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 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 1900 K Street, N.W. Washington, DC 20006
Registrant’s telephone number, including area code:				212-821 3000
Date of fiscal year end:	July 31
Date of reporting period:		July 31, 2017

Item 1.  Reports to Stockholders.

PACE^® Select Advisors Trust

Annual Report | July 31, 2017

Table of contents	Page
Introduction		3
Portfolio Advisor's and Subadvisors' commentaries and Portfolios of investments
PACE® Government Money Market Investments		5
PACE® Mortgage-Backed Securities Fixed Income Investments		9
PACE® Intermediate Fixed Income Investments		29
PACE® Strategic Fixed Income Investments		56
PACE® Municipal Fixed Income Investments		89
PACE® Global Fixed Income Investments (formerly, PACE® International Fixed Income Investments)		100
PACE® High Yield Investments		117
PACE® Large Co Value Equity Investments		141
PACE® Large Co Growth Equity Investments		156
PACE® Small/Medium Co Value Equity Investments		165
PACE® Small/Medium Co Growth Equity Investments		176
PACE® International Equity Investments		187
PACE® International Emerging Markets Equity Investments		203
PACE® Global Real Estate Securities Investments		214
PACE® Alternative Strategies Investments		222
Understanding your Portfolio's expenses		262
Statement of assets and liabilities		268
Statement of operations		276
Statement of changes in net assets		280
Statement of cash flows		286
Financial highlights		289
Notes to financial statements		318
Report of independent registered public accounting firm		369
Tax information		370
General information		371
Board approvals of investment management and administration agreement and subadvisory agreements		372
Supplemental information, trustees and officers		387

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Introduction

September 18, 2017

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 subadvisors regarding the events that affected Portfolio performance during the 12 months ended July 31, 2017 (the "reporting period"). Please note that the opinions of the subadvisors do not necessarily represent those of UBS Asset Management (Americas) Inc.

The global economic expansion continues

The US economy continued to expand, albeit at a relatively modest pace, during the reporting period. Looking back, the US Commerce Department reported that gross domestic product ("GDP") grew at a revised 2.2% seasonally adjusted annualized rate during the second quarter of 2016, prior to the beginning of the reporting period. GDP growth then improved to a revised 2.8% rate during the third quarter of 2016—the strongest reading since the first quarter of 2015. GDP growth then moderated to a revised 1.8% rate during the fourth quarter of 2016 and 1.2% during the first quarter of 2017, respectively. Finally, second quarter 2017 GDP grew at a 2.6% rate based on the US Commerce Department's initial estimate.

Prior to the beginning of the reporting period, after taking its first step toward normalizing monetary policy in late 2015, the US Federal Reserve Board (the "Fed") kept the federal funds rate unchanged until December 2016, when it increased rates by 0.25% to a range between 0.50% and 0.75%. After keeping rates unchanged at its first meeting in 2017, the Fed again raised rates 0.25% to a range between 0.75% and 1.00% at its meeting in March 2017, and then to a range between 1.00% and 1.25% at its meeting in June 2017. In its statement following its June meeting, the Fed indicated that it may begin reducing its balance sheet later in the year, saying, "The Committee currently expects to begin implementing a balance sheet normalization program this year, provided that the economy evolves broadly as anticipated."

From a global perspective, the International Monetary Fund's ("IMF") July 2017 World Economic Outlook Update stated, "The pickup in global growth anticipated in the April World Economic Outlook remains on track, with global output projected to grow by 3.5 percent in 2017 and 3.6 percent in 2018. The unchanged global growth projections mask somewhat different contributions at the country level. U.S. growth projections are lower than in April, primarily reflecting the assumption that fiscal policy will be less expansionary going forward than previously anticipated. Growth has been revised up for Japan and especially the euro area, where positive surprises to activity in late 2016 and early 2017 point to solid momentum." From a regional perspective, the IMF estimates 2017 growth in the eurozone will be 1.9%, versus 1.6% in 2016. Japan's economy is expected to expand 1.3% in 2017, compared to 1.0% in 2016. Elsewhere, the IMF projects that overall growth in emerging markets countries will accelerate to 4.6% in 2017, versus 4.3% in 2016.

Global equities generate very strong results

While there were periods of volatility, the global equity market generated very strong results during the reporting period as a whole. After a strong start, equites experienced a setback in October 2016 given uncertainties surrounding the US elections. However, US equities rallied sharply following the elections given expectations for improving growth under the Trump administration. International equities largely followed the same pattern, as they rallied amid signs of improving growth and continued monetary policy accommodation. All told, the US stock market, as measured by the S&P 500 Index,¹ gained 16.04% for the 12 months ended July 31, 2017. International developed

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.

3

equities, as measured by the MSCI EAFE Index (net),² rose 17.77% during the reporting period, while emerging markets equities, as measured by the MSCI Emerging Markets Index (net),³ gained 24.84%.

The fixed income market generates mixed results

The global fixed income market posted mixed results during the reporting period. In the US, Treasury yields moved sharply higher after the November elections as investors anticipated an uptick in growth and inflation. Additionally, Fed rate hikes pressured the shorter end of the yield curve. However, after peaking in mid-March 2017, yields moved lower amid skepticism about the Trump administration's growth initiatives. For the fiscal year as a whole, the yield on the US 10-year Treasury rose from 1.46% to 2.30% (bond yields and prices move in the opposite direction). The overall US bond market, as measured by the Bloomberg Barclays US Aggregate Bond Index,⁴ declined 0.51% for the 12 months ended July 31, 2017. Returns of riskier fixed income securities were much higher. High yield bonds, as measured by the BofA Merrill Lynch US High Yield Cash Pay Constrained Index⁵ gained 11.23% during the reporting period. Elsewhere, emerging markets debt, as measured by the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global),⁶ rose 4.59%.

Sincerely,

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

This report is intended to assist investors in understanding how the Portfolios performed during the 12-month period ended July 31, 2017. The views expressed in the Advisor's and Subadvisors' 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 Government Money Market Investments only) and subadvisors. Subadvisors' comments on Portfolios that have more than one subadvisor are reflective of their portion of the Portfolio only. The views and opinions in this report were current as of September 18, 2017. They are not guarantees of future performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the investment advisor and subadvisors 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.

²  The MSCI EAFE Index (net) is an index of stocks designed to measure the investment returns of developed economies outside of North America. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. 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 (net) is a market capitalization-weighted index composed of different emerging market countries in Europe, Latin America, and the Pacific Basin. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. 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.

⁴  The Bloomberg Barclays US Aggregate Bond Index is an unmanaged broad based index designed to measure the US dollar-denominated, investment-grade, taxable bond market. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed, asset-backed and commercial mortgage-backed sectors. 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 capitalization weighted, so that larger bond issuers have a greater effect on the index's return. However, the representation of any single bond issuer 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.

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PACE Government Money Market Investments

Performance (Unaudited)

The seven-day current yield for the Fund as of July 31, 2017 was 0.46% (after fee waivers/expense reimbursements).¹ For more information on the Fund's performance, refer to "Yields and characteristics at a glance" on page 6. 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 a detailed commentary on the market environment in general during the period, please refer to page 3.

Advisor's comments (Unaudited)

In December 2016, the US Federal Reserve Board (the "Fed") modestly raised the federal funds rate from a low range between 0.25% and 0.50% to a range between 0.50% and 0.75%. The federal funds rate or the "fed funds rate," is the rate US banks charge one another for funds they borrow on an overnight basis. The Fed again raised rates in March and June 2017. At the end of the reporting period the fed fund rates was in a range between 1.00% and 1.25%. (For more details on the Fed's actions, see page 3.) While the yields on a wide range of short-term investments moved higher over the period, yields still remain low by historical comparison. As a result, the Portfolio's yield remained low during the reporting period.

We tactically adjusted the Portfolio's weighted average maturity ("WAM") throughout the 12-month review period. When the reporting period began, the Portfolio had a WAM of 32 days. This was increased to 40 days at the end of the reporting period.

A number of adjustments were made to the Portfolio's sector and issuer positioning during the 12-month period. We increased the Portfolio's exposure to US government and agency obligations and reduced its allocation to repurchase agreements. (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.)

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

PACE Select Advisors Trust – PACE Government Money Market Investments

Investment Advisor:

UBS 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 issuers. Security selection is based on the assessment of relative values and changes in market and economic conditions.

5

PACE Government Money Market Investments

Yields and characteristics at a glance—July 31, 2017 (unaudited)

Yields and characteristics
Seven-day current yield after fee waivers and/or expense reimbursements1	0.46	%
Seven-day effective yield after fee waivers and/or expense reimbursements1	0.46
Seven-day current yield before fee waivers and/or expense reimbursements1	0.15
Seven-day effective yield before fee waivers and/or expense reimbursements1	0.15
Weighted average maturity2	40 days
Portfolio composition3
US government and agency obligations	76.3	%
Repurchase agreements	24.1
Other assets less liabilities	(0.4	)
Total	100.0	%

You could lose money by investing in PACE Government Money Market Investments. Although the portfolio seeks to preserve the value of your investment at $1.00 per share, the portfolio cannot guarantee it will do so. An investment in PACE Government Money Market Investments is not insured or guaranteed by the Federal Deposit Insurance Corporation ("FDIC") or any other government agency. PACE Government Money Market Investments' sponsor has no legal obligation to provide financial support to PACE Government Money Market Investments, and you should not expect that the portfolio's sponsor will provide financial support to PACE Government Money Market Investments at any time.

Not FDIC insured. May lose value. No bank guarantee.

¹  Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted.

²  The Portfolio is actively managed and its weighted average maturity will differ over time.

³  Weightings represent percentages of the Portfolio's net assets as of the date indicated. The Portfolio is actively managed and its composition will vary over time.

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PACE Government Money Market Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
US government and agency obligations—76.29%
Federal Farm Credit Bank 0.770%, due 10/27/171	$	1,000,000	$	998,139
1.180%, due 09/02/172		1,000,000		1,000,940
1.203%, due 08/26/172		2,000,000		2,000,000
1.214%, due 08/21/172		1,000,000		1,000,037
1.279%, due 08/08/172		2,000,000		1,999,835
1.324%, due 08/29/172		3,000,000		3,000,000
Federal Home Loan Bank 0.630%, due 08/03/171		1,000,000		999,965
0.750%, due 10/18/171		5,000,000		4,991,875
0.800%, due 08/09/172		2,000,000		2,000,101
0.910%, due 08/15/171		2,000,000		1,999,292
0.935%, due 08/11/171		2,000,000		1,999,481
0.950%, due 08/23/171		7,000,000		6,995,936
0.960%, due 09/05/171		2,000,000		1,998,133
0.970%, due 09/11/171		5,000,000		4,994,476
0.970%, due 11/13/171		1,000,000		997,198
0.975%, due 10/25/171		3,000,000		2,993,094
0.995%, due 11/01/171		5,000,000		4,987,286
1.010%, due 08/04/171		4,000,000		3,999,663
1.019%, due 11/03/171		1,000,000		997,389
1.020%, due 08/23/171		5,000,000		4,996,883
1.021%, due 12/07/171		2,000,000		1,992,889
1.025%, due 09/07/171		2,000,000		1,997,893
1.025%, due 09/20/171		2,000,000		1,997,153
1.025%, due 09/21/171		5,000,000		4,992,740
1.030%, due 09/18/171		2,000,000		1,997,253
1.040%, due 09/25/171		5,000,000		4,992,056
1.040%, due 09/26/171		5,000,000		4,991,911
1.046%, due 08/18/172		5,000,000		5,000,000
1.048%, due 09/15/171		5,000,000		4,993,450
1.050%, due 10/06/171		5,500,000		5,489,413
1.055%, due 10/04/171		2,000,000		1,996,249
1.076%, due 09/26/172		800,000		799,940
1.080%, due 10/16/171		7,000,000		6,984,040
1.080%, due 10/27/171		1,000,000		997,390
1.080%, due 11/27/171		3,000,000		2,989,380
1.083%, due 10/25/171		2,000,000		1,994,886
1.102%, due 08/25/172		1,000,000		1,000,000
1.109%, due 08/14/172		2,000,000		2,000,000
1.125%, due 01/19/181		5,000,000		4,973,281
1.129%, due 08/21/172		2,000,000		2,000,000
1.129%, due 12/22/171		2,000,000		1,991,031
1.229%, due 10/10/172		3,500,000		3,499,965
1.243%, due 08/28/172		600,000		599,974
1.277%, due 08/06/172		750,000		750,114

	Face amount		Value
US government and agency obligations—(concluded)
Federal National Mortgage Association 1.275%, due 10/11/172	$	2,000,000	$	2,000,000
US Treasury Bill 0.892%, due 09/28/171		5,000,000		4,992,814
US Treasury Notes 0.750%, due 10/31/17		3,000,000		2,999,535
0.875%, due 08/15/17		5,000,000		5,000,037
1.354%, due 08/01/172		1,000,000		1,000,100
1.358%, due 08/01/172		2,300,000		2,300,223
1.374%, due 08/01/172		6,000,000		6,000,751
1.875%, due 08/31/17		2,000,000		2,001,929
Total US government and agency obligations (cost—$152,266,120)				152,266,120
Repurchase agreements—24.07%
Repurchase agreement dated 07/31/17 with Goldman Sachs & Co., 1.020% due 08/01/17, collateralized by $20,265,000 Federal Farm Credit Banks, 1.404% to 3.000% due 04/04/18 to 05/19/36, $1,475,000 Federal Home Loan Bank obligations, zero coupon due 09/22/17, $787,000 US Treasury Bond, 8.125% due 08/15/19 and $52,994,893 US Treasury Bonds STRIPs, zero coupon due 11/15/19 to 08/15/46; (value—$48,960,000); proceeds: $48,001,360		48,000,000		48,000,000
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $34,126 US Treasury Note, 2.000% due 08/31/21; (value—$34,784); proceeds: $34,000		34,000		34,000
Total repurchase agreements (cost—$48,034,000)				48,034,000
Total investments (cost—$200,300,120 which approximates cost for federal income tax purposes)—100.36%				200,300,120
Liabilities in excess of other assets—(0.36)%				(714,761	)
Net assets—100.00%			$	199,585,359

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

7

PACE Government Money Market Investments

Portfolio of investments—July 31, 2017

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	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	$	—	$	152,266,120	$	—	$	152,266,120
Repurchase agreements		—		48,034,000		—		48,034,000
Total	$	—	$	200,300,120	$	—	$	200,300,120

At July 31, 2017, there were no transfers between Level 1 and Level 2

Portfolio footnotes

¹  Rate shown is the discount rate at the date of purchase unless otherwise noted.

²  Variable or floating rate security. The interest rate shown is the current rate at the period end and changes periodically.

See accompanying notes to financial statements.
8

PACE Mortgage-Backed Securities Fixed Income Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 0.55% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Bloomberg Barclays US Mortgage-Backed Securities Index (the "benchmark") returned 0.19%, and the Lipper US Mortgage Funds category posted a median return of 0.40%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 11. 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 3.

Advisor's comments (Unaudited)²

We performed in line with the benchmark during the reporting period. Overall, US interest rate strategies were negative for performance. A modest overweight to US Treasuries detracted from results as yields generally rose. Additionally, yield curve positioning, with a focus on the short end of the curve, was negative for performance as short rates underperformed the intermediate and long portions of the curve.

Relative value positioning within agency mortgage-backed securities ("MBS") contributed to returns. A modest overweight to Ginnie Mae ("GNMA") mortgages detracted from returns as the segment underperformed the broader mortgage market. However, a focus on 4 - 4.5% coupons within GNMA was positive for returns, as these coupons outperformed the broader mortgage market. An overweight to Freddie Mac securities contributed to results, as this segment outperformed the broader mortgage market. Holdings of interest-only and floating rate agency collateralized-mortgages, which benefit from increasing short-term interest rates, were additive for performance. Finally, exposure to mortgage credit, especially non-agency and commercial mortgages, added to returns.

Overall, derivative usage was positive for results during the reporting period, as the Portfolio was short long-end US swap rates, which underperformed Treasury rates. The Portfolio used interest rate swaps to adjust interest rate and yield curve exposures, as well as to substitute for physical securities. The Portfolio benefited from the income generated from selling mortgage pool options as a way to manage interest rate and volatility risk within the sector. Additionally, options on swaps were primarily used to manage interest rate exposure and volatility. They contributed to performance through income generation. Total return swaps were used to replicate broad exposure to interest-only agency mortgages while limiting the idiosyncratic risk of owning individual bonds.

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust – PACE Mortgage-Backed Securities Fixed
Income Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisor:

Pacific Investment Management Company LLC ("PIMCO")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Gina Toth, CFA, Fred Lee, CFA, Diana To and Anthony Karaminas, CFA

PIMCO: Daniel Hyman and Michael Cudzil

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

(continued on next page)

9

PACE Mortgage-Backed Securities Fixed Income Investments

Investment process
(concluded)

to within +/- 50% 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.

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.

10

PACE Mortgage-Backed Securities Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		0.30	%		1.64	%		4.04	%
Class C2		(0.21	)		1.15			3.52
Class Y3		0.63			1.92			4.31
Class P4		0.55			1.92			4.31
After deducting maximum sales charge
Class A1		(3.45	)		0.88			3.64
Class C2		(0.94	)		1.15			3.52
Bloomberg Barclays US Mortgage-Backed Securities Index5		0.19			1.93			4.28
Lipper US Mortgage Funds median		0.40			1.92			3.89

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		(0.11	)%		1.71	%		4.06	%
Class C2		(0.53	)		1.22			3.54
Class Y3		0.22			1.98			4.33
Class P4		0.22			1.97			4.32
After deducting maximum sales charge
Class A1		(3.83	)		0.94			3.66
Class C2		(1.26	)		1.22			3.54

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.07% and 0.97%; Class C—1.60% and 1.47%; Class Y—0.89% and 0.72%; and Class P—0.91% and 0.72% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to: (1) waive its management fees through November 30, 2017 to the extent necessary to reflect the lower subadvisory fee paid by UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—0.97%; Class C—1.47%; Class Y—0.72%; and Class P—0.72%. The Portfolio has agreed to repay UBS 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 and that UBS AM has not waived the right to do so. 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 AM. Upon termination of the agreement, however, UBS AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 3.75%. Class A shares bear ongoing 12b-1 service fees of 0.25% annually.

²  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 of 0.25% and 0.50% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The Bloomberg Barclays US Mortgage-Backed Securities Index is an unmanaged index which primarily covers the mortgage-backed passthrough securities issued by Ginnie Mae (formally known as the 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.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

11

PACE Mortgage-Backed 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 Mortgage-Backed Securities Fixed Income Investments Class P shares versus the Bloomberg Barclays US Mortgage-Backed Securities Index over the 10 years ended July 31, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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 Mortgage-Backed 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.

PACE Mortgage-Backed Securities Fixed Income Investments

12

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio statistics—July 31, 2017 (unaudited)

Characteristics
Weighted average duration		3.47 yrs.
Weighted average maturity		4.82 yrs.
Average coupon		2.79	%
Top ten holdings (long holdings)1	Percentage of net assets
FNMA TBA, 3.500%		17.8	%
FNMA TBA, 3.000%		9.5
FHLMC TBA, 3.500%		7.9
GNMA II TBA, 3.500%		7.8
FHLMC TBA, 3.000%		7.8
GNMA II TBA, 4.000%		5.6
FHLMC TBA, 4.500%		3.6
FHLMC, 4.000% due 06/01/47		3.2
FNMA TBA, 4.500%		3.0
GNMA II, 3.000% due 07/20/46		2.7
Total		68.9	%
Asset allocation1	Percentage of net assets
US government agency mortgage pass-through certificates		127.6	%
Collateralized mortgage obligations		17.9
Asset-backed securities		14.7
US government obligations		4.1
Stripped mortgage-backed securities		1.3
Options, swaptions, and swaps		0.1
Commercial mortgage-backed security		0.0	*
Investments sold short		(7.9	)
Cash equivalents and other assets less liabilities		(57.8	)
Total		100.0	%

*  Amount represents less than 0.05%.

¹  The Portfolio is actively managed and its composition will vary over time.

13

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
US government obligations—4.09%
US Treasury Notes 1.750%, due 06/30/22	$	3,375,000	$	3,362,080
2.250%, due 11/15/25		2,700,000		2,706,855
2.250%, due 02/15/27		9,675,000		9,647,794
2.375%, due 05/15/27		2,500,000		2,518,653
Total US government obligations (cost—$18,295,417)				18,235,382
Government national mortgage association certificates—33.20%
GNMA 3.000%, due 11/15/42		124,328		126,530
3.000%, due 02/15/431		644,571		656,026
3.000%, due 05/15/431		1,784,997		1,812,938
3.000%, due 06/15/431		560,060		569,229
3.000%, due 07/15/43		161,376		164,086
3.000%, due 01/15/45		444,770		452,603
3.000%, due 02/15/45		51,858		52,709
3.000%, due 07/15/451		704,604		716,166
3.000%, due 08/15/45		51,622		52,384
3.000%, due 10/15/451		1,134,957		1,153,351
3.000%, due 12/15/451		869,115		881,938
3.500%, due 11/15/42		891,177		928,213
3.500%, due 03/15/451		1,217,672		1,266,567
3.500%, due 04/15/451		890,591		926,814
3.500%, due 09/15/451		1,011,055		1,050,587
4.000%, due 12/15/41		1,652,884		1,746,546
4.000%, due 01/15/47		234,258		249,036
4.000%, due 02/15/47		1,142,291		1,214,313
4.000%, due 04/15/47		1,136,428		1,208,218
4.500%, due 09/15/39		906,169		989,106
4.500%, due 06/15/40		418,758		450,403
5.000%, due 12/15/34		200,120		218,850
5.000%, due 04/15/38		169,957		187,197
5.000%, due 05/15/38		5,247		5,779
5.000%, due 08/15/39		236,434		258,147
5.000%, due 09/15/39		506,568		557,374
5.000%, due 10/15/39		4,996		5,501
5.000%, due 12/15/39		14,034		15,419
5.000%, due 05/15/40		380,055		417,361
5.000%, due 09/15/40		8,878		9,701
5.000%, due 05/15/41		100,457		109,617
5.500%, due 08/15/35		32,633		36,710
5.500%, due 02/15/38		3,417		3,828
5.500%, due 04/15/38		295,282		329,675
5.500%, due 05/15/38		306,322		341,588
5.500%, due 06/15/38		163,791		182,503
5.500%, due 10/15/38		811,051		908,966
5.500%, due 11/15/38		45,894		51,137
5.500%, due 12/15/38		9,507		10,666
5.500%, due 03/15/39		71,037		79,061
5.500%, due 05/15/39		76,924		85,711
5.500%, due 09/15/39		390,537		435,120
5.500%, due 01/15/40		6,533		7,280
5.500%, due 03/15/40		462,602		518,500
5.500%, due 05/15/40		391		391
6.500%, due 02/15/29		838		924

	Face amount		Value
Government national mortgage association certificates—(continued)
6.500%, due 01/15/36	$	11,460	$	12,550
6.500%, due 09/15/36		198,215		225,466
6.500%, due 02/15/37		13,763		15,560
6.500%, due 04/15/37		10,208		11,375
6.500%, due 01/15/38		11,475		12,921
6.500%, due 06/15/38		32,894		36,362
6.500%, due 07/15/38		21,971		24,628
6.500%, due 11/15/38		7,440		8,943
7.500%, due 08/15/21		1,272		1,284
8.000%, due 02/15/23		383		410
8.250%, due 04/15/19		11,113		11,188
10.500%, due 02/15/19		7,364		7,397
10.500%, due 06/15/19		9,534		9,576
10.500%, due 07/15/19		5,404		5,429
10.500%, due 07/15/20		1,353		1,359
10.500%, due 08/15/20		8,351		8,390
GNMA I 3.000%, due 12/15/45		78,939		80,238
GNMA II 3.000%, due 07/20/46		11,999,991		12,184,501
3.000%, due 10/20/46		7,516,215		7,631,783
3.000%, due 11/20/46		4,386,084		4,453,524
3.000%, due 07/20/47		200,000		203,075
3.500%, due 04/20/45		15,707		16,363
3.500%, due 11/20/45		893,995		932,426
3.500%, due 05/20/46		2,260,851		2,378,408
3.750%, due 05/20/30		791,675		831,392
4.000%, due 12/20/40		917,534		949,692
4.000%, due 07/20/41		51,892		54,703
4.500%, due 09/20/41		394,882		408,378
4.500%, due 07/20/44		145,945		150,935
4.500%, due 10/20/44		760,966		787,077
4.500%, due 02/20/45		605,333		625,672
4.500%, due 08/20/45		411,138		437,202
4.500%, due 02/20/46		353,806		365,906
4.500%, due 04/20/46		56,371		58,301
5.000%, due 12/20/33		295,570		328,991
5.000%, due 01/20/34		158,432		174,500
5.000%, due 02/20/38		188,786		207,876
5.000%, due 04/20/38		234,969		259,052
5.000%, due 08/20/41		29,204		32,116
5.000%, due 12/20/42		42,528		46,360
5.000%, due 08/20/43		3,502,911		3,803,146
6.000%, due 10/20/38		7,214		7,758
6.500%, due 09/20/32		6,286		6,785
6.500%, due 11/20/38		11,406		11,950
6.500%, due 12/20/38		33,454		35,928
7.000%, due 03/20/28		47,854		48,703
9.000%, due 04/20/25		6,929		7,758
9.000%, due 12/20/26		3,099		3,246
9.000%, due 01/20/27		9,675		9,872
9.000%, due 09/20/30		1,098		1,102
9.000%, due 10/20/30		3,582		3,718
9.000%, due 11/20/30		4,746		4,811

14

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Government national mortgage association certificates—(concluded)
GNMA II ARM 2.125%, due 09/20/212	$	47,912	$	49,105
2.125%, due 06/20/222		38,639		39,366
2.125%, due 04/20/242		56,858		57,208
2.125%, due 05/20/252		5,635		5,783
2.125%, due 08/20/252		14,422		14,869
2.125%, due 09/20/252		20,145		20,764
2.125%, due 04/20/262		98,048		100,387
2.125%, due 06/20/262		42,245		43,376
2.125%, due 08/20/262		22,368		23,100
2.125%, due 09/20/262		3,600		3,719
2.125%, due 04/20/272		25,816		26,597
2.125%, due 07/20/272		8,292		8,577
2.125%, due 08/20/272		25,530		26,142
2.125%, due 04/20/302		16,935		17,506
2.125%, due 05/20/302		393,638		406,831
2.125%, due 07/20/302		62,796		65,143
2.125%, due 08/20/302		86,270		89,541
2.375%, due 01/20/232		30,425		31,113
2.375%, due 03/20/232		14,339		14,676
2.375%, due 01/20/242		45,187		46,093
2.375%, due 01/20/252		4,904		5,044
2.375%, due 02/20/252		9,138		9,388
2.375%, due 03/20/262		11,815		12,186
2.375%, due 01/20/272		74,518		74,760
2.375%, due 02/20/272		7,819		8,024
2.375%, due 01/20/282		11,185		11,576
2.375%, due 02/20/282		7,367		7,496
2.500%, due 04/20/182		516		515
2.500%, due 11/20/212		9,176		9,288
2.500%, due 03/20/252		15,904		16,390
2.500%, due 07/20/302		27,687		28,588
2.500%, due 08/20/302		1,912		1,956
2.500%, due 10/20/302		12,964		13,390
3.000%, due 04/20/182		425		426
3.000%, due 05/20/252		34,838		36,129
3.000%, due 06/20/252		14,849		15,219
3.500%, due 03/20/252		7,492		7,450
4.000%, due 01/20/182		3,712		3,720
4.000%, due 05/20/182		311		312
4.000%, due 06/20/192		5,758		5,761
GNMA TBA 4.000%		3,000,000		3,153,691
4.500%		4,500,000		4,820,274
GNMA II TBA 2.500%		1,000,000		979,941
3.000%		6,800,000		6,898,547
3.500%		33,500,000		34,753,808
4.000%		23,700,000		24,926,660
4.500%		11,000,000		11,668,164
Total government national mortgage association certificates (cost—$147,753,341)				147,939,454

	Face amount		Value
Federal home loan mortgage corporation certificates—31.27%
FHLMC 2.500%, due 01/01/31	$	424,886	$	429,156
3.000%, due 04/01/43		356,674		359,026
3.000%, due 05/01/43		293,516		295,450
3.000%, due 12/01/44		289,769		290,843
3.000%, due 04/01/45		1,841,849		1,849,793
3.000%, due 08/01/46		501,689		500,413
3.500%, due 09/01/32		639,657		671,451
4.000%, due 01/01/371		398,430		421,717
4.000%, due 07/01/431		290,746		308,686
4.000%, due 08/01/44		3,994,856		4,265,991
4.000%, due 06/01/47		13,379,619		14,099,953
4.500%, due 10/01/33		52,045		54,477
4.500%, due 09/01/34		1,230,675		1,277,198
4.500%, due 01/01/36		30,340		32,172
4.500%, due 05/01/37		9,419		9,980
4.500%, due 05/01/38		78,274		81,528
5.000%, due 10/01/25		64,787		70,508
5.000%, due 11/01/27		8,696		9,464
5.000%, due 07/01/33		10,836		11,184
5.000%, due 09/01/33		259,578		288,189
5.000%, due 01/01/34		37,494		41,089
5.000%, due 06/01/34		12,486		13,691
5.000%, due 04/01/35		48,470		52,750
5.000%, due 05/01/35		130,587		143,242
5.000%, due 07/01/35		1,125,392		1,237,747
5.000%, due 08/01/35		38,346		42,043
5.000%, due 10/01/35		31,806		34,851
5.000%, due 12/01/35		3,347		3,660
5.000%, due 02/01/37		74,671		81,936
5.000%, due 05/01/37		12,270		12,537
5.000%, due 06/01/37		62,778		68,854
5.000%, due 07/01/38		323,184		354,989
5.000%, due 11/01/38		293,987		322,914
5.000%, due 06/01/39		73,166		80,464
5.000%, due 08/01/39		28,004		30,762
5.000%, due 03/01/40		9,143		10,059
5.000%, due 07/01/40		407,696		447,798
5.000%, due 08/01/40		70,762		77,526
5.000%, due 09/01/40		191,723		210,200
5.000%, due 11/01/40		289,514		317,347
5.000%, due 02/01/41		600,374		657,344
5.000%, due 03/01/41		44,698		49,178
5.000%, due 04/01/41		1,263,375		1,379,971
5.000%, due 05/01/41		249,954		273,753
5.000%, due 06/01/41		79,373		86,837
5.000%, due 07/01/41		55,285		60,571
5.000%, due 08/01/44		105,530		116,224
5.500%, due 06/01/28		1,663		1,832
5.500%, due 02/01/32		2,345		2,621
5.500%, due 12/01/32		3,995		4,464
5.500%, due 02/01/33		48,831		53,841
5.500%, due 05/01/33		1,081		1,207
5.500%, due 06/01/33		247,653		276,857
5.500%, due 12/01/33		70,584		79,061
5.500%, due 12/01/34		55,529		62,208

15

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Federal home loan mortgage corporation certificates—(concluded)
5.500%, due 06/01/351	$	930,530	$	1,043,151
5.500%, due 07/01/35		6,628		7,338
5.500%, due 10/01/351		216,235		239,982
5.500%, due 12/01/35		143,101		159,470
5.500%, due 06/01/361		531,428		596,122
5.500%, due 07/01/36		23,225		24,366
5.500%, due 12/01/361		794,990		885,367
5.500%, due 03/01/37		97,983		109,101
5.500%, due 07/01/37		65,033		69,047
5.500%, due 10/01/37		4,842		5,388
5.500%, due 04/01/38		175,084		195,892
5.500%, due 05/01/38		16,349		18,063
5.500%, due 12/01/38		3,621		4,039
5.500%, due 01/01/39		74,013		82,463
5.500%, due 09/01/39		223,031		250,215
5.500%, due 02/01/40		10,948		12,170
5.500%, due 03/01/40		9,378		10,395
5.500%, due 05/01/40		141,702		157,977
5.500%, due 02/01/41		71,528		78,864
5.500%, due 03/01/41		150,728		168,049
6.000%, due 11/01/37		1,341,167		1,517,689
7.000%, due 08/01/25		232		259
9.000%, due 04/01/25		25,884		25,979
11.000%, due 06/01/19		115		115
11.000%, due 09/01/20		90		91
11.500%, due 06/01/19		6,035		6,055
FHLMC ARM 2.762%, due 01/01/282		13,646		14,030
2.804%, due 04/01/292		69,957		71,355
2.863%, due 11/01/272		64,884		65,939
2.874%, due 09/01/342		1,400,696		1,476,789
2.939%, due 10/01/232		25,847		26,457
2.962%, due 07/01/242		82,235		83,430
2.966%, due 09/01/372		929,615		978,683
3.036%, due 11/01/292		222,308		230,713
3.041%, due 12/01/292		32,829		34,076
3.044%, due 06/01/282		177,143		185,031
3.064%, due 10/01/272		144,121		152,100
3.093%, due 11/01/362		399,070		417,545
3.125%, due 01/01/302		26,872		27,009
3.139%, due 01/01/292		136,710		144,156
3.164%, due 07/01/282		84,922		88,361
3.175%, due 10/01/272		153,961		161,542
3.191%, due 11/01/252		117,750		124,253
3.401%, due 11/01/412		3,222,294		3,375,774
3.430%, due 10/01/392		2,644,875		2,792,490
FHLMC TBA 2.500%		5,500,000		5,545,473
3.000%		34,500,000		34,611,750
3.500%		34,000,000		34,966,876
4.500%		15,000,000		16,070,053
Total federal home loan mortgage corporation certificates (cost—$138,731,803)				139,329,139

	Face amount		Value
Federal housing administration certificates—0.03%
FHA GMAC 7.400%, due 02/01/213,4	$	9,624	$	9,618
FHA Reilly 6.896%, due 07/01/203,4		102,417		102,355
Total federal housing administration certificates (cost—$112,179)				111,973
Federal national mortgage association certificates—63.09%
FNMA 2.000%, due 05/01/28		244,613		241,799
2.348%, due 09/01/19		702,986		705,290
2.500%, due 06/01/28		300,074		304,395
2.500%, due 07/01/28		2,308,284		2,341,642
2.500%, due 08/01/28		719,766		730,176
2.500%, due 09/01/30		48,542		49,110
2.500%, due 11/01/30		75,467		76,183
2.500%, due 10/01/46		180,550		174,670
2.500%, due 11/01/46		493,208		477,144
2.500%, due 01/01/47		1,294,424		1,252,263
2.677%, due 02/01/422		807,083		837,004
2.830%, due 09/01/412		866,595		908,955
2.944%, due 10/01/372		3,710,453		3,906,661
2.994%, due 05/01/352		253,902		267,580
3.000%, due 02/01/21		2,835,424		2,918,302
3.000%, due 10/01/22		152,983		157,455
3.000%, due 08/01/23		134,482		138,527
3.000%, due 04/01/24		112,439		115,843
3.000%, due 07/01/24		1,126,026		1,160,273
3.000%, due 05/01/28		296,756		306,062
3.000%, due 02/01/30		551,171		567,282
3.000%, due 04/01/30		146,458		150,739
3.000%, due 05/01/30		139,993		144,085
3.000%, due 08/01/30		256,816		264,323
3.000%, due 10/01/30		44,670		45,976
3.000%, due 11/01/30		340,189		350,191
3.000%, due 12/01/301		384,671		395,965
3.000%, due 04/01/311		3,201,787		3,302,067
3.000%, due 10/01/42		686,241		691,171
3.000%, due 01/01/43		2,641,694		2,660,651
3.000%, due 04/01/43		1,008,686		1,015,869
3.000%, due 05/01/43		1,074,330		1,081,970
3.000%, due 06/01/43		149,787		150,851
3.000%, due 09/01/43		1,307,188		1,317,779
3.000%, due 12/01/46		2,922,465		2,939,821
3.045%, due 01/01/362		733,160		771,108
3.315%, due 05/01/382		2,325,242		2,454,057
3.440%, due 02/01/32		2,500,000		2,583,897
3.500%, due 11/01/25		592,891		618,959
3.500%, due 08/01/29		102,916		107,615
3.500%, due 12/01/41		1,373,434		1,427,687
3.500%, due 03/01/42		584,486		605,087
3.500%, due 04/01/42		75,635		77,997
3.500%, due 12/01/42		2,267,639		2,348,199
3.500%, due 03/01/43		1,220,737		1,263,782
3.500%, due 05/01/43		4,938,498		5,130,965

16

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Federal national mortgage association certificates—(continued)
3.500%, due 07/01/43	$	425,929	$	441,161
3.500%, due 06/01/45		5,730,273		5,904,396
3.500%, due 08/01/45		121,006		124,675
3.600%, due 08/01/23		805,907		858,166
4.000%, due 07/01/25		18,930		19,949
4.000%, due 08/01/25		52,425		55,247
4.000%, due 09/01/25		46,663		49,178
4.000%, due 10/01/25		24,011		25,076
4.000%, due 11/01/25		166,063		175,002
4.000%, due 01/01/26		395,852		414,945
4.000%, due 02/01/26		1,045,809		1,097,918
4.000%, due 03/01/26		995,025		1,048,346
4.000%, due 04/01/26		2,247,628		2,368,103
4.000%, due 08/01/32		10,975		11,664
4.000%, due 06/01/33		190,303		201,876
4.000%, due 07/01/33		676,256		718,816
4.000%, due 07/01/34		1,219,655		1,296,756
4.000%, due 05/01/39		173,961		184,941
4.000%, due 09/01/39		405,239		432,800
4.000%, due 09/01/401		4,053,972		4,288,453
4.000%, due 12/01/401		5,291,635		5,643,773
4.000%, due 04/01/411		1,173,153		1,248,786
4.000%, due 11/01/411		940,779		1,005,228
4.000%, due 12/01/411		1,198,191		1,279,892
4.000%, due 07/01/421		5,511,486		5,885,643
4.000%, due 09/01/421		7,237,167		7,720,792
4.000%, due 10/01/421		5,411,904		5,774,223
4.000%, due 12/01/44		68,006		71,669
4.000%, due 06/01/45		46,471		48,961
4.000%, due 08/01/45		3,151,507		3,319,802
4.000%, due 10/01/45		2,084,598		2,195,304
4.000%, due 12/01/45		459,312		483,729
4.000%, due 02/01/46		368,097		387,746
4.000%, due 05/01/46		887,654		935,124
4.000%, due 07/01/46		2,739,389		2,885,824
4.500%, due 05/01/19		1,590		1,627
4.500%, due 09/01/19		41,425		42,378
4.500%, due 08/01/20		16,392		16,769
4.500%, due 01/01/21		104,471		106,876
4.500%, due 05/01/21		81,231		83,101
4.500%, due 03/01/23		7,835		8,304
4.500%, due 06/01/35		17,239		17,941
4.500%, due 04/01/38		160,982		167,068
4.500%, due 01/01/39		2,029		2,181
4.500%, due 03/01/39		14,166		15,386
4.500%, due 06/01/39		90,672		98,548
4.500%, due 07/01/39		3,011		3,232
4.500%, due 08/01/39		148,406		161,208
4.500%, due 10/01/39		6,583		7,154
4.500%, due 12/01/39		529,201		576,823
4.500%, due 01/01/40		4,819		5,268
4.500%, due 02/01/40		5,370		5,855
4.500%, due 03/01/40		98,365		106,920
4.500%, due 08/01/40		89,973		97,774
4.500%, due 11/01/40		509,183		555,354
4.500%, due 07/01/41		604,341		656,540
4.500%, due 08/01/41		1,064,934		1,161,175

		Face amount		Value
Federal national mortgage association certificates—(continued)
4.500%, due 09/01/41		$	36,332	$	39,236
4.500%, due 01/01/42			2,887,137		3,138,750
4.500%, due 08/01/42			4,790		5,207
4.500%, due 09/01/43			414,021		452,667
4.500%, due 11/01/43			96,011		104,609
4.500%, due 07/01/44			425,972		463,866
4.500%, due 12/01/44			2,768		3,000
5.000%, due 12/01/17			34,398		35,181
5.000%, due 03/01/23			3,420		3,567
5.000%, due 05/01/23			86,435		90,746
5.000%, due 09/01/23			370,492		404,908
5.000%, due 07/01/24			536,144		585,948
5.000%, due 03/01/25			24,020		26,251
5.000%, due 07/01/27			543,739		594,248
5.000%, due 03/01/33			45,417		47,451
5.000%, due 05/01/37			14,115		14,730
5.000%, due 09/01/37			48,524		52,435
5.000%, due 06/01/38			104,693		113,188
5.500%, due 06/01/23			594,244		656,875
5.500%, due 10/01/24			8,877		9,812
5.500%, due 11/01/25			11,807		13,055
5.500%, due 07/01/27			135,527		149,838
5.500%, due 11/01/32			102,855		114,847
5.500%, due 12/01/33			1,407		1,572
5.500%, due 04/01/34			37,326		41,407
5.500%, due 01/01/35			128,407		141,941
5.500%, due 04/01/36			88,157		97,518
5.500%, due 05/01/37			262,485		293,714
5.500%, due 07/01/37			137,485		153,679
5.500%, due 06/01/38			230,213		256,047
5.500%, due 06/01/39			1,259,095		1,407,211
5.500%, due 11/01/39			475,991		531,839
5.500%, due 07/01/40	��		645,138		717,368
5.500%, due 02/01/42			377,064		421,003
6.000%, due 12/01/18			1,217		1,368
6.000%, due 07/01/19			1,036		1,165
6.000%, due 11/01/21			48,407		50,600
6.000%, due 01/01/23			150,042		157,113
6.000%, due 03/01/23			196,750		209,967
6.000%, due 09/01/25			997,748		1,121,986
6.000%, due 11/01/26			29,361		33,017
6.000%, due 02/01/32			77,778		87,499
6.000%, due 12/01/32			17,137		19,577
6.000%, due 02/01/33			30,109		34,123
6.000%, due 09/01/34			154,946		176,912
6.000%, due 04/01/35			342		385
6.000%, due 05/01/35			72,223		81,459
6.000%, due 06/01/35			22,863		26,112
6.000%, due 07/01/35			52,274		59,115
6.000%, due 09/01/35			2,028		2,316
6.000%, due 01/01/36			43,504		49,404
6.000%, due 06/01/36			350		394
6.000%, due 09/01/36			50,536		57,211
6.000%, due 10/01/36			17,324		19,546
6.000%, due 12/01/36			201,018		228,318
6.000%, due 03/01/37			22,709		25,822

17

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Federal national mortgage association certificates—(concluded)
6.000%, due 10/01/37	$	91,168	$	99,980
6.000%, due 12/01/37		47,632		53,563
6.000%, due 11/01/38		478,474		543,853
6.000%, due 05/01/39		60,396		68,793
6.000%, due 11/01/40		700,537		799,245
6.500%, due 07/01/19		5,222		5,781
6.500%, due 10/01/36		443,488		492,192
6.500%, due 02/01/37		3,822		4,244
6.500%, due 07/01/37		33,189		36,737
6.500%, due 08/01/37		80,112		88,676
6.500%, due 09/01/37		85,134		96,431
6.500%, due 12/01/37		174,775		196,257
6.500%, due 08/01/38		1,205		1,333
6.500%, due 05/01/40		1,498,189		1,736,849
7.500%, due 11/01/26		16,634		16,764
8.000%, due 11/01/26		9,634		9,749
9.000%, due 02/01/26		10,688		11,141
FNMA ARM 1.932%, due 03/01/442		240,574		244,833
2.145%, due 07/01/302		19,003		19,245
2.480%, due 10/01/262		82,794		83,617
2.603%, due 09/01/262		18,085		18,130
2.742%, due 02/01/262		30,446		30,482
2.750%, due 02/01/302		3,828		3,839
2.881%, due 05/01/302		34,854		36,175
3.123%, due 12/01/272		19,407		20,162
3.125%, due 03/01/252		50,052		51,943
FNMA TBA
2.000%		1,000,000		983,125
2.500%		9,500,000		9,505,191
3.000%		42,000,000		42,329,470
3.500%		77,000,000		79,399,178
4.500%		12,500,000		13,406,739
5.000%		4,700,000		5,083,578
Total federal national mortgage association certificates (cost—$280,587,037)				281,143,291
Collateralized mortgage obligations—17.86%
Alternative Loan Trust, Series 2004-J7, Class 2A1 2.012%, due 09/25/342		26,930		26,887
ARM Trust, Series 2005-8, Class 3A21 3.492%, due 11/25/352		908,591		765,235
BAMLL Commercial Mortgage Securities Trust, Series 2015-ASHF, Class A 2.379%, due 01/15/282,5		500,000		500,621
BCAP LLC 2010-RR1 Trust, Series 2010-RR1, Class 1A4 3.508%, due 03/26/372,5		193,733		160,302
BCAP LLC 2011-RR10 Trust, Series 2011-RR10, Class 3A5 3.187%, due 06/26/352,5		189,472		186,938
BCAP LLC 2011-RR11 Trust, Series 2011-R11, Class 22A1 2.543%, due 10/26/352,5		64,188		64,274

	Face amount		Value
Collateralized mortgage obligations—(continued)
Series 2011-R11, Class 8A5 1.412%, due 07/26/362,5	$	228,436	$	216,799
BCAP LLC 2013-RR1 Trust, Series 2013-RR1, Class 3A4 6.000%, due 10/26/372,5		448,418		417,967
BCAP LLC 2013-RR5 Trust, Series 2013-RR5, Class 5A1 1.572%, due 11/26/462,5		264,132		256,394
Bear Stearns ARM Trust, Series 2002-011, Class 1A2 3.551%, due 02/25/332		9,530		9,105
Series 2004-002, Class 12A2 3.204%, due 05/25/342		55,890		55,760
Bear Stearns Asset-Backed Securities Trust, Series 2003-AC5, Class A1 5.750%, due 10/25/336		746,892		768,275
Series 2004-AC3, Class A2 5.500%, due 06/25/346		997,631		1,008,774
Chevy Chase Mortgage Funding Corp., Series 2004-1, Class A1 1.512%, due 01/25/352,5		115,594		106,578
CHL Mortgage Pass-Through Trust, Series 2003-HYB1, Class 1A1 3.750%, due 05/19/332		4,346		4,296
Countrywide Commercial Mortgage Trust, Series 2007-MF1, Class A 6.271%, due 11/12/432,5		334,169		334,285
CSMC Trust, Series 2013-5R, Class 1A1 1.517%, due 02/27/362,5		217,354		213,824
Series 2013-MH1, Class A 4.791%, due 05/27/532,3,5		1,052,609		1,087,707
FHLMC REMIC, Series 0023, Class KZ 6.500%, due 11/25/23		18,565		20,247
Series 0159, Class H 4.500%, due 09/15/21		3,500		3,584
Series 1003, Class H 1.976%, due 10/15/202		6,381		6,440
Series 1349, Class PS 7.500%, due 08/15/22		737		804
Series 1502, Class PX 7.000%, due 04/15/23		131,680		144,086
Series 1534, Class Z 5.000%, due 06/15/23		54,761		57,336
Series 1573, Class PZ 7.000%, due 09/15/23		17,453		19,053
Series 1658, Class GZ 7.000%, due 01/15/24		8,429		9,226
Series 1694, Class Z 6.500%, due 03/15/24		86,216		94,821
Series 1775, Class Z 8.500%, due 03/15/25		2,861		3,305
Series 2400, Class FQ 1.726%, due 01/15/322		180,153		180,833
Series 2411, Class FJ 1.576%, due 12/15/292		20,525		20,525

18

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Collateralized mortgage obligations—(continued)
Series 2614, Class WO, PO 0.000%, due 05/15/33	$	1,251,494	$	1,142,131
Series 3096, Class FL 1.626%, due 01/15/362		178,458		178,997
Series 3114, Class PF 1.626%, due 02/15/362		927,752		931,925
Series 3153, Class UF 1.656%, due 05/15/362		232,704		233,733
Series 3339, Class LI, IO 5.254%, due 07/15/372		994,975		157,210
Series 3442, Class MT 1.226%, due 07/15/342		105,218		101,790
Series 3598, Class JI, IO 1.616%, due 10/15/372		72,617		3,315
Series 3621, Class WI, IO 1.829%, due 05/15/372		136,311		8,000
Series 3635, Class IB, IO 1.466%, due 10/15/372		241,093		12,956
Series 3667, Class FW 1.776%, due 02/15/382		145,544		146,343
Series 3671, Class FQ 2.076%, due 12/15/362		1,614,864		1,633,022
Series 3684, Class JI, IO 1.598%, due 11/15/362		659,344		47,019
Series 3864, Class NT 5.500%, due 03/15/392		804,873		868,584
Series 4037, Class PI, IO 3.000%, due 04/15/27		3,934,111		322,005
Series 4131, Class AI, IO 2.500%, due 10/15/22		2,080,050		93,991
Series 4136, Class EZ 3.000%, due 11/15/42		1,336,414		1,339,453
Series 4156, Class SA, IO 4.974%, due 01/15/332		2,537,611		404,507
Series 4165, Class TI, IO 3.000%, due 12/15/42		2,455,500		244,826
Series 4182, Class YI, IO 2.500%, due 03/15/28		6,030,704		504,472
Series 4255, Class SN 8.994%, due 05/15/352		348,181		403,257
Series 4263, Class SD 8.999%, due 11/15/432		406,514		458,358
Series 4265, Class ES 9.833%, due 11/15/432		828,981		1,044,501
Series 4324, Class IO, IO 2.109%, due 08/15/362		371,519		23,142
Series 4338, Class SB, IO 1.880%, due 10/15/412		429,044		25,964
Series 4367, Class GS, IO 1.651%, due 03/15/372		227,240		13,970
Series 4394, Class WI, IO 1.778%, due 08/15/412		207,709		12,421
Series 4438, Class WI, IO 1.663%, due 11/15/382		691,010		39,075
Series 4457, Class DI, IO 4.000%, due 08/15/24		1,600,688		139,112

	Face amount		Value
Collateralized mortgage obligations—(continued)
Series 4463, Class IO, IO 2.009%, due 02/15/382	$	473,039	$	28,203
Series 4544, Class IP, IO 4.000%, due 01/15/46		4,595,576		914,632
Trust 2513, Class AS, IO 6.774%, due 02/15/322		425,298		87,142
Trust 3609, Class LI, IO 4.500%, due 12/15/24		770,070		25,081
Trust 3838, Class LI, IO 4.500%, due 04/15/22		338,688		18,989
Trust 3962, Class KS, IO 1.684%, due 06/15/382		409,855		27,451
Trust 4076, Class SW, IO 4.824%, due 07/15/422		2,940,764		632,087
Trust 4100, Class HI, IO 3.000%, due 08/15/27		708,782		65,565
Trust 4182, Class QI, IO 3.000%, due 02/15/33		260,305		24,205
Trust 4479, Class NI, IO 4.500%, due 11/15/19		458,053		13,333
FHLMC STRIPs, Series 303, Class C19, IO 3.500%, due 01/15/43		1,450,602		295,687
Series 320, Class S4, IO 1.490%, due 10/15/372		3,137,075		184,266
Series 328, Class S4, IO 2.018%, due 02/15/382		358,770		20,797
FNMA REMIC, Series 386, Class 14, IO 6.500%, due 04/25/38		110,523		29,405
Series 413, Class 111, IO 4.000%, due 07/25/422		1,676,883		318,267
Series 419, Class C3, IO 3.000%, due 11/25/43		284,246		55,249
Trust 1988-007, Class Z 9.250%, due 04/25/18		4,298		4,351
Trust 1992-129, Class L 6.000%, due 07/25/22		2,157		2,282
Trust 1992-158, Class ZZ 7.750%, due 08/25/22		2,400		2,668
Trust 1993-037, Class PX 7.000%, due 03/25/23		93,069		100,766
Trust 1997-022, Class F 1.223%, due 03/25/272		84,520		83,477
Trust 2002-060, Class F1 1.632%, due 06/25/322		74,973		74,864
Trust 2003-070, Class SH 11.536%, due 07/25/232		68,428		81,680
Trust 2007-067, Class FB 1.552%, due 07/25/372		559,987		560,029
Trust 2009-033, Class FB 2.052%, due 03/25/372		1,033,132		1,048,485
Trust 2010-141, Class FA 1.732%, due 12/25/402		562,549		561,659
Trust 2010-76, Class SA, IO 5.268%, due 07/25/402		2,274,930		385,224

19

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Collateralized mortgage obligations—(continued)
Trust 2011-86, Class DI, IO 3.500%, due 09/25/21	$	198,667	$	10,507
Trust 2012-090, Class FB 1.672%, due 08/25/422		257,916		257,127
Trust 2012-111, Class HS 2.640%, due 10/25/422		264,970		217,754
Trust 2012-122, Class LI, IO 4.500%, due 07/25/41		1,343,946		223,743
Trust 2012-128, Class FK 1.582%, due 11/25/422		489,010		485,812
Trust 2012-32, Class AI, IO 3.000%, due 04/25/22		331,332		16,495
Trust 2012-77, Class IO, IO 1.672%, due 07/25/522		589,764		32,272
Trust 2013-028, Class YS, IO 4.918%, due 07/25/422		1,780,793		305,703
Trust 2013-030, Class GI, IO 3.000%, due 01/25/43		3,351,808		511,018
Trust 2013-030, Class JI, IO 3.000%, due 04/25/43		1,187,680		181,264
Trust 2013-034, Class PS, IO 4.918%, due 08/25/422		1,013,966		172,692
Trust 2013-044, Class ZG 3.500%, due 03/25/42		659,435		675,716
Trust 2013-045, Class IK, IO 3.000%, due 02/25/43		2,218,884		330,851
Trust 2013-116, Class IY, IO 3.000%, due 09/25/43		693,534		83,380
Trust 2014-42, Class SA, IO 1.558%, due 07/25/442		594,244		29,077
Trust 2014-43, Class BS, IO 1.763%, due 07/25/442		989,490		47,071
Trust 2014-45, Class SA, IO 1.979%, due 08/25/442		700,632		41,995
Trust 2014-47, Class BI, IO 1.791%, due 08/25/542		962,631		58,360
Trust 2014-92, Class SB, IO 1.856%, due 01/25/452		771,960		44,714
Trust 2015-073, Class ES 6.470%, due 10/25/452		488,006		489,015
Trust 2015-10, Class SA, IO 1.857%, due 03/25/452		595,336		40,133
Trust 2015-19, Class AI, IO 1.633%, due 04/25/552		932,805		45,930
Trust 2015-47, Class GI, IO 4.000%, due 06/25/44		381,340		55,365
Trust 2015-50, Class SB, IO 1.587%, due 07/25/452		3,302,037		208,102
Trust 2015-58, Class AI, IO 1.913%, due 08/25/552		577,436		33,736
Trust 2015-64, Class KS, IO 1.554%, due 09/25/452		690,636		39,447
Trust 2015-74, Class BI, IO 1.602%, due 10/25/452		795,944		47,863
Trust 2016-14, Class IO, IO 3.000%, due 03/25/46		1,854,199		272,284

	Face amount		Value
Collateralized mortgage obligations—(continued)
Trust 2016-17, Class CS, IO 2.161%, due 04/25/46	$	475,267	$	22,856
Trust 2016-20, Class EI, IO 3.000%, due 04/25/46		647,260		84,035
Trust 2016-52, Class PI, IO 3.000%, due 04/25/46		1,865,605		262,853
Trust 2016-57, Class SN, IO 4.818%, due 06/25/462		4,173,735		846,551
Trust 2016-63, Class YI, IO 3.500%, due 04/25/46		1,429,631		169,652
Trust 2016-64, Class IA, IO 3.000%, due 05/25/46		1,403,908		203,156
Trust 2016-76, Class CS, IO 1.462%, due 10/25/462		199,612		9,731
Trust 2016-M11, Class AL 2.944%, due 07/25/39		4,636,144		4,567,987
Trust G92-040, Class ZC 7.000%, due 07/25/22		8,417		9,039
Trust G94-006, Class PJ 8.000%, due 05/17/24		13,244		14,636
GMAC Mortgage Loan Trust, Series 2004-AR1, Class 12A 3.931%, due 06/25/342		19,023		19,206
GNMA REMIC, Trust 2000-009, Class FH 1.726%, due 02/16/302		8,825		8,863
Trust 2000-035, Class F 1.776%, due 12/16/252		98,163		99,344
Trust 2007-018, Class CO, PO 0.010%, due 03/20/35		29,934		25,332
Trust 2010-H01, Class FA 2.040%, due 01/20/602		3,645,284		3,674,285
Trust 2012-140, Class JI, IO 3.500%, due 01/20/41		1,658,344		213,251
Trust 2013-23, Class IP, IO 3.500%, due 08/20/42		1,868,950		310,414
Trust 2013-77, Class GI, IO 3.000%, due 02/20/43		4,319,093		537,128
Trust 2013-82, Class WI, IO 3.500%, due 07/20/42		3,976,994		679,621
Trust 2013-84, Class SC, IO 5.374%, due 03/16/402		1,012,782		160,040
Trust 2013-H19, Class DF 1.726%, due 05/20/632		1,537,505		1,543,816
Trust 2013-H20, Class FB 2.076%, due 08/20/632		2,425,441		2,461,553
Trust 2013-H23, Class TA 1.796%, due 09/20/632		991,579		997,373
Trust 2014-158, Class IA, IO 3.500%, due 10/20/29		1,606,674		179,475
Trust 2014-188, Class CI, IO 4.000%, due 05/20/44		379,458		62,530
Trust 2015-126, Class GS 6.470%, due 09/20/452		363,659		379,582
Trust 2015-127, Class AS, IO 0.870%, due 06/20/432		923,033		29,794

20

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Collateralized mortgage obligations—(continued)
Trust 2015-165, Class IB, IO 3.500%, due 11/20/42	$	753,522	$	104,028
Trust 2015-166, Class SA, IO 0.775%, due 06/20/422		1,097,666		33,334
Trust 2015-180, Class SA, IO 0.725%, due 06/20/422		1,193,583		36,034
Trust 2015-42, Class AI, IO 3.000%, due 05/20/39		763,769		87,096
Trust 2015-H27, Class FA 1.826%, due 09/20/652		2,906,380		2,920,280
Trust 2015-H29, Class FA 1.776%, due 10/20/652		1,678,736		1,684,427
Trust 2015-H29, Class FJ 1.756%, due 11/20/652		2,480,382		2,483,964
Trust 2015-H30, Class FA 1.756%, due 08/20/612		1,401,925		1,406,386
Trust 2015-H30, Class FB 1.756%, due 03/20/622		262,212		263,044
Trust 2016-118, Class IE, IO 3.500%, due 09/20/46		96,168		15,441
Trust 2016-138, Class WI, IO 0.779%, due 08/20/452		806,769		34,474
Trust 2016-180, Class WI, IO 0.759%, due 09/20/452		1,630,333		59,274
Trust 2016-84, Class KS, IO 4.852%, due 11/20/452		3,423,886		662,260
Trust 2016-H04, Class FG 1.776%, due 12/20/612		2,231,115		2,239,769
Trust 2016-H14, Class FA 1.876%, due 06/20/662		680,433		685,757
Trust 2017-15, Class WI, IO 0.735%, due 11/20/452		837,044		25,885
Trust 2017-57, Class WI, IO 0.694%, due 12/20/452		461,520		11,013
GS Mortgage Securities Corp. II, Series 2015-GC30, Class A3 3.119%, due 05/10/50		5,000,000		5,060,534
GSR Mortgage Loan Trust, Series 2004-14, Class 2A1 1.562%, due 12/25/342		7,230		6,594
Indymac Index Mortgage Loan Trust, Series 2005-AR2, Class 2A1A 1.872%, due 02/25/352		647,702		613,996
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2016-FLRR, Class AFL 2.676%, due 01/15/332,5		2,488,928		2,488,925
JPMorgan Alternative Loan Trust, Series 2008-R4, Class 2A1 1.720%, due 06/27/372,5		1,521,291		1,277,423
Merrill Lynch Mortgage Investors Trust, Series 2004-1, Class 2A2 3.108%, due 12/25/342		327,110		329,037
Series 2004-A, Class A1 1.692%, due 04/25/292		70,429		67,838

	Face amount		Value
Collateralized mortgage obligations—(concluded)
Morgan Stanley Mortgage Loan Trust, Series 2004-11AR, Class 1A1 1.552%, due 01/25/352	$	62,735	$	58,220
Series 2005-6AR, Class 1A1 1.512%, due 11/25/352		74,165		74,520
Morgan Stanley Re-REMIC Trust, Series 2010-R4, Class 4B 3.007%, due 02/26/372,5		298,865		238,455
Series 2013-R10, Class 3A 1.526%, due 01/26/512,5		445,485		427,560
Mortgage Equity Conversion Asset Trust, Series 2007-FF3, Class A 1.720%, due 05/25/422,5		4,114,560		3,703,104
Motel 6 Trust, Series 2015-MTL6, Class B 3.298%, due 02/05/305		5,000,000		5,001,664
RBSSP Resecuritization Trust Certificate, Series 2009-6, Class 18A1 1.733%, due 12/26/362,5		445,559		440,258
Sequoia Mortgage Trust, Series 5, Class A 1.928%, due 10/19/262		110,278		107,917
Structured ARM Loan, Series 2007-4, Class 1A2 1.452%, due 05/25/372		271,061		237,180
Structured Asset Mortgage Investments, Inc., Series 2006-AR3, Class 11A1 1.442%, due 04/25/362		946,217		855,100
Thornburg Mortgage Securities Trust, Series 2005-1, Class A3 3.098%, due 04/25/452		120,476		120,789
Washington Mutual Mortgage Pass-Through Certificates, Series 2003-AR9, Class 2A 2.856%, due 09/25/332		279,770		282,416
Total collateralized mortgage obligations (cost—$79,001,787)				79,597,729
Asset-backed securities—14.75%
Allegro CLO I Ltd., Series 2013-1A, Class A1R 2.390%, due 01/30/262,5		1,500,000		1,500,000
Ameriquest Mortgage Securities, Inc., Asset-Backed Pass-Through Certificates, Series 2004-R9, Class M2 2.207%, due 10/25/342		771,037		773,621
Series 2005-R1, Class M4 2.342%, due 03/25/352		200,000		184,252
Series 2005-R11, Class M1 1.682%, due 01/25/362		400,000		395,681
Amortizing Residential Collateral Trust, Series 2004-1, Class A5 2.232%, due 10/25/342		238,912		233,682
Apidos CLO XIV, Series 2013-14A, Class A 2.454%, due 04/15/252,5		1,900,000		1,901,184

21

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Asset-backed securities—(continued)
Atrium X, Series 10A, Class AR 2.254%, due 07/16/252,5	$	3,300,000	$	3,300,300
Babson CLO Ltd., Series 2014-3A, Class AR 2.624%, due 01/15/262,5		1,500,000		1,502,801
Bear Stearns Asset-Backed Securities Trust, Series 2004-2, Class M1 2.432%, due 08/25/342		7,485,131		7,223,040
Series 2006-2, Class M1 1.652%, due 07/25/362		81,608		81,503
BlueMountain CLO Ltd., Series 2014-1A, Class A1R 2.430%, due 04/30/262,5		1,500,000		1,510,791
Brookside Mill CLO Ltd., Series 2013-1A, Class A1 2.454%, due 04/17/252,5		1,927,644		1,927,644
Carlyle Global Market Strategies CLO 2014-2 Ltd., Series 2014-2A, Class AR 2.432%, due 05/15/252,5		500,000		500,071
Cent CLO 19 Ltd., Series 2013-19A, Class A1A 2.500%, due 10/29/252,5		500,000		500,488
Series 2014-21A, Class A1BR 2.527%, due 07/27/262,5		1,300,000		1,299,997
Chase Funding Trust, Series 2002-3, Class 2A1 1.872%, due 08/25/322		163,116		149,477
Series 2002-4, Class 2A1 1.972%, due 10/25/322		11,166		11,066
CIFC Funding Ltd., Series 2014-2A, Class AL1R 2.392%, due 05/24/262,5		900,000		901,689
CIT Mortgage Loan Trust, Series 2007-1, Class 1A 2.582%, due 10/25/372,5		1,694,344		1,682,518
Countrywide Asset-Backed Certificates, Series 2004-2, Class 3A4 1.732%, due 07/25/342		80,086		74,607
Series 2004-4, Class M1 1.952%, due 07/25/342		193,915		192,959
Series 2004-6, Class M1 2.132%, due 10/25/342		193,971		187,303
CSMC, Series 2017-1 4.500%, due 03/25/21		425,592		425,811
EMC Mortgage Loan Trust, Series 2003-A, Class A2 1.982%, due 08/25/402,5		114,650		107,484
Equifirst Loan Securitization Trust, Series 2007-1, Class A1 1.402%, due 04/25/372,5		2,630,470		2,320,099
FBR Securitization Trust, Series 2005-5, Class AV24 1.972%, due 11/25/352		96,866		96,723

	Face amount		Value
Asset-backed securities—(continued)
First Franklin Mortgage Loan Trust, Series 2005-FFH1, Class M1 1.907%, due 06/25/362	$	123,732	$	123,478
Flagship VII Ltd., Series 2013-7A, Class A1R 2.427%, due 01/20/262,5		500,000		500,020
Flatiron CLO Ltd., Series 2013-1A, Class A1R 2.464%, due 01/17/262,5		4,000,000		3,999,976
Fremont Home Loan Trust, Series 2004-A, Class M1 2.057%, due 01/25/342		640,680		612,911
Galaxy CLO Ltd., Series 2013-16A, Class A2R 2.310%, due 11/16/252,5		1,100,000		1,100,059
Green Tree Financial Corp., Series 1998-2, Class A5 6.240%, due 12/01/28		11,203		11,566
GSAA Home Equity Trust, Series 2005-4, Class A5 1.452%, due 03/25/352		135,649		135,389
JP Morgan Mortgage Acquisition Corp., Series 2005-FRE1, Class A2F3 3.471%, due 10/25/356		148,141		146,521
Series 2006-FRE1, Class A1 1.462%, due 05/25/352		340,516		338,755
Series 2006-FRE1, Class A3 1.422%, due 05/25/352		249,079		248,574
Series 2006-FRE2, Class A1 1.412%, due 02/25/362		295,873		293,800
JP Morgan Mortgage Acquisition Trust, Series 2006-ACC1, Class A1 1.392%, due 05/25/362		324,590		321,435
Series 2006-ACC1, Class M1 1.502%, due 05/25/362		300,000		291,706
Series 2006-CH1, Class A5 1.462%, due 07/25/362		174,332		173,343
Series 2007-CH2, Class AV1 1.392%, due 01/25/372		435,115		432,235
KVK CLO Ltd., Series 2013-2A, Class AR 2.454%, due 01/15/262,5		600,000		600,022
Madison Park Funding V Ltd., Series 2007-5A, Class A1A 1.420%, due 02/26/212,5		882,641		881,661
Madison Park Funding XII Ltd., Series 2014-12A, Class AR 2.567%, due 07/20/262,5		4,000,000		4,001,560
Merrill Lynch Mortgage Investors Trust, Series 2006-FF1, Class M3 1.542%, due 08/25/362		300,000		296,137
Morgan Stanley ABS Capital I, Inc., Series 2005-WMC6, Class M3 1.997%, due 07/25/352		323,910		323,915
Morgan Stanley Home Equity Loan Trust, Series 2005-1, Class M4 2.282%, due 12/25/342		400,000		393,847

22

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Asset-backed securities—(continued)
NYMT Residential, Series 2016-RP1, Class A 4.000%, due 03/25/215,6	$	547,431	$	549,520
Oak Hill Credit Partners X Ltd., Series 2014-10A, Class AR 2.437%, due 07/20/262,5		1,500,000		1,502,696
OFSI Fund V Ltd., Series 2013-5A, Class A1BR 2.454%, due 04/17/252,5		77,870		77,870
OZLM Funding V Ltd., Series 2013-5A, Class A1R 2.434%, due 01/17/262,5		300,000		300,008
OZLM VI Ltd., Series 2014-6A, Class A1R 2.604%, due 04/17/262,5		1,000,000		1,000,236
Palmer Square CLO Ltd., Series 2013-1R, Class A1R 2.152%, due 05/15/252,5		1,400,000		1,403,065
Park Place Securities, Inc., Asset-Backed Pass-Through Certificates, Series 2005-WHQ3, Class M4 2.177%, due 06/25/352		200,000		200,260
Pinnacle Park CLO Ltd., Series 2014-1A, Class AR 2.564%, due 04/15/262,5		1,700,000		1,700,063
RAAC, Series 2005-SP3 Trust, Series 2005-SP3, Class M1 1.762%, due 12/25/352		1,500,000		1,491,706
RASC, Series 2005-KS11 Trust, Series 2005-KS11, Class M2 1.652%, due 12/25/352		400,000		390,077
Regatta V Funding Ltd., Series 2014-1A, Class A1AR 2.474%, due 10/25/262,5		2,730,000		2,730,123
Renaissance Home Equity Loan Trust, Series 2003-2, Class A 2.112%, due 08/25/332		178,221		166,737
Saxon Asset Securities Trust, Series 2005-3, Class M3 1.732%, due 11/25/352		2,100,000		1,790,791
SLM Student Loan Trust, Series 2010-A, Class 2A 4.476%, due 05/16/442,5		607,810		630,084
Specialty Underwriting & Residential Financing, Series 2003-BC1, Class A 1.912%, due 01/25/342		63,563		60,599
Staniford Street CLO Ltd., Series 2014-1A, Class AR 2.426%, due 06/15/252,5		500,000		499,995
Structured Asset Securities Corp. Mortgage Loan Trust, Series 2006-EQ1A, Class A1 1.367%, due 07/25/362,5		366,133		355,418
Symphony CLO XIV Ltd., Series 2014-14A, Class A1R 2.584%, due 07/14/262,5		1,000,000		1,000,322

	Face amount		Value
Asset-backed securities—(concluded)
THL Credit Wind River CLO Ltd., Series 2014-1A, Class AR 2.484%, due 04/18/262,5	$	250,000	$	249,999
TICP CLO Ltd., Series 2014-3A, Class AR 2.487%, due 01/20/272,5		450,000		450,078
US Residential Opportunity Fund III Trust, Series 2016-1III, Class A 3.475%, due 07/27/365,6		1,469,351		1,470,746
Vericrest Opportunity Loan Trust, 2014-NP11, Class A1 3.875%, due 04/25/555,6		19,035		19,041
VOLT LIX LLC, Series 2017-NPL6, Class A1 3.250%, due 05/25/475,6		381,670		382,131
Series 2017-NPL7, Class A1 3.250%, due 04/25/595,6		2,898,600		2,912,027
WhiteHorse VI Ltd., Series 2012-1A, Class A1R 2.370%, due 02/03/252,5		163,445		163,445
Total asset-backed securities (cost—$64,638,245)				65,708,738
Commercial mortgage-backed security—0.03%
FNMA Aces, Trust 2013-M5, Class X2, IO 2.251%, due 01/25/222 (cost—$104,961)		1,913,188		116,323
Stripped mortgage-backed securities—1.31%
FHLMC Multifamily Structured Pass-Through Certificates, Series K005, Class AX, IO 1.354%, due 11/25/192		22,002,779		607,627
Series K006, Class AX1, IO 0.968%, due 01/25/202		12,589,632		253,928
Series K014, Class X1, IO 1.191%, due 04/25/212		7,486,927		282,621
Series K027, Class X1, IO 0.811%, due 01/25/232		6,734,460		241,276
Series K712, Class X1, IO 1.337%, due 11/25/192		4,165,471		94,544
Series KAIV, Class X1, IO 1.307%, due 06/25/212		4,524,952		174,953
Series KF05, Class A 1.582%, due 09/25/212		806,698		806,950
Series KF06, Class A 1.562%, due 11/25/212		892,133		892,134
Series KP03, Class A2 1.780%, due 07/25/19		1,338,902		1,340,554
FHLMC REMIC, Series 0013, Class B, IO 7.000%, due 06/25/23		40,287		5,639
Series 2136, Class GD, IO 7.000%, due 03/15/29		3,708		757
Series 2178, Class PI, IO 7.500%, due 08/15/29		20,082		4,443
GNMA REMIC, Trust 2011-92, Class IX, IO 0.734%, due 11/16/442		1,463,339		191,786

23

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Stripped mortgage-backed securities—(concluded)
KGS Alpha SBA, Series 2012, IO 1.072%, due 04/25/382,3,4,5	$	34,504,260	$	933,062
Total stripped mortgage-backed securities (cost—$5,935,562)				5,830,274
Short-term US government obligations—0.15%
US Treasury Bills 0.940%, due 08/31/177		394,000		393,691
0.940%, due 08/31/177		293,000		292,771
Total short-term US government obligations (cost—$686,462)				686,462
Repurchase agreements—8.13%
Repurchase agreement dated 07/31/17 with BNP Paribas Securities Corp., 1.170% due 08/01/17, collateralized by $32,200,000 Government National Mortgage Association obligations, 3.000% due 12/20/45; (value—$33,285,062); proceeds: $32,201,047		32,200,000		32,200,000
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $3,960,685 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$4,124,880); proceeds: $4,044,006		4,044,000		4,044,000
Total repurchase agreements (cost—$36,244,000)				36,244,000
	Notional amount
Option purchased—0.00%†
Put options—0.00%†
FNMA TBA, 3.000%, strike @ $98.64, expires 09/06/17 (cost—$15,703)	USD	3,000,000		2,584
Swaptions purchased—0.08%
Put swaptions3—0.08%
3 Month USD LIBOR Interest Rate Swap, strike @ 1.600%, expires 08/02/2017 (Counterparty CITI; receive fixed rate); underlying swap terminates 08/04/2018	USD	75,000,000		0
3 Month USD LIBOR Interest Rate Swap, strike @ 2.050%, expires 09/05/2017 (Counterparty CITI; receive fixed rate); underlying swap terminates 09/07/2027	USD	5,000,000		108,495

	Notional amount			Value
Swaptions purchased—(concluded)
Put swaptions3—(concluded)
3 Month USD LIBOR Interest Rate Swap, strike @ 2.250%, expires 11/28/2017 (Counterparty RBS; receive fixed rate); underlying swap terminates 11/30/2018	USD	111,800,000		$	0
3 Month USD LIBOR Interest Rate Swap, strike @ 2.250%, expires 02/05/2018 (Counterparty MSC; receive fixed rate); underlying swap terminates 02/07/2019	USD	145,000,000			1,595
3 Month USD LIBOR Interest Rate Swap, strike @ 3.000%, expires 05/11/2018 (Counterparty CITI; receive fixed rate); underlying swap terminates 05/15/2028	USD	45,000,000			200,619
3 Month USD LIBOR Interest Rate Swap, strike @ 2.980%, expires 05/14/2018 (Counterparty CITI; receive fixed rate); underlying swap terminates 05/16/2028	USD	8,000,000			38,323
3 Month USD LIBOR Interest Rate Swap, strike @ 2.720%, expires 06/14/2018 (Counterparty GS; receive fixed rate); underlying swap terminates 06/18/2028	USD	2,500,000			26,662
Total swaptions purchased (cost—$849,441)					375,694
Total investments before investments sold short (cost—$772,955,938)—173.99%					775,321,043
	Face amount
Investments sold short—(7.86)%
FHLMC TBA 4.000%	$	(500,000	)		(526,665	)
5.500%		(2,000,000	)		(2,205,935	)
FNMA TBA 3.000%		(3,500,000	)		(3,500,820	)
4.000%		(20,100,000	)		(21,120,953	)
GNMA TBA 3.000%		(5,000,000	)		(5,069,409	)
3.500%		(2,500,000	)		(2,596,387	)
Total investments sold short (proceeds—$34,950,023)					(35,020,169	)
Liabilities in excess of other assets—(66.13)%					(294,689,102	)
Net assets—100.00%				$	445,611,772

For a listing of defined portfolio acronyms, counterparty acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes before investments sold short was $773,199,060; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	6,545,350
Gross unrealized depreciation		(4,423,367	)
Net unrealized appreciation	$	2,121,983

24

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

Options written

Notional amount		Call options	Expiration date	Premiums received		Current value			Unrealized appreciation (depreciation)
$	1,500,000	FNMA TBA, 3.500%, strike @ 103.63	08/07/17	$	1,817	$	(130	)	$	1,687
	2,500,000	FNMA TBA, 3.500%, strike @ 103.38	08/07/17		4,785		(822	)		3,963
	3,000,000	FNMA TBA, 3.000%, strike @ 99.94	08/07/17		8,203		(10,685	)		(2,482	)
	2,000,000	FNMA TBA, 3.500%, strike @ 103.18	08/07/17		3,984		(1,496	)		2,488
	2,500,000	FNMA TBA, 3.500%, strike @ 103.25	09/06/17		5,273		(4,775	)		498
	1,500,000	FNMA TBA, 3.500%, strike @ 103.04	09/06/17		2,988		(4,038	)		(1,050	)
	2,500,000	FNMA TBA, 3.500%, strike @ 103.21	09/06/17		4,297		(5,162	)		(865	)
	4,000,000	FNMA TBA, 3.500%, strike @ 103.24	09/06/17		6,562		(6,562	)		—
	1,000,000	FNMA TBA, 3.500%, strike @ 103.27	09/06/17		1,602		(1,602	)		—
	4,000,000	FNMA TBA, 3.500%, strike @ 103.11	08/07/17		5,312		(3,909	)		1,403
	2,000,000	FNMA TBA, 3.500%, strike @ 103.20	08/07/17		3,906		(1,443	)		2,463
	5,000,000	FNMA TBA, 3.500%, strike @ 103.44	08/07/17		11,719		(1,258	)		10,461
				$	60,448	$	(41,882	)	$	18,566
		Put options
$	1,000,000	FNMA TBA, 3.000%, strike @ 98.40	08/07/17	$	1,915	$	(2	)	$	1,913
	2,000,000	FNMA TBA, 3.000%, strike @ 98.91	08/07/17		3,907		(45	)		3,862
	2,000,000	FNMA TBA, 3.500%, strike @ 102.86	09/06/17		7,656		(8,345	)		(689	)
	5,500,000	FNMA TBA, 4.000%, strike @ 104.28	09/06/17		18,046		(3,217	)		14,829
				$	31,524	$	(11,609	)	$	19,915
				$	91,972	$	(53,491	)	$	38,481

Options written activity for the year ended July 31, 2017 was as follows:

	Notional amount			Premiums received
Options outstanding at July 31, 2016	$	63,500,000		$	159,980
Options written		590,000,000			1,506,446
Options terminated in closing purchase transactions		(113,500,000	)		(307,071	)
Options exercised		(175,000,000	)		(530,156	)
Options expired prior to exercise		(323,000,000	)		(737,227	)
Options outstanding at July 31, 2017	$	42,000,000		$	91,972

25

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

Interest rate swap agreements

Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio8	Payments received by the Portfolio8	Upfront payments received (made)		Value			Unrealized appreciation (depreciation)
CITI	USD	20,000	08/14/17	CMM30_FNMA	10 Year USD Constant Maturity Swap Rate plus 0.770%	$	—	$	(5	)	$	(5	)
CITI	USD	20,000	12/20/17	10 Year USD Constant Maturity Swap Rate plus 0.755%	CMM30_FNMA		—		(3	)		(3	)
CITI	USD	15,000	01/22/18	10 Year USD Constant Maturity Swap Rate plus 0.748%	CMM30_FNMA		—		1			1
CITI	USD	15,000	01/26/18	10 Year USD Constant Maturity Swap Rate plus 0.740%	CMM30_FNMA		—		1			1
JPMCB	USD	20,000	01/05/18	10 Year USD Constant Maturity Swap Rate plus 0.749%	CMM30_FNMA		—		2			2
						$	—	$	(4	)	$	(4	)

Centrally cleared interest rate swap agreements

Notional amount (000)		Termination date	Payments made by the Portfolio8			Payments received by the Portfolio8	Value			Unrealized appreciation (depreciation)
USD	20,400	12/21/23		1.750	%	3 Month USD LIBOR	$	339,352		$	(38,022	)
USD	16,000	06/30/25		2.400		3 Month USD LIBOR		(317,158	)		(317,158	)
USD	2,400	12/20/47		2.750		3 Month USD LIBOR		(96,377	)		19,809
							$	(74,183	)	$	(335,371	)

Total return swap agreements³

Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio8			Payments received by the Portfolio8	Upfront payments received (made)		Value			Unrealized depreciation
DB	USD	1,730	01/12/38		6.500	%	3 Month USD LIBOR	$	5,530	$	(5,809	)	$	(279	)
DB	USD	669	01/12/39		5.500		1 Month USD LIBOR		179		(1,862	)		(1,683	)
								$	5,709	$	(7,671	)	$	(1,962	)

26

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	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	$	—	$	18,235,382		$	—	$	18,235,382
Government national mortgage association certificates		—		147,939,454			—		147,939,454
Federal home loan mortgage corporation certificates		—		139,329,139			—		139,329,139
Federal housing administration certificates		—		—			111,973		111,973
Federal national mortgage association certificates		—		281,143,291			—		281,143,291
Collateralized mortgage obligations		—		79,597,729			—		79,597,729
Asset-backed securities		—		65,708,738			—		65,708,738
Commercial mortgage-backed security		—		116,323			—		116,323
Stripped mortgage-backed securities		—		4,897,212			933,062		5,830,274
Short-term US government obligations		—		686,462			—		686,462
Repurchase agreements		—		36,244,000			—		36,244,000
Option purchased		—		2,584			—		2,584
Swaptions purchased		—		375,694			—		375,694
Swap agreements		—		339,356			—		339,356
Total	$	—	$	774,615,364		$	1,045,035	$	775,660,399
Liabilities
Investments sold short		—		(35,020,169	)		—		(35,020,169	)
Options written		—		(53,491	)		—		(53,491	)
Swap agreements		—		(421,214	)		—		(421,214	)
Total	$	—	$	(35,494,874	)	$	—	$	(35,494,874	)

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Level 3 rollforward disclosure

The following is a rollforward of the Portfolio's investments that was valued using unobservable inputs for the year ended July 31, 2017:

	Federal housing administration certificates			Asset-backed securities			Collateralized mortgage obligations			Stripped mortgage- backed securities			Total
Beginning balance	$	212,520		$	1,902,142		$	4,008,064		$	1,740,531		$	7,863,257
Purchases		—			—			—			—			—
Sales/paydown		(105,075	)		(430,649	)		(455,638	)		(416,733	)		(1,408,095	)
Accrued discounts/(premiums)		(54	)		—			30,635			(33,839	)		(3,258	)
Total realized gain/(loss)		(9	)		—			10,582			(207,003	)		(196,430	)
Net change in unrealized appreciation/depreciation		4,591			(747	)		109,461			(149,894	)		(36,589	)
Transfers into Level 3		—			—			—			—			—
Transfers out of Level 3		—			(1,470,746	)		(3,703,104	)		—			(5,173,850	)
Ending balance	$	111,973		$	—		$	—		$	933,062		$	1,045,035

27

PACE Mortgage-Backed Securities Fixed Income Investments

Portfolio of investments—July 31, 2017

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at July 31, 2017 was $(312,846). Transfers out of Level 3 represent the value at the end of the period. At July 31, 2017, securities were transferred from Level 3 to Level 2 as the valuation is based primarily on observable inputs from an established pricing source.

Portfolio footnotes

^†  Amount represents less than 0.005%.

¹  Security, or portion thereof, pledged as collateral for investments sold short, written options, futures and/or swap agreements.

²  Variable or floating rate security. The interest rate shown is the current rate at the period end and changes periodically.

³  Illiquid investment at the period end.

⁴  Security is being fair valued by a valuation committee under the direction of the board of trustees.

⁵  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁶  Step bond—coupon rate increases in increments to maturity. The rate disclosed is the rate at the period end; the maturity date disclosed is the ultimate maturity date.

⁷  Rate shown is the discount rate at the date of purchase unless otherwise noted.

⁸  Payments made or received are based on the notional amount.

See accompanying notes to financial statements.
28

PACE Intermediate Fixed Income Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 1.09% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Bloomberg Barclays US Aggregate Bond Index (the "benchmark") returned -0.51% and the Portfolio's previous benchmark, the Bloomberg Barclays US Intermediate Government/Credit Index returned -0.03%. Over the same period, the Lipper Core Bond Funds category posted a median return of 0.05%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 32. 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 3.

