees paid by the Portfolio to BNY Mellon.

Securities lending

The Portfolio may lend securities up to 33¹/₃% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, US government securities or irrevocable letters of credit 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 Portfolio will regain ownership of loaned securities to exercise certain beneficial rights; however, the Portfolio may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower fail financially. The Portfolio receives compensation for lending its securities from interest or dividends earned on the cash, US government securities or irrevocable letters of credit held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. State Street Bank and Trust Company serves as the Portfolio's lending agent. At July 31, 2011, the Portfolio did not have any securities on loan.

25

PACE Money Market Investments

Notes to financial statements

Other liabilities and components of net assets

At July 31, 2011, the Portfolio had the following liabilities outstanding:

Payable for shares of beneficial interest repurchased	$	1,154,661
Dividends payable to shareholders		1,260
Other accrued expenses*		436,543

* Excludes investment management and administration fees.

At July 31, 2011, the components of net assets were as follows:

Accumulated paid in capital	$	365,845,642
Accumulated net realized loss		(2,013	)
Net assets	$	365,843,629

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, at $1.00 per share, were as follows:

	For the years ended July 31,
	2011			2010
Shares sold		359,119,509			409,092,964
Shares repurchased		(379,510,934	)		(552,857,220	)
Dividends reinvested		19,904			33,528
Net decrease in shares outstanding		(20,371,521	)		(143,730,728	)

Federal tax status

The Portfolio intends to distribute substantially all of its 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, net realized capital gains and certain other amounts, if any, the Portfolio intends not to be subject to a federal excise tax.

26

PACE Money Market Investments

Notes to financial statements

The tax character of distributions paid to shareholders by the Portfolio during the fiscal years ended July 31, 2011 and July 31, 2010 was ordinary income.

At July 31, 2011 the components of accumulated deficit on a tax basis was accumulated capital and other losses of $(753).

As of and during the year ended July 31, 2011, the Portfolio did not have any liabilities for any uncertain tax positions. The Portfolio recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of operations. During the year ended July 31, 2011, the Portfolio did not incur any interest or penalties.

Each of the tax years in the four year period ended July 31, 2011, remains subject to examination by the Internal Revenue Service and state taxing authorities.

27

PACE Money Market Investments

Report of Ernst & Young LLP, independent registered public accounting firm

The Board of Trustees and Shareholders of
PACE Select Advisors Trust

We have audited the accompanying statement of net assets of PACE Money Market Investments (one of the series comprising PACE Select Advisors Trust) (the "Portfolio") as of July 31, 2011, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolio's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2011, by correspondence with the custodian and others, or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of

28

PACE Money Market Investments

Report of Ernst & Young LLP, independent registered public accounting firm (concluded)

PACE Money Market Investments at July 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with US generally accepted accounting principles.

New York, New York
September 29, 2011

29

PACE Money Market Investments

General information (Unaudited)

Monthly and quarterly portfolio holdings disclosure

The Portfolio will file its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Portfolio's Forms N-Q are available on the SEC's Web site at http://www.sec.gov. The Portfolio's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC 0330. Additionally, you may obtain copies of Forms N-Q from the Portfolio upon request by calling 1-800-647 1568.

In addition, the Portfolio discloses, on a monthly basis: (a) a complete schedule of its portfolio holdings; and (b) information regarding its weighted average maturity and weighted average life on UBS's Web site at the following internet address: www.ubs.com/ usmoneymarketfundsholdings. In addition, at this location, you will find a link to more detailed Portfolio information appearing in filings with the SEC on Form N-MFP.

Proxy voting policies, procedures and record

You may obtain a description of the Portfolio's (1) proxy voting policies, (2) proxy voting procedures and (3) information regarding how the Portfolio voted any proxies related to portfolio securities during the most recent 12-month period ended June 30 for which an SEC filing has been made, without charge, upon request by contacting the Portfolio directly at 1-800-647 1568, online on the Portfolio's Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's Web site (http://www.sec.gov).

Other tax information

Pursuant to Section 871(k)(2)(C) of the Internal Revenue Code, PACE Money Market Investments designates 100% of its "qualified short-term gains" (as defined in Section 871(k)(2)(D)) related to the distribution made in December 2010 as short-term capital gain dividends.