Special notes: Effective December 14, 2016, Barings LLC (Formerly Babson Capital Management) no longer served as a subadvisor for this Portfolio and Blackrock became the sole subadvisor of this Portfolio. Effective March 31, 2017, the Portfolio's benchmark changed from the Bloomberg Barclays US Intermediate Government/Credit Index to the Bloomberg Barclays US Aggregate Bond Index.

Subadvisors' comments (Unaudited)²

Blackrock

Our portion of the Portfolio outperformed the benchmark during the reporting period. The relative outperformance was spread across a diverse set of factors. The largest contributor to results was our overweight to securitized products. This positioning benefited from the broad-based risk-on rally. This led to spread tightening as investors sought stable yielding securities in a more volatile environment. Our securitized product security selection was also additive for returns. We favored single asset/single borrower deals within the commercial mortgage-backed security ("CMBS") sector. We also maintained a diversified mix of sub-sectors within the asset-backed security ("ABS") space, which contributed to returns. In general, however, we grew more cautious as the fiscal year progressed and took profits in certain areas within securitized products. On the credit front, our allocation to high yield corporate bonds and security selection of investment grade corporate bonds also helped to drive our outperformance. A preference for financial issuers and select trades in the telecommunications and energy sectors proved beneficial for our portion of the Portfolio. Another contributing factor was yield curve positioning, which benefited from the steepening of the yield curve as a result of a reflationary environment taking hold in the market in the second half of 2016. In a similar theme, our allocation to Treasury Inflation-Protected

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust – PACE Intermediate Fixed Income Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisors:

BlackRock Financial Management, Inc. ("BlackRock");

Barings LLC (f/k/a Babson Capital Management LLC) ("Barings")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Gina Toth, CFA, Fred Lee, CFA, Diana To and Anthony Karaminas, CFA

BlackRock: Akiva Dickstein and Harrison Segall;

Barings: William Awad, Ronald Desautels, David Nagle, Charles Sanford and Douglas Trevallion

Objective:

Current income, consistent with reasonable stability of principal

Investment process:

BlackRock: The Portfolio invests primarily in fixed income securities. The portfolio buys specific bonds based on its credit analysis and review. The Portfolio strives to add value by controlling the Portfolio's duration within a narrow band relative to the Barclays 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.

(continued on next page)

29

PACE Intermediate Fixed Income Investments

Subadvisors' comments (Unaudited) – continued

Securities ("TIPS") augmented performance, as breakevens widened in concert with the steepening of the yield curve. Our underweight position in investment grade corporate bonds was the largest detractor from performance during the reporting period. Their spreads tightened significantly, compressing their spreads to multi-year tight levels. An underweight to emerging markets debt and security selection within the agency residential mortgage-backed security space also detracted from performance.

A number of derivative instruments were used during the reporting period, primarily to adjust our duration and curve exposure, as well as to hedge risk. We believe that derivatives were beneficial for performance, as they helped us manage our portion of the Portfolio more efficiently. Interest rate swaps are the most common type of swaps and were useful in managing exposure to interest rates by adding duration or subtracting it at particular points on the yield curve. Credit default swaps were used to provide insurance or protection against a particular issuer or basket of issuers from defaulting. Credit default swaps were used as a way to express a negative or positive view on an issuer's or group of issuers' credit strength. Options on interest rate swaps (swaptions) were used to hedge convexity, as well as to take a view on volatility and interest rates. Options on futures were most often used to take a view on volatility and/or interest rates. Foreign exchange options were used to give us the right, but not the obligation, to buy (call) or sell (put) a currency at a specified price for a specified period of time. Foreign exchange forwards were typically used to hedge non-US dollar currency risk back to the US dollar, as well as to implement active currency positions.

Barings LLC (Formerly Babson Capital Management)

During our time managing a portion of the Portfolio, we outperformed the benchmark. Our allocation to investment grade corporate bonds was a strong driver of our outperformance. In particular, our holdings in the banking and finance-other sectors were additive for performance. The finance-other category contains such sub-sectors as asset managers and brokerage companies. An allocation to BB-rated high yield bonds also helped performance during the period.

Elsewhere, the securitized sector contributed to returns. Asset-backed securities (ABS), with allocations to student loans, automobile, timeshares and business franchise receivables, were the largest contributing subsectors. Allocations to residential mortgage-backed securities ("RMBS") and commercial mortgage-backed securities ("CMBS") also added to performance.

The front-end of the yield curve (between three months and three years) steepened substantially after the outcome of the US election in anticipation of fiscal stimulus, increasing budget deficits and potential inflation. In addition, the US Federal Reserve Board has indicated there may be two or three rate hikes in 2017. As a result, our duration was increased from 1.5 years prior to the election to 1.75 years at the end of November 2016. Duration positioning was a slight detractor from performance toward the end of the reporting period as the strategy was in the process of lengthening its duration.

Investment process
(concluded)

Once the Portfolio 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.

Barings: The Portfolio seeks to invest primarily in a diversified portfolio of short-term fixed income securities through an investment process that consists of a top-down, macroeconomic view, coupled with a bottom-up perspective driven by rigorous fundamental credit analysis. The Portfolio seeks to add value through security selection, sector rotation, convexity biases and yield curve positioning. Finally, the Portfolio employs a quantitative rules-based approach to manage duration, which involves limiting the portfolio duration to a range of 0-3 years, driven by the dynamics and shape of the yield curve.

30

PACE Intermediate Fixed Income Investments

Subadvisors' comments (Unaudited) – concluded

Our portion of the Portfolio used derivative instruments for yield curve, duration, and credit risk management. During the period, Treasury futures and options on credit default swaps were used to manage our portion of the Portfolio. Derivatives were a modest contributor to performance.

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.

31

PACE Intermediate Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		0.84	%		1.33	%		3.12	%
Class C2		0.32			0.84			2.61
Class Y3		1.09			1.59			3.38
Class P4		1.09			1.59			3.38
After deducting maximum sales charge
Class A1		(2.98	)		0.56			2.73
Class C2		(0.43	)		0.84			2.61
Bloomberg Barclays US Aggregate Bond Index5,7		(0.51	)		2.02			4.44
Bloomberg Barclays US Intermediate Government/Credit Index6,7		(0.03	)		1.67			3.82
Lipper Core Bond Funds median		0.05			2.06			4.31

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		0.76	%		1.45	%		3.18	%
Class C2		0.25			0.95			2.67
Class Y3		1.02			1.70			3.43
Class P4		0.94			1.70			3.43
After deducting maximum sales charge
Class A1		(2.98	)		0.68			2.79
Class C2		(0.49	)		0.95			2.67

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.03% and 0.93%; Class C—1.53% and 1.43%; Class Y—0.94% and 0.68%; and Class P—0.83% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—0.93%; Class C—1.43%; Class Y—0.68%; and Class P—0.68% The Portfolio has agreed to repay UBS 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 and that UBS AM has not waived the right to do so. 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 AM. Upon termination of the agreement, however, UBS AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 3.75%. Class A shares bear ongoing 12b-1 service fees of 0.25% annually.

²  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 of 0.25% and 0.50% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency). Investors should note that indices do not reflect the deduction of fees and expenses.

⁶  The Bloomberg Barclays US Intermediate Government/Credit Index is an unmanaged subset of the Barclays 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.

⁷  Effective April 1, 2017, the Portfolio's primary benchmark index was changed from the Bloomberg Barclays US Intermediate Government/Credit Index to the Bloomberg Barclays US Aggregate Bond Index.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

32

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 Bloomberg Barclays US Aggregate Bond Index and the Bloomberg Barclays US Intermediate Government/Credit Index over the 10 years ended July 31, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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 Indices are not available for investment and is unmanaged. The comparison is shown for illustration purposes only.

PACE Intermediate Fixed Income Investments

33

PACE Intermediate Fixed Income Investments

Portfolio statistics—July 31, 2017 (unaudited)

Characteristics
Weighted average duration		5.58 yrs.
Weighted average maturity		7.64 yrs.
Average coupon		3.20	%
Top ten holdings (long holdings)1	Percentage of net assets
FHLMC, 3.000% due 02/01/47		6.5	%
US Treasury Note, 1.750% due 06/30/22		5.6
FNMA, 3.500% due 12/01/43		4.8
FNMA, 3.000% due 03/01/47		3.7
US Treasury Bond, 3.000% due 05/15/47		2.7
FHLMC TBA, 3.500%		2.6
US Treasury Bond, 3.750% due 11/15/43		2.5
GNMA TBA, 3.000%		2.5
GNMA, 3.500% due 04/20/47		2.1
FNMA TBA, 3.500%		2.0
Total		35.0	%
Top five issuer breakdown by country or territory of origin1	Percentage of net assets
United States		90.5	%
Japan		1.5
France		1.3
Netherlands		1.2
Venezuela		1.0
Total		95.5	%
Asset allocation1	Percentage of net assets
US government agency mortgage pass-through certificates		41.9	%
Corporate notes		30.4
US government obligations		19.9
Collateralized mortgage obligations		8.3
Asset-backed securities		7.3
Non-US government obligations		0.9
Options, swaptions, futures, swaps and forward foreign currency contracts		0.0	*
Investments sold short		(16.9	)
Cash equivalents and other assets less liabilities		8.2
Total		100.0	%

*  Amount represents less than 0.05%.

¹  The Portfolio is actively managed and its composition will vary over time.

34

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
US government obligations—19.90%
US Treasury Bonds 2.875%, due 11/15/46	$	456,000	$	454,094
3.000%, due 02/15/471		5,949,000		6,074,720
3.000%, due 05/15/47		10,490,000		10,717,423
3.750%, due 11/15/43		8,440,000		9,843,479
4.750%, due 02/15/37		4,280,000		5,672,674
US Treasury Inflation Index Note (TIPS) 0.375%, due 01/15/27		2,052,561		2,026,580
US Treasury Notes 1.375%, due 05/31/21		5,150,000		5,091,259
1.500%, due 05/15/20		755,000		755,413
1.500%, due 05/31/20		700,000		700,218
1.750%, due 10/31/18		160,000		160,913
1.750%, due 06/30/22		22,164,000		22,079,156
1.875%, due 07/31/22		1,650,000		1,653,222
2.000%, due 09/30/20		1,225,000		1,241,748
2.000%, due 12/31/21		860,000		868,096
2.000%, due 06/30/24		4,840,000		4,808,995
2.125%, due 08/31/20		735,000		747,977
2.125%, due 12/31/21		2,380,000		2,415,979
2.375%, due 05/15/27		2,800,000		2,820,891
Total US government obligations (cost—$77,671,952)				78,132,837
Federal home loan bank certificate—0.19%
FHLB 4.000%, due 09/01/28 (cost—$679,081)		680,000		750,860
Federal home loan mortgage corporation certificates—12.45%
FHLMC 3.000%, due 02/01/471		25,558,571		25,628,375
3.500%, due 08/01/421		12,238		12,662
3.500%, due 11/01/42		14,304		14,810
4.000%, due 07/01/46		57,254		60,697
4.000%, due 08/01/46		32,034		33,961
4.000%, due 09/01/46		4,567		4,842
4.000%, due 10/01/46		9,233		9,788
4.000%, due 02/01/47		139,796		148,224
5.000%, due 02/01/42		979,800		1,076,207
5.000%, due 09/01/43		313,409		342,864
6.250%, due 07/15/32		302,000		428,377
6.750%, due 03/15/31		82,000		118,912
FHLMC TBA 2.500%		2,700,000		2,722,323
3.000%		1,800,000		1,852,488
3.500%		800,000		831,016
3.500%		9,045,000		9,302,217
4.000%		4,152,000		4,373,430
4.500%		1,800,000		1,930,235
Total federal home loan mortgage corporation certificates (cost—$48,712,793)				48,891,428

	Face amount		Value
Federal national mortgage association certificates—20.10%
FNMA 2.500%, due 04/01/321	$	6,293,889	$	6,349,753
3.000%, due 01/01/32		990,356		1,021,318
3.000%, due 04/01/32		2,313,328		2,385,672
3.000%, due 03/01/471		14,461,826		14,535,019
3.000%, due 04/01/471		3,323,832		3,336,248
3.500%, due 03/01/321		1,211,227		1,268,064
3.500%, due 04/01/42		4,539		4,694
3.500%, due 12/01/42		8,228		8,510
3.500%, due 07/01/43		12,442		12,838
3.500%, due 11/01/43		16,992		17,572
3.500%, due 12/01/431		18,224,801		18,828,659
3.500%, due 01/01/44		14,176		14,729
3.500%, due 05/01/44		17,175		17,842
3.500%, due 02/01/45		9,172		9,479
3.500%, due 06/01/46		60,149		62,187
3.500%, due 11/01/46		5,846		6,054
3.500%, due 01/01/47		9,301		9,648
4.000%, due 03/01/31		504,223		531,263
4.000%, due 02/01/421		4,322,820		4,565,902
4.000%, due 06/01/431		6,051,206		6,394,215
4.000%, due 10/01/43		218,000		230,367
4.500%, due 04/01/411		4,772,605		5,166,623
5.000%, due 09/01/31		543,936		599,290
5.000%, due 01/01/44		159,827		175,565
5.000%, due 03/01/44		286,476		314,612
FNMA TBA 2.500%		3,100,000		3,125,672
3.000%		553,000		568,856
3.500%		7,730,000		7,958,276
4.000%		880,000		919,718
5.000%		418,000		456,910
Total federal national mortgage association certificates (cost—$78,943,153)				78,895,555
Government national mortgage association certificates—9.17%
GNMA 3.500%, due 01/20/431		5,442,545		5,678,684
3.500%, due 04/20/47		8,070,047		8,392,585
4.000%, due 08/20/44		1,154,135		1,221,444
4.000%, due 06/20/47		624,656		659,982
4.500%, due 07/20/40		14,022		15,082
4.500%, due 08/20/40		13,933		14,989
4.500%, due 10/20/40		23,665		25,430
4.500%, due 06/20/44		328,521		349,347
GNMA TBA 3.000%		9,600,000		9,739,125
4.000%		3,071,000		3,227,429
4.000%1		3,071,000		3,229,948
4.500%		1,999,000		2,122,844
5.000%		1,200,000		1,309,313
Total government national mortgage association certificates (cost—$35,959,736)				35,986,202

35

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Collateralized mortgage obligations—8.29%
Banc of America Commercial Mortgage Trust, Series 2008-1, Class A4 6.266%, due 02/10/512	$	110,709	$	111,125
Bank, Series 2017-BNK4, Class A4 3.625%, due 05/15/50		800,000		834,880
BHMS Mortgage Trust, Series 2014-ATLS, Class AFL 2.551%, due 07/05/332,3		965,000		964,999
BXHTL Mortgage Trust, Series 2015-JWRZ, Class A 2.456%, due 05/15/292,3		1,490,000		1,491,858
CD Mortgage Trust, Series 2017-CD3, Class A4 3.631%, due 02/10/50		545,000		571,111
Commercial Mortgage Pass-Through Certificates, Series 2006-GG7, Class AM 5.759%, due 07/10/382		87,159		87,061
Series 2013-GAM, Class A2 3.367%, due 02/10/283		1,090,000		1,115,215
Series 2014-CR16, Class A4 4.051%, due 04/10/47		145,000		155,236
Series 2014-PAT, Class A 1.959%, due 08/13/272,3		915,000		915,287
Series 2015-CR25, Class B 4.546%, due 08/10/482		320,000		339,515
Series 2015-RUM, Class B 3.309%, due 07/15/302,3		775,000		761,229
Core Industrial Trust, Series 2015-TEXW, Class A 3.077%, due 02/10/343		1,735,000		1,782,454
FHLMC Multifamily Structured Pass-Through Certificates, Series K038, Class X1, IO 1.181%, due 03/25/242		2,638,686		168,030
FHLMC REMIC, Trust 2626, Class A 4.000%, due 06/15/33		147,609		156,658
Trust 3990, Class VA 3.500%, due 01/15/25		265,214		274,966
Trust 4213, Class VE 3.500%, due 06/15/26		252,891		264,114
Trust 4248, Class FL 1.676%, due 05/15/412		328,734		330,168
Trust 4316, Class XZ 4.500%, due 03/15/44		354,260		400,648
Trust 4323, Class CA 4.000%, due 03/15/40		286,611		299,740
Trust 4325, Class MA 4.000%, due 09/15/39		861,980		903,802
Trust 4328, Class DA 4.000%, due 01/15/36		872,668		907,863
Trust 4336, Class MA 4.000%, due 01/15/40		763,164		796,448
Trust 4443, Class BA 3.500%, due 04/15/41		126,244		130,666
Trust 4447, Class PA 3.000%, due 12/15/44		109,582		112,765
Trust 4606, Class FB 1.726%, due 08/15/462		428,152		430,566

	Face amount		Value
Collateralized mortgage obligations—(continued)
FHLMC Structured Agency Credit Risk, Series 2016-DNA1, Class M1 2.682%, due 07/25/282	$	92,080	$	92,429
FNMA Connecticut Avenue Securities, Series 2015-C04, Class 1M1 2.832%, due 04/25/282		28,166		28,199
Series 2016-C04, Class 1M1 2.682%, due 01/25/292		367,306		372,184
Series 2016-C05, Class 2M1 2.582%, due 01/25/292		336,905		340,209
Series 2016-C06, Class 1M1 2.532%, due 04/25/292		191,362		194,245
FNMA REMIC, Trust 2005-109, Class PV 6.000%, due 10/25/32		56,212		56,739
Trust 2011-8, Class ZA 4.000%, due 02/25/41		2,151,973		2,270,689
Trust 2013-112, Class HQ 4.000%, due 11/25/43		91,396		96,454
Trust 2014-12, Class GV 3.500%, due 03/25/27		155,684		163,000
Trust 2014-48, Class AB 4.000%, due 10/25/40		227,164		237,770
Trust 2015-20, Class EV 3.500%, due 07/25/26		287,902		301,544
Trust 2015-58, Class JP 2.500%, due 03/25/37		174,456		175,952
Trust 2015-62, Class VA 4.000%, due 10/25/26		85,117		91,574
Trust 2016-48, Class UF 1.632%, due 08/25/462		788,491		790,525
Trust 2016-62, Class FC 1.732%, due 09/25/462		329,504		333,171
Trust 2016-74, Class GF 1.732%, due 10/25/462		424,751		429,251
FREMF Mortgage Trust, Series 2013-K712, Class B 3.365%, due 05/25/452,3		110,000		112,389
GAHR Commericial Mortgage Trust, Series 2015-NRF, Class DFX 3.382%, due 12/15/342,3		1,025,000		1,040,118
GNMA, Trust 2014-131, Class BW 2.923%, due 05/20/412		94,262		96,388
Trust 2015-3, Class ZD 4.000%, due 01/20/45		635,368		691,003
GS Mortgage Securities Trust, Series 2015-GS1, Class XA, IO 0.829%, due 11/10/482		7,535,279		403,339
JP Morgan Mortgage Trust, Series 2017-1, Class A4 3.500%, due 01/25/472,3		963,699		988,808
Series 2017-2, Class A6 3.000%, due 05/25/472,3		711,401		718,954
JPMBB Commercial Mortgage Securities Trust, Series 2014-C22, Class XA, IO 0.933%, due 09/15/472		5,105,051		253,310

36

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Collateralized mortgage obligations—(concluded)
Madison Avenue Trust, Series 2017 330M, Class A 1.000%, due 08/15/342,3	$	350,000	$	355,249
Merrill Lynch Mortgage Trust, Series 2005-MKB2, Class D 5.446%, due 09/12/422		650,122		685,928
ML-CFC Commercial Mortgage Trust, Series 2007-9, Class AM 5.856%, due 09/12/492		350,000		351,372
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C13, Class C 4.890%, due 11/15/462		205,000		216,859
Series 2015-C24, Class A4 3.732%, due 05/15/48		1,101,000		1,156,922
Series 2015-C25, Class A5 3.635%, due 10/15/48		725,000		757,477
Morgan Stanley Capital I Trust, Series 2015-MS1, Class A4 3.779%, due 05/15/482		520,000		548,352
Natixis Commercial Mortgage Securities Trust, Series 2017-75B, Class A 3.858%, due 04/09/373		300,000		311,494
New Residential Mortgage Loan Trust, Series 2016-4A, Class A1 3.750%, due 11/25/562,3		179,778		186,160
SFAVE Commercial Mortgage Securities Trust, Series 2015-5AVE, Class A2B 4.144%, due 01/05/432,3		540,000		553,225
Shellpoint Co-Originator Trust, Series 2016-1, Class 2A3 3.000%, due 10/25/312,3		361,965		364,991
Velocity Commercial Capital Loan Trust, Series 2016-2, Class AFX 2.997%, due 10/25/462		155,263		155,362
Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class AM 5.996%, due 02/15/512		247,201		246,929
Wells Fargo Commercial Mortgage Trust, Series 2015-C27, Class XA, IO 0.979%, due 02/15/482		12,422,628		677,634
WF-RBS Commercial Mortgage Trust, Series 2011-C3, Class A3FL 2.122%, due 03/15/442,3		1,380,295		1,384,575
Total collateralized mortgage obligations (cost—$32,672,559)				32,537,177
Asset-backed securities—7.35%
ALM VIII Ltd., Series 2013-8A, Class A1R 2.794%, due 10/15/282,3		510,000		514,761
American Homes 4 Rent, Series 2014-SFR3, Class A 3.678%, due 12/17/363		481,629		506,476
AmeriCredit Automobile Receivables Trust, Series 2014-1, Class D 2.540%, due 06/08/20		130,000		130,883
Series 2016-2, Class A3 1.600%, due 11/09/20		250,000		250,058

	Face amount		Value
Asset-backed securities—(continued)
Avery Point V CLO Ltd., Series 2014-5A, Class A 2.764%, due 07/17/262,3	$	250,000	$	249,999
B2R Mortgage Trust, Series 2015-2, Class A 3.336%, due 11/15/483		603,773		611,701
Bear Stearns Asset Backed Securities I Trust, Series 2005-HE12, Class M1 1.712%, due 12/25/352		90,340		90,397
BlueMountain CLO Ltd., Series 2015-2A, Class A1 2.734%, due 07/18/272,3		280,000		281,162
Carlyle Global Market Strategies CLO Ltd., Series 2013-4A, Class A1 2.774%, due 10/15/252,3		250,000		251,029
Citibank Credit Card Issuance Trust, Series 2017-A5, Class A5 1.847%, due 04/22/262		650,000		655,017
Series 2017-A6, Class A6 1.994%, due 05/14/292		540,000		543,397
Credit Acceptance Auto Loan Trust, Series 2014-2A, Class A 1.880%, due 03/15/223		58,825		58,827
Series 2015-2A, Class B 3.040%, due 08/15/233		840,000		845,515
Series 2016-2A, Class A 2.420%, due 11/15/233		650,000		652,052
Credit Suisse ABS Repackaging Trust, Series 2013-A, Class B 2.500%, due 01/25/303		79,768		75,096
Credit Suisse Seasoned Loan Trust, Series 2006-1, Class A 1.472%, due 10/25/342,3		110,437		109,695
DCP Rights LLC, Series 2014-1A, Class A 5.463%, due 10/25/443		1,729,041		1,741,172
Diamond Resorts Owner Trust, Series 2014-1, Class B 2.980%, due 05/20/273		61,389		61,042
Drive Auto Receivables Trust, Series 2016-BA, Class B 2.560%, due 06/15/203		100,000		100,277
Elara HGV Timeshare Issuer LLC, Series 2016-A, Class A 2.730%, due 04/25/283		176,249		172,924
Enterprise Fleet Financing LLC, Series 2016-1, Class A2 1.830%, due 09/20/213		169,267		169,268
First Franklin Mortgage Loan Trust, Series 2004-FFH4, Class M5 2.807%, due 01/25/352		193,344		194,005
Ford Credit Floorplan Master Owner Trust, Series 2014-2, Class A 1.729%, due 02/15/212		2,160,000		2,168,963
Fremont Home Loan Trust, Series 2005-2, Class M2 1.952%, due 06/25/352		61,935		61,973

37

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Asset-backed securities—(continued)
Galaxy XX CLO Ltd., Series 2015-20A, Class A 2.757%, due 07/20/272,3	$	280,000	$	280,124
GoldenTree Loan Opportunities VII Ltd., Series 2013-7A, Class A 2.464%, due 04/25/252,3		281,617		281,616
Greystone Commercial Real Estate Notes, Series 2017-FL1A, Class A 2.776%, due 03/15/272,3		330,000		330,131
HSBC Home Equity Loan Trust USA, Series 2007-3, Class A4 2.728%, due 11/20/362		9,970		9,999
JP Morgan Mortgage Acquisition Corp., Series 2005-FRE1, Class A2V2 1.452%, due 10/25/352		47,723		47,689
LCM XXIII Ltd., Series 23A, Class A1 2.707%, due 10/20/292,3		250,000		251,915
Lehman XS Trust, Series 2005-6, Class 1A1 1.752%, due 11/25/352		238,793		158,598
Mercedes-Benz Master Owner Trust, Series 2016-AA, Class A 1.806%, due 05/15/202,3		896,000		898,991
NextGear Floorplan Master Owner Trust, Series 2014-1A, Class A 1.920%, due 10/15/193		800,000		800,521
NovaStar Mortgage Funding Trust, Series 2005-3, Class A2D 1.602%, due 01/25/362		13,111		13,117
OneMain Financial Issuance Trust, Series 2014-1, Class A 2.430%, due 06/18/243		7,116		7,118
Series 2015-1A, Class A 3.190%, due 03/18/263		1,655,000		1,670,849
Series 2015-2A, Class A 2.570%, due 07/18/253		362,449		362,829
Option One Mortgage Loan Trust Asset-Backed Certificates, Series 2005-5, Class A3 1.442%, due 12/25/352		73,803		73,709
Ownit Mortgage Loan Trust, Series 2005-2, Class M4 2.162%, due 03/25/362		18,260		18,302
PFS Financing Corp., Series 2016-1A, Class A 2.426%, due 02/18/202,3		1,095,000		1,098,802
Series 2016-BA, Class A 1.870%, due 10/15/213		160,000		159,378
Series 2017-AA, Class A 1.806%, due 03/15/212,3		2,390,000		2,391,555
Popular ABS Mortgage Pass-Through Trust, Series 2006-B, Class A3 1.512%, due 05/25/362		113,859		113,063
Prestige Auto Receivables Trust, Series 2015-1, Class B 2.040%, due 04/15/213		180,000		180,247

	Face amount		Value
Asset-backed securities—(concluded)
Progress Residential Trust, Series 2015-SFR2, Class A 2.740%, due 06/12/323	$	1,040,388	$	1,048,177
RAAC Trust, Series 2006-RP2, Class A 1.482%, due 02/25/372,3		80,572		80,134
RASC Trust, Series 2005-AHL3, Class A2 1.472%, due 11/25/352		18,126		18,122
Santander Drive Auto Receivables Trust, Series 2014-4, Class C 2.600%, due 11/16/20		725,337		728,377
Series 2016-1, Class A3 1.620%, due 03/16/20		1,280,000		1,280,398
Series 2016-2, Class A3 1.560%, due 05/15/20		190,000		190,000
SMB Private Education Loan Trust, Series 2014-A, Class A2B 2.376%, due 05/15/262,3		500,732		507,832
Series 2015-C, Class B 3.500%, due 09/15/433		630,000		622,548
Series 2016-A, Class A1 1.926%, due 05/15/232,3		281,707		282,030
Series 2016-A, Class A2A 2.700%, due 05/15/313		110,000		110,702
Series 2016-C, Class A2A 2.340%, due 09/15/343		570,000		564,727
SoFi Professional Loan Program LLC, Series 2014-A, Class A2 3.020%, due 10/25/273		28,055		28,512
Series 2015-C, Class A2 2.510%, due 08/25/333		553,701		555,403
Series 2016-A, Class A1 2.982%, due 08/25/362,3		165,181		170,610
Series 2016-B, Class A1 2.432%, due 06/25/332,3		168,044		170,762
Series 2016-B, Class A2A 1.680%, due 03/25/313		100,776		100,813
Series 2016-C, Class A2A 1.480%, due 05/26/313		356,890		356,170
Specialty Underwriting & Residential Finance Trust, Series 2005-AB2, Class M1 1.682%, due 06/25/362		38,010		37,892
SpringCastle America Funding LLC, Series 2016-AA, Class A 3.050%, due 04/25/293		309,870		311,759
Synchrony Credit Card Master Note Trust, Series 2016-1, Class A 2.040%, due 03/15/22		1,050,000		1,054,830
Tricon American Homes, Series 2015-SFR1, Class A 2.476%, due 05/17/322,3		898,763		903,684
Westgate Resorts LLC, Series 2014-1A, Class A 2.150%, due 12/20/263		87,064		86,873
Total asset-backed securities (cost—$28,696,986)				28,854,597

38

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—30.40%
Aerospace & defense—0.48%
BAE Systems Holdings, Inc. 2.850%, due 12/15/203	$	50,000	$	50,775
3.850%, due 12/15/253		20,000		20,902
General Dynamics Corp. 2.125%, due 08/15/26		40,000		37,744
Lockheed Martin Corp. 3.350%, due 09/15/21		170,000		177,829
3.550%, due 01/15/26		5,000		5,215
4.700%, due 05/15/46		130,000		146,221
Northrop Grumman Corp. 3.250%, due 08/01/23		160,000		166,286
Rockwell Collins, Inc. 2.800%, due 03/15/22		245,000		248,381
United Technologies Corp. 1.778%, due 05/04/184		599,000		599,914
1.900%, due 05/04/20		345,000		346,194
3.125%, due 05/04/27		50,000		50,618
3.750%, due 11/01/46		50,000		49,090
				1,899,169
Airlines—0.02%
American Airlines Pass-Through Trust 2014-1, Class B 4.375%, due 10/01/22		15,582		15,966
American Airlines Pass-Through Trust 2015-1, Class A 3.375%, due 05/01/27		72,567		73,111
				89,077
Auto & truck—0.02%
Delphi Automotive PLC 4.400%, due 10/01/46		26,000		26,215
Delphi Corp. 4.150%, due 03/15/24		43,000		45,470
				71,685
Banking-non-US—1.73%
Bancolombia SA 5.950%, due 06/03/215		220,000		242,275
BNP Paribas SA 4.625%, due 03/13/273		280,000		297,112
Citizens Financial Group, Inc. 2.375%, due 07/28/21		15,000		14,946
Credit Agricole SA 3.375%, due 01/10/223		320,000		328,068
Credit Suisse Group Funding Guernsey Ltd. 2.750%, due 03/26/20		345,000		350,146
3.450%, due 04/16/21		250,000		257,908
Credit Suisse New York 1.700%, due 04/27/18		395,000		395,083
Discover Financial Services 3.750%, due 03/04/25		35,000		35,158
4.100%, due 02/09/27		55,000		55,682
HSBC Holdings PLC 3.262%, due 03/13/232		565,000		578,619
3.400%, due 03/08/21		320,000		330,889
4.375%, due 11/23/26		200,000		210,172

	Face amount		Value
Corporate notes—(continued)
Banking-non-US—(concluded)
ING Bank N.V. 4.125%, due 11/21/232,6	$	210,000	$	214,637
Intesa Sanpaolo SpA 3.125%, due 07/14/223		255,000		256,698
3.875%, due 07/14/273		370,000		372,667
Kreditanstalt fuer Wiederaufbau 1.500%, due 02/06/19		509,000		509,326
Lloyds Banking Group PLC 3.000%, due 01/11/22		200,000		202,140
3.750%, due 01/11/27		200,000		203,192
Macquarie Bank Ltd. 2.850%, due 01/15/213		75,000		75,892
Mitsubishi UFJ Financial Group, Inc. 2.998%, due 02/22/22		75,000		76,396
Mitsubishi UFJ Trust & Banking Corp. 2.650%, due 10/19/203		540,000		546,052
Mizuho Financial Group, Inc. 2.953%, due 02/28/22		300,000		302,872
National Australia Bank Ltd. MTN 2.125%, due 05/22/20		250,000		250,700
Royal Bank of Canada GMTN 2.500%, due 01/19/21		240,000		242,984
Santander UK Group Holdings PLC 2.875%, due 10/16/20		245,000		248,774
2.875%, due 08/05/21		201,000		201,780
				6,800,168
Banking-US—4.71%
Aviation Capital Group Corp. 2.875%, due 09/17/183		630,000		636,667
Bank of America Corp. 2.000%, due 01/11/18		178,000		178,349
2.250%, due 04/21/20		677,000		679,902
2.881%, due 04/24/232		450,000		452,361
3.875%, due 08/01/25		660,000		687,954
4.000%, due 01/22/25		460,000		474,047
4.244%, due 04/24/382		70,000		72,758
Bank of America Corp. GMTN 3.300%, due 01/11/23		320,000		328,371
Bank of America Corp. MTN 1.950%, due 05/12/18		137,000		137,232
2.151%, due 11/09/20		850,000		849,320
2.357%, due 03/22/182		770,000		774,550
3.824%, due 01/20/282		460,000		469,738
4.443%, due 01/20/482		70,000		74,541
6.875%, due 04/25/18		63,000		65,316
Branch Banking & Trust Co. 3.625%, due 09/16/25		250,000		260,865
Capital One Bank USA N.A. 2.250%, due 02/13/19		515,000		516,663
Capital One Financial Corp. 2.500%, due 05/12/20		280,000		281,978
3.200%, due 02/05/25		210,000		208,572
3.750%, due 07/28/26		110,000		108,028
Capital One N.A. 2.350%, due 01/31/20		330,000		331,513
2.950%, due 07/23/21		260,000		264,406

39

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(continued)
Banking-US—(concluded)
CIT Group, Inc. 3.875%, due 02/19/19	$	295,000	$	302,006
5.500%, due 02/15/193		52,000		54,564
Discover Bank 2.600%, due 11/13/18		330,000		332,926
3.100%, due 06/04/20		250,000		256,092
3.450%, due 07/27/26		250,000		245,601
4.200%, due 08/08/23		270,000		287,048
Fifth Third Bank MTN 2.150%, due 08/20/18		206,000		206,834
Goldman Sachs Group, Inc. 2.372%, due 04/30/182		530,000		533,687
2.375%, due 01/22/18		591,000		592,994
2.550%, due 10/23/19		231,000		234,038
2.600%, due 04/23/20		349,000		353,392
3.750%, due 05/22/25		75,000		77,142
4.250%, due 10/21/25		65,000		67,660
HSBC USA, Inc. 1.700%, due 03/05/18		100,000		100,064
JPMorgan Chase & Co. 2.214%, due 01/25/182		525,000		527,035
2.700%, due 05/18/23		150,000		149,571
2.972%, due 01/15/23		313,000		317,413
3.200%, due 06/15/26		150,000		149,093
3.250%, due 09/23/22		105,000		108,417
3.782%, due 02/01/282		1,000,000		1,026,673
4.250%, due 10/01/27		163,000		172,210
KeyCorp MTN 2.900%, due 09/15/20		100,000		102,145
Northern Trust Corp. 4.600%, due 10/01/262,7		119,000		120,190
Santander Holdings USA, Inc. 3.700%, due 03/28/223		189,000		191,920
State Street Corp. 2.550%, due 08/18/20		195,000		198,967
5.250%, due 09/15/202,7		147,000		154,310
The Bank of New York Mellon Corp. 2.050%, due 05/03/21		175,000		174,152
2.800%, due 05/04/26		90,000		88,652
3.000%, due 02/24/25		160,000		160,325
4.625%, due 09/20/262,7		195,000		198,217
Wells Fargo & Co. 1.943%, due 04/23/182		685,000		687,756
2.100%, due 07/26/21		80,000		79,134
3.000%, due 10/23/26		720,000		706,158
Wells Fargo & Co. GMTN 4.300%, due 07/22/27		555,000		589,021
Wells Fargo & Co. MTN 2.625%, due 07/22/22		650,000		651,227
3.584%, due 05/22/282		425,000		431,907
4.750%, due 12/07/46		5,000		5,415
				18,487,087
Beverages—0.28%
Anheuser-Busch InBev Finance, Inc. 4.700%, due 02/01/36		360,000		398,473
4.900%, due 02/01/46		230,000		258,735

	Face amount		Value
Corporate notes—(continued)
Beverages—(concluded)
PepsiCo, Inc. 3.450%, due 10/06/46	$	80,000	$	75,797
The Coca-Cola Co. 1.875%, due 10/27/20		350,000		350,957
				1,083,962
Biotechnology—0.47%
Amgen, Inc. 2.200%, due 05/11/20		100,000		100,888
3.125%, due 05/01/25		40,000		40,441
4.400%, due 05/01/45		120,000		126,136
4.563%, due 06/15/48		26,000		27,828
4.663%, due 06/15/51		73,000		79,407
Celgene Corp. 2.250%, due 05/15/19		50,000		50,412
2.875%, due 08/15/20		605,000		620,163
3.250%, due 08/15/22		90,000		93,024
Gilead Sciences, Inc. 2.500%, due 09/01/23		30,000		29,933
3.250%, due 09/01/22		80,000		83,441
3.700%, due 04/01/24		185,000		195,574
4.150%, due 03/01/47		400,000		403,952
				1,851,199
Building products—0.12%
Holcim US Finance Sarl & Cie SCS 6.000%, due 12/30/193		415,000		449,939
Cable—0.10%
CCO Holdings LLC/CCO Holdings Capital Corp. 5.750%, due 02/15/263		350,000		376,250
Chemicals—0.22%
E.I. du Pont de Nemours & Co. 2.200%, due 05/01/20		75,000		75,580
Eastman Chemical Co. 3.800%, due 03/15/25		42,000		43,288
LYB International Finance BV 4.875%, due 03/15/44		80,000		86,844
LyondellBasell Industries N.V. 5.000%, due 04/15/19		243,000		253,733
Monsanto Co. 3.950%, due 04/15/45		80,000		76,844
RPM International, Inc. 6.125%, due 10/15/19		259,000		280,581
The Dow Chemical Co. 8.550%, due 05/15/19		55,000		61,431
				878,301
Commercial services—0.03%
Duke University 4.077%, due 10/01/48		91,000		99,161
Republic Services, Inc. 2.900%, due 07/01/26		35,000		34,384
				133,545

40

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(continued)
Communications equipment—0.50%
Apple, Inc. 2.450%, due 08/04/26	$	460,000	$	442,675
2.850%, due 05/06/21		20,000		20,608
3.350%, due 02/09/27		195,000		200,349
3.850%, due 08/04/46		500,000		499,353
4.500%, due 02/23/36		150,000		169,509
QUALCOMM, Inc. 2.100%, due 05/20/20		355,000		357,842
3.450%, due 05/20/25		268,000		276,902
				1,967,238
Computers—0.15%
Hewlett Packard Enterprise Co. 2.450%, due 10/05/17		123,000		123,212
2.850%, due 10/05/18		250,000		253,019
International Business Machines Corp. 3.450%, due 02/19/26		212,000		217,593
				593,824
Containers & packaging—0.08%
WestRock RKT Co. 4.900%, due 03/01/22		293,000		320,053
Diversified financial services—0.46%
Air Lease Corp. 3.625%, due 04/01/27		30,000		30,094
Fidelity National Information Services, Inc. 3.500%, due 04/15/23		69,000		71,802
5.000%, due 10/15/25		15,000		16,940
GE Capital International Funding Co. 2.342%, due 11/15/20		384,000		388,091
4.418%, due 11/15/35		200,000		216,795
Intercontinental Exchange, Inc. 3.750%, due 12/01/25		100,000		105,400
Nomura Holdings, Inc. GMTN 2.750%, due 03/19/19		80,000		80,957
ORIX Corp. 2.900%, due 07/18/22		110,000		110,770
S&P Global, Inc. 3.300%, due 08/14/20		370,000		380,632
Visa, Inc. 3.150%, due 12/14/25		45,000		46,075
4.150%, due 12/14/35		210,000		228,409
4.300%, due 12/14/45		100,000		109,861
				1,785,826
Electric utilities—0.59%
Alabama Power Co. 5.200%, due 06/01/41		35,000		40,456
Ameren Corp. 2.700%, due 11/15/20		220,000		223,452
Black Hills Corp. 3.150%, due 01/15/27		30,000		29,210
Dominion Energy, Inc. 2.579%, due 07/01/20		60,000		60,580

	Face amount		Value
Corporate notes—(continued)
Electric utilities—(concluded)
DTE Energy Co. 3.300%, due 06/15/22	$	150,000	$	154,267
Duke Energy Carolinas LLC 2.950%, due 12/01/26		185,000		185,092
Duke Energy Corp. 1.800%, due 09/01/21		660,000		649,148
2.650%, due 09/01/26		410,000		396,814
3.550%, due 09/15/21		230,000		240,064
3.750%, due 04/15/24		110,000		115,994
4.800%, due 12/15/45		190,000		211,946
				2,307,023
Electric-generation—0.02%
Emera US Finance LP 2.150%, due 06/15/19		50,000		50,122
3.550%, due 06/15/26		40,000		40,563
				90,685
Electric-integrated—2.23%
CMS Energy Corp. 3.000%, due 05/15/26		30,000		29,522
Dominion Energy, Inc. 1.500%, due 09/30/183		355,000		352,812
Eaton Corp. 1.500%, due 11/02/17		605,000		605,044
2.750%, due 11/02/22		605,000		612,544
EDP Finance BV 4.125%, due 01/15/203		460,000		476,440
4.900%, due 10/01/193		63,000		66,167
Enel Finance International N.V. 2.875%, due 05/25/223		360,000		363,928
Entergy Corp. 2.950%, due 09/01/26		45,000		43,723
4.000%, due 07/15/22		195,000		207,027
Entergy Texas, Inc. 2.550%, due 06/01/21		45,000		44,938
7.125%, due 02/01/19		340,000		365,308
Exelon Corp. 2.450%, due 04/15/21		5,000		4,994
2.850%, due 06/15/20		70,000		71,385
3.400%, due 04/15/26		270,000		273,441
4.450%, due 04/15/46		120,000		124,620
Georgia Power Co. 3.250%, due 03/30/27		30,000		30,053
Israel Electric Corp. Ltd. 7.250%, due 01/15/193		220,000		235,125
Jabil, Inc. 8.250%, due 03/15/18		620,000		644,025
Majapahit Holding BV 7.750%, due 01/20/203		210,000		235,473
NextEra Energy Capital Holdings, Inc. 3.550%, due 05/01/27		395,000		407,167
Northern States Power Co. 3.400%, due 08/15/42		260,000		247,425

41

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(continued)
Electric-integrated—(concluded)
Pacificorp 5.250%, due 06/15/35	$	400,000	$	471,518
5.500%, due 01/15/19		486,000		511,735
5.750%, due 04/01/37		275,000		346,441
PPL Capital Funding, Inc. 3.100%, due 05/15/26		520,000		514,079
Puget Energy, Inc. 5.625%, due 07/15/22		450,000		505,247
6.000%, due 09/01/21		75,000		84,872
Tyco Electronics Group SA 3.450%, due 08/01/24		30,000		31,063
Virginia Electric & Power Co. 3.100%, due 05/15/25		185,000		186,274
3.150%, due 01/15/26		30,000		30,460
3.500%, due 03/15/27		460,000		475,387
WEC Energy Group, Inc. 2.450%, due 06/15/20		170,000		172,318
				8,770,555
Electric/gas—0.07%
MPLX LP 4.125%, due 03/01/27		100,000		101,949
5.200%, due 03/01/47		160,000		165,543
				267,492
Electronic equipment & instruments—0.17%
Avnet, Inc. 4.625%, due 04/15/26		30,000		31,119
Honeywell International, Inc. 1.400%, due 10/30/19		330,000		328,339
1.850%, due 11/01/21		80,000		79,155
2.500%, due 11/01/26		10,000		9,627
Thermo Fisher Scientific, Inc. 2.950%, due 09/19/26		25,000		24,530
3.000%, due 04/15/23		30,000		30,520
3.600%, due 08/15/21		150,000		156,564
				659,854
Finance-captive automotive—1.19%
CDP Financial, Inc. 4.400%, due 11/25/193		860,000		907,966
Ford Motor Credit Co. LLC 5.000%, due 05/15/18		730,000		748,167
6.625%, due 08/15/17		220,000		220,356
General Motors Financial Co., Inc. 2.400%, due 05/09/19		105,000		105,411
3.200%, due 07/13/20		240,000		245,585
3.450%, due 01/14/22		180,000		183,583
4.350%, due 01/17/27		260,000		264,337
Hyundai Capital America 2.400%, due 10/30/183		105,000		105,358
2.500%, due 03/18/193		30,000		30,128
2.550%, due 02/06/193		550,000		552,382
3.000%, due 10/30/203		285,000		288,317
Lazard Group LLC 4.250%, due 11/14/20		300,000		318,506

	Face amount		Value
Corporate notes—(continued)
Finance-captive automotive—(concluded)
Nissan Motor Acceptance Corp. 1.900%, due 09/14/213	$	290,000	$	284,159
Synchrony Financial 2.600%, due 01/15/19		120,000		120,912
The Charles Schwab Corp. 4.625%, due 03/01/222,7		295,000		301,428
				4,676,595
Finance-other—0.14%
International Lease Finance Corp. 3.875%, due 04/15/18		550,000		557,279
Financial services—2.96%
Ally Financial, Inc. 3.250%, due 02/13/18		690,000		693,443
Barclays Bank PLC 5.140%, due 10/14/20		140,000		150,228
Barclays PLC 2.750%, due 11/08/19		200,000		202,422
4.375%, due 01/12/26		205,000		214,633
5.200%, due 05/12/26		285,000		303,956
Citigroup, Inc. 1.800%, due 02/05/18		700,000		700,528
2.400%, due 02/18/20		170,000		171,397
2.650%, due 10/26/20		210,000		212,474
2.876%, due 07/24/232		200,000		200,370
Citizens Bank N.A./Providence RI 2.200%, due 05/26/20		250,000		250,284
Corp. Financiera de Desarrollo SA 4.750%, due 07/15/253		325,000		348,692
Doric Nimrod Air Alpha Ltd. 2013-1 Pass-Through Trust 5.250%, due 05/30/233		267,967		280,026
Export Development Canada 0.875%, due 08/27/183		275,000		273,419
JPMorgan Chase & Co. 1.700%, due 03/01/18		835,000		835,514
2.200%, due 10/22/19		410,000		412,610
2.250%, due 01/23/20		215,000		216,619
2.543%, due 10/24/232		135,000		137,616
2.750%, due 06/23/20		720,000		734,015
Morgan Stanley 1.875%, due 01/05/18		170,000		170,173
2.125%, due 04/25/18		645,000		647,067
2.500%, due 01/24/19		200,000		201,870
2.800%, due 06/16/20		630,000		641,351
3.625%, due 01/20/27		100,000		101,177
3.950%, due 04/23/27		205,000		207,903
6.625%, due 04/01/18		760,000		784,211
Morgan Stanley MTN 2.200%, due 12/07/18		125,000		125,675
2.625%, due 11/17/21		190,000		190,718
Sumitomo Mitsui Financial Group, Inc. 2.058%, due 07/14/21		277,000		273,083
The Bank of New York Mellon Corp. MTN 3.442%, due 02/07/282		394,000		404,443

42

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(continued)
Financial services—(concluded)
The Hartford Financial Services Group, Inc. 5.125%, due 04/15/22	$	284,000	$	316,363
8.125%, due 06/15/382		347,000		363,482
US Bancorp 3.150%, due 04/27/27		280,000		282,089
US Bancorp MTN 1.950%, due 11/15/18		560,000		563,044
				11,610,895
Food & drug retailing—0.01%
CVS Health Corp. 3.875%, due 07/20/25		52,000		54,548
Food processors/beverage/bottling—0.07%
Ecolab, Inc. 2.000%, due 01/14/19		270,000		271,391
Food products—0.47%
Danone SA 2.077%, due 11/02/213		575,000		568,485
2.589%, due 11/02/233		450,000		444,538
Kraft Heinz Foods Co. 3.000%, due 06/01/26		100,000		96,336
4.375%, due 06/01/46		150,000		145,988
Post Holdings, Inc. 5.000%, due 08/15/263		310,000		318,137
Sysco Corp. 2.600%, due 10/01/20		250,000		253,665
				1,827,149
Food/beverage—0.19%
Molson Coors Brewing Co. 1.900%, due 03/15/193		170,000		169,982
2.250%, due 03/15/203		100,000		100,318
Unilever Capital Corp. 1.800%, due 05/05/20		485,000		485,107
				755,407
Gaming—0.17%
Scientific Games International, Inc. 7.000%, due 01/01/223		620,000		660,300
Gas pipelines—0.18%
Kinder Morgan, Inc. 3.050%, due 12/01/19		70,000		71,278
4.300%, due 06/01/25		90,000		94,116
5.050%, due 02/15/46		450,000		451,580
5.550%, due 06/01/45		80,000		85,855
				702,829
Health care equipment & supplies—0.04%
Becton Dickinson and Co. 2.675%, due 12/15/19		48,000		48,754
2.894%, due 06/06/22		81,000		81,427
3.734%, due 12/15/24		40,000		41,192
				171,373

	Face amount		Value
Corporate notes—(continued)
Health care providers & services—0.13%
Aetna, Inc. 2.750%, due 11/15/22	$	215,000	$	217,815
2.800%, due 06/15/23		30,000		30,329
3.500%, due 11/15/24		44,000		45,707
Cigna Corp. 3.250%, due 04/15/25		140,000		141,740
Humana, Inc. 3.950%, due 03/15/27		55,000		57,738
				493,329
Hotels, restaurants & leisure—0.12%
Host Hotels & Resorts LP 4.500%, due 02/01/26		70,000		73,751
McDonald's Corp. 2.750%, due 12/09/20		25,000		25,657
McDonald's Corp. MTN 4.875%, due 12/09/45		320,000		359,693
				459,101
Household durables—0.02%
Newell Brands, Inc. 2.600%, due 03/29/19		63,000		63,725
Industrial conglomerates—0.10%
General Electric Co. 3.375%, due 03/11/24		190,000		199,824
4.125%, due 10/09/42		200,000		209,473
				409,297
Insurance—0.80%
American International Group, Inc. 3.300%, due 03/01/21		265,000		273,675
3.750%, due 07/10/25		10,000		10,342
3.900%, due 04/01/26		102,000		105,903
Aon PLC 3.875%, due 12/15/25		95,000		99,905
4.450%, due 05/24/43		64,000		64,919
4.600%, due 06/14/44		46,000		48,619
4.750%, due 05/15/45		160,000		173,630
Arch Capital Finance LLC 4.011%, due 12/15/26		55,000		57,251
Berkshire Hathaway, Inc. 2.750%, due 03/15/23		50,000		51,014
3.125%, due 03/15/26		35,000		35,676
Lincoln National Corp. 6.250%, due 02/15/20		235,000		257,990
Marsh & McLennan Cos., Inc. 3.750%, due 03/14/26		405,000		419,855
4.350%, due 01/30/47		90,000		95,655
Nuveen Finance LLC 2.950%, due 11/01/193		550,000		559,666
Principal Financial Group, Inc. 3.125%, due 05/15/23		57,000		58,221
Teachers Insurance & Annuity Association of America 4.270%, due 05/15/473		120,000		123,846

43

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(continued)
Insurance—(concluded)
The Travelers Cos., Inc. 4.000%, due 05/30/47	$	80,000	$	82,332
Trinity Acquisition PLC 3.500%, due 09/15/21		220,000		225,915
4.625%, due 08/15/23		30,000		32,431
Unum Group 3.000%, due 05/15/21		80,000		80,868
Willis North America, Inc. 3.600%, due 05/15/24		117,000		119,804
Willis Towers Watson PLC 5.750%, due 03/15/21		145,000		159,932
				3,137,449
Machinery—0.07%
John Deere Capital Corp. MTN 2.650%, due 01/06/22		30,000		30,592
2.800%, due 03/06/23		250,000		254,470
				285,062
Media—1.47%
Charter Communications Operating LLC/ Charter Communications Operating Capital 4.464%, due 07/23/22		40,000		42,787
4.908%, due 07/23/25		45,000		48,368
5.375%, due 05/01/473		600,000		622,828
6.484%, due 10/23/45		5,000		5,902
Comcast Corp. 1.625%, due 01/15/22		80,000		78,153
2.350%, due 01/15/27		65,000		61,105
3.300%, due 02/01/27		310,000		316,319
3.400%, due 07/15/46		720,000		656,281
5.150%, due 03/01/20		550,000		596,902
Cox Communications, Inc. 3.150%, due 08/15/243,8		465,000		465,649
Discovery Communications LLC 4.900%, due 03/11/26		90,000		96,157
iHeartCommunications, Inc. 9.000%, due 09/15/225		220,000		161,975
NBCUniversal Enterprise, Inc. 1.699%, due 04/01/212,3		340,000		340,854
5.250%, due 03/19/213,7		475,000		508,250
NBCUniversal Media LLC 5.150%, due 04/30/20		25,000		27,251
SFR Group SA 7.375%, due 05/01/263		200,000		216,500
The Walt Disney Co. 1.800%, due 06/05/20		290,000		290,048
The Walt Disney Co. MTN 1.850%, due 07/30/26		134,000		123,029
Time Warner Cable LLC 5.000%, due 02/01/20		265,000		282,138
Time Warner, Inc. 3.600%, due 07/15/25		76,000		76,815
3.800%, due 02/15/27		720,000		729,039
3.875%, due 01/15/26		38,000		38,720
				5,785,070

	Face amount		Value
Corporate notes—(continued)
Medical providers—0.60%
HCA, Inc. 3.750%, due 03/15/19	$	515,000	$	527,231
Laboratory Corp. of America Holdings 2.625%, due 02/01/20		255,000		257,780
Stryker Corp. 2.625%, due 03/15/21		45,000		45,882
3.500%, due 03/15/26		190,000		196,749
UnitedHealth Group, Inc. 1.700%, due 02/15/19		525,000		525,833
2.700%, due 07/15/20		41,000		41,992
2.875%, due 12/15/21		134,000		137,488
2.875%, due 03/15/22		144,000		147,428
3.100%, due 03/15/26		110,000		111,142
3.750%, due 07/15/25		240,000		255,163
4.750%, due 07/15/45		80,000		92,781
				2,339,469
Metals & mining—0.13%
Steel Dynamics, Inc. 5.500%, due 10/01/24		80,000		85,600
Teck Resources Ltd. 3.750%, due 02/01/235		410,000		413,588
				499,188
Oil & gas—1.17%
Air Liquide Finance SA 2.500%, due 09/27/263		200,000		190,994
Airgas, Inc. 3.050%, due 08/01/20		325,000		333,616
Anadarko Petroleum Corp. 5.550%, due 03/15/265		310,000		347,967
Apache Corp. 4.750%, due 04/15/43		150,000		152,788
5.100%, due 09/01/40		100,000		105,183
Cenovus Energy, Inc. 5.700%, due 10/15/19		275,000		290,097
Chevron Corp. 2.895%, due 03/03/24		80,000		81,258
2.954%, due 05/16/26		100,000		100,257
Cimarex Energy Co. 3.900%, due 05/15/27		165,000		168,164
4.375%, due 06/01/24		77,000		81,534
Devon Energy Corp. 3.250%, due 05/15/225		165,000		166,081
5.000%, due 06/15/45		250,000		254,929
Ecopetrol SA 4.125%, due 01/16/25		195,000		192,134
EOG Resources, Inc. 3.900%, due 04/01/35		90,000		88,356
4.150%, due 01/15/265		220,000		233,854
Hess Corp. 5.800%, due 04/01/47		110,000		111,970
Parsley Energy LLC/Parsley Finance Corp. 6.250%, due 06/01/243		420,000		445,200
Petroleos Mexicanos 5.625%, due 01/23/46		275,000		253,509

44

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(continued)
Oil & gas—(concluded)
Pioneer Natural Resources Co. 4.450%, due 01/15/26	$	125,000	$	134,240
6.875%, due 05/01/18		650,000		673,526
Shell International Finance BV 2.125%, due 05/11/20		50,000		50,401
3.250%, due 05/11/25		30,000		30,858
3.750%, due 09/12/46		30,000		29,046
Suncor Energy, Inc. 6.500%, due 06/15/38		50,000		64,799
				4,580,761
Oil Services—0.04%
BP Capital Markets PLC 2.241%, due 09/26/18		150,000		151,056
Pharmaceuticals—1.72%
Abbott Laboratories 2.000%, due 09/15/18		105,000		105,336
2.350%, due 11/22/19		270,000		272,874
2.800%, due 09/15/20		140,000		142,643
3.875%, due 09/15/25		15,000		15,535
AbbVie, Inc. 2.300%, due 05/14/21		70,000		70,047
2.500%, due 05/14/20		240,000		243,756
3.200%, due 05/14/26		45,000		45,003
4.300%, due 05/14/36		40,000		41,641
4.450%, due 05/14/46		100,000		104,340
Actavis Funding SCS 3.000%, due 03/12/20		806,000		824,736
3.450%, due 03/15/22		230,000		239,218
3.800%, due 03/15/25		275,000		286,536
4.750%, due 03/15/45		47,000		51,309
AstraZeneca PLC 2.375%, due 06/12/22		250,000		249,580
Baxalta, Inc. 5.250%, due 06/23/45		40,000		46,495
Bristol-Myers Squibb Co. 3.250%, due 02/27/27		236,000		241,912
Forest Laboratories, Inc. 5.000%, due 12/15/213		510,000		560,044
Johnson & Johnson 2.450%, due 03/01/26		25,000		24,596
2.950%, due 03/03/27		115,000		117,163
Medtronic, Inc. 3.150%, due 03/15/22		150,000		156,392
4.625%, due 03/15/45		400,000		454,992
Mylan N.V. 2.500%, due 06/07/19		220,000		221,836
Mylan, Inc. 3.125%, due 01/15/233,5		130,000		130,034
Novartis Capital Corp. 3.100%, due 05/17/27		200,000		203,930
Pfizer, Inc. 2.100%, due 05/15/19		150,000		151,554
4.125%, due 12/15/46		40,000		42,645

	Face amount		Value
Corporate notes—(continued)
Pharmaceuticals—(concluded)
Shire Acquisitions Investments Ireland DAC 1.900%, due 09/23/19	$	195,000	$	194,811
Teva Pharmaceutical Finance Co. BV 2.950%, due 12/18/22		200,000		200,175
Teva Pharmaceutical Finance Netherlands III BV 1.400%, due 07/20/18		160,000		159,464
2.200%, due 07/21/21		525,000		517,587
2.800%, due 07/21/23		135,000		132,492
3.150%, due 10/01/265		103,000		98,510
Zoetis, Inc. 1.875%, due 02/01/18		420,000		420,062
				6,767,248
Pipelines—0.49%
Cheniere Corpus Christi Holdings LLC 5.125%, due 06/30/273		170,000		177,013
Energy Transfer LP 4.750%, due 01/15/26		100,000		105,020
5.150%, due 03/15/45		300,000		292,397
5.300%, due 04/15/47		200,000		198,386
EnLink Midstream Partners LP 4.850%, due 07/15/26		100,000		105,304
Enterprise Products Operating LLC 3.700%, due 02/15/26		65,000		66,828
3.750%, due 02/15/25		65,000		67,589
3.950%, due 02/15/275		150,000		157,268
4.900%, due 05/15/46		120,000		130,050
Sabine Pass Liquefaction LLC 5.625%, due 04/15/23		360,000		400,846
5.625%, due 03/01/25		5,000		5,562
Spectra Energy Partners LP 4.750%, due 03/15/24		120,000		129,845
Sunoco Logistics Partners Operations LP 5.950%, due 12/01/25		93,000		104,733
				1,940,841
Real estate investment trusts—0.12%
Boston Properties LP 2.750%, due 10/01/26		120,000		114,550
Realty Income Corp. 3.000%, due 01/15/27		110,000		104,880
Weyerhaeuser Co. 7.375%, due 10/01/19		230,000		255,513
				474,943
Retail—0.65%
Amazon.com, Inc. 3.800%, due 12/05/24		340,000		363,875
4.800%, due 12/05/34		210,000		240,369
Coach, Inc. 3.000%, due 07/15/22		280,000		278,830
4.125%, due 07/15/27		140,000		140,980
Dollar Tree, Inc. 5.750%, due 03/01/23		500,000		529,375
Lowe's Cos., Inc. 2.500%, due 04/15/26		60,000		57,745

45

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(continued)
Retail—(concluded)
QVC, Inc. 3.125%, due 04/01/19	$	177,000	$	179,441
Target Corp. 2.500%, due 04/15/265		170,000		163,473
3.625%, due 04/15/46		77,000		72,817
The Home Depot, Inc. 3.000%, due 04/01/26		100,000		101,067
Wal-Mart Stores, Inc. 4.300%, due 04/22/44		70,000		77,824
Walgreens Boots Alliance, Inc. 3.450%, due 06/01/26		100,000		100,157
4.650%, due 06/01/46		250,000		261,823
				2,567,776
Semiconductor equipment & products—0.54%
Analog Devices, Inc. 2.500%, due 12/05/21		110,000		110,247
3.500%, due 12/05/26		65,000		66,292
4.500%, due 12/05/36		58,000		59,951
5.300%, due 12/15/45		40,000		46,869
Applied Materials, Inc. 3.300%, due 04/01/27		50,000		51,092
Intel Corp. 2.700%, due 12/15/22		200,000		203,924
KLA-Tencor Corp. 4.650%, due 11/01/24		4,000		4,338
Lam Research Corp. 2.800%, due 06/15/21		67,000		68,443
3.800%, due 03/15/25		90,000		92,379
NXP BV/NXP Funding LLC 4.125%, due 06/01/213		1,180,000		1,237,525
Xilinx, Inc. 2.950%, due 06/01/24		175,000		176,618
				2,117,678
Software & services—1.02%
Autodesk, Inc. 3.500%, due 06/15/27		75,000		74,640
First Data Corp. 5.750%, due 01/15/243		470,000		496,438
Microsoft Corp. 1.550%, due 08/08/21		200,000		196,864
1.850%, due 02/06/20		330,000		331,411
2.000%, due 08/08/23		260,000		254,433
2.400%, due 08/08/26		240,000		231,832
2.650%, due 11/03/22		25,000		25,523
3.300%, due 02/06/27		410,000		424,069
4.100%, due 02/06/37		200,000		215,782
4.250%, due 02/06/47		730,000		788,863
4.500%, due 02/06/57		250,000		278,023
Oracle Corp. 2.800%, due 07/08/21		340,000		350,166
4.000%, due 07/15/46		330,000		335,689
				4,003,733

	Face amount		Value
Corporate notes—(continued)
Special purpose entity—0.29%
CC Holdings GS V LLC/Crown Castle GS III Corp. 3.849%, due 04/15/23	$	43,000	$	45,342
Crown Castle Towers LLC 6.113%, due 01/15/203		495,000		532,684
Penske Truck Leasing Co. LP/PTL Finance Corp. 2.500%, due 06/15/193		220,000		222,082
3.050%, due 01/09/203		315,000		322,143
				1,122,251
Technology, hardware & equipment—0.43%
Broadcom Corp./Broadcom Cayman Finance Ltd. 3.000%, due 01/15/223		780,000		791,045
3.625%, due 01/15/243		180,000		184,802
Dell International LLC/EMC Corp. 3.480%, due 06/01/193		225,000		230,318
4.420%, due 06/15/213		125,000		132,082
6.020%, due 06/15/263		145,000		161,914
DXC Technology Co. 2.875%, due 03/27/203		30,000		30,373
4.250%, due 04/15/243		165,000		173,199
				1,703,733
Telecommunications—0.90%
Cisco Systems, Inc. 2.200%, due 02/28/21		336,000		338,746
2.200%, due 09/20/23		70,000		69,033
2.500%, due 09/20/26		220,000		212,667
4.450%, due 01/15/20		176,000		187,759
Harris Corp. 2.700%, due 04/27/20		45,000		45,406
3.832%, due 04/27/25		30,000		31,211
Verizon Communications, Inc. 1.722%, due 05/22/202		410,000		410,896
1.750%, due 08/15/21		160,000		156,154
3.000%, due 11/01/21		91,000		92,651
3.450%, due 03/15/21		64,000		66,340
4.125%, due 03/16/27		410,000		420,909
4.272%, due 01/15/36		660,000		630,695
4.500%, due 09/15/20		65,000		69,493
4.862%, due 08/21/46		796,000		782,134
				3,514,094
Tobacco—0.16%
Altria Group, Inc. 2.850%, due 08/09/22		150,000		153,040
Reynolds American, Inc. 2.300%, due 06/12/18		165,000		165,783
3.250%, due 06/12/20		46,000		47,451
4.000%, due 06/12/22		90,000		95,569
4.450%, due 06/12/25		140,000		150,566
				612,409

46

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(continued)
Transportation—0.41%
Burlington Northern Santa Fe LLC 3.000%, due 04/01/25	$	25,000	$	25,431
CSX Corp. 2.600%, due 11/01/26		50,000		48,460
3.800%, due 11/01/465		100,000		95,334
FedEx Corp. 4.550%, due 04/01/46		250,000		265,502
Norfolk Southern Corp. 2.900%, due 06/15/26		124,000		122,443
3.150%, due 06/01/27		80,000		80,221
Ryder System, Inc. MTN 2.250%, due 09/01/21		30,000		29,836
2.450%, due 09/03/19		180,000		181,793
2.550%, due 06/01/19		10,000		10,111
TTX Co. 2.250%, due 02/01/193		250,000		250,490
Union Pacific Corp. 3.350%, due 08/15/46		100,000		93,221
Union Pacific Railroad Co. 2014-1 Pass-Through Trust 3.227%, due 05/14/26		179,361		181,702
United Parcel Service, Inc. 3.125%, due 01/15/21		110,000		114,667
Virgin Australia 2013-1B Pass-Through Trust 6.000%, due 10/23/203		121,862		124,604
				1,623,815
Utilities—0.17%
DTE Energy Co. 3.750%, due 08/15/478		120,000		119,935
NiSource Finance Corp. 3.490%, due 05/15/27		540,000		550,345
				670,280
Wireless telecommunications—0.98%
AT&T, Inc. 3.045%, due 11/27/223,9		1,000,000		851,444
4.250%, due 03/01/275		200,000		205,711
4.450%, due 04/01/24		206,000		219,072
4.600%, due 02/15/21		118,000		126,202
5.250%, due 03/01/37		220,000		230,537
5.450%, due 03/01/47		550,000		582,094
Crown Castle International Corp. 2.250%, due 09/01/21		50,000		49,420
3.400%, due 02/15/21		355,000		366,593
3.700%, due 06/15/26		20,000		20,267
4.750%, due 05/15/47		55,000		55,725
Deutsche Telekom International Finance BV 1.950%, due 09/19/213		330,000		323,122
Juniper Networks, Inc. 4.350%, due 06/15/25		25,000		26,343
Motorola Solutions, Inc. 4.000%, due 09/01/24		46,000		46,254

	Face amount		Value
Corporate notes—(concluded)
Wireless telecommunications—(concluded)
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 3.360%, due 09/20/213	$	750,000	$	760,312
				3,863,096
Total corporate notes (cost—$117,459,484)				119,356,102
Non-US government obligations—0.86%
Argentine Government International Bond 6.875%, due 01/26/27		280,000		287,700
7.500%, due 04/22/265		530,000		569,485
Colombia Government International Bond 3.875%, due 04/25/275		940,000		951,280
Mexico Government International Bond 4.125%, due 01/21/26		523,000		547,581
Panama Government International Bond 3.750%, due 03/16/25		250,000		260,000
4.500%, due 05/15/47		200,000		206,000
South Africa Government International Bond 5.375%, due 07/24/44		200,000		196,750
Uruguay Government International Bond 4.375%, due 10/27/27		250,000		267,188
4.500%, due 08/14/24		85,000		92,437
Total non-US government obligations (cost—$3,331,200)				3,378,421
Commercial paper10—4.06%
Banking-non-US—4.06%
ANZ National International Ltd. 1.429%, due 08/07/17		550,000		549,873
Bank of Tokyo-Mitsubishi UFJ Ltd. 1.802%, due 08/11/17		645,000		645,000
1.809%, due 08/17/17		980,000		980,000
BPCE SA 1.513%, due 08/14/17		660,000		659,650
1.607%, due 09/20/17		635,000		633,624
Credit Industriel et Commercial 1.780%, due 08/16/17		995,000		995,000
Credit Suisse 1.600%, due 08/04/17		635,000		635,000
1.980%, due 08/24/17		1,550,000		1,550,000
Mizuho Bank Ltd. 1.388%, due 08/16/17		625,000		624,648
1.900%, due 08/25/17		705,000		705,000
Natixis 1.560%, due 09/18/17		950,000		950,000
Rabobank Nederland NV 1.680%, due 08/16/17		990,000		990,000
Societe Generale 1.534%, due 08/10/17		645,000		644,760
Standard Chartered Bank 1.544%, due 08/03/17		740,000		739,938
Sumitomo Mitsui Banking Corp. 1.600%, due 09/12/17		1,050,000		1,050,000
1.801%, due 08/18/17		1,355,000		1,355,000

47

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Commercial paper10—(concluded)
Banking-non-US—(concluded)
Swedbank AB 1.380%, due 08/18/17	$	990,000	$	990,000
Toronto-Dominion Holdings USA, Inc. 1.336%, due 08/09/17		578,000		577,833
1.682%, due 08/15/17		660,000		660,000
Total commercial paper (cost—$15,935,326)				15,935,326
Repurchase agreement—1.53%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $5,885,202 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$6,129,181); proceeds: $6,009,008 (cost—$6,009,000)		6,009,000		6,009,000
	Notional amount
Foreign exchange options purchased—0.05%
Call options—0.02%
EUR Call/GBP Put, strike @ 0.90, expiring 09/22/17	EUR	1,880,000		23,727
NZD Call/CAD Put, strike @ 0.95, expiring 08/10/17	NZD	2,830,000		3,796
CAD Call/NOK Put, strike @ 6.48, expiring 08/24/17	CAD	1,330,000		1,242
NOK Call/SEK Put, strike @ 1.04, expiring 08/03/17	NOK	16,570,000		963
USD Call/CHF Put, strike @ 1.00, expiring 10/16/17	USD	1,970,000		8,317
CAD Call/SEK Put, strike @ 6.60, expiring 08/10/17	CAD	2,510,000		1,574
CAD Call/SEK Put, strike @ 6.80, expiring 08/10/17	CAD	2,510,000		14
EUR Call/AUD Put, strike @ 1.45, expiring 08/30/17	EUR	1,715,000		46,409
EUR Call/JPY Put, strike @ 131.00, expiring 08/22/17	EUR	1,700,000		12,773
EUR Call/JPY Put, strike @ 134.00, expiring 08/22/17	EUR	1,700,000		2,101
NOK Call/SEK Put, strike @ 1.06, expiring 10/26/17	NOK	8,285,000		2,878
				103,794
Put options—0.03%
NZD Put/CAD Call, strike @ 0.95, expiring 08/10/17	NZD	2,830,000		35,835
GBP Put/NOK Call, strike @ 10.30, expiring 10/16/17	GBP	1,540,000		23,649
GBP Put/USD Call, strike @ 1.25, expiring 10/16/17	GBP	1,515,000		2,776
EUR Put/AUD Call, strike @ 1.45, expiring 08/30/17	EUR	1,715,000		6,190

	Notional amount			Value
Foreign exchange options purchased—(concluded)
Put options—(concluded)
USD Put/JPY Call, strike @ 107.00, expiring 10/23/17	USD	1,980,000		$	16,072
EUR Put/USD Call, strike @ 1.03, expiring 08/14/17	EUR	965,000			0
EUR Put/SEK Call, strike @ 9.50, expiring 08/24/17	EUR	1,280,000			4,970
NZD Put/CAD Call, strike @ 0.93, expiring 09/27/17	NZD	2,630,000			22,973
					112,465
Total foreign exchange options purchased (cost—$273,375)					216,259
Swaptions purchased11—0.04%
Put swaption—0.04%
3 Month USD LIBOR Interest Rate Swap, strike @ 2.900%, expires 11/29/21 (Counterparty: GS; pay floating rate); underlying swap terminates 12/01/26 (cost—$201,137)	USD	6,570,000			142,020
	Number of shares
Investment of cash collateral from securities loaned—1.05%
Money market fund—1.05%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$4,124,355)		4,124,355			4,124,355
Total investments before investments sold short (cost—$450,670,137)—115.44%					453,210,139
	Face amount
Investments sold short—(16.93)%
Federal home loan mortgage corporation certificates—(4.61)%
FHLMC TBA 3.000%	$	(17,437,000	)		(17,466,971	)
3.500%		(300,000	)		(309,064	)
5.000%		(314,000	)		(342,038	)
Total federal home loan mortgage corporation certificates (proceeds—$18,030,344)					(18,118,073	)
Federal national mortgage association certificates—(10.82)%
FNMA TBA 2.500%		(6,200,000	)		(6,246,984	)
3.000%		(10,064,410	)		(10,120,094	)
3.500%		(16,441,739	)		(16,919,831	)
4.000%		(6,788,000	)		(7,144,884	)
4.500%		(1,900,000	)		(2,039,828	)
Total federal national mortgage association certificates (proceeds—$42,342,776)					(42,471,621	)

48

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount			Value
Investments sold short—(concluded)
Government national mortgage association certificates—(1.50)%
GNMA TBA 3.500%	$	(2,548,300	)	$	(2,647,843	)
4.000%		(3,071,000	)		(3,229,348	)
Total government national mortgage association certificates (proceeds—$5,866,938)					(5,877,191	)
Total investments sold short (proceeds—$66,240,058)					(66,466,885	)
Other assets in excess of liabilities—1.49%					5,838,468
Net assets—100.00%				$	392,581,722

For a listing of defined portfolio acronyms, counterparty acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes before investments sold short was $450,814,609; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	3,300,878
Gross unrealized depreciation		(905,348	)
Net unrealized appreciation	$	2,395,530

Foreign exchange options written

Notional amount (000)		Call options	Counterparty	Expiration date	Premiums received		Current value			Unrealized appreciation (depreciation)
GBP	1,515	GBP Call/USD Put, strike @ USD 1.35	GSI	10/16/17	$	8,702	$	(11,370	)	$	(2,668	)
EUR	3,405	EUR Call/JPY Put, strike @ JPY 132.50	JPMCB	08/22/17		13,950		(11,004	)		2,946
NZD	2,045	NZD Call/USD Put, strike @ USD 0.74	JPMCB	09/27/17		12,605		(34,591	)		(21,986	)
NZD	2,830	NZD Call/CAD Put, strike @ CAD 0.95	CSI	08/10/17		44,644		(3,796	)		40,848
NOK	16,570	NOK Call/SEK Put, strike @ SEK 1.04	GSI	08/03/17		7,412		(963	)		6,449
EUR	1,280	EUR Call/SEK Put, strike @ SEK 9.70	GSI	08/24/17		3,255		(1,994	)		1,261
CAD	5,020	CAD Call/SEK Put, strike @ SEK 6.70	GSI	08/10/17		12,260		(314	)		11,946
					$	102,828	$	(64,032	)	$	38,796
		Put options
USD	1,980	USD Put/JPY Call, strike @ JPY 105.00	CSI	10/23/17	$	7,633	$	(9,245	)	$	(1,612	)
NZD	3,975	NZD Put/CAD Call, strike @ CAD 0.91	JPMCB	10/27/17		21,797		(23,609	)		(1,812	)
GBP	1,540	GBP Put/NOK Call, strike @ NOK 10.20	GSI	10/16/17		12,964		(16,767	)		(3,803	)
NZD	2,830	NZD Put/CAD Call, strike @ CAD 0.95	CSI	08/10/17		8,707		(35,835	)		(27,128	)
CAD	2,000	CAD Put/NOK Call, strike @ NOK 6.25	JPMCB	08/24/17		8,054		(6,991	)		1,063
					$	59,155	$	(92,447	)	$	(33,292	)
					$	161,983	$	(156,479	)	$	5,504

49

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

Foreign exchange options written activity for the year ended July 31, 2017 was as follows:

	Premiums received
Foreign exchange options outstanding at July 31, 2016	$	—
Foreign exchange options written		454,292
Foreign exchange options terminated in closing purchase transactions		(59,794	)
Foreign exchange options expired prior to exercise		(232,515	)
Foreign exchange options outstanding at July 31, 2017	$	161,983

Swaptions written¹¹

Notional amount (000)		Call swaptions	Counterparty	Pay/ receive floating rate	Expiration date	Premiums received		Current value			Unrealized appreciation
USD	10,690	3 Month USD LIBOR Interest Rate Swap strike @ 1.00%, terminating 06/06/20	GS	Receive	06/04/18	$	49,475	$	(1,708	)	$	47,767
USD	7,000	3 Month USD LIBOR Interest Rate Swap strike @ 1.32%, terminating 02/27/20	GS	Receive	02/27/18		63,876		(2,384)			61,492
EUR	2,080	6 Month EURIBOR Interest Rate Swap strike @ 0.10%, terminating 03/15/23	GS	Receive	03/15/18		4,633		(1,914)			2,719
						$	117,984	$	(6,006	)	$	111,978
		Put swaptions
USD	10,690	3 Month USD LIBOR Interest Rate Swap strike @ 2.00%, terminating 06/06/20	GS	Pay	06/04/18	$	50,769	$	(22,761	)	$	28,008
USD	7,000	3 Month USD LIBOR Interest Rate Swap strike @ 2.30%, terminating 02/27/20	GS	Pay	02/27/18		29,197		(1,705)			27,492
EUR	5,285	6 Month EURIBOR Interest Rate Swap strike @ 0.40%, terminating 07/10/21	JPMCB	Pay	07/10/19		20,464		(27,579)			(7,115)
						$	100,430	$	(52,045	)	$	48,385
						$	218,414	$	(58,051	)	$	160,363

Swaptions written activity for the year ended July 31, 2017 was as follows:

	Premiums received
Swaptions outstanding at July 31, 2016	$	746,778
Swaptions written		177,349
Swaptions exercised		(692,690	)
Swaptions terminated in closing purchase transactions		(13,023	)
Swaptions outstanding at July 31, 2017	$	218,414

50

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

Futures contracts

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
US Treasury futures buy contracts:
	210	USD	US Treasury Note 2 Year Futures	September 2017	$	45,412,388	$	45,432,187	$	19,799
	70	USD	US Treasury Note 5 Year Futures	September 2017		8,261,992		8,270,391		8,399
	172	USD	US Treasury Note 10 Year Futures	September 2017		21,690,944		21,653,188		(37,756	)
					$	75,365,324	$	75,355,766	$	(9,558	)
					Proceeds
US Treasury futures sell contracts:
	4	USD	Ultra Long US Treasury Bond 10 Year Futures	September 2017	$	544,186	$	540,187	$	3,999
	7	USD	Ultra Long US Treasury Bond Futures	September 2017		1,141,050		1,151,500		(10,450	)
	6	USD	US Treasury Long Bond Futures	September 2017		913,176		917,813		(4,637	)
Interest rate futures sell contracts:
	8	EUR	Mid-Term Euro-OAT Futures	September 2017		1,422,827		1,409,007		13,820
					$	4,021,239	$	4,018,507	$	2,732
									$	(6,826	)

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
BB	AUD	946,943	EUR	645,000	09/01/17	$	7,457
BB	CAD	1,097,960	NZD	1,155,000	08/14/17		(13,628	)
BB	CHF	948,535	USD	990,000	09/07/17		6,891
BB	CHF	940,833	USD	985,000	09/29/17		8,442
BB	CHF	232,293	USD	245,000	10/18/17		3,595
BB	CHF	1,850,999	USD	1,960,000	10/20/17		36,154
BB	EUR	1,505,000	AUD	2,213,156	09/01/17		(14,501	)
BB	EUR	215,000	AUD	318,806	09/01/17		40
BB	EUR	220,000	GBP	192,536	09/26/17		(6,701	)
BB	NZD	2,470,000	CAD	2,366,126	08/14/17		43,672
BB	USD	990,000	CHF	958,325	09/07/17		3,256
BB	USD	985,000	CHF	949,109	09/29/17		149
BB	USD	245,000	CHF	234,985	10/18/17		(798	)
BB	USD	1,960,000	CHF	1,870,524	10/20/17		(15,860	)
BNP	AUD	318,581	GBP	190,000	09/12/17		(3,710	)
BNP	AUD	320,000	SEK	2,076,427	09/12/17		1,896
BNP	EUR	210,000	AUD	313,421	09/12/17		1,477
BNP	GBP	185,893	EUR	210,000	09/12/17		3,532
BNP	GBP	190,000	NOK	2,045,904	09/12/17		9,402
BNP	GBP	190,000	USD	242,447	09/12/17		(8,580	)
BNP	NOK	4,200,000	SEK	4,216,199	09/12/17		(11,231	)

51

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(concluded)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
BNP	NZD	710,000	CAD	672,875	08/14/17	$	6,724
BNP	NZD	340,000	USD	247,334	09/12/17		(7,818	)
BOA	AUD	309,135	EUR	210,000	09/12/17		1,949
BOA	EUR	470,000	CHF	509,532	09/12/17		(29,305	)
BOA	SEK	2,074,540	AUD	320,000	09/12/17		(1,661	)
BOA	USD	344,295	CHF	328,961	09/12/17		(3,228	)
BOA	USD	246,141	GBP	190,000	09/12/17		4,886
CITI	AUD	310,000	CAD	307,355	09/12/17		(1,202	)
CITI	CAD	340,266	NZD	355,000	08/14/17		(6,434	)
CITI	CHF	510,730	EUR	470,000	09/12/17		28,062
CITI	CHF	240,130	USD	250,000	09/12/17		1,034
CITI	EUR	470,000	CAD	705,213	09/12/17		8,398
CITI	EUR	430,000	SEK	4,134,223	09/12/17		3,091
CITI	EUR	200,000	SEK	1,906,534	09/12/17		(593	)
CITI	GBP	190,000	AUD	322,649	09/12/17		6,963
CITI	NZD	1,775,000	CAD	1,680,013	08/14/17		15,068
CITI	SEK	3,819,031	EUR	400,000	09/12/17		446
CITI	SEK	4,313,623	NOK	4,200,000	09/12/17		(863	)
CITI	USD	145,705	CHF	139,202	09/12/17		(1,382	)
CSI	AUD	188,727	EUR	130,000	09/01/17		3,206
CSI	CAD	1,441,128	NZD	1,490,000	08/14/17		(37,407	)
CSI	CHF	471,801	USD	490,000	09/12/17		839
CSI	EUR	215,000	GBP	191,328	09/26/17		(2,362	)
CSI	NOK	1,990,000	SEK	2,040,164	08/07/17		(359	)
CSI	SEK	2,002,281	EUR	210,000	08/28/17		579
GSI	USD	248,389	GBP	190,000	10/18/17		2,941
HSBC	CAD	331,753	NZD	355,000	08/14/17		396
JPMCB	CAD	260,000	NOK	1,655,628	08/28/17		2,055
JPMCB	CAD	335,000	NOK	2,077,737	08/28/17		(4,412	)
NTC	CAD	331,626	NZD	355,000	08/14/17		498
NTC	NZD	355,000	CAD	334,813	08/14/17		2,059
RBC	CAD	697,659	EUR	470,000	09/12/17		(2,335	)
RBC	CAD	435,586	NZD	460,000	08/14/17		(4,067	)
RBC	CAD	1,064,731	NZD	1,140,000	08/14/17		1,766
						$	38,486

52

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

Centrally cleared interest rate swap agreements

Notional amount (000)		Termination date	Payments made by the Portfolio12			Payments received by the Portfolio12	Value			Unrealized appreciation (depreciation)
EUR	270	06/12/22		6 Month EURIBOR		0.146%	$	(1,617	)	$	(1,622	)
EUR	870	11/16/22		0.369	%	6 Month EURIBOR		(841	)		(855	)
USD	1,880	01/11/20		1.919		3 Month USD LIBOR		(7,252	)		(7,277	)
USD	1,970	11/16/20		1.946		3 Month USD LIBOR		(1,256	)		(1,283	)
USD	3,490	11/30/21		1.560		12 Month Federal Funds Rate		7,010			6,951
USD	10,020	11/30/21		1.800		3 Month USD LIBOR		29,408			29,239
USD	2,660	12/06/26		3 Month USD LIBOR		2.720		14,541			14,497
							$	39,993		$	39,650

Centrally cleared credit default swap agreements on credit indices—buy protection¹³

Referenced obligations	Notional amount (000)		Termination date	Payments made by the Portfolio12			Upfront payments received (made)		Value			Unrealized depreciation
CDX North America High Yield 28 Index	USD	2,290	06/20/22		5.000	%	$	166,844	$	(187,098	)	$	(20,254	)

Credit default swap agreements on corporate issues—sell protection¹⁴

Counterparty	Referenced obligations	Notional amount (000)		Termination dates	Payments received by the Portfolio12			Upfront payments received (made)		Value			Unrealized appreciation		Credit spread15
JPMCB	Anadarko Petroleum Corp., bond, 6.95%, due 06/15/19	USD	510	06/20/22		1.000	%	$	22,339	$	(8,548	)	$	13,791		1.388	%

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments.