30

PACE Money Market Investments

Board approval of investment management and administration agreement (unaudited)

Background—At a meeting of the board of PACE Select Advisors Trust (the "Trust") on July 19-20, 2011, the members of the board, including the trustees who are not "interested persons" of the Trust ("Independent Trustees"), as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), considered and approved the continuance of the investment management and administration agreement (the "Investment Management and Administration Agreement") between UBS Global Asset Management (Americas) Inc. ("UBS Global AM") and the Trust, on behalf of PACE Money Market Investments (the "Portfolio"). In preparing for the meeting, the board members had requested and received extensive information from UBS Global AM to assist them, including performance and expense information for other investment companies with similar investment objectives as the Portfolio. The Independent Trustees discussed the materials initially provided by management prior to the scheduled board meeting. The Independent Trustees also met in executive session to review the disclosure that had been made to them at the meeting. At all of these sessions the Independent Trustees were joined by their independent legal counsel. The Independent Trustees also received a memorandum from their independent legal counsel discussing the duties of board members in considering approval of management, administration and distribution agreements.

In its consideration of the approval of the Investment Management and Administration Agreement, the board considered the following factors:

Nature, extent and quality of the services under the Investment Management and Administration Agreement—The board received and considered information regarding the nature, extent and quality of management services provided to the Portfolio by UBS Global AM. The board also considered the nature, extent and quality of administrative, distribution, and shareholder services performed by UBS Global AM and its affiliates for the Portfolio and the resources devoted to, and the record of compliance with, the Portfolio's compliance policies and procedures. The board noted that it received information at regular meetings throughout the year regarding the

31

PACE Money Market Investments

Board approval of investment management and administration agreement (unaudited)

services rendered by UBS Global AM concerning the management of the Portfolio's affairs and UBS Global AM's role in coordinating providers of other services to the Portfolio. The board's evaluation of the services provided by UBS Global AM took into account the board's knowledge and familiarity gained as board members of funds in the UBS New York fund complex, including the scope and quality of UBS Global AM's investment management and other capabilities and the quality of its administrative and other services. The board observed that the scope of services provided by UBS Global AM had expanded over time as a result of regulatory and other developments, including maintaining and monitoring its own and the Portfolio's expanded compliance programs. It also was noted that the Investment Management and Administration Agreement under consideration had been approved by shareholders at a special meeting of shareholders held in 2008.

The board had available to it the qualifications, backgrounds and responsibilities of the senior personnel at UBS Global AM responsible for the Portfolio and had previously received information regarding the person primarily responsible for the day-to-day portfolio management of the Portfolio and recognized that the Portfolio's senior personnel at UBS Global AM report to the board regularly and that at each regular meeting the board receives a detailed report on the Portfolio's performance. The board also considered, based on its knowledge of UBS Global AM and its affiliates, the financial resources available to UBS Global AM and its parent organization, UBS AG. In that regard, the board received extensive financial information regarding UBS Global AM and noted that it was a wholly owned, indirect subsidiary of one of the largest financial services firms in the world. It was also noted that UBS Global AM had approximately $152 billion in assets under management as of March 31, 2011 and was part of the UBS Global Asset Management Division, which had approximately $621 billion in assets under management worldwide as of March 31, 2011. The board was also cognizant of, and considered, the regulatory and litigation actions and investigations occurring in the past few years involving UBS AG, UBS Global AM and certain of their affiliates.

32

PACE Money Market Investments

Board approval of investment management and administration agreement (unaudited)

The board concluded that, overall, it was satisfied with the nature, extent and quality of services provided (and expected to be provided) to the Portfolio under the Investment Management and Administration Agreement.

Management fees and expense ratios—The board reviewed and considered the contractual management fee (the "Contractual Management Fee") payable by the Portfolio to UBS Global AM in light of the nature, extent and quality of the management and administrative services provided by UBS Global AM. The board also reviewed and considered the fee waiver and/or expense reimbursement arrangements for the Portfolio and considered the actual fee rate (after taking any waivers and reimbursements into account) (the "Actual Management Fee"). The board considered that UBS Global AM had entered into an agreement with the Portfolio under which UBS Global AM was contractually obligated to waive its management fees and/or reimburse the Portfolio so that the total ordinary operating expenses of the Portfolio through November 28, 2011 (excluding dividend expense, borrowing costs, interest, taxes and extraordinary expenses) would not exceed a specified limit. The board also considered that the Portfolio had agreed to repay UBS Global AM for those waived fees and/or reimbursed expenses if the Portfolio can do so over the following three fiscal years without causing its expenses in any of those years to exceed the expense cap. Additionally, the board received and considered information comparing the Portfolio's Contractual Management Fee, Actual Management Fee and overall expenses with those of funds in a group of funds selected and provided by Lipper, Inc. ("Lipper"), an independent provider of investment company data (the "Expense Group"). The board also noted that it had received supplemental information relating to net and gross fund yields and certain expense information for UBS money market funds, including the Portfolio, as compared to peers in the respective Expense Group.

In connection with its consideration of the Portfolio's management fees, the board also received information from UBS Global AM with

33

PACE Money Market Investments

Board approval of investment management and administration agreement (unaudited)

respect to fees paid by institutional or separate accounts; however, in management's view, such fee information was not very relevant to the Portfolio because, among other reasons, separately managed and institutional accounts with a "cash" mandate (a) were not subject to all of the constraints of Rule 2a-7 under the 1940 Act to which the Portfolio is subject and (b) do not involve the management responsibilities attendant to the operation of a 1940 Act regulated fund, and, therefore, were not totally comparable. The board also received information on fees charged to other mutual funds managed by UBS Global AM.

The comparative Lipper information showed that the Portfolio's Contractual Management Fee was in the second quintile, its Actual Management Fee was in the first quintile and its total expenses were in the third quintile in the Portfolio's Expense Group for the comparison periods utilized in the Lipper report. (The first quintile represents that 20% of the funds in the Expense Group with the lowest fees or expenses, as applicable, and the fifth quintile represents that 20% of the funds in the Expense Group with the highest fees or expenses, as applicable.)

In light of the foregoing, the board determined that the proposed contractual management fee payable by the Portfolio to UBS Global AM was reasonable in light of the nature, extent and quality of services expected to be provided to the Portfolio under the Investment Management and Administration Agreement.

Portfolio performance—The board received and considered (a) annualized total return information of the Portfolio compared to other funds (the "Performance Universe") selected by Lipper over the one-, three-, five-, ten-year and since inception periods ended April 30, 2011 and (b) annualized performance information for each year in the ten-year period ended April 30, 2011. The board was provided with a description of the methodology Lipper used to determine the similarity of the Portfolio with the funds included in its Performance Universe. The board also noted that it had received information throughout the year at periodic intervals with respect to the Portfolio's

34

PACE Money Market Investments

Board approval of investment management and administration agreement (unaudited)

performance. The comparative Lipper information showed that the Portfolio's performance was in the second quintile for the one- and ten-year periods and since inception and in the third quintile for the three- and five-year periods. (The first quintile represents that 20% of the funds in the Performance Universe with the best relative performance, and the fifth quintile represents that 20% of the funds in the Performance Universe with the worst relative performance.)

Advisor profitability—The board received and considered a profitability analysis of UBS Global AM and its affiliates in providing services to the Portfolio. The board also received profitability information with respect to the UBS New York fund complex as a whole. UBS Global AM's profitability was considered not excessive in light of the nature, extent and quality of the services provided to the Portfolio.

Economies of scale—The board received and considered information from management regarding whether UBS Global AM realized economies of scale as the Portfolio's assets grew, whether the Portfolio has appropriately benefited from any economies of scale, and whether there is potential for realization of any further economies of scale for the Portfolio. The board considered whether economies of scale in the provision of services to the Portfolio were being passed along to the shareholders. The board noted that the Portfolio's Contractual Management Fee did not contain breakpoints. The board also noted that to the extent the Portfolio's assets increase over time, it will realize economies of scale as certain expenses, such as fees for trustees, auditor and legal fees and printing and postage, become a smaller percentage of overall assets.

Generally, in light of UBS Global AM's profitability data, the Actual Management Fee and the Contractual Management Fee, the board believed that UBS Global AM's sharing of potential and current economies of scale with the Portfolio was acceptable.

Other benefits to UBS Global AM—The board considered other benefits received by UBS Global AM and its affiliates as a result of its relationship with the Portfolio, including the opportunity to offer

35

PACE Money Market Investments

Board approval of investment management and administration agreement (unaudited)

additional products and services to Portfolio shareholders. In light of the costs of providing investment management, administrative and other services to the Portfolio and UBS Global AM's ongoing commitment to the Portfolio, the profits and other ancillary benefits that UBS Global AM and its affiliates received were considered reasonable.

In light of all of the foregoing, the board approved the Investment Management and Administration Agreement for the Portfolio. No single factor reviewed by the board was identified by the board as the principal factor in determining whether to approve the Investment Management and Administration Agreement. The Independent Trustees were advised by separate independent legal counsel throughout the process. The board discussed the proposed continuance of the Investment Management and Administration Agreement in private sessions with their independent legal counsel at which no representatives of UBS Global AM were present.

36

This page intentionally left blank.