Assets Description	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	$	—	$	78,132,837	$	—	$	78,132,837
Federal home loan bank certificate		—		750,860		—		750,860
Federal home loan mortgage corporation certificates		—		48,891,428		—		48,891,428
Federal national mortgage association certificates		—		78,895,555		—		78,895,555
Government national mortgage association certificates		—		35,986,202		—		35,986,202
Collateralized mortgage obligations		—		32,181,928		355,249		32,537,177
Asset-backed securities		—		28,854,597		—		28,854,597
Corporate notes		—		119,356,102		—		119,356,102

53

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

Fair valuation summary—(concluded)

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Non-US government obligations	$	—		$	3,378,421		$	—	$	3,378,421
Commercial paper		—			15,935,326			—		15,935,326
Repurchase agreement		—			6,009,000			—		6,009,000
Foreign exchange options purchased		—			216,259			—		216,259
Swaptions purchased		—			142,020			—		142,020
Investment of cash collateral from securities loaned		—			4,124,355			—		4,124,355
Futures contracts		46,017			—			—		46,017
Forward foreign currency contracts		—			216,923			—		216,923
Swap agreements		—			50,959			—		50,959
Total	$	46,017		$	453,122,772		$	355,249	$	453,524,038
Liabilities
Investments sold short	$	—		$	(66,466,885	)	$	—	$	(66,466,885	)
Foreign exchange options written		—			(156,479	)		—		(156,479	)
Swaptions written		—			(58,051	)		—		(58,051	)
Futures contracts		(52,843	)		—			—		(52,843	)
Forward foreign currency contracts		—			(178,437	)		—		(178,437	)
Swap agreements		—			(206,612	)		—		(206,612	)
Total	$	(52,843	)	$	(67,066,464	)	$	—	$	(67,119,307	)

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Level 3 rollforward disclosure

The following is a rollforward of the Portfolio's investments that was valued using unobservable inputs for the year ended July 31, 2017:

	Collateralized mortgage obligations			Asset-backed securities			Total
Beginning balance	$	65,728		$	3,745,103		$	3,810,831
Purchases		360,996			1,784,932			2,145,928
Sales		(71,558	)		(3,849,571	)		(3,921,129	)
Accrued discounts/(premiums)		—			1,397			1,397
Total realized gain/(loss)		761			57,359			58,120
Net change in unrealized appreciation/depreciation		(678	)		1,952			1,274
Transfers into Level 3		—			—			—
Transfers out of Level 3		—			(1,741,172	)		(1,741,172	)
Ending balance	$	355,249		$	—		$	355,249

Transfers into and out of Level 3 represent the value at the end of the period. At July 31, 2017, securities were transferred from Level 3 to Level 2 as the valuation is based primarily on observable inputs from an established pricing source.

54

PACE Intermediate Fixed Income Investments

Portfolio of investments—July 31, 2017

Portfolio footnotes

¹  Security, or portion thereof, pledged as collateral for investments sold short, written options, futures and/or swap agreements.

²  Variable or floating rate security. The interest rate shown is the current rate at the period end and changes periodically.

³  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁴  Step bond—coupon rate increases in increments to maturity. The rate disclosed is the rate at the period end; the maturity date disclosed is the ultimate maturity date.

⁵  Security, or portion thereof, was on loan at the period end.

⁶  Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

⁷  Perpetual investment. Date shown reflects the next call date.

⁸  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.

⁹  Rate shown reflects annualized yield at the period end on zero coupon bond.

¹⁰  Rate shown is the discount rate at the date of purchase unless otherwise noted.

¹¹  Illiquid investment at the period end.

¹²  Payments made or received are based on the notional amount.

¹³  If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 underlying securities comprising 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 or underlying securities comprising the referenced obligation.

¹⁴  If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 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 or underlying securities comprising the referenced obligation.

¹⁵  Credit spreads, 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 or other credit event occurring 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. Credit spreads are unaudited.

See accompanying notes to financial statements.
55

PACE Strategic Fixed Income Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 1.94% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Bloomberg Barclays US Government/Credit Index (the "benchmark") returned -0.79% and the Lipper Core Plus Bond Funds category posted a median return of 1.44%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 59. 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 3.

Subadvisors' comments (Unaudited)²

PIMCO

Our portion of the Portfolio outperformed the benchmark during the reporting period. An overall overweight to US duration detracted from performance as yields rose across the curve. (Duration measures a portfolio's sensitivity to interest rate changes.) However, this was more than offset by yield curve positioning, including a focus on intermediate rates, as intermediate yields outperformed short and long-end yields. Elsewhere, a short exposure to Canadian duration added to performance as Canadian yields rose during the period.

Overall credit strategies contributed to performance. An underweight to investment grade credit detracted from performance, as the sector outperformed like-duration Treasuries. However, this was offset by positive sector and security selection. An allocation to high yield corporate bonds and non-agency mortgages was beneficial for results. Additionally, an allocation to agency mortgage-backed securities modestly added to performance as the sector outperformed like-duration Treasuries. Exposure to US Treasury Inflation-Protected Securities ("TIPS") was positive for performance as inflation expectations increased during the reporting period. Lastly, currency strategies modestly added to performance, including tactical exposures to the British pound and euro toward the end of the reporting period, as these currencies appreciated relative to the US dollar.

Overall, derivative usage was positive for results during the reporting period. Our short exposure to long maturity US swap rates was positive, as long swap rates underperformed Treasury rates. We used interest rate swaps to adjust interest rate and yield curve exposures, as well as to substitute for physical securities. The use of credit default swaps to manage credit exposure in lieu of the direct buying or selling of securities modestly added to performance. These credit default swaps benefited from lower transaction costs versus cash bond equivalents. Options and options on swaps were primarily

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust – PACE Strategic Fixed Income Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisor:

Pacific Investment Management Company LLC ("PIMCO");

Neuberger Berman Investment Advisers LLC ("Neuberger Berman")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Gina Toth, CFA, Fred Lee, CFA, Diana To and Anthony Karaminas, CFA

PIMCO: Scott Mather;
Neuberger Berman: Thanos Bardas, David M. Brown, Andrew A. Johnson, Thomas J. Marthaler, Bradley C. Tank

Objective:

Total return consisting of income and capital appreciation

Investment process:

PIMCO: 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 +/- 50% of the effective duration of the Portfolio's benchmark index. The Portfolio seeks to invest in the areas of the bond

(continued on next page)

56

PACE Strategic Fixed Income Investments

Subadvisors' comments (Unaudited) – concluded

used to manage interest rate exposure and volatility, and contributed to performance through income generation. Currency options and forwards added to results, as they were used to gain exposure to foreign currency markets and generate income in expected currency scenarios. The use of government futures to adjust interest rate exposures and replicate government bond positions detracted from performance.

Neuberger Berman

Our portion of the Portfolio outperformed its benchmark during the reporting period. We maintained an overweight to spread sectors (non-US Treasury fixed income securities) versus US Treasury securities, as spread sectors can provide an incremental source of yield, and they generally perform better in an expanding economy. The largest contributor to performance was our allocation to non-agency mortgage-backed securities ("MBS"). An overweight to BBB-rated credit and an allocation to high yield corporate bonds also contributed to performance as their spreads tightened. Elsewhere, a short duration position and an allocation to US Treasury Inflation-Protected Securities ("TIPS") were additive for results. On the downside, an underweight allocation to investment grade corporate bonds was the primary detractor from performance, although capital allocated to high yield and other out-of-benchmark sectors compensated for this underweight.

Several adjustments were made to our portion of the Portfolio during the reporting period. We added an allocation to bank loans and decreased our exposure to non-agency MBS to capture profits. Meanwhile, we increased our allocation to emerging markets debt and decreased our exposure to investment grade corporate bonds. Finally, our portion of the Portfolio's duration decreased by approximately one year during the reporting period.

Financial derivatives were used during the reporting period to manage interest rate risk and shorten our overall duration relative to the benchmark. The use of these instruments detracted from performance.

Investment process
(concluded)

market it considers undervalued, based on such factors as quality, sector, coupon and maturity. The Portfolio decides to buy or sell specific bonds based on an analysis of their values relative to other similar bonds. The Portfolio 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.

Neuberger Berman: The Portfolio employs a consistently applied, risk-managed approach to portfolio management that leverages Neuberger Berman's proprietary fundamental research capabilities, decision-making frameworks, and quantitative risk management tools. The Portfolio establishes the investment profile for its portion of the Portfolio's assets, which it monitors on an ongoing basis, including exposures to sectors and duration/yield curve positioning, utilizing internally generated data that are produced by specialty sector investment teams in conjunction with asset allocation tools. Once the investment profile is established, the Portfolio determines industry/sub-sector weightings and makes securities selections.

57

PACE Strategic Fixed Income Investments

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.

58

PACE Strategic Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		1.61	%		2.10	%		5.97	%
Class C2		1.10			1.62			5.46
Class Y3		1.87			2.32			6.23
Class P4		1.94			2.35			6.23
After deducting maximum sales charge
Class A1		(2.17	)		1.31			5.57
Class C2		0.37			1.62			5.46
Bloomberg Barclays US Government/Credit Index5		(0.79	)		2.04			4.51
Lipper Core Plus Bond Funds median		1.44			2.66			5.10

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		2.41	%		2.33	%		6.03	%
Class C2		1.97			1.84			5.52
Class Y3		2.74			2.55			6.30
Class P4		2.74			2.57			6.29
After deducting maximum sales charge
Class A1		(1.44	)		1.55			5.63
Class C2		1.23			1.84			5.52

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.10% and 0.96%; Class C—1.60% and 1.46%; Class Y—0.97% and 0.71%; and Class P—0.88% and 0.71% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—0.96%; Class C—1.46%; Class Y—0.71%; and Class P—0.71% The Portfolio has agreed to repay UBS 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 and that UBS AM has not waived the right to do so. 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 AM. Upon termination of the agreement, however, UBS AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 3.75%. Class A shares bear ongoing 12b-1 service fees of 0.25% annually.

²  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 of 0.25% and 0.50% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The Bloomberg Barclays 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.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

59

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 Bloomberg Barclays US Government/Credit Index over the 10 years ended July 31, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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.

PACE Strategic Fixed Income Investments

60

PACE Strategic Fixed Income Investments

Portfolio statistics—July 31, 2017 (unaudited)

Characteristics
Weighted average duration		6.11 yrs.
Weighted average maturity		9.15 yrs.
Average coupon		3.30	%
Top ten holdings (long holdings)1	Percentage of net assets
US Treasury Bond, 2.500% due 02/15/45		5.9	%
FNMA TBA, 3.500%		3.6
US Treasury Note, 2.125% due 09/30/21		3.4
US Treasury Inflation Index Note (TIPS), 0.125% due 07/15/24		3.3
FNMA TBA, 4.000%		2.4
FNMA TBA, 3.000%		2.3
US Treasury Note, 2.000% due 02/28/21		2.1
US Treasury Inflation Index Bond (TIPS), 2.500% due 01/15/29		1.7
US Treasury Note, 2.250% due 04/30/21		1.4
US Treasury Inflation Index Note (TIPS), 0.125% due 04/15/21		1.3
Total		27.4	%
Top five issuer breakdown by country or territory of origin1	Percentage of net assets
United States		96.0	%
Cayman Islands		5.9
Venezuela		2.6
Netherlands		1.6
Japan		1.5
Total		107.6	%
Asset allocation1	Percentage of net assets
Corporate notes		38.3	%
US government obligations		28.5
Asset-backed securities		14.3
Collateralized mortgage obligations		13.8
US government agency mortgage pass-through certificates		13.1
Non-US government obligations		2.8
Loan assignments		2.7
Municipal bonds and notes		1.5
Options, swaptions, foreign exchange options written, futures, swaps and forward foreign currency contracts		0.1
Investment sold short		(0.2	)
Cash equivalents and other assets less liabilities		(14.9	)
Total		100.0	%

¹  The Portfolio is actively managed and its composition will vary over time.

61

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
US government obligations—28.50%
US Treasury Bonds 2.250%, due 08/15/46		3,400,000	$	2,964,110
2.500%, due 02/15/45		53,400,000		49,411,661
2.500%, due 02/15/46		1,300,000		1,199,250
2.750%, due 11/15/42		3,200,000		3,136,749
2.875%, due 05/15/432		3,500,000		3,505,467
2.875%, due 08/15/45		10,400,000		10,370,339
3.000%, due 11/15/44		7,200,000		7,366,500
3.000%, due 05/15/45		200,000		204,391
3.000%, due 02/15/47		800,000		816,906
3.125%, due 08/15/44		2,100,000		2,200,405
3.625%, due 08/15/43		3,400,000		3,881,845
3.625%, due 02/15/44		1,400,000		1,600,430
3.750%, due 11/15/43		2,500,000		2,915,722
3.875%, due 08/15/40		2,740,000		3,241,014
US Treasury Inflation Index Bonds (TIPS) 0.750%, due 02/15/42		108,305		102,945
0.750%, due 02/15/45		727,482		681,937
1.375%, due 02/15/44		945,054		1,027,018
1.750%, due 01/15/28		7,709,856		8,641,723
2.500%, due 01/15/29		11,643,568		14,077,935
3.875%, due 04/15/29		3,669,547		5,001,387
US Treasury Inflation Index Notes (TIPS) 0.125%, due 04/15/21		11,048,499		11,067,922
0.125%, due 07/15/24		27,827,820		27,498,199
0.500%, due 07/15/27		3,901,635		3,863,485
US Treasury Notes 1.375%, due 04/30/20		3,280,000		3,271,672
1.500%, due 08/31/18		1,000,000		1,002,344
1.625%, due 02/15/26		345,000		328,707
2.000%, due 02/28/212		16,900,000		17,120,494
2.125%, due 09/30/21		27,500,000		27,932,905
2.125%, due 12/31/21		5,485,000		5,567,917
2.250%, due 04/30/212		11,200,000		11,439,310
2.375%, due 05/15/27		3,000,000		3,022,326
2.750%, due 02/15/24		2,410,000		2,512,613
Total US government obligations (cost—$242,167,525)				236,975,628
Government national mortgage association certificates—0.00%†
GNMA II ARM 2.125%, due 07/20/253		3,259		3,359
2.125%, due 05/20/263		11,174		11,491
2.250%, due 11/20/233		2,442		2,503
2.375%, due 01/20/263		5,804		5,985
Total government national mortgage association certificates (cost—$22,911)				23,338
Federal home loan mortgage corporation certificates—0.36%
FHLMC 7.645%, due 05/01/25		917,232		1,075,674
FHLMC ARM 3.518%, due 03/01/363		37,198		37,813

	Face amount1		Value
Federal home loan mortgage corporation certificates—(concluded)
FHLMC TBA 4.000%		1,800,000	$	1,895,995
Total federal home loan mortgage corporation certificates (cost—$2,841,447)				3,009,482
Federal housing administration certificates—0.00%†
FHA GMAC 7.430%, due 06/01/214,5		5,806		5,803
FHA Reilly 7.430%, due 10/01/204,5		1,898		1,897
Total federal housing administration certificates (cost—$7,931)				7,700
Federal national mortgage association certificates—12.70%
FNMA 3.500%, due 11/01/21		1,079,193		1,136,576
4.500%, due 04/01/29		219,721		236,277
5.402%, due 11/01/34		7,792,811		8,303,509
FNMA ARM 2.132%, due 08/01/403		42,473		42,366
2.830%, due 10/01/353		9,388		9,920
2.881%, due 05/01/303		34,854		36,175
2.913%, due 01/01/363		26,974		28,283
2.982%, due 04/01/273		10,565		11,069
3.115%, due 05/01/273		7,118		7,248
3.150%, due 01/01/363		41,354		44,013
3.192%, due 09/01/353		36,697		38,627
3.196%, due 12/01/353		67,325		70,784
3.405%, due 11/01/353		43,955		46,238
3.455%, due 03/01/363		63,244		66,054
3.458%, due 03/01/363		24,495		26,038
3.505%, due 03/01/363		54,178		56,765
3.537%, due 02/01/363		61,285		64,791
3.662%, due 03/01/363		24,485		25,718
3.765%, due 06/01/363		8,673		8,686
FNMA ARM COFI 3.250%, due 11/01/264,5		16,026		14,454
FNMA TBA 3.000%		28,495,000		28,530,600
3.500%		30,000,000		30,850,038
4.000%		33,140,000		34,833,323
4.500%		1,000,000		1,072,539
Total federal national mortgage association certificates (cost—$104,978,108)				105,560,091
Collateralized mortgage obligations—13.82%
Alba PLC, Series 2007-1, Class A3 0.467%, due 03/17/393,6	GBP	551,768		697,915
ARM Trust, Series 2005-5, Class 2A1 3.598%, due 09/25/353		172,229		160,174
Banc of America Funding Corp., Series 2005-D, Class A1 3.227%, due 05/25/353		856,088		891,928

62

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Collateralized mortgage obligations—(continued)
Banc of America Merrill Lynch Large Loan, Series 2012-PARK, Class A 2.959%, due 12/10/307		1,000,000	$	1,020,119
Bank of America Mortgage Securities, Inc., Series 2002-G, Class 1A3 4.067%, due 07/20/323		854		861
Series 2004-H, Class 2A2 3.206%, due 09/25/343		884,879		874,966
BBCCRE Trust, Series 2015-GTP, Class A 3.966%, due 08/10/337		3,600,000		3,700,491
BBCMS Trust, Series 2015-RRI, Class A 2.409%, due 05/15/323,7		3,538,476		3,538,472
BCAP LLC 2011-RR10 Trust, Class 3A5 3.187%, due 06/26/353,7		533,968		526,825
BCAP LLC Trust, Series 2014-RR5, Class 1A3 1.428%, due 01/26/363,7		1,760,908		1,711,573
Bear Stearns Alternative Loan Trust-A Trust, Series 2003-3, Class 1A 3.255%, due 10/25/333		15,331		15,241
Series 2004-9, Class 2A1 3.235%, due 09/25/343		470,259		444,755
Series 2005-7, Class 22A1 3.403%, due 09/25/353		709,069		602,498
Series 2006-1, Class 21A2 3.282%, due 02/25/363		805,631		681,758
Bear Stearns ARM Trust, Series 2003-1, Class 6A1 3.081%, due 04/25/333		32,033		32,209
Series 2003-5, Class 2A1 3.363%, due 08/25/333		170,852		170,645
Series 2004-3, Class 1A2 3.744%, due 07/25/343		154,098		149,959
Series 2004-6, Class 2A1 3.394%, due 09/25/343		785,085		784,554
Series 2004-7, Class 1A1 3.282%, due 10/25/343		271,230		256,276
Series 2005-2, Class A1 3.260%, due 03/25/353		507,087		511,811
Series 2005-5, Class A2 2.820%, due 08/25/353		1,699,224		1,691,284
Chase Mortgage Finance Corp., Series 2005-S3, Class A10 5.500%, due 11/25/35		2,527,000		2,414,916
Series 2007-S6, Class 2A1 5.500%, due 12/25/22		818,997		668,191
Citigroup Commercial Mortgage Trust, Series 2013-GC17, Class XA, IO 1.422%, due 02/10/483		3,612,112		290,930
Series 2015-GC29, Class XA, IO 1.160%, due 04/10/483		3,303,417		203,889
Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class A1A 3.430%, due 05/25/353		297,850		297,176

	Face amount1		Value
Collateralized mortgage obligations—(continued)
Series 2005-4, Class A 3.298%, due 08/25/353		747,801	$	738,449
Series 2005-6, Class A2 3.180%, due 09/25/353		56,887		58,621
Series 2005-6, Class A3 2.830%, due 09/25/353		10,289		10,003
COMM Mortgage Trust, Series 2014-LC15, Class XA, IO 1.341%, due 04/10/473		12,447,247		675,471
Series 2014-UBS3, Class XA, IO 1.315%, due 06/10/473		3,566,407		205,321
Countrywide Alternative Loan Trust, Series 2003-J3, Class 2A1 6.250%, due 12/25/33		49,011		50,139
Series 2005-62, Class 2A1 1.776%, due 12/25/353		235,607		213,675
Series 2006-41CB, Class 1A9 6.000%, due 01/25/37		617,807		543,771
Countrywide Home Loan Mortgage Pass-Through Trust, Series 2003-R4, Class 2A 5.145%, due 01/25/343,7		722,931		713,979
Series 2004-12, Class 11A1 3.552%, due 08/25/343		223,189		204,912
Series 2004-12, Class 11A2 3.552%, due 08/25/343		142,806		136,564
Series 2004-12, Class 12A1 3.499%, due 08/25/343		40,323		36,827
Series 2005-HYB9, Class 5A1 3.306%, due 02/20/363		223,456		197,919
Credit Suisse Commercial Mortgage Trust, Series 2007-C5, Class A4 5.695%, due 09/15/403		23,732		23,698
CSMC Trust, Series 2014-RPL4, Class A1 3.500%, due 03/25/543,7		2,082,147		2,084,977
DSLA Mortgage Loan Trust, Series 2005-AR4, Class 2A1A 1.488%, due 08/19/453		330,539		310,399
FHLMC REMIC, Series 0023, Class KZ 6.500%, due 11/25/23		42,193		46,015
Series 1278, Class K 7.000%, due 05/15/22		12,451		13,172
Series 1367, Class KA 6.500%, due 09/15/22		451		489
Series 1502, Class PX 7.000%, due 04/15/23		146,487		160,288
Series 1503, Class PZ 7.000%, due 05/15/23		43,287		47,340
Series 1534, Class Z 5.000%, due 06/15/23		43,809		45,869
Series 1548, Class Z 7.000%, due 07/15/23		30,665		33,414
Series 1562, Class Z 7.000%, due 07/15/23		49,432		53,999

63

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Collateralized mortgage obligations—(continued)
Series 1694, Class Z 6.500%, due 03/15/24		26,268	$	28,890
Series 2017-DNA2, Class M2 4.682%, due 10/25/293		670,000		721,659
Series 2017-HQA2, Class M2 3.882%, due 12/25/293		530,000		542,426
Series 2061, Class Z 6.500%, due 06/15/28		89,798		100,896
Series 2400, Class FQ 1.726%, due 01/15/323		59,984		60,211
Series 2764, Class LZ 4.500%, due 03/15/34		802,832		860,366
Series 2764, Class ZG 5.500%, due 03/15/34		1,965,836		2,197,346
Series 2835, Class JZ 5.000%, due 08/15/34		436,323		477,420
Series 2921, Class PG 5.000%, due 01/15/35		2,975,917		3,270,275
Series 2983, Class TZ 6.000%, due 05/15/35		1,689,922		1,927,308
Series 3149, Class CZ 6.000%, due 05/15/36		2,043,189		2,317,485
Series T-054, Class 2A 6.500%, due 02/25/43		528,822		624,048
Series T-058, Class 2A 6.500%, due 09/25/43		1,889,118		2,192,666
Series T-075, Class A1 1.272%, due 12/25/363		441,756		439,615
First Horizon Mortgage Pass-Through Trust, Series 2005-AR3, Class 2A1 3.275%, due 08/25/353		31,205		26,904
FNMA Connecticut Avenue Securities, Series 2017-C03, Class 1M2 4.232%, due 10/25/293		680,000		711,778
Series 2017-C04, Class 2M2 4.082%, due 11/25/293		404,000		417,747
Series 2017-C05, Class 1M2 3.424%, due 01/25/303		515,000		513,215
FNMA REMIC, Series 1991-065, Class Z 6.500%, due 06/25/21		812		858
Series 1992-129, Class L 6.000%, due 07/25/22		2,091		2,213
Series 1993-060, Class Z 7.000%, due 05/25/23		37,492		41,062
Series 1993-070, Class Z 6.900%, due 05/25/23		5,932		6,473
Series 1993-096, Class PZ 7.000%, due 06/25/23		30,441		33,226
Series 1993-160, Class ZB 6.500%, due 09/25/23		13,294		14,193
Series 1993-163, Class ZB 7.000%, due 09/25/23		3,192		3,484
Series 1998-066, Class FG 1.532%, due 12/25/283		19,271		19,370
Series 1999-W4, Class A9 6.250%, due 02/25/29		237,120		257,844

	Face amount1		Value
Collateralized mortgage obligations—(continued)
Series 2000-034, Class F 1.682%, due 10/25/303		4,544	$	4,560
Series 2002-080, Class A1 6.500%, due 11/25/42		796,255		900,604
Series 2003-064, Class AH 6.000%, due 07/25/33		2,070,121		2,329,454
Series 2003-W8, Class 2A 7.000%, due 10/25/42		41,340		48,455
Series 2004-T1, Class 1A1 6.000%, due 01/25/44		599,789		681,095
Series 2004-W8, Class 2A 6.500%, due 06/25/44		664,597		764,835
Series 2005-024, Class ZE 5.000%, due 04/25/35		919,363		1,010,239
Series 2005-120, Class ZU 5.500%, due 01/25/36		2,303,158		2,579,618
Series 2006-065, Class GD 6.000%, due 07/25/26		893,218		997,574
Series 2017-C02, Class 2M2 4.882%, due 09/25/293		1,508,000		1,628,144
Trust 1993-037, Class PX 7.000%, due 03/25/23		6,453		6,986
Trust G92-040, Class ZC 7.000%, due 07/25/22		4,221		4,533
GNMA REMIC, Trust Series 2000-009, Class FG 1.826%, due 02/16/303		41,989		42,321
Trust Series 2002-031, Class FW 1.626%, due 06/16/313		46,002		46,223
Trust Series 2003-98, Class Z 6.000%, due 11/20/33		5,698,766		6,532,404
Trust Series 2005-26, Class ZA 5.500%, due 01/20/35		9,444,187		10,749,122
Trust Series 2015-H20, Class FB 1.676%, due 08/20/653		1,656,654		1,652,664
Trust Series 2016-154, Class WF 1.627%, due 11/20/453		1,276,934		1,275,003
Trust Series 2016-H11, Class F 1.876%, due 05/20/663		1,168,981		1,177,872
Trust Series 2016-H15, Class FA 1.876%, due 07/20/663		2,170,695		2,187,118
Trust Series 2016-H19, Class FE 1.446%, due 06/20/613		1,154,204		1,154,622
GreenPoint MTA Trust, Series 2005-AR3, Class 1A1 1.472%, due 08/25/453		1,579,124		1,419,624
GS Residential Mortgage Loan Trust, Series 2005-AR6, Class 2A1 3.124%, due 09/25/353		525,685		534,034
Harborview Mortgage Loan Trust, Series 2004-11, Class 3A1A 1.928%, due 01/19/353		60,703		48,639
Series 2005-4, Class 3A1 3.569%, due 07/19/353		311,459		275,959
Housing Security, Inc., Series 1992-8, Class B 1.734%, due 06/25/243		8,842		8,837

64

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Collateralized mortgage obligations—(continued)
JPMorgan Alternative Loan Trust, Series 2007-A2, Class 12A3 1.422%, due 06/25/373		245,996	$	244,135
JPMorgan Mortgage Trust, 2005-A8, Series Class 1A1 3.080%, due 11/25/353		1,103,287		1,050,027
JPMorgan Mortgage Trust, 2006-A4, Series 2006-A4, Class 2A2 3.345%, due 06/25/363		487,978		440,316
Ludgate Funding PLC, Series 2007-1, Class A2A 0.464%, due 01/01/613,6	GBP	1,952,701		2,438,197
Series 2008-W1X, Class A1 0.904%, due 01/01/613,6	GBP	864,567		1,109,224
Mansard Mortgages Parent Ltd, Series 2007-1X, Class A2 0.475%, due 04/15/473,6	GBP	1,268,408		1,592,433
Morgan Stanley Capital I Trust, Series 2014-CPT, Class B 3.446%, due 07/13/293,7		1,800,000		1,850,405
NAAC Reperforming Loan REMIC Trust, Series 2004-R3, Class A1 6.500%, due 02/25/357		877,713		856,357
Nomura Resecuritization Trust, Series 2014-7R, Class 2A3 1.416%, due 12/26/353,7		2,140,121		2,104,448
Reperforming Loan REMIC Trust, Series 2006-R1, Class AF1 1.572%, due 01/25/363,7		1,193,140		1,063,089
Residential Accredit Loans, Inc., Series 2006-Q03, Class A1 1.442%, due 04/25/463		1,211,040		622,293
Residential Asset Securitization Trust, Series 2006-A14C, Class 2A6 1.682%, due 12/25/363		1,094,713		398,442
Residential Funding Mortgage Security I, Series 2004-S9, Class 1A23 5.500%, due 12/25/34		715,926		717,961
Sequoia Mortgage Trust, Series 2007-3, Class 1A1 1.428%, due 07/20/363		233,909		222,455
Structured ARM Loan Trust, Series 2004-8, Class 3A 3.409%, due 07/25/343		501,771		499,899
Structured Asset Mortgage Investments, Inc., Series 2002-AR3, Class A1 1.888%, due 09/19/323		128,767		125,105
Series 2006-AR3, Class 11A1 1.442%, due 04/25/363		2,081,677		1,881,221
Thornburg Mortgage Securities Trust, Series 2007-4, Class 2A1 3.397%, due 09/25/373		1,378,150		1,371,278
United States Small Business Administration, Series 1999-20K, Class 1 7.060%, due 11/01/19		30,864		31,684
Series 2002-20K, Class 1 5.080%, due 11/01/22		273,866		288,133

	Face amount1		Value
Collateralized mortgage obligations—(concluded)
Series 2005-20H, Class 1 5.110%, due 08/01/25		327,992	$	347,346
Series 2007-20D, Class 1 5.320%, due 04/01/27		1,311,117		1,400,493
Uropa Securities PLC, Series 2007-1, Class A3A 0.497%, due 10/10/403,6	GBP	3,100,000		3,740,876
WaMu Mortgage Pass-Through Certificates, Series 2002-AR6, Class A 2.176%, due 06/25/423		28,058		27,015
Series 2005-AR13, Class A1A1 1.522%, due 10/25/453		852,066		845,437
Series 2005-AR15, Class A1A1 1.492%, due 11/25/453		104,159		100,029
Series 2006-AR2, Class 2A1 2.823%, due 03/25/363		838,010		762,305
Series 2006-AR9, Class 1A 1.776%, due 08/25/463		951,173		863,811
Series 2006-AR9, Class 2A 2.148%, due 08/25/463		773,784		756,666
Wells Fargo Mortgage Backed Securities Trust, Series 2003-M, Class A1 2.999%, due 12/25/333		146,415		147,523
Series 2004-CC, Class A1 3.098%, due 01/25/353		85,375		86,900
Series 2004-DD, Class 2A6 3.111%, due 01/25/353		783,803		801,461
Series 2006-AR2, Class 2A1 3.126%, due 03/25/363		689,790		694,707
WFRBS Commercial Mortgage Trust, Series 2014-C22, Class XA, IO 0.921%, due 09/15/573		7,272,810		337,493
Series 2014-LC14, Class XA, IO 1.361%, due 03/15/473		4,472,443		246,552
Total collateralized mortgage obligations (cost—$109,776,412)				114,879,960
Asset-backed securities—14.30%
Accredited Mortgage Loan Trust, Series 2005-3, Class M3 1.700%, due 09/25/353		1,825,000		1,737,907
Series 2005-4, Class M1 1.632%, due 12/25/353		1,017,500		982,287
Aegis Asset Backed Securities Trust, Series 2005-3, Class M2 1.712%, due 08/25/353		1,640,000		1,554,125
Ally Auto Receivables Trust, Series 2017-3, Class A2 1.530%, due 03/16/20		384,000		383,919
AmeriCredit Automobile Receivables, Series 2016-1, Class A2A 1.520%, due 06/10/19		136,099		136,100
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates, Series 2005-R8, Class M1 1.702%, due 10/25/353		564,325		564,133

65

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Asset-backed securities—(continued)
Series 2005-R8, Class M3 1.742%, due 10/25/353		1,700,000	$	1,604,420
Arbor Realty Commercial Real Estate Notes Ltd., Series 2017-FL1, Class A 2.526%, due 04/15/273,7		2,000,000		2,022,740
Ares Enhanced Loan Investment Strategy IR Ltd., Series 2013-IRAR, Class A1BR 2.713%, due 07/23/253,7		2,500,000		2,500,860
Ares XXXI CLO Ltd., Series 2014-31A, Class A1R 2.380%, due 08/28/253,7		1,700,000		1,699,986
Argent Securities, Inc. Asset-Backed Pass-Through Certificates, Series 2005-W2, Class M1 1.722%, due 10/25/353		770,000		749,047
Atlas Senior Loan Fund II Ltd., Series 2012-2A, Class AR 2.400%, due 01/30/243,7		1,730,692		1,730,735
Atlas Senior Loan Fund VI Ltd., Series 2014-6A, Class AR 2.554%, due 10/15/263,7		1,000,000		1,000,485
Atrium X, Series 10A, Class AR 2.254%, due 07/16/253,7		1,000,000		1,000,091
Avery Point III CLO Ltd., Series 2013-3A, Class AR 2.424%, due 01/18/253,7		700,000		699,997
Avery Point IV CLO Ltd., Series 2014-1A, Class AR 2.414%, due 04/25/263,7		1,300,000		1,300,027
Bayview Opportunity Master Fund IIIb Trust, Series 2017-RN2, Class A1 3.475%, due 04/28/323,7		1,110,140		1,118,816
BMW Vehicle Lease Trust, Series 2017-1, Class A2 1.640%, due 07/22/19		2,000,000		2,000,608
Capital One Multi-Asset Execution Trust 1.390%, due 01/15/21		390,000		389,850
Capital One Multi-Asset Execution Trust, Series 2016-A1, Class A1 1.676%, due 02/15/223		2,060,000		2,071,638
Cent CLO 20 Ltd., Series 2013-20A, Class AR 2.414%, due 01/25/263,7		1,300,000		1,299,996
Chase Issuance Trust, Series 2016-A7, Class A7 1.060%, due 09/16/19		3,285,000		3,283,786
CHEC Loan Trust, Series 2004-2, Class M1 1.872%, due 06/25/343		1,069,334		1,005,325
CIFC Funding Ltd., Series 2014-2A, Class A1LR 2.392%, due 05/24/263,7		2,000,000		2,003,754
Series 2014-5A, Class A2R 2.704%, due 01/17/273,7		2,100,000		2,100,435

	Face amount1		Value
Asset-backed securities—(continued)
Cork Street CLO Designated Activity Co. Series 1A, Class A1BE 1.350%, due 11/27/283,7	EUR	2,400,000	$	2,842,922
CSAB Mortgage Backed Trust, Series 2006-1, Class A6A 6.172%, due 06/25/36		401,142		199,747
Delta Funding Home Equity Loan Trust, Series 1999-003, Class A1A 2.046%, due 09/15/293		48,814		47,802
Dryden 30 Senior Loan Fund, Series 2013-30A, Class A 2.432%, due 11/15/253,7		1,800,000		1,801,694
DT Auto Owner Trust, Series 2017-2, Class A 1.720%, due 05/15/207		1,648,920		1,648,884
FBR Securitization Trust, Series 2005-2, Class M2 1.982%, due 09/25/353		1,625,000		1,587,536
Finn Square CLO Ltd., Series 2012-1A, Class A1R 2.506%, due 12/24/233,7		1,769,577		1,771,538
First Frankin Mortgage Loan Trust, Series 2005-FFH3, Class M2 1.762%, due 09/25/353		973,030		971,401
Flagship VII Ltd., Series 2013-7A, Class A1R 2.427%, due 01/20/263,7		1,500,000		1,500,060
Flatiron CLO Ltd., Series 2014-1A, Class A1R 2.338%, due 07/17/263,7		2,000,000		2,003,908
Fremont Home Loan Trust, Series 2005-2, Class M3 1.982%, due 06/25/353		620,000		602,439
GoldenTree Loan Opportunities IX Ltd., Series 2014-9A, Class AR 2.540%, due 10/29/263,7		3,000,000		3,007,713
GSAA Trust, Series 2005-10, Class M4 1.882%, due 06/25/353		570,000		546,564
GSAMP Trust, Series 2006-HE4, Class A1 1.372%, due 06/25/363		2,287,706		2,196,344
Harbourmaster Pro-Rata CLO 3 BV, Series PR3A, Class A2 0.031%, due 09/20/23	EUR	1,052,294		1,238,545
Hildene CLO II Ltd., Series 2014-2A, Class AR 2.486%, due 07/19/263,7		1,300,000		1,300,328
Home Equity Asset Trust, Series 2005-2, Class M5 2.327%, due 07/25/353		1,000,000		985,083
HSI Asset Securitization Corp. Trust, Series 2006-OPT2, Class M2 1.622%, due 01/25/363		1,745,000		1,663,956
Jamestown CLO V Ltd., Series 2014-5A, Class AR 2.524%, due 01/17/273,7		1,000,000		999,994

66

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Asset-backed securities—(continued)
JPMorgan Mortgage Acquisition Corp., Series 2006-FRE1, Class M1 1.622%, due 05/25/353		2,400,000	$	2,177,694
Series 2006-WMC1, Class A1 1.412%, due 03/25/363		877,602		875,868
JPMorgan Mortgage Acquisition Trust, Series 2006-NC1, Class A1 1.402%, due 04/25/363		1,605,301		1,590,166
Series 2007-CH1, Class MV2 1.512%, due 11/25/363		1,680,000		1,651,539
Series 2007-CH2, Class AV1 1.392%, due 01/25/373		1,244,430		1,236,192
KVK CLO Ltd., Series 2013-2A, Class AR 2.454%, due 01/15/263,7		2,000,000		2,000,074
Lockwood Grove CLO Ltd., Series 2014-1A, Class A1R 2.784%, due 04/25/253,7		1,800,000		1,800,346
Madison Park Funding XIII Ltd., Series 2014-13A, Class AR 2.416%, due 01/19/253,7		1,700,000		1,702,103
Morgan Stanley ABS Capital I, Inc. Trust, Series 2005-HE1, Class M2 1.921%, due 12/25/343		265,386		233,887
Morgan Stanley Dean Witter Capital I, Inc. Trust, Series 2003-NC1, Class M1 2.807%, due 11/25/323		946,211		945,332
MP CLO VI Ltd., Series 2014-2A, Class AR 2.504%, due 01/15/273,7		2,000,000		2,000,074
Navient Student Loan Trust, Series 2016-6A, Class A1 1.712%, due 03/25/663,7		458,202		459,165
Nelder Grove CLO Ltd., Series 2014-1A, Class A1R 2.300%, due 08/28/263,7		2,000,000		1,999,982
New Century Home Equity Loan Trust, Series 2005-B, Class M1 1.712%, due 10/25/353		1,900,000		1,786,231
Series 2005-D, Class A2D 1.562%, due 02/25/363		1,548,606		1,526,973
Nomura Home Equity Loan, Inc. Home Equity Loan Trust, Series 2006-FM1, Class 2A4 1.562%, due 11/25/353		3,000,000		2,550,071
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates, Series 2004-WHQ1, Class M4 2.957%, due 09/25/343		220,733		211,269
Queen Street CLO II BV, Series 2007-1A, Class A2 0.090%, due 08/15/243,7	EUR	302,854		358,519
RASC, Series 2005-KS11 Trust, Class M2 1.652%, due 12/25/353		1,100,000		1,072,711

	Face amount1		Value
Asset-backed securities—(continued)
Santander Drive Auto Receivables Trust, Series 2017-1, Class A1 0.950%, due 03/15/18		38,321	$	38,316
Saranac CLO I Ltd., Series 2013-1A, Class A1A 2.794%, due 10/26/243,7		1,800,000		1,801,508
SASCO Mortgage Loan Trust, Series 2005-GEL1, Class M2 2.582%, due 12/25/343		753,022		744,329
Saxon Asset Securities Trust, Series 2004-1, Class M1 2.027%, due 03/25/353		619,086		605,861
Series 2006-1, Class M1 1.697%, due 03/25/363		2,000,000		1,684,030
Shackleton CLO Ltd., Series 2013-4A, Class AR 2.424%, due 01/13/253,7		1,000,000		999,993
SLM Student Loan Trust, Series 2008-9, Class A 2.814%, due 04/25/233		1,953,675		2,001,706
SoFi Professional Loan Program, Series 2017-A, Class A2A 1.550%, due 03/26/407		1,684,207		1,680,124
Soundview Home Loan Trust, Series 2005-OPT1, Class M2 1.907%, due 06/25/353		1,110,000		1,087,591
Series 2005-OPT3, Class M1 1.702%, due 11/25/353		640,000		602,540
Series 2006-OPT2, Class A3 1.412%, due 05/25/363		1,016,448		1,007,086
Series 2006-OPT3, Class 2A4 1.482%, due 06/25/363		2,675,000		2,341,541
Stoney Lane Funding I Corp. Series 2007-1A, Class A1 1.544%, due 04/18/223,7		53,834		53,787
Structured Asset Securities Corp., Series 2001-SB1, Class A2 3.375%, due 08/25/31		472,190		467,201
Series 2005-WF1, Class M1 1.892%, due 02/25/353		171,474		167,624
Symphony CLO XII Ltd., Series 2013-12A, Class AR 2.334%, due 10/15/253,7		2,000,000		2,000,032
Telos CLO Ltd., Series 2014-6A, Class A1R 2.574%, due 01/17/273,7		2,000,000		2,000,074
TICP CLO III Ltd., Series 2014-3A, Class AR 2.487%, due 01/20/273,7		1,300,000		1,300,226
Toyota Auto Receivables Owner Trust, Series 2017-B, Class A2A 1.460%, due 01/15/20		680,000		679,769
US Residential Opportunity Fund II Trust, Series 2016-3II, Class A 3.598%, due 10/27/367		2,264,229		2,273,230

67

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Asset-backed securities—(concluded)
Utah State Board of Regents, Series 2017-1, Class A 1.966%, due 01/25/573		1,085,679	$	1,082,748
Venture XVI CLO Ltd., Series 2014-16A, Class A1R 2.424%, due 04/15/263,7		1,300,000		1,299,993
VOLT LVII LLC, Series 2017-NPL4, Class A1 3.375%, due 04/25/477		1,062,787		1,066,692
Wood Street CLO IV BV, Series IV-A, Class C 0.358%, due 09/25/223,7	EUR	1,600,000		1,892,683
World Omni Automobile Lease Securitization Trust, Series 2017-A, Class A2 1.680%, due 12/16/19		2,000,000		2,001,394
Total asset-backed securities (cost—$115,090,542)				118,915,799
Corporate notes—38.31%
Airlines—0.99%
Air Canada 2013-1, Class B Pass-Through Trust 5.375%, due 11/15/227		1,681,556		1,773,503
American Airlines 2013-2, Class A Pass-Through Trust 4.950%, due 07/15/24		1,896,648		2,036,298
American Airlines 2014-1, Class B Pass-Through Trust 4.375%, due 04/01/24		654,455		670,554
Continental Airlines 2009-2, Series A Pass-Through Trust 7.250%, due 11/10/19		781,033		864,627
Continental Airlines 2012-2, Class A Pass-Through Trust 4.000%, due 10/29/24		1,315,707		1,378,203
Delta Air Lines, Inc. 3.625%, due 03/15/22		365,000		375,930
Northwest Airlines, Series 2000-1, Class G 7.150%, due 04/01/21		1,090,474		1,155,902
				8,255,017
Apparel—0.01%
Hanesbrands, Inc. 4.875%, due 05/15/267		45,000		45,900
Auto & truck—0.29%
General Motors Co. 6.250%, due 10/02/43		500,000		566,436
General Motors Financial Co., Inc. 3.100%, due 01/15/198		657,000		666,936
3.200%, due 07/06/21		495,000		503,049
4.000%, due 10/06/26		675,000		673,465
				2,409,886

	Face amount1		Value
Corporate notes—(continued)
Banking-non-US—6.13%
Bank of Scotland PLC MTN 6.375%, due 08/16/19	GBP	1,100,000	$	1,600,936
Barclays PLC 2.929%, due 01/10/233		2,000,000		2,043,040
4.337%, due 01/10/28		1,125,000		1,172,519
4.836%, due 05/09/28		785,000		815,769
7.625%, due 11/21/22		1,600,000		1,853,920
7.750%, due 04/10/233		1,700,000		1,755,250
Barclays PLC MTN 3.250%, due 02/12/276	GBP	1,100,000		1,515,623
Cooperatieve Rabobank UA 6.875%, due 03/19/206	EUR	1,400,000		1,942,134
Credit Suisse Group Funding Guernsey Ltd. 3.750%, due 03/26/25		2,000,000		2,034,666
3.800%, due 09/15/22		1,900,000		1,987,856
3.800%, due 06/09/23		3,200,000		3,334,605
Deutsche Bank AG 2.700%, due 07/13/20		700,000		703,261
3.095%, due 05/10/193		3,500,000		3,581,788
4.250%, due 10/14/21		1,100,000		1,158,572
HSBC Holdings PLC 3.400%, due 03/08/21		1,700,000		1,757,848
6.000%, due 05/22/273,9		1,035,000		1,085,560
ING Bank NV 2.625%, due 12/05/227		3,400,000		3,433,803
KBC Bank NV 8.000%, due 01/25/233,6		2,200,000		2,260,473
Lloyds Banking Group PLC 3.000%, due 01/11/22		1,300,000		1,313,911
7.000%, due 06/27/193,6,9	GBP	900,000		1,258,708
Mitsubishi UFJ Financial Group, Inc. 2.950%, due 03/01/21		1,300,000		1,324,822
National Australia Bank Ltd. 2.400%, due 12/07/217		3,300,000		3,313,355
Novo Banco SA 5.000%, due 05/21/196	EUR	1,629,000		1,533,087
Royal Bank of Scotland Group PLC MTN 2.500%, due 03/22/236	EUR	1,800,000		2,270,306
Royal Bank of Scotland PLC MTN 6.934%, due 04/09/186	EUR	1,000,000		1,237,448
Santander UK Group Holdings PLC 3.125%, due 01/08/218		1,700,000		1,731,628
Societe Generale SA MTN 8.250%, due 11/29/183,6,9		400,000		424,416
Westpac Banking Corp. 2.100%, due 02/25/217		2,500,000		2,496,445
				50,941,749
Banking-US—5.13%
Aviation Capital Group Corp. 6.750%, due 04/06/217		4,820,000		5,474,720
Bank of America Corp. 3.950%, due 04/21/25		660,000		676,158
5.750%, due 12/01/17		500,000		506,892
7.625%, due 06/01/198		2,900,000		3,190,374

68

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate notes—(continued)
Banking-US—(concluded)
Bank of America Corp. MTN 4.000%, due 01/22/25		1,500,000	$	1,545,805
4.125%, due 01/22/24		3,700,000		3,940,023
6.875%, due 04/25/18		5,300,000		5,494,801
Capital One NA/Mclean VA 2.350%, due 01/31/20		960,000		964,403
CIT Group, Inc. 5.000%, due 08/15/22		500,000		540,600
Citizens Bank N.A. MTN 2.550%, due 05/13/21		1,700,000		1,706,021
JPMorgan Chase & Co. 6.300%, due 04/23/19		400,000		430,111
JPMorgan Chase Bank N.A. 6.000%, due 10/01/17		2,700,000		2,720,010
Morgan Stanley 3.591%, due 07/22/283		1,310,000		1,313,770
Regions Financial Corp. 3.200%, due 02/08/21		1,800,000		1,844,759
Santander Holdings USA, Inc. 2.642%, due 11/24/173		1,800,000		1,805,733
SunTrust Banks, Inc. 5.050%, due 06/15/223,9		885,000		894,956
Synchrony Financial 2.700%, due 02/03/20		500,000		504,257
The Toronto-Dominion Bank 2.500%, due 01/18/227,8		2,400,000		2,421,967
Wells Fargo & Co. 2.100%, due 07/26/21		1,200,000		1,187,006
2.402%, due 10/31/233		1,400,000		1,428,475
2.500%, due 03/04/21		1,200,000		1,209,276
Wells Fargo & Co. GMTN 2.600%, due 07/22/20		2,800,000		2,847,687
				42,647,804
Building & construction—0.13%
Lennar Corp. 4.750%, due 11/15/22		205,000		217,427
4.875%, due 12/15/23		30,000		31,875
Meritage Homes Corp. 6.000%, due 06/01/25		35,000		37,756
7.000%, due 04/01/22		50,000		56,750
Odebrecht Offshore Drilling Finance Ltd. 6.625%, due 10/01/227		1,425,620		498,967
Taylor Morrison Communities, Inc./ Taylor Morrison Holdings II, Inc. 5.625%, due 03/01/247		170,000		180,625
Toll Brothers Finance Corp. 4.375%, due 04/15/23		25,000		26,094
5.625%, due 01/15/24		45,000		48,938
				1,098,432
Building products—0.04%
CalAtlantic Group, Inc. 5.000%, due 06/15/27		35,000		35,525
5.375%, due 10/01/22		125,000		135,625

	Face amount1		Value
Corporate notes—(continued)
Building products—(concluded)
USG Corp. 4.875%, due 06/01/277		50,000	$	51,625
5.500%, due 03/01/257		120,000		128,100
				350,875
Cable—0.11%
CCO Holdings LLC/CCO Holdings Capital Corp. 5.125%, due 05/01/237		75,000		78,750
5.250%, due 09/30/22		130,000		134,062
5.500%, due 05/01/267		40,000		42,513
5.750%, due 02/15/267		240,000		258,000
CSC Holdings LLC 5.500%, due 04/15/277		200,000		213,000
6.625%, due 10/15/257		200,000		221,375
				947,700
Chemicals—0.04%
CF Industries, Inc. 5.375%, due 03/15/44		25,000		22,500
NOVA Chemicals Corp. 4.875%, due 06/01/247		35,000		35,219
5.000%, due 05/01/257		140,000		140,700
5.250%, due 06/01/277		55,000		55,137
WR Grace & Co-Conn 5.125%, due 10/01/217		20,000		21,500
5.625%, due 10/01/247		15,000		16,125
				291,181
Commercial services—0.89%
Aircastle Ltd. 4.125%, due 05/01/24		80,000		82,100
5.000%, due 04/01/23		40,000		42,560
Avis Budget Car Rental LLC/ Avis Budget Finance, Inc. 5.250%, due 03/15/257		60,000		58,425
5.500%, due 04/01/23		15,000		15,075
CDK Global, Inc. 4.875%, due 06/01/277		80,000		82,200
ERAC USA Finance LLC 2.350%, due 10/15/197		1,650,000		1,660,489
4.200%, due 11/01/467		535,000		509,774
Harland Clarke Holdings Corp. 8.375%, due 08/15/227		80,000		85,600
IHS Markit Ltd. 4.750%, due 02/15/257		70,000		73,675
5.000%, due 11/01/227		110,000		117,997
Iron Mountain US Holdings, Inc. 5.375%, due 06/01/267		135,000		143,437
Iron Mountain, Inc. 5.750%, due 08/15/24		140,000		143,850
Moody's Corp. 2.625%, due 01/15/237		1,700,000		1,695,918
R.R. Donnelley & Sons Co. 6.000%, due 04/01/24		60,000		58,350
6.500%, due 11/15/23		35,000		35,000
7.625%, due 06/15/20		38,000		41,895

69

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate notes—(continued)
Commercial services—(concluded)
7.875%, due 03/15/21		125,000	$	135,313
13.000%, due 02/01/19		25,000		28,125
Republic Services, Inc. 3.550%, due 06/01/228		2,100,000		2,196,648
Service Corp. International 5.375%, due 05/15/24		55,000		58,369
The Hertz Corp. 5.500%, due 10/15/247		50,000		40,750
The ServiceMaster Co. LLC 5.125%, due 11/15/247		70,000		71,925
				7,377,475
Communications equipment—0.27%
QUALCOMM, Inc. 4.800%, due 05/20/45		2,000,000		2,208,894
Computers—1.08%
Apple, Inc. 2.300%, due 05/11/22		885,000		887,929
3.000%, due 06/20/27		1,200,000		1,199,041
3.350%, due 02/09/27		650,000		667,831
4.650%, due 02/23/46		455,000		510,600
Dell International LLC/EMC Corp. 4.420%, due 06/15/217		2,475,000		2,615,234
5.450%, due 06/15/237		945,000		1,041,537
5.875%, due 06/15/217		115,000		120,606
6.020%, due 06/15/267		420,000		468,992
HP, Inc. 4.650%, due 12/09/21		930,000		1,004,820
Seagate HDD Cayman 4.875%, due 03/01/247		320,000		315,579
Western Digital Corp. 10.500%, due 04/01/24		135,000		159,806
				8,991,975
Construction & engineering—0.00%†
AECOM 5.875%, due 10/15/24		35,000		38,194
Consumer products—0.00%†
Spectrum Brands, Inc. 6.625%, due 11/15/22		35,000		36,619
Diversified financials—2.39%
Doric Nimrod Air Finance Alpha Ltd. 2012-1, Class A Pass-Through Trust 5.125%, due 11/30/227		406,119		423,486
First Data Corp. 5.000%, due 01/15/247		190,000		197,600
7.000%, due 12/01/237		80,000		86,300
Goldman Sachs Group, Inc. 2.473%, due 04/23/203		1,800,000		1,831,914
3.750%, due 05/22/258		1,900,000		1,954,260
5.150%, due 05/22/45		565,000		639,355
5.950%, due 01/18/18		2,500,000		2,547,930
6.000%, due 06/15/20		3,400,000		3,754,657

	Face amount1		Value
Corporate notes—(continued)
Diversified financials—(concluded)
LeasePlan Corp. NV 2.500%, due 05/16/187		2,000,000	$	2,005,566
Lehman Brothers Holdings, Inc. MTN 0.000%, due 12/30/165,10		1,900,000		115,900
1.000%, due 01/24/135,10		4,500,000		276,750
1.000%, due 12/30/165,10		900,000		54,900
Navient Corp. 5.875%, due 10/25/24		60,000		61,125
Navient Corp. MTN 4.875%, due 06/17/19		195,000		201,338
6.125%, due 03/25/24		120,000		124,794
8.000%, due 03/25/20		25,000		27,650
8.450%, due 06/15/18		5,000		5,251
OneMain Financial Holdings LLC 6.750%, due 12/15/197		600,000		628,200
OneMain Financial Holdings, LLC 7.250%, due 12/15/217		80,000		84,200
Rio Oil Finance Trust, Series 2014-1 9.250%, due 07/06/247		1,511,776		1,542,012
Springleaf Finance Corp. 5.250%, due 12/15/19		2,200,000		2,290,750
6.125%, due 05/15/22		85,000		89,250
7.750%, due 10/01/21		25,000		28,031
The Goldman Sachs Group, Inc. 3.691%, due 06/05/283		920,000		925,700
				19,896,919
Diversified manufacturing—0.08%
General Electric Co. 5.000%, due 01/21/213,9		594,000		626,248
Electric utilities—1.00%
Duke Energy Corp. 3.750%, due 04/15/248		1,700,000		1,792,633
Dynegy, Inc. 5.875%, due 06/01/23		45,000		43,256
6.750%, due 11/01/19		1,700,000		1,762,687
7.625%, due 11/01/24		45,000		44,550
FirstEnergy Corp. Series B 4.250%, due 03/15/23		1,700,000		1,812,424
NextEra Energy Capital Holdings, Inc. 3.550%, due 05/01/27		1,700,000		1,752,365
NRG Energy, Inc. 6.250%, due 05/01/24		175,000		181,562
6.625%, due 03/15/23		45,000		46,519
6.625%, due 01/15/27		190,000		195,225
7.250%, due 05/15/26		75,000		79,313
Ohio Power Co., Series M 5.375%, due 10/01/21		480,000		534,911
Talen Energy Supply LLC 4.600%, due 12/15/21		65,000		52,000
6.500%, due 06/01/25		45,000		32,513
9.500%, due 07/15/227		15,000		13,238
				8,343,196

70

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate notes—(continued)
Electric-generation—0.04%
Calpine Corp. 5.375%, due 01/15/23		255,000	$	247,669
6.000%, due 01/15/227		65,000		67,031
				314,700
Electric-integrated—1.12%
Entergy Gulf States Louisiana LLC 5.590%, due 10/01/24		2,207,000		2,564,872
Puget Energy, Inc. 6.500%, due 12/15/20		6,000,000		6,733,596
				9,298,468
Electronics—0.47%
Allegion PLC 5.875%, due 09/15/23		35,000		37,727
Amkor Technology, Inc. 6.375%, due 10/01/22		110,000		114,400
Broadcom Corp./Broadcom Cayman Finance Ltd. 3.625%, due 01/15/247		1,800,000		1,848,019
Micron Technology, Inc. 5.250%, due 08/01/237		25,000		26,086
5.500%, due 02/01/25		15,000		15,914
5.625%, due 01/15/267		50,000		52,375
Monongahela Power Co. 3.550%, due 05/15/277		1,800,000		1,822,318
				3,916,839
Energy-exploration & production—0.04%
Antero Resources Corp. 5.125%, due 12/01/22		30,000		30,450
5.375%, due 11/01/21		160,000		164,800
5.625%, due 06/01/23		95,000		97,375
				292,625
Finance-captive automotive—0.73%
International Lease Finance Corp. 5.875%, due 04/01/19		2,100,000		2,230,205
8.875%, due 09/01/17		1,400,000		1,407,970
Park Aerospace Holdings Ltd. 5.250%, due 08/15/227		190,000		193,325
5.500%, due 02/15/247		185,000		188,353
The Depository Trust & Clearing Corp. 4.875%, due 06/15/203,7,9		2,000,000		2,080,000
				6,099,853
Finance-non-captive diversified—0.53%
Ford Motor Co. 4.346%, due 12/08/26		600,000		620,281
Ford Motor Credit Co. LLC 2.459%, due 03/27/20		2,800,000		2,812,376
2.597%, due 11/04/19		1,000,000		1,009,450
				4,442,107
Financial services—3.88%
Ally Financial, Inc. 3.250%, due 09/29/17		130,000		130,234

	Face amount1		Value
Corporate notes—(continued)
Financial services—(concluded)
3.250%, due 11/05/18		30,000	$	30,381
3.600%, due 05/21/18		30,000		30,345
3.750%, due 11/18/19		330,000		337,425
4.750%, due 09/10/18		1,400,000		1,438,920
6.250%, due 12/01/17		145,000		147,030
Citicorp Lease Pass-Through Trust 1999-1 8.040%, due 12/15/195,7		744,348		840,998
Citigroup, Inc. 2.007%, due 04/27/183		5,800,000		5,819,210
2.274%, due 04/25/223		2,000,000		2,012,466
2.882%, due 05/15/183		300,000		303,483
4.400%, due 06/10/25		980,000		1,027,917
Discover Financial Services 4.100%, due 02/09/27		655,000		663,125
HSBC Finance Corp. 6.676%, due 01/15/21		1,400,000		1,588,084
JPMorgan Chase & Co. 2.250%, due 01/23/20		3,150,000		3,173,713
2.750%, due 06/23/20		1,400,000		1,427,251
3.540%, due 05/01/283		770,000		776,802
4.250%, due 10/15/20		2,800,000		2,986,080
4.400%, due 07/22/20		600,000		639,960
Morgan Stanley 2.487%, due 01/20/223,8		2,000,000		2,019,958
5.450%, due 07/15/193,9		395,000		408,825
Morgan Stanley GMTN 2.450%, due 02/01/19		3,500,000		3,529,687
7.300%, due 05/13/19		2,570,000		2,805,728
The Nielsen Co. Luxembourg SARL 5.000%, due 02/01/257		80,000		82,600
5.500%, due 10/01/217		75,000		77,438
				32,297,660
Food processors/beverage/bottling—0.05%
Brazil Minas SPE via State of Minas Gerais 5.333%, due 02/15/286		200,000		199,000
International Game Technology PLC 5.625%, due 02/15/207		200,000		211,840
				410,840
Food products—0.37%
Albertsons Cos. LLC/Safeway, Inc./ New Albertson's, Inc./Albertson's LLC 5.750%, due 03/15/257		70,000		63,350
6.625%, due 06/15/247		140,000		131,600
Aramark Services, Inc. 5.125%, due 01/15/24		220,000		233,660
Post Holdings, Inc. 5.500%, due 03/01/257		90,000		94,950
5.750%, due 03/01/277		25,000		26,500
6.000%, due 12/15/227		70,000		74,025
Smithfield Foods, Inc. 2.700%, due 01/31/205,7		2,400,000		2,414,611
				3,038,696

71

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate notes—(continued)
Gaming—0.13%
AMC Entertainment Holdings, Inc. 5.750%, due 06/15/25		85,000	$	87,045
5.875%, due 02/15/22		50,000		52,063
6.125%, due 05/15/27		15,000		15,430
Boyd Gaming Corp. 6.375%, due 04/01/26		135,000		147,150
6.875%, due 05/15/23		25,000		26,875
Cedar Fair LP/Canada's Wonderland Co./ Magnum Management Corp. 5.375%, due 06/01/24		90,000		94,500
5.375%, due 04/15/277		30,000		31,650
Eldorado Resorts, Inc. 6.000%, due 04/01/25		95,000		101,650
GLP Capital LP/GLP Financing II, Inc. 5.375%, due 11/01/23		80,000		86,420
MGM Resorts International 6.625%, due 12/15/21		50,000		56,250
7.750%, due 03/15/22		20,000		23,498
Regal Entertainment Group 5.750%, due 03/15/22		165,000		171,996
Scientific Games International, Inc. 7.000%, due 01/01/227		65,000		69,225
Shingle Springs Tribal Gaming Authority 9.750%, due 09/01/217		55,000		57,887
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.500%, due 03/01/257		70,000		73,660
				1,095,299
Gas pipelines—0.14%
Kinder Morgan, Inc. 3.050%, due 12/01/19		500,000		509,131
5.550%, due 06/01/45		625,000		670,745
				1,179,876
Health care providers & services—0.11%
Abbott Laboratories 4.900%, due 11/30/46		470,000		519,495
Acadia Healthcare Co., Inc. 5.625%, due 02/15/23		85,000		88,719
Fresenius Medical Care US Finance II, Inc. 5.875%, due 01/31/227		115,000		129,806
Fresenius Medical Care US Finance, Inc. 5.750%, due 02/15/217		30,000		33,075
Hologic, Inc. 5.250%, due 07/15/227		70,000		73,937
LifePoint Health, Inc. 5.875%, due 12/01/23		35,000		37,188
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC 5.500%, due 04/15/257		40,000		37,000
				919,220
Health facilities—0.02%
DaVita, Inc. 5.000%, due 05/01/25		45,000		45,666

	Face amount1		Value
Corporate notes—(continued)
Health facilities—(concluded)
5.125%, due 07/15/24		40,000	$	41,125
Universal Health Services, Inc. 4.750%, due 08/01/227		40,000		41,100
5.000%, due 06/01/267		15,000		15,600
				143,491
Hotels, restaurants & leisure—0.48%
Starbucks Corp. 2.700%, due 06/15/22		1,900,000		1,939,792
4.300%, due 06/15/45		1,900,000		2,066,457
				4,006,249
Insurance—0.19%
American International Group, Inc. 3.375%, due 08/15/20		1,500,000		1,553,196
IT consulting & services—0.14%
Hewlett Packard Enterprise Co. 2.450%, due 10/05/17		667,000		668,149
4.900%, due 10/15/25		480,000		508,247
				1,176,396
Lodging—0.03%
NCL Corp. Ltd. 4.625%, due 11/15/207		255,000		261,694
Machinery—0.03%
CNH Industrial Capital LLC 4.375%, due 04/05/22		55,000		57,681
CNH Industrial NV 4.500%, due 08/15/23		45,000		47,700
Oshkosh Corp. 5.375%, due 03/01/22		15,000		15,563
5.375%, due 03/01/25		15,000		15,787
Sensata Technologies BV 4.875%, due 10/15/237		70,000		72,450
Zebra Technologies Corp. 7.250%, due 10/15/222		35,000		37,253
				246,434
Media—1.84%
Altice Luxembourg SA 7.250%, due 05/15/226	EUR	1,700,000		2,137,595
7.750%, due 05/15/227		160,000		170,000
CBS Radio, Inc. 7.250%, due 11/01/247,8		1,500,000		1,580,625
Charter Communications Operating LLC/ Charter Communications Operating Capital 4.464%, due 07/23/22		3,400,000		3,636,926
4.908%, due 07/23/25		920,000		988,863
5.375%, due 05/01/477		690,000		716,252
6.484%, due 10/23/45		845,000		997,418
DISH DBS Corp. 5.875%, due 11/15/24		120,000		130,200
6.750%, due 06/01/21		85,000		93,819
Gray Television, Inc. 5.125%, due 10/15/247		115,000		117,731

72

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate notes—(continued)
Media—(concluded)
5.875%, due 07/15/267		20,000	$	20,700
Lamar Media Corp. 5.750%, due 02/01/26		45,000		48,881
Liberty Interactive LLC 8.500%, due 07/15/29		50,000		55,500
Match Group, Inc. 6.750%, due 12/15/22		40,000		41,600
MDC Partners, Inc. 6.500%, due 05/01/247		90,000		90,450
Netflix, Inc. 4.375%, due 11/15/267		25,000		25,313
5.500%, due 02/15/22		85,000		92,013
Nielsen Finance LLC/Nielsen Finance Co. 5.000%, due 04/15/227		135,000		139,219
Sinclair Television Group, Inc. 5.125%, due 02/15/277		120,000		118,800
5.625%, due 08/01/247		70,000		72,800
Sirius XM Radio, Inc. 5.000%, due 08/01/277		80,000		81,710
5.375%, due 07/15/267		100,000		104,805
Symantec Corp. 5.000%, due 04/15/257		85,000		89,038
Time Warner Cable LLC 6.750%, due 07/01/18		1,700,000		1,774,562
Univision Communications, Inc. 5.125%, due 05/15/237		280,000		285,600
Viacom, Inc. 4.375%, due 03/15/43		900,000		795,975
5.875%, due 02/28/573		480,000		491,700
Zayo Group LLC/Zayo Capital, Inc. 5.750%, due 01/15/277		125,000		132,500
6.000%, due 04/01/23		40,000		42,150
6.375%, due 05/15/25		15,000		16,256
Ziggo Secured Finance BV 5.500%, due 01/15/277		180,000		186,300
				15,275,301
Media-cable—0.18%
Time Warner Entertainment Co. LP 8.375%, due 03/15/23		1,200,000		1,503,260
Medical providers—0.48%
HCA, Inc. 4.750%, due 05/01/23		55,000		57,887
5.000%, due 03/15/24		170,000		180,455
5.250%, due 06/15/26		85,000		91,986
5.875%, due 03/15/22		200,000		221,200
6.500%, due 02/15/20		2,914,000		3,183,545
7.500%, due 02/15/22		50,000		57,750
Tenet Healthcare Corp. 4.375%, due 10/01/21		30,000		30,525
4.625%, due 07/15/247		72,000		71,640
4.750%, due 06/01/20		20,000		20,725
7.500%, due 01/01/227		95,000		102,600
				4,018,313

	Face amount1		Value
Corporate notes—(continued)
Metals & mining—0.20%
Corp Nacional del Cobre de Chile 4.500%, due 09/16/256		210,000	$	224,283
FMG Resources August 2006 Pty Ltd. 4.750%, due 05/15/227		20,000		20,550
5.125%, due 05/15/247		20,000		20,800
9.750%, due 03/01/227		55,000		62,491
Freeport-McMoRan, Inc. 3.550%, due 03/01/22		60,000		58,200
3.875%, due 03/15/23		160,000		155,000
4.000%, due 11/14/21		85,000		84,894
5.400%, due 11/14/34		100,000		94,094
Glencore Funding LLC 4.000%, due 03/27/277		605,000		608,588
Hudbay Minerals, Inc. 7.250%, due 01/15/237		35,000		37,931
7.625%, due 01/15/257		60,000		65,850
Novelis Corp. 5.875%, due 09/30/267		55,000		57,887
Teck Resources Ltd. 4.750%, due 01/15/22		50,000		52,605
6.250%, due 07/15/41		75,000		81,469
				1,624,642
Oil & gas—0.87%
Apache Corp. 4.750%, due 04/15/43		340,000		346,320
Ascent Resources Utica Holdings LLC/ ARU Finance Corp. 10.000%, due 04/01/227		65,000		66,625
Canadian Natural Resources Ltd. 2.950%, due 01/15/23		860,000		862,089
Concho Resources, Inc. 5.500%, due 04/01/23		85,000		87,762
Continental Resources, Inc. 3.800%, due 06/01/24		140,000		129,500
4.500%, due 04/15/23		45,000		43,875
4.900%, due 06/01/44		30,000		25,650
Crestwood Midstream Partners LP/ Crestwood Midstream Finance Corp. 6.250%, due 04/01/23		90,000		91,687
Energy Transfer Equity LP 5.500%, due 06/01/27		25,000		26,250
5.875%, due 01/15/24		20,000		21,550
7.500%, due 10/15/20		155,000		175,150
Extraction Oil & Gas, Inc./Extraction Finance Corp. 7.875%, due 07/15/217		50,000		52,188
Ferrellgas LP/Ferrellgas Finance Corp. 6.750%, due 06/15/23		75,000		70,688
Hess Corp. 4.300%, due 04/01/27		915,000		908,755
KazMunayGas National Co. JSC 5.750%, due 04/19/476		200,000		192,407
Laredo Petroleum, Inc. 5.625%, due 01/15/22		70,000		70,788
6.250%, due 03/15/23		55,000		56,719

73

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate notes—(continued)
Oil & gas—(concluded)
Newfield Exploration Co. 5.375%, due 01/01/26		60,000	$	62,550
5.625%, due 07/01/24		75,000		78,656
5.750%, due 01/30/22		40,000		42,250
Noble Energy, Inc. 5.250%, due 11/15/43		715,000		750,650
Oasis Petroleum, Inc. 6.875%, due 03/15/22		170,000		168,300
PDC Energy, Inc. 6.125%, due 09/15/247		70,000		71,837
Petroleos Mexicanos 6.500%, due 03/13/277		1,020,000		1,123,020
6.875%, due 08/04/26		253,000		287,130
Precision Drilling Corp. 5.250%, due 11/15/24		85,000		76,287
6.500%, due 12/15/21		25,000		24,563
6.625%, due 11/15/20		23,916		23,677
Range Resources Corp. 5.000%, due 08/15/227		20,000		19,800
5.000%, due 03/15/237		105,000		103,687
Sinopec Group Overseas Development 2014 Ltd. 4.375%, due 04/10/246		200,000		213,500
SM Energy Co. 5.000%, due 01/15/24		205,000		190,650
6.125%, due 11/15/22		20,000		19,594
State Oil Co. of the Azerbaijan Republic MTN 4.750%, due 03/13/236		200,000		197,200
Targa Resources Partners LP/ Targa Resources Partners Finance Corp. 4.250%, due 11/15/23		160,000		157,600
5.125%, due 02/01/257		85,000		87,550
5.375%, due 02/01/277		70,000		72,625
Whiting Petroleum Corp. 5.750%, due 03/15/21		70,000		66,413
6.250%, due 04/01/23		90,000		84,600
WPX Energy, Inc. 5.250%, due 09/15/24		70,000		68,950
				7,219,092
Packaging & containers—0.07%
Ball Corp. 5.000%, due 03/15/22		95,000		102,234
BWAY Holding Co. 5.500%, due 04/15/247		65,000		68,169
Reynolds Group Issuer, Inc./ Reynolds Group Issuer LLC 4.804%, due 07/15/213,7		25,000		25,531
5.125%, due 07/15/237		210,000		221,025
5.750%, due 10/15/20		70,000		71,488
Sealed Air Corp. 5.500%, due 09/15/257		75,000		82,125
				570,572
Personal & household product—0.02%
Edgewell Personal Care Co. 4.700%, due 05/24/22		155,000		166,625

	Face amount1		Value
Corporate notes—(continued)
Pharmaceuticals—1.15%
AbbVie, Inc. 3.200%, due 05/14/26		3,500,000	$	3,500,210
4.450%, due 05/14/46		430,000		448,661
Actavis Funding SCS 3.450%, due 03/15/228		1,400,000		1,456,112
Endo Dac/Endo Finance LLC/Endo Finco, Inc. 6.000%, due 02/01/257		200,000		168,528
Mylan NV 3.950%, due 06/15/26		600,000		613,536
Shire Acquisitions Investments Ireland DAC 1.900%, due 09/23/19		2,500,000		2,497,582
Valeant Pharmaceuticals International, Inc. 4.500%, due 05/15/236	EUR	500,000		487,519
5.875%, due 05/15/237		60,000		51,600
6.500%, due 03/15/227		75,000		79,125
6.750%, due 08/15/187,8		291,000		291,364
				9,594,237
Pipelines—1.17%
Antero Midstream Partners LP/ Antero Midstream Finance Corp. 5.375%, due 09/15/24		155,000		160,037
Cheniere Corpus Christi Holdings LLC 5.125%, due 06/30/277		65,000		67,681
5.875%, due 03/31/25		120,000		130,050
DCP Midstream Operating LP 4.750%, due 09/30/217		60,000		61,650
5.350%, due 03/15/207		25,000		26,250
5.600%, due 04/01/44		35,000		33,250
5.850%, due 05/21/433,7		30,000		27,900
6.450%, due 11/03/367		40,000		42,800
6.750%, due 09/15/377		55,000		59,400
8.125%, due 08/16/30		65,000		77,350
Energy Transfer LP 6.500%, due 02/01/42		1,000,000		1,125,494
MPLX LP 4.125%, due 03/01/27		350,000		356,821
NuStar Logistics LP 4.800%, due 09/01/20		25,000		26,000
Nustar Logistics LP 5.625%, due 04/28/27		35,000		37,100
ONEOK, Inc. 7.500%, due 09/01/23		50,000		60,540
Rockies Express Pipeline LLC 5.625%, due 04/15/207		90,000		95,204
6.850%, due 07/15/187		5,000		5,201
6.875%, due 04/15/407		65,000		71,622
7.500%, due 07/15/387		30,000		34,125
Sabine Pass Liquefaction LLC 5.750%, due 05/15/24		5,800,000		6,520,801
SemGroup Corp./Rose Rock Finance Corp. 5.625%, due 11/15/23		125,000		122,774
Southern Gas Corridor CJSC 6.875%, due 03/24/266		200,000		219,700

74

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate notes—(continued)
Pipelines—(concluded)
Summit Midstream Holdings LLC/ Summit Midstream Finance Corp. 5.750%, due 04/15/25		145,000	$	146,813
The Williams Cos., Inc. 5.750%, due 06/24/44		115,000		119,600
The Williams Cos., Inc., Series A 7.500%, due 01/15/31		85,000		101,150
				9,729,313
Real estate—0.40%
EPR Properties 5.750%, due 08/15/22		525,000		584,848
Equinix, Inc. 5.875%, due 01/15/26		70,000		76,650
ESH Hospitality, Inc. 5.250%, due 05/01/257		210,000		219,450
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. 5.625%, due 05/01/24		20,000		21,800
MPT Operating Partnership LP/ MPT Finance Corp. 5.250%, due 08/01/26		50,000		52,250
5.500%, due 05/01/24		90,000		94,725
6.375%, due 02/15/22		60,000		61,950
6.375%, due 03/01/24		85,000		92,650
Omega Healthcare Investors, Inc. 4.500%, due 01/15/25		345,000		352,775
Ontario Teachers' Cadillac Fairview Properties Trust 3.125%, due 03/20/227		300,000		305,283
Realogy Group LLC/Realogy Co-Issuer Corp. 4.875%, due 06/01/237		90,000		90,900
Sabra Health Care LP/Sabra Capital Corp. 5.500%, due 02/01/21		100,000		103,825
Vesteda Finance BV MTN 2.500%, due 10/27/226	EUR	1,000,000		1,279,807
				3,336,913
Rental auto/equipment—0.01%
United Rentals North America, Inc. 5.750%, due 11/15/24		55,000		58,437
Retail—0.05%
1011778 BC ULC/New Red Finance, Inc. 4.250%, due 05/15/247		40,000		40,225
4.625%, due 01/15/227		40,000		40,900
Dollar Tree, Inc. 5.750%, due 03/01/23		60,000		63,525
KFC Holding Co./Pizza Hut Holdings LLC/ Taco Bell of America LLC 4.750%, due 06/01/277		50,000		51,562
5.250%, due 06/01/267		115,000		121,900
QVC, Inc. 5.450%, due 08/15/34		45,000		43,921

	Face amount1		Value
Corporate notes—(continued)
Retail—(concluded)
Rite Aid Corp. 6.125%, due 04/01/237		30,000	$	29,738
				391,771
Software—0.22%
Activision Blizzard, Inc. 4.500%, due 06/15/47		525,000		531,927
j2 Cloud Services LLC/j2 Global Co-Obligor, Inc. 6.000%, due 07/15/257		40,000		41,650
Microsoft Corp. 4.500%, due 02/06/57		555,000		617,211
MSCI, Inc. 5.250%, due 11/15/247		130,000		138,775
5.750%, due 08/15/257		50,000		54,250
Nuance Communications, Inc. 5.375%, due 08/15/207		43,000		43,645
5.625%, due 12/15/267		10,000		10,650
6.000%, due 07/01/24		135,000		144,281
Open Text Corp. 5.875%, due 06/01/267		95,000		102,838
Rackspace Hosting, Inc. 8.625%, due 11/15/247		160,000		172,800
				1,858,027
Special purpose entity—1.48%
CVS Pass-Through Trust 4.704%, due 01/10/367		3,237,404		3,417,727
Daimler Finance North America LLC 1.882%, due 08/03/173,7		3,800,000		3,800,000
2.000%, due 08/03/187		2,900,000		2,909,216
2.250%, due 09/03/197		2,150,000		2,162,993
				12,289,936
Specialty retail—0.00%†
PetSmart, Inc. 5.875%, due 06/01/257		30,000		28,819
Steel producers/products—0.13%
ArcelorMittal 7.500%, due 10/15/39		280,000		330,400
Vale Overseas Ltd. 6.250%, due 08/10/26		690,000		766,935
				1,097,335
Telecom-integrated/services—0.07%
Frontier Communications Corp. 7.625%, due 04/15/24		205,000		167,075
8.500%, due 04/15/20		45,000		45,787
9.000%, due 08/15/31		10,000		8,050
9.250%, due 07/01/21		65,000		61,750
11.000%, due 09/15/25		300,000		273,750
				556,412
Telecommunication services—0.04%
Altice US Finance I Corp. 5.500%, due 05/15/267		175,000		185,500

75

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate notes—(continued)
Telecommunication services—(concluded)
CommScope Technologies LLC 6.000%, due 06/15/257		135,000	$	145,125
				330,625
Telecommunications—0.91%
Embarq Corp. 7.995%, due 06/01/36		245,000		248,981
Qwest Corp. 6.875%, due 09/15/33		125,000		123,814
SFR Group SA 6.000%, due 05/15/227		340,000		355,718
7.375%, due 05/01/267		800,000		866,000
Sprint Corp. 7.875%, due 09/15/23		225,000		255,375
Telecom Italia Capital SA 6.000%, due 09/30/34		110,000		121,660
Verizon Communications, Inc. 4.125%, due 08/15/46		405,000		358,655
4.600%, due 04/01/21		1,000,000		1,075,311
4.672%, due 03/15/55		675,000		623,140
Virgin Media Finance PLC 6.000%, due 10/15/247		240,000		253,949
Virgin Media Secured Finance PLC 5.000%, due 04/15/277	GBP	2,200,000		3,027,078
Wind Acquisition Finance SA 4.750%, due 07/15/207		215,000		217,419
				7,527,100
Telecommunications equipment—0.01%
CDW LLC/CDW Finance Corp. 5.000%, due 09/01/23		25,000		26,063
5.000%, due 09/01/25		25,000		26,109
				52,172
Telephone-integrated—0.06%
Level 3 Financing, Inc. 5.125%, due 05/01/23		210,000		218,400
5.375%, due 08/15/22		155,000		159,262
Uniti Group LP/Uniti Group Finance, Inc./ CSL Capital LLC 6.000%, due 04/15/237		150,000		154,500
				532,162
Tobacco—0.52%
Imperial Brands Finance PLC 3.500%, due 02/11/237		3,755,000		3,868,330
Reynolds American, Inc. 4.450%, due 06/12/25		405,000		435,567
				4,303,897
Transportation services—0.23%
AP Moller - Maersk A/S 2.550%, due 09/22/197		1,700,000		1,710,543
Transnet SOC Ltd. 4.000%, due 07/26/226		200,000		195,250
				1,905,793

	Face amount1		Value
Corporate notes—(continued)
Utilities—0.36%
HD Supply, Inc. 5.250%, due 12/15/217		85,000	$	89,197
5.750%, due 04/15/247		40,000		42,850
IPALCO Enterprises, Inc. 3.450%, due 07/15/20		2,800,000		2,842,000
				2,974,047
Wireless telecommunication services—0.23%
CenturyLink, Inc. 5.625%, due 04/01/20		70,000		73,675
5.800%, due 03/15/22		25,000		25,969
6.750%, due 12/01/23		30,000		31,837
Sprint Capital Corp. 6.900%, due 05/01/19		1,700,000		1,808,375
				1,939,856
Wireless telecommunications—0.53%
AT&T, Inc. 3.800%, due 03/15/22		975,000		1,020,236
3.900%, due 08/14/2711		545,000		544,587
4.750%, due 05/15/46		860,000		827,043
5.450%, due 03/01/47		905,000		957,810
Sprint Corp. 7.125%, due 06/15/24		240,000		263,100
T-Mobile USA, Inc. 6.000%, due 03/01/23		170,000		179,933
Telefonica Emisiones SAU 4.103%, due 03/08/27		570,000		595,509
				4,388,218
Total corporate notes (cost—$311,674,113)				318,474,582
Loan assignments3—2.70%
Airlines—0.08%
American Airlines, Inc. 2016 Term Loan B 3.726%, due 12/14/23		340,000		341,615
United Airlines, Inc. 2017 Term Loan B 3.561%, due 04/01/24		329,175		331,068
				672,683
Broadcast—0.32%
AlixPartners LLP 2017 Term Loan B 4.296%, due 04/04/24		329,175		331,591
Capital Automotive LP 2017 1st Lien Term Loan 4.240%, due 03/24/24		330,000		333,053
Clark Equipment Company 2017 Term Loan B 3.929%, due 05/18/24		324,188		326,214
Emerald Expositions Holding, Inc. 2017 Term Loan B 4.296%, due 05/22/24		330,000		333,920
Gates Global LLC 2017 USD Term Loan B 4.546%, due 04/01/24		329,175		331,489
Infor (US), Inc. Term Loan B6 4.046%, due 02/01/22		329,175		329,234
Numericable Group SA USD Term Loan B11 4.061%, due 07/31/25		329,175		328,352

76

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Loan assignments3—(continued)
Broadcast—(concluded)
UPC Financing Partnership USD Term Loan AP 3.976%, due 04/15/25		330,000	$	331,650
				2,645,503
Chemicals—0.07%
Axalta Coating Systems US Holdings, Inc. Term Loan B1 3.296%, due 06/01/24		330,000		331,270
Huntsman International LLC Term Loan B2 4.234%, due 04/01/23		272,938		274,218
				605,488
Commercial services & supplies—0.08%
Bright Horizons Family Solutions, Inc. 2016 Term Loan B 3.484%, due 11/07/23		330,372		332,354
TransUnion LLC Term Loan B2 3.734%, due 04/09/23		328,306		328,792
				661,146
Computer software & services—0.08%
BMC Software Finance, Inc. 2017 Term Loan 5.234%, due 09/10/22		327,768		329,790
Change Healthcare Holdings, Inc. 2017 Term Loan B 3.984%, due 03/01/24		329,175		330,985
				660,775
Computers & peripherals—0.04%
Dell, Inc. 2017 Term Loan B 3.740%, due 09/07/23		328,350		330,208
Electric utilities—0.04%
Talen Energy Supply LLC 2017 Term Loan B2 5.234%, due 04/15/24		329,010		317,906
Electric-generation—0.04%
Vistra Operations Co. LLC 2016 Term Loan B2 4.476%, due 12/14/23		343,275		345,771
Finance-other—0.02%
Flying Fortress, Inc. New Term Loan 3.546%, due 04/30/20		150,000		150,469
Food products—0.02%
Albertsons LLC 2016 Term Loan B4 3.984%, due 08/25/21		161,191		160,688
Food-wholesale—0.04%
Pinnacle Foods Finance LLC 2017 Term Loan B 3.227%, due 02/02/24		328,350		329,690
Gaming—0.08%
Caesars Entertainment Operating Co. Exit Term Loan 0.000%, due 03/31/2412		330,000		331,445

	Face amount1		Value
Loan assignments3—(continued)
Gaming—(concluded)
CityCenter Holdings LLC 2017 Term Loan B 3.732%, due 04/18/24		330,000	$	331,238
				662,683
Health care providers & services—0.04%
Envision Healthcare Corp. 2016 Term Loan B 4.300%, due 12/01/23		333,531		335,409
Hotels, restaurants & leisure—0.12%
Eldorado Resorts LLC 2017 Term Loan B 3.563%, due 04/17/24		329,175		328,352
Four Seasons Holdings, Inc. New 1st Lien Term Loan 3.734%, due 11/30/23		343,275		345,956
Pizza Hut Holdings LLC, 1st Lien Term Loan B 3.226%, due 06/16/23		329,175		330,762
				1,005,070
Industrial-other—0.04%
Rexnord LLC 2016 Term Loan B 3.979%, due 08/21/23		343,275		344,837
IT consulting & services—0.04%
Gartner, Inc. 2016 Term Loan A 3.234%, due 03/20/22		325,875		327,097
Lodging—0.54%
Hilton Worldwide Finance LLC Term Loan B2 3.232%, due 10/25/23		4,461,358		4,481,077
Media—0.16%
CSC Holdings LLC 2017 1st Lien Term Loan 3.476%, due 07/17/25		329,175		328,435
Gray Television, Inc. 2017 Term Loan B 3.724%, due 02/07/24		328,350		329,719
Nielsen Finance LLC Term Loan B4 3.224%, due 10/04/23		329,175		329,550
Sinclair Television Group, Inc. Term Loan B2 3.490%, due 01/03/24		338,300		338,892
				1,326,596
Oil & gas—0.08%
Energy Transfer Equity LP 2017 Term Loan B 3.974%, due 02/02/24		330,000		331,155
TPF II Power LLC Term Loan B 5.234%, due 10/02/23		327,957		329,698
				660,853
Oil, gas & consumable fuel—0.04%
Kenan Advantage Group, Inc. 2015 Term Loan 4.234%, due 07/31/22		328,331		328,413
Packaging & containers—0.06%
BWAY Holding Co. 2017 Term Loan B 4.474%, due 04/03/24		330,000		331,650
Signode Industrial Group US, Inc. Term Loan B 3.984%, due 05/04/21		189,625		190,219
				521,869

77

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Loan assignments3—(continued)
Pharmaceuticals—0.07%
RPI Finance Trust Term Loan B6 3.296%, due 03/27/23		330,000	$	331,465
Valeant Pharmaceuticals International, Inc. Term Loan B F1 5.980%, due 04/01/22		276,722		281,847
				613,312
Real estate—0.04%
ESH Hospitality, Inc. 2017 Term Loan B 3.734%, due 08/30/23		328,350		329,939
Retail-specialty—0.04%
Bass Pro Group LLC Term Loan B 6.296%, due 12/16/23		345,000		336,016
Semiconductor equipment & products—0.03%
ON Semiconductor Corp. 2017 Term Loan B 3.484%, due 03/31/23		250,258		251,134
Software—0.04%
Avast Software BV 2017 Term Loan B 4.546%, due 09/29/23		325,875		328,668
Support-services—0.08%
ServiceMaster Co. 2016 Term Loan B 3.734%, due 11/08/23		343,275		344,820
TMS International Corp. New Term Loan B 4.672%, due 10/16/20		317,410		317,410
				662,230
Telecom-integrated/services—0.04%
Frontier Communications Corp. 2017 Term Loan B1 4.980%, due 06/15/24		330,000		316,661
Telecommunication services—0.18%
Altice US Finance I Corp. 2017 Incremental Term Loan 3.483%, due 07/28/25		330,000		329,010
Consolidated Communications, Inc. Delayed Draw Term Loan B2 4.240%, due 10/04/23		345,000		344,903
Telenet International Finance Sarl Term Loan AI 3.976%, due 06/30/25		330,000		331,650
Telesat Canada 2017 Term Loan B 4.300%, due 11/17/23		467,650		472,130
				1,477,693
Telecommunications—0.03%
Greeneden US Holdings II LLC 2017 Term Loan B 5.007%, due 12/01/23		273,625		275,508
Wireless telecommunication services—0.12%
CenturyLink, Inc. 2017 Term Loan B 2.750%, due 01/31/25		330,000		325,360

	Face amount1		Value
Loan assignments3—(concluded)
Wireless telecommunication services—(concluded)
Sprint Communications, Inc. 1st Lien Term Loan B 3.750%, due 02/02/24		329,175	$	330,245
Virgin Media Bristol LLC USD Term Loan I 3.976%, due 01/31/25		345,000		346,684
				1,002,289
Total loan assignments (cost—$22,326,111)				22,467,681
Non-US government obligations—2.80%
Argentine Republic Government International Bond 2.500%, due 12/31/3813		725,000		469,437
Bermuda Government International Bond 4.854%, due 02/06/246		200,000		217,055
Brazilian Government International Bond 4.875%, due 01/22/21		220,000		233,090
7.125%, due 01/20/37		110,000		127,875
8.250%, due 01/20/34		100,000		127,500
Bundesrepublik Deutschland 2.500%, due 07/04/446	EUR	600,000		908,358
3.250%, due 07/04/426	EUR	900,000		1,530,798
Colombia Government International Bond 6.125%, due 01/18/41		120,000		139,320
8.125%, due 05/21/24		100,000		127,375
Croatia Government International Bond 5.500%, due 04/04/236		400,000		444,000
6.625%, due 07/14/206		120,000		132,660
Dominican Republic International Bond 5.875%, due 04/18/246		150,000		161,250
6.850%, due 01/27/456		100,000		109,500
Egypt Government International Bond 5.750%, due 04/29/206		100,000		103,665
6.875%, due 04/30/406		100,000		95,750
7.500%, due 01/31/276		200,000		214,936
Ghana Government International Bond 10.750%, due 10/14/306		200,000		249,282
Hungary Government International Bond 7.625%, due 03/29/41		150,000		227,437
Indonesia Government International Bond 4.125%, due 01/15/256		200,000		207,750
6.625%, due 02/17/376		140,000		176,745
7.750%, due 01/17/386		100,000		141,125
Iraq International Bond 5.800%, due 01/15/286		250,000		229,004
Ivory Coast Government International Bond 5.750%, due 12/31/326,13		357,050		349,909
Japan Bank for International Cooperation/Japan 2.875%, due 07/21/27		2,200,000		2,201,228
Japan Finance Organization for Municipalities 2.125%, due 04/13/217		2,000,000		1,975,602
2.625%, due 04/20/227		2,500,000		2,513,680
Japan International Cooperation Agency 2.750%, due 04/27/27		1,300,000		1,294,588
Kuwait International Government Bond 2.750%, due 03/20/227		1,700,000		1,712,410

78

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Non-US government obligations—(concluded)
Mexico Government International Bond 5.550%, due 01/21/45		260,000	$	294,580
5.750%, due 10/12/10		126,000		132,867
Morocco Government International Bond 4.250%, due 12/11/226		200,000		211,250
Nigeria Government International Bond 6.750%, due 01/28/216		400,000		427,000
Panama Government International Bond 6.700%, due 01/26/36		50,000		65,375
8.875%, due 09/30/27		80,000		114,600
Poland Government International Bond 3.250%, due 04/06/26		200,000		203,632
Republic of South Africa Government International Bond 5.500%, due 03/09/20		100,000		106,623
5.875%, due 05/30/22		100,000		109,740
Romanian Government International Bond 4.875%, due 01/22/246		50,000		55,000
6.750%, due 02/07/226		160,000		185,600
Russian Foreign Bond 5.000%, due 04/29/206		200,000		211,750
Russian Foreign Bond - Eurobond 4.875%, due 09/16/236		200,000		216,016
Serbia International Bond 4.875%, due 02/25/206		400,000		419,543
Slovenia Government International Bond 5.250%, due 02/18/246		200,000		229,561
South Africa Government Bond 6.500%, due 02/28/41	ZAR	44,650,000		2,368,181
South Africa Government International Bond 6.875%, due 05/27/19		100,000		107,756
Sri Lanka Government International Bond 6.200%, due 05/11/276		200,000		206,001
6.250%, due 07/27/216		200,000		213,250
Turkey Government International Bond 5.125%, due 03/25/22		450,000		471,937
5.625%, due 03/30/21		110,000		117,225
7.375%, due 02/05/25		180,000		210,600
Uruguay Government International Bond 5.100%, due 06/18/50		197,500		204,610
Total non-US government obligations (cost—$23,722,256)				23,304,026
Municipal bonds and notes—1.51%
Education—0.10%
New York City Transitional Finance Authority Building Aid Revenue Fiscal 2008, Series S-1 5.000%, due 01/15/25		100,000		101,904
Will County Community High School District No. 210 Lincoln-Way (Capital Appreciation) (AGM Insured) 0.000%, due 01/01/2114		780,000		744,198
				846,102

	Face amount1		Value
Municipal bonds and notes—(concluded)
Media & Photography—0.77%
Alabama Economic Settlement Authority, Series B 3.163%, due 09/15/25		2,000,000	$	2,038,000
City of Chicago, Series B 7.375%, due 01/01/33		2,200,000		2,413,730
Illinois Taxable Pension 5.100%, due 06/01/33		505,000		505,419
State of Illinois 5.877%, due 03/01/19		1,335,000		1,390,122
				6,347,271
Transportation—0.41%
Harris County Metropolitan Transportation Authority (Build America Bonds), Series C 6.875%, due 11/01/38		3,100,000		3,433,343
Utilities—0.23%
Cincinnati Water System Revenue (Build America Bonds), Series B 6.458%, due 12/01/34		100,000		109,990
Metropolitan Water District Southern California (Build America Bonds) 5.906%, due 07/01/25		1,700,000		1,812,608
				1,922,598
Total municipal bonds and notes (cost—$11,723,434)				12,549,314
Time deposit—0.42%
Sumitomo Mitsui Banking Corp. 1.945%, due 09/15/17 (cost—$3,500,000)		3,500,000		3,500,000
Short-term US government obligation15—0.16%
US Treasury Bill 1.157%, due 05/24/18 (cost—$1,287,576)		1,300,000		1,287,601
Repurchase agreement—0.69%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $5,622,723 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$5,855,821); proceeds: $5,741,008 (cost—$5,741,000)		5,741,000		5,741,000
	Number of Contracts
Options purchased—0.00%†
Put options—0.00%†
90-Day Eurodollar Futures, strike @ $98.25, expires 03/19/18		320		18,000
US Treasury Note 10 Year Futures, strike @ $109.5, expires 08/25/2017		533		533
US Treasury Note 10 Year Futures, strike @ $110, expires 11/24/2017		12		12

79

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

	Number of contracts		Value
Options purchased—(concluded)
Put options—(concluded)
US Treasury Note 10 Year Futures, strike @ $111, expires 08/25/2017		400	$	400
US Treasury Note 10 Year Futures, strike @ $114, expires 08/25/2017		23		23
US Treasury Note 10 Year Futures, strike @ $115, expires 08/25/2017		83		83
US Treasury Note 10 Year Futures, strike @ $116.5, expires 08/25/2017		79		79
US Treasury Note 5 Year Futures, strike @ $109.25, expires 08/25/2017		986		986
Total options purchased (cost—$46,105)				20,116
	Notional amount
Swaptions purchased5—0.02%
Put swaptions—0.02%
3 Month USD LIBOR Interest Rate Swap, strike @ 2.905%, expires 08/20/18 (Counterparty: MSCI; pay floating rate); underlying swap terminates 08/22/48	USD	3,600,000		110,428

	Notional amount			Value
Swaptions purchased5—(concluded)
Put swaptions—(concluded)
3 Month USD LIBOR Interest Rate Swap, strike @ 2.940%, expires 08/20/18 (Counterparty: GSB; pay floating rate); underlying swap terminates 08/22/48	USD	1,200,000		$	34,153
Total swaptions purchased (cost—$472,360)					144,581
	Number of shares
Investment of cash collateral from securities loaned—0.41%
Money market fund—0.41%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$3,370,668)		3,370,668			3,370,668
Total investments before investments sold short (cost—$958,748,499)—116.70%					970,231,567
	Face amount1
Investment sold short—(0.18)%
FNMA TBA 4.000% (proceeds—$1,543,730)		(1,470,000	)		(1,547,807	)
Liabilities in excess of other assets—(16.52)%					(137,293,686	)
Net assets—100.00%				$	831,390,074

For a listing of defined portfolio acronyms, counterparty acronyms and currency type abbreviation that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes before investments sold short was $966,560,351; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	16,909,296
Gross unrealized depreciation		(13,238,080	)
Net unrealized appreciation	$	3,671,216

Foreign exchange options written

Notional amount (000)		Call options	Counterparty	Expiration date	Premiums received		Current value			Unrealized appreciation (depreciation)
USD	6,200	USD Call/BRL Put, strike @ BRL 3.30	CSI	09/21/17	$	47,430	$	(39,066	)	$	8,364
USD	4,100	USD Call/BRL Put, strike @ BRL 3.51	JPMCB	09/27/17		63,550		(7,438	)		56,112
USD	5,100	USD Call/BRL Put, strike @ BRL 3.55	CSI	10/02/17		76,500		(8,486	)		68,014
USD	1,300	USD Call/BRL Put, strike @ BRL 4.25	DB	11/17/17		37,960		(386	)		37,574
USD	2,000	USD Call/BRL Put, strike @ BRL 6.30	CSI	01/11/18		106,500		(4	)		106,496
					$	331,940	$	(55,380	)	$	276,560

80

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

Foreign exchange options written—(concluded)

Notional amount (000)		Put options	Counterparty	Expiration date	Premiums received		Current value			Unrealized appreciation (depreciation)
AUD	2,500	AUD Put/USD Call, strike @ USD 0.79	GSI	08/18/17	$	8,037	$	(7,076	)	$	961
AUD	3,100	AUD Put/USD Call, strike @ USD 0.79	BOA	08/30/17		9,484		(10,007	)		(523	)
					$	17,521	$	(17,083	)	$	438
					$	349,461	$	(72,463	)	$	276,998

Foreign exchange options written activity for the year ended July 31, 2017 was as follows:

	Premiums received
Foreign exchange options outstanding at July 31, 2016	$	530,831
Foreign exchange options written		1,265,639
Foreign exchange options exercised		(295,235	)
Foreign exchange options terminated in closing purchase transactions		(89,267	)
Foreign exchange options expired prior to exercise		(1,062,507	)
Foreign exchange options outstanding at July 31, 2017	$	349,461

Options written

Number of contracts		Call options	Counterparty	Expiration date	Premiums received		Current value			Unrealized appreciation
	320	Eurodollar Futures, strike @ 98.25	GSI	03/19/18	$	33,900	$	(10,000	)	$	23,900

Options written activity for the year ended July 31, 2017 was as follows:

	Number of contracts			Premiums received
Options outstanding at July 31, 2016		290		$	100,791
Options written		1,384			304,212
Options exercised		(388	)		(107,850	)
Options expired prior to exercise		(966	)		(263,253	)
Options outstanding at July 31, 2017		320		$	33,900

Swaptions written⁵

Notional amount (000)		Put swaptions	Counterparty	Pay/ receive floating rate	Expiration date	Premiums received		Current value			Unrealized appreciation
USD	15,800	3 Month USD LIBOR Interest Rate Swap strike @ 2.800%, terminating 08/22/23	MSCI	Pay	08/20/18	$	352,560	$	(50,140	)	$	302,420
USD	5,100	3 Month USD LIBOR Interest Rate Swap strike @ 2.800%, terminating 08/22/23	GSB	Pay	08/20/18		113,591		(16,184	)		97,407
						$	466,151	$	(66,324	)	$	399,827

81

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

Swaptions written⁵—(concluded)

Swaptions written activity for the year ended July 31, 2017 was as follows:

	Premiums received
Swaptions outstanding at July 31, 2016	$	804,611
Swaption written		273,360
Swaptions exercised		—
Swaption terminated in closing purchase transactions		(239,055	)
Swaption expired prior to exercise		(372,765	)
Swaption outstanding at July 31, 2017	$	466,151

Futures contracts

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
Interest rate futures buy contracts:
	19	CAD	Canada Government Bond 10 Year Futures	September 2017	$	2,217,939	$	2,092,248	$	(125,691	)
	50	EUR	Euro Bund Futures	August 2017		642		592		(50	)
	214	EUR	German Euro Bund Futures	September 2017		41,341,662		41,027,325		(314,337	)
	35	EUR	Italian Government Bond Futures	September 2017		5,591,698		5,644,834		53,136
	2	USD	Australian Dollar Futures	September 2017		150,598		159,880		9,282
	27	USD	Brazilian Real Futures	September 2017		849,804		860,760		10,956
	4	USD	British Pound Futures	September 2017		324,969		330,425		5,456
	61	USD	Mexican Peso Futures	September 2017		1,662,651		1,699,155		36,504
US Treasury futures buy contracts:
	41	USD	US Long Bond Futures	September 2017		6,264,112		6,271,719		7,607
	2,028	USD	US Treasury Note 10 Year Futures	September 2017		255,192,955		255,306,187		113,232
	449	USD	US Treasury Note 5 Year Futures	September 2017		53,031,667		53,048,649		16,982
	18	USD	US Ultra Long Bond Futures	September 2017		2,941,661		2,961,000		19,339
	7	USD	US Ultra Treasury Note 10 Year Futures	September 2017		941,088		945,328		4,240
					$	370,511,446	$	370,348,102	$	(163,344	)
					Proceeds
Interest rate futures sell contracts:
	60	CAD	Canada Government Bond 10 Year Futures	September 2017	$	6,946,856	$	6,607,098	$	339,758
	34	EUR	Euro Bund Futures	August 2017		14,585		3,622		10,963
	60	EUR	Euro Bund Futures	August 2017		30,245		4,262		25,983
	90	EUR	Euro Bund Futures	August 2017		37,945		14,916		23,029
	47	EUR	Euro Bund Futures	August 2017		17,757		12,241		5,516
	49	EUR	Euro Bund Futures	September 2017		26,444		22,042		4,402
	12	EUR	German Euro BOBL Futures	September 2017		1,883,341		1,875,992		7,349
	72	EUR	German Euro Bund Futures	September 2017		13,886,165		13,803,586		82,579
	21	EUR	German Euro Buxl 30 Year Futures	September 2017		4,101,803		4,030,272		71,531
	109	EUR	German Euro Schatz Futures	September 2017		14,457,509		14,460,868		(3,359	)

82

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

Futures contracts—(concluded)

Number of contracts		Currency		Expiration date	Proceeds		Current value		Unrealized appreciation (depreciation)
Interest rate futures sell contracts—(concluded)
	8	EUR	Italian Government Bond Futures	September 2017	$	1,270,351	$	1,290,248	$	(19,897	)
	401	EUR	Mid-Term Euro-OAT Futures	September 2017		70,972,731		70,626,455		346,276
	135	GBP	United Kingdom Long Gilt Bond Futures	September 2017		22,706,455		22,446,564		259,891
	18	USD	30-Year Interest Rate Swap Futures	September 2017		1,838,289		1,834,875		3,414
	123	USD	90-Day Eurodollar Futures	September 2017		30,322,593		30,341,025		(18,432	)
	490	USD	90-Day Eurodollar Futures	December 2017		120,809,314		120,723,750		85,564
	157	USD	90-Day Eurodollar Futures	March 2018		38,666,357		38,649,475		16,882
	173	USD	90-Day Eurodollar Futures	June 2018		42,566,403		42,562,325		4,078
	106	USD	90-Day Eurodollar Futures	December 2018		26,004,690		26,040,225		(35,535	)
	74	USD	90-Day Eurodollar Futures	March 2019		18,143,168		18,169,775		(26,607	)
	13	USD	Euro Fx Futures with American Style Options	September 2017		1,845,365		1,927,331		(81,966	)
	15	USD	Japanese Yen Futures	September 2017		1,684,982		1,704,563		(19,581	)
	2	USD	New Zealand Dollar Futures	September 2017		145,807		150,060		(4,253	)
	21	USD	South African Rand Futures	September 2017		807,565		790,125		17,440
US Treasury futures sell contracts:
	121	USD	US Long Bond Futures	September 2017	$	18,543,344	$	18,509,219	$	34,125
					$	437,730,064	$	436,600,914	$	1,129,150
									$	965,806

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
BB	BRL	1,473,704	USD	470,727	08/02/17	$	(1,864	)
BB	BRL	1,473,704	USD	459,355	09/05/17		(10,171	)
BB	USD	462,339	BRL	1,473,704	08/02/17		10,253
BNP	BRL	3,008,103	USD	960,840	08/02/17		(3,805	)
BNP	EUR	5,929,000	USD	6,754,139	08/02/17		(264,614	)
BNP	USD	961,000	BRL	3,008,103	08/02/17		3,646
BNP	USD	14,298,171	JPY	1,598,800,000	08/02/17		204,074
BOA	USD	420,770	EUR	369,000	08/02/17		16,053
CITI	EUR	1,852,000	USD	2,158,967	08/02/17		(33,432	)
CITI	USD	1,542,101	JPY	174,100,000	08/02/17		37,109
CITI	USD	1,433,753	SGD	1,949,000	09/18/17		5,398
CSI	BRL	3,007,930	USD	961,000	08/02/17		(3,590	)
CSI	KRW	17,937,572,420	USD	15,954,436	09/18/17		(81,192	)
CSI	USD	960,785	BRL	3,007,930	08/02/17		3,805
CSI	USD	311,819	INR	20,439,741	12/04/17		1,862
CSI	USD	5,339,000	TWD	161,637,190	09/18/17		24,872
DB	BRL	1,473,704	USD	441,374	08/02/17		(31,217	)
DB	USD	470,727	BRL	1,473,704	08/02/17		1,864
DB	USD	2,062,419	CHF	1,970,000	08/15/17		(23,563	)

83

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(concluded)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
GSI	GBP	1,722,000	USD	2,244,325	08/02/17	$	(27,683	)
GSI	NZD	227,000	USD	165,461	08/02/17		(5,016	)
GSI	USD	1,320,437	CHF	1,323,000	08/15/17		48,805
GSI	USD	1,549,000	TWD	46,748,820	09/18/17		2,343
HSBC	SGD	15,256,408	USD	11,054,567	09/18/17		(210,841	)
HSBC	USD	3,719,355	SGD	5,052,000	09/18/17		11,068
HSBC	USD	110,406	ZAR	1,514,000	08/04/17		4,438
JPMCB	GBP	2,940,000	USD	3,830,455	08/02/17		(48,583	)
JPMCB	JPY	381,500,000	USD	3,425,935	08/02/17		(34,539	)
JPMCB	MYR	2,596,159	USD	609,713	09/18/17		4,510
JPMCB	TWD	738,411,616	USD	24,329,872	09/18/17		(174,050	)
JPMCB	USD	588,031	CHF	555,000	08/15/17		(13,632	)
JPMCB	USD	4,868,709	EUR	4,270,000	08/02/17		186,118
JPMCB	USD	782,173	IDR	10,614,870,000	10/13/17		8,285
JPMCB	USD	1,767,581	JPY	195,600,000	08/02/17		6,649
JPMCB	USD	1,700,466	JPY	189,000,000	08/15/17		14,833
						$	(371,807	)

Centrally cleared credit default swap agreements on credit indices—buy protection¹⁷

Referenced obligations	Notional amount (000)		Termination date	Payments made by the Portfolio16			Upfront payments received (made)		Value			Unrealized depreciation
CMBX.NA.AAA.8 Index	USD	4,272	06/20/21		1.000	%	$	132,686	$	(420,828	)	$	(288,142	)

Centrally cleared credit default swap agreements on corporate issues—sell protection¹⁹

Referenced obligations	Notional amount (000)		Termination date	Payments received by the Portfolio16			Upfront payments received (made)			Value			Unrealized appreciation		Credit spread18
Airbus Group Finance BV, bond, 5.500%, due 09/25/18	EUR	1,700	12/20/17		1.000	%	$	(3,206	)	$	9,637		$	6,431		0.07	%
Anheuser-Busch InBev Finance, Inc. bond, 2.25%, due 09/24/20	EUR	1,600	12/20/17		1.000			(5,737	)		8,802			3,065		0.11
Berkshire Hathaway, Inc. bond, 1.550%, due 02/09/18	USD	2,200	12/20/21		1.000			(16,000	)		55,776			39,776		0.43
Exelon Generation Co. LLC, bond, 6.200%, due 10/01/17	USD	2,000	12/20/21		1.000			78,687			(16,853	)		61,834		1.23
MetLife, Inc. bond, 4.75%, due 02/08/21	USD	1,900	12/20/21		1.000			19,975			43,295			63,270		0.49
Sprint Communications, Inc. bond, 7.000%, due 08/15/20	USD	2,800	12/20/19		5.000			(115,386	)		276,619			161,233		1.00
Tesco PLC, bond, 6.000%, due 12/14/29	EUR	3,000	06/20/22		1.000			141,436			(49,304	)		92,132		1.32

84

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

Centrally cleared credit default swap agreements on corporate issues—sell protection¹⁹—(concluded)

Referenced obligations	Notional amount (000)		Termination date	Payments received by the Portfolio16			Upfront payments received (made)			Value		Unrealized appreciation		Credit spread18
Volkswagen International Finance N.V. bond, 5.375%, due 05/22/18	EUR	2,000	12/20/17		1.000	%	$	(5,248	)	$	10,792	$	5,544		0.13	%
							$	94,521		$	338,764	$	433,285

Centrally cleared credit default swap agreements on credit indices—sell protection¹⁹

Referenced obligations	Notional amount (000)		Termination date	Payments received by the Portfolio16			Upfront payments received (made)			Value		Unrealized appreciation		Credit spread18
5Y Markit CDX North American Investment Grade 27 Index	USD	2,100	12/20/21		1.000	%	$	(34,273	)	$	47,711	$	13,438		0.49	%
5Y Markit CDX North American Investment Grade 28 Index	USD	54,000	06/20/22		1.000			(982,635	)		1,134,986		152,351		0.57
							$	(1,016,908	)	$	1,182,697	$	165,789

Centrally cleared interest rate swap agreements

Notional amount (000)		Termination date	Payments made by the Portfolio16			Payments received by the Portfolio16	Value			Unrealized appreciation (depreciation)
CAD	500	12/16/46		1.750	%	3 Month Canadian Dollar	$	78,765		$	85,237
EUR	1,600	03/23/48		6 Month EURIBOR		1.500%		(75,365	)		(19,270	)
GBP	10,500	09/20/22		1.000		6 Month EURIBOR		(48,795	)		14,679
GBP	15,800	09/20/27		1.500		6 Month EURIBOR		(370,717	)		12,894
JPY	3,620,000	03/18/26		0.300		6 Month EURIBOR		(226,395	)		(33,087	)
JPY	580,000	09/20/27		0.300		6 Month EURIBOR		(7,690	)		21,718
USD	25,000	12/16/19		2.000		3 Month USD LIBOR		(232,041	)		89,679
USD	4,400	12/16/20		2.000		3 Month USD LIBOR		(39,514	)		13,227
USD	23,100	06/28/21		1.450		3 Month USD LIBOR		255,417			255,417
							$	(666,335	)	$	440,494

85

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

Credit default swap agreements on corporate issues—sell protection¹⁹

Counterparty	Referenced obligations	Notional amount (000)		Termination dates	Payments received by the Portfolio16			Upfront payments received (made)		Value			Unrealized appreciation		Credit spread18
BNP	Petroleo Brasileiro SA, bond, 8.375%, due 12/10/18	USD	1,300	03/20/20		1.000	%	$	101,138	$	(18,432	)	$	82,706		1.60	%
GSI	Petroleo Brasileiro SA, bond, 8.375%, due 12/10/18	USD	1,500	03/20/20		1.000			121,349		(21,268	)		100,081		1.60
								$	222,487	$	(39,700	)	$	182,787

Credit default swap agreement on credit indices—sell protection¹⁹

Counterparty	Referenced obligations	Notional amount (000)		Termination date	Payments received by the Portfolio16			Upfront payments received (made)		Value			Unrealized appreciation
BOA	CMBX.NA.AAA.9 Index	USD	3,200	09/17/58		0.500	%	$	241,422	$	(27,494	)	$	213,928

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	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	$	—	$	236,975,628	$	—	$	236,975,628
Government national mortgage association certificates		—		23,338		—		23,338
Federal home loan mortgage corporation certificates		—		3,009,482		—		3,009,482
Federal housing administration certificates		—		—		7,700		7,700
Federal national mortgage association certificates		—		105,545,637		14,454		105,560,091
Collateralized mortgage obligations		—		114,879,960		—		114,879,960
Asset-backed securities		—		118,915,799		—		118,915,799
Corporate notes		—		318,474,582		—		318,474,582
Loan assignments		—		22,467,681		—		22,467,681
Non-US government obligations		—		23,304,026		—		23,304,026
Municipal bonds and notes		—		12,549,314		—		12,549,314
Time deposit		—		3,500,000		—		3,500,000
Short-term US government obligation		—		1,287,601		—		1,287,601
Repurchase agreement		—		5,741,000		—		5,741,000
Options purchased		20,116		—		—		20,116
Swaptions purchased		—		144,581		—		144,581
Investment of cash collateral from securities loaned		—		3,370,668		—		3,370,668

86

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

Fair valuation summary—(concluded)

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Futures contracts	$	1,615,514		$	—		$	—	$	1,615,514
Forward foreign currency contracts		—			595,985			—		595,985
Swap agreements		—			1,921,800			—		1,921,800
Total	$	1,635,630		$	972,707,082		$	22,154	$	974,364,866
Liabilities
Investment sold short	$	—		$	(1,547,807	)	$	—	$	(1,547,807	)
Foreign exchange options written					(72,463	)				(72,463	)
Options written		(10,000	)		—			—		(10,000	)
Swaptions written		—			(66,324	)		—		(66,324	)
Futures contracts		(649,708	)		—			—		(649,708	)
Forward foreign currency contracts		—			(967,792	)		—		(967,792	)
Swap agreements		—			(1,554,696	)		—		(1,554,696	)
Total	$	(659,708	)	$	(4,209,082	)	$	—	$	(4,868,790	)

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Level 3 rollforward disclosure

The following is a rollforward of the Portfolio's investments that was valued using unobservable inputs for the year ended July 31, 2017:

	Federal home loan mortgage corporation certificates			Federal housing administration certificates			Federal national mortgage association certificates			Asset-backed securities			Total
Beginning balance	$	1,060,265		$	9,717		$	18,660		$	1,599,938		$	2,688,580
Purchases		—			—			—			—			—
Sales		(80,783	)		(2,216	)		(4,405	)		(1,600,000	)		(1,687,404	)
Accrued discounts/(premiums)		—			(57	)		—			—			(57	)
Total realized gain/(loss)		(50	)		(73	)		—			—			(123	)
Net change in unrealized appreciation/depreciation		96,242			329			199			62			96,832
Transfers into Level 3		—			—			—			—			—
Transfers out of Level 3		(1,075,674	)		—			—			—			(1,075,674	)
Ending balance	$	—		$	7,700		$	14,454		$	—		$	22,154

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at July 31, 2017, was $(6,062). Transfers out of Level 3 represent the value at the end of the period. At July 31, 2017, securities were transferred from Level 3 to Level 2 as the valuation is based primarily on observable inputs from an established pricing source.

Portfolio footnotes

^†  Amount represents less than 0.005%.

¹  In US dollars unless otherwise indicated.

²  Security, or portion thereof, pledged as collateral for investments sold short, written options, futures and/or swap agreements.

³  Variable or floating rate security. The interest rate shown is the current rate at the period end and changes periodically.

⁴  Security is being fair valued by a valuation committee under the direction of the board of trustees.

⁵  Illiquid investment at the period end.

87

PACE Strategic Fixed Income Investments

Portfolio of investments—July 31, 2017

Portfolio footnotes—(concluded)

⁶  Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

⁷  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁸  Security, or portion thereof, was on loan at the period end.

⁹  Perpetual investment. Date shown reflects the next call date.

¹⁰  Bond interest in default.

¹¹  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.

¹²  Position is unsettled. Contract rate was not determined at July 31, 2017 and does not take effect until settlement.

¹³  Step bond—coupon rate increases in increments to maturity. The rate disclosed is the rate at the period end; the maturity date disclosed is the ultimate maturity date.

¹⁴  Rate shown reflects annualized yield at the period end on zero coupon bond.

¹⁵  Rate shown is the discount rate at the date of purchase unless otherwise noted.

¹⁶  Payments made or received are based on the notional amount.

¹⁷  If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 underlying securities comprising 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 or underlying securities comprising the referenced obligation.

¹⁸  Credit spreads, 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 or other credit event occurring 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. Credit spreads are unaudited.

¹⁹  If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 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 or underlying securities comprising the referenced obligation.

See accompanying notes to financial statements.
88

PACE Municipal Fixed Income Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares returned -0.13% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Bloomberg Barclays US Municipal 3-15 Year Blend Index (the "benchmark") returned 0.43%, and the Lipper Intermediate Municipal Debt Funds category posted a median return of -0.17%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 91. 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 3.

Advisor's comments (Unaudited)²

(Please note that while the subadvisor outperformed the benchmark on a gross-of-fees basis, the Portfoliounderperformed net of fees, as reported in the "Performance at a glance" table. As stated in footnote two, the comments that follow address performance on a gross-of-fees basis.)

The Portfolio outperformed the benchmark during the reporting period. The primary drivers of relative performance were positive contributions from both sector allocation and security selection, while interest rate positioning was mixed but positive overall.

From a sector standpoint, revenue bonds outperformed both general obligation and pre-refunded securities during the period, as investors sought income-oriented securities with attractive yield profiles. The Portfolio benefited from being overweight to the revenue bond sector, with the strongest performance generated by hospital, airport, broker-dealer pre-paid gas and tobacco-securitization bonds. The Portfolio's bias toward some of the more liquid and higher quality essential service revenue sectors, such as water/sewer and utility, was a detractor from results, as these bonds were generally laggards throughout the reporting period.

Within the credit quality spectrum, investment grade A-rated and BBB-rated bonds outperformed their higher-grade, lower yielding AA-rated and AAA-rated counterparts. The Portfolio benefited from being overweight A-rated revenue bonds. However, a modest underweight to BBB-rated bonds, which also performed well, was a mitigating factor. Our security selection strategy was a positive contributor overall as lagging performance from the special tax sector was more than offset by favorable results among airport and tobacco-securitization bonds.

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust – PACE Municipal Fixed Income Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisor:

Standish Mellon Asset Management Company LLC ("Standish")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Gina Toth, CFA, Fred Lee, CFA, Diana To and Anthony Karaminas, CFA

Standish: Christine L. Todd

Objective:

High current income exempt from federal income tax

Investment process:

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

89

PACE Municipal Fixed Income Investments

Advisor's comments (Unaudited) – concluded

Overall, credit fundamentals were relatively stable during the reporting period and were highlighted by increases in state tax revenues, though the rate of their growth has slowed. Local property tax collections exceeded the high levels reached before the financial crisis 10 years ago and reflected a robust housing market. Municipal credits facing onerous budget and pension challenges included Connecticut, Illinois and New Jersey, while Puerto Rico continues to face a severe fiscal crisis. The Portfolio benefited from having no exposure to state-backed Illinois general obligation bonds. They came under pressure from rating agencies and investors largely due to budget delays and pension funding challenges. Our overweight to Texas Permanent School Fund bonds detracted from results as this high-grade issuer generally lagged the broader national market.

Municipal yields rose sharply during the first half of the reporting period as the US election results fueled heightened uncertainty regarding future impacts on infrastructure spending, tax reform and economic growth. A favorable technical environment, relatively light supply and positive flows into mutual funds helped municipal rates partially recover during the second half of the reporting period, although rate levels ended July higher than where they started a year ago. The strongest municipal bond returns were produced by shorter bond maturities, which showed lower price sensitivity to changes in rates than their longer duration counterparts. Yield curve exposure was additive to performance due to the Portfolio's overweight to the strong-performing 5 to 10-year maturity range, plus having positive yield carry versus the benchmark. A modestly long duration posture detracted from returns versus the benchmark during the period, as 10-year AAA municipal yields increased 0.54% over the 12 months ended July 31, 2017.

No derivatives were used 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.

90

PACE Municipal Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		(0.29	)%		2.28	%		3.79	%
Class C2		(0.80	)		1.75			3.27
Class Y3		(0.16	)		2.51			4.03
Class P4		(0.13	)		2.52			4.04
After deducting maximum sales charge
Class A1		(2.53	)		1.82			3.55
Class C2		(1.53	)		1.75			3.27
Bloomberg Barclays US Municipal 3-15 Year Blend Index5		0.43			2.79			4.54
Lipper Intermediate Municipal Debt Funds median		(0.17	)		2.19			3.75

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		(1.05	)%		2.40	%		3.79	%
Class C2		(1.56	)		1.89			3.27
Class Y3		(0.84	)		2.63			4.03
Class P4		(0.81	)		2.66			4.05
After deducting maximum sales charge
Class A1		(3.26	)		1.94			3.55
Class C2		(2.27	)		1.89			3.27

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, supplemented from time to time, were as follows: Class A—0.92% and 0.87%; Class C—1.42% and 1.37%; Class Y—0.72% and 0.65%; and Class P—0.67% and 0.62%. 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to: (1) waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed, prior to August 1, 2017, 0.90% for Class A, 1.40% for Class C, 0.65% for Class Y, and 0.65% for Class P; and (2) waive its management fees through November 30, 2017 to reflect a lower management fee paid by the Portfolio to UBS AM. Effective August 1, 2017, the expense caps noted in item (1) of the previous sentence are as follows: 0.82% for Class A, 1.32% for Class C, 0.57% for Class Y, and 0.57% for Class P, and the waiver of management fees noted in item (2) of the previous sentence is terminated. The Portfolio has agreed to repay UBS AM for any waived fees/reimbursed expenses (pursuant to item (1)) 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 and that UBS AM has not waived the right to do so. 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 AM. Upon termination of the agreement, however, UBS AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 2.25%. Class A shares bear ongoing 12b-1 service fees of 0.25% annually.

²  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 of 0.25% and 0.50% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The Bloomberg Barclays 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.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

91

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 Bloomberg Barclays US Municipal 3-15 Year Blend Index over the 10 years ended July 31, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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.

PACE Municipal Fixed Income Investments

92

PACE Municipal Fixed Income Investments

Portfolio statistics—July 31, 2017 (unaudited)

Characteristics
Weighted average duration		4.96 yrs.
Weighted average maturity		5.83 yrs.
Average coupon		5.04	%
Top five states1	Percentage of net assets
Texas		13.2	%
New York		12.7
Illinois		11.0
California		7.9
Florida		5.1
Total		49.9	%
Credit rating2	Percentage of total investments
AAA and agency backed securities		9.4	%
AA		42.7
A		31.4
BBB		4.4
Non-rated		11.0
Cash equivalents and other assets less liabilities		1.1
Total		100.0	%

¹  The Portfolio is actively managed and its composition will vary over time.

²  Credit ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Financial Services LLC, an independent rating agency.

93

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Municipal bonds and notes—98.89%
Alabama—1.12%
Alabama Federal Aid Highway Finance Authority, Series A 5.000%, due 09/01/29	$	2,000,000	$	2,473,980
Lower Alabama Gas District Gas Project Revenue, Series A 5.000%, due 09/01/31		1,500,000		1,777,890
				4,251,870
Arizona—0.94%
Maricopa County Industrial Development Authority (Banner Health Obligation Group), Series A 5.000%, due 01/01/31		3,000,000		3,570,270
Arkansas—0.43%
University of Arkansas, (Fayetteville Campus), Series A 5.000%, due 11/01/29		1,385,000		1,619,397
California—7.90%
California Infrastructure & Economic Development Bank Revenue Refunding (Academy of Motion Picture Arts) 5.000%, due 11/01/28		1,205,000		1,430,889
California State 5.000%, due 09/01/23		1,000,000		1,183,040
5.000%, due 12/01/24		2,000,000		2,413,200
5.000%, due 09/01/25		500,000		522,400
5.000%, due 08/01/29		3,000,000		3,646,740
5.000%, due 08/01/30		1,000,000		1,207,610
California State Public Works Board Lease Revenue (Judicial Council Project), Series A 5.000%, due 03/01/24		1,750,000		2,069,865
California State Public Works Board Lease Revenue Refunding, Series H 5.000%, due 12/01/23		2,705,000		3,282,031
Los Angeles Department of Airports (Los Angeles International Airport), Series A, AMT 5.000%, due 05/15/32		2,000,000		2,263,240
Los Angeles Department of Water & Power Revenue Power Systems, Series B 5.000%, due 07/01/25		5,000,000		5,568,100
North Natomas Community Facilities District No. 4 Special Tax, Series E 5.000%, due 09/01/19		1,385,000		1,481,271
Northern California Power Agency Refunding (Hydroelectric Project 1), Series A 5.000%, due 07/01/28		1,845,000		2,141,418
Orange County Transportation Authority Toll Road Revenue Refunding (Senior Lien 91 Express Lanes) 5.000%, due 08/15/29		1,000,000		1,164,070
Stockton Unified School District (AGM Insured) 5.000%, due 07/01/23		1,270,000		1,490,802
University of California Revenue Unrefunded General, Series Q 5.250%, due 05/15/23		110,000		111,465
				29,976,141

	Face amount		Value
Municipal bonds and notes—(continued)
Colorado—2.88%
Denver City & County Airport Revenue Series A, AMT 5.500%, due 11/15/19	$	2,500,000	$	2,743,725
Subseries A, AMT 5.500%, due 11/15/26		7,000,000		8,190,420
				10,934,145
Connecticut—0.57%
Hartford County Metropolitan District Revenue (Green Bonds), Series A 5.000%, due 11/01/29		1,870,000		2,154,277
District of Columbia—1.41%
Metropolitan Washington, Airport Authority Airport System Revenue, AMT 5.000%, due 10/01/28		2,500,000		3,032,900
Metropolitan Washington, Airport Authority Airport System Revenue, Series A, AMT 5.000%, due 10/01/22		2,000,000		2,338,580
				5,371,480
Florida—5.05%
Broward Port Facilities Revenue Refunding, Series B, AMT 5.000%, due 09/01/21		2,000,000		2,260,360
Citizens Property Insurance Corp. Revenue, Series A-1 5.000%, due 06/01/25		10,000,000		12,089,800
JEA Electric System Revenue, Series A 5.000%, due 10/01/24		1,200,000		1,418,148
Miami Beach Redevelopment Agency Tax Increment Revenue Refunding 5.000%, due 02/01/28		1,000,000		1,161,760
Orange County Florida Tourist Development Tax Revenue Refunding, Series B 5.000%, due 10/01/30		1,885,000		2,250,539
				19,180,607
Georgia—1.56%
Atlanta Development Authority Revenue Senior Lien, Series A-1
5.000%, due 07/01/32		2,000,000		2,311,980
Fulton County Development Authority of Georgia Revenue (Piedmont Healthcare, Inc. Project), Series A 5.000%, due 07/01/27		1,500,000		1,798,080
Main Street Natural Gas, Inc. Revenue, Series A 5.500%, due 09/15/28		1,500,000		1,823,805
				5,933,865
Illinois—10.97%
Chicago O'Hare International Airport Revenue Refunding, Series A, AMT 5.000%, due 01/01/29		2,500,000		2,844,450
Chicago O'Hare International Airport Revenue Senior Lien, Series B 5.000%, due 01/01/35		1,750,000		2,009,997

94

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Municipal bonds and notes—(continued)
Illinois—(concluded)
Chicago O'Hare International Airport Revenue, Series A, AMT 5.000%, due 01/01/23	$	1,150,000	$	1,305,549
Cook County Forest Preservation District (AMBAC Insured) 5.000%, due 11/15/19		5,180,000		5,564,149
Illinois Development Finance Authority Revenue School District Program School District No. U-46 (AGM Insured) 5.150%, due 01/01/19		2,000,000		2,100,180
Illinois Finance Authority Revenue Advocate Health Care Network 5.000%, due 06/01/27		3,000,000		3,420,840
Illinois Finance Authority Revenue University of Chicago, Series A 5.000%, due 10/01/29		2,440,000		2,770,937
Illinois Municipal Electric Agency Power Supply System Revenue Refunding, Series A 5.000%, due 02/01/32		2,500,000		2,860,925
Illinois Toll Highway Authority Toll Highway Revenue Refunding Senior, Series A-1 5.000%, due 01/01/25		1,250,000		1,362,175
Railsplitter Tobacco Settlement Authority 5.500%, due 06/01/23		6,115,000		6,967,798
6.000%, due 06/01/28		2,500,000		2,848,375
Southwestern Illinois Development Authority Health Facility Revenue (Memorial Group, Inc.) 7.125%, due 11/01/30		1,500,000		2,003,280
University of Illinois, (Auxiliary Facilities System), Series A 5.000%, due 04/01/27		4,000,000		4,450,840
University of Illinois, Series A 5.000%, due 04/01/30		1,000,000		1,115,360
				41,624,855
Indiana—0.92%
Indiana Finance Authority Revenue Refunding (Stadium Project), Series A 5.250%, due 02/01/35		1,000,000		1,177,650
Richmond Hospital Authority Revenue Refunding Reid Hospital & Health Care, Series A 5.000%, due 01/01/30		2,055,000		2,313,334
				3,490,984
Kentucky—0.62%
Pikeville Hospital Revenue Refunding & Improvement (Pikeville Medical Center) 6.000%, due 03/01/22		2,055,000		2,357,208
Louisiana—2.89%
East Baton Rouge Sewerage Commission Revenue Refunding, Series B 5.000%, due 02/01/28		1,000,000		1,171,800
New Orleans Aviation Board Revenue, Series B (AGM Insured), AMT 5.000%, due 01/01/28		1,500,000		1,759,050

	Face amount		Value
Municipal bonds and notes—(continued)
Louisiana—(concluded)
State of Louisiana State Highway Improvement Revenue, Series A 5.000%, due 06/15/29	$	3,500,000	$	4,084,920
Tobacco Settlement Funding Corp., (Asset-Backed Refunding Bonds), Series A 5.000%, due 05/15/27		4,000,000		3,972,200
				10,987,970
Maryland—0.74%
Maryland Economic Development Corp. (Purple Line Light Rail Project) Revenue Bonds, Series A, AMT 5.000%, due 03/31/24		1,000,000		1,127,480
Maryland Health & Higher Educational Facilities Authority Revenue Peninsula Regional Medical Center 5.000%, due 07/01/32		1,500,000		1,693,095
				2,820,575
Massachusetts—4.76%
Commonwealth of Massachusetts Federal Highway Grant Anticipation Notes (Accelerated Bridge Program), Series A 5.000%, due 06/15/23		2,500,000		2,928,275
Massachusetts Educational Financing Authority, Series K, AMT 5.000%, due 07/01/22		2,500,000		2,827,600
Massachusetts State College Building Authority Revenue Refunding, Series B 5.000%, due 05/01/29		2,500,000		2,892,625
Massachusetts State School Building Authority Dedicated Sales Tax Revenue, Series B 5.000%, due 08/15/28		3,000,000		3,510,900
Massachusetts State, Series B 5.000%, due 08/01/22		5,000,000		5,893,900
				18,053,300
Michigan—2.67%
Detroit Sewer Disposal Revenue Senior Lien, Series A (AGM Insured) 5.250%, due 07/01/19		2,500,000		2,688,775
Great Lakes Water Authority Water Supply System Revenue Refunding Senior Lien, Series D 5.000%, due 07/01/26		1,100,000		1,301,707
Michigan State Finance Authority Revenue Refunding (Beaumont Health Credit Group) 5.000%, due 08/01/33		2,415,000		2,726,052
Michigan State Finance Authority Revenue Refunding (Detroit School District), Series A 5.000%, due 05/01/22		1,485,000		1,697,489
Michigan State Finance Authority Revenue Refunding Senior Lien (Detroit Water And Sewerage), Series C-3 (AGM Insured) 5.000%, due 07/01/30		1,500,000		1,717,845
				10,131,868

95

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Municipal bonds and notes—(continued)
Minnesota—0.28%
Minneapolis-St Paul Metropolitan Airports Commission Senior Revenue, Series C 5.000%, due 01/01/34	$	900,000	$	1,067,796
Missouri—3.60%
City of Kansas City, Missouri Airport Revenue, Series A, AMT 5.000%, due 09/01/23		5,000,000		5,674,950
Missouri Joint Municipal Electric Utility Commission Revenue Refunding Prairie State Project, Series A 5.000%, due 12/01/25		2,300,000		2,785,369
Missouri State Health & Educational Facilities Authority Health Facilities Revenue Coxhealth, Series A 5.000%, due 11/15/34		2,000,000		2,274,240
Missouri State Health & Educational Facilities Authority Health Facilities Revenue Saint Luke's Health System 5.000%, due 11/15/28		1,000,000		1,188,210
Missouri State Health & Educational Facilities Authority Health Facilities Revenue SSM Health Care, Series A 5.000%, due 06/01/27		1,500,000		1,743,645
				13,666,414
Nebraska—1.94%
City of Lincoln, Nebraska Electric System Revenue 5.000%, due 09/01/22		3,790,000		4,478,264
Public Power Generation Agency Revenue Refunding Whelan Energy Center Unit 2, Series A 5.000%, due 01/01/30		2,500,000		2,889,525
				7,367,789
Nevada—0.83%
Las Vegas Valley Water District, Series B 5.000%, due 06/01/25		2,700,000		3,157,272
New Jersey—2.82%
New Jersey Economic Development Authority Revenue Refunding, Series WW 5.250%, due 06/15/31		2,100,000		2,231,922
Series XX 5.000%, due 06/15/26		1,600,000		1,715,008
New Jersey Economic Development Authority Water Facilities Revenue Refunding American Water Co., Series C, AMT 5.100%, due 06/01/23		1,000,000		1,090,330
New Jersey Health Care Facilities Financing Authority Revenue Refunding (Virtua Health) 5.000%, due 07/01/25		1,500,000		1,768,755
New Jersey State Higher Education Assistance Authority Revenue, Series 1A, AMT 5.000%, due 12/01/18		1,000,000		1,043,410
5.000%, due 12/01/21		2,550,000		2,845,163
				10,694,588

	Face amount		Value
Municipal bonds and notes—(continued)
New Mexico—0.26%
New Mexico Municipal Energy Acquisition Authority Gas Supply Revenue, Subseries B 1.472%, due 02/01/191	$	1,000,000	$	997,360
New York—12.67%
Metropolitan Transportation Authority New York Dedicated Tax Fund, Subseries B-1
5.000%, due 11/15/29		2,500,000		2,899,200
Metropolitan Transportation Authority Revenue Refunding, Series D 5.000%, due 11/15/30		1,500,000		1,798,935
Nassau County New York Industrial Development, Series B 5.000%, due 10/01/21		4,045,000		4,648,231
New York City Health & Hospital Corp. Revenue Health System, Series A 5.000%, due 02/15/22		3,500,000		3,838,625
New York City Municipal Finance Authority Water & Sewer Systems Revenue Refunding, Series DD 5.000%, due 06/15/29		1,500,000		1,800,660
New York City Municipal Water Finance Authority Water & Sewer Systems Revenue (Second General Resolution), Series HH 5.000%, due 06/15/29		2,500,000		2,847,600
New York City Transitional Finance Authority Future Tax Secured Revenue, Series B 5.000%, due 02/01/23		2,500,000		2,823,875
Subseries I 5.000%, due 05/01/23		2,435,000		2,915,693
New York City, Series E 5.000%, due 08/01/24		3,065,000		3,662,982
Series H 5.000%, due 08/01/25		2,990,000		3,576,160
New York State Dorm Authority State Personal Income Tax Revenue General Purpose, Series C 5.000%, due 03/15/25		2,320,000		2,629,766
New York State Dorm Authority State University Dormitory Facilities, Series A 5.000%, due 07/01/34		2,500,000		2,975,700
New York State Thruway Authority General Revenue, Series I 5.000%, due 01/01/20		1,000,000		1,092,500
New York State Urban Development Corp. Empire State Development State Personal Income Tax Revenue Bonds, Series E 5.000%, due 03/15/31		2,000,000		2,341,880
New York Transportation Development Corp. Special Facility Revenue Refunding (Laguardia Airport Terminal B Redevelopment), Series A, AMT 5.000%, due 07/01/34		1,000,000		1,098,500
New York Transportation Development Corp. Special Facility Revenue Refunding (Terminal One Group Association), AMT 5.000%, due 01/01/22		1,500,000		1,707,675
Port Authority of New York & New Jersey Revenue Consolidated (One Hundred Eighty-Fifth), AMT 5.000%, due 09/01/22		2,400,000		2,804,040

96

PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Municipal bonds and notes—(continued)
New York—(concluded)
Triborough Bridge & Tunnel Authority Revenue, Subseries 2003B-2 1.172%, due 01/01/331	$	1,500,000	$	1,493,985
TSASC, Inc. Tobacco Settlement Bonds, Series A 5.000%, due 06/01/34		1,000,000		1,118,010
				48,074,017
North Carolina—1.77%
North Carolina Capital Improvement Obligations, Series C 5.000%, due 05/01/30		1,000,000		1,133,280
North Carolina Medical Care Commission Health Care Facilities Revenue Refunding (Vidant Health) 5.000%, due 06/01/32		1,500,000		1,712,490
North Carolina Turnpike Authority Senior Lien (AGM Insured) 5.000%, due 01/01/26		1,250,000		1,509,025
University of North Carolina Chapel Hill Revenue, Series A 5.000%, due 12/01/27		2,160,000		2,354,854
				6,709,649
Ohio—0.07%
Kent State University Unrefunded Revenue General Receipts, Series B (Assured Guaranty Insured) 5.000%, due 05/01/21		250,000		267,228
Oregon—0.70%
Oregon State Facilities Authority Revenue Refunding (Legacy Health Project), Series A 5.000%, due 06/01/32		2,300,000		2,666,137
Pennsylvania—2.92%
Allegheny County Port Authority Special Revenue Refunding Transportation 5.000%, due 03/01/25		1,000,000		1,127,010
Pennsylvania Turnpike Commission Turnpike Refunding Subordinated Revenue, Series B 5.000%, due 06/01/28		2,000,000		2,351,560
Pennsylvania Turnpike Commission Turnpike Revenue, Series B 5.000%, due 12/01/32		1,250,000		1,445,038
Philadelphia School District Refunding, Series E 5.000%, due 09/01/18		1,000,000		1,033,360
Series F 5.000%, due 09/01/30		2,650,000		2,989,173
University of Pittsburgh of the Commonwealth System of Higher Education Capital Project, Series B 5.500%, due 09/15/21		2,000,000		2,146,580
				11,092,721
Rhode Island—1.09%
Rhode Island Health & Educational Building Corp. Higher Educational Facilities Revenue (Brown University) 5.000%, due 09/01/22		3,500,000		4,133,710

	Face amount		Value
Municipal bonds and notes—(continued)
South Carolina—0.76%
Columbia Waterworks & Sewer Systems Refunding 5.000%, due 02/01/28	$	2,500,000	$	2,881,725
Tennessee—1.94%
Metropolitan Government of Nashville & Davidson County, Series D 5.000%, due 07/01/23		5,000,000		5,549,000
Tennessee Energy Acquisition Corp. Gas Revenue, Series A 5.250%, due 09/01/26		1,500,000		1,798,230
				7,347,230
Texas—13.25%
Arlington Independent School District School Building Bond, Series A (PSF-GTD) 5.000%, due 02/15/25		1,400,000		1,657,964
5.000%, due 02/15/26		1,295,000		1,526,274
Central Texas Regional Mobility Authority Senior Lien Revenue, Series A 5.000%, due 01/01/35		1,100,000		1,250,656
Central Texas Turnpike System, Series C 5.000%, due 08/15/31		2,000,000		2,262,940
City of Brownsville, Texas Utilities System Revenue, Series A 5.000%, due 09/01/28		2,225,000		2,507,597
City of Rockwall, Texas Combination Tax and Surplus Revenue 5.000%, due 08/01/21		1,000,000		1,144,600
City of Waco, Texas Combination Tax And Revenue Certificates of Obligation 5.000%, due 02/01/20		1,550,000		1,700,334
Clifton Higher Education Finance Corp. Revenue Refunding Idea Public Schools (PSF-GTD) 5.000%, due 08/15/28		1,100,000		1,296,405
Cypress-Fairbanks Independent School District (PSF-GTD) 5.000%, due 02/15/25		2,500,000		2,960,650
Dickinson Independent School District (PSF-GTD) 5.000%, due 02/15/30		2,500,000		2,942,875
EL Paso County Hospital District 5.000%, due 08/15/29		2,000,000		2,227,180
Harris County Metropolitan Transportation Authority Sales & Use Tax Revenue Contractual Obligations 5.000%, due 11/01/23		2,000,000		2,404,160
Harris County-Houston Sports Authority Revenue Refunding Senior Lien, Series A 5.000%, due 11/15/29		1,000,000		1,159,740
Houston Utility System Revenue First Lien, Series D 5.000%, due 11/15/29		2,000,000		2,297,760
Love Field Airport Modernization Corp. General Airport Revenue, AMT 5.000%, due 11/01/35		1,700,000		1,929,483

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Portfolio of investments—July 31, 2017

	Face amount		Value
Municipal bonds and notes—(continued)
Texas—(concluded)
North Texas Health Facilities Development Corp. Hospital Revenue United Regional Health Care Systems (AGM Insured) 5.000%, due 09/01/21	$	1,450,000	$	1,454,800
5.000%, due 09/01/22		1,400,000		1,404,634
North Texas Tollway Authority Revenue Refunding, Series A 5.000%, due 01/01/31		2,750,000		3,174,490
5.000%, due 01/01/34		2,775,000		3,169,272
San Antonio Texas Refunding & Improvement 5.000%, due 02/01/20		4,370,000		4,798,391
Socorro Independent School District Refunding, Series A (PSF-GTD) 5.000%, due 08/15/28		3,885,000		4,687,097
Tarrant County Cultural Education Facilities Finance Corp. Hospital Revenue Refunding (Baylor Scott and White Memorial Hospital), Series B 5.000%, due 11/15/32		1,000,000		1,169,460
West Travis County Public Utility Agency Revenue 5.500%, due 08/15/24		1,000,000		1,157,470
				50,284,232
Virginia—2.05%
City of Richmond, Virginia Public Utility Revenue 5.000%, due 01/15/26		2,030,000		2,511,577
Virginia College Building Authority Virginia Educational Facilities Revenue Bonds, (21st Century College), Series C 5.000%, due 02/01/31		2,825,000		3,413,476
Virginia Small Business Financing Authority Senior Lien Revenue Bonds, (95 Express Lanes LLLC Project), AMT 5.000%, due 07/01/34		1,700,000		1,844,024
				7,769,077
Washington—3.68%
Central Puget Sound Regional Transit Authority Revenue (Green Bonds), Series S-1 5.000%, due 11/01/26		1,000,000		1,260,490
Energy Northwest Project 1 Electric Revenue Refunding, Series A 5.000%, due 07/01/26		1,000,000		1,166,070
Port of Seattle Revenue Refunding, AMT 5.500%, due 12/01/22		500,000		578,505

	Face amount		Value
Municipal bonds and notes—(concluded)
Washington—(concluded)
Port of Seattle Revenue, Series C, AMT 5.000%, due 04/01/32	$	1,955,000	$	2,219,551
Seattle Municipal Lighting & Power Revenue Refunding & Improvement, Series A 5.000%, due 02/01/22		2,500,000		2,824,725
Washington State, Series A-1
5.000%, due 08/01/31		5,000,000		5,929,150
				13,978,491
Wisconsin—2.83%
Public Finance Authority lease Development Revenue (Central District Development Project) 5.000%, due 03/01/34		1,500,000		1,714,515
Wisconsin Health & Educational Facilities Authority Revenue (Aspirus, Inc. Obligated Group) 5.000%, due 08/15/27		1,000,000		1,156,550
Wisconsin Health & Educational Facilities Authority Revenue (Aurora Health Care, Inc.), Series A 5.125%, due 04/15/31		3,000,000		3,340,200
Wisconsin Health & Educational Facilities Authority Revenue (Unitypoint Health), Series A 5.000%, due 12/01/26		1,175,000		1,396,123
WPPI Energy Power Supply Revenue, Series A 5.000%, due 07/01/32		2,760,000		3,132,379
				10,739,767
Total municipal bonds and notes (cost—$362,109,770)				375,354,015
Repurchase agreement—0.47%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $1,705,000 US Treasury Note, 3.500% due 05/15/20; (value—$1,811,955); proceeds: $1,772,002 (cost—$1,772,000)		1,772,000		1,772,000
Total investments (cost—$363,881,770)—99.36%				377,126,015
Other assets in excess of liabilities—0.64%				2,426,529
Net assets—100.00%			$	379,552,544

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes was $363,881,770; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	14,449,207
Gross unrealized depreciation		(1,204,962	)
Net unrealized appreciation	$	13,244,245

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PACE Municipal Fixed Income Investments

Portfolio of investments—July 31, 2017

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	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	$	—	$	375,354,015	$	—	$	375,354,015
Repurchase agreement		—		1,772,000		—		1,772,000
Total	$	—	$	377,126,015	$	—	$	377,126,015

At July 31, 2017 there were no transfers between Level 1 and Level 2.

Portfolio footnote

¹  Variable or floating rate security. The interest rate shown is the current rate at the period end and changes periodically.

See accompanying notes to financial statements.
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Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares returned -4.51% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Bloomberg Barclays Global Aggregate Index (the "benchmark") returned -1.28%, the Bloomberg Barclays Global Aggregate ex-US Index returned -2.02%, the Bloomberg Barclays Global Aggregate ex-USD 50% Hedged Index returned -1.46%, the Lipper Global Income Funds median returned 0.91% and the Lipper International Income Funds category posted a median return of 1.72%. (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 3.

Special note: Effective January 9, 2017, Rogge Global Partners no longer served as a subadvisor for this Portfolio. Effective January 9, 2017, J.P. Morgan Investment Management, Inc. ("J.P. Morgan") began serving as the sole subadvisor for this Portfolio.

Subadvisors' comments (Unaudited)²

Rogge Global Partners

During the time when we managed a portion of the Portfolio, we outperformed the benchmark. Our relative performance was positively impacted by yield curve steepening positions in the US, Germany and Japan. A bias toward underweight duration over the period, particularly among Japanese bonds, also added value. (Duration measures a portfolio's sensitivity to interest rate changes.) Country selection was negative overall, primarily due to the negative impact of an overweight in Mexican local currency bonds, which suffered in the aftermath of the Trump victory. An exposure to Malaysian local currency bonds also detracted before our position was sold in December 2016. Currency positioning had a net neutral impact overall. The positive impact of an underweight to the Japanese yen versus both the euro and US dollar, as well as an overweight to the Russian ruble, were offset by the negative impact of an overweight in currencies such as the Mexican peso and Brazilian real. Sector selection was positive overall, as the decision to be overweight credit, including maintaining an exposure to high yield corporate bonds, was positive for results.

We utilize derivatives in our portion of the Portfolio, mainly interest rate futures and forward foreign exchange contracts. This allowed us to take positions in various government bond markets, hedge interest rate exposure,

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust – PACE Global Fixed Income Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisor:

Rogge Global Partners LTD ("Rogge Global Partners")

J.P. Morgan Investment Management, Inc. (d/b/a J.P. Morgan Asset Management) ("J.P. Morgan")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Gina Toth, CFA, Fred Lee, CFA, Diana To and Anthony Karaminas, CFA

Rogge Global Partners: Malie Conway;
J.P. Morgan: Iain Stealey, CFA and Linda Raggi, CFA since January 2017

Objective:

High total return

Investment process:

Rogge Global Partners: The Portfolio 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, the Portfolio 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 generally sells securities that no longer meet these selection criteria or when it identifies more

(continued on next page)

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PACE Global Fixed Income Investments

Subadvisors' comments (Unaudited) – concluded

and take long and short positions in currencies. Overall, the use of derivatives was beneficial for our results.

J.P. Morgan

During the time when we managed a portion of the Portfolio, from we modestly underperformed the benchmark. Our allocation to government rates detracted from results overall during the reporting period. In particular, our short position on US rates was challenged despite the Federal Reserve Board (the "Fed") raising interest rates and solid growth momentum. Our long position in US 10-year breakevens also detracted from performance as investors await more clarity about the content and timing of the new US administration's fiscal agenda. This position was closed in April. Our long Italy versus France 10-year position detracted from results as peripheral yields were hurt due to continuing political risks in Europe. In early April 2017, our conviction in higher core government rates in Europe and the US was particularly challenged as investors fled to haven assets amid increased geopolitical uncertainty. The underperformance from those positions was partially offset by contributions from our long positions in higher-yielding developed market government bonds, including Australia, Canada and New Zealand. They all benefited from dovish statements from their respective central banks. Our view continues to be challenged despite the Fed's reaffirming its commitment to normalize monetary policy through an announcement that balance sheet reduction would begin "relatively soon" at its July 2017 meeting.

The main contributor to performance was an overweight to investment grade credit. The key driver for the performance of investment-grade corporates was a stronger-than-expected fourth quarter and fiscal year 2016 earnings season, which saw 70% of the S&P 500 Index constituents beat earnings estimates. In addition, there continued to be strong demand for US fixed income from foreign investors. Going into the second quarter of 2017, our investment grade allocation was additive as the sector initially benefited from the relief rally after April 23 (following results of the first round of the French election), as well as strong corporate earnings. This positive performance persisted in the end of the second quarter as the sector benefited from positive technicals. In the US, apart from the energy sector, which experienced a pickup in volatility, most sectors continued to benefit from strong demand from foreign buyers and the robust growth environment. In Europe, the scarcity of supply, which is down 14% compared to the previous year, coupled with the unwavering support of the European Central Bank, allowed European investment grade spreads to continue tightening. In July 2017, the blackout period preceding the earnings season supported the asset class at the beginning of the month, while better-than-expected earnings were the catalysts for spreads grinding tighter toward the end of the month.

We utilize derivatives for efficient portfolio management purposes. The main types of financial derivative contracts we use are interest rate futures and foreign exchange currency forwards contracts. This allows us to implement our strategy as well as to hedge or take currency risk. Overall, the use of derivatives was beneficial to our portfolio management process.

Investment process
(concluded)

attractive investment opportunities, and may also sell securities to adjust the average duration of the Portfolio.

J.P. Morgan: The Portfolio aims to deliver consistent risk-adjusted outperformance across various market environments by building a diversified portfolio investing in global debt securities. Using a disciplined and systematic process to evaluate and identify attractive investment opportunities, the strategy invests in various fixed income asset classes across multiple currencies and actively manages asset allocation across sectors. The investment process combines top-down and bottom-up analysis, leveraging a globally integrated team steeped in a disciplined research-driven approach.

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PACE Global Fixed Income Investments

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.

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PACE Global Fixed Income Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		(4.59	)%		0.23	%		2.94	%
Class C2		(5.04	)		(0.27	)		2.44
Class Y3		(4.45	)		0.40			3.18
Class P4		(4.51	)		0.41			3.16
After deducting maximum sales charge
Class A1		(8.16	)		(0.53	)		2.55
Class C2		(5.74	)		(0.27	)		2.44
Bloomberg Barclays Global Aggregate Index5,8		(1.28	)		0.88			3.66
Bloomberg Barclays Global Aggregate ex US Index6,8		(2.02	)		(0.03	)		3.04
Bloomberg Barclays Global Aggregate ex USD 50% Hedged Index7		(1.46	)		1.93			3.78
Lipper Global Income Funds median9		0.91			1.59			3.86
Lipper International Income Funds median9		1.72			1.44			4.66

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		(5.08	)%		0.15	%		2.99	%
Class C2		(5.53	)		(0.33	)		2.50
Class Y3		(4.93	)		0.34			3.24
Class P4		(4.91	)		0.36			3.22
After deducting maximum sales charge
Class A1		(8.68	)		(0.61	)		2.60
Class C2		(6.23	)		(0.33	)		2.50

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.28% and 1.05%; Class C—1.76% and 1.53%; Class Y—1.07% and 0.84%; and Class P—1.08% and 0.85% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to: (1) waive its management fees through November 30, 2017 to the extent necessary to reflect the lower subadvisory fee paid by UBS AM to Rogge Global Partners Ltd, the Portfolio's investment advisor; (2) waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.25%; Class C—1.75%; Class Y—1.00%; and Class P—1.00%; and (3) waive its management fees through November 30, 2017 to reflect a lower management fee paid by the Portfolio to UBS AM. The Portfolio has agreed to repay UBS 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 and that UBS AM has not waived the right to do so. 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 AM. Upon termination of the agreement, however, UBS AM's three year recoupment rights will survive.

¹  Maximum sales charge for Class A shares is 3.75%. Class A shares bear ongoing 12b-1 service fees of 0.25% annually.

²  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 of 0.25% and 0.50% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The Bloomberg Barclays 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.

⁶  The Bloomberg Barclays Global Aggregate ex USD Index is an unmanaged index which provides a broad-based measure of the global investment grade fixed income markets excluding the US dollar denominated debt market. The two major components of this Index are the Pan-European Aggregate and the Asian-Pacific Aggregate Indices. The Index also includes Global Treasury, Eurodollar, Euro-Yen, Canadian, and investment grade 144A index-eligible securities not already in the three regional aggregate indices. Investors should note that indices do not reflect the deduction of fees and expenses.

⁷  The Bloomberg Barclays Global Aggregate ex USD 50% Hedged Index, is an index which provides a broad-based measure of the global investment grade fixed income markets excluding US dollar-denominated debt and provides 50% of its currency exposure in the US dollar. The other major currency exposures in this index are the Euro, the Japanese yen and, to a lesser extent, the British pound and the Canadian dollar. The two major components of this index are the Pan-European Aggregate and the Asian-Pacific Aggregate indices. The index also includes Canadian, Euro-yen, and other non-USD-denominated investment grade aggregate index eligible securities not already in the indices already noted. Investors should note that indices do not reflect the deduction of fees and expenses.

⁸  Effective December 1, 2016, the fund's primary benchmark index was changed from the Bloomberg Barclays Global Aggregate ex US Index to the Bloomberg Barclays Global Aggregate Index.

⁹  On December 1, 2016, Lipper changed the peer group classification for PACE Global Fixed Income Investments from the International Income Funds category to the Global Income Funds category.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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 Global 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 Global Fixed Income Investments Class P shares versus the Bloomberg Barclays Global Aggregate Index, the Bloomberg Barclays Global Aggregate ex US Index and the Bloomberg Barclays Global Aggregate ex USD 50% Hedged Index over the 10 years ended July 31, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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 Fixed Income 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.

PACE Global Fixed Income Investments

104

PACE Global Fixed Income Investments

Portfolio statistics—July 31, 2017 (unaudited)

Characteristics
Weighted average duration		6.80 yrs.
Weighted average maturity		11.09 yrs.
Average coupon		3.04	%
Top ten holdings1	Percentage of net assets
US Treasury Note, 1.750% due 11/30/21		5.9	%
US Treasury Note, 1.375% due 12/15/19		4.1
Bundesobligation, 0.010% due 10/08/21		3.0
Bundesrepublik Deutschland, 0.500% due 02/15/26		2.7
Japan Government Twenty Year Bond, 2.100% due 09/20/29		2.7
Bundesrepublik Deutschland, 0.250% due 02/15/27		2.5
Government of Japan, 2.200% due 09/20/26		2.3
United Kingdom Gilt, 4.250% due 12/07/27		2.3
FHLMC TBA, 4.000%		1.9
GNMA II TBA, 3.500%		1.9
Total		29.3	%
Top five issuer breakdown by country or territory of origin1	Percentage of net assets
United States		46.0	%
Japan		12.9
Germany		8.5
United Kingdom		8.2
Netherlands		3.1
Total		78.7	%
Investments by type of issuer1	Percentage of total investments
Government and other public issuers		65.7	%
Banks and other financial institutions		12.8
Industrial		13.4
Investment of cash collateral from securities loaned		0.3
Repurchase agreement		7.8
Total		100.0	%

¹  The Portfolio is actively managed and its composition will vary over time.