37

PACE Money Market Investments

Supplemental information (unaudited)

Board of Trustees & Officers

The Trust is governed by a Board of Trustees which oversees the Portfolios' operations. Each Trustee serves an indefinite term of office. Officers are appointed by the trustees and serve at the pleasure of the Board. The table below shows, for each trustee and officer, his or her name, address and age, the position held with the Trust, the length of time served as a trustee or officer of the Trust, the trustee's or officer's principal occupations during the last five years, the number of portfolios in the UBS fund complex overseen by the trustee or for which a person served as an officer, and other directorships held by the trustee.

The Trust's Statement of Additional Information contains additional information about the trustees and is available, without charge, upon request by calling 1-800-647 1568.

Interested Trustees

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years	Number of portfolios in fund complex overseen by trustee	Other directorships held by trustee
Meyer Feldberg2; 69 Morgan Stanley 1585 Broadway 36th Floor New York, NY 10036	Trustee	Since 2001	Professor Feldberg is Dean Emeritus and Professor of Leadership and Ethics at Columbia Business School, although on an extended leave of absence. He is also a senior advisor to Morgan Stanley (financial services) (since March 2005). Professor Feldberg also serves as president of New York City Global Partners (an organization located in part of the Office of the Mayor of the City of New York that promotes interaction with other cities around the world) (since May 2007). Prior to July 2004, he was Dean and Professor of Management of the Graduate School of Business at Columbia University (since 1989).	Professor Feldberg is a director or trustee of 27 investment companies (consisting of 59 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager.	Professor Feldberg is also a director of Primedia Inc. (publishing), Macy's, Inc. (operator of department stores), Revlon, Inc. (cosmetics), SAPPI, Ltd. (producer of paper) and the New York City Ballet.

38

PACE Money Market Investments

Supplemental information (unaudited)

39

PACE Money Market Investments

Supplemental information (unaudited)

Interested Trustees (concluded)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years	Number of portfolios in fund complex overseen by trustee	Other directorships held by trustee
Barry M. Mandinach*3; 55	Trustee	Since July 2010	Mr. Mandinach is a managing director of UBS Global Asset Management (US) Inc. and UBS Global AM (collectively, "UBS Global AM—Americas region"). He has been with UBS Global AM—Americas region or its predecessors since 2001. He is the Head of Institutional & Wholesale Business (US) (since 2009) as well as Chief Marketing Officer (US) (since 2006).	Mr. Mandinach is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	None

Independent Trustees

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years	Number of portfolios in fund complex overseen by trustee	Other directorships held by trustee
Richard Q. Armstrong; 76 c/o Keith Weller Assistant Fund Secretary UBS Global Asset Management (Americas) Inc. 1285 Avenue of the Americas New York, NY, 10019	Trustee and Chairman of the Board of Trustees	Since 2001 (Trustee) Since 2004 (Chairman of the Board of Trustees)	Mr. Armstrong is chairman and principal of R.Q.A. Enterprises (management consulting firm) (since April 1991 and principal occupation since March 1995). Mr. Armstrong was president or chairman of a number of packaged goods companies (responsible for such brands as Canada Dry, Dr. Pepper, Adirondack Beverages and Moët Hennessy) (from 1982 until 1995).	Mr. Armstrong is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	None

40

PACE Money Market Investments

Supplemental information (unaudited)

41

PACE Money Market Investments

Supplemental information (unaudited)

Independent Trustees (continued)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years	Number of portfolios in fund complex overseen by trustee	Other directorships held by trustee
Alan S. Bernikow; 70 207 Benedict Ave. Staten Island, NY 10314	Trustee	Since 2005	Mr. Bernikow is retired. He was a consultant on non-management matters for the firm of Deloitte & Touche (international accounting and consulting firm) (from June 2003 until 2007). Previously, he was deputy chief executive officer at Deloitte & Touche.	Mr. Bernikow is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	Mr. Bernikow is also a director of Revlon, Inc. (cosmetics) (and serves as the chair of its audit committee and as the chair of its compensation committee), a director of Mack-Cali Realty Corporation (real estate investment trust) (and serves as the chair of its audit committee); and a director of the Casual Male Retail Group, Inc. (menswear) (and serves as a member of its audit committee and as a member of its nominating and corporate governance committee). He is also a director of Premier American Bank, N.A.
Richard R. Burt; 64 McLarty Associates 900 17th Street, 8th Floor Washington, D.C. 20006	Trustee	Since 2001	Mr. Burt is a managing director to McLarty Associates (a consulting firm) with which he has been employed since April 2007. He was chairman of IEP Advisors (international investments and consulting firm) until February 2009. Prior to April 2007, he was chairman of Diligence Inc. (information and risk management firm).	Mr. Burt is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	Mr. Burt is also a director of Central Europe & Russia Fund, Inc., European Equity Fund, Inc. and The New Germany Fund, Inc.

42

PACE Money Market Investments

Supplemental information (unaudited)

43

PACE Money Market Investments

Supplemental information (unaudited)

Independent Trustees (concluded)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years	Number of portfolios in fund complex overseen by trustee	Other directorships held by trustee
Bernard H. Garil; 71 6754 Casa Grande Way Delray Beach, FL 33446	Trustee	Since 2005	Mr. Garil is retired (since 2001). He was a managing director at PIMCO Advisory Services (from 1999 to 2001) where he served as president of closed-end funds and vice-president of the variable insurance product funds advised by OpCap Advisors (until 2001).	Mr. Garil is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	Mr. Garil is also a director of OFI Trust Company (commercial trust company), the Leukemia and Lymphoma Society (voluntary health organization), and a trustee for the Brooklyn College Foundation, Inc. (charitable foundation).
Heather R. Higgins; 52 255 E. 49th St., Suite 23D New York, NY 10017	Trustee	Since 2005	Ms. Higgins is the president and director of The Randolph Foundation (charitable foundation) (since 1991). Ms. Higgins also serves (or had served) on the boards of several non-profit charitable groups, including the Independent Women's Forum (chairman until term-limited), and the Philanthropy Roundtable (vice chairman). She also serves on the board of the Hoover Institution (from 2001 to 2007 and since January 2009).	Ms. Higgins is a director or trustee of 13 investment companies (consisting of 45 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.	None

44

PACE Money Market Investments

Supplemental information (unaudited)

45

PACE Money Market Investments

Supplemental information (unaudited)

Officers

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Joseph Allessie*; 46	Vice President and Assistant Secretary	Since 2005	Mr. Allessie is an executive director (since 2007) (prior to which he was a director) and deputy general counsel (since 2005) UBS Global AM—Americas region. Mr. Allessie is a vice president and assistant secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Rose Ann Bubloski*, 43	Vice President and Assistant Treasurer	Since May 2011	Ms. Bubloski is an associate director (2003-2007 and 2008 to present) and senior manager of the US mutual fund treasury administration department of UBS Global AM—Americas region. From 2004 through 2007 she was a vice president and assistant treasurer of certain UBS funds. From 2007 to 2008 she was vice president at Cohen & Steers Capital Management, Inc. (investment manager). She is vice president and assistant treasurer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM serves as investment advisor or manager.

46

PACE Money Market Investments

Supplemental information (unaudited)

Officers (continued)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Mark E. Carver*; 47	President	Since May 2010	Mr. Carver is a managing director and Head of Product Development and Management—Americas for UBS Global AM—Americas region (since 2008). In this role, he oversees product development and management for both wholesale and institutional businesses. He is a member of the Americas Management Committee (since 2008) and the Regional Operating Committee (since 2008). Prior to 2008, Mr. Carver held a number of product-related or sales responsibilities with respect to funds, advisory programs and separately managed accounts. Mr. Carver joined a predecessor of an affiliated firm in 1985 and has been with UBS Global AM—Americas region (or its affiliates) since 1996. Mr. Carver is president of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor or manager.

47

PACE Money Market Investments

Supplemental information (unaudited)

Officers (continued)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Thomas Disbrow*; 45	Vice President and Treasurer	Since 2000 (Vice President) Since 2004 (Treasurer)	Mr. Disbrow is a managing director (since March 2011) prior to which he was an executive director (since 2007) and head of UBS Global AM—Americas region. Mr. Disbrow is a vice president and treasurer and/or principal accounting officer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Michael J. Flook*; 46	Vice President and Assistant Treasurer	Since 2006	Mr. Flook is a director (since 2010) (prior to which he was an associate director) (since 2006) and a senior manager of the US mutual fund treasury administration department of UBS Global AM—Americas region. Mr. Flook is a vice president and assistant treasurer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.