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PACE Global Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Long-term global debt securities—90.56%
Australia—1.91%
Australia Government Bond 3.000%, due 03/21/471	AUD	600,000	$	433,184
4.250%, due 04/21/261	AUD	4,750,000		4,288,524
BHP Billiton Finance Ltd. 6.500%, due 10/22/771,2	GBP	280,000		425,537
Sydney Airport Finance Co. Pty Ltd. 2.750%, due 04/23/241	EUR	600,000		784,275
Westpac Banking Corp. 2.100%, due 02/25/211	USD	2,600,000		2,596,303
				8,527,823
Austria—0.62%
Republic of Austria Government Bond 1.200%, due 10/20/251,3	EUR	2,200,000		2,766,092
Belgium—1.01%
Anheuser-Busch InBev SA 2.000%, due 03/17/281	EUR	580,000		725,455
Kingdom of Belgium Government Bond 4.250%, due 09/28/221	EUR	1,250,000		1,811,371
5.000%, due 03/28/351,3	EUR	1,050,000		1,966,338
				4,503,164
Canada—3.01%
Canadian Government Bond 1.500%, due 06/01/26	CAD	1,600,000		1,230,181
5.750%, due 06/01/33	CAD	910,000		1,059,184
Canadian Natural Resources Ltd. 3.900%, due 02/01/25	USD	80,000		81,678
Cenovus Energy, Inc. 6.750%, due 11/15/39	USD	360,000		389,197
Government of Canada 5.000%, due 06/01/37	CAD	650,000		730,940
Hydro-Quebec 6.500%, due 02/15/35	CAD	750,000		868,376
MEG Energy Corp. 6.500%, due 01/15/253,4	USD	250,000		241,875
National Bank of Canada 0.500%, due 01/26/221	EUR	2,000,000		2,399,142
Province of Ontario Canada 2.400%, due 06/02/26	CAD	4,050,000		3,176,201
Province of Quebec Canada 5.000%, due 12/01/41	CAD	1,100,000		1,137,480
The Toronto-Dominion Bank 0.250%, due 04/27/221	EUR	1,600,000		1,894,119
Valeant Pharmaceuticals International, Inc. 5.875%, due 05/15/233	USD	250,000		215,000
				13,423,373
Colombia—0.06%
Colombia Government International Bond 5.000%, due 06/15/45	USD	286,000		290,147
Denmark—0.40%
Denmark Government Bond 1.500%, due 11/15/23	DKK	10,250,000		1,778,750

	Face amount		Value
Long-term global debt securities—(continued)
France—2.40%
Air Liquide Finance SA 2.250%, due 09/27/233	USD	410,000	$	399,073
AXA SA 5.125%, due 07/04/431,2	EUR	800,000		1,140,801
Cie de Saint-Gobain 5.625%, due 11/15/24	GBP	100,000		164,089
Dexia Credit Local SA 1.250%, due 11/26/241	EUR	1,700,000		2,082,529
Engie SA 2.875%, due 10/10/221	USD	2,369,000		2,399,368
Europcar Groupe SA 5.750%, due 06/15/221	EUR	200,000		250,719
French Republic Government Bond OAT 0.250%, due 11/25/261	EUR	1,275,000		1,444,474
4.000%, due 04/25/551	EUR	450,000		834,273
NEW Areva Holding SA 4.875%, due 09/23/24	EUR	300,000		401,124
SFR Group SA 5.625%, due 05/15/241	EUR	200,000		257,361
Societe Generale SA 5.200%, due 04/15/211	USD	800,000		878,873
Total Capital International SA 0.750%, due 07/12/281	EUR	400,000		450,702
				10,703,386
Germany—8.52%
Bundesobligation 0.010%, due 10/08/211	EUR	11,200,000		13,458,185
Bundesrepublik Deutschland 0.010%, due 08/15/261	EUR	1,250,000		1,426,628
0.250%, due 02/15/271	EUR	9,461,000		10,961,355
0.500%, due 02/15/261	EUR	9,900,000		11,895,418
IHO Verwaltungs GmbH 3.250%, due 09/15/231,5	EUR	250,000		305,554
				38,047,140
Guernsey—0.18%
Credit Suisse Group Funding Guernsey Ltd. 2.750%, due 08/08/251	GBP	600,000		822,426
Hungary—0.36%
Hungary Government International Bond 5.375%, due 03/25/24	USD	1,400,000		1,590,182
Indonesia—1.81%
Indonesia Government International Bond 3.375%, due 04/15/231	USD	1,950,000		1,967,062
Indonesia Treasury Bond 7.000%, due 05/15/27	IDR	58,712,000,000		4,408,688
Pertamina Persero PT 4.300%, due 05/20/231	USD	1,650,000		1,718,426
				8,094,176
Ireland—0.55%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 3.500%, due 05/26/22	USD	360,000		371,004

106

PACE Global Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Long-term global debt securities—(continued)
Ireland—(concluded)
3.650%, due 07/21/27	USD	375,000	$	371,638
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 2.750%, due 03/15/241	EUR	125,000		151,600
eircom Finance DAC 4.500%, due 05/31/221	EUR	150,000		185,560
Ireland Government Bond 1.000%, due 05/15/261	EUR	600,000		719,795
Shire Acquisitions Investments Ireland DAC 2.875%, due 09/23/23	USD	670,000		669,412
				2,469,009
Italy—3.05%
Autostrade per l'Italia SpA 1.750%, due 06/26/261	EUR	500,000		608,788
6.250%, due 06/09/22	GBP	1,000,000		1,598,218
Buoni Poliennali Del Tesoro 4.750%, due 09/01/21	EUR	3,700,000		5,122,018
Enel SpA 6.500%, due 01/10/741,2	EUR	250,000		319,994
Eni SpA 1.125%, due 09/19/281	EUR	900,000		1,007,081
Intesa Sanpaolo SpA 3.875%, due 07/14/273	USD	440,000		443,171
Italy Buoni Poliennali Del Tesoro 5.000%, due 09/01/401	EUR	2,300,000		3,568,451
Leonardo SpA 4.875%, due 03/24/25	EUR	300,000		432,846
Telecom Italia SpA 3.000%, due 09/30/251	EUR	400,000		510,251
				13,610,818
Japan—12.93%
Government of Japan 2.200%, due 09/20/26	JPY	947,500,000		10,271,022
2.300%, due 12/20/36	JPY	429,850,000		5,137,496
Italy Buoni Poliennali Del Tesoro 2.700%, due 03/01/471,3	EUR	4,400,000		4,706,773
Japan Government Five Year Bond 0.100%, due 09/20/21	JPY	804,900,000		7,349,855
Japan Government Forty Year Bond 2.200%, due 03/20/51	JPY	419,300,000		5,165,250
Japan Government Thirty Year Bond 1.700%, due 06/20/44	JPY	200,000,000		2,209,624
2.300%, due 03/20/39	JPY	300,600,000		3,625,959
Japan Government Twenty Year Bond 0.700%, due 03/20/37	JPY	463,100,000		4,293,310
2.100%, due 09/20/29	JPY	1,065,400,000		11,887,118
Mizuho Bank Ltd. 1.800%, due 03/26/183	USD	2,500,000		2,501,563
Sumitomo Mitsui Banking Corp. 3.200%, due 07/18/22	USD	580,000		597,187
				57,745,157

	Face amount		Value
Long-term global debt securities—(continued)
Jersey—0.20%
Heathrow Funding Ltd. 6.750%, due 12/03/261	GBP	500,000	$	906,883
Liberia—0.09%
Royal Caribbean Cruises Ltd. 5.250%, due 11/15/22	USD	350,000		389,114
Luxembourg—1.92%
Actavis Funding SCS 4.850%, due 06/15/44	USD	465,000		513,311
Altice Luxembourg SA 6.250%, due 02/15/251	EUR	250,000		324,435
7.750%, due 05/15/223	USD	350,000		371,875
ArcelorMittal 3.125%, due 01/14/221	EUR	300,000		386,877
Auris Luxembourg II SA 8.000%, due 01/15/231	EUR	200,000		253,187
Dana Financing Luxembourg Sarl 6.500%, due 06/01/263,4	USD	250,000		267,813
eDreams ODIGEO SA 8.500%, due 08/01/211	EUR	200,000		258,004
European Financial Stability Facility 0.400%, due 05/31/261	EUR	3,290,000		3,805,655
Fiat Chrysler Finance Europe 4.750%, due 07/15/221	EUR	100,000		133,053
INEOS Group Holdings SA 5.375%, due 08/01/241	EUR	300,000		380,012
5.625%, due 08/01/243,4	USD	250,000		258,750
Intelsat Jackson Holdings SA 8.000%, due 02/15/243,4	USD	300,000		325,875
Matterhorn Telecom Holding SA 4.875%, due 05/01/231	EUR	300,000		359,491
SES SA 4.625%, due 01/02/221,2,6	EUR	200,000		254,541
SIG Combibloc Holdings SCA 7.750%, due 02/15/231	EUR	300,000		376,892
Telenet Finance VI Luxembourg SCA 4.875%, due 07/15/271	EUR	250,000		323,967
				8,593,738
Malaysia—0.22%
Malaysia Government Bond 4.160%, due 07/15/21	MYR	4,100,000		971,609
Mexico—1.38%
Mexican Bonos 5.750%, due 03/05/26	MXN	67,950,000		3,540,210
Mexico Government International Bond 4.125%, due 01/21/26	USD	1,180,000		1,235,460
Petroleos Mexicanos 4.250%, due 01/15/25	USD	1,400,000		1,392,300
				6,167,970
Morocco—0.09%
Morocco Government International Bond 3.500%, due 06/19/241	EUR	319,000		415,567

107

PACE Global Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Long-term global debt securities—(continued)
Netherlands—3.12%
ABN AMRO Bank N.V. 6.375%, due 04/27/211	EUR	1,950,000	$	2,805,852
Airbus Finance BV 2.125%, due 10/29/291	EUR	400,000		511,715
EDP Finance BV 1.125%, due 02/12/241	EUR	800,000		931,414
Enel Finance International N.V. 1.966%, due 01/27/25	EUR	264,000		334,140
5.750%, due 09/14/401	GBP	250,000		451,762
Evonik Finance BV 0.750%, due 09/07/281	EUR	900,000		972,275
Iberdrola International BV 0.375%, due 09/15/251	EUR	500,000		559,906
ING Groep NV 3.000%, due 04/11/282	EUR	1,600,000		2,053,051
Mylan N.V. 5.250%, due 06/15/46	USD	390,000		425,236
Netherlands Government Bond 1.750%, due 07/15/231,3	EUR	850,000		1,111,627
4.000%, due 01/15/371,3	EUR	800,000		1,432,118
Petrobras Global Finance BV 7.250%, due 03/17/44	USD	376,000		377,880
7.375%, due 01/17/27	USD	341,000		369,303
Teva Pharmaceutical Finance Netherlands II BV 1.125%, due 10/15/241	EUR	750,000		853,989
UPC Holding BV 6.750%, due 03/15/233	EUR	300,000		379,645
Ziggo Bond Finance BV 4.625%, due 01/15/251	EUR	300,000		376,484
				13,946,397
New Zealand—1.52%
ANZ New Zealand Int'l Ltd. 0.625%, due 01/27/221	EUR	2,900,000		3,486,590
New Zealand Government Bond 2.750%, due 04/15/371	NZD	5,000,000		3,304,820
				6,791,410
Oman—0.27%
Oman Government International Bond 4.750%, due 06/15/261	USD	1,200,000		1,194,000
Poland—0.41%
Republic of Poland Government Bond 5.750%, due 09/23/22	PLN	3,850,000		1,224,526
Republic of Poland Government International Bond 1.500%, due 09/09/251	EUR	500,000		617,056
				1,841,582
Qatar—0.20%
Qatar Government International Bond 2.375%, due 06/02/211	USD	900,000		888,750

	Face amount		Value
Long-term global debt securities—(continued)
Saudi Arabia—0.13%
Saudi Government International Bond 4.500%, due 10/26/461	USD	550,000	$	560,340
Slovenia—0.35%
Slovenia Government International Bond 5.250%, due 02/18/241	USD	1,350,000		1,549,535
South Africa—0.71%
South Africa Government Bond 10.500%, due 12/21/26	ZAR	37,500,000		3,184,674
South Korea—1.56%
Korea Treasury Bond 3.000%, due 09/10/24	KRW	5,964,350,000		5,635,591
5.750%, due 09/10/18	KRW	1,426,460,000		1,334,753
				6,970,344
Spain—2.40%
Bankinter S.A. 0.000%, due 06/21/431,2	EUR	1,637,773		1,912,954
Fondo de Titulizacion de Activos Santander Hipotecario, Series 2 0.000%, due 01/18/491,2	EUR	1,288,951		1,497,875
Iberdrola Finanzas SA 4.125%, due 03/23/20	EUR	1,800,000		2,362,591
Spain Government Bond 2.900%, due 10/31/461,3	EUR	1,150,000		1,378,176
4.900%, due 07/30/401,3	EUR	1,100,000		1,826,906
5.850%, due 01/31/221,3	EUR	950,000		1,410,999
Telefonica Emisiones SAU 5.213%, due 03/08/47	USD	300,000		331,997
				10,721,498
Supranationals—0.92%
European Investment Bank 0.875%, due 09/13/241	EUR	2,600,000		3,205,459
European Stability Mechanism 1.125%, due 05/03/321	EUR	500,000		586,358
European Union 3.375%, due 04/04/321	EUR	200,000		308,558
				4,100,375
Sweden—0.42%
Government of Sweden 3.500%, due 06/01/22	SEK	11,625,000		1,680,595
Verisure Holding AB 6.000%, due 11/01/221	EUR	168,410		215,991
				1,896,586
Turkey—0.50%
Turkey Government Bond 10.600%, due 02/11/26	TRY	7,700,000		2,222,910
United Kingdom—8.22%
Anglo American Capital PLC 3.250%, due 04/03/231	EUR	500,000		658,397

108

PACE Global Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Long-term global debt securities—(continued)
United Kingdom—(concluded)
Arkle Master Issuer PLC 3.986%, due 08/17/171	GBP	1,050,000	$	1,387,350
Aviva PLC 3.375%, due 12/04/451,2	EUR	700,000		879,471
Barclays PLC 2.625%, due 11/11/251,2	EUR	1,500,000		1,848,131
3.250%, due 02/12/271	GBP	500,000		688,920
BP Capital Markets PLC 3.119%, due 05/04/26	USD	1,320,000		1,322,986
British Telecommunications PLC 1.125%, due 03/10/231	EUR	730,000		884,856
Centrica PLC 4.375%, due 03/13/291	GBP	200,000		310,299
HSBC Holdings PLC 4.041%, due 03/13/282	USD	385,000		403,253
Imperial Brands Finance PLC 3.750%, due 07/21/223	USD	1,010,000		1,059,229
International Game Technology PLC 4.750%, due 02/15/231	EUR	250,000		322,228
Lloyds TSB Bank PLC 6.500%, due 03/24/201	EUR	1,400,000		1,925,376
Nationwide Building Society 0.750%, due 10/26/221	EUR	1,700,000		2,050,848
3.900%, due 07/21/253	USD	1,380,000		1,449,620
Santander UK Group Holdings PLC 3.125%, due 01/08/21	USD	1,300,000		1,324,187
Sensata Technologies UK Financing Co. PLC 6.250%, due 02/15/263	USD	300,000		327,000
Silverstone Master Issuer PLC 0.658%, due 01/21/702,3	GBP	980,000		1,293,972
Sky PLC GMTN 2.250%, due 11/17/251	EUR	510,000		642,026
Synlab Unsecured Bondco PLC 8.250%, due 07/01/231	EUR	300,000		395,335
United Kingdom Gilt 3.250%, due 01/22/441	GBP	1,100,000		1,855,858
3.750%, due 09/07/211	GBP	1,300,000		1,949,520
4.250%, due 12/07/271	GBP	6,000,000		10,235,085
4.250%, due 06/07/321	GBP	200,000		356,430
4.250%, due 12/07/551	GBP	1,200,000		2,690,641
Western Power Distribution West Midlands PLC 3.875%, due 10/17/241	GBP	300,000		447,572
				36,708,590
United States—29.12%
AbbVie, Inc. 4.450%, due 05/14/46	USD	460,000		479,963
AES Corp. 4.202%, due 06/01/192	USD	513,000		515,247
Ally Financial, Inc. 4.250%, due 04/15/21	USD	250,000		257,188
Altria Group, Inc. 4.250%, due 08/09/42	USD	400,000		406,563

	Face amount		Value
Long-term global debt securities—(continued)
United States—(continued)
American Airlines Pass-Through Trust, Series 2016-2, Class AA 3.200%, due 06/15/28	USD	730,500	$	729,769
American Express Credit Corp. MTN 3.300%, due 05/03/27	USD	205,000		206,499
American International Group, Inc. 4.800%, due 07/10/45	USD	320,000		346,683
4.875%, due 06/01/22	USD	1,150,000		1,270,887
American Tower Corp. 3.375%, due 10/15/26	USD	1,250,000		1,236,029
Anheuser-Busch InBev Finance, Inc. 3.650%, due 02/01/26	USD	670,000		692,903
4.900%, due 02/01/46	USD	410,000		461,222
Apple, Inc. 3.350%, due 02/09/27	USD	1,090,000		1,119,901
AT&T, Inc. 3.400%, due 05/15/25	USD	1,180,000		1,162,707
3.900%, due 08/14/27	USD	490,000		489,629
4.300%, due 12/15/42	USD	355,000		326,412
4.375%, due 09/14/29	GBP	400,000		594,378
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.500%, due 04/01/23	USD	250,000		251,250
Bank of America Corp. 4.183%, due 11/25/27	USD	590,000		609,460
Bank of America Corp. MTN 3.824%, due 01/20/282	USD	1,880,000		1,919,800
Bank of America NA 2.050%, due 12/07/18	USD	500,000		502,728
Boardwalk Pipelines LP 5.950%, due 06/01/26	USD	655,000		739,297
Buckeye Partners LP 5.850%, due 11/15/43	USD	370,000		399,399
Burlington Northern Santa Fe LLC 3.900%, due 08/01/46	USD	240,000		244,916
Capital One Financial Corp. 3.750%, due 07/28/26	USD	670,000		657,988
Cardinal Health, Inc. 3.410%, due 06/15/27	USD	395,000		398,835
CCO Holdings LLC/CCO Holdings Capital Corp. 5.750%, due 02/15/263	USD	600,000		645,000
Charter Communications Operating LLC/ Charter Communications Operating Capital 6.484%, due 10/23/45	USD	320,000		377,720
Citigroup Commercial Mortgage Trust, Series 2017-P7, Class A4 3.712%, due 04/14/50	USD	807,500		848,567
Citigroup, Inc. 3.700%, due 01/12/26	USD	195,000		198,512
4.400%, due 06/10/25	USD	770,000		807,649
4.450%, due 09/29/27	USD	415,000		437,079
Clear Channel Worldwide Holdings, Inc., Series B 6.500%, due 11/15/22	USD	600,000		621,750

109

PACE Global Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Long-term global debt securities—(continued)
United States—(continued)
Comcast Corp. 3.150%, due 03/01/26	USD	870,000	$	880,266
Constellation Brands, Inc. 4.500%, due 05/09/47	USD	80,000		83,626
Cox Communications, Inc. 3.500%, due 08/15/273	USD	510,000		506,939
Crown Castle International Corp. 3.700%, due 06/15/26	USD	640,000		648,531
CVS Health Corp. 2.125%, due 06/01/21	USD	800,000		794,962
Darden Restaurants, Inc. 3.850%, due 05/01/27	USD	290,000		299,580
Dell International LLC/EMC Corp. 6.020%, due 06/15/263	USD	640,000		714,655
DISH DBS Corp. 5.875%, due 11/15/24	USD	600,000		651,000
Duke Energy Corp. 3.050%, due 08/15/22	USD	600,000		615,476
Enterprise Products Operating LLC 4.900%, due 05/15/46	USD	320,000		346,800
Exelon Corp. 5.150%, due 12/01/20	USD	1,300,000		1,410,510
Express Scripts Holding Co. 4.800%, due 07/15/46	USD	350,000		365,804
First Data Corp. 5.750%, due 01/15/243	USD	350,000		369,688
FirstEnergy Corp. 3.900%, due 07/15/27	USD	255,000		257,633
Ford Motor Credit Co. LLC 3.336%, due 03/18/21	USD	1,380,000		1,412,815
Frontier Communications Corp. 6.875%, due 01/15/254	USD	250,000		197,500
General Motors Co. 6.750%, due 04/01/46	USD	640,000		766,102
Gilead Sciences, Inc. 4.500%, due 02/01/45	USD	330,000		351,249
GRACE 2014-GRCE Mortgage Trust, Class A 3.369%, due 06/10/283	USD	2,550,000		2,655,062
Halliburton Co. 5.000%, due 11/15/45	USD	395,000		427,857
Harris Corp. 5.054%, due 04/27/45	USD	310,000		350,344
HCA, Inc. 5.375%, due 02/01/25	USD	750,000		798,088
HD Supply, Inc. 5.250%, due 12/15/213	USD	492,000		516,292
HealthSouth Corp. 5.750%, due 09/15/25	USD	250,000		257,500
Hess Corp. 5.800%, due 04/01/47	USD	400,000		407,164
Infor US, Inc. 6.500%, due 05/15/22	USD	350,000		364,438
Kraft Heinz Foods Co. 3.500%, due 07/15/22	USD	1,560,000		1,619,725

	Face amount		Value
Long-term global debt securities—(continued)
United States—(continued)
Level 3 Financing, Inc. 5.375%, due 05/01/25	USD	250,000	$	265,625
Magellan Midstream Partners LP 4.200%, due 03/15/45	USD	360,000		340,662
MetLife, Inc. 3.600%, due 11/13/25	USD	670,000		702,301
MGM Resorts International 4.625%, due 09/01/264	USD	250,000		252,950
Micron Technology, Inc. 5.250%, due 01/15/243	USD	250,000		260,547
Microsoft Corp. 4.100%, due 02/06/37	USD	540,000		582,612
Morgan Stanley 2.713%, due 10/24/232	USD	1,400,000		1,427,551
3.950%, due 04/23/27	USD	620,000		628,780
3.971%, due 07/22/382	USD	550,000		549,630
NiSource Finance Corp. 3.490%, due 05/15/27	USD	765,000		779,655
OBP Depositor LLC Trust, Series 2010-OBP, Class A 4.646%, due 07/15/453	USD	1,348,000		1,435,768
Oracle Corp. 2.650%, due 07/15/26	USD	590,000		575,855
4.125%, due 05/15/45	USD	420,000		435,008
Owens Corning 4.300%, due 07/15/47	USD	240,000		232,874
PetSmart, Inc. 7.125%, due 03/15/233	USD	250,000		225,938
Philip Morris International, Inc. 4.125%, due 03/04/43	USD	690,000		691,905
PNC Bank NA 3.800%, due 07/25/23	USD	640,000		678,381
Prudential Financial, Inc. MTN 5.100%, due 08/15/43	USD	320,000		374,440
Reynolds American, Inc. 2.300%, due 06/12/18	USD	350,000		351,660
4.450%, due 06/12/25	USD	70,000		75,283
Sempra Energy 3.550%, due 06/15/24	USD	550,000		565,281
Simon Property Group LP 3.500%, due 09/01/25	USD	680,000		695,962
Sinclair Television Group, Inc. 6.125%, due 10/01/22	USD	250,000		258,750
Sirius XM Radio, Inc. 6.000%, due 07/15/243	USD	500,000		539,375
Southwestern Electric Power Co., Series J 3.900%, due 04/01/45	USD	340,000		334,716
Sprint Corp. 7.875%, due 09/15/23	USD	750,000		851,250
Sunoco Logistics Partners Operations LP 5.350%, due 05/15/45	USD	360,000		357,749
Synchrony Financial 3.700%, due 08/04/26	USD	460,000		451,409
T-Mobile USA, Inc. 6.500%, due 01/15/24	USD	250,000		269,295

110

PACE Global Fixed Income Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Long-term global debt securities—(continued)
United States—(continued)
Tenet Healthcare Corp. 8.125%, due 04/01/22	USD	350,000	$	376,250
The Goldman Sachs Group, Inc. 2.750%, due 09/15/20	USD	300,000		304,280
3.850%, due 01/26/27	USD	850,000		867,520
4.750%, due 10/21/45	USD	340,000		376,799
5.150%, due 05/22/45	USD	310,000		350,796
The Hertz Corp. 6.250%, due 10/15/22	USD	500,000		436,250
The Kroger Co. 2.650%, due 10/15/26	USD	625,000		579,776
The Sherwin-Williams Co. 4.500%, due 06/01/47	USD	95,000		100,397
Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC 8.250%, due 10/15/23	USD	250,000		257,500
US Treasury Bond 3.000%, due 02/15/47	USD	2,200,000		2,246,493
US Treasury Inflation Index Note (TIPS) 0.125%, due 04/15/19	USD	4,282,081		4,287,930
US Treasury Notes 1.000%, due 03/15/19	USD	4,500,000		4,476,798
1.375%, due 12/15/19	USD	18,320,000		18,306,407
1.750%, due 11/30/21	USD	26,420,000		26,413,818
2.250%, due 02/15/27	USD	8,300,000		8,276,660
Verizon Communications, Inc. 1.375%, due 11/02/28	EUR	700,000		785,108
3.500%, due 11/01/24	USD	715,000		721,544
4.522%, due 09/15/48	USD	390,000		362,861
Verizon Owner Trust, Series 2016-2, Class A 1.680%, due 05/20/213	USD	3,940,000		3,930,893
Virginia Electric & Power Co., Series B 2.950%, due 11/15/26	USD	190,000		187,901
Wells Fargo & Co. 3.584%, due 05/22/282	USD	375,000		381,094
4.100%, due 06/03/26	USD	760,000		793,505
Welltower, Inc. 4.250%, due 04/01/26	USD	660,000		702,314
Western Digital Corp. 10.500%, due 04/01/24	USD	350,000		414,313
Windstream Services LLC 7.500%, due 06/01/22	USD	350,000		299,250
Xylem, Inc. 4.375%, due 11/01/46	USD	320,000		331,353

	Face amount		Value
Long-term global debt securities—(concluded)
United States—(concluded)
Zayo Group LLC/Zayo Capital, Inc. 6.375%, due 05/15/25	USD	250,000	$	270,938
				130,055,496
Total long-term global debt securities (cost—$391,261,879)				404,449,011
Government national mortgage association certificate—1.89%
GNMA II TBA 3.500% (cost—$8,364,516)	USD	8,100,000		8,416,406
Federal home loan mortgage corporation certificates—1.93%
FHLMC TBA 4.000% (cost—$8,592,063)	USD	8,200,000		8,637,313
Federal national mortgage association certificates—4.67%
FNMA TBA 2.500%	USD	2,200,000		2,218,219
3.500%	USD	7,800,000		8,030,343
4.500%	USD	4,600,000		4,938,531
5.000%	USD	5,200,000		5,684,047
Total federal national mortgage association certificates (cost—$20,777,562)				20,871,140
Repurchase agreement—8.41%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $36,786,183 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$38,311,204); proceeds: $37,560,052 (cost—$37,560,000)	USD	37,560,000		37,560,000
	Number of shares
Investment of cash collateral from securities loaned—0.36%
Money market fund—0.36%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$1,588,508)		1,588,508		1,588,508
Total investments (cost—$468,144,528)—107.82%				481,522,378
Liabilities in excess of other assets—(7.82)%				(34,908,675	)
Net assets—100.00%			$	446,613,703

For a listing of defined portfolio acronyms, counterparty acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes was $470,582,974; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	14,849,040
Gross unrealized depreciation		(3,909,636	)
Net unrealized appreciation	$	10,939,404

111

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Portfolio of investments—July 31, 2017

Futures contracts

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
Interest rate futures buy contracts:
	48	AUD	Australian Bond 10 Year Futures	September 2017	$	5,039,490	$	4,951,855	$	(87,635	)
	29	EUR	German Euro Buxl 30 Year Futures	September 2017		5,755,959		5,565,614		(190,345	)
	11	JPY	Japan Government Bond 10 Year Futures	September 2017		15,032,557		14,982,629		(49,928	)
	448	USD	90-Day Eurodollar Futures	December 2017		110,183,110		110,376,000		192,890
US Treasury futures buy contracts:
	38	USD	Ultra Long US Treasury Bond Futures	September 2017		6,197,640		6,251,000		53,360
	5	USD	US Long Bond Futures	September 2017		773,137		764,844		(8,293	)
	180	USD	US Treasury Note 2 Year Futures	September 2017		38,959,119		38,941,875		(17,244	)
					$	181,941,012	$	181,833,817	$	(107,195	)
					Proceeds
Interest rate futures sell contracts:
	45	EUR	German Euro BOBL Futures	September 2017	$	7,087,652	$	7,034,971	$	52,681
	154	EUR	German Euro Bund Futures	September 2017		30,039,650		29,524,337		515,313
	39	EUR	Italian Government Bond Futures	September 2017		6,401,173		6,289,958		111,215
	448	USD	90-Day Eurodollar Futures	December 2018		109,820,003		110,056,800		(236,797	)
US Treasury futures sell contracts:
	127	USD	US Treasury Note 10 Year Futures	September 2017		15,979,553		15,988,109		(8,556	)
	338	USD	US Treasury Note 5 Year Futures	September 2017		39,915,025		39,934,172		(19,147	)
	40	USD	US Ultra Treasury Note 10 Year Futures	September 2017		5,400,681		5,401,875		(1,194	)
					$	214,643,737	$	214,230,222	$	413,515
									$	306,320

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
ANZ	AUD	2,033,036	JPY	175,188,735	08/18/17	$	(35,956	)
ANZ	CHF	1,490,622	EUR	1,361,608	08/18/17		70,194
ANZ	EUR	3,987,985	USD	4,649,903	08/18/17		(74,982	)
ANZ	GBP	2,437,511	USD	3,179,201	08/18/17		(38,533	)
ANZ	JPY	89,987,232	USD	796,051	08/18/17		(20,746	)
ANZ	NZD	2,125,620	USD	1,546,167	08/18/17		(49,705	)
ANZ	NZD	7,566,042	USD	5,495,912	08/18/17		(184,520	)
ANZ	USD	1,552,934	AUD	1,984,906	08/18/17		34,679
BB	AUD	878,981	EUR	584,596	08/18/17		(10,429	)
BB	AUD	1,019,691	EUR	677,000	08/18/17		(13,497	)
BB	CHF	1,480,201	EUR	1,346,775	08/18/17		63,407
BB	CHF	1,509,644	EUR	1,343,260	08/18/17		28,765
BB	CHF	540,429	SEK	4,692,987	08/18/17		22,353
BB	EUR	1,343,036	CHF	1,485,177	08/18/17		(53,827	)
BB	USD	5,256,429	CAD	6,785,409	08/18/17		187,504
BB	USD	773,497	CAD	979,412	08/18/17		12,286

112

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Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
BB	USD	775,000	NOK	6,320,251	08/18/17	$	29,099
BB	USD	2,834,229	PLN	10,551,173	08/18/17		100,059
BOA	PLN	5,692,016	USD	1,550,149	08/18/17		(32,805	)
BOA	USD	265,350	NOK	2,219,399	08/18/17		17,015
CITI	EUR	677,069	USD	777,920	08/18/17		(24,257	)
CITI	EUR	229,112	USD	267,023	08/18/17		(4,424	)
CITI	JPY	45,008,828	EUR	350,128	08/18/17		6,288
CITI	NZD	972,390	USD	704,919	08/18/17		(25,131	)
CITI	SEK	12,882,497	USD	1,545,485	08/18/17		(51,522	)
CITI	USD	1,556,162	EUR	1,355,213	08/18/17		49,467
CITI	USD	1,324,701	MXN	23,494,088	08/18/17		(8,390	)
CITI	USD	1,712,424	NZD	2,273,224	08/18/17		(5,733	)
CITI	USD	952,096	SGD	1,318,810	08/18/17		21,282
CITI	USD	1,546,734	TRY	5,622,621	08/18/17		42,135
CITI	ZAR	20,876,361	USD	1,546,734	08/18/17		(33,218	)
DB	EUR	4,549,867	USD	5,190,943	08/18/17		(199,648	)
DB	EUR	232,322	USD	265,568	08/18/17		(9,682	)
GSI	AUD	2,039,443	EUR	1,362,581	08/18/17		(16,876	)
GSI	AUD	1,006,344	EUR	675,000	08/18/17		(5,191	)
GSI	AUD	994,013	EUR	674,136	08/18/17		3,648
GSI	AUD	2,001,016	NZD	2,127,038	08/18/17		(3,562	)
GSI	AUD	2,033,036	USD	1,542,180	08/18/17		(83,930	)
GSI	AUD	2,058,188	USD	1,596,670	08/18/17		(49,558	)
GSI	CHF	1,489,487	SEK	12,971,764	08/18/17		66,237
GSI	EUR	1,354,137	AUD	1,988,348	08/18/17		(13,988	)
GSI	EUR	676,000	SEK	6,464,975	08/18/17		534
GSI	EUR	230,876	USD	266,317	08/18/17		(7,220	)
GSI	EUR	2,148,858	USD	2,504,709	08/18/17		(41,215	)
GSI	GBP	11,962,476	USD	15,406,353	08/18/17		(385,195	)
GSI	ILS	5,790,108	USD	1,636,567	08/18/17		9,761
GSI	JPY	175,846,891	AUD	2,028,620	08/18/17		26,450
GSI	MXN	36,963,459	USD	2,077,615	08/18/17		6,651
GSI	NOK	6,475,826	EUR	680,804	08/18/17		(17,290	)
GSI	NOK	12,385,379	SEK	12,651,045	08/18/17		(7,426	)
GSI	NZD	2,117,065	CAD	1,965,014	08/18/17		(12,920	)
GSI	NZD	2,119,975	JPY	174,397,618	08/18/17		(8,661	)
GSI	NZD	4,166,297	USD	3,044,063	08/18/17		(83,909	)
GSI	SEK	25,786,233	USD	3,124,977	08/18/17		(71,670	)
GSI	SEK	12,745,927	USD	1,556,291	08/18/17		(23,786	)
GSI	USD	1,556,291	CNY	10,495,003	08/18/17		2,002
GSI	USD	5,106,028	CZK	116,676,065	08/18/17		195,380
GSI	USD	1,573,371	EUR	1,354,137	08/18/17		30,984
GSI	USD	775,000	NOK	6,317,591	08/18/17		28,761
GSI	USD	775,000	NOK	6,316,043	08/18/17		28,564
GSI	USD	67,449	NOK	546,017	08/18/17		2,018

113

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Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
GSI	USD	2,445,600	NOK	19,379,721	08/18/17	$	20,002
GSI	USD	1,501,328	TRY	5,356,288	08/18/17		12,279
NAB	CHF	1,506,770	AUD	1,963,650	08/18/17		10,885
NAB	USD	31,818,634	JPY	3,611,192,257	08/18/17		959,461
RBC	AUD	2,023,897	CAD	1,992,992	08/18/17		(19,823	)
RBC	AUD	1,015,825	EUR	676,955	08/18/17		(10,458	)
RBC	AUD	1,000,162	GBP	597,474	08/18/17		(11,254	)
RBC	AUD	897,281	USD	710,611	08/18/17		(7,074	)
RBC	CAD	4,109,776	USD	3,178,985	08/18/17		(118,288	)
RBC	EUR	677,000	NOK	6,340,997	08/18/17		4,643
RBC	GBP	1,198,332	EUR	1,353,955	08/18/17		22,233
RBC	JPY	202,936,545	USD	1,823,084	08/18/17		(18,932	)
RBC	NOK	12,589,129	EUR	1,353,721	08/18/17		2,198
RBC	NZD	1,087,737	USD	808,665	08/18/17		(7,986	)
RBC	USD	777,246	AUD	993,000	08/18/17		16,999
RBC	USD	714,280	CAD	899,267	08/18/17		7,201
RBC	USD	1,554,796	EUR	1,354,137	08/18/17		49,559
RBC	USD	771,179	GBP	596,612	08/18/17		16,403
RBC	USD	1,534,589	GBP	1,195,628	08/18/17		43,748
RBC	USD	1,555,056	GBP	1,195,000	08/18/17		22,452
RBC	USD	391,776	GBP	299,000	08/18/17		2,931
RBC	USD	626,450	GBP	481,321	08/18/17		8,937
RBC	USD	362,176	HUF	97,870,522	08/18/17		19,138
RBC	USD	221,450	NOK	1,811,022	08/18/17		8,959
RBC	USD	573,983	SEK	4,840,842	08/18/17		26,122
RBC	ZAR	29,546,295	USD	2,260,789	08/18/17		24,685
SCB	USD	3,232,045	GBP	2,493,820	08/18/17		60,023
SCB	USD	1,298,661	THB	44,255,382	08/18/17		31,428
SCB	USD	777,847	ZAR	10,118,714	08/18/17		(12,049	)
SSC	CZK	35,884,185	USD	1,603,834	08/18/17		(26,635	)
SSC	EUR	1,355,000	CHF	1,498,531	08/18/17		(54,178	)
SSC	EUR	1,352,349	GBP	1,203,144	08/18/17		(13,977	)
SSC	EUR	1,702,279	USD	1,936,147	08/18/17		(80,678	)
SSC	GBP	1,191,675	CAD	1,964,956	08/18/17		3,366
SSC	JPY	354,736,434	USD	3,134,833	08/18/17		(85,041	)
SSC	USD	1,558,610	CNY	10,537,705	08/18/17		6,023
SSC	USD	1,667,218	EUR	1,431,076	08/18/17		28,292
SSC	USD	1,413,015	JPY	159,778,049	08/18/17		37,260
SSC	USD	2,946,407	JPY	328,188,783	08/18/17		32,499
TD	AUD	1,967,664	NZD	2,125,470	08/18/17		21,938
TD	CAD	2,934,429	GBP	1,788,087	08/18/17		6,144
TD	CHF	951,104	SEK	8,258,678	08/18/17		39,273
TD	CHF	3,244,613	USD	3,366,193	08/18/17		7,544
TD	DKK	1,522,187	USD	233,505	08/18/17		(9,008	)
TD	JPY	175,432,187	NZD	2,138,504	08/18/17		13,182

114

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Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(concluded)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
TD	NOK	95,067,394	USD	11,393,949	08/18/17	$	(701,083	)
TD	NZD	2,129,085	CAD	1,988,906	08/18/17		(2,775	)
TD	NZD	2,125,620	JPY	174,560,996	08/18/17		(11,416	)
TD	NZD	2,117,065	USD	1,555,704	08/18/17		(33,746	)
TD	SEK	12,736,123	CHF	1,478,887	08/18/17		(47,997	)
TD	SEK	12,706,304	CHF	1,478,887	08/18/17		(44,300	)
TD	SEK	22,795,873	USD	2,703,240	08/18/17		(122,701	)
TD	TRY	8,178,458	USD	2,279,136	08/18/17		(31,974	)
TD	USD	9,505,512	AUD	12,529,559	08/18/17		516,172
TD	USD	775,109	AUD	992,000	08/18/17		18,335
TD	USD	2,428,392	CHF	2,332,422	08/18/17		(13,994	)
TD	USD	769,651	GBP	596,000	08/18/17		17,123
TD	USD	391,582	GBP	299,000	08/18/17		3,125
TD	USD	2,211,589	ILS	7,839,978	08/18/17		(8,846	)
TD	USD	3,081,324	MXN	55,763,411	08/18/17		42,950
TD	USD	1,651,774	NOK	13,230,122	08/18/17		31,440
TD	USD	1,551,762	NZD	2,113,339	08/18/17		34,891
TD	USD	1,548,014	TRY	5,644,981	08/18/17		47,173
TD	ZAR	28,540,470	USD	2,126,481	08/18/17		(33,501	)
WBC	NZD	1,059,000	USD	782,428	08/18/17		(12,648	)
						$	112,775

115

PACE Global Fixed Income Investments

Portfolio of investments—July 31, 2017

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	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	$	—		$	404,449,011		$	—	$	404,449,011
Government national mortgage association certificate		—			8,416,406			—		8,416,406
Federal home loan mortgage corporation certificates		—			8,637,313			—		8,637,313
Federal national mortgage association certificates		—			20,871,140			—		20,871,140
Repurchase agreement		—			37,560,000			—		37,560,000
Investment of cash collateral from securities loaned		—			1,588,508			—		1,588,508
Futures contracts		925,459			—			—		925,459
Forward foreign currency contracts		—			3,362,539			—		3,362,539
Total	$	925,459		$	484,884,917		$	—	$	485,810,376
Liabilities
Futures contracts		(619,139	)		—			—		(619,139	)
Forward foreign currency contracts		—			(3,249,764	)		—		(3,249,764	)
Total	$	(619,139	)	$	(3,249,764	)	$	—	$	(3,868,903	)

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

¹  Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

²  Variable or floating rate security. The interest rate shown is the current rate at the period end and changes periodically.

³  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁴  Security, or portion thereof, was on loan at the period end.

⁵  Payment-in-kind security for which interest may be paid in cash or additional principal, at the discretion of the issuer.

⁶  Perpetual investment. Date shown reflects the next call date.

See accompanying notes to financial statements.
116

PACE High Yield Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 11.07% before the deduction of the maximum PACE Select program fee.¹ In comparison, the BofA Merrill Lynch Global High Yield Index (Hedged in USD) (the "benchmark") returned 10.84%, and the Lipper High Yield Funds category posted a median return of 9.57%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 119. 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 3.

Advisor's comments (Unaudited)²

The Portfolio outperformed its benchmark during the reporting period. An overweight and positive issuer selection in the telecom-satellite sector contributed the most to performance. Positive issuer selection, along with an underweight in banking and overweight in energy-exploration production also added to performance. Elsewhere, underweights in both metals & mining and electronics and wireless, combined with positive issuer selection, were notable contributors to performance during the reporting period.

Those positives were partially offset by underweights to the oil field and equipment services, environmental and food-wholesale sectors, which were among the biggest detractors from performance during the reporting period. Additionally, overweights in gaming, cable and satellite TV, personal and household products, coupled with an underweight in multi-line insurance, were detractors from results.

From a ratings perspective, an underweight and positive issuer selection in BB-rated issuers was the biggest contributor to performance. An overweight in D-rated and B-rated issuers, coupled with an underweight in CC-rated issuers, further contributed to performance. In contrast, overweights to BBB-rated and CCC-rated issuers slightly detracted from results, as did an underweight and negative issuer selection in C-rated securities.

Currency forwards were used during the reporting period to hedge the currency exposure of the Portfolio into US dollars.

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust – PACE High Yield Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisor:

Nomura Corporate Research and Asset Management Inc. ("NCRAM") (NCRAM has retained Nomura Asset Management Singapore Limited "NAM Singapore" and together with NCRAM "Nomura" to serve as a sub-manager to provide certain investment advisory services pursuant to a sub-management contract between NCRAM and NAM Singapore.

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Gina Toth, CFA, Fred Lee, CFA, Diana To and Anthony Karaminas

Nomura: David Crall, CFA, Stephen Kotsen, CFA, Steven Rosenthal, CFA, Eric Torres, Simon Tan, CFA

Objective:

Total return

Investment process:

The Portfolio seeks to capture the global high yield bond market's attractive total returns while minimizing losses by identifying "Strong Horse" companies that can carry their debt load through the economic cycle. The Portfolio invests in the debt of such companies to seek yield and capital appreciation while managing the overall risk of the Portfolio.

117

PACE High Yield Investments

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.

118

PACE High Yield Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years			Since inception1
Before deducting maximum sales charge
Class A2		10.93	%		6.21	%		7.90	%		7.35	%
Class C3		10.39			5.71			N/A			10.53
Class Y4		11.21			6.46			N/A			12.45
Class P5		11.07			6.40			8.13			7.58
After deducting maximum sales charge
Class A2		6.81			5.39			7.50			6.99
Class C3		9.64			5.71			N/A			10.53
BofA Merrill Lynch Global High Yield Index (Hedged in USD)6		10.84			7.39			8.44			8.18
Lipper High Yield Funds median		9.57			5.63			6.56			6.38

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years			Since inception1
Before deducting maximum sales charge
Class A2		12.33	%		6.33	%		7.46	%		7.28	%
Class C3		11.77			5.83			N/A			10.47
Class Y4		12.61			6.58			N/A			12.40
Class P5		12.57			6.55			7.71			7.52
After deducting maximum sales charge
Class A2		8.07			5.52			7.05			6.91
Class C3		11.02			5.83			N/A			10.47

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.26% and 1.16%; Class C—1.75% and 1.65%; Class Y—1.03% and 0.93%; and Class P—1.11% and 1.01% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS AM is contractually obligated to: (1) waive its management fees and/or reimburse expenses so that the Portfolio's ordinary total operating expenses of each class through November 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.28%; Class C—1.78%; Class Y—1.03%; and Class P—1.03%; and (2) waive its management fees through November 30, 2017 to reflect a lower management fee paid by the Portfolio to UBS AM. The Portfolio has agreed to repay UBS AM for any waived fees/reimbursed expenses (pursuant to item (1)) 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 and that UBS AM has not waived the right to do so. 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 AM. Upon termination of the agreement, however, UBS 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 3.75%. Class A shares bear ongoing 12b-1 service fees of 0.25% annually.

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 of 0.25% and 0.50% annually, respectively.

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 Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

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$100 million, 50 million pounds sterling or 100 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.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

119

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) over the 10 years ended July 31, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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.

PACE High Yield Investments

120

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Portfolio statistics—July 31, 2017 (unaudited)

Characteristics
Weighted average duration		3.27 yrs.
Weighted average maturity		5.88 yrs.
Average coupon		6.53	%
Top ten holdings1	Percentage of net assets
Shea Homes LP/Shea Homes Funding Corp., 6.125% due 04/01/25		0.6	%
HCA, Inc., 7.500% due 02/15/22		0.6
Navient Corp., 8.000% due 03/25/20		0.6
CITGO Petroleum Corp., 6.250% due 08/15/22		0.5
ViaSat, Inc., 6.875% due 06/15/20		0.5
Sprint Capital Corp., 8.750% due 03/15/32		0.5
Valeant Pharmaceuticals International, Inc., 7.500% due 07/15/21		0.5
American Airlines Group, Inc., 4.625% due 03/01/20		0.5
Micron Technology, Inc., 5.250% due 01/15/24		0.5
Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.500% due 06/01/24		0.5
Total		5.3	%
Top five issuer breakdown by country or territory of origin1	Percentage of net assets
United States		68.9	%
Luxembourg		4.4
Netherlands		4.2
Venezuela		3.9
Argentina		3.5
Total		84.9	%
Credit rating2	Percentage of total investments
BBB and higher		3.5	%
BB		31.1
B		37.0
CCC and lower		10.2
Not Rated		7.4
Repurchase agreement		1.5
Investment of cash collateral from securities loaned		9.3
Total		100.0	%

¹  The Portfolio is actively managed and its composition will vary over time.

²  Credit ratings shown are based on the ratings assigned to portfolio holdings by Standard & Poor's Financial Services LLC, an independent rating agency.

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Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—94.27%
Aerospace & defense—1.19%
Arconic, Inc. 5.950%, due 02/01/37		375,000	$	386,250
DAE Funding LLC 4.000%, due 08/01/202,3		250,000		254,062
4.500%, due 08/01/222,3		350,000		356,125
5.000%, due 08/01/242,3		275,000		280,844
Leonardo SpA 4.500%, due 01/19/21	EUR	925,000		1,235,887
TA MFG. Ltd. 3.625%, due 04/15/234	EUR	825,000		1,005,174
TransDigm, Inc. 6.000%, due 07/15/225		1,010,000		1,055,450
				4,573,792
Airlines—0.90%
Air Canada 7.750%, due 04/15/212,5		225,000		255,656
Allegiant Travel Co. 5.500%, due 07/15/19		325,000		335,562
American Airlines Group, Inc. 4.625%, due 03/01/202,5		1,750,000		1,806,875
United Continental Holdings, Inc. 6.000%, due 12/01/205		75,000		81,563
US Airways Pass-Through Trust 2012-1, Class B 8.000%, due 10/01/19		430,121		465,606
Virgin Australia Holdings Ltd. 7.875%, due 10/15/214		500,000		520,000
				3,465,262
Auto & truck—1.40%
American Axle & Manufacturing, Inc. 6.250%, due 04/01/252,5		525,000		523,031
BCD Acquisition, Inc. 9.625%, due 09/15/232		175,000		192,500
Faurecia 3.625%, due 06/15/234	EUR	325,000		405,637
Federal-Mogul LLC/Federal-Mogul Financing Corp. 5.000%, due 07/15/242	EUR	725,000		817,488
IHO Verwaltungs GmbH 4.125%, due 09/15/212,6		200,000		204,000
4.500%, due 09/15/232,6		200,000		206,000
Mclaren Finance PLC 5.000%, due 08/01/222	GBP	325,000		433,501
5.750%, due 08/01/222		200,000		205,000
Navistar International Corp. 8.250%, due 11/01/21		1,300,000		1,310,562
Samvardhana Motherson Automotive Systems Group BV 4.875%, due 12/16/214		500,000		521,200
Superior Industries International, Inc. 6.000%, due 06/15/252	EUR	400,000		464,050
Tenneco, Inc. 5.000%, due 07/15/26		100,000		101,750
				5,384,719

	Face amount1		Value
Corporate bonds—(continued)
Automotive parts—0.07%
Cooper-Standard Automotive, Inc. 5.625%, due 11/15/262		275,000	$	277,406
Banking-non-US—4.13%
Australia & New Zealand Banking Group Ltd. 6.750%, due 06/15/264,7,8		250,000		279,739
Banco Bilbao Vizcaya Argentaria SA 6.750%, due 02/18/204,7,8	EUR	1,000,000		1,265,127
Banco do Brasil SA 3.875%, due 10/10/22		300,000		291,750
5.875%, due 01/26/222		450,000		462,375
Banco Mercantil del Norte SA 7.625%, due 01/10/282,7,8		500,000		526,400
Banco Nacional de Costa Rica 5.875%, due 04/25/212		300,000		310,500
6.250%, due 11/01/234		450,000		471,375
Bankia SA 3.375%, due 03/15/274,7	EUR	800,000		990,784
Barclays Bank PLC 14.000%, due 06/15/194,7,8	GBP	400,000		641,064
Credit Suisse AG 5.750%, due 09/18/254,7	EUR	525,000		702,290
Credit Suisse Group AG 6.250%, due 12/18/242,7,8		200,000		214,689
Export Credit Bank of Turkey 5.375%, due 10/24/234		200,000		204,228
5.375%, due 10/24/232		200,000		204,228
HBOS Capital Funding LP 6.461%, due 11/30/184,7,8	GBP	600,000		839,139
Royal Bank of Scotland Group PLC 3.625%, due 03/25/244,7	EUR	400,000		491,831
7.092%, due 09/29/174,7,8	EUR	1,050,000		1,186,807
7.500%, due 08/10/207,8		400,000		422,500
8.000%, due 08/10/255,7,8		200,000		218,876
8.625%, due 08/15/217,8		200,000		220,876
Sberbank of Russia Via SB Capital SA 5.125%, due 10/29/224		1,100,000		1,135,750
5.250%, due 05/23/234,5		300,000		308,655
Standard Chartered PLC 7.750%, due 04/02/232,7,8		200,000		219,500
Turkiye Vakiflar Bankasi TAO 6.000%, due 11/01/224		1,200,000		1,202,945
Ukreximbank Via Biz Finance PLC 9.625%, due 04/27/224		500,000		523,500
9.750%, due 01/22/254		800,000		837,600
UniCredit SpA 6.950%, due 10/31/224	EUR	1,175,000		1,702,272
				15,874,800
Banking-US—0.97%
JPMorgan Chase & Co. 6.125%, due 04/30/247,8		900,000		991,872
6.750%, due 02/01/245,7,8		500,000		572,750
Provident Funding Associates LP/PFG Finance Corp. 6.375%, due 06/15/252		100,000		103,250

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Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Banking-US—(concluded)
The Goldman Sachs Group, Inc. 5.375%, due 05/10/207,8		375,000	$	393,750
Washington Mutual Bank 1.000%, due 05/01/099,10		500,000		112,500
Wells Fargo & Co. 5.900%, due 06/15/247,8		1,430,000		1,553,337
				3,727,459
Building & construction—2.69%
AECOM 5.125%, due 03/15/27		100,000		100,750
Aeropuertos Argentina 2000 SA 6.875%, due 02/01/272		775,000		806,000
6.875%, due 02/01/274		250,000		260,000
Aeropuertos Dominicanos Siglo XXI SA 6.750%, due 03/30/292		500,000		538,050
Ashton Woods USA LLC/Ashton Woods Finance Co. 6.750%, due 08/01/252,3		175,000		176,750
AV Homes, Inc. 6.625%, due 05/15/222,3		250,000		258,750
Beazer Homes USA, Inc. 5.750%, due 06/15/19		950,000		990,375
6.750%, due 03/15/25		150,000		158,063
Brookfield Residential Properties, Inc. 6.375%, due 05/15/252		150,000		158,250
CalAtlantic Group, Inc. 5.000%, due 06/15/27		225,000		228,375
Century Communities, Inc. 5.875%, due 07/15/252		250,000		250,625
6.875%, due 05/15/22		325,000		342,062
Delhi International Airport Ltd. 6.125%, due 10/31/262		500,000		533,750
Engility Corp. 8.875%, due 09/01/24		125,000		135,625
K Hovnanian Enterprises, Inc. 10.000%, due 07/15/222		100,000		105,500
Lennar Corp. 4.125%, due 01/15/22		525,000		540,419
4.875%, due 12/15/23		125,000		132,813
Mattamy Group Corp. 6.500%, due 11/15/202		375,000		382,500
Meritage Homes Corp. 6.000%, due 06/01/25		1,165,000		1,256,744
Shea Homes LP/Shea Homes Funding Corp. 6.125%, due 04/01/252		2,225,000		2,297,312
Toll Brothers Finance Corp. 4.875%, due 03/15/27		225,000		233,437
TRI Pointe Group, Inc. 5.250%, due 06/01/27		225,000		226,548
William Lyon Homes, Inc. 5.875%, due 01/31/25		225,000		232,673
				10,345,371

	Face amount1		Value
Corporate bonds—(continued)
Building products—1.11%
Airxcel, Inc. 8.500%, due 02/15/222		250,000	$	265,000
BMC East LLC 5.500%, due 10/01/242		225,000		236,813
Builders FirstSource, Inc. 5.625%, due 09/01/242		300,000		315,000
10.750%, due 08/15/232		825,000		950,812
Cemex SAB de CV 7.750%, due 04/16/262,5		400,000		459,000
CPG Merger Sub LLC 8.000%, due 10/01/212		125,000		130,313
Gibraltar Industries, Inc. 6.250%, due 02/01/21		125,000		129,219
Griffon Corp. 5.250%, due 03/01/22		100,000		102,250
Grupo Cementos de Chihuahua SAB de CV 5.250%, due 06/23/242		250,000		257,812
Standard Industries, Inc. 5.125%, due 02/15/212		225,000		233,438
5.375%, due 11/15/242		175,000		184,188
5.500%, due 02/15/232		175,000		184,625
Summit Materials LLC/Summit Materials Finance Corp. 5.125%, due 06/01/252		50,000		51,375
8.500%, due 04/15/22		75,000		84,375
US Concrete, Inc. 6.375%, due 06/01/242		325,000		346,937
6.375%, due 06/01/24		275,000		293,562
USG Corp. 4.875%, due 06/01/272		50,000		51,625
				4,276,344
Building products-cement—0.67%
Alam Synergy Pte Ltd. 6.625%, due 04/24/224		400,000		387,953
Cia Latinoamericana de Infraestructura & Servicios SA 9.500%, due 07/20/232		223,000		230,526
9.500%, due 07/20/234		325,000		335,969
Indo Energy Finance II BV 6.375%, due 01/24/234		400,000		379,387
New Enterprise Stone & Lime Co., Inc. 10.125%, due 04/01/222		225,000		244,217
Tutor Perini Corp. 6.875%, due 05/01/252,5		50,000		53,750
Union Andina de Cementos SAA 5.875%, due 10/30/214		750,000		781,875
Weekley Homes LLC/Weekley Finance Corp. 6.000%, due 02/01/23		175,000		171,500
				2,585,177
Cable—2.39%
Cablevision SA 6.500%, due 06/15/212		900,000		954,000

123

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Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Cable—(concluded)
Cablevision Systems Corp. 5.875%, due 09/15/225		125,000	$	132,031
7.750%, due 04/15/18		300,000		310,500
8.625%, due 09/15/17		278,000		279,738
CCO Holdings LLC/CCO Holdings Capital Corp. 5.125%, due 02/15/23		225,000		232,875
5.500%, due 05/01/262		225,000		239,134
5.750%, due 09/01/23		675,000		703,687
5.750%, due 02/15/262		600,000		645,000
Cequel Communications Holdings I LLC/Cequel Capital Corp. 5.125%, due 12/15/212		50,000		51,109
6.375%, due 09/15/202		250,000		254,375
7.750%, due 07/15/252		200,000		223,250
Digi Communications NV 5.000%, due 10/15/232	EUR	100,000		124,815
Midcontinent Communications/Midcontinent Finance Corp. 6.875%, due 08/15/232		475,000		514,853
SFR Group SA 6.000%, due 05/15/222		1,400,000		1,464,722
Unitymedia GmbH 6.125%, due 01/15/252		400,000		430,000
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 4.625%, due 02/15/264	EUR	600,000		774,333
5.500%, due 01/15/232		360,000		373,500
6.250%, due 01/15/294	EUR	250,000		337,336
UPC Holding BV 3.875%, due 06/15/292	EUR	1,000,000		1,142,604
				9,187,862
Car rental—0.68%
Ahern Rentals, Inc. 7.375%, due 05/15/232		700,000		619,500
Flexi-Van Leasing, Inc. 7.875%, due 08/15/182		100,000		98,500
Herc Rentals, Inc. 7.500%, due 06/01/222		158,000		171,035
7.750%, due 06/01/242,5		627,000		680,295
Loxam SAS 3.500%, due 04/15/222	EUR	125,000		155,374
4.250%, due 04/15/242	EUR	100,000		126,075
6.000%, due 04/15/252	EUR	100,000		128,319
United Rentals (North America), Inc. 4.875%, due 01/15/283		400,000		401,000
United Rentals North America, Inc. 5.500%, due 05/15/27		100,000		105,500
5.875%, due 09/15/26		125,000		134,531
				2,620,129
Chemicals—2.69%
A Schulman, Inc. 6.875%, due 06/01/235		250,000		261,250
Alpha 3 BV/Alpha US Bidco, Inc. 6.250%, due 02/01/252		200,000		206,000

	Face amount1		Value
Corporate bonds—(continued)
Chemicals—(concluded)
Axalta Coating Systems Dutch Holding B BV 3.750%, due 01/15/254	EUR	600,000	$	755,561
Blue Cube Spinco, Inc. 10.000%, due 10/15/25		325,000		403,000
Braskem Finance Ltd. 5.375%, due 05/02/224		1,000,000		1,041,250
5.750%, due 04/15/214		300,000		318,150
CF Industries, Inc. 5.375%, due 03/15/44		150,000		135,000
7.125%, due 05/01/20		175,000		192,500
CVR Partners LP/CVR Nitrogen Finance Corp. 9.250%, due 06/15/232		150,000		152,812
Hexion, Inc./Hexion Nova Scotia Finance ULC 9.000%, due 11/15/205		1,225,000		874,344
Huntsman International LLC 5.125%, due 04/15/21	EUR	500,000		671,807
Kissner Holdings LP/Kissner Milling Co. Ltd./BSC Holding, Inc./Kissner USA 8.375%, due 12/01/222		375,000		385,312
NOVA Chemicals Corp. 5.250%, due 06/01/272		250,000		250,625
Perstorp Holding AB 7.625%, due 06/30/212	EUR	525,000		668,729
PSPC Escrow Corp. 6.000%, due 02/01/234	EUR	625,000		777,683
SPCM SA 2.875%, due 06/15/234	EUR	400,000		483,582
4.875%, due 09/15/252		200,000		205,250
The Chemours Co. 6.125%, due 05/15/23	EUR	475,000		604,478
TPC Group, Inc. 8.750%, due 12/15/202		775,000		724,625
Tronox Finance LLC 6.375%, due 08/15/20		275,000		276,375
Valvoline, Inc. 5.500%, due 07/15/242		200,000		212,000
Venator Finance Sarl/Venator Materials Corp. 5.750%, due 07/15/252		100,000		102,750
Versum Materials, Inc. 5.500%, due 09/30/242		125,000		132,812
Yingde Gases Investment Ltd. 8.125%, due 04/22/184		500,000		502,500
				10,338,395
Coal—0.70%
Alliance Resource Operating Partners LP/Alliance Resource Finance Corp. 7.500%, due 05/01/252		300,000		316,875
Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp. 6.375%, due 03/15/24		575,000		471,500
12.000%, due 11/01/21		250,000		258,750
Murray Energy Corp. 11.250%, due 04/15/212,5		1,875,000		1,424,625
Peabody Energy Corp. 6.000%, due 03/31/222,5		100,000		102,000

124

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Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Coal—(concluded)
6.250%, due 11/15/2110,11		75,000	$	—
6.375%, due 03/31/252		125,000		126,250
10.000%, due 03/15/2210,11,14		1,025,000		—
				2,700,000
Commercial services—2.27%
Acosta, Inc. 7.750%, due 10/01/222		825,000		622,875
Aircastle Ltd. 5.125%, due 03/15/21		500,000		530,000
Alpine Finance Merger Sub LLC 6.875%, due 08/01/252		100,000		103,750
Ashtead Capital, Inc. 5.625%, due 10/01/242		400,000		430,000
Booz Allen Hamilton, Inc. 5.125%, due 05/01/252		175,000		174,563
Brand Energy & Infrastructure Services, Inc. 8.500%, due 07/15/252		225,000		239,625
CDK Global, Inc. 4.875%, due 06/01/272		50,000		51,375
Garda World Security Corp. 7.250%, due 11/15/212		25,000		25,375
Gartner, Inc. 5.125%, due 04/01/252		225,000		237,938
Great Lakes Dredge & Dock Corp. 8.000%, due 05/15/222		200,000		204,500
Harland Clarke Holdings Corp. 6.875%, due 03/01/202		125,000		128,594
8.375%, due 08/15/222		175,000		187,250
9.250%, due 03/01/212		1,025,000		1,014,750
iPayment, Inc. 10.750%, due 04/15/242		75,000		86,250
Iron Mountain Europe PLC 6.125%, due 09/15/224	GBP	317,000		439,497
Iron Mountain, Inc. 3.000%, due 01/15/252	EUR	475,000		563,064
5.750%, due 08/15/24		1,465,000		1,505,287
La Financiere Atalian SAS 4.000%, due 05/15/242	EUR	600,000		742,217
Live Nation Entertainment, Inc. 5.375%, due 06/15/222		425,000		443,062
Nassa Topco AS 2.875%, due 04/06/242	EUR	200,000		245,895
Ritchie Bros Auctioneers, Inc. 5.375%, due 01/15/252		175,000		183,600
The ADT Corp. 5.250%, due 03/15/20		275,000		290,469
The Nielsen Co. Luxembourg Sarl 5.000%, due 02/01/252,5		100,000		103,250
Waste Italia SpA 10.500%, due 11/15/194,9,10	EUR	1,425,000		151,822
				8,705,008
Communications equipment—0.21%
NXP BV/NXP Funding LLC 3.750%, due 06/01/182		400,000		404,932

	Face amount1		Value
Corporate bonds—(continued)
Communications equipment—(concluded)
3.875%, due 09/01/222		200,000	$	207,936
4.125%, due 06/01/212		200,000		209,750
				822,618
Computer software & services—3.02%
BMC Software Finance, Inc. 8.125%, due 07/15/212,5		675,000		696,937
Boxer Parent Co., Inc. 9.000%, due 10/15/192,5,6		125,000		125,312
Camelot Finance SA 7.875%, due 10/15/242		650,000		706,875
Change Healthcare Holdings LLC/Change Healthcare Finance, Inc. 5.750%, due 03/01/252		325,000		335,969
Dell International LLC/EMC Corp. 5.450%, due 06/15/232		75,000		82,662
5.875%, due 06/15/212		725,000		760,344
Diebold Nixdorf, Inc. 8.500%, due 04/15/24		100,000		109,125
Donnelley Financial Solutions, Inc. 8.250%, due 10/15/24		450,000		480,375
Everi Payments, Inc. 10.000%, due 01/15/22		300,000		328,125
Exela Intermediate LLC/Exela Finance, Inc. 10.000%, due 07/15/232		725,000		706,440
Infor Software Parent LLC/Infor Software Parent, Inc. 7.125%, due 05/01/212,6		700,000		724,500
Infor US, Inc. 6.500%, due 05/15/22		850,000		885,062
Informatica LLC 7.125%, due 07/15/232,5		100,000		101,875
j2 Cloud Services LLC/j2 Global Co-Obligor, Inc. 6.000%, due 07/15/252		175,000		182,219
NCR Corp. 6.375%, due 12/15/23		780,000		832,650
Open Text Corp. 5.875%, due 06/01/262		400,000		433,000
Quintiles IMS, Inc. 3.250%, due 03/15/252	EUR	850,000		1,033,764
Rackspace Hosting, Inc. 8.625%, due 11/15/242,5		475,000		513,000
RP Crown Parent LLC 7.375%, due 10/15/242		450,000		470,250
Solera LLC/Solera Finance, Inc. 10.500%, due 03/01/242		275,000		316,250
Southern Graphics, Inc. 8.375%, due 10/15/202		200,000		202,000
SS&C Technologies Holdings, Inc. 5.875%, due 07/15/23		150,000		159,375
Veritas US, Inc./Veritas Bermuda Ltd. 7.500%, due 02/01/232	EUR	325,000		415,514
10.500%, due 02/01/242		400,000		443,000
Western Digital Corp. 7.375%, due 04/01/232		500,000		548,750
				11,593,373

125

PACE High Yield Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Consumer products—0.96%
Central Garden & Pet Co. 6.125%, due 11/15/23		275,000	$	294,250
First Quality Finance Co., Inc. 5.000%, due 07/01/252		75,000		77,423
High Ridge Brands Co. 8.875%, due 03/15/252		275,000		272,937
Prestige Brands, Inc. 5.375%, due 12/15/212		200,000		205,500
6.375%, due 03/01/242		225,000		241,594
Revlon Consumer Products Corp. 6.250%, due 08/01/245		400,000		303,750
Spectrum Brands, Inc. 4.000%, due 10/01/262	EUR	325,000		402,311
Tempur Sealy International, Inc. 5.625%, due 10/15/235		200,000		208,750
TRI Pointe Holdings, Inc. 5.875%, due 06/15/24		1,575,000		1,677,375
				3,683,890
Consumer services—0.16%
GW Honos Security Corp. 8.750%, due 05/15/252		575,000		612,375
Containers & packaging—2.91%
ARD Finance SA 6.625%, due 09/15/236	EUR	650,000		822,718
7.125%, due 09/15/235,6		400,000		429,664
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 2.750%, due 03/15/242	EUR	350,000		424,481
4.250%, due 09/15/222		200,000		205,500
4.750%, due 07/15/272	GBP	225,000		299,834
6.000%, due 02/15/252		600,000		640,872
Ball Corp. 4.375%, due 12/15/20		350,000		366,625
4.375%, due 12/15/23	EUR	225,000		303,179
Berry Plastics Corp. 6.000%, due 10/15/22		300,000		318,750
BWAY Holding Co. 7.250%, due 04/15/252,5		625,000		651,562
Flex Acquisition Co., Inc. 6.875%, due 01/15/252		150,000		157,500
Grupo KUO SAB De CV 5.750%, due 07/07/272		850,000		864,025
Horizon Holdings I SAS 7.250%, due 08/01/234	EUR	800,000		1,010,966
Kleopatra Holdings 1 SCA 8.500%, due 06/30/232,6	EUR	650,000		757,928
Multi-Color Corp. 6.125%, due 12/01/222		100,000		104,750
OI European Group BV 3.125%, due 11/15/242	EUR	225,000		272,428
Owens-Brockway Glass Container, Inc. 6.375%, due 08/15/252		575,000		648,312
ProGroup AG 5.125%, due 05/01/222	EUR	100,000		124,743
5.125%, due 05/01/224	EUR	350,000		436,600

	Face amount1		Value
Corporate bonds—(continued)
Containers & packaging—(concluded)
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu 5.125%, due 07/15/232		450,000	$	473,625
Sealed Air Corp. 5.250%, due 04/01/232		425,000		456,344
SIG Combibloc Holdings SCA 7.750%, due 02/15/234	EUR	300,000		376,892
Silgan Holdings, Inc. 3.250%, due 03/15/252	EUR	650,000		791,516
3.250%, due 03/15/254	EUR	125,000		152,215
4.750%, due 03/15/252		75,000		77,250
				11,168,279
Diversified financial services—4.68%
Alliance Data Systems Corp. 4.500%, due 03/15/222	EUR	550,000		673,860
5.875%, due 11/01/212		100,000		104,000
Ally Financial, Inc. 3.750%, due 11/18/19		300,000		306,750
8.000%, due 12/31/18		475,000		511,219
8.000%, due 11/01/31		310,000		384,787
8.000%, due 11/01/31		285,000		353,756
Amigo Luxembourg SA 7.625%, due 01/15/242	GBP	300,000		410,855
ASP AMC Merger Sub, Inc. 8.000%, due 05/15/252		750,000		743,437
Bank of America Corp. 6.250%, due 09/05/247,8		700,000		771,750
6.300%, due 03/10/265,7,8		175,000		197,969
8.000%, due 01/30/187,8		345,000		354,488
Barclays PLC 8.000%, due 12/15/207,8	EUR	600,000		796,402
8.250%, due 12/15/187,8		1,300,000		1,381,510
CIT Group, Inc. 3.875%, due 02/19/19		350,000		358,312
Citigroup, Inc. 5.900%, due 02/15/235,7,8		925,000		1,001,433
5.950%, due 08/15/207,8		175,000		184,139
5.950%, due 01/30/235,7,8		175,000		189,438
6.250%, due 08/15/265,7,8		150,000		168,510
CNG Holdings, Inc. 9.375%, due 05/15/202		225,000		202,500
FBM Finance, Inc. 8.250%, due 08/15/212,5		700,000		750,750
First Data Corp. 7.000%, due 12/01/232		400,000		431,500
Fly Leasing Ltd. 6.750%, due 12/15/20		200,000		209,250
Garfunkelux Holdco 3 SA 8.500%, due 11/01/224	GBP	300,000		425,507
Hexion, Inc. 10.375%, due 02/01/222,5		475,000		480,937
13.750%, due 02/01/222		425,000		388,875
Intelsat Connect Finance SA 12.500%, due 04/01/222,5		75,000		71,906

126

PACE High Yield Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Diversified financial services—(concluded)
Jefferies Finance LLC/JFIN Co-Issuer Corp. 7.250%, due 08/15/242,3		200,000	$	200,500
7.375%, due 04/01/202		400,000		411,000
KOC Holding AS 5.250%, due 03/15/234,5		750,000		789,600
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 5.250%, due 03/15/222,5		325,000		335,156
LHC3 PLC3 4.125%, due 08/15/242,6	EUR	200,000		238,536
Nationstar Mortgage LLC/Nationstar Capital Corp. 6.500%, due 06/01/22		275,000		281,188
9.625%, due 05/01/19		375,000		386,719
Newday Bondco PLC 7.375%, due 02/01/242	GBP	725,000		926,486
NFP Corp. 6.875%, due 07/15/252		300,000		305,213
Tempo Acquisition LLC/Tempo Acquisition Finance Corp. 6.750%, due 06/01/252		375,000		389,062
Unifin Financiera SAB de CV SOFOM ENR 7.000%, due 01/15/252		500,000		492,450
Vertiv Intermediate Holding Corp. 12.000%, due 02/15/222,6		900,000		990,000
Werner FinCo LP/Werner FinCo, Inc. 8.750%, due 07/15/252		375,000		375,000
				17,974,750
Electric utilities—0.51%
Dynegy, Inc. 7.375%, due 11/01/225		850,000		861,687
NRG Energy, Inc. 6.625%, due 03/15/23		325,000		335,969
6.625%, due 01/15/275		400,000		411,000
7.250%, due 05/15/26		125,000		132,188
NRG Yield Operating LLC 5.000%, due 09/15/265		225,000		229,639
				1,970,483
Electric-generation—0.89%
AmeriGas Partners LP/AmeriGas Finance Corp. 5.500%, due 05/20/25		300,000		303,000
5.625%, due 05/20/24		75,000		77,813
5.750%, due 05/20/27		275,000		277,750
Calpine Corp. 5.375%, due 01/15/235		100,000		97,125
5.500%, due 02/01/24		475,000		445,312
ContourGlobal Power Holdings SA 5.125%, due 06/15/212	EUR	725,000		900,353
Drax Finco PLC 4.250%, due 05/01/222	GBP	250,000		337,288
GenOn Energy, Inc. 7.875%, due 06/15/179		325,000		219,375

	Face amount1		Value
Corporate bonds—(continued)
Electric-generation—(concluded)
Greenko Investment Co. 4.875%, due 08/16/234		300,000	$	294,748
TerraForm Power Operating LLC 9.750%, due 08/15/222		425,000		472,812
				3,425,576
Electric-integrated—0.77%
Capex SA 6.875%, due 05/15/242		400,000		400,000
Centrais Eletricas Brasileiras SA 5.750%, due 10/27/214		300,000		310,950
Eskom Holdings SOC Ltd. 5.750%, due 01/26/214		500,000		502,775
6.750%, due 08/06/234		250,000		252,875
Hrvatska Elektroprivreda 5.875%, due 10/23/222		800,000		875,645
Pampa Energia SA 7.500%, due 01/24/272		400,000		415,000
7.500%, due 01/24/274		200,000		207,500
				2,964,745
Electronics—0.90%
Advanced Micro Devices, Inc. 7.000%, due 07/01/245		278,000		298,155
7.500%, due 08/15/22		270,000		303,750
Allegion PLC 5.875%, due 09/15/23		275,000		296,425
Micron Technology, Inc. 5.250%, due 01/15/242		1,725,000		1,797,775
Microsemi Corp. 9.125%, due 04/15/232		66,000		75,900
Qorvo, Inc. 6.750%, due 12/01/23		100,000		109,715
7.000%, due 12/01/25		500,000		568,750
				3,450,470
Energy—0.17%
Neerg Energy Ltd. 6.000%, due 02/13/224		500,000		512,104
Pattern Energy Group, Inc. 5.875%, due 02/01/242		125,000		131,875
				643,979
Energy-exploration & production—0.57%
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp. 7.875%, due 12/15/242		775,000		813,750
Antero Resources Corp. 5.125%, due 12/01/22		150,000		152,250
5.375%, due 11/01/21		300,000		309,000
Continental Resources, Inc. 5.000%, due 09/15/22		450,000		446,062
Covey Park Energy LLC/Covey Park Finance Corp. 7.500%, due 05/15/252		275,000		281,875

127

PACE High Yield Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Energy-exploration & production—(concluded)
Delek Logistics Partners LP 6.750%, due 05/15/252		200,000	$	202,500
Midstates Petroleum Co., Inc./Midstates Petroleum Co. LLC 10.750%, due 10/01/209,10,11,14		850,000		—
				2,205,437
Finance-captive automotive—1.99%
Ausdrill Finance Pty Ltd. 6.875%, due 11/01/192		880,000		900,900
Barminco Finance Pty Ltd. 6.625%, due 05/15/222		50,000		49,000
Cabot Financial Luxembourg II SA 5.875%, due 11/15/214,7	EUR	550,000		683,736
Cabot Financial Luxembourg SA 6.500%, due 04/01/214	GBP	220,000		299,173
HRG Group, Inc. 7.750%, due 01/15/225		395,000		416,725
HT1 Funding GmbH 1.842%, due 06/30/187,8	EUR	800,000		903,003
Icahn Enterprises LP/Icahn Enterprises Finance Corp. 6.000%, due 08/01/205		1,380,000		1,417,950
6.250%, due 02/01/225		250,000		260,235
Mercury Bondco PLC 8.250%, due 05/30/214,6	EUR	650,000		812,107
Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance, Inc. 7.875%, due 10/01/222		275,000		286,344
NWH Escrow Corp. 7.500%, due 08/01/212		250,000		220,625
Park Aerospace Holdings Ltd. 5.250%, due 08/15/222		150,000		152,625
5.500%, due 02/15/242		100,000		101,812
Prime Security Services Borrower LLC/Prime Finance, Inc. 9.250%, due 05/15/232		475,000		530,219
Radian Group, Inc. 7.000%, due 03/15/21		275,000		307,656
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. 6.750%, due 05/01/222		200,000		212,000
Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC 6.000%, due 04/15/232		100,000		103,000
				7,657,110
Finance-other—1.46%
Credivalores-Crediservicios SAS 9.750%, due 07/27/222		600,000		613,200
Financiera Independencia SAB de CV SOFOM ENR 8.000%, due 07/19/242		400,000		401,000

	Face amount1		Value
Corporate bonds—(continued)
Finance-other—(concluded)
Navient Corp. 6.500%, due 06/15/225		300,000	$	320,160
6.625%, due 07/26/21		75,000		80,438
6.750%, due 06/25/255		150,000		157,500
7.250%, due 09/25/23		125,000		136,756
8.000%, due 03/25/205		2,000,000		2,212,000
Springleaf Finance Corp. 5.250%, due 12/15/19		545,000		567,481
6.000%, due 06/01/20		1,050,000		1,107,750
				5,596,285
Financial services—0.86%
Banco de Bogota SA 5.375%, due 02/19/232		750,000		792,187
Cemex Finance LLC 6.000%, due 04/01/242,5		400,000		424,920
6.000%, due 04/01/244		750,000		795,937
Intesa Sanpaolo SpA 8.047%, due 06/20/187,8	EUR	350,000		439,190
Monitchem HoldCo 2 SA 6.875%, due 06/15/224	EUR	575,000		680,005
VFH Parent LLC/Orchestra Borrower LLC 6.750%, due 06/15/222		150,000		157,500
				3,289,739
Food processors/beverage/bottling—0.08%
Vector Group Ltd. 6.125%, due 02/01/252,5		300,000		309,000
Food products—1.28%
Central American Bottling Corp. 5.750%, due 01/31/272		400,000		424,752
Clearwater Seafoods, Inc. 6.875%, due 05/01/252		150,000		160,125
Cott Corp. 5.500%, due 07/01/244	EUR	250,000		325,427
Cott Finance Corp. 5.500%, due 07/01/242	EUR	500,000		650,853
JBS USA LUX SA/JBS USA Finance, Inc. 8.250%, due 02/01/202		710,000		720,650
Marfrig Holdings Europe BV 8.000%, due 06/08/232		300,000		312,600
8.000%, due 06/08/234		600,000		625,200
Minerva Luxembourg SA 6.500%, due 09/20/262		1,150,000		1,150,000
6.500%, due 09/20/264		250,000		250,000
TreeHouse Foods, Inc. 6.000%, due 02/15/242		275,000		294,938
				4,914,545
Food-wholesale—1.49%
Albertsons Cos. LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC 5.750%, due 03/15/252		525,000		475,125
6.625%, due 06/15/242,5		450,000		423,000

128

PACE High Yield Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Food-wholesale—(concluded)
Aramark International Finance Sarl 3.125%, due 04/01/252	EUR	375,000	$	463,347
Aramark Services, Inc. 5.125%, due 01/15/24		400,000		424,836
Casino Guichard Perrachon SA 4.048%, due 08/05/264	EUR	300,000		384,787
4.870%, due 01/31/194,7,8	EUR	300,000		361,355
Lamb Weston Holdings, Inc. 4.625%, due 11/01/242		50,000		52,188
Matalan Finance PLC 6.875%, due 06/01/194	GBP	500,000		640,064
8.875%, due 06/01/204	GBP	275,000		349,592
Nomad Foods Bondco PLC 3.250%, due 05/15/242	EUR	650,000		784,753
Ocado Group PLC 4.000%, due 06/15/242	GBP	200,000		262,017
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp. 5.875%, due 01/15/24		150,000		160,875
Rexel SA 3.500%, due 06/15/234	EUR	750,000		934,182
				5,716,121
Gaming—2.19%
Boyd Gaming Corp. 6.875%, due 05/15/235		1,000,000		1,075,000
Churchill Downs, Inc. 5.375%, due 12/15/21		700,000		728,000
Cirsa Funding Luxembourg SA 5.875%, due 05/15/234	EUR	725,000		905,880
Grupo Posadas SAB de CV 7.875%, due 06/30/224		500,000		522,500
Jacobs Entertainment, Inc. 7.875%, due 02/01/242		250,000		271,250
Lions Gate Entertainment Corp. 5.875%, due 11/01/242		175,000		183,750
MGM Resorts International 6.750%, due 10/01/20		263,000		291,930
7.750%, due 03/15/22		740,000		869,426
Mohegan Gaming & Entertainment 7.875%, due 10/15/242,5		675,000		712,969
Safari Holding Verwaltungs GmbH 8.250%, due 02/15/214	EUR	660,120		810,816
Schumann SpA 7.000%, due 07/31/234	EUR	250,000		297,401
Scientific Games International, Inc. 7.000%, due 01/01/222		300,000		319,500
10.000%, due 12/01/22		100,000		111,500
Studio City Co. Ltd. 5.875%, due 11/30/192,5		200,000		211,000
WMG Acquisition Corp. 4.125%, due 11/01/244	EUR	775,000		971,850
5.000%, due 08/01/232		125,000		129,375
				8,412,147

	Face amount1		Value
Corporate bonds—(continued)
Health care equipment & supplies—0.06%
Crimson Merger Sub, Inc. 6.625%, due 05/15/222,5		250,000	$	245,625
Health care providers & services—5.67%
Alere, Inc. 6.375%, due 07/01/232		370,000		397,750
6.500%, due 06/15/20		375,000		381,094
Catalent Pharma Solutions, Inc. 4.750%, due 12/15/242	EUR	200,000		253,335
CHS/Community Health Systems, Inc. 6.250%, due 03/31/23		100,000		102,375
6.875%, due 02/01/225		625,000		532,031
7.125%, due 07/15/205		450,000		435,077
Concordia International Corp. 7.000%, due 04/15/232		150,000		27,000
9.500%, due 10/21/222		275,000		55,688
DJO Finco, Inc./DJO Finance LLC/DJO Finance Corp. 8.125%, due 06/15/212		500,000		471,250
Eagle Holding Co. II LLC 7.625%, due 05/15/222,6		100,000		104,000
Endo Dac/Endo Finance LLC/Endo Finco, Inc. 5.875%, due 10/15/242,5		200,000		207,000
6.000%, due 07/15/232,5		1,500,000		1,300,312
Endo Finance LLC 5.750%, due 01/15/222		75,000		69,263
Endo Finance LLC/Endo Finco, Inc. 5.375%, due 01/15/232		150,000		128,250
Envision Healthcare Corp. 5.625%, due 07/15/22		175,000		181,781
6.250%, due 12/01/242		175,000		188,562
Grifols SA 3.200%, due 05/01/252	EUR	1,150,000		1,381,791
HCA, Inc. 5.875%, due 05/01/23		150,000		164,063
5.875%, due 02/15/26		200,000		218,000
7.500%, due 02/15/22		1,925,000		2,223,375
HealthSouth Corp. 5.750%, due 11/01/24		625,000		637,500
Hill-Rom Holdings, Inc. 5.750%, due 09/01/232		150,000		158,250
HomeVi SAS 4.250%, due 11/15/212,7	EUR	100,000		119,165
6.875%, due 08/15/214	EUR	525,000		644,826
inVentiv Group Holdings, Inc./inVentiv Health, Inc./inVentiv Health Clinical, Inc. 7.500%, due 10/01/242		425,000		465,375
Kindred Healthcare, Inc. 8.000%, due 01/15/20		820,000		824,100
8.750%, due 01/15/235		75,000		74,719
LifePoint Health, Inc. 5.500%, due 12/01/21		125,000		129,766
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC 5.625%, due 10/15/232,5		150,000		143,625

129

PACE High Yield Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Health care providers & services—(concluded)
MPH Acquisition Holdings LLC 7.125%, due 06/01/242,5		50,000	$	54,125
Select Medical Corp. 6.375%, due 06/01/215		50,000		51,500
Surgery Center Holdings, Inc. 6.750%, due 07/01/252		150,000		154,125
Synlab Bondco PLC 3.500%, due 07/01/222,7	EUR	500,000		599,299
Tenet Healthcare Corp. 4.625%, due 07/15/242		175,000		174,125
5.500%, due 03/01/19		1,200,000		1,236,000
7.500%, due 01/01/222,5		125,000		135,000
8.000%, due 08/01/205		225,000		228,656
8.125%, due 04/01/22		275,000		295,625
Unilabs Subholding AB 5.750%, due 05/15/252	EUR	775,000		925,346
Universal Hospital Services, Inc. 7.625%, due 08/15/20		350,000		356,125
Valeant Pharmaceuticals International, Inc. 4.500%, due 05/15/234	EUR	700,000		682,526
6.125%, due 04/15/252,5		150,000		127,688
6.375%, due 10/15/202,5		1,675,000		1,628,937
6.750%, due 08/15/182,5		87,000		87,109
6.750%, due 08/15/212		25,000		23,625
7.000%, due 10/01/202,5		425,000		419,687
7.000%, due 03/15/242		350,000		372,750
7.250%, due 07/15/222,5		375,000		353,437
7.500%, due 07/15/212,5		1,920,000		1,864,800
				21,789,808
Hotels, restaurants & leisure—2.10%
Carlson Travel, Inc. 9.500%, due 12/15/242		200,000		202,000
CCM Merger, Inc. 6.000%, due 03/15/222		200,000		209,570
CPUK Finance Ltd. 4.250%, due 08/28/222	GBP	350,000		467,149
Eldorado Resorts, Inc. 6.000%, due 04/01/25		175,000		187,250
7.000%, due 08/01/23		375,000		405,000
FelCor Lodging LP 6.000%, due 06/01/25		1,575,000		1,693,125
Gateway Casinos & Entertainment Ltd. 8.250%, due 03/01/242,5		225,000		234,000
Golden Nugget, Inc. 8.500%, due 12/01/212		325,000		344,094
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC 5.000%, due 06/01/242		250,000		260,625
LTF Merger Sub, Inc. 8.500%, due 06/15/232		1,367,000		1,457,564
Silversea Cruise Finance Ltd. 7.250%, due 02/01/252		225,000		242,156
Thomas Cook Group PLC 6.250%, due 06/15/224	EUR	100,000		128,028
6.250%, due 06/15/222	EUR	900,000		1,152,252

	Face amount1		Value
Corporate bonds—(continued)
Hotels, restaurants & leisure—(concluded)
Viking Cruises Ltd. 8.500%, due 10/15/222		150,000	$	157,312
Wagamama Finance PLC 4.125%, due 07/01/222	GBP	200,000		264,540
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.250%, due 05/15/272		50,000		51,188
Wynn Macau Ltd. 5.250%, due 10/15/212		500,000		510,000
Yum! Brands, Inc. 6.250%, due 03/15/18		75,000		77,032
				8,042,885
Insurance—1.06%
Ardonagh Midco 3 PLC 8.375%, due 07/15/232	GBP	625,000		827,800
8.625%, due 07/15/232		400,000		410,500
AssuredPartners, Inc. 7.000%, due 08/15/252,3		250,000		251,875
FWD Ltd. 6.250%, due 01/24/224,7,8		800,000		837,352
Hub Holdings LLC/Hub Holdings Finance, Inc. 8.125%, due 07/15/192,6		675,000		675,000
HUB International Ltd. 7.875%, due 10/01/212		400,000		418,500
MGIC Investment Corp. 5.750%, due 08/15/23		275,000		299,750
USIS Merger Sub, Inc. 6.875%, due 05/01/252		350,000		362,250
				4,083,027
Lodging—0.27%
Inn of the Mountain Gods Resort & Casino 9.250%, due 11/30/202,12		100,000		90,000
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp. 10.250%, due 11/15/222		250,000		275,000
NCL Corp. Ltd. 4.625%, due 11/15/202		225,000		230,906
NH Hotel Group SA 3.750%, due 10/01/234	EUR	350,000		438,196
				1,034,102
Machinery—0.52%
NEW Areva Holding SA 4.875%, due 09/23/24	EUR	950,000		1,270,225
Tennant Co. 5.625%, due 05/01/252		125,000		132,969
Vertiv Group Corp. 9.250%, due 10/15/242		250,000		276,250
Welbilt, Inc. 9.500%, due 02/15/24		275,000		319,687
				1,999,131
Machinery-construction & mining—0.11%
BlueLine Rental Finance Corp./BlueLine Rental LLC 9.250%, due 03/15/242,5		350,000		379,750

130

PACE High Yield Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Machinery-construction & mining—(concluded)
Terex Corp. 5.625%, due 02/01/252		50,000	$	52,125
				431,875
Manufacturing-diversified—0.99%
Bombardier, Inc. 6.000%, due 10/15/222		300,000		305,625
6.125%, due 05/15/214	EUR	625,000		803,689
6.125%, due 01/15/232		275,000		281,187
7.500%, due 03/15/252		200,000		212,000
8.750%, due 12/01/212		275,000		313,500
Cloud Crane LLC 10.125%, due 08/01/242		350,000		393,750
Colfax Corp. 3.250%, due 05/15/252	EUR	350,000		424,295
Koppers, Inc. 6.000%, due 02/15/252		75,000		79,875
RSI Home Products, Inc. 6.500%, due 03/15/232,5		575,000		603,750
SPX FLOW, Inc. 5.625%, due 08/15/242		175,000		181,125
5.875%, due 08/15/262		175,000		181,563
				3,780,359
Media—3.53%
AMC Entertainment Holdings, Inc. 6.125%, due 05/15/275		150,000		154,298
6.375%, due 11/15/24	GBP	600,000		841,118
AMC Networks, Inc. 4.750%, due 08/01/25		25,000		25,219
Carmike Cinemas, Inc. 6.000%, due 06/15/232		300,000		317,250
Cinemark USA, Inc. 5.125%, due 12/15/22		275,000		283,594
Clear Channel Worldwide Holdings, Inc. 6.500%, due 11/15/22		278,000		288,077
7.625%, due 03/15/20		1,423,000		1,431,894
7.625%, due 03/15/20		127,000		127,318
CSC Holdings LLC 8.625%, due 02/15/19		150,000		164,250
DISH DBS Corp. 5.000%, due 03/15/23		375,000		388,946
5.125%, due 05/01/20		500,000		524,900
5.875%, due 11/15/24		75,000		81,375
7.875%, due 09/01/19		175,000		193,375
Gray Television, Inc. 5.125%, due 10/15/242		225,000		230,344
5.875%, due 07/15/262		525,000		543,375
iHeartCommunications, Inc. 9.000%, due 12/15/195		475,000		383,562
10.000%, due 01/15/18		150,000		88,500
14.000%, due 02/01/216		407,282		97,748
Mediacom Broadband LLC/Mediacom Broadband Corp. 6.375%, due 04/01/23		525,000		549,937

	Face amount1		Value
Corporate bonds—(continued)
Media—(concluded)
National CineMedia LLC 5.750%, due 08/15/265		75,000	$	72,000
Nexstar Broadcasting, Inc. 5.625%, due 08/01/242,5		550,000		568,562
Quebecor Media, Inc. 5.750%, due 01/15/23		450,000		484,875
Regal Entertainment Group 5.750%, due 06/15/23		700,000		729,750
Salem Media Group, Inc. 6.750%, due 06/01/242		75,000		77,813
Sinclair Television Group, Inc. 5.125%, due 02/15/272		150,000		148,500
5.875%, due 03/15/262,5		225,000		234,562
6.125%, due 10/01/22		142,000		146,970
Sirius XM Radio, Inc. 3.875%, due 08/01/222,5		200,000		204,000
5.375%, due 07/15/262		225,000		235,811
TEGNA, Inc. 6.375%, due 10/15/23		125,000		132,344
The EW Scripps Co. 5.125%, due 05/15/252		225,000		232,875
Townsquare Media, Inc. 6.500%, due 04/01/232,5		325,000		327,437
Univision Communications, Inc. 6.750%, due 09/15/222		700,000		727,125
Urban One, Inc. 9.250%, due 02/15/202,5		200,000		196,000
VTR Finance BV 6.875%, due 01/15/244		1,200,000		1,279,500
Wave Holdco LLC/Wave Holdco Corp. 8.250%, due 07/15/192,6		362,375		366,180
Ziggo Bond Finance BV 6.000%, due 01/15/272		650,000		672,011
				13,551,395
Metals—1.02%
Aleris International, Inc. 7.875%, due 11/01/20		641,000		619,767
9.500%, due 04/01/212		175,000		184,625
Cia Brasileira de Aluminio 4.750%, due 06/17/244		1,100,000		1,075,800
Coeur Mining, Inc. 5.875%, due 06/01/242		150,000		148,125
Constellium NV 5.750%, due 05/15/242,5		250,000		242,500
7.000%, due 01/15/234	EUR	700,000		876,060
Ferroglobe PLC/Globe Specialty Metals, Inc. 9.375%, due 03/01/222		150,000		161,250
Vedanta Resources PLC 6.375%, due 07/30/222		300,000		311,250
8.250%, due 06/07/212		250,000		279,367
				3,898,744
Metals & mining—2.93%
AK Steel Corp. 7.625%, due 10/01/215		175,000		182,656