48

PACE Money Market Investments

Supplemental information (unaudited)

Officers (continued)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Mark F. Kemper**; 53	Vice President and Secretary	Since 2004	Mr. Kemper is a managing director (since 2006) and head of the legal department of UBS Global AM—Americas region (since 2004). He has been secretary of UBS Global AM—Americas region since 2004 and of UBS Global Asset Management Trust Company since 1993 and secretary of UBS AM Holdings (USA) Inc. (since 2001). Mr. Kemper is vice president and secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Joanne M. Kilkeary*; 43	Vice President and Assistant Treasurer	Since 1999	Ms. Kilkeary is a director (since 2008) (prior to which she was an associate director) (since 2000) and a senior manager (since 2004) of the US mutual fund treasury administration department of UBS Global AM—Americas region. Ms. Kilkeary is a vice president and assistant treasurer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.

49

PACE Money Market Investments

Supplemental information (unaudited)

Officers (continued)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Tammie Lee*; 40	Vice President and Assistant Secretary	Since 2005	Ms. Lee is an executive director (since 2010) (prior to which she was a director) and associate general counsel of UBS Global AM—Americas region (since 2005). Ms. Lee is a vice president and assistant secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Joseph McGill*; 49	Vice President and Chief Compliance Officer	Since 2004	Mr. McGill is a managing director (since 2006) and chief compliance officer (since 2003) at UBS Global AM—Americas region. Mr. McGill is a vice president and chief compliance officer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.

50

PACE Money Market Investments

Supplemental information (unaudited)

Officers (continued)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Nancy D. Osborn*; 45	Vice President and Assistant Treasurer	Since 2007	Mrs. Osborn is a director (since 2010)(prior to which she was an associate director) and a senior manager of the US mutual fund treasury administration department of UBS Global AM—Americas region (since 2006). Mrs. Osborn is a vice president and assistant treasurer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Robert Sabatino**; 38	Vice President	Since 2001	Mr. Sabatino is a managing director (since 2010)(prior to which he was an executive director)(since 2007), head of US taxable money markets (since 2009), and portfolio manager of UBS Global AM—Americas region in the short duration fixed income group (since 2001). Mr. Sabatino is a vice president of six investment companies (consisting of 37 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.

51

PACE Money Market Investments

Supplemental information (unaudited)

Officers (continued)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Eric Sanders*; 45	Vice President and Assistant Secretary	Since 2005	Mr. Sanders is a director and associate general counsel of UBS Global AM—Americas region (since 2005). Mr. Sanders is a vice president and assistant secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.
Andrew Shoup*; 55	Vice President and Chief Operating Officer	Since 2006	Mr. Shoup is a managing director and global head of the treasury administration department of UBS Global AM—Americas region (since July 2006). Mr. Shoup is also a director of UBS (IRL) Fund p.l.c. (since 2008). Prior to joining UBS Global AM—Americas region, he was chief administrative officer for the Legg Mason Partner Funds (formerly Smith Barney, Salomon Brothers, and CitiFunds mutual funds) from November 2003 to July 2006. Mr. Shoup is a vice president and chief operating officer of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.

52

PACE Money Market Investments

Supplemental information (unaudited)

Officers (concluded)

Name, address, and age	Position(s) held with Trust	Term of office1 and length of time served	Principal occupation(s) during past 5 years; number of portfolios in fund complex for which person serves as officer
Keith A. Weller*; 50	Vice President and Assistant Secretary	Since 2000	Mr. Weller is an executive director and senior associate general counsel of UBS Global AM—Americas region (since 2005) and has been an attorney with affiliated entities since 1995. Mr. Weller is a vice president and assistant secretary of 17 investment companies (consisting of 100 portfolios) for which UBS Global AM—Americas region or one of its affiliates serves as investment advisor or manager.

¹  Each trustee holds office for an indefinite term. Officers are appointed by the trustees and serve at the pleasure of the Board.

²  Professor Feldberg is deemed an "interested person" of the Trust as defined in the Investment Company Act of 1940, as amended, because he is a senior advisor to Morgan Stanley, a financial services firm with which the Trust may conduct transactions.

³  Mr. Mandinach is deemed an "interested person" of the Trust as defined in the Investment Company Act of 1940, as amended, because of his employment by UBS Global AM—Americas region.

*  This person's business address is 1285 Avenue of the Americas, New York, New York 10019-6028.

**  This person's business address is One North Wacker Drive, Chicago, Illinois 60606.

53

This page intentionally left blank.

54

This page intentionally left blank.

55

This page intentionally left blank.

56

Trustees

Richard Q. Armstrong
Chairman
Alan S. Bernikow
Richard R. Burt Meyer Feldberg
Bernard H. Garil
Heather R. Higgins
Barry M. Mandinach

Principal Officers

Mark E. Carver President	Thomas Disbrow Vice President and Treasurer
Mark F. Kemper Vice President and Secretary	Robert Sabatino Vice President

Investment Manager and
Administrator

UBS Global Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028

Principal Underwriter

UBS Global Asset Management (US) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028

This report is not to be used in connection with the offering of shares of the Portfolio unless accompanied or preceded by an effective prospectus.