131

PACE High Yield Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Metals & mining—(concluded)
Alcoa Nederland Holding BV 7.000%, due 09/30/262		600,000	$	667,500
Anglo American Capital PLC 3.500%, due 03/28/224	EUR	700,000		924,519
4.125%, due 09/27/222		400,000		415,000
ArcelorMittal 3.125%, due 01/14/224	EUR	525,000		677,035
6.125%, due 06/01/255		100,000		114,125
6.750%, due 02/25/225		100,000		112,750
7.500%, due 10/15/39		130,000		153,400
Cliffs Natural Resources, Inc. 5.750%, due 03/01/252,5		600,000		585,000
8.250%, due 03/31/202,5		34,000		38,216
First Quantum Minerals Ltd. 7.250%, due 04/01/232,5		300,000		309,375
FMG Resources August 2006 Pty Ltd. 5.125%, due 05/15/242,5		125,000		130,000
Fortune Star BVI Ltd. 5.250%, due 03/23/224		500,000		482,358
Freeport-McMoRan, Inc. 2.300%, due 11/14/17		275,000		275,000
5.450%, due 03/15/43		250,000		230,000
6.500%, due 11/15/20		275,000		282,906
6.625%, due 05/01/21		400,000		409,500
6.750%, due 02/01/225		1,000,000		1,050,000
Grinding Media, Inc./Moly-Cop AltaSteel Ltd. 7.375%, due 12/15/232		175,000		188,563
Hecla Mining Co. 6.875%, due 05/01/215		275,000		283,937
Hudbay Minerals, Inc. 7.250%, due 01/15/232		125,000		135,469
7.625%, due 01/15/252		100,000		109,750
IAMGOLD Corp. 7.000%, due 04/15/252		225,000		232,762
JSW Steel Ltd. 4.750%, due 11/12/194		250,000		254,500
5.250%, due 04/13/224		500,000		505,498
Kinross Gold Corp. 4.500%, due 07/15/272		200,000		199,250
5.125%, due 09/01/215		175,000		185,883
Novelis Corp. 5.875%, due 09/30/262		100,000		105,250
6.250%, due 08/15/242		150,000		160,500
Park-Ohio Industries, Inc. 6.625%, due 04/15/272		100,000		105,813
Petra Diamonds US Treasury PLC 7.250%, due 05/01/222		200,000		205,150
Teck Resources Ltd. 3.750%, due 02/01/235		125,000		126,094
4.500%, due 01/15/21		100,000		103,875
4.750%, due 01/15/22		350,000		368,238
6.000%, due 08/15/40		475,000		505,875
6.125%, due 10/01/355		200,000		217,000
Zekelman Industries, Inc. 9.875%, due 06/15/232		175,000		198,188
				11,230,935

	Face amount1		Value
Corporate bonds—(continued)
Oil & gas—10.49%
American Midstream Partners LP/American Midstream Finance Corp. 8.500%, due 12/15/212		175,000	$	176,313
Antero Midstream Partners LP/Antero Midstream Finance Corp. 5.375%, due 09/15/24		275,000		283,937
Ascent Resources Utica Holdings LLC/ARU Finance Corp. 10.000%, due 04/01/222		625,000		640,625
Bill Barrett Corp. 7.000%, due 10/15/225		125,000		113,750
Blue Racer Midstream LLC/Blue Racer Finance Corp. 6.125%, due 11/15/222		325,000		332,312
Calfrac Holdings LP 7.500%, due 12/01/202		475,000		435,812
California Resources Corp. 8.000%, due 12/15/222,5		1,675,000		1,069,906
Callon Petroleum Co. 6.125%, due 10/01/242		200,000		208,000
6.125%, due 10/01/245		275,000		286,000
Carrizo Oil & Gas, Inc. 6.250%, due 04/15/235		400,000		397,500
7.500%, due 09/15/205		350,000		355,031
Cheniere Corpus Christi Holdings LLC 5.875%, due 03/31/25		225,000		243,844
7.000%, due 06/30/24		400,000		455,500
Chesapeake Energy Corp. 5.500%, due 09/15/262		75,000		70,875
6.625%, due 08/15/205		800,000		810,000
6.875%, due 11/15/205		75,000		75,563
8.000%, due 12/15/222,5		76,000		80,560
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. 5.750%, due 04/01/25		75,000		75,281
6.250%, due 04/01/235		1,345,000		1,370,219
Denbury Resources, Inc. 6.375%, due 08/15/21		150,000		87,375
9.000%, due 05/15/212,5		360,000		342,900
Eclipse Resources Corp. 8.875%, due 07/15/23		75,000		76,118
Energy Transfer Equity LP 7.500%, due 10/15/20		1,025,000		1,158,250
Ensco PLC 5.750%, due 10/01/44		125,000		83,438
EP Energy LLC/Everest Acquisition Finance, Inc. 6.375%, due 06/15/23		600,000		379,500
8.000%, due 02/15/252,5		150,000		116,531
9.375%, due 05/01/20		1,760,000		1,498,200
Exterran Energy Solutions LP/EES Finance Corp. 8.125%, due 05/01/252		325,000		339,625
Extraction Oil & Gas, Inc. 7.375%, due 05/15/242,3		100,000		103,125
Ferrellgas LP/Ferrellgas Finance Corp. 6.500%, due 05/01/215		430,000		408,500
6.750%, due 06/15/235		225,000		212,062

132

PACE High Yield Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Oil & gas—(continued)
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp. 8.625%, due 06/15/202		100,000	$	87,500
Gazprom OAO Via Gaz Capital SA 3.600%, due 02/26/214	EUR	1,000,000		1,259,268
4.950%, due 07/19/224		400,000		417,000
Global Marine, Inc. 7.000%, due 06/01/285		125,000		110,625
Gulfport Energy Corp. 6.000%, due 10/15/242,5		250,000		247,350
6.375%, due 05/15/252		225,000		224,719
Holly Energy Partners LP/Holly Energy Finance Corp. 6.000%, due 08/01/242		125,000		130,156
Jones Energy Holdings LLC/Jones Energy Finance Corp. 9.250%, due 03/15/23		200,000		159,000
Laredo Petroleum, Inc. 5.625%, due 01/15/22		275,000		278,094
7.375%, due 05/01/225		800,000		829,000
Lukoil International Finance BV 4.563%, due 04/24/234		400,000		411,518
Matador Resources Co. 6.875%, due 04/15/23		150,000		159,000
MEG Energy Corp. 6.375%, due 01/30/232		400,000		335,000
6.500%, due 01/15/252,5		50,000		48,375
Murphy Oil Corp. 4.700%, due 12/01/225		1,050,000		1,031,625
Nabors Industries, Inc. 4.625%, due 09/15/215		75,000		71,813
5.000%, due 09/15/20		225,000		225,000
5.500%, due 01/15/235		175,000		166,653
Newfield Exploration Co. 5.750%, due 01/30/22		275,000		290,469
Noble Holding International Ltd. 7.750%, due 01/15/245		650,000		517,304
Oasis Petroleum, Inc. 6.500%, due 11/01/215		375,000		370,312
Paramount Resources Ltd. 6.875%, due 06/30/232		300,000		317,250
Parsley Energy LLC/Parsley Finance Corp. 6.250%, due 06/01/242		125,000		132,500
PDC Energy, Inc. 6.125%, due 09/15/242		300,000		307,875
Petrobras Global Finance BV 3.750%, due 01/14/21	EUR	725,000		903,271
4.250%, due 10/02/23	EUR	525,000		647,132
4.375%, due 05/20/23		1,225,000		1,186,719
5.375%, due 01/27/21		850,000		873,375
6.125%, due 01/17/22		600,000		630,750
6.250%, due 03/17/24		665,000		691,999
6.250%, due 12/14/26	GBP	100,000		135,894
6.750%, due 01/27/41		400,000		384,000
7.250%, due 03/17/44		100,000		100,500
7.375%, due 01/17/27		200,000		216,600

	Face amount1		Value
Corporate bonds—(continued)
Oil & gas—(continued)
Petroleos de Venezuela SA 8.500%, due 10/27/204		950,000	$	627,000
9.750%, due 05/17/354		795,000		311,759
Precision Drilling Corp. 5.250%, due 11/15/245		75,000		67,313
6.500%, due 12/15/21		225,000		221,062
7.750%, due 12/15/235		75,000		75,375
Range Resources Corp. 5.000%, due 08/15/222		150,000		148,500
5.000%, due 03/15/232		125,000		123,438
5.750%, due 06/01/212		275,000		282,219
5.875%, due 07/01/222		500,000		510,625
Resolute Energy Corp. 8.500%, due 05/01/205		425,000		429,250
Rice Energy, Inc. 6.250%, due 05/01/22		50,000		52,250
Rowan Cos., Inc. 7.375%, due 06/15/255		325,000		306,312
RSP Permian, Inc. 6.625%, due 10/01/22		75,000		78,375
Sanchez Energy Corp. 6.125%, due 01/15/235		325,000		265,891
7.750%, due 06/15/215		200,000		181,000
Sandridge Energy, Inc. 7.500%, due 03/15/219,10,11,14		1,425,000		—
SM Energy Co. 6.125%, due 11/15/225		425,000		416,367
6.500%, due 01/01/235		200,000		199,500
6.750%, due 09/15/265		325,000		323,375
Southwestern Energy Co. 4.100%, due 03/15/225		475,000		442,937
5.800%, due 01/23/205		275,000		284,625
6.700%, due 01/23/255		375,000		369,259
State Oil Co. of the Azerbaijan Republic 4.750%, due 03/13/234		800,000		788,800
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 5.500%, due 08/15/22		675,000		678,375
5.750%, due 04/15/255		125,000		126,563
Sunoco LP/Sunoco Finance Corp. 5.500%, due 08/01/20		1,000,000		1,025,000
6.250%, due 04/15/21		900,000		940,500
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. 5.500%, due 09/15/242,5		75,000		76,781
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 5.125%, due 02/01/252		50,000		51,500
6.750%, due 03/15/24		50,000		54,125
Transocean, Inc. 5.800%, due 10/15/225		175,000		165,380
9.000%, due 07/15/232,5		725,000		757,625
9.350%, due 12/15/41		450,000		402,750
Trinidad Drilling Ltd. 6.625%, due 02/15/252		200,000		188,500

133

PACE High Yield Investments

Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Oil & gas—(concluded)
Tullow Oil PLC 6.000%, due 11/01/202		200,000	$	193,750
6.250%, due 04/15/222,5		400,000		369,000
Ultra Resources, Inc. 6.875%, due 04/15/222		100,000		103,000
Vermilion Energy, Inc. 5.625%, due 03/15/252,5		225,000		223,312
Weatherford International LLC 6.800%, due 06/15/375		75,000		67,313
Weatherford International Ltd. 6.500%, due 08/01/365		50,000		44,000
7.750%, due 06/15/215		100,000		102,500
8.250%, due 06/15/235		100,000		101,500
9.875%, due 02/15/242,5		325,000		348,562
Whiting Petroleum Corp. 5.000%, due 03/15/19		175,000		173,250
5.750%, due 03/15/215		500,000		474,375
WildHorse Resource Development Corp. 6.875%, due 02/01/252		250,000		245,000
WPX Energy, Inc. 6.000%, due 01/15/225		175,000		179,812
7.500%, due 08/01/20		375,000		401,250
YPF SA 8.500%, due 03/23/212		100,000		111,000
				40,294,253
Oil services—0.76%
Citgo Holding, Inc. 10.750%, due 02/15/202		575,000		605,906
CITGO Petroleum Corp. 6.250%, due 08/15/222		2,005,000		2,040,087
Williams Partners LP/ACMP Finance Corp. 4.875%, due 03/15/24		250,000		261,920
				2,907,913
Paper & forest products—0.56%
Appvion, Inc. 9.000%, due 06/01/202		650,000		334,750
Mercer International, Inc. 6.500%, due 02/01/242		150,000		157,125
Suzano Austria GmbH 7.000%, due 03/16/474		450,000		477,000
7.000%, due 03/16/472		300,000		318,000
WEPA Hygieneprodukte GmbH 3.750%, due 05/15/242	EUR	425,000		526,027
3.750%, due 05/15/244	EUR	275,000		340,371
				2,153,273
Pipelines—1.22%
Martin Midstream Partners LP/Martin Midstream Finance Corp. 7.250%, due 02/15/21		450,000		459,000
MPLX LP 5.500%, due 02/15/23		645,000		663,755
NGPL PipeCo LLC 4.375%, due 08/15/222,3		250,000		257,187
4.875%, due 08/15/272,3		400,000		412,000

	Face amount1		Value
Corporate bonds—(continued)
Pipelines—(concluded)
PBF Logistics LP/PBF Logistics Finance Corp. 6.875%, due 05/15/235		400,000	$	412,000
SemGroup Corp./Rose Rock Finance Corp. 5.625%, due 07/15/22		475,000		471,437
Tesoro Logistics LP/Tesoro Logistics Finance Corp. 5.250%, due 01/15/25		50,000		53,500
5.875%, due 10/01/20		600,000		612,000
The Williams Cos., Inc. 3.700%, due 01/15/23		425,000		420,614
4.550%, due 06/24/24		150,000		155,438
7.500%, due 01/15/31		50,000		59,500
7.875%, due 09/01/21		325,000		380,250
Transportadora de Gas del Sur SA 9.625%, due 05/14/204		300,000		322,914
				4,679,595
Private Placement-Fixed—0.05%
China Aoyuan Property Group Ltd. 6.350%, due 01/11/204		200,000		204,510
Real estate investment trusts—3.28%
China Aoyuan Property Group Ltd. 6.525%, due 04/25/194		500,000		510,931
China Evergrande Group 7.500%, due 06/28/234		500,000		492,316
China SCE Property Holdings Ltd. 10.000%, due 07/02/204		1,000,000		1,085,917
CIFI Holdings Group Co. Ltd. 5.500%, due 01/23/224,10		900,000		899,991
Country Garden Holdings Co. Ltd. 4.750%, due 07/25/224		300,000		297,863
Crescent Communities LLC/Crescent Ventures, Inc. 8.875%, due 10/15/212		375,000		393,750
Fantasia Holdings Group Co. Ltd. 7.375%, due 10/04/214		400,000		397,480
Greystar Real Estate Partners LLC 8.250%, due 12/01/222		375,000		404,531
Jababeka International BV 6.500%, due 10/05/234		400,000		413,825
Kennedy-Wilson, Inc. 5.875%, due 04/01/24		750,000		770,625
MPT Operating Partnership LP/MPT Finance Corp. 3.325%, due 03/24/25	EUR	700,000		857,121
6.375%, due 03/01/24		325,000		354,250
Realogy Group LLC/Realogy Co-Issuer Corp. 4.500%, due 04/15/192		225,000		232,313
4.875%, due 06/01/232,5		500,000		505,000
RKP Overseas Finance 2016 A Ltd. 7.950%, due 02/17/224,8		600,000		618,000
Tesco Property Finance 3 PLC 5.744%, due 04/13/404	GBP	878,456		1,282,168
The GEO Group, Inc. 6.000%, due 04/15/26		200,000		208,228

134

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Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Real estate investment trusts—(concluded)
Theta Capital Pte Ltd. 7.000%, due 04/11/224		600,000	$	626,818
Times Property Holdings Ltd. 6.250%, due 01/23/204		800,000		808,991
Uniti Group, Inc./Uniti Fiber Holdings, Inc./CSL Capital LLC 7.125%, due 12/15/242		250,000		244,375
Yanlord Land HK Co. Ltd. 5.875%, due 01/23/224		500,000		518,254
Yuzhou Properties Co. Ltd. 6.000%, due 01/25/224		650,000		653,911
				12,576,658
Retail—2.04%
1011778 BC ULC/New Red Finance, Inc. 6.000%, due 04/01/222		675,000		696,600
99 Cents Only Stores LLC 11.000%, due 12/15/19		225,000		185,063
Arcos Dorados Holdings, Inc. 5.875%, due 04/04/272		725,000		731,887
Asbury Automotive Group, Inc. 6.000%, due 12/15/24		100,000		102,250
Beacon Roofing Supply, Inc. 6.375%, due 10/01/23		250,000		269,375
Carrols Restaurant Group, Inc. 8.000%, due 05/01/222		25,000		26,725
Cumberland Farms, Inc. 6.750%, due 05/01/252		75,000		80,250
FirstCash, Inc. 5.375%, due 06/01/242		125,000		131,563
Group 1 Automotive, Inc. 5.250%, due 12/15/232		225,000		225,562
Grupo Unicomer Co. Ltd. 7.875%, due 04/01/242		600,000		650,100
JC Penney Corp., Inc. 5.650%, due 06/01/20		200,000		202,000
6.375%, due 10/15/365		75,000		55,500
Landry's, Inc. 6.750%, due 10/15/242		650,000		666,445
Lithia Motors, Inc. 5.250%, due 08/01/252		125,000		128,750
Nathan's Famous, Inc. 10.000%, due 03/15/202		425,000		449,437
Rite Aid Corp. 6.125%, due 04/01/232,5		575,000		569,969
7.700%, due 02/15/275		150,000		148,125
rue21, Inc. 9.000%, due 10/15/212,9,10		250,000		1,250
Sonic Automotive, Inc. 6.125%, due 03/15/275		275,000		276,375
Suburban Propane Partners LP/Suburban Energy Finance Corp. 5.500%, due 06/01/24		1,800,000		1,782,000
The Hillman Group, Inc. 6.375%, due 07/15/222,5		200,000		192,500
The Scotts Miracle-Gro Co. 6.000%, due 10/15/23		225,000		241,594
				7,813,320

	Face amount1		Value
Corporate bonds—(continued)
Software—0.05%
MSCI, Inc. 4.750%, due 08/01/262		175,000	$	181,563
Specialty retail—0.48%
Hanesbrands Finance Luxembourg SCA 3.500%, due 06/15/242	EUR	700,000		868,055
L Brands, Inc. 6.750%, due 07/01/36		350,000		332,500
Takko Luxembourg 2 SCA 6.669%, due 04/15/194,7	EUR	300,000		340,934
9.875%, due 04/15/194	EUR	250,000		290,031
				1,831,520
Steel—0.21%
Severstal OAO Via Steel Capital SA 5.900%, due 10/17/222		750,000		816,563
Telecom-integrated/services—0.67%
GCX Ltd. 7.000%, due 08/01/194		500,000		455,528
Hughes Satellite Systems Corp. 6.625%, due 08/01/26		300,000		328,125
Intelsat Luxembourg SA 6.750%, due 06/01/18		175,000		171,500
7.750%, due 06/01/215		225,000		144,000
8.125%, due 06/01/235		2,390,000		1,479,410
				2,578,563
Telecommunication services—2.34%
Altice Financing SA 5.250%, due 02/15/234	EUR	500,000		626,116
6.625%, due 02/15/232		200,000		211,875
7.500%, due 05/15/262		200,000		221,760
Altice Luxembourg SA 7.750%, due 05/15/222		1,200,000		1,275,000
Avaya, Inc. 7.000%, due 04/01/192,9,10		500,000		412,500
9.000%, due 04/01/192,9,10		225,000		183,375
Block Communications, Inc. 6.875%, due 02/15/252		250,000		271,250
CBS Radio, Inc. 7.250%, due 11/01/242,5		250,000		263,438
Digicel Ltd. 6.000%, due 04/15/212		125,000		121,500
6.000%, due 04/15/214		900,000		874,800
6.750%, due 03/01/234		500,000		478,125
Embarq Corp. 7.995%, due 06/01/36		450,000		457,312
Uniti Group, Inc./CSL Capital LLC 6.000%, due 06/15/252		725,000		779,375
VimpelCom Holdings BV 5.950%, due 02/13/234		450,000		483,079
Wind Acquisition Finance SA 4.000%, due 07/15/204	EUR	1,150,000		1,378,388
7.375%, due 04/23/212		800,000		832,880

135

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Portfolio of investments—July 31, 2017

	Face amount1		Value
Corporate bonds—(continued)
Telecommunication services—(concluded)
Xplornet Communications, Inc. 9.625%, due 06/01/222,6		100,000	$	103,750
				8,974,523
Telecommunications equipment—0.07%
CDW LLC/CDW Finance Corp. 5.000%, due 09/01/25		250,000		261,095
Telephone-integrated—2.49%
Frontier Communications Corp. 10.500%, due 09/15/22		1,625,000		1,527,500
11.000%, due 09/15/25		850,000		775,625
Level 3 Financing, Inc. 5.375%, due 08/15/22		125,000		128,438
5.625%, due 02/01/23		175,000		182,438
6.125%, due 01/15/21		475,000		488,062
SoftBank Group Corp. 4.750%, due 07/30/254	EUR	700,000		938,458
6.000%, due 07/19/234,7,8		800,000		807,000
Sprint Capital Corp. 6.875%, due 11/15/28		350,000		381,500
8.750%, due 03/15/32		1,595,000		1,977,800
Telecom Italia Finance SA 7.750%, due 01/24/33	EUR	450,000		791,229
Virgin Media Finance PLC 5.750%, due 01/15/252		200,000		209,000
6.000%, due 10/15/242		200,000		211,624
6.375%, due 04/15/232		200,000		210,000
Virgin Media Receivables Financing Notes I DAC 5.500%, due 09/15/244	GBP	475,000		650,995
Virgin Media Secured Finance PLC 6.000%, due 01/15/252,12	GBP	175,000		268,210
				9,547,879
Trading companies & distributors—0.18%
Golden Legacy Pte Ltd. 6.875%, due 03/27/242		250,000		251,134
8.250%, due 06/07/214		400,000		429,012
				680,146
Transportation services—0.60%
Algeco Scotsman Global Finance PLC 9.000%, due 10/15/184	EUR	300,000		342,739
Moto Finance PLC 4.500%, due 10/01/222	GBP	225,000		301,467
WFS Global Holding SAS 9.500%, due 07/15/222	EUR	100,000		128,442
9.500%, due 07/15/224	EUR	650,000		834,875
12.500%, due 12/30/224	EUR	200,000		260,436
XPO Logistics, Inc. 6.125%, due 09/01/232		225,000		234,000
6.500%, due 06/15/222		200,000		207,750
				2,309,709

	Face amount1		Value
Corporate bonds—(concluded)
Wireless telecommunication services—3.55%
CenturyLink, Inc. 5.625%, due 04/01/205		200,000	$	210,500
5.625%, due 04/01/255		100,000		98,625
5.800%, due 03/15/22		475,000		493,406
6.750%, due 12/01/235		350,000		371,437
7.500%, due 04/01/245		25,000		27,156
7.600%, due 09/15/39		975,000		904,312
Cogent Communications Group, Inc. 5.375%, due 03/01/222		150,000		157,125
Digicel Group Ltd. 8.250%, due 09/30/202		1,550,000		1,486,062
eDreams ODIGEO SA 8.500%, due 08/01/212	EUR	225,000		290,255
8.500%, due 08/01/214	EUR	425,000		548,259
Intelsat Jackson Holdings SA 7.250%, due 10/15/20		75,000		72,000
9.750%, due 07/15/252		575,000		594,406
Match Group, Inc. 6.375%, due 06/01/24		425,000		462,719
Matterhorn Telecom SA 3.250%, due 02/01/232,7	EUR	375,000		445,035
3.875%, due 05/01/224	EUR	625,000		761,176
Nokia OYJ 3.375%, due 06/12/22		75,000		75,890
Radiate Holdco LLC/Radiate Finance, Inc. 6.625%, due 02/15/252		200,000		200,250
Sable Intrenational Finance Ltd. 6.875%, due 08/01/222		400,000		431,500
Sprint Communications, Inc. 8.375%, due 08/15/17		50,000		50,100
9.000%, due 11/15/182		46,000		49,795
9.250%, due 04/15/22		225,000		277,875
Sprint Corp. 7.875%, due 09/15/23		75,000		85,125
T-Mobile USA, Inc. 4.000%, due 04/15/225		175,000		182,438
5.125%, due 04/15/25		25,000		26,500
6.625%, due 04/01/23		650,000		687,375
United Group BV 4.375%, due 07/01/222	EUR	425,000		502,059
4.875%, due 07/01/242	EUR	325,000		382,331
ViaSat, Inc. 6.875%, due 06/15/20		1,984,000		2,027,400
Windstream Services LLC 7.500%, due 06/01/225		50,000		42,750
7.750%, due 10/15/205		375,000		360,938
Zayo Group LLC/Zayo Capital, Inc. 5.750%, due 01/15/272		500,000		530,000
6.000%, due 04/01/23		750,000		790,312
				13,625,111
Total corporate bonds (cost—$347,239,559)				361,996,726

136

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Portfolio of investments—July 31, 2017

	Face amount1		Value
Loan assignments7—2.62%
Aerospace & defense—0.02%
Sequa Corp. 1st Lien Term Loan 6.814%, due 11/28/21		75,000	$	75,563
Broadcast—0.33%
Asurion LLC New Term Loan B4 4.484%, due 08/04/22		910,921		913,845
Hercules Offshore LLC Exit Term Loan 0.000%, due 05/06/2010		197,241		147,931
RP Crown Parent LLC 2016 Term Loan B 4.734%, due 10/12/23		124,375		125,774
Terex Corp. 2017 Term Loan B 3.726%, due 01/31/24		74,813		75,031
				1,262,581
Building materials—0.01%
Forterra Finance, LLC 2017 Term Loan B 4.234%, due 10/25/23		24,937		23,929
Chemicals—0.05%
Unifrax Corp. 2017 USD Term Loan B 5.046%, due 04/04/24		175,000		176,750
Computer software & services—0.12%
Everi Payments, Inc. Term Loan B 5.754%, due 05/09/24		275,000		278,322
Tempo Acquisition LLC Term Loan 4.227%, due 05/01/24		200,000		201,542
				479,864
Consumer products—0.18%
Prestige Brands, Inc. Term Loan B4 3.984%, due 01/26/24		298,809		300,261
Revlon Consumer Products Corp. 2016 Term Loan B 4.734%, due 09/07/23		421,813		380,449
				680,710
Containers & packaging—0.16%
Berry Plastics Group, Inc. Term Loan J 3.724%, due 01/19/24		124,688		125,155
Consolidated Container Co. LLC 2017 1st Lien Term Loan 4.734%, due 05/22/24		150,000		151,125
Flex Acquisition Co., Inc. 1st Lien Term Loan 4.549%, due 12/29/23		349,125		350,996
				627,276
Electronics—0.03%
Micron Technology, Inc. Term Loan 3.800%, due 04/26/22		99,748		100,606
Entertainment—0.13%
Gateway Casinos & Entertainment Limited Term Loan B1 5.046%, due 02/22/23		275,000		276,719
Lions Gate Entertainment Corp. 2016 1st Lien Term Loan 4.234%, due 12/08/23		205,625		207,488
				484,207

	Face amount1		Value
Loan assignments7—(continued)
Financial services—0.28%
Air Methods Corp. 2017 Term Loan B 4.796%, due 04/21/24		196,688	$	195,950
Camelot UK Holdco Ltd. 2017 Term Loan B 4.734%, due 10/03/23		223,315		225,716
iPayment, Inc. 2017 Term Loan 7.305%, due 04/06/23		200,000		201,500
Seminole Tribe of Florida 2017 Term Loan B 3.456%, due 07/08/24		250,000		251,043
VFH Parent LLC Escrow 1.875%, due 12/30/21		125,000		126,719
Werner Co. 2017 Term Loan 4.000%, due 06/23/2413		75,000		75,000
				1,075,928
Gaming—0.46%
Mohegan Tribal Gaming Authority 2016 Term Loan B 5.234%, due 10/13/23		322,939		326,639
Scientific Games International, Inc. 2017 Term Loan B3 5.233%, due 10/01/21		1,445,754		1,447,113
				1,773,752
Healthcare-services—0.08%
Jaguar Holding Co. II 2017 Term Loan 3.984%, due 08/18/22		318,500		320,570
Hotels, restaurants & leisure—0.23%
LTF Merger Sub, Inc. 2017 Term Loan B 4.234%, due 06/10/22		643,624		647,003
RHP Hotel Properties LP 2017 Term Loan B 3.440%, due 05/11/24		249,375		250,622
				897,625
Insurance—0.05%
USI, Inc. 2017 Term Loan B 4.180%, due 05/16/24		200,000		199,376
Manufacturing-diversified—0.04%
Columbus McKinnon Corp. Term Loan B 4.296%, due 01/31/24		142,041		143,284
Oil & gas—0.27%
California Resources Corp. Second Out Term Loan 11.601%, due 12/31/21		225,000		241,988
Chesapeake Energy Corp. Term Loan 8.686%, due 08/23/21		250,000		268,187
Citgo Holding Inc. 2015 Term Loan B 9.796%, due 05/12/18		388,180		393,397
Peabody Energy Corp. Exit Term Loan 5.734%, due 03/31/22		146,931		148,143
				1,051,715
Retail-restaurant—0.04%
1011778 B.C. Unlimited Liability Co. Term Loan B3 3.546%, due 02/16/24		149,624		149,543

137

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Portfolio of investments—July 31, 2017

	Face amount1		Value
Loan assignments7—(concluded)
Wireless telecommunication services—0.14%
Radiate Holdco, LLC 1st Lien Term Loan 4.234%, due 02/01/24		299,250	$	294,932
Zayo Group LLC 2017 Incremental Term Loan 3.478%, due 01/19/24		232,363		233,208
				528,140
Total loan assignments (cost—$10,047,039)				10,051,419
	Number of shares
Common stocks—0.47%
Energy-exploration & production—0.11%
Chaparral Energy, Inc.*,10,11		3,605		74,984
Chaparral Energy, Inc., Class A*,10		16,834		350,147
				425,131
Metals & mining—0.01%
Aleris International*,10		795		20,670
Oil, gas & consumable fuels—0.35%
Bonanza Creek Energy, Inc.*		11,869		344,662
Denbury Resources, Inc.*,5		36,546		53,357
Halcon Resources Corp.*		73,785		484,030
Linn Energy, Inc.*,10		2,576		90,546
Midstates Petroleum Co., Inc.*		395		5,601
Peabody Energy Corp.*,10,11		919		24,480
Peabody Energy Corp.*		11,313		317,217
SandRidge Energy, Inc.*		1,483		28,637
				1,348,530
Total common stocks (cost—$2,142,685)				1,794,331
Preferred stocks—0.12%
Oil, gas & consumable fuels—0.04%
Peabody Energy Corp.10		3,285		175,748
Transportation infrastructure—0.08%
Seaspan Corp.		11,327		291,670
Total preferred stocks (cost—$365,933)				467,418
	Number of warrants
Warrants—0.14%
Automobiles—0.14%
General Motors Co., strike price $18.33, expires 07/10/19*		30,621		548,728

	Number of warrants		Value
Warrants—(concluded)
Oil & Gas—0.00%†
SandRidge Energy, Inc. Strike price $41.34, expires 10/04/22*		2,784	$	2,227
Strike price $42.03, expires 10/04/22*		1,172		762
				2,989
Oil, gas & consumable fuels—0.00%†
Midstates Petroleum Co., Inc. strike price $24.00, expires 04/21/20*,10,11		2,804		1,400
Peabody Energy Corp., strike price $0.01, expires 07/03/17*,10,11		26		693
				2,093
Total warrants (cost—$276,823)				553,810
	Face amount1
Repurchase agreement—1.60%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $6,005,668 US Treasury Note, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$6,254,641); proceeds: $6,132,009 (cost—$6,132,000)		6,132,000		6,132,000
	Number of shares
Investment of cash collateral from securities loaned—10.18%
Money market fund—10.18%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$39,105,815)		39,105,815		39,105,815
Total investments (cost—$405,309,854)—109.40%				420,101,519
Liabilities in excess of other assets—(9.40)%				(36,086,629	)
Net assets—100.00%			$	384,014,890

For a listing of defined portfolio acronyms, counterparty acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes was $406,033,824; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	20,265,471
Gross unrealized depreciation		(6,197,776	)
Net unrealized appreciation	$	14,067,695

138

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Portfolio of investments—July 31, 2017

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
SSC	EUR	61,676,379	USD	70,294,789	08/01/17	$	(2,717,733	)
SSC	EUR	56,756,653	USD	66,680,497	09/01/17		(612,215	)
SSC	GBP	10,221,613	USD	13,250,839	08/01/17		(235,562	)
SSC	GBP	9,227,781	USD	12,087,101	09/01/17		(100,002	)
SSC	USD	135,000	EUR	115,842	08/01/17		2,134
SSC	USD	265,000	EUR	230,817	08/01/17		8,241
SSC	USD	4,896,000	EUR	4,295,151	08/01/17		188,602
SSC	USD	539,000	EUR	472,856	08/01/17		20,767
SSC	USD	864,000	GBP	671,353	08/01/17		21,784
						$	(3,423,984	)

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments.

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Corporate bonds	$	—	$	361,996,726		$	0	$	361,996,726
Loan assignments		—		9,903,488			147,931		10,051,419
Common stocks		1,674,197		99,464			20,670		1,794,331
Preferred stocks		291,670		175,748			—		467,418
Warrants		551,718		2,092			—		553,810
Repurchase agreement		—		6,132,000			—		6,132,000
Investment of cash collateral from securities loaned		—		39,105,815			—		39,105,815
Forward foreign currency contracts		—		241,528			—		241,528
Total	$	2,517,585	$	417,656,861		$	168,601	$	420,343,047
Liabilities
Forward foreign currency contracts	$	—	$	(3,665,512	)	$	—	$	(3,665,512	)

At July 31, 2017, there was a transfer between Level 1 and Level 2.

139

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Portfolio of investments—July 31, 2017

Level 3 rollforward disclosure

The following is a rollforward of the Portfolio's investments that was valued using unobservable inputs for the year ended July 31, 2017:

	Corporate bonds			Common stocks		Loan assignment		Total
Beginning balance	$	11,918		$	—	$	—	$	11,918
Purchases		—			13,981		—		13,981
Sales		(13,759	)		—		—		(13,759	)
Accrued discounts/(premiums)		(49	)		—		—		(49	)
Total realized gain/(loss)		—			—		—		—
Net change in unrealized appreciation/depreciation		1,890			6,689		—		8,579
Transfers into Level 3		—			—		147,931		147,931
Transfers out of Level 3		—			—		—		—
Ending balance	$	0		$	20,670	$	147,931	$	168,601

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at July 31, 2017, was $6,689. Transfers into Level 3 represent the value at the end of the period.

Portfolio footnotes

*  Non-income producing security.

^†  Amount represents less than 0.005%

¹  In US dollars unless otherwise indicated.

²  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

³  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.

⁴  Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

⁵  Security, or portion thereof, was on loan at the period end.

⁶  Payment-in-kind security for which interest may be paid in cash or additional principal, at the discretion of the issuer.

⁷  Variable or floating rate security. The interest rate shown is the current rate at the period end and changes periodically.

⁸  Perpetual investment. Date shown reflects the next call date.

⁹  Bond interest in default.

¹⁰  Illiquid investment at the period end.

¹¹  Security is being fair valued by a valuation committee under the direction of the board of trustees.

¹²  Step bond—coupon rate increases in increments to maturity. The rate disclosed is the rate at the period end; the maturity date disclosed is the ultimate maturity date.

¹³  Position is unsettled. Contract rate was not determined at July 31, 2017 and does not take effect until settlement.

¹⁴  These securities are considered illiquid and restricted. At the period end, the value of these securities amounted to 0.00% of net assets. The table below provides further information:

Illiquid & restricted security	Acquisition date	Acquisition cost		Acquisition cost as a percentage of net asset			Value at 07/31/17		Value as a percentage of net asset
Peabody Energy Corp., 10.000%, due 03/15/22	04/03/17	$	0		0.00	%	$	0		0.00	%
Midstates Petroleum Co., Inc./Midstates Petroleum Co. LLC, 10.750%, due 10/01/20	11/10/16		0		0.00			0		0.00
Sandridge Energy, Inc., 7.500%, due 03/15/21	10/04/16		0		0.00			0		0.00

See accompanying notes to financial statements.
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Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares returned 16.03% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Russell 1000 Value Index (the "benchmark") gained 13.76%, and the Lipper Large-Cap Value Funds category posted a median return of 15.58%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 144. 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 3.

Subadvisors' comments (Unaudited)²

Pzena

Our portion of the Portfolio significantly outperformed the benchmark during the reporting period. This was driven by our holdings in the financial, health care, technology and producer durables sectors. In addition, a lack of exposure to the utilities and consumer staples sectors, which were weak during the reporting period, was additive for results. Our top individual contributors to performance were in financials and included Bank of America Corp., Citigroup, Inc. and Morgan Stanley. Share prices for all three companies rose throughout the fiscal year, particularly on the strength of a post-US election rally and strong results in the most recent Federal Reserve stress test. Parker-Hannifin Corp., a leading manufacturer of hydraulic and motion control systems, also was a top contributor to results, benefiting from an improving economy and continued cost cutting initiatives. The largest detractor from performance was the consumer discretionary sector, although our weakest individual returns were energy holdings Cenovus Energy and Exxon Mobil. They were negatively impacted by lower oil prices and, in the case of Cenovus Energy, an expensive acquisition that increased debt on its balance sheet. As of the end of the reporting period, we continue to hold all of the aforementioned companies.

Improving fundamentals, coupled with wide valuation spreads, make for an attractive environment for deep value stocks. While there has been a shift in our portion of the Portfolio with the addition of health care holdings, we remain tilted toward cyclicals. Our largest position is in financials, as we take advantage of strong earnings growth from a better environment, combined with large expense reductions and increasing capital returns to shareholders. We also have exposure to the technology and consumer discretionary sectors, and a growing exposure in health care, as we take advantage of drug price fears. We currently have little or no exposure in consumer staples or utilities, as we are not finding opportunities in those sectors.

No derivatives were used in the portfolio during the reporting period.

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust – PACE Large Co Value Equity Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisors:

Pzena Investment Management, LLC ("Pzena");

Boston Partners Global Investors, Inc. ("Boston Partners");

Los Angeles Capital Management and Equity Research, Inc. ("Los Angeles Capital");

River Road Asset Management, LLC ("River Road")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Fred Lee, CFA, Vincent Russo, Mayoor Joshi and Diana To

Pzena: Richard S. Pzena, John J. Flynn and Benjamin Silver;

Boston Partners: Martin P. MacDonnell, CFA and Mark Donovan, CFA;

Los Angeles Capital: Thomas D. Stevens, CFA, Hal W. Reynolds, CFA and Daniel E. Allen, CFA;

River Road: Henry W. Sanders III, Thomas S. Forsha, James C. Shircliff

Objective:

Capital appreciation and dividend income

Investment process:

Pzena: The Portfolio 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 funda-

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PACE Large Co Value Equity Investments

Subadvisors' comments (Unaudited) – continued

Boston Partners

Our portion of the Portfolio outperformed the benchmark during the reporting period. Outperformance was the result of stock selection, coupled with allocation effect.

Strong stock selection in the technology and capital goods sectors contributed to results during the reporting period. In technology, owning high quality stocks such as Microsoft and TE Connectivity, both of which are not in the benchmark, has proven beneficial. Overweighting stocks that are in the benchmark, such as Apple, DXC Technology, and Leidos Holdings, also contributed to performance. In capital goods, not owning General Electric was rewarded. Also adding value was an overweight to the financial sector, especially in financial services and major banks.

Several short holdings also contributed to results. In particular, shorts to energy and consumer non-durables were the largest contributors to performance, as both sectors declined during the reporting period. Shorts of Hess Corp. and Southwestern Energy were also beneficial as their share prices fell. Within consumer non-durables, shorts to TreeHouse Foods and Mattel were additive as their shares declined as well. We covered and closed our short positions in Southwestern Energy and Mattel prior to the end of the reporting period as the companies reached our target price.

The largest detractor from performance largely came from stock selection and allocation effect in the health care sector. Health care supply company McKesson was the largest individual detractor. The transportation sector was also a detractor from performance. In particular, not owning CSX Corp. hurt relative performance. Short positions in the technology and capital goods sectors also detracted from results. Our short position in Telecommunications equipment company Arista Networks and electronic company Itron detracted from results, as they traded higher. In capital goods, machinery company Deere also traded higher during the period and detracted from performance.

Derivatives were not used during the reporting period.

Los Angeles Capital

Our portion of the Portfolio underperformed the benchmark during the reporting period, with fundamental factor exposures and industry tilts detracting from results. Exposure to companies with larger dividend yields and greater appraisal (intrinsic) value was the top detractor from returns as these companies underperformed. Additionally, companies with higher expected earnings growth fared well over the period and a tilt away from such companies further held back our results. Within industries, underweights to consumer services and diversified financials detracted notably from performance. On the upside, a tilt toward stocks with higher book-to-price multiples added value.

Among contributing factors, a modest exposure to companies with stronger one-year momentum was the leading contributor to performance as these

Investment process
(continued)

mental 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.

Boston Partners: The Portfolio invests primarily in a diversified portfolio of common stocks of issuers identified as having attractive value characteristics with strong fundamentals and positive business momentum. The Portfolio establishes a sell discipline for each security in the portfolio based on its target price, and may also sell a security if business fundamentals weaken or if an expected catalyst fails to materialize. The short side of the portfolio is selected by identifying the contra-characteristics that we look for on the long portfolio and covering a short if the stock reaches its fair value or there is a positive change in fundamentals or business momentum.

Los Angeles Capital: The Portfolio employs a "long/short" or "130/30" equity strategy. Los Angeles Capital buys securities "long" that it believes will outperform the market or decrease portfolio risk, and sells securities "short" that it believes will underperform the market. The Portfolio uses Los Angeles Capital's proprietary quantitative model that includes fundamental data

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PACE Large Co Value Equity Investments

Subadvisors' comments (Unaudited) – concluded

historical winners continued to rally over the reporting period. Additionally, tilts toward securities with greater financial risk, as measured by distress and leverage, and companies with larger sources of foreign revenue added to our returns. Smaller-cap companies in the Russell 1000 Value Index were also rewarded during the period, and a tilt toward these companies added value. Within industries, overweights to banks, insurance, and technology hardware and equipment contributed to returns.

As of the end of the reporting period, our portion of the Portfolio was overweight technology, capital goods and health care, while being underweight retail, finance and biotechnology. Our portion of the Portfolio exhibited a lower price-to-earnings multiple, a lower price-to-book multiple and a lower dividend yield relative to the Russell 1000 Value Index. We also displayed an earnings growth rate above the benchmark level and were tilted toward relatively smaller companies.

Derivatives were not used during the reporting period.

River Road Asset Management

Our portion of the Portfolio underperformed the benchmark during the reporting period. The most significant positive impacts on performance were stock selection in the real estate sector and an underweight in the health care sector. Four of our seven real estate holdings outperformed their respective broader sector returns. The three holdings with the largest contributions to our returns during the reporting period were PNC Financial Services Group, Microsoft and BB&T.

On the downside, overall stock selection and sector allocation were both negative for results. The most significant detractors were stock selection in the consumer discretionary sector and an underweight in financials. Of our 14 holdings in the consumer discretionary sector, 11 underperformed the broader sector return, including Target, our weakest performer during the reporting period. The other two largest detractors were W.W. Grainger and Verizon Communications. As of the end of the reporting period, we continue to hold all of the aforementioned companies.

Derivatives were not used during the reporting period.

Investment process
(concluded)

inputs for a universe of equity securities and, through the use of statistical tools, estimates expected returns based on each security's risk characteristics and the expected return to each characteristic in the current market environment.

River Road: The Portfolio utilizes a fundamentally driven research process to identify attractive purchase candidates from an all cap universe of high yielding equity securities. The firm seeks to invest in well-managed, financially strong companies with high and growing dividends, targeting companies that are also trading at a meaningful discount to the Portfolio's assessed valuation. The stock selection process is complemented by a risk averse approach that employs balanced diversification and a structured sell discipline.

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.

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PACE Large Co Value Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		15.74	%		13.84	%		5.84	%
Class C2		14.80			12.95			5.00
Class Y3		16.02			14.12			6.13
Class P4		16.03			14.12			6.10
After deducting maximum sales charge
Class A1		9.38			12.55			5.25
Class C2		13.80			12.95			5.00
Russell 1000 Value Index5		13.76			14.00			6.21
Lipper Multi-Cap Value Funds median6		15.47			13.35			5.71
Lipper Large-Cap Value Funds median6		15.58			13.05			5.45

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		17.93	%		13.60	%		5.30	%
Class C2		17.02			12.70			4.47
Class Y3		18.27			13.87			5.59
Class P4		18.23			13.87			5.56
After deducting maximum sales charge
Class A1		11.46			12.33			4.71
Class C2		16.02			12.70			4.47

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.48% and 1.48%; Class C—2.26% and 2.26%; Class Y—1.23% and 1.23%; and Class P—1.24% and 1.24% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.27%; Class C—2.02%; Class Y—1.02%; and Class P—1.02% The Portfolio has agreed to repay UBS 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 AM. Upon termination of the agreement, however, UBS 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 of 0.25% annually.

²  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 of 0.25% and 0.75% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The Russell 1000 Value Index measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 Index 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.

⁶  On June 15 2017, Lipper changed the peer group classification for PACE Large Co Value Equity Investments from the Large-Cap Value Funds category to the Multi-Cap Value Funds category.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

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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, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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.

PACE Large Co Value Equity Investments

145

PACE Large Co Value Equity Investments

Portfolio statistics—July 31, 2017 (unaudited)

Top ten holdings (long holdings)1	Percentage of net assets
Citigroup, Inc.		2.5	%
JPMorgan Chase & Co.		2.3
Bank of America Corp.		2.2
Chevron Corp.		1.7
Wells Fargo & Co.		1.7
Berkshire Hathaway, Inc., Class B		1.6
Exxon Mobil Corp.		1.5
Oracle Corp.		1.5
The Goldman Sachs Group, Inc.		1.5
Wal-Mart Stores, Inc.		1.5
Total		18.0	%
Top ten holdings (short holdings)1	Percentage of net assets
TreeHouse Foods, Inc.		(0.2	)%
PulteGroup, Inc.		(0.2	)
Assurant, Inc.		(0.2	)
Capital One Financial Corp.		(0.2	)
Flowserve Corp.		(0.2	)
T Rowe Price Group, Inc.		(0.2	)
Casey's General Stores, Inc.		(0.2	)
Navient Corp.		(0.2	)
Synchrony Financial		(0.2	)
HollyFrontier Corp.		(0.2	)
Total		(2.0	)%
Top five issuer breakdown by country or territory of origin (long holdings)1	Percentage of net assets
United States		99.5	%
Bermuda		2.7
Ireland		2.1
United Kingdom		2.0
Switzerland		1.7
Total		108.0	%
Sectors (long holdings)1	Percentage of net assets
Financials		32.9	%
Information Technology		15.4
Health Care		12.2
Consumer Discretionary		11.8
Industrials		11.6
Energy		11.5
Consumer Staples		6.2
Materials		6.0
Utilities		2.8
Telecommunication Services		1.3
Total		111.7	%
Top five issuer breakdown by country or territory of origin (short holdings)1	Percentage of net assets
United States		(12.3	)%
Bermuda		(0.3	)
Netherlands		(0.2	)
Ireland		(0.1	)
India		(0.1	)
Total		(13.0	)%
Sectors (short holdings)1	Percentage of net assets
Financials		(3.9	)%
Consumer Discretionary		(1.9	)
Information Technology		(1.8	)
Industrials		(1.4	)
Energy		(1.1	)
Health Care		(1.0	)
Materials		(1.0	)
Consumer Staples		(0.8	)
Utilities		(0.2	)
Telecommunication Services		(0.1	)
Total		(13.2	)%

¹  The Portfolio is actively managed and its composition will vary over time.

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PACE Large Co Value Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—111.72%
Aerospace & defense—1.57%
Arconic, Inc.		20,976	$	519,995
General Dynamics Corp.		33,195		6,517,174
Raytheon Co.		31,940		5,486,334
Spirit AeroSystems Holdings, Inc., Class A		22,584		1,364,751
United Technologies Corp.		60,734		7,201,231
				21,089,485
Air freight & logistics—0.61%
United Parcel Service, Inc., Class B		67,456		7,439,722
XPO Logistics, Inc.*,1		12,970		779,627
				8,219,349
Airlines—0.91%
American Airlines Group, Inc.		8,810		444,377
Delta Air Lines, Inc.		90,201		4,452,321
JetBlue Airways Corp.*		17,970		394,082
Southwest Airlines Co.		48,011		2,665,091
Spirit Airlines, Inc.*		24,040		933,954
United Continental Holdings, Inc.*		50,221		3,398,957
				12,288,782
Auto components—0.59%
Adient PLC		16,990		1,112,335
BorgWarner, Inc.1		108,475		5,070,121
Gentex Corp.		52,800		898,656
Lear Corp.		6,050		896,550
				7,977,662
Automobiles—0.58%
Ford Motor Co.		609,346		6,836,862
General Motors Co.		25,850		930,083
				7,766,945
Banks—6.87%
BB&T Corp.		303,914		14,381,211
Commerce Bancshares, Inc.1		43,977		2,552,425
East West Bancorp, Inc.2		56,492		3,218,914
Fifth Third Bancorp		181,899		4,856,703
Lloyds Banking Group PLC, ADR 1		599,967		2,111,884
People's United Financial, Inc.1		26,710		465,822
Popular, Inc.		53,554		2,256,766
Regions Financial Corp.		771,096		11,258,002
SunTrust Banks, Inc.		32,058		1,836,603
Synovus Financial Corp.		65,580		2,851,418
TCF Financial Corp.		36,403		573,711
The PNC Financial Services Group, Inc.		58,470		7,530,936
US Bancorp		284,031		14,991,156
Wells Fargo & Co.2		417,817		22,537,049
Western Alliance Bancorp*		18,550		934,549
				92,357,149
Beverages—0.96%
Coca-Cola European Partners PLC		71,454		3,088,956
Molson Coors Brewing Co., Class B		22,520		2,003,830
PepsiCo, Inc.		49,435		5,764,615
The Coca-Cola Co.		44,400		2,035,296
				12,892,697

	Number of shares		Value
Common stocks—(continued)
Biotechnology—1.23%
Amgen, Inc.		55,225	$	9,637,315
Gilead Sciences, Inc.		90,375		6,876,634
				16,513,949
Building products—0.95%
Johnson Controls International PLC		236,558		9,213,934
Masco Corp.		52,812		2,013,722
Owens Corning		22,150		1,485,157
				12,712,813
Capital markets—4.49%
BlackRock, Inc.		1,890		806,142
CME Group, Inc.		10,458		1,282,360
Franklin Resources, Inc.		221,796		9,932,025
Intercontinental Exchange, Inc.		19,700		1,314,187
Morgan Stanley		232,266		10,893,275
State Street Corp.		92,547		8,628,157
The Goldman Sachs Group, Inc.2		88,993		20,052,792
Thomson Reuters Corp.		161,000		7,388,290
				60,297,228
Chemicals—2.76%
Cabot Corp.		24,380		1,324,565
Celanese Corp., Series A		35,014		3,367,296
Eastman Chemical Co.		12,850		1,068,606
FMC Corp.		20,864		1,593,592
LyondellBasell Industries N.V., Class A		55,663		5,014,680
Methanex Corp.		53,132		2,353,748
Praxair, Inc.		101,606		13,225,037
The Dow Chemical Co.		135,802		8,723,921
The Mosaic Co.		20,042		483,814
				37,155,259
Commercial services & supplies—0.42%
KAR Auction Services, Inc.		114,684		4,821,315
Waste Management, Inc.		11,000		826,650
				5,647,965
Communications equipment—1.72%
Brocade Communications Systems, Inc.		16,856		212,891
Cisco Systems, Inc.2		304,365		9,572,279
CommScope Holding Co., Inc.*		34,320		1,262,290
Harris Corp.		10,689		1,223,570
Juniper Networks, Inc.		87,829		2,454,820
Motorola Solutions, Inc.1		92,013		8,343,739
				23,069,589
Construction & engineering—0.11%
AECOM*		35,260		1,124,794
Fluor Corp.		8,951		388,742
				1,513,536
Construction materials—0.29%
Cemex SAB de C.V., ADR*,1		251,287		2,439,997
CRH PLC, ADR		42,288		1,483,040
				3,923,037

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PACE Large Co Value Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Consumer finance—1.58%
Capital One Financial Corp.		131,330	$	11,318,019
Discover Financial Services		88,576		5,397,821
Navient Corp.		143,338		2,114,236
Synchrony Financial		78,280		2,373,450
				21,203,526
Containers & packaging—1.13%
AptarGroup, Inc.1		22,031		1,782,969
Bemis Co., Inc.		38,350		1,624,889
Berry Global Group, Inc.*		14,533		815,011
Crown Holdings, Inc.*		34,321		2,041,070
Graphic Packaging Holding Co.		95,457		1,259,078
International Paper Co.		8,259		454,080
Sonoco Products Co.		44,252		2,145,337
WestRock Co.		87,767		5,039,581
				15,162,015
Diversified financial services—7.76%
Bank of America Corp.2		1,221,394		29,460,023
Citigroup, Inc.2		489,940		33,536,393
JPMorgan Chase & Co.2		337,399		30,973,228
Leucadia National Corp.		48,291		1,257,015
Voya Financial, Inc.		230,938		9,062,007
				104,288,666
Diversified telecommunication services—1.33%
AT&T, Inc.2		133,163		5,193,357
Cogent Communications Holdings, Inc.		92,640		3,867,720
Verizon Communications, Inc.		181,922		8,805,025
				17,866,102
Electric utilities—1.10%
AES Corp.		328,637		3,674,162
American Electric Power Co., Inc.		22,287		1,572,125
Duke Energy Corp.		12,988		1,105,539
Edison International		21,565		1,696,734
Exelon Corp.		28,931		1,109,215
FirstEnergy Corp.		42,176		1,345,836
Hawaiian Electric Industries, Inc.		21,253		701,136
NextEra Energy, Inc.		5,930		866,314
PG&E Corp.		13,970		945,629
The Southern Co.		16,550		793,241
Xcel Energy, Inc.		19,355		915,685
				14,725,616
Electrical equipment—1.14%
Eaton Corp. PLC		93,892		7,347,049
Emerson Electric Co.		134,654		8,026,725
				15,373,774
Electronic equipment, instruments & components—2.92%
Arrow Electronics, Inc.*		13,205		1,073,434
Corning, Inc.		435,204		12,681,845
Dolby Laboratories, Inc., Class A		24,680		1,277,190
Flex Ltd.*		307,217		4,912,400
FLIR Systems, Inc.		35,570		1,327,472

	Number of shares		Value
Common stocks—(continued)
Electronic equipment, instruments & components—(concluded)
Jabil, Inc.		65,041	$	1,983,751
TE Connectivity Ltd.2		198,532		15,959,987
				39,216,079
Energy equipment & services—0.63%
Ensco PLC, Class A		102,912		544,405
Halliburton Co.		111,280		4,722,723
National Oilwell Varco, Inc.		16,290		532,846
Noble Corp. PLC1		114,870		459,480
Rowan Cos., PLC, Class A*		60,751		708,964
Schlumberger Ltd.		8,240		565,264
Transocean Ltd.*,1		107,220		927,453
				8,461,135
Equity real estate investment trusts—5.13%
Brandywine Realty Trust		50,100		842,181
Columbia Property Trust, Inc.		58,550		1,273,462
CoreCivic, Inc.		11,090		307,193
DCT Industrial Trust, Inc.		25,650		1,445,121
EPR Properties		17,117		1,238,928
Equity Commonwealth*		59,580		1,881,536
Highwoods Properties Inc		27,350		1,409,072
Hospitality Properties Trust		42,795		1,243,623
Iron Mountain, Inc.		406,731		14,817,210
Life Storage, Inc.		6,930		506,167
Mid-America Apartment Communities, Inc.		6,584		681,642
Paramount Group, Inc.		51,910		849,767
Retail Properties of America, Inc., Class A		112,920		1,493,932
Ryman Hospitality Properties, Inc.		135,431		8,476,626
Sabra Health Care REIT, Inc.1		216,378		5,019,970
STORE Capital Corp.		55,884		1,307,127
The GEO Group, Inc.1		170,157		4,994,108
Uniti Group, Inc.*,1		202,257		5,177,779
Ventas, Inc.		124,726		8,400,296
Weingarten Realty Investors		27,786		901,934
Weyerhaeuser Co.		202,908		6,700,022
				68,967,696
Food & staples retailing—2.40%
CVS Health Corp.2		146,300		11,693,759
Wal-Mart Stores, Inc.		245,514		19,638,665
Walgreens Boots Alliance, Inc.		12,300		992,241
				32,324,665
Food products—0.38%
Mondelez International, Inc., Class A		37,386		1,645,732
Nomad Foods Ltd.*		169,712		2,418,396
Post Holdings, Inc.*		7,880		655,616
The J.M. Smucker Co.		3,374		411,290
				5,131,034
Gas utilities—1.29%
AmeriGas Partners LP		117,930		5,372,891
National Fuel Gas Co.1		202,701		12,001,926
				17,374,817

148

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Health care equipment & supplies—0.56%
Baxter International, Inc.		27,630	$	1,671,062
Danaher Corp.		21,320		1,737,367
Medtronic PLC		34,390		2,887,728
The Cooper Cos., Inc.		5,010		1,221,789
				7,517,946
Health care providers & services—4.16%
Aetna, Inc.		9,060		1,398,049
Anthem, Inc.2		43,711		8,139,425
Cardinal Health, Inc.		104,124		8,044,620
Centene Corp.*		20,770		1,649,553
Cigna Corp.		65,749		11,411,396
DaVita, Inc.*		28,357		1,836,967
Express Scripts Holding Co.*		84,144		5,270,780
Laboratory Corp. of America Holdings*		12,597		2,001,789
McKesson Corp.		42,944		6,951,345
MEDNAX, Inc.*,1		6,860		322,283
Owens & Minor, Inc.		159,889		5,153,223
UnitedHealth Group, Inc.		19,485		3,737,418
				55,916,848
Hotels, restaurants & leisure—1.70%
Aramark		9,610		383,055
Cedar Fair LP		57,357		3,982,870
Extended Stay America, Inc.		459,449		9,083,307
Hilton Worldwide Holdings, Inc.		93,573		5,851,120
Marriott International, Inc., Class A		6,780		706,408
Norwegian Cruise Line Holdings Ltd.*		33,260		1,831,628
Royal Caribbean Cruises Ltd.		8,430		953,180
				22,791,568
Household durables—0.17%
Garmin Ltd.1		18,340		920,484
Mohawk Industries, Inc.*		5,620		1,399,324
				2,319,808
Household products—0.83%
Kimberly-Clark Corp.		51,230		6,309,487
The Procter & Gamble Co.2		54,034		4,907,368
				11,216,855
Industrial conglomerates—0.98%
General Electric Co.2		219,223		5,614,301
Koninklijke Philips N.V.		157,004		5,992,843
Roper Technologies, Inc.		6,870		1,597,000
				13,204,144
Insurance—7.70%
American Financial Group, Inc.		12,484		1,265,878
American International Group, Inc.		184,679		12,087,241
American National Insurance Co.		3,640		433,160
Arch Capital Group Ltd.*		11,590		1,127,243
Arthur J. Gallagher & Co.		15,430		907,130
Aspen Insurance Holdings Ltd.		35,180		1,716,784
Assured Guaranty Ltd.		65,050		2,927,900
Athene Holding Ltd., Class A*		12,620		637,689
Axis Capital Holdings Ltd.		214,088		13,825,803

	Number of shares		Value
Common stocks—(continued)
Insurance—(concluded)
Berkshire Hathaway, Inc., Class B*,2		121,502	$	21,259,205
Chubb Ltd.		36,010		5,274,025
CNA Financial Corp.1		50,803		2,639,216
Everest Re Group Ltd.		3,669		962,709
Fairfax Financial Holdings Ltd.		1,522		724,854
First American Financial Corp.		51,710		2,503,281
Lincoln National Corp.		9,250		675,805
Mercury General Corp.1		10,546		631,600
MetLife, Inc.		327,481		18,011,455
Old Republic International Corp.		97,700		1,916,874
ProAssurance Corp.		30,019		1,855,174
Prudential Financial, Inc.		9,780		1,107,389
RenaissanceRe Holdings Ltd.		9,075		1,333,208
The Allstate Corp.		44,601		4,058,691
The Hanover Insurance Group, Inc.		20,442		1,939,128
The Travelers Cos., Inc.		10,455		1,339,181
Validus Holdings Ltd.		20,307		1,092,313
White Mountains Insurance Group Ltd.		1,380		1,193,148
				103,446,084
Internet & catalog retail—0.08%
Liberty Interactive Corp. QVC Group, Class A*		42,646		1,020,945
Internet & direct marketing retail—0.05%
Liberty Expedia Holdings, Inc., Class A*		12,097		690,134
Internet software & services—1.15%
Akamai Technologies, Inc.*		9,090		428,503
Alphabet, Inc., Class A*,2		6,897		6,521,113
eBay, Inc.*,2		219,024		7,825,727
VeriSign, Inc.*,1		6,710		678,851
				15,454,194
IT services—1.62%
Alliance Data Systems Corp.		4,299		1,037,908
Cognizant Technology Solutions Corp., Class A		169,154		11,725,755
DXC Technology Co.		91,914		7,204,219
International Business Machines Corp.		6,940		1,004,010
Leidos Holdings, Inc.		16,090		859,850
				21,831,742
Leisure products—0.41%
Hasbro, Inc.		10,559		1,117,987
Polaris Industries, Inc.1		48,540		4,352,096
				5,470,083
Life sciences tools & services—0.50%
Agilent Technologies, Inc.		37,718		2,255,159
Bio-Rad Laboratories, Inc., Class A*		5,410		1,274,759
QIAGEN NV*		39,736		1,304,930
Quintiles IMS Holdings, Inc.*		8,906		806,438
Thermo Fisher Scientific, Inc.		5,854		1,027,553
				6,668,839
Machinery—1.88%
Caterpillar, Inc.		12,912		1,471,322
Colfax Corp.*		14,310		590,717
Crane Co.		23,180		1,750,090

149

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Machinery—(concluded)
Dover Corp.		108,475	$	9,111,900
Fortive Corp.		12,120		784,649
Ingersoll-Rand PLC		10,930		960,528
Parker-Hannifin Corp.		16,660		2,765,227
Stanley Black & Decker, Inc.		29,843		4,198,612
Trinity Industries, Inc.		48,680		1,334,319
Xylem, Inc.		40,485		2,296,714
				25,264,078
Media—5.43%
CBS Corp., Class B		37,665		2,479,487
Charter Communications, Inc., Class A*		2,080		815,173
Cinemark Holdings, Inc.		253,108		9,845,901
Comcast Corp., Class A		108,730		4,398,129
Liberty Global PLC LiLAC, Class C*		68,202		1,740,515
Liberty Media Corp., Class C*		25,170		1,157,820
Liberty Media Corp., Class C*		39,350		1,383,940
News Corp., Class A		351,165		5,025,171
Omnicom Group, Inc.		197,933		15,585,245
The Interpublic Group Cos., Inc.		629,628		13,606,261
The Madison Square Garden Co., Class A*		8,310		1,825,873
Time Warner, Inc.2		90,508		9,269,829
Twenty-First Century Fox, Inc., Class A		200,644		5,838,740
				72,972,084
Metals & mining—1.32%
Alcoa Corp.		20,000		728,000
Barrick Gold Corp.		181,112		3,062,604
Compass Minerals International, Inc.1		95,610		6,601,870
Newmont Mining Corp.		59,306		2,204,404
Nucor Corp.		27,086		1,562,050
Steel Dynamics, Inc.		101,868		3,607,146
				17,766,074
Mortgage real estate investment trusts—0.45%
Chimera Investment Corp.		89,120		1,677,239
MFA Financial, Inc.		175,921		1,493,569
Starwood Property Trust, Inc.		84,340		1,858,854
Two Harbors Investment Corp.		106,460		1,052,889
				6,082,551
Multi-utilities—0.28%
Ameren Corp.		19,514		1,094,735
CenterPoint Energy, Inc.		31,228		880,317
Dominion Energy, Inc.		12,365		954,331
MDU Resources Group, Inc.		14,300		376,805
Vectren Corp.		7,760		466,454
				3,772,642
Multiline retail—0.57%
Target Corp.1		135,032		7,652,263
Oil, gas & consumable fuels—10.96%
Anadarko Petroleum Corp.		22,570		1,030,772
Andeavor		41,500		4,130,495
Apache Corp.1		31,248		1,546,151
BP PLC, ADR 1		139,625		4,906,423

	Number of shares		Value
Common stocks—(continued)
Oil, gas & consumable fuels—(concluded)
Cenovus Energy, Inc.		620,034	$	5,214,486
Chevron Corp.2		210,744		23,011,137
Cimarex Energy Co.		5,654		559,916
ConocoPhillips		108,891		4,940,385
Devon Energy Corp.		26,230		873,721
Diamondback Energy, Inc.*		30,705		2,943,995
Energen Corp.*		41,866		2,230,621
EOG Resources, Inc.		12,070		1,148,340
EQT Corp.1		23,178		1,476,439
Exxon Mobil Corp.2		257,558		20,614,942
Gulfport Energy Corp.*		59,831		755,067
Jagged Peak Energy, Inc.*,1		52,655		745,595
Kinder Morgan, Inc.		68,618		1,401,866
Magellan Midstream Partners LP		88,352		6,163,436
Marathon Oil Corp.		117,455		1,436,475
Marathon Petroleum Corp.		323,530		18,114,445
Murphy Oil Corp.1		127,580		3,391,076
Noble Energy, Inc.		16,930		489,446
Occidental Petroleum Corp.		122,621		7,593,919
Phillips 66		43,799		3,668,166
Pioneer Natural Resources Co		9,803		1,598,869
Royal Dutch Shell PLC, Class A, ADR		175,817		9,938,935
Spectra Energy Partners LP		184,292		8,329,998
The Williams Cos., Inc.		24,630		782,741
Valero Energy Corp.		104,233		7,188,950
World Fuel Services Corp.		33,560		1,085,330
				147,312,137
Personal products—1.29%
Coty, Inc., Class A1		347,519		7,117,189
Edgewell Personal Care Co.*		11,250		812,250
Nu Skin Enterprises, Inc., Class A		10,054		637,021
Unilever PLC, ADR		153,754		8,762,441
				17,328,901
Pharmaceuticals—5.87%
Abbott Laboratories		173,075		8,511,828
Allergan PLC2		13,860		3,497,294
Johnson & Johnson2		135,798		18,023,110
Merck & Co., Inc.2		235,795		15,062,585
Mylan NV*		232,897		9,080,654
Novo Nordisk A/S, ADR		144,082		6,109,077
Pfizer, Inc.2		374,510		12,418,752
Sanofi, ADR		90,074		4,265,905
Shire PLC, ADR		11,376		1,905,935
				78,875,140
Professional services—1.06%
IHS Markit Ltd.*,2		67,740		3,160,071
Nielsen Holdings PLC		231,257		9,946,363
The Dun & Bradstreet Corp.		10,480		1,160,765
				14,267,199
Road & rail—0.66%
Union Pacific Corp.		85,987		8,853,222

150

PACE Large Co Value Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(concluded)
Semiconductors & semiconductor equipment—2.92%
Applied Materials, Inc.		9,110	$	403,664
Intel Corp.2		520,129		18,448,976
KLA-Tencor Corp.		30,654		2,839,480
Marvell Technology Group Ltd.		129,630		2,017,043
Qorvo, Inc.*		8,170		560,135
QUALCOMM, Inc.		161,942		8,613,695
Teradyne, Inc.2		90,690		3,136,967
Texas Instruments, Inc.		39,399		3,206,290
				39,226,250
Software—2.70%
Autodesk, Inc.*		13,810		1,530,010
Electronic Arts, Inc.*		6,821		796,284
Microsoft Corp.		147,459		10,720,269
Oracle Corp.2		403,543		20,148,902
Symantec Corp.		45,386		1,406,512
Synopsys, Inc.*		22,000		1,684,540
				36,286,517
Specialty retail—1.11%
Burlington Stores, Inc.*		13,180		1,147,055
Lowe's Cos., Inc.		17,552		1,358,525
Staples, Inc.1		569,701		5,782,465
The Home Depot, Inc.		27,771		4,154,542
The TJX Cos., Inc.		36,175		2,543,464
				14,986,051
Technology hardware, storage & peripherals—2.39%
Apple, Inc.2		52,063		7,743,330
Hewlett Packard Enterprise Co.		642,547		11,250,998
HP, Inc.		410,747		7,845,268
NetApp, Inc.		45,660		1,982,557
Seagate Technology PLC1		62,363		2,055,485
Western Digital Corp.		14,320		1,218,918
				32,096,556
Textiles, apparel & luxury goods—0.21%
Carter's, Inc.		11,901		1,032,174
PVH Corp.		8,619		1,028,160
Skechers U.S.A., Inc., Class A*		25,610		719,385
				2,779,719
Tobacco—0.36%
Philip Morris International, Inc.2		41,300		4,820,123
Trading companies & distributors—1.50%
Air Lease Corp.		12,770		505,437
Aircastle Ltd.1		185,554		4,367,941
Fastenal Co.		232,247		9,977,331
MSC Industrial Direct Co., Inc., Class A		14,080		1,002,637
United Rentals, Inc.*		3,380		402,085
W.W.Grainger, Inc.1		20,333		3,390,324
WESCO International, Inc.*		9,770		500,712
				20,146,467
Total common stocks (cost—$1,313,074,514)				1,501,557,734

	Number of rights			Value
Rights—0.00%†
Safeway Casa Ley CVR*,1,3,4		35,500		$	8,875
Safeway PDC LLC CVR*,1,3,4		35,500			1,065
Total rights (cost—$37,026)					9,940
	Face amount
Repurchase agreement—1.49%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $19,574,245 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$20,385,722); proceeds: $19,986,028 (cost—$19,986,000)	$	19,986,000			19,986,000
	Number of shares
Investment of cash collateral from securities loaned—0.85%
Money market fund—0.85%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$11,377,818)		11,377,818			11,377,818
Total investments before investments sold short (cost—$1,344,475,358)—114.06%					1,532,931,492
Investments sold short—(13.17)%
Common stocks—(13.17)%
Aerospace & defense—(0.06)%
Huntington Ingalls Industries, Inc.		(3,570	)		(735,813	)
Airlines—(0.07)%
Delta Air Lines, Inc.		(18,330	)		(904,769	)
Auto components—(0.24)%
Autoliv, Inc.		(14,867	)		(1,611,434	)
BorgWarner, Inc.		(33,820	)		(1,580,747	)
					(3,192,181	)
Banks—(1.24)%
CIT Group, Inc.		(20,770	)		(989,690	)
Comerica, Inc.		(7,940	)		(574,141	)
Community Bank System, Inc.		(24,297	)		(1,333,905	)
Cullen/Frost Bankers, Inc.		(7,394	)		(671,227	)
CVB Financial Corp.		(47,964	)		(1,033,145	)
First Financial Bankshares, Inc.		(34,798	)		(1,505,014	)
Glacier Bancorp, Inc.		(17,805	)		(621,751	)
KeyCorp		(86,750	)		(1,564,970	)
M&T Bank Corp.		(7,866	)		(1,283,338	)
People's United Financial, Inc.		(41,119	)		(717,115	)
SVB Financial Group		(6,920	)		(1,234,805	)
Trustmark Corp.		(23,097	)		(738,180	)
UMB Financial Corp.		(9,503	)		(661,979	)
United Bankshares, Inc.		(33,161	)		(1,144,055	)

151

PACE Large Co Value Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
Banks—(concluded)
Valley National Bancorp		(70,294	)	$	(835,093	)
Westamerica BanCorp.		(23,845	)		(1,304,798	)
Zions BanCorp.		(10,293	)		(466,479	)
					(16,679,685	)
Biotechnology—(0.19)%
Gilead Sciences, Inc.		(12,190	)		(927,537	)
United Therapeutics Corp.		(12,940	)		(1,661,496	)
					(2,589,033	)
Capital markets—(0.57)%
Ameriprise Financial, Inc.		(10,360	)		(1,500,957	)
E*TRADE Financial Corp.		(11,890	)		(487,490	)
FactSet Research Systems, Inc.		(3,996	)		(668,211	)
Legg Mason, Inc.		(46,300	)		(1,852,463	)
T Rowe Price Group, Inc.		(27,100	)		(2,241,712	)
TD Ameritrade Holding Corp.		(19,063	)		(871,751	)
					(7,622,584	)
Chemicals—(0.63)%
Air Products & Chemicals, Inc.		(4,275	)		(607,691	)
Axalta Coating Systems Ltd.		(22,618	)		(712,467	)
Balchem Corp.		(16,617	)		(1,289,479	)
CF Industries Holdings, Inc.		(24,860	)		(729,641	)
Ingevity Corp.		(21,731	)		(1,271,264	)
International Flavors & Fragrances, Inc.		(6,277	)		(835,971	)
NewMarket Corp.		(3,303	)		(1,519,743	)
Platform Specialty Products Corp.		(94,180	)		(1,319,462	)
Valvoline, Inc.		(10,487	)		(237,740	)
					(8,523,458	)
Commercial services & supplies—(0.14)%
Mobile Mini, Inc.		(29,586	)		(911,249	)
Rollins, Inc.		(21,387	)		(928,410	)
					(1,839,659	)
Communications equipment—(0.14)%
Arista Networks, Inc.		(7,011	)		(1,046,672	)
ViaSat, Inc.		(13,582	)		(897,635	)
					(1,944,307	)
Construction & engineering—(0.18)%
Chicago Bridge & Iron Co. N.V.		(48,010	)		(899,707	)
Jacobs Engineering Group, Inc.		(10,584	)		(557,989	)
KBR, Inc.		(67,830	)		(1,012,024	)
					(2,469,720	)
Construction materials—(0.04)%
Vulcan Materials Co.		(4,450	)		(547,884	)
Consumer finance—(0.61)%
Ally Financial, Inc.		(26,920	)		(609,469	)
Capital One Financial Corp.		(28,490	)		(2,455,268	)
Discover Financial Services		(13,590	)		(828,175	)
Navient Corp.		(150,679	)		(2,222,515	)

	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
Consumer finance—(concluded)
Synchrony Financial		(70,740	)	$	(2,144,837	)
					(8,260,264	)
Containers & packaging—(0.23)%
AptarGroup, Inc.		(8,392	)		(679,165	)
Ball Corp.		(42,785	)		(1,792,691	)
Sonoco Products Co.		(13,223	)		(641,051	)
					(3,112,907	)
Diversified consumer services—(0.07)%
H&R Block, Inc.		(29,850	)		(910,425	)
Electric utilities—(0.08)%
Avangrid, Inc.		(8,240	)		(374,261	)
OGE Energy Corp.		(19,940	)		(715,048	)
					(1,089,309	)
Electronic equipment, instruments & components—(0.43)%
Avnet, Inc.		(37,630	)		(1,444,239	)
Itron, Inc.		(13,651	)		(996,523	)
National Instruments Corp.		(49,613	)		(2,041,079	)
Trimble, Inc.		(23,503	)		(879,717	)
Zebra Technologies Corp., Class A		(4,620	)		(469,947	)
					(5,831,505	)
Energy equipment & services—(0.48)%
Helmerich & Payne, Inc.		(15,440	)		(781,573	)
National Oilwell Varco, Inc.		(31,209	)		(1,020,846	)
Patterson-UTI Energy, Inc.		(43,620	)		(843,611	)
RPC, Inc.		(68,178	)		(1,411,966	)
Superior Energy Services, Inc.		(63,340	)		(681,538	)
Transocean Ltd.		(78,692	)		(680,686	)
Weatherford International PLC		(238,080	)		(1,061,837	)
					(6,482,057	)
Equity real estate investment trusts—(0.39)%
HCP, Inc.		(23,990	)		(759,284	)
Pebblebrook Hotel Trust		(37,846	)		(1,274,275	)
Realty Income Corp.		(11,071	)		(631,711	)
SL Green Realty Corp.		(7,784	)		(803,854	)
Ventas, Inc.		(10,030	)		(675,520	)
Washington Prime Group, Inc.		(122,139	)		(1,101,694	)
					(5,246,338	)
Food & staples retailing—(0.25)%
Casey's General Stores, Inc.		(20,833	)		(2,223,923	)
Costco Wholesale Corp.		(5,327	)		(844,383	)
PriceSmart, Inc.		(4,063	)		(342,307	)
					(3,410,613	)
Food products—(0.37)%
Blue Buffalo Pet Products, Inc.		(36,155	)		(808,787	)
Pilgrim's Pride Corp.		(23,940	)		(581,503	)
Snyder's-Lance, Inc.		(24,643	)		(857,330	)
TreeHouse Foods, Inc.		(31,638	)		(2,683,852	)
					(4,931,472	)

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Portfolio of investments—July 31, 2017

	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
Gas utilities—(0.07)%
UGI Corp.		(19,330	)	$	(975,585	)
Health care equipment & supplies—(0.05)%
West Pharmaceutical Services, Inc.		(6,930	)		(614,691	)
Health care providers & services—(0.38)%
Acadia Healthcare Co., Inc.		(21,190	)		(1,121,587	)
AmerisourceBergen Corp.		(5,629	)		(528,113	)
Diplomat Pharmacy, Inc.		(82,845	)		(1,314,750	)
Express Scripts Holding Co.		(8,610	)		(539,330	)
Henry Schein, Inc.		(3,120	)		(568,495	)
Patterson Cos., Inc.		(10,800	)		(450,576	)
Premier, Inc., Class A		(16,180	)		(564,682	)
					(5,087,533	)
Health care technology—(0.17)%
Medidata Solutions, Inc.		(17,672	)		(1,357,386	)
Veeva Systems, Inc., Class A		(13,690	)		(872,875	)
					(2,230,261	)
Hotels, restaurants & leisure—(0.44)%
Aramark		(21,908	)		(873,253	)
Buffalo Wild Wings, Inc.		(5,840	)		(627,800	)
Cracker Barrel Old Country Store, Inc.		(5,451	)		(847,358	)
Dunkin' Brands Group, Inc.		(12,301	)		(652,322	)
MGM Resorts International		(44,722	)		(1,472,695	)
Norwegian Cruise Line Holdings Ltd.		(15,700	)		(864,599	)
Texas Roadhouse, Inc.		(12,173	)		(575,783	)
					(5,913,810	)
Household durables—(0.24)%
D.R. Horton, Inc.		(19,800	)		(706,662	)
PulteGroup, Inc.		(105,090	)		(2,566,298	)
					(3,272,960	)
Insurance—(0.92)%
Arch Capital Group Ltd.		(6,827	)		(663,994	)
Assurant, Inc.		(23,820	)		(2,507,531	)
Cincinnati Financial Corp.		(22,631	)		(1,723,577	)
FNF Group		(20,150	)		(984,529	)
Loews Corp.		(22,230	)		(1,082,156	)
Markel Corp.		(1,156	)		(1,238,666	)
Mercury General Corp.		(19,441	)		(1,164,321	)
RLI Corp.		(23,336	)		(1,354,888	)
Unum Group		(15,360	)		(769,997	)
XL Group Ltd.		(19,314	)		(857,542	)
					(12,347,201	)
Internet & catalog retail—(0.07)%
Wayfair, Inc., Class A		(12,125	)		(925,744	)
Internet software & services—(0.07)%
Cars.com, Inc.		(5,650	)		(137,295	)
Cimpress NV		(8,904	)		(785,689	)
					(922,984	)

	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
IT services—(0.24)%
Acxiom Corp.		(31,759	)	$	(856,540	)
Conduent, Inc.		(63,130	)		(1,042,276	)
Wipro Ltd., ADR		(209,946	)		(1,291,168	)
					(3,189,984	)
Machinery—(0.53)%
AGCO Corp.		(13,340	)		(962,348	)
CNH Industrial N.V.		(118,684	)		(1,367,240	)
Deere & Co.		(9,141	)		(1,172,607	)
Flowserve Corp.		(54,611	)		(2,246,150	)
The Middleby Corp.		(5,525	)		(722,007	)
Wabtec Corp.		(8,591	)		(647,418	)
					(7,117,770	)
Media—(0.16)%
Twenty-First Century Fox, Inc., Class A		(33,192	)		(965,887	)
Viacom, Inc., Class B		(33,639	)		(1,174,674	)
					(2,140,561	)
Metals & mining—(0.05)%
Nucor Corp.		(11,090	)		(639,560	)
Multi-utilities—(0.05)%
NiSource, Inc.		(25,370	)		(661,142	)
Multiline retail—(0.11)%
Dollar General Corp.		(12,150	)		(913,194	)
Kohl's Corp.		(13,558	)		(560,623	)
					(1,473,817	)
Oil, gas & consumable fuels—(0.67)%
Antero Resources Corp.		(56,208	)		(1,159,009	)
Apache Corp.		(28,090	)		(1,389,893	)
Diamondback Energy, Inc.		(13,810	)		(1,324,103	)
Hess Corp.		(24,009	)		(1,069,361	)
HollyFrontier Corp.		(73,140	)		(2,109,358	)
Kosmos Energy Ltd.		(74,676	)		(492,862	)
Murphy Oil Corp.		(21,311	)		(566,446	)
Whiting Petroleum Corp.		(95,861	)		(503,270	)
WPX Energy, Inc.		(32,020	)		(345,175	)
					(8,959,477	)
Personal products—(0.14)%
Coty, Inc., Class A		(61,882	)		(1,267,343	)
The Estee Lauder Cos., Inc.		(5,994	)		(593,346	)
					(1,860,689	)
Pharmaceuticals—(0.26)%
Bristol-Myers Squibb Co.		(26,715	)		(1,520,083	)
Eli Lilly & Co.		(17,809	)		(1,472,092	)
Endo International PLC		(51,130	)		(563,453	)
					(3,555,628	)
Professional services—(0.07)%
Verisk Analytics, Inc.		(10,289	)		(897,818	)

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Portfolio of investments—July 31, 2017

	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
Real estate management & development—(0.05)%
Realogy Holdings Corp.		(22,020	)	$	(731,064	)
Road & rail—(0.25)%
Heartland Express, Inc.		(45,775	)		(967,226	)
JB Hunt Transport Services, Inc.		(5,673	)		(514,598	)
Old Dominion Freight Line, Inc.		(12,931	)		(1,240,212	)
Ryder System, Inc.		(8,020	)		(583,535	)
					(3,305,571	)
Semiconductors & semiconductor equipment—(0.25)%
Cavium, Inc.		(11,638	)		(720,858	)
Cree, Inc.		(30,510	)		(790,514	)
Cypress Semiconductor Corp.		(126,740	)		(1,799,708	)
					(3,311,080	)
Software—(0.64)%
ACI Worldwide, Inc.		(73,487	)		(1,702,694	)
Blackbaud, Inc.		(12,305	)		(1,136,244	)
FireEye, Inc.		(56,510	)		(826,741	)
Guidewire Software, Inc.		(20,929	)		(1,510,237	)
HubSpot, Inc.		(17,920	)		(1,296,512	)
Proofpoint, Inc.		(15,411	)		(1,313,633	)
Workday, Inc., Class A		(8,573	)		(875,389	)
					(8,661,450	)
Specialty retail—(0.33)%
CarMax, Inc.		(28,683	)		(1,900,249	)
Monro Muffler Brake, Inc.		(10,874	)		(506,728	)

	Number of shares			Value
Investments sold short—(concluded)
Common stocks—(concluded)
Specialty retail—(concluded)
Penske Automotive Group, Inc.		(18,580	)	$	(808,973	)
Tiffany & Co.		(12,190	)		(1,164,267	)
					(4,380,217	)
Technology hardware, storage & peripherals—(0.07)%
Electronics For Imaging, Inc.		(20,062	)		(974,612	)
Textiles, apparel & luxury goods—(0.21)%
Coach, Inc.		(16,094	)		(758,671	)
Columbia Sportswear Co.		(18,764	)		(1,136,723	)
Gildan Activewear, Inc.		(28,693	)		(864,520	)
					(2,759,914	)
Thrifts & mortgage finance—(0.13)%
New York Community Bancorp, Inc.		(134,058	)		(1,760,182	)
Trading companies & distributors—(0.03)%
Herc Holdings, Inc.		(9,190	)		(417,042	)
Transportation infrastructure—(0.06)%
Macquarie Infrastructure Corp.		(11,220	)		(850,588	)
Wireless telecommunication services—(0.05)%
Sprint Corp.		(89,504	)		(714,242	)
Total investments sold short (proceeds—$157,884,924)					(176,977,160	)
Liabilities in excess of other assets—(0.89)%					(11,928,294	)
Net assets—100.00%				$	1,344,026,038

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes before investments sold short was $1,352,961,279; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	214,254,512
Gross unrealized depreciation		(34,284,299	)
Net unrealized appreciation	$	179,970,213

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PACE Large Co Value Equity Investments

Portfolio of investments—July 31, 2017

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments.

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	1,501,557,734		$	—	$	—	$	1,501,557,734
Rights		—			—		9,940		9,940
Repurchase agreement		—			19,986,000		—		19,986,000
Investment of cash collateral from securities loaned		—			11,377,818		—		11,377,818
Total	$	1,501,557,734		$	31,363,818	$	9,940	$	1,532,931,492
Liabilities
Investments sold short	$	(176,977,160	)	$	—	$	—	$	(176,977,160	)

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Level 3 rollforward disclosure

The following is a rollforward of the Portfolio's investments that was valued using unobservable inputs for the year ended July 31, 2017:

	Rights
Beginning balance	$	37,762
Purchases		—
Issuances		—
Sales		(604	)
Accrued discounts/(premiums)		—
Total realized gain/(loss)		—
Net change in unrealized appreciation/depreciation		(27,218	)
Transfers into Level 3		—
Transfers out of Level 3		—
Ending balance	$	9,940

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at July 31, 2017 was $(27,218).