© 2011 UBS Global Asset Management (Americas) Inc. All rights reserved.

PRESORTED
STANDARD
U.S. POSTAGE
PAID
COMPUTERSHARE

UBS Global Asset Management (Americas) Inc.

1285 Avenue of the Americas

New York, New York 10019-6028

S097

Item 2.  Code of Ethics.

The registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions pursuant to Section 406 of the Sarbanes-Oxley Act of 2002.  (The registrant has designated the code of ethics adopted pursuant to Sarbanes-Oxley as a “Code of Conduct” to lessen the risk of confusion with its separate code of ethics adopted pursuant to Rule 17j-1 under the Investment Company Act of 1940, as amended.)

Item 3.  Audit Committee Financial Expert.

The registrant’s Board has determined that the following person serving on the registrant’s Audit Committee is an “audit committee financial expert” as defined in item 3 of Form N-CSR:  Alan S. Bernikow.  Mr. Bernikow is independent as defined in item 3 of Form N-CSR.

Item 4.  Principal Accountant Fees and Services.

(a)Audit Fees:

For the fiscal years ended July 31, 2011 and July 31, 2010, the aggregate Ernst & Young LLP (E&Y) audit fees for professional services rendered to the registrant were approximately $894,350 and $854,350, respectively.

Fees included in the audit fees category are those associated with the annual audits of financial statements and services that are normally provided in connection with statutory and regulatory filings.

(b)Audit-Related Fees:

In each of the fiscal years ended July 31, 2011 and July 31, 2010, the aggregate audit-related fees billed by E&Y for services rendered to the registrant that are reasonably related to the performance of the audits of the financial statements, but not reported as audit fees, were approximately $42,000 and $40,900, respectively.

Fees included in the audit-related fees category are those associated with (1) the reading and providing of comments on the 2011 and 2010 semiannual financial statements and (2) review of the consolidated 2010, 2009 and 2008 reports on the profitability of the UBS Funds to UBS Global Asset Management (Americas) Inc. and its affiliates to assist the board members in their annual advisory/administration contract and service/distribution plan reviews.

There were no audit-related fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years indicated above.

(c)Tax Fees:

In each of the fiscal years ended July 31, 2011 and July 31, 2010, the aggregate tax fees billed by E&Y for professional services rendered to the registrant were approximately $280,050 and $293,440, respectively.

Fees included in the tax fees category comprise all services performed by professional staff in the independent accountant’s tax division except those services related to the audits.  This category comprises fees for review of tax compliance, tax return preparation and excise tax calculations.

There were no tax fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years indicated above.

(d)All Other Fees:

In each of the fiscal years ended July 31, 2011 and July 31, 2010, there were no fees billed by E&Y for products and services, other than the services reported in Item 4(a)-(c) above, rendered to the registrant.

Fees included in the all other fees category would consist of services related to internal control reviews, strategy and other consulting, financial information systems design and implementation, consulting on other information systems, and other tax services unrelated to the registrant.

There were no “all other fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X during the fiscal years indicated above.

(e)(1)  Audit Committee Pre-Approval Policies and Procedures:

The registrant’s Audit Committee (“audit committee”) has adopted an “Audit Committee Charter (Amended and Restated as of May 12, 2004 — with revisions through July 2008)” (the “charter”).  The charter contains the audit committee’s pre-approval policies and procedures.  Reproduced below is an excerpt from the charter regarding pre-approval policies and procedures:

The [audit] Committee shall:

…

2.Pre-approve (a) all audit and permissible non-audit services(1) to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund’s independent auditors to UBS Global [Asset Management (Americas) Inc. (“UBS Global AM”)] and any Covered Service Providers, if the engagement relates directly to the operations and financial reporting of the Fund.  In carrying out this responsibility, the Committee shall seek periodically from UBS Global [AM] and from the independent auditors a list of such audit and permissible non-audit services that can be expected to be rendered to the Fund, UBS Global [AM] or any Covered Service Providers by the Fund’s independent auditors, and an estimate of the fees sought to be paid in connection with such services.  The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit

services to a sub-committee consisting of the Chairperson of the Committee and two other members of the Committee as the Chairperson, from time to time, may determine and appoint, and such sub-committee shall report to the Committee, at its next regularly scheduled meeting after the sub-committee’s meeting, its decision(s).  From year to year, the Committee shall report to the Board whether this system of pre-approval has been effective and efficient or whether this Charter should be amended to allow for pre-approval pursuant to such policies and procedures as the Committee shall approve, including the delegation of some or all of the Committee’s pre-approval responsibilities to other persons (other than UBS Global [AM] or the Fund’s officers).