Portfolio footnotes

*  Non-income producing security.

^†  Amount represents less than 0.005%

¹  Security, or portion thereof, was on loan at the period end.

²  Security, or portion thereof, pledged as collateral for investments sold short.

³  Illiquid investment at the period end.

⁴  Security is being fair valued by a valuation committee under the direction of the board of trustees.

See accompanying notes to financial statements.
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PACE Large Co Growth Equity Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 16.74% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Russell 1000 Growth Index (the "benchmark") gained 18.05%, and the Lipper Large-Cap Growth Funds category posted a median return of 17.96%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 159. 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 3.

Subadvisors comments' (Unaudited)²

Jackson Square

Our portion of the Portfolio underperformed its benchmark during the reporting period. Weak results in the consumer discretionary and health care sectors offset strong performance in the information technology and consumer staples sectors.

In terms of individual holdings, the largest detractors from performance were TripAdvisor, Liberty Interactive Corporation QVC Group and Novo Nordisk A/S. Our position in Novo Nordisk A/S was closed prior to the end of the reporting period in favor of better opportunities elsewhere. TripAdvisor was weak due to continued struggles monetizing its hotel offerings and underwhelming reviews of its mobile application. While the company's monetization plans have been slower than investors might have expected or hoped, we still believe the company has an undervalued asset of 400 million travelers interested in reviews, hotels, restaurants and activities that are worth more than recognized at the current depressed valuation.

The top contributors to performance included PayPal, Electronic Arts, and MasterCard. PayPal continues to experience increasing business momentum and significant growth in both total payment volume and active users. The growth of PayPal's Venmo subsidiary continues to be extraordinary, in our view, with $8 billion in transaction volume during the second quarter of 2017, up 103% year-over-year. We believe that PayPal's core payment product will continue to perform well as it further expands its reach into physical merchants via Venmo and infrastructure offerings via its Braintree subsidiary.

Derivatives were not used during the reporting period.

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust – PACE Large Co Growth Equity Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisors:

Jackson Square Partners, LLC ("Jackson Square");

Mar Vista Investment Partners ("Mar Vista");

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

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Fred Lee, CFA, Vincent Russo, Mayoor Joshi and Diana To

Jackson Square: Jeffrey Van Harte, Christopher Bonavico, Daniel Prislin and Christopher Ericksen;

Mar Vista: Brian L. Massey and Silas A. Myers;

J.P. Morgan: Giri Devulapally and Joseph Wilson

Objective:

Capital appreciation

Investment process:

Jackson Square: The Portfolio invests primarily in common stocks of large capitalization growth-oriented companies that the Portfolio believes have long-term capital appreciation potential and are expected to grow faster than the US economy. Using a bottom-up approach, the Portfolio 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

(continued on next page)

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PACE Large Co Growth Equity Investments

Subadvisors' comments (Unaudited) – concluded

Mar Vista Investment Partners

Our portion of the Portfolio underperformed the benchmark during the reporting period. Investments within the information technology, consumer discretionary and energy sectors detracted from results. In terms of individual holdings, weakness from Liberty Global and Schlumberger led the negative returns. During the reporting period, we saw outsized gains in a handful of highflying companies often referred to as the "FAANG" stocks (Facebook, Apple, Amazon, Netflix and Google). When business values reflect the most optimistic scenarios, our portion of the Portfolio will typically underperform. In addition, poor stock selection in the industrials sector detracted from performance. Sectors that contributed to performance during the reporting period included health care, consumer staples and real estate. Within health care and consumer staples, sector positioning was additive for results. Strong gains from top contributor American Tower drove results in the real state sector. As of the end of the reporting period, we continue to hold all of the aforementioned companies.

The extended bull market has reduced our portion of the Portfolio's discount to intrinsic value to 10%, well below the 20–35% historical range. As a result, our investment team continues to expect future returns to be primarily influenced by the compounding growth rates of our companies and less from stock price convergence to intrinsic value. Owning competitively advantaged businesses with long runways of reinvestment opportunities increase the odds of strong risk-adjusted returns, in our opinion. Given the team's emphasis on capital protection and the elevated valuations for the overall market, we remain prudent in allocating our portion of the Portfolio's capital.

Derivatives were not used during the reporting period.

J.P. Morgan

Our portion of the Portfolio outperformed the benchmark during the reporting period. With the exception of the fourth quarter of 2016, this has generally been a positive market environment for growth investing. Strong stock selection across a variety of sectors drove our outperformance, with financial services and health care contributing the most to results. In contrast, stock selection in the producer durables and materials and processing sectors detracted the most from performance.

From an individual stock level, overweight positions in Vertex Pharmaceuticals and Charles Schwab were the largest individual contributors during the reporting period. An underweight position in Apple and an overweight position in Ulta Beauty were the top detractors. We continue to hold positions in all of the securities mentioned above.

We continue to identify high-conviction growth ideas. We still find attractive opportunities within the financial services and technology sectors, and remain overweight in those sectors. Our overweight exposure in the technology sector narrowed during the reporting period. We are challenged to find high-conviction ideas within the producer durables and materials and pro-

Investment process
(continued)

compared to the intrinsic value of the securities. The Portfolio also considers a company's operational efficiencies, management's plans for capital allocation and the company's shareholder orientation.

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

J.P. Morgan: The Portfolio invests primarily in a focused portfolio of equity securities of large capitalization companies. The Portfolio considers large capitalization companies to be companies with market capitalizations equal to those within the universe of the Russell 1000 Growth Index at the time of purchase. Although the Portfolio will invest primarily in equity securities of U.S. companies, it may invest in foreign securities, including depositary receipts. The Portfolio utilizes a

(continued on next page)

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PACE Large Co Growth Equity Investments

cessing sectors, which continue to be significant underweight exposures in our portion of the Portfolio.

Derivatives were not used during the reporting period.

Investment process
(concluded)

combination of qualitative analysis and quantitative metrics in order to seek to achieve target returns which are higher than those of the fund's benchmark while attempting to maintain a moderate risk profile.

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.

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PACE Large Co Growth Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		16.50	%		14.33	%		7.98	%
Class C2		15.55			13.39			7.09
Class Y3		16.73			14.61			8.29
Class P4		16.75			14.61			8.26
After deducting maximum sales charge
Class A1		10.10			13.04			7.37
Class C2		14.55			13.39			7.09
Russell 1000 Growth Index5		18.05			15.60			9.36
Lipper Large-Cap Growth Funds median		17.96			14.72			8.48

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		18.37	%		13.65	%		7.42	%
Class C2		17.41			12.72			6.54
Class Y3		18.67			13.94			7.73
Class P4		18.69			13.94			7.71
After deducting maximum sales charge
Class A1		11.85			12.36			6.81
Class C2		16.41			12.72			6.54

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.19% and  1.19%; Class C—2.00% and 2.00%; Class Y—0.92% and 0.92%; and Class P—0.93% and 0.93% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.30% ; Class C—2.05%; Class Y—1.05%; and Class P—1.05% The Portfolio has agreed to repay UBS 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 AM. Upon termination of the agreement, however, UBS 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 of 0.25% annually.

²  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 of 0.25% and 0.75% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the US equity universe. It includes those Russell 1000 Index 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.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

159

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, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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.

PACE Large Co Growth Equity Investments

160

PACE Large Co Growth Equity Investments

Portfolio statistics—July 31, 2017 (unaudited)

Top ten holdings1	Percentage of net assets
Facebook, Inc., Class A		3.9	%
American Tower Corp.		3.9
Allergan PLC		3.5
PayPal Holdings, Inc.		3.4
Berkshire Hathaway, Inc., Class B		3.1
Alphabet, Inc. Class C		2.9
Oracle Corp.		2.9
Alphabet, Inc. Class A		2.9
MasterCard, Inc., Class A		2.9
Intuit, Inc.		2.7
Total		32.1	%
Top five issuer breakdown by country or territory of origin1	Percentage of net assets
United States		89.0	%
Ireland		3.5
Netherlands		3.1
United Kingdom		2.3
Curacao		1.4
Total		99.3	%
Sectors1	Percentage of net assets
Information Technology		38.8	%
Financials		18.4
Consumer Discretionary		13.2
Health Care		11.3
Industrials		8.4
Consumer Staples		3.9
Energy		1.7
Materials		1.6
Total		97.3	%

¹  The Portfolio is actively managed and its composition will vary over time.

161

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—97.34%
Aerospace & defense—1.06%
TransDigm Group, Inc.1		50,173	$	14,155,810
Air freight & logistics—1.37%
FedEx Corp.		87,933		18,292,702
Airlines—0.27%
Southwest Airlines Co.		65,269		3,623,082
Banks—1.20%
US Bancorp		302,086		15,944,099
Beverages—0.46%
Monster Beverage Corp.*		115,171		6,075,270
Biotechnology—4.54%
Biogen, Inc.*		69,919		20,247,843
Celgene Corp.*		213,477		28,906,921
Vertex Pharmaceuticals, Inc.*		74,381		11,292,523
				60,447,287
Capital markets—4.38%
Intercontinental Exchange, Inc.		462,922		30,881,527
The Charles Schwab Corp.		642,350		27,556,815
				58,438,342
Chemicals—1.61%
Ecolab, Inc.		162,801		21,436,008
Diversified financial services—3.08%
Berkshire Hathaway, Inc., Class B*		234,916		41,103,253
Electrical equipment—0.30%
Rockwell Automation, Inc.		23,862		3,937,946
Energy equipment & services—1.37%
Schlumberger Ltd.		266,229		18,263,310
Equity real estate investment trusts—7.23%
American Tower Corp.		378,265		51,568,867
Crown Castle International Corp.		228,005		22,932,743
Equinix, Inc.		48,572		21,892,858
				96,394,468
Food products—1.20%
Mondelez International, Inc., Class A		362,062		15,937,969
Health care equipment & supplies—1.72%
DENTSPLY SIRONA, Inc.		206,341		12,799,332
Intuitive Surgical, Inc.*		10,862		10,191,380
				22,990,712
Health care providers & services—0.84%
UnitedHealth Group, Inc.		58,256		11,174,083
Hotels, restaurants & leisure—1.75%
Las Vegas Sands Corp.		86,734		5,343,682
Starbucks Corp.		334,021		18,030,453
				23,374,135

	Number of shares		Value
Common stocks—(continued)
Industrial conglomerates—4.30%
Honeywell International, Inc.		231,388	$	31,496,534
Roper Industries, Inc.		110,856		25,769,586
				57,266,120
Insurance—2.55%
Markel Corp.*		31,704		33,971,153
Internet & catalog retail—5.65%
Amazon.com, Inc.*		32,003		31,611,923
Liberty Interactive Corp. QVC Group, Class A*		885,331		21,194,824
The Priceline Group, Inc.*		5,750		11,663,875
TripAdvisor, Inc.*,1		278,639		10,872,494
				75,343,116
Internet software & services—11.24%
Alphabet, Inc. Class A*		40,412		38,209,546
Alphabet, Inc. Class C*		41,510		38,625,055
eBay, Inc.*		596,345		21,307,407
Facebook, Inc., Class A*		305,342		51,679,133
				149,821,141
IT services—8.61%
MasterCard, Inc., Class A		298,783		38,184,467
PayPal Holdings, Inc.*		776,949		45,490,364
Visa, Inc., Class A1		312,051		31,067,798
				114,742,629
Life sciences tools & services—2.66%
Illumina, Inc.*		15,007		2,608,967
Mettler-Toledo International, Inc.*		26,770		15,341,351
Quintiles IMS Holdings, Inc.*		193,994		17,566,157
				35,516,475
Media—1.46%
Liberty Global PLC, Class A*		125,547		4,251,022
Liberty Global PLC, Series C*		465,408		15,251,420
				19,502,442
Multiline retail—0.83%
Dollar General Corp.		146,893		11,040,478
Oil, gas & consumable fuels—0.33%
Pioneer Natural Resources Co.		27,207		4,437,462
Personal products—2.24%
Unilever N.V.1		513,170		29,851,099
Pharmaceuticals—3.48%
Allergan PLC		183,764		46,369,170
Professional services—0.86%
Nielsen Holdings PLC		267,101		11,488,014
Semiconductors & semiconductor equipment—3.27%
Applied Materials, Inc.		166,858		7,393,478
ASML Holding N.V.		74,569		11,209,958
Broadcom Ltd.		37,737		9,308,208
NVIDIA Corp.		96,393		15,664,827
				43,576,471

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Software—15.09%
Adobe Systems, Inc.*		226,365	$	33,160,209
Electronic Arts, Inc.*		216,690		25,296,391
Intuit, Inc.		259,667		35,628,909
Microsoft Corp.		441,615		32,105,410
Oracle Corp.		769,096		38,400,963
ServiceNow, Inc.*		73,251		8,090,573
Symantec Corp.		572,944		17,755,535
Take-Two Interactive Software, Inc.*		134,522		10,691,809
				201,129,799
Specialty retail—1.60%
Ross Stores, Inc.		66,122		3,657,869
The Home Depot, Inc.		61,619		9,218,202
Ulta Salon, Cosmetics & Fragrance, Inc.*		33,866		8,507,478
				21,383,549
Technology hardware, storage & peripherals—0.57%
Apple, Inc.		51,197		7,614,530

	Number of shares		Value
Common stocks—(concluded)
Trading companies & distributors—0.22%
United Rentals, Inc.*		24,199	$	2,878,713
Total common stocks (cost—$938,947,928)				1,297,520,837
	Face amount
Repurchase agreement—2.56%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $33,379,838 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$34,763,644); proceeds: $34,082,047 (cost—$34,082,000)	$	34,082,000		34,082,000
Total investments (cost—$973,029,928)—99.90%				1,331,602,837
Other assets in excess of liabilities—0.10%				1,286,524
Net assets—100.00%			$	1,332,889,361

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes was $975,665,122; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	370,474,182
Gross unrealized depreciation		(14,536,467	)
Net unrealized appreciation	$	355,937,715

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PACE Large Co Growth Equity Investments

Portfolio of investments—July 31, 2017

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	1,297,520,837	$	—	$	—	$	1,297,520,837
Repurchase agreement		—		34,082,000		—		34,082,000
Total	$	1,297,520,837	$	34,082,000	$	—	$	1,331,602,837

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at the period end.

See accompanying notes to financial statements.
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PACE Small/Medium Co Value Equity Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 15.41% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Russell 2500 Value Index (the "benchmark") rose 14.09%, and the Lipper Small-Cap Core Funds category posted a median return of 16.02%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 169. 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 3.

Special note: Effective October 20, 2016, Wells Capital Management (formerly MetWest Capital) no longer serves as a subadvisor for this Portfolio. Effective October 20, 2016, Sapience Investments LLC began serving as a subadvisor for this Portfolio. Effective January 24, 2017, Huber Capital Management began serving as a subadvisor for this Portfolio.

Subadvisors' comments (Unaudited)²

Wells Capital Management (Formerly MetWest Capital)

During the time when we managed a portion of the Portfolio, we outperformed the benchmark. During the period, our sector weights, which are by-products of bottom-up security allocation decisions, were the primary drivers of our outperformance.

Security selection in the energy sector was our largest contributor to performance. In this sector, Encana Corp. added the most value. Encana's stock price rebounded shortly after our initial investment when Chief Executive Officer Doug Suttles quelled investors' fears during the company's quarterly earnings call. Mr. Suttles reiterated to investors that Encana would not issue equity, the company possessed assets that could be monetized and explained that almost all outstanding debt is long dated. Additionally, management initiated cost cuts that generated significant savings, permitting Encana to operate within its cash flows. Over a long-term investment horizon, we believe Encana will benefit from continued focus on its core assets and monetization of non-core assets. Elsewhere, an overweight in the top performing energy sector, as well as underweights in the worst-performing real estate and utilities sectors, further enhanced our results relative to the benchmark.

Conversely, stock selection in the information technology sector detracted the most from our performance. Within the sector, VeriFone Systems, Inc. was among the largest detractors. Shares of VeriFone Systems have been under pressure as demand for new chip-card terminals has been declining,

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

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

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisors:

Wells Capital Management, formerly MetWest Capital ("Wells Capital");

Systematic Financial Management, L.P. ("Systematic");

Kayne Anderson Rudnick, LLC ("Kayne Anderson Rudnick"); Sapience Investments, LLC ("Sapience");
Huber Capital Management LLC ("Huber")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Fred Lee, CFA, Vincent Russo, Mayoor Joshi and Diana To

Wells Capital: Samir Sikka;

Systematic: Ronald M. Mushock and D. Kevin McCreesh;

Kayne Anderson Rudnick: Julie Kutasov and Craig Stone Sapience: Samir Sikka;

Huber Capital: Joseph Huber

Objective:

Capital appreciation

Investment process:

MetWest Capital: The Portfolio utilizes a bottom-up, fundamental, research-driven style that it believes is well suited to the small cap market segment. The Portfolio 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

(continued on next page)

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PACE Small/Medium Co Value Equity Investments

Subadvisors' comments (Unaudited) – continued

prompting the company to revise its revenue forecasts. Additionally, VeriFone Systems has faced increasing competitive pressure, with rivals taking market share by offering lower prices and more mobile options. The company is in the process of restructuring to streamline its operations and reduce costs, as well as to focus on new next-generation products and services in order to meet its customers' changing needs.

Derivatives were not used during the reporting period.

Systematic

Our portion of the Portfolio outperformed the benchmark during the reporting period, driven by strong stock selection. In particular, our holdings in the materials, financials and consumer staples sectors added the most value. Conversely, stock selection in the health care, information technology and consumer discretionary sectors provided the largest headwinds for results. In terms of sector allocation, an underweight to real estate was beneficial for relative performance. On the downside, an overweight to the energy sector had a negative impact on results.

A strong performing stock in our portion of the Portfolio was Voya Financial, a retirement, investment and life insurance company. During the latter half of 2016 the stock posted a strong earnings report and provided a constructive outlook, supported by plans to achieve additional cost savings. Voya Financial also reaffirmed its longer-term return on equity goal, providing investors with a clear path to reaching its future profitability targets. The increase in interest rates was a key driver behind the late 2016 share price appreciation throughout the life insurance sector, and Voya Financial's stock was no exception. At the conclusion of 2016 we believed there were several company-specific drivers that should continue to support further earnings expansion. Later in the period, in April 2017, we liquidated our position in Voya Financial based upon valuation and forward outlook.

One stock that underperformed during the period was Precision Drilling, an onshore energy services firm. The company and its peers lagged the broader markets during the second quarter of 2017 as oil prices fell due to increased concerns about a continued supply/demand imbalance for crude oil. In spite of this negative macro backdrop, Precision Drilling continued to execute well operationally while further improving its balance sheet flexibility. We believe the decline in the company's stock price is overdone, having underperformed other land-based drillers both during the second quarter and on a year-to-date basis. The stock now trades below replacement value despite having a much better than average rig fleet. In what we believe will be the eventual capital spending and rig count upturn that should accompany higher oil prices, the company's shares should be poised to outperform due to a combination of both positive earnings revisions and valuation-multiple expansion. At this time, we continue to hold the position in our portion of the Portfolio. As of the end of the reporting period, we continue to hold Precision Drilling.

Derivatives were not used during the reporting period.

Investment process
(continued)

portfolio of its highest conviction ideas.

Systematic: The Portfolio employs a two-pronged investment approach that utilizes both quantitative screening and fundamental research. The Portfolio'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.

The Portfolio 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.

Kayne Anderson Rudnick: The Portfolio employs a fundamental, bottom-up, research-driven investment style and utilizes a disciplined investment process to identify high-quality companies that possess solid investment-grade balance sheets, generate positive cash flow and whose securities can be acquired at attractive valuations. The Portfolio's first-hand fundamental research process involves carefully evaluating a company from a three-tiered perspective involving qualitative, financial and valuation analyses.

Sapience: The Portfolio's process is driven by fundamen-

(continued on next page)

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PACE Small/Medium Co Value Equity Investments

Subadvisors' comments (Unaudited) – continued

Kayne Anderson Rudnick

Our portion of the Portfolio outperformed the benchmark during the reporting period. The sectors contributing the most to performance were materials, technology and financial services. The bottom three performing sectors were energy, health care and consumer staples.

In terms of individual stocks, the top contributors were Graco, a manufacturer of fluid-handling systems, and Skyworks Solutions, a semiconductor manufacturer. Shares of Graco performed strongly following the company's reports of solid revenue growth (driven by double-digit growth in the contractor segment) and profitability expansion. Skyworks Solutions has seen a strong rebound in both its results and stock price as a result of improved execution in its core cellphone markets. The company has made inroads with large Chinese customers to better diversify its revenue base, but still faces customer concentration with its largest customer, Apple. Growth in "Internet of Things" applications will need to accelerate to offset the content growth Skyworks sees in its flagship customers. As of the end of the reporting period, we continue to hold Graco and Skyworks Solutions.

The largest detractors from results were Syntel, an information technology consulting firm, and Dril-Quip, an offshore oilfield services provider. Syntel reported weak results, with sluggish end-market demand. Management commented that decision cycles continue to lengthen due to persistent contract delays. Customer concentration has been an ongoing issue for the company and is a concern from the standpoint of long-term prospects and profitability. We closed our position in Syntel prior to the end of the reporting period. Dril-Quip's shares lagged, driven by continuous weakness in deep water drilling activity due to depressed crude oil prices. Our view of the company's long-term market positioning remains intact, however. We continue to believe that Dril-Quip is better protected both as a "best of breed" mission-critical equipment supplier and a low-cost manufacturer. As of the end of the reporting period, we continue to hold Dril-Quip.

Derivatives were not used during the reporting period.

Sapience

Our portion of the Portfolio underperformed the benchmark during the reporting period. Compared with the Index, stock selection in the consumer discretionary and energy sectors detracted from returns. An overweight in the worst performing energy sector further hindered performance. In consumer discretionary, Ascena Retail Group, Inc. was the largest detractor. Its shares declined in commiseration with overall weakness in the retail sector. Ascena Retail Group's stock price experienced further pressure when its management team announced an earnings shortfall and lowered its annual guidance. The company's seasoned management team has taken steps to counteract the weakness in sales and is exploring opportunities to utilize its centralized, cost-effective operational platform for third-party fulfillment. Within energy, Forum Energy Technologies, Inc. subtracted the most value from returns. In general, oil service companies, like Forum Energy Technologies, have not performed as well as exploration & production companies. Forum Energy Technologies, however, has a strong balance sheet, primarily operates in segments with two or three players, has a low capital expenditure and high free cash flow business model and is a well-managed company. At current levels, Forum

Investment process
(concluded)

tal, bottom-up research and utilizes a long-term focus that takes advantage of opportunities presented by short-term anomalies. The Portfolio views companies through the eyes of an "owner" and seeks to identify companies with sustainable business models, trading at a discount to its estimate of intrinsic value, and that possess value drivers to narrow the valuation gap over its investment horizon.

Huber: The Portfolio employs an in-depth, internal, 100% bottom-up investment process rooted in fundamental research and behavioral psychology, analyzing companies' financials to determine normalized earnings. A company's initial review seeks to differentiate value traps from value opportunities while the detailed review entails rigorous fundamental analysis at both the aggregate and segment levels. Security weights are determined by our assessment of the risk/reward profile relative to other investment opportunities. The Portfolio seek diversification while maintaining neutrality to macro-economic factors.

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PACE Small/Medium Co Value Equity Investments

Subadvisors' comments (Unaudited) – concluded

Energy Technologies remains an attractive investment opportunity and we continue to hold the stock as of the end of the reporting period.

On the positive side, stock selection in the financials sector added the most value and Zions Bancorporation was among the top contributors. While the overall banking industry performed well during the period, Zions Bancorporation's stock price also rose as the company has been deploying excess cash into securities, which has benefited their return on assets. Additionally, their expense control and profitability improvement program has begun bearing fruit.

Derivatives were not used during the reporting period.

Huber Capital Management

During the time we managed a portion of the Portfolio, we underperformed the benchmark. At the sector level, the largest detractors from performance were consumer discretionary, producer durables and materials & processing. In contrast, the largest contributors to results were energy and financial services.

In terms of individual holdings, two consumer discretionary companies, Aimia and Iconix Brands, detracted from performance. We exited our position in Aimia during the second quarter of 2017 due to a change in its fundamentals. Within producer durables, KBR and Teekay Tankers were the principle detractors from results. Lastly, Innospec was the most notable detractor in the materials and processing sector. With the exception of Aimia, we continue to hold the aforementioned companies as of the end of the reporting period.

Within energy, our holdings in Ensco and Flotek underperformed, primarily due to a weak commodity pricing environment. We closed our position in Flotek prior to the end of the reporting period. However, this was more than offset by the positive relative impact from our underweight exposure to the sector. Within the financial services sector, Granite Real Estate Investment and CNO Financial Group were the largest contributors to performance. With the exception of Flotek, we continue to hold the aforementioned companies as of the end of the reporting period.

Derivatives were not used during the reporting period.

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.

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PACE Small/Medium Co Value Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		15.25	%		13.72	%		6.46	%
Class C2		14.35			12.86			5.65
Class Y3		15.35			13.87			6.69
Class P4		15.41			13.88			6.62
After deducting maximum sales charge
Class A1		8.90			12.44			5.86
Class C2		13.35			12.86			5.65
Russell 2500 Value Index5		14.09			13.96			7.43
Lipper Small-Cap Core Funds median		16.02			13.58			7.08

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		19.15	%		13.53	%		5.71	%
Class C2		18.24			12.68			4.91
Class Y3		19.31			13.67			5.94
Class P4		19.34			13.69			5.87
After deducting maximum sales charge
Class A1		12.59			12.26			5.11
Class C2		17.24			12.68			4.91

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.24% and 1.24%; Class C—2.01% and 2.01%; Class Y—1.07% and 1.07%; and Class P—1.11% and 1.11% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.41%; Class C—2.16%; Class Y—1.16%; and Class P—1.16% The Portfolio has agreed to repay UBS 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 AM. Upon termination of the agreement, however, UBS 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 of 0.25% annually

²  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 of 0.25% and 0.75% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The Russell 2500 Value Index measures the performance of the small to mid-cap value segment of the US equity universe. It includes those Russell 2500 Index 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.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

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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, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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.

PACE Small/Medium Co Value Equity Investments

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PACE Small/Medium Co Value Equity Investments

Portfolio statistics—July 31, 2017 (unaudited)

Top ten holdings1	Percentage of net assets
RBC Bearings, Inc.		1.5	%
The Scotts Miracle-Gro Co., Class A		1.4
Signet Jewelers Ltd.		1.4
Snap-on, Inc.		1.4
Lamar Advertising Co., Class A		1.4
TransUnion		1.3
Envision Healthcare Corp.		1.3
CDW Corp.		1.3
HFF, Inc., Class A		1.3
The Michaels Cos. Inc.		1.3
Total		13.6	%
Top five issuer breakdown by country or territory of origin1	Percentage of net assets
United States		89.9	%
Bermuda		5.3
Canada		1.6
Netherlands		0.9
Puerto Rico		0.8
Total		98.5	%
Sectors1	Percentage of net assets
Financials		26.9	%
Industrials		19.7
Consumer Discretionary		12.7
Information		12.5
Energy		6.8
Health Care		6.1
Materials		5.0
Consumer Staples		3.3
Utilities		1.4
Total		94.4	%

¹  The Portfolio is actively managed and its composition will vary over time.

171

PACE Small/Medium Co Value Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—94.33%
Aerospace & defense—0.12%
Arconic, Inc.		18,900	$	468,531
Wesco Aircraft Holdings, Inc.*		13,800		149,730
				618,261
Air freight & logistics—1.44%
Atlas Air Worldwide Holdings, Inc.*		19,975		1,186,515
Expeditors International of Washington, Inc.		108,600		6,394,368
				7,580,883
Airlines—0.30%
JetBlue Airways Corp.*		71,240		1,562,293
Auto components—0.17%
Visteon Corp.*		8,220		916,859
Automobiles—0.74%
Thor Industries, Inc.		37,150		3,913,752
Banks—9.30%
Atlantic Capital Bancshares, Inc.*		7,800		150,540
Bank of Hawaii Corp.1		64,200		5,371,614
Bank of the Ozarks, Inc.		49,475		2,134,846
Cathay General Bancorp		57,300		2,145,885
Citizens Financial Group, Inc.		72,195		2,532,601
First Citizens BancShares Inc., Class A		2,100		772,842
First Hawaiian, Inc.		143,400		4,230,300
First Horizon National Corp.		74,600		1,300,278
FNB Corp.		152,785		2,093,154
IBERIABANK Corp.		26,355		2,130,802
KeyCorp		106,995		1,930,190
Regions Financial Corp.		19,400		283,240
Sterling Bancorp1		234,500		5,416,950
SunTrust Banks, Inc.		9,900		567,171	��
Texas Capital Bancshares, Inc.*		52,200		4,089,870
The Bank of NT Butterfield & Son Ltd.		97,880		3,336,729
UMB Financial Corp.		35,251		2,455,585
United Community Banks, Inc.		64,915		1,802,040
Wintrust Financial Corp.		43,040		3,241,342
Zions Bancorporation		63,790		2,890,963
				48,876,942
Building products—0.51%
Continental Building Products, Inc.*		122,138		2,687,036
Capital markets—4.12%
Artisan Partners Asset Management, Inc., Class A		106,900		3,554,425
E*TRADE Financial Corp.*		42,435		1,739,835
HFF, Inc., Class A		183,650		6,743,628
Lazard Ltd., Class A		48,845		2,281,550
MSCI, Inc.,		44,750		4,875,512
OM Asset Management PLC		31,700		477,719
Uranium Participation Corp.*		113,700		348,373
Uranium Participation Corp.*		23,300		71,065
Virtus Investment Partners, Inc.		13,200		1,554,960
				21,647,067

	Number of shares		Value
Common stocks—(continued)
Chemicals—2.92%
Axalta Coating Systems Ltd.*		123,300	$	3,883,950
Huntsman Corp.		92,465		2,461,418
Innospec, Inc.		23,792		1,484,621
The Scotts Miracle-Gro Co., Class A1		78,540		7,539,055
				15,369,044
Commercial services & supplies—1.78%
ABM Industries, Inc.		22,565		1,006,851
ACCO Brands Corp.*		60,985		710,475
KAR Auction Services, Inc.		84,700		3,560,788
Ritchie Bros Auctioneers, Inc.1		93,300		2,633,859
Steelcase, Inc., Class A		105,100		1,434,615
				9,346,588
Communications equipment—0.42%
ARRIS International PLC*		19,800		553,608
Comtech Telecommunications Corp.		92,477		1,664,586
				2,218,194
Construction & engineering—0.79%
KBR, Inc.		278,340		4,152,833
Consumer finance—0.31%
Ally Financial, Inc.		12,500		283,000
Enova International, Inc.*		32,887		476,862
EZCORP, Inc., Class A*		75,200		586,560
Nelnet, Inc., Class A		5,600		274,904
				1,621,326
Containers & packaging—1.31%
Avery Dennison Corp.		21,095		1,960,358
Greif, Inc., Class A		21,040		1,180,134
Silgan Holdings, Inc.		80,140		2,428,242
WestRock Co.		22,885		1,314,057
				6,882,791
Diversified financial services—0.06%
Voya Financial, Inc.		8,400		329,616
Electric utilities—0.24%
Entergy Corp.		7,400		567,728
Great Plains Energy, Inc.		13,699		422,751
Portland General Electric Co.		5,900		263,671
				1,254,150
Electronic equipment, instruments & components—2.90%
Belden, Inc.		35,110		2,525,813
CDW Corp.		107,200		6,799,696
Celestica, Inc.*		44,520		529,343
Orbotech Ltd.*		22,615		801,928
TTM Technologies, Inc.*		103,040		1,790,835
VeriFone Systems, Inc.*		113,073		2,206,054
Vishay Intertechnology, Inc.		31,570		563,525
				15,217,194

172

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Energy equipment & services—2.95%
Core Laboratories N.V.1		47,770	$	4,802,318
Dril-Quip, Inc.*,1		85,500		3,813,300
Ensco PLC, Class A		55,700		294,653
Forum Energy Technologies, Inc.*,1		319,380		4,231,785
Precision Drilling Corp.*		629,775		1,838,943
US Silica Holdings, Inc.		18,430		536,866
				15,517,865
Equity real estate investment trusts—4.89%
CatchMark Timber Trust, Inc., Class A		24,337		280,119
CoreCivic, Inc.		72,250		2,001,325
DuPont Fabros Technology, Inc.		10,860		676,904
Education Realty Trust, Inc.1		75,600		2,838,780
EPR Properties		38,340		2,775,049
Gaming and Leisure Properties, Inc.		13,840		525,090
Government Properties Income Trust		44,100		781,893
Granite Real Estate Investment Trust		26,500		1,066,360
Host Hotels & Resorts, Inc.		96,885		1,807,874
Medical Properties Trust, Inc.		131,730		1,709,855
Outfront Media, Inc.		183,430		4,195,044
Piedmont Office Realty Trust, Inc., Class A		76,063		1,598,084
Redwood Trust, Inc.		186,650		3,223,445
SL Green Realty Corp.		21,385		2,208,429
				25,688,251
Food & staples retailing—0.27%
US Foods Holding Corp.*		50,970		1,434,806
Food products—2.85%
Conagra Brands, Inc.		6,700		229,408
Hain Celestial Group, Inc.*,1		42,450		1,897,939
Lamb Weston Holdings, Inc.		6,600		290,268
Nomad Foods Ltd.*		42,710		608,618
Pinnacle Foods, Inc.		48,865		2,901,604
Post Holdings, Inc.*		43,400		3,610,880
TreeHouse Foods, Inc.*,1		60,650		5,144,939
Tyson Foods, Inc., Class A		4,500		285,120
				14,968,776
Health care equipment & supplies—2.05%
Anika Therapeutics, Inc.*		116,600		5,965,256
CONMED Corp.		6,400		328,448
Integer Holdings Corp.*		50,204		2,299,343
STERIS PLC		26,450		2,164,933
				10,757,980
Health care providers & services—3.19%
Amedisys, Inc.*		30,200		1,430,272
Envision Healthcare Corp.*		122,025		6,885,871
HealthSouth Corp.		33,875		1,441,720
Patterson Cos., Inc.1		126,300		5,269,236
Tenet Healthcare Corp.*		15,500		268,925
Tivity Health, Inc.*		22,885		907,390
VCA, Inc.*		6,200		573,996
				16,777,410

	Number of shares		Value
Common stocks—(continued)
Hotels, restaurants & leisure—1.53%
Aramark		33,455	$	1,333,516
SeaWorld Entertainment, Inc.1		102,850		1,581,833
The Cheesecake Factory, Inc.1		107,850		5,131,503
				8,046,852
Household durables—2.08%
Lennar Corp., Class B		8,285		368,434
Newell Brands, Inc.		20,840		1,098,685
Toll Brothers, Inc.		70,290		2,712,491
Tupperware Brands Corp.		15,400		934,934
Whirlpool Corp.		32,620		5,802,445
				10,916,989
Household products—0.49%
WD-40 Co.1		24,100		2,570,265
Insurance—4.63%
Argo Group International Holdings Ltd.		52,200		3,129,390
Aspen Insurance Holdings Ltd.		70,950		3,462,360
Athene Holding Ltd., Class A*		39,730		2,007,557
CNO Financial Group, Inc.		50,237		1,149,422
Crawford & Co., Class B		65,620		589,268
First American Financial Corp.		64,100		3,103,081
Third Point Reinsurance Ltd.*		94,810		1,379,485
Unum Group		61,845		3,100,290
W.R. Berkley Corp.1		78,100		5,386,557
XL Group Ltd.		23,355		1,036,962
				24,344,372
Internet software & services—0.35%
Cars.com, Inc.*,1		75,500		1,834,650
IT services—4.65%
Broadridge Financial Solutions, Inc.		86,000		6,523,960
Cass Information Systems, Inc.		97,450		6,427,802
EVERTEC, Inc.		243,350		4,343,797
Jack Henry & Associates, Inc.		50,200		5,387,464
Leidos Holdings, Inc.		26,375		1,409,480
Science Applications International Corp.		5,100		359,091
				24,451,594
Life sciences tools & services—0.83%
Bio-Rad Laboratories, Inc., Class A*		8,445		1,989,896
ICON PLC*		10,135		1,063,668
PerkinElmer, Inc.		19,705		1,297,180
				4,350,744
Machinery—7.24%
Actuant Corp., Class A1		95,450		2,309,890
AGCO Corp.		12,105		873,255
Altra Industrial Motion Corp.		42,750		1,904,512
Donaldson Co., Inc.		93,800		4,454,562
EnPro Industries, Inc.1		38,100		2,934,462
Graco, Inc.		47,600		5,523,504
Harsco Corp.*		36,190		559,136
Oshkosh Corp.		7,895		543,650
RBC Bearings, Inc.*		75,600		7,812,504

173

PACE Small/Medium Co Value Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Machinery—(concluded)
Snap-on, Inc.		46,800	$	7,216,560
Terex Corp.		99,060		3,899,992
				38,032,027
Marine—0.38%
Kirby Corp.*,1		33,100		2,015,790
Media—1.59%
Cinemark Holdings, Inc., Class A		153,900		5,986,710
Lions Gate Entertainment Corp., Class B*		66,715		1,835,329
Meredith Corp.		8,915		529,997
				8,352,036
Metals & mining—0.96%
Alcoa Corp.		82,560		3,005,184
Carpenter Technology Corp.		7,100		287,053
Commercial Metals Co.		48,445		901,077
Kaiser Aluminum Corp.		5,200		505,908
TimkenSteel Corp.*		21,330		338,934
				5,038,156
Multi-utilities—1.14%
Ameren Corp.		48,590		2,725,899
Black Hills Corp.		7,860		547,528
NorthWestern Corp.		47,050		2,719,019
				5,992,446
Oil, gas & consumable fuels—3.93%
Andeavor		5,830		580,260
Arch Coal, Inc., Class A		27,770		2,112,464
Energen Corp.*		46,515		2,478,319
Golar LNG Ltd.		4,800		114,288
Golar LNG Partners LP		52,600		1,184,026
Oasis Petroleum, Inc.*		305,100		2,373,678
RSP Permian, Inc.*		133,560		4,589,122
SM Energy Co.		74,195		1,290,251
Teekay Tankers Ltd., Class A		328,300		590,940
WPX Energy, Inc.*		493,195		5,316,642
				20,629,990
Paper & forest products—0.08%
KapStone Paper and Packaging Corp.		12,900		294,894
Mercer International, Inc.		12,825		141,075
				435,969
Personal products—0.16%
Herbalife Ltd.*		12,700		844,677
Professional services—3.24%
Equifax, Inc.		39,200		5,701,248
Korn/Ferry International		55,360		1,851,792
ManpowerGroup, Inc.		2,705		289,841
Resources Connection, Inc.		162,870		2,174,314
TransUnion*		153,500		7,034,905
				17,052,100

	Number of shares		Value
Common stocks—(continued)
Real estate investment trusts—2.03%
Brandywine Realty Trust		72,910	$	1,225,617
Lamar Advertising Co., Class A		100,200		7,071,114
Liberty Property Trust		56,630		2,379,593
				10,676,324
Real estate management & development—0.27%
CBRE Group, Inc., Class A*		37,815		1,436,592
Road & rail—2.01%
Genesee & Wyoming, Inc., Class A*		42,550		2,772,558
Knight Transportation, Inc.1		67,800		2,417,070
Landstar System, Inc.		64,800		5,388,120
				10,577,748
Semiconductors & semiconductor equipment—2.43%
Advanced Energy Industries, Inc.*		14,660		1,063,583
Lam Research Corp.		7,085		1,129,774
Microsemi Corp.*		58,285		3,035,483
Skyworks Solutions, Inc.		52,000		5,453,240
Teradyne, Inc.		60,315		2,086,296
				12,768,376
Software—1.37%
American Software, Inc., Class A		408,580		3,963,226
Barracuda Networks, Inc.*		92,880		2,087,014
CA, Inc.		36,200		1,123,648
				7,173,888
Specialty retail—5.04%
Ascena Retail Group, Inc.*,1		1,558,150		3,646,071
Burlington Stores, Inc.*		6,965		606,164
Express, Inc.*		230,950		1,399,557
Party City Holdco, Inc.*		143,850		2,006,707
Sally Beauty Holdings, Inc.*,1		161,800		3,273,214
Signet Jewelers Ltd.1		120,650		7,378,954
The Children's Place, Inc.		13,490		1,425,219
The Michaels Cos. Inc.*		334,531		6,737,454
				26,473,340
Technology hardware, storage & peripherals—0.87%
Diebold Nixdorf, Inc.1		140,140		3,279,276
NetApp, Inc.	��	30,070		1,305,639
				4,584,915
Textiles, apparel & luxury goods—1.06%
Iconix Brand Group, Inc.*		115,900		773,053
PVH Corp.		28,952		3,453,684
Wolverine World Wide, Inc.		48,035		1,354,587
				5,581,324
Thrifts & mortgage finance—1.34%
BankUnited, Inc.		73,600		2,533,312
Washington Federal, Inc.		134,399		4,495,647
				7,028,959

174

PACE Small/Medium Co Value Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(concluded)
Trading companies & distributors—1.00%
Air Lease Corp.		74,850	$	2,962,563
GATX Corp.		16,750		1,035,652
H&E Equipment Services, Inc.		56,135		1,266,967
				5,265,182
Total common stocks (cost—$451,123,042)				495,815,222
	Face amount
Repurchase agreement—5.20%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $26,762,046 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$27,871,503); proceeds: $27,325,038 (cost—$27,325,000)	$	27,325,000		27,325,000

	Number of shares		Value
Investment of cash collateral from securities loaned—2.68%
Money market fund—2.68%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$14,098,351)		14,098,351	$	14,098,351
Total investments (cost—$492,546,393)—102.21%				537,238,573
Liabilities in excess of other assets—(2.21)%				(11,611,384	)
Net assets—100.00%			$	525,627,189

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes was $496,811,371; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	61,115,028
Gross unrealized depreciation		(20,687,826	)
Net unrealized appreciation	$	40,427,202

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments.

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	495,815,222	$	—	$	—	$	495,815,222
Repurchase agreement		—		27,325,000		—		27,325,000
Investment of cash collateral from securities loaned		—		14,098,351		—		14,098,351
Total	$	495,815,222	$	41,423,351	$	—	$	537,238,573

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at the period end.

See accompanying notes to financial statements.
175

PACE Small/Medium Co Growth Equity Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 17.16% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Russell 2500 Growth Index (the "benchmark") returned 16.15%, and the Lipper Small-Cap Growth Funds category posted a median return of 17.09%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 179. 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 3.

Subadvisors' comments (Unaudited)²

Riverbridge Partners

Our portion of the Portfolio outperformed the benchmark during the reporting period. The fact that we exceeded the benchmark during such a strong period in the marketplace is notable considering our typical performance patterns. In our view, because our investment team consistently invests in high quality, well-managed companies that demonstrate the ability to increase their earnings power regardless of economic conditions, our portion of the Portfolio has historically performed best on a relative basis in more challenging market and economic environments. However, the fundamental strength of our companies enabled us to overcome this pattern.

Our top-performing sector for the reporting period was information technology. One holding, National Instruments, a provider of modular electronic test and measurement equipment for product design and manufacturing test markets, was a notable performer that we believe exemplifies our investment philosophy. Management consistently focuses on long-term results and maintains a strong balance sheet. Against this backdrop, the company has exhibited predictable growth patterns through recurring revenue from a loyal customer base. As of the end of the reporting period, we continue to hold National Instruments.

Our health care holdings detracted from performance. Shares of Inovalon Holdings, a leading provider of data analytics for the health care industry, declined during the reporting period. This decline was driven by the cancellation of a large contract that was expected to generate significant revenue for Inovalon Holdings, and for which significant expenses had already been incurred. Despite this short-term headwind, we believe Inovalon Holdings remains well positioned relative to the long-term shift to value-based health care. As of the end of the reporting period, we continue to hold Inovalon Holdings.

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

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

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisors:

Riverbridge Partners, LLC ("Riverbridge"); LMCG Investments, LLC, formerly Lee Munder Capital Group ("LMCG"); Timpani Capital Management LLC ("Timpani")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Fred Lee, CFA, Vincent Russo, Mayoor Joshi and Diana To

Riverbridge: Mark Thompson;

LMCG: Andrew Morey;

Timpani: Brandon Nelson

Objective:

Capital appreciation

Investment process:

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

LMCG: The Portfolio seeks to achieve competitive returns in small/medium capitalization companies by identifying unrecognized growth potential, wherever it exists across all

(continued on next page)

176

PACE Small/Medium Co Growth Equity Investments

Subadvisors' comments (Unaudited) – continued

Overall, many of the companies in our portion of the Portfolio had a strong period fundamentally. Like the broader markets, they too generated robust earnings gains. More importantly, they strengthened their relative market position while increasing their earnings power. We continue to focus on identifying well-managed companies possessing enduring competitive strengths that should persist over economic and market cycles.

Derivatives were not used during the reporting period.

LMCG Investments, LLC

Our portion of the Portfolio underperformed the benchmark during the reporting period. As in prior periods, stock selection was the primary driver of our results. Weakness in some key holdings in health care and some segments of industrials detracted from performance during the reporting period. On the positive side, stock selection was strong in the consumer discretionary and consumer staples sectors.

The run-up to the US presidential election, the days following the election and the subsequent regulatory overhang weighed on our health care holdings and muted the positive attribution we saw in other areas of our portion of the Portfolio. Companies in the health care services segment struggled due to concerns about the impact of a proposed repeal of the Affordable Care Act. In particular, Tenet Healthcare and Envision Healthcare underperformed during the reporting period. Our holdings in biotech, where we are historically often underweight, also lagged the benchmark. In industrials, supply chain management company Echo Global Logistics and electrical equipment manufacturer Acuity Brands weighed on performance. Our underweight to the sector also hurt returns, although that underweight has decreased as we have found more opportunity in the space in recent months. Tenet Healthcare and Envision Healthcare were sold prior to the end of the reporting period due to underperformance. Echo Global Logistics and Acuity brands were sold in favor of better opportunities elsewhere.

Nexstar Broadcasting, in the consumer discretionary sector, was our largest holding at the end of the reporting period. Its shares rose sharply after continuing to post solid quarterly results and it was the largest individual contributor to performance. Stock selection within consumer staples, including beverage manufacturer National Beverage (maker of LaCroix sparkling water) and RiteAid also contributed meaningfully to results. Our underweight to the sector was also beneficial.

The market's renewed focus over the last six to eight months on company fundamentals rather than macro events and/or stylistic factors is expected to be supportive to our investment returns going forward. These opportunities, combined with our ability to identify companies offering underappreciated, unrecognized growth potential, leave us optimistic going forward. National Beverage and RiteAid were sold prior to the end of the reporting period.

Derivatives were not used during the reporting period.

Timpani Capital Management

Our portion of the Portfolio outperformed the benchmark during the reporting period. Looking at the 12-month period, it was a tale of two halves. The first half (August 2016 through January 2017) was dominated by more economically sensitive value stocks, while the second half (February through July 2017) saw secular growth stocks

Investment process
(concluded)

industry sectors. Revenue growth, margin expansion, and the ability to positively surprise and revise earnings estimates are key characteristics the Portfolio seeks in its holdings.

Timpani: The Portfolio seeks to invest in small cap companies where growth is robust, sustainable and underestimated by the market. The Portfolio uses fundamental research, focusing on companies that it believes have superior management and whose business models have a high potential for earnings upside. The Portfolio forms an investment decision based on this reasearch and an assessment of the market's perception of these companies.

177

PACE Small/Medium Co Growth Equity Investments

Subadvisors' comments (Unaudited) – concluded

shine. Not surprisingly, we struggled during the first half of the reporting period, but outperformed in the second half when our style purity to growth investing was rewarded.

For the reporting period as a whole, stock selection drove our outperformance, while sector allocation was a modest detractor from results. In terms of stock selection, technology and consumer discretionary were the strongest performers, whereas materials & processing generated the weakest results. Health care company Heska and technology company Coherent were our two best performers. Health care company Ligand Pharmaceuticals and producer durables company Dycom Industries were our worst two performers. From a sector perspective, an underweight position in energy detracted the most from results, while an overweight in technology was additive for performance. As of the end of the reporting period, we continue to hold the aforementioned companies.

We remain positive on the overall stock market and our positioning. Equity prices continue to grind higher, but the drivers have changed. For the first several years of this bull-run, domestic and global monetary policy was the primary driver. Now, as monetary policy gradually normalizes, it is an earnings-driven rally that we believe has the power to sustain gains for several more quarters, especially if we see domestic tax reform and/or fiscal stimulus. Valuation is a common concern. Admittedly, valuation multiples are above average, but we believe they should be. We also believe they have the potential to further rise given the favorable macro backdrop, which includes low interest rates, low inflation and minimal near-term risk of recession.

Derivatives were not used during the reporting period.

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.

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Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		17.09	%		11.79	%		6.90	%
Class C2		16.24			10.94			6.08
Class Y3		17.16			11.89			7.09
Class P4		17.16			11.90			7.06
After deducting maximum sales charge
Class A1		10.68			10.52			6.29
Class C2		15.24			10.94			6.08
Russell 2500 Growth Index5		16.15			14.87			8.79
Lipper Small-Cap Growth Funds median		17.11			13.15			7.82

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		22.22	%		11.32	%		6.53	%
Class C2		21.28			10.47			5.72
Class Y3		22.27			11.43			6.72
Class P4		22.33			11.45			6.70
After deducting maximum sales charge
Class A1		15.47			10.07			5.93
Class C2		20.28			10.47			5.72

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.25% and 1.25%; Class C—2.02% and 2.02%; Class Y—1.09% and 1.09%; and Class P—1.13% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.38%; Class C—2.13%; Class Y—1.13%; and Class P—1.13% The Portfolio has agreed to repay UBS 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 AM. Upon termination of the agreement, however, UBS 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 of 0.25% annually.

²  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 of 0.25% and 0.75% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The Russell 2500 Growth Index measures the performance of the small to mid-cap growth segment of the US equity universe. It includes those Russell 2500 Index 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.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

179

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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, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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.

PACE Small/Medium Co Growth Equity Investments

180

PACE Small/Medium Co Growth Equity Investments

Portfolio statistics—July 31, 2017 (unaudited)

Top ten holdings1	Percentage of net assets
Nexstar Media Group, Inc., Class A		2.2	%
Grand Canyon Education, Inc.		1.9
National Instruments Corp.		1.9
WageWorks, Inc.		1.8
Ultimate Software Group, Inc.		1.7
Beacon Roofing Supply, Inc.		1.6
Pegasystems, Inc.		1.6
Proto Labs, Inc.		1.5
Healthcare Services Group, Inc.		1.5
Chemed Corp.		1.3
Total		17.0	%
Top five issuer breakdown by country or territory of origin1	Percentage of net assets
United States		96.8	%
Canada		1.5
Israel		0.7
Luxembourg		0.7
Netherlands		0.2
Total		99.9	%
Sectors1	Percentage of net assets
Information Technology		30.9	%
Industrials		19.8
Health Care		19.3
Consumer Discretionary		14.2
Financials		5.9
Consumer Staples		3.0
Materials		2.8
Telecommunication Services		2.1
Energy		1.1
Total		99.1	%

¹  The Portfolio is actively managed and its composition will vary over time.

181

PACE Small/Medium Co Growth Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—99.17%
Aerospace & defense—1.27%
HEICO Corp.		76,102	$	6,116,318
Mercury Systems, Inc.*		3,868		169,844
				6,286,162
Air freight & logistics—0.17%
Air Transport Services Group, Inc.*		19,571		476,750
Atlas Air Worldwide Holdings, Inc.*		5,956		353,786
				830,536
Auto components—2.43%
Dorman Products, Inc.*		48,907		3,818,659
Fox Factory Holding Corp.*		10,299		395,997
Gentex Corp.		244,604		4,163,160
Tenneco, Inc.1		58,591		3,240,082
Visteon Corp.*		3,643		406,340
				12,024,238
Banks—2.53%
Pinnacle Financial Partners, Inc.1		82,264		5,256,670
SVB Financial Group*		12,662		2,259,407
Western Alliance Bancorp*		99,597		5,017,697
				12,533,774
Beverages—0.09%
New Age Beverages Corp.*,1		57,102		279,229
Primo Water Corp.*		11,931		148,064
				427,293
Biotechnology—2.66%
Clovis Oncology, Inc.*,1		8,310		704,771
Exact Sciences Corp.*,1		44,671		1,733,235
Ligand Pharmaceuticals, Inc.*,1		38,013		4,596,152
Neurocrine Biosciences, Inc.*,1		33,439		1,606,075
Spark Therapeutics, Inc.*,1		3,659		259,789
TESARO, Inc.*,1		5,721		730,343
Ultragenyx Pharmaceutical, Inc.*,1		53,501		3,548,186
				13,178,551
Building products—0.91%
Apogee Enterprises, Inc.1		28,833		1,501,911
JELD-WEN Holding, Inc.*		91,540		2,988,781
				4,490,692
Capital markets—0.94%
Financial Engines, Inc.1		100,145		3,850,575
MarketAxess Holdings, Inc.1		3,920		795,329
				4,645,904
Chemicals—1.22%
Ingevity Corp.*,1		80,011		4,680,644
The Chemours Co.		28,340		1,349,267
				6,029,911
Commercial services & supplies—3.42%
Healthcare Services Group, Inc.		137,780		7,199,005
Innerworkings, Inc.*		153,347		1,807,961

	Number of shares		Value
Common stocks—(continued)
Commercial services & supplies—(concluded)
Mobile Mini, Inc.		93,074	$	2,866,680
Ritchie Brothers Auctioneers, Inc.		180,153		5,085,719
				16,959,365
Communications equipment—1.35%
Ciena Corp.*		57,375		1,477,407
Digi International, Inc.*		155,627		1,626,302
Infinera Corp.*,1		55,829		654,874
Lumentum Holdings, Inc.*,1		40,817		2,555,144
RADCOM Ltd.*,1		16,852		359,790
				6,673,517
Construction & engineering—1.10%
Dycom Industries, Inc.*,1		23,254		2,106,812
MasTec, Inc.*		19,075		881,265
NV5 Global, Inc.*,1		12,155		505,040
Quanta Services, Inc.*		57,528		1,940,420
				5,433,537
Construction materials—1.57%
Eagle Materials, Inc.		39,424		3,709,799
Summit Materials, Inc., Class A*		115,045		3,271,880
US Concrete, Inc.*,1		10,481		821,186
				7,802,865
Consumer finance—1.35%
Green Dot Corp., Class A*		22,055		887,493
PRA Group, Inc.*,1		147,981		5,800,855
				6,688,348
Diversified consumer services—2.17%
Chegg, Inc.*,1		91,416		1,266,112
Grand Canyon Education, Inc.*		128,632		9,463,456
				10,729,568
Diversified telecommunication services—1.81%
Vonage Holdings Corp.*		657,500		4,346,075
Zayo Group Holdings, Inc.*		140,914		4,620,570
				8,966,645
Electronic equipment, instruments & components—3.45%
Belden, Inc.		51,764		3,723,902
Coherent, Inc.*		11,053		2,929,045
National Instruments Corp.		225,261		9,267,237
Orbotech Ltd.*		4,567		161,946
Rogers Corp.*		3,091		364,645
TTM Technologies, Inc.*		37,528		652,237
				17,099,012
Energy equipment & services—0.03%
RPC, Inc.1		7,882		163,236
Equity real estate investment trusts—0.74%
QTS Realty Trust, Inc., Class A		68,576		3,666,759
Food & staples retailing—0.92%
United Natural Foods, Inc.*,1		118,638		4,571,122

182

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Food products—1.70%
Calavo Growers, Inc.1		57,335	$	4,245,657
Freshpet, Inc.*		245,112		4,179,159
				8,424,816
Health care equipment & supplies—6.20%
AxoGen, Inc.*,1		29,094		459,685
Cardiovascular Systems, Inc.*		21,048		664,064
Heska Corp.*		34,198		3,746,049
Hologic, Inc.*		44,738		1,977,867
Inogen, Inc.*		8,987		848,193
Integra LifeSciences Holdings Corp.*,1		68,090		3,381,350
K2M Group Holdings, Inc.*		10,293		250,429
Lantheus Holdings, Inc.*		5,596		103,246
Merit Medical Systems, Inc.*		26,400		1,082,400
Neogen Corp.*		44,197		2,911,256
Nevro Corp.*,1		53,108		4,570,475
Novadaq Technologies, Inc.*		208,550		2,444,206
NuVasive, Inc.*,1		77,804		5,118,725
Penumbra, Inc.*		5,247		428,418
Tactile Systems Technology, Inc.*		27,315		807,158
West Pharmaceutical Services, Inc.		21,402		1,898,357
				30,691,878
Health care providers & services—3.89%
Addus HomeCare Corp.*		17,896		607,569
BioTelemetry, Inc.*		24,653		843,133
Chemed Corp.1		32,635		6,445,413
Diplomat Pharmacy, Inc.*		78,505		1,245,874
HealthEquity, Inc.*,1		57,120		2,620,095
LHC Group, Inc.*		42,171		2,441,701
Teladoc, Inc.*		74,079		2,429,791
US Physical Therapy, Inc.		41,713		2,632,090
				19,265,666
Health care technology—4.13%
athenahealth, Inc.*,1		44,563		6,163,954
Evolent Health, Inc., Class A*,1		161,150		3,980,405
HealthStream, Inc.*		145,864		3,445,308
Inovalon Holdings, Inc., Class A*,1		130,360		1,655,572
Omnicell, Inc.*		8,184		405,926
Veeva Systems, Inc., Class A*		69,719		4,445,284
Vocera Communications, Inc.*		12,967		353,610
				20,450,059
Hotels, restaurants & leisure—2.06%
Dave & Buster's Entertainment, Inc.*		5,696		353,779
Planet Fitness, Inc., Class A1		115,582		2,619,088
The Cheesecake Factory, Inc.1		53,480		2,544,578
Vail Resorts, Inc.		20,645		4,351,140
Wingstop, Inc.*,1		11,870		356,219
				10,224,804
Household durables—0.26%
Century Communities, Inc.*		19,260		498,834
Installed Building Products, Inc.*		8,370		450,306
iRobot Corp.*,1		3,142		331,512
				1,280,652

	Number of shares		Value
Common stocks—(continued)
Household products—0.31%
Central Garden & Pet Co.*,1		7,761	$	248,352
Central Garden and Pet Co., Class A*		41,459		1,275,279
				1,523,631
Insurance—0.17%
Health Insurance Innovations, Inc., Class A*		30,561		857,236
Internet & direct marketing retail—0.06%
Nutrisystem, Inc.		5,680		316,660
Internet software & services—7.77%
2U, Inc.*,1		107,199		5,547,548
Alarm.com Holdings, Inc.*		113,238		4,306,441
Carbonite, Inc.*		45,574		1,075,546
ChannelAdvisor Corp.*		99,444		1,044,162
CommerceHub, Inc. Series A*		1,692		30,862
CoStar Group, Inc.*		21,615		5,956,013
Five9, Inc.*		56,210		1,239,993
GrubHub, Inc.*,1		9,793		451,751
GTT Communications, Inc.*,1		191,719		5,857,015
Hortonworks, Inc.*		25,088		336,179
j2 Global, Inc.1		48,697		4,121,227
LogMeIn, Inc.		4,490		522,861
Nutanix, Inc., Class A*		21,350		453,581
Q2 Holdings, Inc.*		9,635		374,802
ShotSpotter, Inc.*		12,570		150,400
SPS Commerce, Inc.*		82,625		4,775,725
Stamps.com, Inc.*,1		15,228		2,255,267
				38,499,373
IT services—3.62%
Cass Information Systems, Inc.		44,133		2,911,013
Euronet Worldwide, Inc.*		4,707		454,743
ExlService Holdings, Inc.*		61,905		3,562,633
Gartner, Inc.*		29,987		3,847,932
InterXion Holding NV*		29,928		1,432,653
MAXIMUS, Inc.		80,510		4,859,584
Square, Inc., Class A*,1		19,977		526,394
WNS Holdings Ltd., ADR*		9,384		324,217
				17,919,169
Life sciences tools & services—1.08%
Accelerate Diagnostics, Inc.*,1		16,757		439,871
Bio-Techne Corp.		36,365		4,215,067
PRA Health Sciences, Inc.*		9,177		682,769
				5,337,707
Machinery—3.41%
John Bean Technologies Corp.1		55,893		5,164,513
Kornit Digital Ltd.*		26,115		540,580
Proto Labs, Inc.*,1		98,884		7,307,528
RBC Bearings, Inc.*,1		3,911		404,163
Rexnord Corp.*		63,897		1,479,854
The Middleby Corp.*		15,363		2,007,637
				16,904,275

183

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Media—3.47%
Nexstar Media Group, Inc., Class A1		165,127	$	10,799,306
Sinclair Broadcast Group, Inc., Class A		177,332		6,392,818
				17,192,124
Multiline retail—0.17%
Ollie's Bargain Outlet Holdings, Inc.*,1		19,269		861,324
Oil, gas & consumable fuels—1.08%
Carrizo Oil & Gas, Inc.*		214,708		3,383,798
Diamondback Energy, Inc.*,1		20,294		1,945,789
				5,329,587
Pharmaceuticals—1.37%
Corcept Therapeutics, Inc.*,1		22,766		283,892
Pacira Pharmaceuticals Inc/DE*,1		82,394		3,254,563
Supernus Pharmaceuticals, Inc.*,1		51,335		2,076,500
Teligent, Inc.*		23,327		183,817
The Medicines Co.*,1		25,202		969,017
				6,767,789
Professional services—3.49%
Exponent, Inc.		47,476		3,095,435
TransUnion*		109,611		5,023,472
TriNet Group, Inc.*		8,870		310,450
WageWorks, Inc.*		135,757		8,851,357
				17,280,714
Road & rail—1.33%
Knight Transportation, Inc.1		156,189		5,568,138
Old Dominion Freight Line, Inc.		7,891		756,826
Saia, Inc.*		4,990		271,206
				6,596,170
Semiconductors & semiconductor equipment—4.42%
Advanced Energy Industries, Inc.*		4,854		352,158
Cabot Microelectronics Corp.		31,423		2,330,015
Cavium, Inc.*,1		83,968		5,200,978
CEVA, Inc.*		8,426		389,703
FormFactor, Inc.*		15,233		199,552
M/A-COM Technology Solutions Holdings, Inc.*,1		82,570		4,999,613
Microsemi Corp.*		79,422		4,136,298
Power Integrations, Inc.		55,270		3,904,825
Rudolph Technologies, Inc.*		16,109		398,698
				21,911,840
Software—11.85%
8x8, Inc.*		211,929		2,691,498
Asure Software, Inc.*,1		25,943		340,372
Blackline, Inc.*,1		6,765		262,279
Ellie Mae, Inc.*,1		52,826		4,607,484
Everbridge, Inc.*,1		7,096		167,820
Fair Isaac Corp.		11,515		1,641,463
Globant SA*,1		77,852		3,578,856

	Number of shares		Value
Common stocks—(concluded)
Software—(concluded)
HubSpot, Inc.*,1		15,632	$	1,130,975
Imperva, Inc.*		46,569		2,097,933
Paylocity Holding Corp.*,1		88,615		4,029,324
Pegasystems, Inc.		130,919		7,914,054
Proofpoint, Inc.*,1		17,509		1,492,467
PROS Holdings, Inc.*,1		131,463		3,790,078
PTC, Inc.*,1		53,766		2,967,346
RealPage, Inc.*,1		125,097		4,847,509
RingCentral, Inc., Class A*		22,636		787,733
Take-Two Interactive Software, Inc.*		18,797		1,493,986
Tyler Technologies, Inc.*,1		13,359		2,295,210
Ultimate Software Group, Inc.*,1		37,097		8,373,164
Varonis Systems, Inc.*		32,702		1,218,150
Verint Systems, Inc.*		75,420		2,990,403
				58,718,104
Specialty retail—3.53%
Camping World Holdings, Inc., Class A		122,889		3,927,532
Five Below, Inc.*,1		112,425		5,431,252
Murphy USA, Inc.*,1		70,447		5,334,951
The Children's Place, Inc.1		4,170		440,561
Tile Shop Holdings, Inc.1		161,660		2,360,236
				17,494,532
Technology hardware, storage & peripherals—0.59%
Stratasys Ltd.*		110,370		2,647,776
USA Technologies, Inc.*		50,469		280,103
				2,927,879
Textiles, apparel & luxury goods—0.05%
Canada Goose Holdings, Inc.*		12,130		231,198
Thrifts & mortgage finance—0.21%
LendingTree, Inc.*,1		4,635		1,022,481
Trading companies & distributors—2.72%
Beacon Roofing Supply, Inc.*		175,641		8,067,191
BMC Stock Holdings, Inc.*		16,144		355,168
SiteOne Landscape Supply, Inc.*,1		96,434		5,062,785
				13,485,144
Wireless telecommunication services—0.10%
Boingo Wireless, Inc.*		34,593		513,014
Total common stocks (cost—$419,038,160)				491,228,861
	Number of rights
Right—0.02%
Dyax Corp.*,2 (cost—$80,090)		72,153		90,191

184

PACE Small/Medium Co Growth Equity Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Repurchase agreement—1.82%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $8,815,560 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$9,181,021); proceeds: $9,001,013 (cost—$9,001,000)	$	9,001,000	$	9,001,000

	Number of shares		Value
Investment of cash collateral from securities loaned—5.00%
Money market fund—5.00%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$24,788,415)		24,788,415	$	24,788,415
Total investments (cost—$452,907,665)—106.01%				525,108,467
Liabilities in excess of other assets—(6.01)%				(29,785,825	)
Net assets—100.00%			$	495,322,642

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes was $454,691,564; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	82,716,156
Gross unrealized depreciation		(12,299,253	)
Net unrealized appreciation	$	70,416,903

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	491,228,861	$	—	$	—	$	491,228,861
Right		—		—		90,191		90,191
Repurchase agreement		—		9,001,000		—		9,001,000
Investment of cash collateral from securities loaned		—		24,788,415		—		24,788,415
Total	$	491,228,861	$	33,789,415	$	90,191	$	525,108,467

At July 31, 2017, there were no transfers between Level 1 and Level 2.

185

PACE Small/Medium Co Growth Equity Investments

Portfolio of investments—July 31, 2017

Level 3 rollforward disclosure

The following is a rollforward of the Portfolio's investment that was valued using unobservable inputs for the year ended July 31, 2017:

	Right
Beginning balance	$	85,141
Purchases		—
Issuances		—
Sales		—
Accrued discounts/(premiums)		—
Total realized gain/(loss)		—
Net change in unrealized appreciation/depreciation		5,050
Transfers into Level 3		—
Transfers out of Level 3		—
Ending balance	$	90,191

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at July 31, 2017 was $5,050.

Portfolio footnotes

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at the period end.

²  Illiquid investment at the period end.

See accompanying notes to financial statements.
186

PACE International Equity Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 17.08% before the deduction of the maximum PACE Select program fee.¹ In comparison, the MSCI EAFE Index (net) (the "benchmark") returned 17.77% and the Lipper International Multi-Cap Growth Funds category had a median return of 16.82%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 190. 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 3.

Subadvisors' comments (Unaudited)²

Mondrian

Our portion of the Portfolio underperformed the benchmark during the reporting period. Stock selection within markets held back our returns. Strong stock selection in Japan and France was more than offset by stock selection in the UK and the Netherlands. Strong performing individual security holdings included G4S, Allianz, and Société Générale. Weak performing individual security holdings included Kingfisher, Ahold Delhaize and Pearson. Sector allocation weighed on returns, held back by an underweight in financials. Stock selection within sectors added to returns, led by the positive impact of stock selection in the health care and industrials sectors. As of the end of the reporting period, we continue to hold the aforementioned companies.

Country allocation added to performance, led by an underweight position in the Australian equity market, along with overweight positions in Italy and Spain. Currency allocation was broadly neutral for returns, although an underweight position in the Japanese yen proved beneficial.

The main highlights of the strategy being adopted for our portion of the Portfolio are an overweight position in selected European markets, overweight positions in the telecommunication services, energy, and utilities sectors, and underweight positions in the materials, financials and industrials sectors.

Derivatives were not used during the review period.

Chautauqua Capital Management

Our portion of the Portfolio modestly underperformed the benchmark during the reporting period. This was largely attributable to the rally of lower quality, deep value companies during the fourth quarter of 2016 following the

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust –
PACE International Equity Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisors:

Mondrian Investment Partners Limited ("Mondrian");

Chautauqua Capital Management, a division of Robert W. Baird & Co. Incorporated ("Chautauqua");

Los Angeles Capital Management and Equity Research, Inc. ("Los Angeles Capital")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Fred Lee, CFA, Vincent Russo, Mayoor Joshi and Diana To

Mondrian: Elizabeth A. Desmond, Nigel Bliss and Steve Dutaut;

Chautauqua: Brian M. Beitner, CFA;
Los Angeles Capital: Thomas D. Stevens, CFA, Hal W. Reynolds, CFA and Daniel E. Allen, CFA

Objective:

Capital appreciation

Investment process:

Mondrian: The Portfolio 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

(continued on next page)

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PACE International Equity Investments

Subadvisors' comments (Unaudited) – continued

surprise election of Donald Trump. During this period, the outperformance of the value style was significant. Our investment approach, which focuses on companies that are faster growing, more profitable and higher quality than the benchmark, underperformed. So far, 2017 has been a very different market, with the growth style regaining market leadership. During this period, our growth-oriented portion of the Portfolio has had a strong advance, closing the gap versus the benchmark.

While the underlying companies whose securities make up our portion of the Portfolio performed well, market movements created a different effect. The main drivers of the benchmark's performance, from a sector perspective, were derived from strong gains in materials, financials and information technology. Health care was the largest detractor from performance in the benchmark. As a result, our underweights in materials and financials stocks were a drag on performance, while a significant overweight to information technology stocks added to returns. Within the defensive sectors (utilities, consumer staples, health care and telecommunication services), our overweight to leading health care companies lessened returns, while our underweight to poorly performing consumer staples and utilities stocks was beneficial for performance. Our two largest sector conviction overweights—namely health care and information technology—were additive to returns from a stock selection perspective.

Regionally, stock selection in the Asia/Pacific Basin and Africa/Middle East contributed to performance, while Canada-based Lululemon Athletica accounted for the majority of the negative stock selection from North America. As of the end of the reporting period, we continue to hold the security. Allocation effect across the regions was neutral overall.

Derivatives were not used during the reporting period.

Los Angeles Capital

Our portion of the Portfolio outperformed the benchmark during the reporting period, with country/currency tilts adding value. In contrast, fundamental factor exposures and sector tilts detracted from results. Over the period, our portion of the Portfolio was rewarded for overweights to Austria, Hong Kong and Spain. Overall, with European currencies strengthening against the US dollar, exposure to stocks denominated in both the euro and the Danish krone added significant value. Conversely, an overweight to Finland and an underweight to Norway modestly detracted from performance.

At the fundamental level, our portion of the Portfolio benefited from moderately defensive positioning toward stocks with higher earnings quality, as well as securities with weaker short sentiment. Additionally, companies with higher book-to-price ratios rallied during the reporting period and our increased exposure to such companies was rewarded. Among detracting factors, companies with strong three-year price momentum rallied globally and a tilt away from these historical winners hurt performance. Moreover, larger-cap companies within the MSCI EAFE Index outperformed during the report-

Investment process
(continued)

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. The Portfolio 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.

Chautauqua: The Portfolio seeks to achieve consistent risk adjusted excess returns by managing a concentrated portfolio of 25-35 quality, growth companies generally headquartered outside of the United States. The portfolio consists of a carefully diversified set of best idea equities that the Portfolio believes will benefit from long-term trends, have sustainable competitive advantages and exhibit growth that should outpace the market. Companies are valued based on a forward looking cash flow analysis. When selecting investments, the Portfolio has a long-term horizon.

(continued on next page)

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PACE International Equity Investments

Subadvisors' comments (Unaudited) – concluded

ing period and a tilt away from these companies detracted from returns. Exposure to stocks with greater earnings yields also notably detracted from performance, as these companies underperformed over the period.

Within sectors, overweights to technology and materials, and an underweight to telecommunications, contributed to relative returns. This was offset by our overweight to energy, which notably detracted from performance as these companies performed relatively poorly.

As of the end of the reporting period, our portion of the Portfolio was overweight materials, technology and industrials, while being underweight telecommunications, consumer staples and energy. Our portion of the Portfolio exhibited a lower price-to-earnings multiple, a lower dividend yield and a higher earnings growth rate relative to the MSCI EAFE Index. It also displayed a lower beta and was tilted toward relatively smaller companies. (Beta is a measure of volatility or risk relative to the market as a whole.)

Derivatives were not used during the reporting period.

Investment process
(concluded)

Los Angeles Capital: The Portfolio employs a "long/short" or "130/30" equity strategy. The Portfolio buys securities "long" that it believes will outperform the market or decrease portfolio risk, and sells securities "short" that it believes will underperform the market. The Portfolio uses Los Angeles Capital's proprietary quantitative model that includes fundamental data inputs for a universe of equity securities and, through the use of statistical tools, estimates expected returns based on each security's risk characteristics and the expected return to each characteristic in the current market environment.

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 markets issuers than for issuers in more developed countries.

189

PACE International Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		16.71	%		8.98	%		0.68	%
Class C2		15.78			8.09			(0.15	)
Class Y3		17.04			9.27			0.98
Class P4		17.08			9.27			0.94
After deducting maximum sales charge
Class A1		10.26			7.74			0.11
Class C2		14.78			8.09			(0.15	)
MSCI EAFE Index (net)5		17.77			9.06			1.46
Lipper International Multi-Cap Growth Funds median		16.82			8.66			1.71

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		16.77	%		8.29	%		0.10	%
Class C2		15.89			7.42			(0.71	)
Class Y3		17.17			8.60			0.41
Class P4		17.13			8.58			0.37
After deducting maximum sales charge
Class A1		10.33			7.07			(0.46	)
Class C2		14.89			7.42			(0.71	)

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.86% and 1.86%; Class C—2.65% and 2.65%; Class Y—1.56% and 1.56%; and Class P—1.58% and 1.58% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.55%; Class C—2.30%; Class Y—1.30%; and Class P—1.30% The Portfolio has agreed to repay UBS 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 AM. Upon termination of the agreement, however, UBS 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 of 0.25% annually.

²  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 of 0.25% and 0.75% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The MSCI EAFE Index (net) is an index of stocks designed to measure the investment returns of developed economies outside of North America. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. 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.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

190

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, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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.

PACE International Equity Investments

191

PACE International Equity Investments

Portfolio statistics—July 31, 2017 (unaudited)

Top ten holdings (long holdings)1	Percentage of net assets
Sanofi SA		1.8	%
ENI SpA		1.8
Canon, Inc.		1.4
Tesco PLC		1.3
GlaxoSmithKline PLC		1.3
Genmab A/S		1.2
Royal Dutch Shell PLC, B Shares		1.2
Telia Co. AB		1.2
Kirin Holdings Co. Ltd.		1.2
ASML Holding N.V., NY Registered Shares		1.2
Total		13.6	%
Top ten holdings (short holdings)1	Percentage of net assets
Statoil ASA		(0.5	)%
Dufry AG		(0.4	)
Telstra Corp. Ltd.		(0.3	)
SoftBank Group Corp.		(0.3	)
The Swatch Group		(0.3	)
Scentre Group		(0.3	)
Goodman Group		(0.3	)
Mizuho Financial Group, Inc.		(0.3	)
TOTAL SA		(0.2	)
Kobe Steel Ltd.		(0.2	)
Total		(3.1	)%
Top five issuer breakdown by country or territory of origin (long holdings)1	Percentage of net assets
Japan		24.8	%
United Kingdom		15.4
Germany		9.0
Switzerland		8.7
France		6.7
Total		64.6	%
Top five issuer breakdown by country or territory of origin (short holdings)1	Percentage of net assets
Japan		(6.1	)%
Australia		(1.6	)
Switzerland		(0.8	)
France		(0.6	)
Sweden		(0.6	)
Total		(9.7	)%

¹  The Portfolio is actively managed and its composition will vary over time.

192

PACE International Equity Investments

Industry diversification—(unaudited)

As a percentage of net assets as of July 31, 2017

Common stocks
Aerospace & defense	0.55	%
Airlines	0.30
Auto components	1.73
Automobiles	3.97
Banks	8.62
Beverages	1.76
Biotechnology	2.20
Building products	1.32
Capital markets	3.04
Chemicals	2.77
Commercial services & supplies	2.17
Communications equipment	0.63
Construction & engineering	1.39
Construction materials	0.47
Containers & packaging	0.05
Distributors	0.07
Diversified financial services	0.29
Diversified telecommunication services	4.74
Electric utilities	2.94
Electrical equipment	4.18
Electronic equipment, instruments & components	2.01
Energy equipment & services	1.02
Equity real estate investment trusts	1.01
Food & staples retailing	3.02
Food products	1.97
Gas utilities	0.54
Health care equipment & supplies	1.11
Health care providers & services	0.73
Hotels, restaurants & leisure	1.22
Household durables	0.75
Household products	1.22
Independent power and renewable electricity producers	0.06
Industrial conglomerates	0.56
Insurance	8.78
Internet & catalog retail	0.20
Internet software & services	0.70
IT services	2.09
Leisure products	0.46
Life sciences tools & services	0.18
Machinery	2.12
Marine	0.05
Media	1.38
Metals & mining	2.08

Common stocks—(concluded)
Multi-utilities	1.04	%
Multiline retail	0.56
Oil, gas & consumable fuels	6.42
Paper & forest products	0.72
Personal products	0.92
Pharmaceuticals	9.25
Professional services	2.17
Real estate management & development	2.67
Road & rail	0.77
Semiconductors & semiconductor equipment	2.93
Software	3.77
Specialty retail	1.14
Technology hardware, storage & peripherals	0.00	†
Textiles, apparel & luxury goods	1.11
Tobacco	0.49
Trading companies & distributors	0.32
Transportation infrastructure	0.30
Wireless telecommunication services	0.73
Total common stocks	111.76
Preferred stocks
Automobiles	0.05
Household products	0.06
Total preferred stocks	0.11
Repurchase agreement	0.96
Investment of cash collateral from securities loaned	1.11
Total investments before investments sold short	113.94
Investments sold short Common stocks
Aerospace & defense	(0.04	)
Airlines	(0.26	)
Automobiles	(0.19	)
Banks	(1.07	)
Beverages	(0.16	)
Capital markets	(0.17	)
Chemicals	(0.37	)
Commercial services & supplies	(0.07	)
Construction & engineering	(0.14	)
Construction materials	(0.04	)
Consumer finance	(0.33	)
Diversified consumer services	(0.06	)

193

PACE International Equity Investments

Industry diversification—(unaudited) (concluded)

As a percentage of net assets as of July 31, 2017

Investments sold short—(continued) Common stocks—(continued)
Diversified financial services	(0.40	)%
Diversified telecommunication services	(0.47	)
Electric utilities	(0.61	)
Electrical equipment	(0.08	)
Electronic equipment, instruments & components	(0.09	)
Energy equipment & services	(0.30	)
Equity real estate investment trusts	(1.53	)
Food products	(0.24	)
Gas utilities	(0.06	)
Health care equipment & supplies	(0.19	)
Health care technology	(0.06	)
Hotels, restaurants & leisure	(0.55	)
Household durables	(0.07	)
Independent power and renewable electricity producers	(0.05	)
Industrial conglomerates	(0.18	)
Insurance	(0.06	)
Internet & catalog retail	(0.06	)
Internet software & services	(0.07	)
Leisure products	(0.10	)

Investments sold short—(concluded) Common stocks—(concluded)
Machinery	(0.39	)%
Metals & mining	(0.55	)
Oil, gas & consumable fuels	(1.05	)
Personal products	(0.14	)
Pharmaceuticals	(0.47	)
Real estate management & development	(0.29	)
Road & rail	(0.37	)
Semiconductors & semiconductor equipment	(0.06	)
Software	(0.06	)
Specialty retail	(0.50	)
Technology hardware, storage & peripherals	(0.12	)
Textiles, apparel & luxury goods	(0.32	)
Tobacco	(0.09	)
Trading companies & distributors	(0.13	)
Transportation infrastructure	(0.22	)
Wireless telecommunication services	(0.32	)
Total investments sold short	(13.15	)
Liabilities in excess of other assets	(0.79	)
Net assets	100.00	%

^†  Weighting represents less than 0.005% of the Portfolio's net assets as of July 31, 2017.