(1) The Committee will not approve non-audit services that the Committee believes may taint the independence of the auditors.  Currently, permissible non-audit services include any professional services (including tax services) that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund.  Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, UBS Global [AM] and any service providers controlling, controlled by or under common control with UBS Global [AM] that provide ongoing services to the Fund (“Covered Service Providers”) constitutes not more than 5% of the total amount of revenues paid to the independent auditors (during the fiscal year in which the permissible non-audit services are provided) by (a) the Fund, (b) its investment adviser and (c) any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

(e) (2)Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

Audit-Related Fees:

There were no amounts that were approved by the audit committee pursuant to the de minimis exception for the fiscal years ended July 31, 2011 and July 31, 2010 on behalf of the registrant.

There were no amounts that were required to be approved by the audit committee pursuant to the de minimis exception for the fiscal years ended July 31, 2011 and July 31, 2010 on behalf of the registrant’s service providers that relate directly to the operations and financial reporting of the registrant.

Tax Fees:

There were no amounts that were approved by the audit committee pursuant to the de minimis exception for the fiscal years ended July 31, 2011 and July 31, 2010 on behalf of the registrant.

There were no amounts that were required to be approved by the audit committee pursuant to the de minimis exception for the fiscal years ended July 31, 2011 and July 31, 2010 on behalf of the registrant’s service providers that relate directly to the operations and financial reporting of the registrant.

All Other Fees:

There were no amounts that were approved by the audit committee pursuant to the de minimis exception for the fiscal years ended July 31, 2011 and July 31, 2010 on behalf of the registrant.

There were no amounts that were required to be approved by the audit committee pursuant to the de minimis exception for the fiscal years ended July 31, 2011 and July 31, 2010 on behalf of the registrant’s service providers that relate directly to the operations and financial reporting of the registrant.

(f)According to E&Y, for the fiscal year ended July 31, 2011, the percentage of hours spent on the audit of the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons who are not full-time, permanent employees of E&Y was 0%.

(g)For the fiscal years ended July 31, 2011 and July 31, 2010, the aggregate fees billed by E&Y of $386,425 and $564,340, respectively, for non-audit services rendered on behalf of the registrant (“covered”), its investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser (“non-covered”) that provides ongoing services to the registrant for each of the last two fiscal years of the registrant is shown in the table below:

	2011		2010
Covered Services	$	322,050	$	334,340
Non-Covered Services	64,375		230,000

(h)The registrant’s audit committee was not required to consider whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable to the registrant.

Item 6.  Investments.

(a)Included as part of the report to shareholders filed under Item 1 of this form.

(b)Not applicable.

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the registrant.

Item 10.  Submission of Matters to a Vote of Security Holders.

The registrant’s Board has established a Nominating and Corporate Governance Committee.  The Nominating and Corporate Governance Committee will consider nominees recommended by shareholders if a vacancy occurs among those board members who are not “interested persons” as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended.  In order to recommend a nominee, a shareholder should send a letter to the chairperson of the Nominating and Corporate Governance Committee, Richard R. Burt, care of the Secretary of the registrant at UBS Global Asset Management, UBS Building, One North Wacker Drive, Chicago, IL 60606, Attn: Mark Kemper, Secretary, and indicate on the envelope “Nominating and Corporate Governance Committee.”  The shareholder’s letter should state the nominee’s name and should include the nominee’s resume or curriculum vitae, and must be accompanied by a written consent of the individual to stand for election if nominated for the Board and to serve if elected by shareholders.

Item 11.  Controls and Procedures.

(a)The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b)The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12.  Exhibits.

(a)(1) Code of Ethics as required pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 (and designated by registrant as a “Code of Conduct”) is filed herewith as Exhibit EX-99.CODE ETH.

(a)(2) Certifications of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit EX-99.CERT.

(a)(3) Written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons — not applicable to the registrant.

(b)Certifications of principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PACE Select Advisors Trust

By:	/s/ Mark E. Carver
	Mark E. Carver
	President
Date:	October 10, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Mark E. Carver
	Mark E. Carver
	President
Date:	October 10, 2011
By:	/s/ Thomas Disbrow
	Thomas Disbrow
	Vice President and Treasurer
Date:	October 10, 2011