194

PACE International Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—111.76%
Argentina—0.47%
ArcelorMittal*,1		180,596	$	4,745,061
Eurofins Scientific SE2		1,137		633,149
Total Argentina common stocks				5,378,210
Australia—4.51%
AGL Energy Ltd.		5,716		110,204
AMP Ltd.		966,609		4,168,018
Aristocrat Leisure Ltd.		58,105		941,301
Aurizon Holdings Ltd.		213,643		857,990
Australia & New Zealand Banking Group Ltd.		135,138		3,203,311
BHP Billiton Ltd.		203,041		4,198,888
BlueScope Steel Ltd.		4,443		46,847
Boral Ltd.		176,832		978,942
Brambles Ltd.		438,701		3,242,878
CIMIC Group Ltd.		59,242		1,963,043
Coca-Cola Amatil Ltd.		265,262		1,748,607
Crown Ltd.		160,244		1,630,643
CSL Ltd.		24,826		2,502,461
Fortescue Metals Group Ltd.		330,632		1,518,262
Insurance Australia Group Ltd.		59,931		319,792
Macquarie Group Ltd.		52,606		3,612,138
Medibank Pvt Ltd.		679,440		1,478,461
Mirvac Group		241,683		419,562
Newcrest Mining Ltd.		138,486		2,237,934
Origin Energy Ltd.*		443,631		2,455,941
Qantas Airways Ltd.		11,549		49,153
QBE Insurance Group Ltd.		1,021,072		9,679,763
Santos Ltd.*		818,271		2,219,151
South32 Ltd.		175,214		407,898
Stockland		82,608		277,563
Westpac Banking Corp.		68,836		1,752,289
Total Australia common stocks				52,021,040
Austria—0.53%
Andritz AG		6,423		393,636
Erste Group Bank AG*		24,187		1,005,433
OMV AG		57,881		3,276,605
Raiffeisen Bank International AG*		48,535		1,431,797
Total Austria common stocks				6,107,471
Belgium—1.05%
Ageas		58,669		2,643,705
KBC Group N.V.1		85,658		7,098,138
Solvay SA		4,140		594,484
UCB SA		23,673		1,725,164
Total Belgium common stocks				12,061,491
Bermuda—1.17%
First Pacific Co. Ltd.		396,000		296,589
Hongkong Land Holdings Ltd.		753,400		5,665,568
Jardine Matheson Holdings Ltd.		85,900		5,481,279
Kerry Properties Ltd.		452,500		1,587,353
Shangri-La Asia Ltd.		288,000		468,275
Total Bermuda common stocks				13,499,064

	Number of shares		Value
Common stocks—(continued)
Brazil—0.17%
BB Seguridade Participacoes SA		219,785	$	1,934,709
Canada—0.48%
Encana Corp.		328,683		3,308,580
The Toronto-Dominion Bank		43,360		2,235,209
Total Canada common stocks				5,543,789
Cayman Islands—1.63%
Alibaba Group Holding Ltd., ADR*		22,643		3,508,533
Cheung Kong Property Holdings Ltd.1		614,500		4,976,075
CK Hutchison Holdings Ltd.		206,000		2,713,858
Ctrip.com International Ltd., ADR*		32,448		1,938,119
Sands China Ltd.		437,200		2,029,049
WH Group Ltd.3		3,895,500		3,655,709
Total Cayman Islands common stocks				18,821,343
China—0.50%
BYD Co. Ltd., Class H2		864,085		5,387,533
Sinopharm Group Co., Class H		96,184		403,291
Total China common stocks				5,790,824
Denmark—3.94%
AP Moller—Maersk A/S, Class B		275		600,581
Danske Bank A/S1		90,090		3,649,633
Genmab A/S*,1		61,511		13,991,678
ISS A/S		126,832		5,202,691
Novo Nordisk A/S, ADR		175,681		7,448,874
Novo Nordisk A/S, Class B1		117,330		5,007,151
Novozymes A/S, B Shares2		53,344		2,464,154
Pandora A/S2		28,109		3,234,957
TDC A/S		78,522		484,337
Tryg A/S		50,986		1,150,020
William Demant Holding A/S*		81,359		2,164,048
Total Denmark common stocks				45,398,124
Finland—1.08%
Fortum Oyj		25,942		424,414
Kone Oyj, Class B2		16,958		883,496
Nokian Renkaat Oyj		77,138		3,148,575
Orion Oyj, Class B		12,933		654,200
Sampo Oyj, A Shares		21,452		1,174,006
Stora Enso Oyj, R Shares		64,921		868,445
UPM-Kymmene Oyj1		195,670		5,329,903
Total Finland common stocks				12,483,039
France—6.65%
Arkema SA		2,726		310,377
Atos SE		11,656		1,772,402
AXA SA		18,417		544,179
Capgemini SE		2,795		304,402
Casino Guichard Perrachon SA		16,378		999,272
Cie de Saint-Gobain		153,150		8,501,112
Cie Generale des Etablissements Michelin		5,522		747,500
CNP Assurances		25,049		604,921
Dassault Systemes SE		62,355		6,118,598

195

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
France—(concluded)
Eiffage SA		25,325	$	2,453,842
Engie SA		154,508		2,488,445
Essilor International SA		6,904		875,324
Eutelsat Communications SA		16,171		438,189
Gecina SA		3,986		602,097
Hermes International		1,735		879,066
Iliad SA		31,843		7,902,915
Klepierre		45,548		1,853,491
L'Oreal SA		2,418		501,211
Lagardere SCA		14,788		485,793
Orange SA		97,805		1,646,414
Pernod Ricard SA2		2,251		312,440
Publicis Groupe SA		13,199		998,593
Sanofi SA1		218,704		20,898,560
SCOR SE		33,223		1,400,717
Societe Generale SA		109,275		6,416,245
Sodexo SA		5,624		664,638
Thales SA		7,542		835,592
Unibail-Rodamco SE		7,491		1,874,220
Veolia Environnement SA		57,043		1,286,737
Wendel SA		12,945		1,949,250
Total France common stocks				76,666,542
Germany—8.91%
adidas AG		10,014		2,287,933
Allianz SE		61,359		13,074,626
Bayer AG1		29,428		3,732,771
Bayerische Motoren Werke AG		27,945		2,570,748
Beiersdorf AG		17,770		1,950,050
Continental AG		5,315		1,198,607
Daimler AG		138,771		9,739,993
Deutsche Boerse AG		3,211		336,063
Deutsche Lufthansa AG1		160,863		3,461,059
Deutsche Telekom AG		489,263		8,945,585
E.ON SE		36,562		361,968
Evonik Industries AG		183,552		6,257,921
Fresenius Medical Care AG & Co. KGaA		14,056		1,327,666
Fresenius SE & Co. KGaA		23,163		1,958,637
GEA Group AG2		6,312		256,631
Hannover Rueck SE		4,580		578,507
HeidelbergCement AG		3,624		359,596
Hochtief AG		8,523		1,523,519
Hugo Boss AG2		14,015		1,057,342
LANXESS AG		22,204		1,714,314
Linde AG		3,542		678,431
Metro AG2		58,299		655,706
Metro Wholesale & Food Specialist AG*,2		58,299		1,177,730
Muenchener Rueckversicherungs-Gesellschaft AG1		19,868		4,268,834
Osram Licht AG		39,849		3,326,187
RWE AG*		21,528		454,013
SAP SE		122,606		13,016,248
ThyssenKrupp AG2		28,836		856,303
Volkswagen AG2		20,417		3,144,472
Wirecard AG2		162,501		12,444,334
Total Germany common stocks				102,715,794

	Number of shares		Value
Common stocks—(continued)
Hong Kong—2.99%
AIA Group Ltd.		1,336,265	$	10,529,922
China Mobile Ltd.		599,500		6,428,039
Galaxy Entertainment Group Ltd.		287,000		1,776,572
Hang Lung Group Ltd.		231,000		878,361
Hang Seng Bank Ltd.		55,923		1,217,149
Hysan Development Co. Ltd.		163,000		788,831
New World Development Co. Ltd.		203,000		274,451
Sino Land Co. Ltd.		512,000		845,598
Sun Hung Kai Properties Ltd.1		305,000		4,724,868
Swire Pacific Ltd., Class A		64,500		643,282
Swire Properties Ltd.		577,600		1,996,620
The Wharf Holdings Ltd.		282,000		2,399,101
Wheelock & Co. Ltd.		254,000		1,915,374
Total Hong Kong common stocks				34,418,168
India—0.91%
HDFC Bank Ltd., ADR		108,045		10,456,595
Ireland—0.63%
Allergan PLC		28,538		7,200,994
Isle Of Man—0.19%
Genting Singapore PLC		2,591,800		2,228,128
Israel—0.32%
Bank Leumi Le-Israel B.M.		291,522		1,400,615
Check Point Software Technologies Ltd.*,2		14,244		1,506,730
Nice Ltd.		9,743		723,903
Total Israel common stocks				3,631,248
Italy—4.15%
Assicurazioni Generali SpA		126,204		2,290,307
Atlantia SpA		29,748		904,691
Enel SpA		2,061,154		11,770,535
ENI SpA		1,304,706		20,650,119
GEDI Gruppo Editoriale SpA*		8,859		8,253
Intesa Sanpaolo SpA		217,607		750,141
Leonardo SpA		15,570		271,500
Mediobanca SpA		27,327		285,163
Prysmian SpA		98,923		3,167,693
Recordati SpA		49,482		2,114,623
Snam SpA		88,796		420,046
Telecom Italia SpA*		936,883		965,456
Terna Rete Elettrica Nazionale SpA		735,877		4,204,081
Total Italy common stocks				47,802,608
Japan—24.78%
ABC-Mart, Inc.		14,100		804,472
Aisin Seiki Co. Ltd.		13,500		704,114
Alfresa Holdings Corp.		27,600		508,714
Amada Holdings Co. Ltd.		157,700		1,803,798
Astellas Pharma, Inc.1		356,500		4,553,059
Bridgestone Corp.1		129,700		5,478,824
Canon, Inc.1		457,000		15,905,565
Central Japan Railway Co.1		25,500		4,105,628
Daicel Corp.		67,500		881,060
Daiichi Sankyo Co. Ltd.		77,600		1,694,959

196

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Japan—(continued)
Daikin Industries Ltd.		32,600	$	3,459,749
Daiwa House Industry Co. Ltd.		15,600		544,645
Daiwa Securities Group, Inc.1		102,000		588,527
DeNA Co. Ltd.		73,000		1,605,742
Denso Corp.		23,700		1,140,661
Fuji Electric Holdings Co. Ltd.1		333,000		1,836,491
FUJIFILM Holdings Corp.		1,400		51,469
Fujitsu Ltd.		199,000		1,486,837
Hino Motors Ltd.		75,500		890,975
Hirose Electric Co. Ltd.		4,900		668,475
Hitachi High-Technologies Corp.		12,300		454,089
Hitachi Ltd.		658,000		4,533,691
Honda Motor Co. Ltd.		441,200		12,438,202
Hoshizaki Corp.		3,000		290,625
Hoya Corp.		56,400		3,185,146
Iida Group Holdings Co. Ltd.		35,300		603,569
Inpex Corp.		191,600		1,864,817
Isuzu Motors Ltd.		174,400		2,398,208
Japan Airlines Co. Ltd.		82,700		2,676,526
Japan Post Bank Co. Ltd.2		74,800		962,097
JSR Corp.		34,900		616,674
JTEKT Corp.		39,700		567,169
Kajima Corp.		206,000		1,797,560
Kakaku.com, Inc.		88,700		1,252,718
Kaneka Corp.		61,000		490,235
Kawasaki Heavy Industries Ltd.		368,000		1,174,983
Keyence Corp.		23,052		10,668,176
Kikkoman Corp.		69,600		2,133,865
Kintetsu Group Holdings Co. Ltd.		84,000		322,300
Kirin Holdings Co. Ltd.		616,900		13,600,394
Koito Manufacturing Co. Ltd.		21,100		1,236,392
Konami Holdings Corp.		22,100		1,152,660
Konica Minolta, Inc.		220,700		1,829,741
Kose Corp.		4,600		512,386
Kuraray Co. Ltd.		141,300		2,755,635
Kurita Water Industries Ltd.		56,600		1,612,082
Kyocera Corp.		28,500		1,735,154
Kyushu Railway Co.		108,700		3,584,058
Lawson, Inc.		33,100		2,254,805
LINE Corp.*,2		264,459		9,823,208
LINE Corp., ADR*		74,933		2,754,537
Lion Corp.		88,600		1,896,648
Makita Corp.		17,000		665,382
Maruichi Steel Tube Ltd.		24,000		741,258
Mazda Motor Corp		43,600		658,281
Medipal Holdings Corp.		68,900		1,263,068
MEIJI Holdings Co. Ltd.1		53,200		4,241,716
Miraca Holdings, Inc.		39,600		1,810,368
Mitsubishi Chemical Holdings Corp.		132,100		1,113,165
Mitsubishi Corp.		39,600		860,823
Mitsubishi Electric Corp.		498,300		7,731,345
Mitsubishi Gas Chemical Co., Inc.		34,200		793,228
Mitsubishi Tanabe Pharma Corp.		39,500		941,952
Mitsubishi UFJ Financial Group, Inc.1		765,600		4,861,173
Mitsui Chemicals, Inc.		127,000		725,747
Mixi, Inc.2		31,500		1,734,364

	Number of shares		Value
Common stocks—(continued)
Japan—(continued)
MS&AD Insurance Group Holdings, Inc.		145,000	$	5,092,657
Namco Bandai Holdings, Inc.		44,900		1,561,899
NGK Insulators Ltd.		16,100		324,497
Nippon Electric Glass Co. Ltd.		13,000		461,064
Nippon Telegraph & Telephone Corp.1		74,900		3,661,944
Nomura Research Institute Ltd.		24,200		906,581
NTT DoCoMo, Inc.		87,400		2,031,894
Obayashi Corp.		55,200		664,934
OJI Paper Corp.		132,000		677,691
Olympus Corp.2		129,998		4,728,486
Ono Pharmaceutical Co. Ltd.2		18,600		407,616
Osaka Gas Co. Ltd.		472,000		1,890,226
Otsuka Corp.		9,600		629,580
Rakuten, Inc.		192,700		2,356,203
Recruit Holdings Co. Ltd.		296,738		5,138,309
Rinnai Corp.2		14,700		1,373,396
Sankyo Co. Ltd.		24,400		801,197
Santen Pharmaceutical Co. Ltd.		6,000		84,739
SBI Holdings, Inc.		134,000		1,919,234
Secom Co. Ltd.1		71,500		5,368,094
Sega Sammy Holdings, Inc.		128,900		1,738,621
Sekisui Chemical Co. Ltd.		216,100		3,983,085
Sekisui House Ltd.2		70,400		1,220,641
Seven & I Holdings Co. Ltd.		14,100		568,502
Shimamura Co. Ltd.		6,600		821,371
Shin-Etsu Chemical Co. Ltd.1		48,600		4,456,855
Shionogi & Co. Ltd.		52,000		2,781,006
Showa Shell Sekiyu K.K.2		73,600		801,792
Sohgo Security Services Co. Ltd.		26,500		1,123,747
Sompo Holdings, Inc.		74,000		2,907,778
Subaru Corp.1		136,500		4,945,177
Sumitomo Corp.		148,900		2,014,462
Sumitomo Electric Industries Ltd.		130,100		2,109,427
Sumitomo Realty & Development Co. Ltd.		23,000		697,438
Sumitomo Rubber Industries Ltd.		88,500		1,538,083
Sundrug Co. Ltd.		11,000		410,087
Suntory Beverage & Food Ltd.		34,900		1,712,631
Suruga Bank Ltd.		16,700		403,242
Suzuken Co. Ltd.		15,700		524,781
T&D Holdings, Inc.		108,800		1,610,609
Taiheiyo Cement Corp.1		132,000		496,893
Taisei Corp.		142,000		1,360,171
Taisho Pharmaceutical Holdings Co. Ltd.		4,600		345,068
Takashimaya Co. Ltd.		60,000		549,685
Takeda Pharmaceutical Co. Ltd.		228,200		12,071,862
TDK Corp.		20,600		1,485,510
Teijin Ltd.		51,200		1,030,084
The Dai-ichi Life Holding, Inc.		84,800		1,469,933
THK Co. Ltd.		12,400		379,609
Tokio Marine Holdings, Inc.		215,300		9,071,327
Tosoh Corp.		101,000		1,204,726
Toyo Seikan Group Holdings Ltd.2		31,800		521,803
Toyo Suisan Kaisha Ltd.		47,600		1,731,380
Toyoda Gosei Co. Ltd.		42,700		1,010,903
Trend Micro, Inc.		23,600		1,181,659
Tsuruha Holdings, Inc.		5,500		577,713

197

PACE International Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Japan—(concluded)
UniCharm Corp.		50,400	$	1,293,544
Yamaha Corp.		32,400		1,146,174
Yamaha Motor Co. Ltd.		58,600		1,477,691
Yamazaki Baking Co. Ltd.		34,800		698,873
Total Japan common stocks				285,588,168
Jersey—0.22%
Glencore PLC*		314,559		1,386,820
Shire PLC		7,198		404,669
Wolseley PLC		13,346		797,147
Total Jersey common stocks				2,588,636
Luxembourg—0.05%
SES SA		24,559		577,825
Netherlands—5.76%
Aegon N.V.		611,814		3,432,295
Airbus SE		10,428		871,534
Akzo Nobel N.V.		19,489		1,763,092
ASML Holding N.V.		16,654		2,526,479
ASML Holding N.V., NY Registered Shares		89,370		13,434,992
CNH Industrial N.V.1		381,674		4,427,893
Core Laboratories N.V.2		69,880		7,025,036
EXOR N.V.		12,422		744,082
Fiat Chrysler Automobiles N.V.*		246,528		2,976,767
ING Groep N.V.		175,192		3,279,910
Koninklijke Ahold Delhaize N.V.		527,332		10,796,505
Koninklijke DSM N.V.		8,778		648,216
Koninklijke KPN N.V.2		96,295		349,278
Koninklijke Vopak N.V.2		41,065		1,957,393
NN Group N.V.		63,325		2,570,521
Randstad Holding N.V.		42,422		2,560,174
STMicroelectronics N.V.2		162,602		2,777,606
Unilever N.V.		28,161		1,643,514
Wolters Kluwer N.V.		59,273		2,639,347
Total Netherlands common stocks				66,424,634
New Zealand—0.39%
Auckland International Airport Ltd.		235,195		1,229,355
Fletcher Building Ltd.		336,164		2,017,149
Meridian Energy Ltd.		294,931		637,900
Ryman Healthcare Ltd.		86,774		574,775
Total New Zealand common stocks				4,459,179
Norway—0.19%
DNB ASA		17,010		334,452
Norsk Hydro ASA		223,642		1,443,476
Orkla ASA		38,749		399,177
Total Norway common stocks				2,177,105
Papua New Guinea—0.39%
Oil Search Ltd.		846,533		4,496,783
Portugal—0.23%
Jeronimo Martins, SGPS SA		137,107		2,698,359

	Number of shares		Value
Common stocks—(continued)
Singapore—2.61%
Ascendas Real Estate Investment Trust		2,567,600	$	5,115,685
DBS Group Holdings Ltd.		28,900		461,069
Hutchison Port Holdings Trust		1,374,500		652,887
Jardine Cycle & Carriage Ltd.		26,000		774,350
Oversea-Chinese Banking Corp. Ltd.		119,300		1,000,072
SATS Ltd.		192,700		686,818
Singapore Telecommunications Ltd.		2,445,900		7,165,423
United Overseas Bank Ltd.		674,598		11,942,299
Wilmar International Ltd.		396,800		977,982
Yangzijiang Shipbuilding Holdings Ltd.		1,292,600		1,349,687
Total Singapore common stocks				30,126,272
South Africa—0.53%
Naspers Ltd., N Shares		27,551		6,080,401
South Korea—0.66%
Amorepacific Corp.		30,177		7,645,038
Spain—5.66%
ACS Actividades de Contruccion y Servicios SA1		131,756		5,057,418
Amadeus IT Holding SA1		105,875		6,524,933
Banco Bilbao Vizcaya Argentaria SA		350,009		3,170,121
Banco Santander SA		509,884		3,485,192
CaixaBank SA		373,213		1,951,032
Enagas SA1		137,998		3,901,904
Grifols SA, ADR		307,273		6,437,369
Iberdrola SA		1,678,974		13,245,167
Industria de Diseno Textil SA		50,707		2,016,306
Red Electrica Corp. SA1		182,541		3,915,589
Repsol SA1		345,086		5,784,543
Telefonica SA		858,431		9,714,977
Total Spain common stocks				65,204,551
Sweden—3.47%
Assa Abloy AB, B Shares		50,873		1,090,073
Atlas Copco AB, A Shares		35,136		1,273,352
Boliden AB		47,173		1,481,715
Getinge AB, B Shares		83,849		1,456,022
Husqvarna AB, B Shares		85,710		872,090
Nordea Bank AB		88,136		1,112,371
Skanska AB, B Shares		54,556		1,240,616
SKF AB, B Shares1		225,152		4,478,611
Svenska Handelsbanken AB, A Shares2		43,648		649,817
Swedbank AB, A Shares1		153,735		4,013,889
Swedish Match AB		37,027		1,302,443
Telefonaktiebolaget LM Ericsson, B Shares		1,117,700		7,260,938
Telia Co. AB		2,924,914		13,748,233
Total Sweden common stocks				39,980,170
Switzerland—8.66%
ABB Ltd.		521,576		12,244,454
Adecco Group SA1		62,458		4,766,948
Cie Financiere Richemont SA		11,382		966,990
Coca-Cola HBC AG*		85,362		2,581,403
Geberit AG		4,607		2,216,429

198

PACE International Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Switzerland—(concluded)
Julius Baer Group Ltd.*		170,494	$	9,644,782
LafargeHolcim Ltd.*		25,569		1,529,724
Lonza Group AG*		5,880		1,398,625
Nestle SA1		90,242		7,624,770
Novartis AG		123,291		10,506,415
Pargesa Holding SA		3,932		313,926
Partners Group Holding AG1		6,409		4,162,420
Roche Holding AG1		33,125		8,389,588
Schindler Holding AG		9,786		2,111,133
SGS SA		953		2,107,156
Sika AG		511		3,522,225
Sonova Holding AG2		9,124		1,480,486
Straumann Holding AG		2,993		1,691,581
Swiss Life Holding AG*		4,690		1,712,157
Swiss Prime Site AG*		1,561		140,852
Swiss Re AG		35,608		3,433,938
Temenos Group AG*		70,053		6,773,831
Zurich Insurance Group AG		34,435		10,498,410
Total Switzerland common stocks				99,818,243
Taiwan—1.30%
Taiwan Semiconductor Manufacturing Co. Ltd.		1,087,000		7,721,730
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		202,094		7,267,300
Total Taiwan common stocks				14,989,030
United Kingdom—15.36%
3i Group PLC1		382,703		4,726,225
Aberdeen Asset Management PLC		129,797		564,111
AMEC PLC		522,969		3,062,245
Anglo American PLC*		155,617		2,571,647
Associated British Foods PLC		10,692		418,132
AstraZeneca PLC		20,625		1,243,345
Barclays PLC		1,311,445		3,512,552
BP PLC		1,653,382		9,725,007
British American Tobacco PLC1		70,572		4,388,869
Burberry Group PLC		60,347		1,362,330
Centrica PLC		512,410		1,342,007
Compass Group PLC		50,230		1,071,642
Diageo PLC		9,513		307,322
G4S PLC		2,332,467		10,118,682
GKN PLC		887,753		3,765,735
GlaxoSmithKline PLC1		719,869		14,384,653
Hammerson PLC		122,205		926,309
Hargreaves Lansdown PLC		507,703		9,244,117
HSBC Holdings PLC1		386,742		3,862,726
IMI PLC		96,092		1,525,209
InterContinental Hotels Group PLC		23,238		1,315,630
Intertek Group PLC		14,427		818,695
Investec PLC		34,612		263,042
Kingfisher PLC		2,435,633		9,460,766
Legal & General Group PLC		603,066		2,135,620
Lloyds Banking Group PLC		12,501,770		10,817,317
Mondi PLC		52,257		1,375,511

	Number of shares		Value
Common stocks—(concluded)
United Kingdom—(concluded)
National Grid PLC		513,703	$	6,349,443
Next PLC		113,739		5,927,658
Old Mutual PLC		244,886		634,897
Pearson PLC		672,733		5,835,998
Prudential PLC		13,410		326,970
Reckitt Benckiser Group PLC1		112,400		10,928,272
Rio Tinto PLC		40,143		1,864,357
Rolls-Royce Holdings PLC*,4		145,277		1,702,105
Royal Dutch Shell PLC, A Shares5		129,712		3,650,460
Royal Dutch Shell PLC, B Shares4		484,427		13,754,577
RSA Insurance Group PLC		53,309		458,942
Segro PLC		76,711		533,390
Sky PLC		115,444		1,469,858
Smith & Nephew PLC		25,107		437,266
Smiths Group PLC		25,721		520,922
Standard Chartered PLC*		232,576		2,598,191
Taylor Wimpey PLC		238,367		598,811
Tesco PLC*		6,401,725		14,713,697
The Sage Group PLC		39,851		354,385
Total United Kingdom common stocks				176,969,645
United States—0.26%
Lululemon Athletica, Inc.*		48,128		2,966,610
Venezuela—0.96%
Croda International PLC		48,791		2,382,514
John Wood Group PLC		210,439		1,695,073
Nielsen Holdings PLC		162,698		6,997,641
Total Venezuela common stocks				11,075,228
Total common stocks (cost—$1,164,481,373)				1,288,025,058
Preferred stocks—0.11%
Germany—0.11%
Bayerische Motoren Werke AG		7,036		560,973
Henkel AG & Co. KGaA Vorzug		5,155		730,773
Total preferred stocks (cost—$1,066,960)				1,291,746
	Face amount
Repurchase agreement—0.96%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $10,833,120 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$11,282,221); proceeds: $11,061,015 (cost—$11,061,000)	$	11,061,000		11,061,000

199

PACE International Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares			Value
Investment of cash collateral from securities loaned—1.11%
Money market fund—1.11%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$12,753,422)		12,753,422		$	12,753,422
Total investments before investments sold short (cost—$1,189,362,755)—113.94%					1,313,131,226
Investments sold short—(13.15)%
Common stocks—(13.15)%
Argentina—(0.14)%
Tenaris SA		(104,583	)		(1,657,754	)
Australia—(1.64)%
Alumina Ltd.		(190,195	)		(289,097	)
AusNet Services		(812,319	)		(1,062,513	)
Caltex Australia Ltd.		(43,834	)		(1,091,993	)
Challenger Ltd.		(163,480	)		(1,680,574	)
Domino's Pizza Enterprises Ltd.		(27,798	)		(1,185,529	)
Goodman Group		(500,640	)		(3,188,076	)
Scentre Group		(1,041,135	)		(3,439,910	)
Telstra Corp. Ltd.		(1,161,932	)		(3,811,137	)
Vicinity Centres		(345,080	)		(759,176	)
Westfield Corp.		(308,188	)		(1,893,507	)
Woodside Petroleum Ltd.		(21,304	)		(497,150	)
					(18,898,662	)
Belgium—(0.10)%
Anheuser-Busch InBev SA		(9,518	)		(1,147,023	)
Cayman Islands—(0.33)%
ASM Pacific Technology Ltd.		(55,400	)		(717,786	)
CK Hutchison Holdings Ltd.		(159,000	)		(2,094,676	)
MGM China Holdings Ltd.		(475,600	)		(936,489	)
					(3,748,951	)
Denmark—(0.15)%
Chr Hansen Holding A/S		(20,791	)		(1,674,598	)
France—(0.65)%
Accor SA		(22,469	)		(1,044,269	)
Aeroports de Paris		(6,924	)		(1,172,528	)
Groupe Eurotunnel SE		(88,140	)		(976,833	)
Iliad SA		(4,373	)		(1,085,308	)
TOTAL SA		(53,520	)		(2,721,817	)
Zodiac Aerospace		(16,290	)		(465,711	)
					(7,466,466	)
Germany—(0.23)%
Deutsche Wohnen AG		(40,627	)		(1,610,436	)
Merck KGaA		(4,112	)		(451,974	)
Telefonica Deutschland Holding AG		(108,771	)		(562,309	)
					(2,624,719	)
Hong Kong—(0.36)%
Hong Kong Exchanges & Clearing Ltd.		(14,226	)		(405,791	)
MTR Corp. Ltd.		(447,415	)		(2,586,263	)

	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
Hong Kong—(concluded)
SJM Holdings Ltd.		(754,000	)	$	(754,888	)
The Link REIT		(53,000	)		(430,878	)
					(4,177,820	)
Ireland—(0.05)%
Kerry Group PLC, Class A		(6,304	)		(569,775	)
Italy—(0.15)%
Saipem SpA		(426,708	)		(1,747,774	)
Japan—(6.14)%
Acom Co. Ltd.		(277,400	)		(1,182,621	)
AEON Financial Service Co. Ltd.		(26,800	)		(583,671	)
ANA Holdings, Inc.		(358,000	)		(1,229,108	)
Benesse Holdings, Inc.		(18,300	)		(701,324	)
Casio Computer Co. Ltd.		(27,100	)		(444,436	)
Chugai Pharmaceutical Co. Ltd.		(18,800	)		(756,297	)
Concordia Financial Group Ltd.		(64,000	)		(323,236	)
Credit Saison Co. Ltd.		(24,000	)		(462,388	)
Electric Power Development Co. Ltd.		(21,700	)		(549,758	)
FANUC Corp.		(12,100	)		(2,476,634	)
Fukuoka Financial Group, Inc.		(162,000	)		(747,952	)
Hoya Corp.		(18,100	)		(1,022,183	)
IHI Corp.		(87,000	)		(287,251	)
Japan Airport Terminal Co. Ltd.		(10,100	)		(374,702	)
Japan Exchange Group, Inc.		(24,200	)		(434,852	)
Japan Post Holdings Co. Ltd.		(53,600	)		(676,290	)
Japan Real Estate Investment Corp.		(222	)		(1,165,930	)
Japan Retail Fund Investment Corp.		(347	)		(662,871	)
Japan Tobacco, Inc.		(29,200	)		(1,015,491	)
JFE Holdings, Inc.		(98,300	)		(1,901,445	)
JGC Corp.		(66,300	)		(1,063,855	)
JXTG Holdings, Inc.		(182,200	)		(810,145	)
Kansai Paint Co. Ltd.		(47,100	)		(1,081,320	)
Keikyu Corp.		(110,000	)		(1,278,153	)
Kobe Steel Ltd.		(212,000	)		(2,657,572	)
Kyushu Electric Power Co., Inc.		(31,400	)		(371,975	)
Kyushu Financial Group, Inc.		(40,500	)		(254,583	)
M3, Inc.		(25,600	)		(690,825	)
Marubeni Corp.		(217,400	)		(1,442,103	)
McDonald's Holdings Co. Japan Ltd.		(10,700	)		(435,299	)
Mebuki Financial Group, Inc.		(297,300	)		(1,146,106	)
MINEBEA MITSUMI, Inc.		(85,600	)		(1,415,473	)
Mitsubishi Heavy Industries Ltd.		(82,000	)		(326,750	)
Mitsubishi Materials Corp.		(12,900	)		(434,115	)
Mizuho Financial Group, Inc.		(1,685,300	)		(3,002,340	)
NEC Corp.		(131,000	)		(356,479	)
Nidec Corp.		(7,900	)		(871,368	)
Nintendo Co. Ltd.		(2,200	)		(747,934	)
Nippon Paint Holdings Co. Ltd.		(39,000	)		(1,505,238	)
Nippon Prologis REIT, Inc.		(989	)		(2,085,741	)
Nomura Holdings, Inc.		(182,900	)		(1,089,652	)
Nomura Real Estate Holdings, Inc.		(85,100	)		(1,688,955	)
Nomura Real Estate Master Fund, Inc.		(218	)		(309,070	)

200

PACE International Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
Japan—(concluded)
Olympus Corp.		(52,700	)	$	(1,916,885	)
Oriental Land Co. Ltd.		(17,800	)		(1,290,700	)
Park24 Co. Ltd.		(30,700	)		(776,933	)
Ricoh Co. Ltd.		(105,200	)		(989,545	)
Santen Pharmaceutical Co. Ltd.		(135,800	)		(1,917,916	)
Seven Bank Ltd.		(414,100	)		(1,641,450	)
Shimano, Inc.		(7,900	)		(1,159,436	)
Shiseido Co. Ltd.		(46,800	)		(1,655,585	)
SoftBank Group Corp.		(45,600	)		(3,705,246	)
Start Today Co. Ltd.		(24,600	)		(695,079	)
Sumitomo Mitsui Trust Holdings, Inc.		(19,300	)		(709,712	)
Takeda Pharmaceutical Co. Ltd.		(17,700	)		(936,336	)
Terumo Corp.		(7,800	)		(295,388	)
The Bank of Kyoto Ltd.		(142,000	)		(1,362,747	)
The Chugoku Bank Ltd.		(41,400	)		(600,844	)
The Chugoku Electric Power Co Inc.		(195,800	)		(2,147,238	)
The Hachijuni Bank Ltd.		(56,900	)		(361,802	)
The Kansai Electric Power Co., Inc.		(115,100	)		(1,546,221	)
The Shizuoka Bank Ltd.		(56,000	)		(500,340	)
Tokyo Gas Co. Ltd.		(131,000	)		(695,252	)
Tokyu Corp.		(27,000	)		(397,487	)
United Urban Investment Corp.		(1,024	)		(1,527,013	)
Yahoo Japan Corp.		(180,300	)		(817,724	)
Yakult Honsha Co. Ltd.		(8,000	)		(545,694	)
Yamaguchi Financial Group, Inc.		(38,000	)		(447,748	)
					(70,703,812	)
Mauritius—(0.07)%
Golden Agri-Resources Ltd.		(2,799,400	)		(815,971	)
Netherlands—(0.24)%
Boskalis Westminster		(15,912	)		(569,337	)
Ferrari N.V.		(20,754	)		(2,189,062	)
					(2,758,399	)
New Zealand—(0.03)%
Mercury NZ Ltd.		(127,096	)		(332,163	)
Norway—(0.53)%
Marine Harvest ASA		(47,243	)		(880,228	)
Statoil ASA		(281,761	)		(5,282,000	)
					(6,162,228	)

	Number of shares			Value
Investments sold short—(concluded)
Common stocks—(concluded)
Singapore—(0.36)%
CapitaLand Mall Trust		(1,221,200	)	$	(1,811,321	)
Singapore Airlines Ltd.		(177,400	)		(1,360,134	)
Suntec Real Estate Investment Trust		(232,400	)		(325,839	)
United Overseas Bank Ltd.		(35,600	)		(630,221	)
					(4,127,515	)
Spain—(0.19)%
Banco Santander SA		(89,477	)		(611,599	)
Endesa SA		(68,262	)		(1,616,980	)
					(2,228,579	)
Sweden—(0.60)%
James Hardie Industries PLC		(33,447	)		(512,676	)
Hennes & Mauritz AB, B Shares		(67,023	)		(1,747,423	)
Industrivarden AB, C Shares		(31,205	)		(757,534	)
Investor AB		(39,825	)		(1,889,194	)
Kinnevik AB		(10,078	)		(309,562	)
Lundin Petroleum AB		(75,369	)		(1,714,841	)
					(6,931,230	)
Switzerland—(0.78)%
Dufry AG		(25,008	)		(3,985,452	)
The Swatch Group AG		(9,244	)		(3,670,067	)
Vifor Pharma AG		(12,223	)		(1,305,793	)
					(8,961,312	)
United Kingdom—(0.03)%
easyJet PLC		(24,858	)		(405,379	)
Venezuela—(0.38)%
Coca-Cola European Partners PLC		(14,773	)		(642,432	)
Berkeley Group Holdings PLC		(7,752	)		(357,570	)
Fresnillo PLC		(53,760	)		(1,089,500	)
Provident Financial PLC		(59,713	)		(1,624,554	)
Whitbread PLC		(13,615	)		(691,241	)
					(4,405,297	)
Total investments sold short (proceeds—$140,573,714)					(151,545,427	)
Liabilities in excess of other assets—(0.79)%					(9,149,184	)
Net assets—100.00%				$	1,152,436,615

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes before investments sold short was $1,204,601,752; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	157,391,819
Gross unrealized depreciation		(48,862,345	)
Net unrealized appreciation	$	108,529,474

201

PACE International Equity Investments

Portfolio of investments—July 31, 2017

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	1,288,025,058		$	—	$	—	$	1,288,025,058
Preferred stocks		1,291,746			—		—		1,291,746
Repurchase agreement		—			11,061,000		—		11,061,000
Investment of cash collateral from securities loaned		—			12,753,422		—		12,753,422
Total	$	1,289,316,804		$	23,814,422	$	—	$	1,313,131,226
Liabilities
Investments sold short	$	(151,545,427	)	$	—	$	—	$	(151,545,427	)

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

*  Non-income producing security.

¹  Security, or portion thereof, pledged as collateral for investments sold short.

²  Security, or portion thereof, was on loan at the period end.

³  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

⁴  Security is traded on the London Exchange.

⁵  Security is traded on the Amsterdam Exchange.

See accompanying notes to financial statements.
202

PACE International Emerging Markets Equity Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 20.18% before the deduction of the maximum PACE Select program fee.¹ In comparison, the MSCI Emerging Markets Index (net) (the "benchmark") returned 24.84%, and the Lipper Emerging Markets Funds category posted a median return of 22.35%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 206. 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 3.

Subadvisors' comments (Unaudited)²

Mondrian

Our portion of the Portfolio underperformed the benchmark during the reporting period. Sector positioning continued to be an important factor in explaining our relative performance over this period. Information technology ("IT") was the strongest sector, while the materials sector also performed well following a sharp recovery in commodity prices. Meanwhile, the more defensive telecommunications, consumer staples and utilities sectors significantly underperformed the benchmark. Our underweight exposure to IT and overweight exposure to the telecommunications sector significantly weighed on performance. These negatives were partially offset by strong stock selection in the energy and consumer staples sectors. From a country perspective, an underweight exposure and stock selection in China was the chief factor weighing on returns, as a lack of exposure to the strong returns of internet stocks Tencent and Alibaba represented a significant headwind to performance. In contrast, we saw strong returns from consumer stocks Sands China, WH Group and Belle International, as well as from power utility China Resources Power. In the Philippines, telecommunications operator PLDT underperformed as the market digested the impact of the company's investment program on its margins and balance sheet. These negative effects were partially offset by very strong returns in India, due to good performance from the housing finance stock Indiabulls and energy stocks Cairn India and Reliance Industries. Cairn India was merged into Vedanta Ltd. in April 2017 and, as of the end of the reporting period, we continue to hold a position in Vedanta Ltd. We also benefited from the outperformance of holdings in Indonesia. In Latin America, our portion of the Portfolio was negatively impacted by the performance of Mexican REIT Fibra Uno which was hurt by currency weakness and fear over the outlook for the Mexican economy as a result of the Trump presidency. In Europe, the Middle East and Africa

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust – PACE International Emerging Markets Equity Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisors:

Mondrian Investment Partners Limited ("Mondrian"); William Blair & Company L.L.C. ("William Blair");

LMCG Investments, LLC, formerly Lee Munder Capital Group ("LMCG")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Fred Lee, CFA, Vincent Russo, Mayoor Joshi and Diana To

Mondrian: Ginny Chong, Gregory Halton and Andrew Miller;

William Blair: Todd M. McClone, Jeffrey A. Urbina and Jack Murphy;

LMCG: Gordon Johnson and Shannon Ericson

Objective:

Capital appreciation

Investment process:

Mondrian: The Portfolio 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

(continued on next page)

203

PACE International Emerging Markets Equity Investments

Subadvisors' comments (Unaudited) – continued

("EMEA"), weak performance of South African retailer Woolworths and Russian energy company Gazprom further detracted from performance.

Derivatives were not used during the reporting period.

William Blair

Our portion of the Portfolio modestly underperformed the benchmark during the reporting period. This was largely driven by pronounced style headwinds in late 2016, as low valuation market leadership intensified after the US presidential election. Our emphasis on higher quality, higher growth companies with relatively strong earnings trends and low earnings volatility, and concomitant higher valuations, detracted from performance in this environment.

From a sector attribution perspective, stock selection in consumer staples and energy were significant detractors from performance. Within energy, Petrobras's share price was primarily impacted by concerns about the sustainability of the company's turnaround in the wake of the corruption investigation involving Brazilian President Temer, including a potential rollback of fuel price liberalization, which would be detrimental to the company's refining margins. An overweight to the consumer staples sector also weighed on performance. These negative effects were mitigated by positive stock selection in the consumer discretionary and information technology sectors. From a geographic perspective, poor stock selection effects in Latin America was offset by strong stock selection in Asia and Europe, the Middle East and Africa ("EMEA").

India's HDFC Bank was a top contributor to performance during the reporting period, supported by better-than-consensus earnings results on higher margins and market share gains. HDFC Bank's share price rebounded strongly following the government's surprise demonetization program in late 2016. The company also continued to take market share from India's public sector banks, supported by strong growth in low cost savings account deposits. As of the end of the reporting period, we continue to hold HDFC Bank.

From a positioning perspective, during the reporting period our portion of the Portfolio added to emerging markets Asia exposure, while reducing its allocation to EMEA. In terms of sectors, we added to our information technology and financials exposure, while reducing our allocations to consumer staples and telecommunication services.

Derivatives were not used during the reporting period.

LMCG Investments, LLC

Our portion of the Portfolio performed in line with the benchmark during the reporting period. Our strategy is to add value primarily from stock selection by emphasizing three main categories of factors: Valuation, Market Dynamics and Earnings Quality. We expect these strategies will pay off positively over time. During the reporting period, our overall stock selection model worked modestly well on average, but the effectiveness of its three major compo-

Investment process
(continued)

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. The Portfolio 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.

William Blair: The Portfolio 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. The Portfolio'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, the Portfolio undertakes detailed fundamental analysis of these companies, focusing attention on areas where short- to intermediate-term earnings trends and overall

(continued on next page)

204

PACE International Emerging Markets Equity Investments

Subadvisors' comments (Unaudited) – concluded

nents (Valuation, Market Dynamics and Earnings Quality) varied from month to month. Investors continued to pivot between "risk-on" and "risk-off" trades for much of the period. Valuation tends to work in "risk on" environments, but not during "risk off" environments, while the opposite is true for Market Dynamics. Against this backdrop, it was more difficult for the strategy to add value when these two categories of factors were offsetting each other. In early 2017, correlations among stocks came down worldwide and are lower for emerging markets versus developed markets. This has benefited the strategy, as stocks have been trading more on their company fundamentals, and our active stock picking strategy has benefited as a result.

Viewed on a market-by-market basis, stock selection modestly added to performance during the reporting period. Positive stock selection, particularly in India and Thailand, was partially offset by negative stock selection in South Africa and South Korea. Country allocation detracted from relative performance due to an overweight in Malaysia and an underweight in Russia. In terms of sectors, our portion of the Portfolio benefited from positive stock selection led by energy, financials and consumer discretionary. Sector allocation was a slight headwind to performance, due to an underweight in financials and overweight in information technology and materials.

Derivatives were not used during the reporting period.

Investment process
(concluded)

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.

LMCG: The Portfolio uses a bottom-up quantitative approach to investing in emerging markets equity securities. Inefficiencies in the market create opportunities, and the Portfolio believes that a quantitative process, which relies on sophisticated mathematical or statistical models in selecting investments, is well-suited to capture these inefficiencies and provide an opportunity to outperform the market. The Portfolio's stock selection model groups factors used to select investments into three major categories: market dynamics, value and quality.

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 markets issuers than for issuers in more developed countries.

205

PACE International Emerging Markets Equity Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		19.95	%		3.37	%		0.52	%
Class C2		19.04			2.60			(0.22	)
Class Y3		20.21			3.63			0.80
Class P4		20.18			3.55			0.62
After deducting maximum sales charge
Class A1		13.39			2.21			(0.05	)
Class C2		18.04			2.60			(0.22	)
MSCI Emerging Markets Index (net)5		24.84			4.76			1.98
Lipper Emerging Markets Funds median		22.33			4.85			1.58

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years
Before deducting maximum sales charge
Class A1		18.68	%		2.50	%		0.37	%
Class C2		17.91			1.75			(0.37	)
Class Y3		18.95			2.75			0.65
Class P4		19.02			2.68			0.47
After deducting maximum sales charge
Class A1		12.14			1.35			(0.20	)
Class C2		16.91			1.75			(0.37	)

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, supplemented from time to time, were as follows: Class A—1.90% and 1.75%; Class C—2.65% and 2.50%; Class Y—1.63% and 1.50%; and Class P—1.69% and 1.50% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed, prior to August 1, 2017, Class A—1.75%; Class C—2.50%; Class Y—1.50%; and Class P—1.50% Effective August 1, 2017, the expense caps are as follows: 1.70% for Class A, 2.45% for Class C, 1.50% for Class Y, and 1.50% for Class P. The Portfolio has agreed to repay UBS 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 and that UBS AM has not waived the right to do so. 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 AM. Upon termination of the agreement, however, UBS 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 of 0.25% annually.

²  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 of 0.25% and 0.75% annually, respectively.

³  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.

⁴  Class P shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 service and distribution fees, but Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁵  The MSCI Emerging Markets Index (net) is a market capitalization-weighted index composed of different emerging market countries in Europe, Latin America, and the Pacific Basin. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to nonresident institutional investors who do not benefit from double taxation treaties. 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.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

206

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 (net) over the 10 years ended July 31, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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 are unmanaged. The comparison is shown for illustration purposes only.

PACE International Emerging Markets Equity Investments

207

PACE International Emerging Markets Equity Investments

Portfolio statistics—July 31, 2017 (unaudited)

Top ten holdings1	Percentage of net assets
Samsung Electronics Co. Ltd.		5.0	%
Tencent Holdings Ltd.		3.5
Alibaba Group Holding Ltd., ADR		2.8
Taiwan Semiconductor Manufacturing Co. Ltd.		2.5
Shinhan Financial Group Co. Ltd.		1.8
China Construction Bank Corp., Class H		1.7
China Mobile Ltd.		1.4
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		1.3
Housing Development Finance Corp.		1.3
Itau Unibanco Holding SA		1.1
Total		22.4	%
Top five issuer breakdown by country or territory of origin1	Percentage of net assets
South Korea		14.5	%
India		11.8
Taiwan		11.5
Cayman Islands		10.7
China		8.3
Total		56.8	%

¹  The Portfolio is actively managed and its composition will vary over time.

208

PACE International Emerging Markets Equity Investments

Industry diversification—(unaudited)

As a percentage of net assets as of July 31, 2017

Common stocks
Auto components	1.41	%
Automobiles	4.35
Banks	17.10
Beverages	1.25
Capital markets	0.37
Chemicals	2.34
Construction & engineering	0.88
Construction materials	0.58
Consumer finance	0.13
Distributors	0.20
Diversified consumer services	0.36
Diversified financial services	0.43
Diversified telecommunication services	1.41
Electric utilities	1.50
Electrical equipment	0.23
Electronic equipment, instruments & components	1.96
Equity real estate investment trusts	1.54
Food & staples retailing	3.38
Food products	1.79
Gas utilities	0.31
Health care providers & services	0.40
Hotels, restaurants & leisure	2.11
Household durables	1.24
Household products	0.54
Independent power and renewable electricity producers	0.67
Industrial conglomerates	1.55
Insurance	2.18
Internet software & services	7.87
IT services	2.41
Machinery	0.57
Media	1.18
Metals & mining	2.14

Common stocks—(concluded)
Multi-utilities	0.30	%
Multiline retail	0.82
Oil, gas & consumable fuels	5.64
Paper & forest products	0.76
Personal products	0.52
Pharmaceuticals	0.98
Real estate management & development	1.19
Semiconductors & semiconductor equipment	5.30
Specialty retail	0.43
Technology hardware, storage & peripherals	7.00
Thrifts & mortgage finance	2.25
Tobacco	0.24
Transportation infrastructure	2.20
Wireless telecommunication services	3.16
Total common stocks	95.17
Preferred stocks
Automobiles	0.07
Banks	1.17
Metals & mining	0.07
Oil, gas & consumable fuels	0.58
Paper & forest products	0.58
Total preferred stocks	2.47
Warrant	0.00	†
Investment company	0.47
Repurchase agreement	0.86
Investment of cash collateral from securities loaned	0.85
Total investments	99.82
Other assets in excess of liabilities	0.18
Net assets	100.00	%

^†  Weighting represents less than 0.005% of the Portfolio's net assets as of July 31, 2017.

209

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—95.17%
Bermuda—1.97%
Brilliance China Automotive Holdings Ltd.		1,164,000	$	2,947,703
Credicorp Ltd.		20,663		3,825,548
Nine Dragons Paper Holdings Ltd.		1,026,000		1,528,991
Sihuan Pharmaceutical Holdings Group Ltd.		2,184,000		919,926
Total Bermuda common stocks				9,222,168
Brazil—4.61%
AMBEV SA, ADR		464,669		2,825,188
Atacadao Distribuicao Comercio e Industria Ltda*		276,100		1,340,502
B3 SA—Brasil Bolsa Balcao		261,200	��	1,716,288
Banco Bradesco SA		126,190		1,220,077
Banco do Brasil SA		78,400		721,561
BB Seguridade Participacoes SA		142,000		1,249,988
Cielo SA		394,096		3,298,509
Companhia de Concessoes Rodoviarias (CCR)		814,245		4,459,828
Hypermarcas SA		133,400		1,197,385
Itau Unibanco Holdings SA, ADR		60,600		721,746
Raia Drogasil SA		70,600		1,562,172
Ultrapar Participacoes SA		53,400		1,267,209
Total Brazil common stocks				21,580,453
Cayman Islands—10.74%
Alibaba Group Holding Ltd., ADR*		84,122		13,034,704
China State Construction International Holdings Ltd.		556,000		898,336
Ctrip.com International Ltd., ADR*		39,362		2,351,092
ENN Energy Holdings Ltd.		211,000		1,433,086
Geely Automobile Holdings Ltd.		670,000		1,549,163
Golden Eagle Retail Group Ltd.1		583,000		753,866
Hengan International Group Co. Ltd.		161,000		1,228,504
Longfor Properties Co. Ltd.		593,000		1,489,561
NetEase, Inc., ADR		6,487		2,019,273
Sands China Ltd.		472,400		2,192,413
TAL Education Group, ADR		10,737		1,683,239
Tencent Holdings Ltd.		411,900		16,527,047
Want Want China Holdings Ltd.1		1,432,000		968,014
WH Group Ltd.2		4,427,000		4,154,493
Total Cayman Islands common stocks				50,282,791
Chile—0.34%
Sociedad Quimica y Minera de Chile SA, ADR		39,190		1,611,101
China—8.34%
Agricultural Bank of China Ltd., Class H		3,502,000		1,636,491
Anhui Conch Cement Co. Ltd., Class H		386,500		1,430,052
Bank of China Ltd., Class H		5,064,000		2,496,082
China Bluechemical Ltd., Class H		2,142,000		603,319
China Construction Bank Corp., Class H		9,333,000		7,766,746
China Pacific Insurance (Group) Co. Ltd., Class H		271,400		1,198,763
China Railway Group Ltd., Class H		1,234,000		982,675
China Shenhua Energy Co. Ltd., Class H		634,000		1,579,562
China Vanke Co. Ltd., Class H		451,000		1,330,920
Chongqing Rural Commercial Bank Co. Ltd., Class H		1,144,000		843,632
Dongfeng Motor Group Co. Ltd., Class H		2,198,000		2,693,048
Guangzhou Automobile Group Co. Ltd. Class H		660,000		1,417,883
Guangzhou R&F Properties Co. Ltd., Class H		661,600		1,182,457
Industrial & Commercial Bank of China Ltd., Class H		6,542,000		4,581,444
Jiangsu Expressway Co. Ltd., Class H		914,000		1,326,978

	Number of shares		Value
Common stocks—(continued)
China—(concluded)
Ping An Insurance (Group) Co. of China Ltd., Class H		589,500	$	4,373,627
Shanghai Pharmaceuticals Holding Co. Ltd.		391,200		1,036,749
Sinopec Shanghai Petrochemical Co. Ltd., Class H		1,540,000		875,403
Sinopharm Group Co., Class H		202,400		848,645
Travelsky Technology Ltd., Class H		318,000		842,756
Total China common stocks				39,047,232
Hong Kong—2.95%
China Mobile Ltd.		594,000		6,369,066
China Resources Power Holdings Co. Ltd.		1,638,911		3,126,411
CITIC Ltd.		847,000		1,288,262
CNOOC Ltd.		366,000		409,541
CSPC Pharmaceutical Group Ltd.		1,344,000		2,095,806
Sun Art Retail Group Ltd.		652,500		532,138
Total Hong Kong common stocks				13,821,224
Hungary—0.89%
OTP Bank PLC		86,473		3,218,582
Richter Gedeon Nyrt		37,902		970,251
Total Hungary common stocks				4,188,833
India—11.77%
Asian Paints Ltd.		101,382		1,835,903
Bajaj Auto Ltd.		90,920		3,980,489
Ceat Ltd.		43,545		1,274,184
Eicher Motors Ltd.		3,707		1,738,252
HCL Technologies Ltd.		338,148		4,706,570
HDFC Bank Ltd.		132,609		3,688,588
HDFC Bank Ltd., ADR		2,285		221,142
Hero Honda Motors Ltd.		16,182		922,154
Hindustan Petroleum Corp. Ltd.		274,747		1,641,169
Hindustan Unilever Ltd.		72,256		1,301,765
Housing Development Finance Corp.		212,275		5,920,587
Indiabulls Housing Finance Ltd.		251,466		4,606,854
IndusInd Bank Ltd.		80,337		2,060,983
Infosys Ltd.		70,541		1,111,920
Infosys Ltd., ADR1		84,915		1,341,657
Larsen & Toubro Ltd.		74,212		1,381,195
Maruti Suzuki India Ltd.		40,319		4,870,899
MRF Ltd.		1,163		1,254,506
Oil & Natural Gas Corp. Ltd.		374,317		988,434
Power Grid Corp. of India Ltd.		214,747		747,499
Reliance Industries Ltd.		87,337		2,198,971
Tata Motors Ltd.*		131,434		910,903
Tata Steel Ltd.		153,691		1,358,636
Vedanta Ltd.		911,112		3,974,586
Zee Entertainment Enterprises Ltd.		124,128		1,048,247
Total India common stocks				55,086,093
Indonesia—2.48%
PT Astra International Tbk		1,830,000		1,095,335
PT Bank Central Asia Tbk		1,068,800		1,500,042
PT Bank Rakyat Indonesia (Persero) Tbk		3,355,000		3,720,364
Telekomunikasi Indonesia Persero Tbk PT		11,587,400		4,078,723
Unilever Indonesia Tbk PT		332,500		1,221,546
Total Indonesia common stocks				11,616,010

210

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Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Kazakhstan—0.12%
KazMunaiGas Exploration Production, GDR3		30,021	$	292,705
KazMunaiGas Exploration Production, GDR4		28,996		282,711
Total Kazakhstan common stocks				575,416
Malaysia—2.84%
AMMB Holdings Berhad		1,263,700		1,461,010
CIMB Group Holdings Berhad		872,900		1,335,395
Genting Malaysia Berhad		1,315,900		1,844,074
Malayan Banking Berhad		1,122,463		2,501,062
Public Bank Berhad		409,000		1,937,293
Sime Darby Berhad		484,200		1,068,712
Tenaga Nasional Berhad		954,900		3,149,174
Total Malaysia common stocks				13,296,720
Mexico—3.45%
Arca Continental SAB de C.V.		121,456		902,946
Cemex SAB de C.V., ADR*		131,943		1,281,167
Fibra Uno Administracion SA de C.V.		1,928,100		3,592,477
Fomento Economico Mexicano SAB de C.V., ADR		21,087		2,127,257
Gentera SAB de C.V.		399,900		606,505
Grupo Aeroportuario del Pacifico SAB de C.V.		96,565		1,104,809
Grupo Aeroportuario del Sureste SAB de C.V., Class B		46,893		997,021
Grupo Financiero Banorte SAB de C.V., Series O		359,600		2,383,328
Grupo Financiero Santander Mexico SAB de C.V., Class B, ADR		94,800		972,648
Wal-Mart de Mexico SAB de C.V.		946,427		2,190,299
Total Mexico common stocks				16,158,457
Netherlands—0.34%
Yandex N.V.*		54,493		1,579,207
Philippines—0.38%
PLDT, Inc., ADR		54,650		1,774,486
Poland—0.46%
Polska Grupa Energetyczna SA		232,657		847,614
Polski Koncern Naftowy Orlen SA		43,677		1,291,816
				2,139,430
Qatar—0.55%
Qatar Electricity & Water Co.		26,184		1,417,528
Qatar National Bank		30,144		1,142,587
Total Qatar common stocks				2,560,115
Romania—0.11%
Societatea Nationala de Gaze Naturale ROMGAZ SA, GDR5		71,870		517,464
Russia—2.49%
Gazprom PAO, ADR4		369,439		1,437,118
Gazprom PAO, ADR3		886,459		3,466,055
Lukoil PJSC, ADR4		38,788		1,828,466
Lukoil PJSC, ADR3		22,630		1,053,879
Magnit PJSC, GDR		34,432		1,263,654
MMC Norilsk Nickel PJSC, ADR		41,006		608,324
Severstal PJSC, GDR		60,480		830,995
Tatneft PJSC, ADR		30,167		1,163,843
Total Russia common stocks				11,652,334

	Number of shares			Value
Common stocks—(continued)
South Africa—6.72%
AVI Ltd.		113,487		$	843,914
Barclays Africa Group Ltd.1		185,357			2,033,776
Bid Corp. Ltd.		129,160			3,100,330
Capitec Bank Holdings Ltd.		17,162			1,119,660
FirstRand Ltd.		508,246			2,000,010
Growthpoint Properties Ltd.		550,784			1,035,639
Imperial Holdings Ltd.1		69,759			920,186
Mondi Ltd.		41,217			1,070,242
Naspers Ltd., N Shares		20,321			4,484,767
Redefine Properties Ltd.		2,028,499			1,657,740
Sappi Ltd.		145,036			960,872
Sasol Ltd.		71,985			2,168,549
Shoprite Holdings Ltd.1		70,061			1,072,173
Standard Bank Group Ltd.		128,261			1,593,488
The Bidvest Group Ltd.		180,075			2,291,323
The Foschini Group Ltd.		83,702			963,426
Tiger Brands Ltd.		34,397			1,042,709
Woolworths Holdings Ltd.		645,233			3,084,487
Total South Africa common stocks					31,443,291
South Korea—14.39%
Coway Co. Ltd.		37,913			3,357,471
Dongbu Insurance Co. Ltd.		15,173			1,086,062
Doosan Infracore Co. Ltd.*		126,907			914,052
Hankook Tire Co. Ltd.		34,600			1,932,443
Hyosung Corp.		9,643			1,443,369
Hyundai Development Co-Engineering & Construction		22,914			873,314
Hyundai Marine & Fire Insurance Co. Ltd.		26,062			1,057,339
Hyundai Mobis Co. Ltd.		9,769			2,147,513
Kangwon Land, Inc.		45,128			1,492,101
KB Financial Group, Inc.		31,059			1,648,635
Korea Electric Power Corp. (KEPCO)		57,700			2,297,069
KT&G Corp.		10,803			1,100,525
LG Chem Ltd.		3,579			1,049,026
LG Display Co. Ltd.		46,315			1,309,923
LG Electronics, Inc.		25,441			1,525,482
LG Uplus Corp.		82,184			1,222,790
NAVER Corp.		2,767			1,985,524
Samsung Electronics Co. Ltd.		10,897			23,467,915
Samsung Fire & Marine Insurance Co. Ltd.		4,669			1,218,308
Shinhan Financial Group Co. Ltd.		173,784			8,261,748
SK Innovation Co. Ltd.		7,989			1,260,050
SK Telecom Co. Ltd.		17,454			4,336,010
Woori Bank		103,713			1,770,179
Yuhan Corp.		2,786			588,793
Total South Korea common stocks					67,345,641
Taiwan—11.49%
Asustek Computer, Inc.		184,000			1,712,308
Catcher Technology Co. Ltd.		187,000			2,148,963
Chinatrust Financial Holding Co. Ltd.		2,198,934			1,412,771
Compal Electronics, Inc.		1,354,000			899,064
Far EasTone Telecommunications Co. Ltd.		407,000			983,954
Formosa Chemicals & Fibre Corp.		377,000	��		1,136,163
Formosa Plastics Corp.		404,000			1,212,181
HON Hai Precision Industry Co. Ltd.		1,049,256			4,082,979

211

PACE International Emerging Markets Equity Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(concluded)
Taiwan—(concluded)
Innolux Corp.		3,676,000	$	1,795,665
Largan Precision Co. Ltd.		11,000		2,007,253
MediaTek, Inc.		276,000		2,431,356
Mega Financial Holding Co. Ltd.		2,142,118		1,812,559
Nan Ya Plastics Corp.		474,000		1,193,025
Nanya Technology Corp.		655,000		1,353,579
Novatek Microelectronics Corp.		318,000		1,211,108
Pegatron Corp.		322,000		1,051,455
Phison Electronics Corp.		79,000		1,098,839
Powertech Technology, Inc.*		324,000		1,050,474
President Chain Store Corp.		193,000		1,636,270
Quanta Computer, Inc.		937,000		2,221,828
Taiwan Mobile Co. Ltd.		369,000		1,319,799
Taiwan Semiconductor Manufacturing Co. Ltd.		1,615,156		11,473,596
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		171,897		6,181,416
Teco Electric and Machinery Co. Ltd.		1,138,000		1,072,216
Wistron Corp.		1,264,570		1,277,322
Total Taiwan common stocks				53,776,143
Thailand—2.43%
Airports of Thailand PCL		1,560,200		2,402,904
Beauty Community PCL, NVDR1		2,948,200		1,054,305
CP ALL PCL		1,142,400		2,085,580
Kasikornbank Public Co. Ltd., NVDR		361,900		2,093,542
PTT PCL, NVDR		112,200		1,308,239
Thai Oil PCL, NVDR		413,300		1,065,030
Thai Union Group PCL		2,254,300		1,375,213
Total Thailand common stocks				11,384,813
Turkey—3.72%
Akbank T.A.S.		537,903		1,598,723
Arcelik A.S.		123,997		916,056
BIM Birlesik Magazalar A.S.		52,904		1,031,217
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.*		1,040,038		939,753
Eregli Demir ve Celik Fabrikalari TAS		1,455,523		3,242,445
Koc Holding A.S.		563,517		2,622,760
Tupras-Turkiye Petrol Rafinerileri A.S.		38,723		1,192,713
Turk Telekomunikasyon A.S.*		627,482		1,292,638
Turkiye Garanti Bankasi A.S.		903,085		2,704,623
Turkiye Halk Bankasi AS		433,697		1,859,573
Total Turkey common stocks				17,400,501
United Arab Emirates—0.80%
Emaar Properties PJSC		694,430		1,557,861
National Bank of Abu Dhabi PJSC		748,680		2,170,796
Total United Arab Emirates common stocks				3,728,657
United States—0.79%
MercadoLibre, Inc.		5,947		1,715,234
Yum China Holdings, Inc.*		55,925		2,001,556
Total United States common stocks				3,716,790
Total common stocks (cost—$374,778,231)				445,505,370

	Number of shares		Value
Preferred stocks—2.47%
Brazil—2.32%
Itau Unibanco Holding SA		426,583	$	5,105,289
Itausa—Investimentos Itau SA		122,100		362,187
Petroleo Brasileiro SA, ADR*		633,200		2,698,615
Suzano Papel e Celulose SA		604,000		2,715,564
Total Brazil preferred stocks				10,881,655
India—0.07%
Vedanta Ltd.6		22,056,160		343,815
South Korea—0.08%
Hyundai Motor Co.		3,686		349,150
Total preferred stocks (cost—$10,607,338)				11,574,620
	Number of warrants
Warrant—0.00%†
Thailand—0.00%†
Jasmine International PCL, strike price $4.30, expires 07/05/20* (cost—$0)		1		0
	Number of shares
Investment company—0.47%
iShares MSCI Emerging Markets Index Fund (cost—$2,093,271)		50,379		2,206,600
	Face amount
Repurchase agreement—0.86%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $3,942,076 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$4,105,500); proceeds: $4,025,006 (cost—$4,025,000)	$	4,025,000		4,025,000
	Number of shares
Investment of cash collateral from securities loaned—0.85%
Money market fund—0.85%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$3,980,781)		3,980,781		3,980,781
Total investments (cost—$395,484,621)—99.82%				467,292,371
Other assets in excess of liabilities—0.18%				838,833
Net assets—100.00%			$	468,131,204

212

PACE International Emerging Markets Equity Investments

Portfolio of investments—July 31, 2017

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes was $399,003,381; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	85,492,383
Gross unrealized depreciation		(17,203,393	)
Net unrealized appreciation	$	68,288,990

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	445,505,370	$	—	$	—	$	445,505,370
Preferred stocks		11,230,805		343,815		—		11,574,620
Warrant		—		—		—		—
Investment company		2,206,600		—		—		2,206,600
Repurchase agreement		—		4,025,000		—		4,025,000
Investment of cash collateral from securities loaned		—		3,980,781		—		3,980,781
Total	$	458,942,775	$	8,349,596	$	—	$	467,292,371

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

*  Non-income producing security.

^†  Amount represents less than 0.005%

¹  Security, or portion thereof, was on loan at the period end.

²  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

³  Security is traded on the Turquoise Exchange.

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

⁵  Illiquid investment at the period end.

⁶  Security is being fair valued by a valuation committee under the direction of the board of trustees.

See accompanying notes to financial statements.
213

PACE Global Real Estate Securities Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 0.19% before the deduction of the maximum PACE Select program fee.¹ In comparison, the FTSE EPRA/NAREIT Developed Index (the "benchmark") returned -1.93%, while the Lipper Global Real Estate Funds category posted a median return of -1.81%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 216. 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 3.

Advisor's comments (Unaudited)²

The Portfolio outperformed the benchmark during the reporting period. By sector, industrials was the leading contributor to performance, driven by stock selection. A combination of stock selection and overweight exposure within the office sector also contributed to returns, as did stock selection and underweight exposure to net lease. Conversely, health care was the leading detractor from performance due to stock selection and underweight exposure. Data centers and self-storage also detracted, both driven by stock selection.

The leading regional contributors to performance during the reporting period were Singapore and China/Hong Kong, both due to stock selection and overweight allocations. Stock selection and underweight exposure in the US also contributed to relative returns. Conversely, stock selection within the UK was the leading detractor from results. An underweight exposure in Continental Europe was also negative for returns.

Non-benchmark holding Global Logistic Properties Limited (industrial, Singapore) was the leading contributor to performance during the reporting period, as the stock performed well due to talks of privatization. In July 2017, the company accepted a takeover offer from a management-backed Chinese investment consortium. Overweight positions in Wharf (Holdings) Ltd. (diversified, Hong Kong) and Hongkong Land Holdings Limited (office, Hong Kong) also contributed to performance, as Hong Kong stocks rallied meaningfully during the reporting period. Conversely, overweight positions in Simon Property Group, Inc. (retail, US) and Brixmor Property Group, Inc. (retail, US) were among the leading detractors from results. Non-benchmark holding Brookdale Senior Living Inc. (health care, US) was also negative for relative performance. We closed our position in Brookdale Senior Living prior to the end of the reporting period as we are concerned over potential oversupply in this market. With the exception of Brookdale Senior Living, we continue to hold the aforementioned companies as of the end of the reporting period.

The Portfolio did not use derivatives during the reporting period.

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

PACE Select Advisors Trust –
PACE Global Real Estate Securities Investments

Investment Manager:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisor:

Brookfield Investment Management Inc. ("Brookfield")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Gina Toth, CFA, Fred Lee, CFA and Diana To

Brookfield: Jason Baine and Bernhard Krieg

Objective:

Total Return

Investment process:

The Portfolio 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. The Portfolio utilizes a fundamental, bottom-up, value-based stock selection methodology.

214

PACE Global Real Estate Securities Investments

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 markets 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.

215

PACE Global Real Estate Securities Investments

Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years			Since inception1
Before deducting maximum sales charge
Class A2		(0.15	)%		7.64	%		1.49	%		1.15	%
Class C3		(0.96	)		6.85			0.72			0.37
Class Y4		0.08			7.86			N/A			11.12
Class P5		0.19			7.94			1.75			0.98
After deducting maximum sales charge
Class A2		(5.68	)		6.44			0.91			0.61
Class C3		(1.92	)		6.85			0.72			0.37
FTSE EPRA/NAREIT Developed Index6		(1.93	)		8.00			3.48			2.79
Lipper Global Real Estate Funds median		(1.81	)		7.27			2.95			1.83

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years			Since inception1
Before deducting maximum sales charge
Class A2		3.99	%		7.94	%		0.90	%		1.03	%
Class C3		3.19			7.13			0.14			0.25
Class Y4		4.24			8.17			N/A			11.08
Class P5		4.21			8.19			1.16			0.86
After deducting maximum sales charge
Class A2		(1.70	)		6.73			0.33			0.49
Class C3		2.20			7.13			0.14			0.25

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—1.65% and 1.45%; Class C—2.26% and 2.20%; Class Y—1.50% and 1.20%; and Class P—1.59% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, 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 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 and that UBS AM has not waived the right to do so. 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 AM. Upon termination of the agreement, however, UBS 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 of 0.25% annually.

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 of 0.25% and 0.75% annually, respectively.

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 Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

⁶  The FTSE EPRA/NAREIT Developed Index is designed to measure the stock performance of companies engaged in special real estate activities of the North American, European and Asian real estate markets. Relevant real estate activities are defined as the ownership, trading and development of income-producing real estate. Investors should note that indices do not reflect the deduction of fees and expenses.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

216

PACE Global Real Estate Securities 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 Global Real Estate Securities Investments Class P shares versus the FTSE EPRA/NAREIT Developed Index over the 10 years ended July 31, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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 is unmanaged. The comparison is shown for illustration purposes only.

PACE Global Real Estate Securities Investments

*  The performance graph has been changed from Class A to Class P as Class P shares hold the most assets out of the Portfolio.

217

PACE Global Real Estate Securities Investments

Portfolio statistics—July 31, 2017 (unaudited)

Top ten equity holdings1	Percentage of net assets
Simon Property Group, Inc.		7.4	%
Mitsubishi Estate Co. Ltd.		4.7
Land Securities Group PLC		4.1
Mitsui Fudosan Co. Ltd.		3.9
Crown Castle International Corp.		3.3
Prologis, Inc.		3.1
Duke Realty Corp.		2.9
Hammerson PLC		2.7
Great Portland Estates PLC		2.6
American Homes 4 Rent, Class A		2.6
Total		37.3	%
Top five issuer breakdown by country or territory of origin1	Percentage of net assets
United States		54.0	%
United Kingdom		12.5
Japan		11.0
Australia		5.0
Germany		4.1
Total		86.6	%

¹  The Portfolio is actively managed and its composition will vary over time.

218

PACE Global Real Estate Securities Investments

Industry diversification—(unaudited)

As a percentage of net assets as of July 31, 2017

Common stocks
Apartments	7.22	%
Diversified	25.38
Diversified operations	1.40
Health care	2.21
Hotels	5.25
Hotels & motels	1.61
Office property	12.70
Real estate management/service	9.30
Real estate operations/development	10.63
Regional malls	9.06
Shopping centers	7.53
Storage	2.31
Warehouse/industrial	5.40
Total common stocks	100.00
Repurchase agreement	0.62
Investment of cash collateral from securities loaned	1.76
Total investments	102.38
Liabilities in excess of other assets	(2.38	)
Net assets	100.00	%

219

PACE Global Real Estate Securities Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—100.00%
Australia—4.96%
Dexus		276,596	$	2,075,577
The GPT Group		383,600		1,469,955
Westfield Corp.		562,000		3,452,928
Total Australia common stocks				6,998,460
Bermuda—2.44%
Hongkong Land Holdings Ltd.		458,300		3,446,416
Cayman Islands—1.53%
Soho China Ltd.*		3,962,300		2,161,033
Germany—4.09%
Alstria Office REIT-AG		196,492		2,883,168
Vonovia SE		71,215		2,887,845
Total Germany common stocks				5,771,013
Hong Kong—1.40%
Wharf (Holdings) Ltd.		232,256		1,975,907
Italy—0.76%
Beni Stabili SpA		1,332,900		1,065,074
Japan—11.01%
Hulic Reit, Inc.		411		647,564
LaSalle Logiport REIT		150		150,891
Leopalace21 Corp.		241,517		1,724,104
Mitsubishi Estate Co. Ltd.		363,089		6,606,708
Mitsui Fudosan Co. Ltd.		241,800		5,558,911
Nippon Accommodations Fund, Inc.		201		835,031
Total Japan common stocks				15,523,209
Luxembourg—1.49%
Grand City Properties SA		101,300		2,099,781
Netherlands—0.76%
Eurocommercial Properties N.V.		26,500		1,072,408
Singapore—3.17%
Ascendas Real Estate Investment Trust		1,101,600		2,194,827
City Developments Ltd.		273,300		2,270,862
Total Singapore common stocks				4,465,689
Spain—2.14%
Merlin Properties Socimi SA		223,600		3,012,261
United Kingdom—12.48%
Derwent London PLC		84,900		3,190,247
Great Portland Estates PLC		456,219		3,623,652
Hammerson PLC		509,785		3,864,148
Land Securities Group PLC		427,000		5,752,150
Tritax Big Box REIT PLC		592,200		1,170,461
Total United Kingdom common stocks				17,600,658
United States—53.77%
American Campus Communities, Inc.		59,700		2,862,018
American Homes 4 Rent, Class A		157,000		3,612,570
Brixmor Property Group, Inc.		131,700		2,580,003
CBL & Associates Properties, Inc.1		265,888		2,337,156
Crown Castle International Corp.		46,100		4,636,738

	Number of shares		Value
Common stocks—(concluded)
United States—(concluded)
DDR Corp.		232,000	$	2,364,080
Duke Realty Corp.		141,700		4,051,203
Essex Property Trust, Inc.		11,000		2,878,700
Federal Realty Investment Trust		16,700		2,214,921
Gramercy Property Trust1		97,100		2,934,362
Hersha Hospitality Trust		71,800		1,346,968
Hudson Pacific Properties, Inc.		93,000		3,042,960
Kilroy Realty Corp.		50,400		3,498,264
LaSalle Hotel Properties1		49,000		1,447,460
Life Storage, Inc.		3,500		255,640
MGM Growth Properties LLC, Class A1		49,700		1,487,521
Mid-America Apartment Communities, Inc.		34,800		3,602,844
OMEGA Healthcare Investors, Inc.1		31,498		995,022
Park Hotels & Resorts, Inc.		116,022		3,124,472
Prologis, Inc.		71,000		4,317,510
Public Storage		14,600		3,001,322
QTS Realty Trust, Inc., Class A		39,800		2,128,106
Simon Property Group, Inc.		65,891		10,443,723
SL Green Realty Corp.		30,500		3,149,735
STAG Industrial, Inc.		50,700		1,383,603
Welltower, Inc.		28,800		2,113,632
Total United States common stocks				75,810,533
Total common stocks (cost—$141,297,017)				141,002,442
	Face amount
Repurchase agreement—0.62%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $855,014 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$890,460); proceeds: $873,001 (cost—$873,000)	$	873,000		873,000
	Number of shares
Investment of cash collateral from securities loaned—1.76%
Money market fund—1.76%
State Street Navigator Securities Lending Government Money Market Portfolio (cost—$2,478,451)		2,478,451		2,478,451
Total investments (cost—$144,648,468)—102.38%				144,353,893
Liabilities in excess of other assets—(2.38)%				(3,352,494	)
Net assets—100.00%			$	141,001,399

220

PACE Global Real Estate Securities Investments

Portfolio of investments—July 31, 2017

For a listing of defined portfolio acronyms that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes was $147,478,562; and net unrealized depreciation consisted of:

Gross unrealized appreciation	$	4,665,467
Gross unrealized depreciation		(7,790,136	)
Net unrealized depreciation	$	(3,124,669	)

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments.

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	141,002,442	$	—	$	—	$	141,002,442
Repurchase agreement		—		873,000		—		873,000
Investment of cash collateral from securities loaned		—		2,478,451		—		2,478,451
Total	$	141,002,442	$	3,351,451	$	—	$	144,353,893

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

*  Non-income producing security.

¹  Security, or portion thereof, was on loan at the period end.

See accompanying notes to financial statements.
221

PACE Alternative Strategies Investments

Performance (Unaudited)

For the 12 months ended July 31, 2017, the Portfolio's Class P shares gained 2.41% before the deduction of the maximum PACE Select program fee.¹ In comparison, the Citigroup Three-Month US Treasury Bill Index (the "benchmark") returned 0.51%, the Bloomberg Barclays Global Aggregate Index returned -1.28%, the MSCI World Index (net) returned 16.12%, the HFRI Fund of Funds Composite Index (net) returned 5.98%, and the Lipper Alternative Multi-Strategy Funds category posted a median return of 2.41%. (Returns for all share classes over various time periods are shown in the "Performance at a glance" table on page 229. 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 3.

Special note: On December 19, 2016, Principal Global Investors began serving as a subadvisor for the Portfolio. On September 6, 2017, after the end of the reporting period, Kettle Hill Capital Management, LLC began serving as a subadvisor for the portfolio.

Subadvisors' comments (Unaudited)²

Analytic Investors

Our portion of the Portfolio made a positive contribution to performance during the reporting period. Our portion of the Portfolio consists of long-short equity positions.³ 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.

Overall, characteristic positioning was favorable in all categories except within Revisions (earnings revisions) and Technical (momentum). Specifically, our overweight positioning to Value (earnings to price and sales to price) and underweight positions to Risk (dispersion of analyst earnings estimates) and Growth (market growth) all added value relative to the benchmark. This was slightly offset by an emphasis to Revisions and Technicals, which were not rewarded by investors during the reporting period. An emphasis on low beta stocks negatively impacted performance during the period, as low beta secu-

¹  Class P shares held through the PACE Select Advisors Program are subject to a maximum Program fee of 2.50%, which, if included, would have reduced performance. Class P shares held through other advisory programs also may be subject to a program fee, which, if included, would have reduced performance.

²  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, Portfolio performance is shown net of fees, which does factor in fees and expenses associated with the Portfolio.

³  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.

PACE Select Advisors Trust –
PACE Alternative Strategies Investments

Investment Manager and Subadvisor:

UBS Asset Management (Americas) Inc. ("UBS AM")

Investment Subadvisors:

Analytic Investors, LLC ("Analytic Investors"); First Quadrant L.P. ("First Quadrant"); Standard Life Investments (Corporate Funds) Limited ("Standard Life Investments"); AQR Capital Management, LLC ("AQR"); Sirios Capital Management, L.P. ("Sirios");

Principal Global Investors, LLC d/b/a Macro Currency Group ("MCG");

Aviva Investors Americas, LLC ("Aviva");

PCJ Investment Counsel LTD ("PCJ")

Portfolio Management Team:

UBS AM: Mabel Lung, CFA, Gina Toth, CFA, Fred Lee, CFA, Diana To and Anthony Karaminas

Analytic Investors: Dennis Bein, David Krider and Harindra de Silva;

First Quadrant: Dori Levanoni and Jeppe Ladekarl;

Standard Life Investments: Guy Stern and Roger Sadewsky;

AQR: Clifford Asness, John Liew, Brian Hurst, Yao Hua Ooi and Ari Levine;

MCG: Mark Farrington and Ivan Petej;

Aviva: Peter Fitzgerald, Dan James, Ian Pizer and Brendan Walsh

(continued on next page)

222

PACE Alternative Strategies Investments

Subadvisors' comments (Unaudited) – continued

rities significantly underperformed high beta securities. (Beta is a measure of volatility or risk relative to the market as a whole.)

During the period, the strategy experienced positive results in Asia, as overweights to both Hong Kong and Japan helped results. In addition, stock selection within Japan was particularly strong. While an overweight position to Canada also helped performance, stock selection within the country produced negative results. Sector positioning was a modest drag on performance, led by an underweight position to financials. While an overweight to consumer staples negatively impacted results, an underweight position to energy, coupled with strong stock selection within the sector, helped relative returns.

Some of the top performing equities in our portion of the Portfolio included long positions in Prudential Financial, United Therapeutics and Darden Restaurants. The worst performing positions during the reporting period were long positions in Seagate Technology, CA Technologies and Micron Technology. We continue to hold the aforementioned companies as of the end of the reporting period.

Derivatives were not used during the reporting period.

First Quadrant: Global Macro Strategy

Our portion of the Portfolio generated positive results during the reporting period. The market environment was mixed during the reporting period and began on a quiet note after "Brexit" as market volatility waned. During the late fall and into the holiday season of 2016 the strategy deftly navigated the US election. The investment climate once again changed in 2017 as politically-related macro events caused ripples across markets. Elections in both France and the UK, budding trade conflicts and ongoing uncertainty about potential tax and regulatory reform resulted in notable market moves. Central banks also played a significant role in many markets, with notable shifts in projected monetary policy.

The portfolio benefited from our diversified and multi-factor approach. From an investment insight perspective, each of the major categories (Macroeconomic, Investment Flows and Behavioral Biases) added value. Fair Value, a fundamental macro long-term factor, dominated performance followed by the shorter-term Currency Quality (which looks to traders of currencies to inform, such as momentum or carry) found in the Behavioral Biases set of ideas.

From a currency perspective, our New Zealand dollar, euro, and US dollar positions were the largest contributors to results, while the Canadian dollar and Norwegian krone detracted from performance. As a general rule, derivatives are the primary instrument used to implement our strategy. Specifically, currency forwards are used to gain economic exposure. Overall, the liquidity and low transaction cost of this instrument offers the investment team the ability to be more nimble and to implement our strategy at a lower cost. As derivatives are the primary instrument used to implement our strategy, the

Investment process
(continued)

PCJ: Nereo Piticco, Adam Posman, Aly Alladina, Heiki Altosaar, Bryan Rock and Jenny Yan

UBS AM sleeve: Mabel Lung, Gina Toth and Fred Lee;

Sirios: John F. Brennan, Jr.

Objective:

Long-term capital appreciation

Investment process:

Analytic Investors: The Portfolio 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. The Portfolio's strategy may also employ the use of derivatives, such as swaps, futures, non-deliverable forwards ("NDFs"), and forward contracts.

First Quadrant: The Portfolio employs a top-down macro-driven investment strategy that seeks to identify and profit from changes in the relative strength of countries through exposure to currency markets. The strategy explicitly aims to provide positive returns, low correlation to other investments, and the potential to deliver a right-skewed distribution of returns ("returns when you need them most"). The strategy seeks to profit by exploiting a diverse set of market inefficiencies organized into three broad categories: Macroeconomic, Investment

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Subadvisors' comments (Unaudited) – continued

performance of the strategy over the reporting period is closely correlated with the performance of our derivatives positions.

Standard Life Investments

Our portion of the Portfolio made a positive contribution to performance during the reporting period. The largest contributors to performance during the reporting period were equity-related positions, driven mainly by political developments and central bank monetary policy pronouncements. Rising expectations of stronger fiscal stimulus in the US, receding political risk in Europe and generally strong earnings and positive economic data provided fertile ground for global equities. Our allocations to the US and European equity markets were rewarded. Our US equity banks versus consumer staples strategy delivered strong performance, as sectors such as small-caps and banks rallied during the period. However, this environment was negative for our positions in technology and large-cap versus small-cap. Our US and Europe equity strategies use equity futures and equity options to increase or decrease exposure to the market. Our consumer staples strategy was implemented through an index total return swap. The US equity large-cap versus small-cap was implemented through equity futures, total return swaps and equity options. The US equity tech versus small-cap position was implemented through equity futures and total return swaps.

Volatility in equity markets remained depressed, having reached an all-time low toward the end of the reporting period, as global equity markets maintained an upward trend. Consequently, our long equity variance strategy detracted from performance. This strategy was implemented through variance swaps.

Our UK versus French duration and US real versus nominal steepener relative to interest rates strategies were strong performers. UK gilts outperformed their French counterpart due to sentiment over French elections. Our US real versus nominal steepener strategy⁴ benefited from the higher interest rates and rising inflation expectations that dominated market sentiment soon after the US elections through to the first quarter of 2017. Our Australian forward start interest rates strategy detracted from performance amid bond market weakness. The UK versus French duration strategy was implemented through government bond futures. The nominal leg within the US real versus nominal steepener strategy was implemented through forward start interest rate swaps. The Australian forward start interest rates strategy was implemented through government bond futures and forward start interest rates.

Emerging markets currency exposures were beneficial for results as sentiment for their underlying equity and bond markets turned positive given a general improvement in the economic outlook. The Indian rupee and Korean won benefited from robust foreign investor inflows into their local capital mar-

Investment process
(continued)

⁴  The US Real versus Nominal Steepener strategy seeks to exploit opportunities associated with a return of the inflation premium to the US interest rate curve. The strategy is designed to benefit from a decline in real rates, particularly those at the short end of the curve, and an increase in long term nominal interest rates when inflation expectations start moving away from the current subdued levels.

Flows, and Behavioral Biases. We evaluate each individual market against all others based on these fundamental investment ideas.

Standard Life Investments: The Portfolio 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. The Portfolio 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. The Portfolio 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.

AQR: The Portfolio employs a Managed Futures strategy, which is an active trend-following strategy. Trend-following involves going long assets that have been rising in price and short assets that have been declining in price. The managed futures strategy is primarily implemented through the use of derivatives and invests across three major asset classes: equities,

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Subadvisors' comments (Unaudited) – continued

kets. Consequently, our long Indian rupee versus Swiss franc position delivered positive returns, while our long Japanese yen versus Korean won currency pair detracted from performance. Currency strategies are implemented using foreign exchange forwards.

We use derivatives extensively to implement our fundamental strategy, seeking to ensure that a wide range of diverse sources of return are accessible at all times. As such, their overall impact on performance is varied and linked to the strategies within which they are implemented.

AQR

Our managed futures strategy is an active trend-following strategy that employs a diverse portfolio of derivative instruments (primarily futures, swaps and forwards) to achieve exposure to various global markets. Our strategy generated a negative absolute return during the reporting period. By signal horizon, reversals in long-term trends drove losses, while short-term and over-extended signals contributed to results. Fixed income and currencies detracted from performance, with losses driven by reversals across both markets. Equities contributed to performance, with gains driven by sustained bullish trends.

The strategy entered the reporting period positioned long fixed income markets on relative agreement between short-term and long-term signals. In currencies, the strategy began the reporting period long the Japanese yen versus the US dollar. In equities, the strategy entered the reporting period net long, driven mostly by short-term signals. The reporting period began in the aftermath of the "Brexit" vote, with markets exhibiting heightened risk aversion. Against this backdrop, longer-term trends favored bullish fixed income and the Japanese yen. These trends reversed over the second half of 2016, and sharply after the US election, driving losses. Newer bearish fixed income and bullish US dollar trends then reversed in the first half of 2017, causing additional losses. The bullish equity trends that began at the start of the reporting period exhibited a meaningful reversal leading up to the US election, but continued thereafter, with trends in equities contributing to performance throughout most of the period. The strategy ended the reporting period long equities on agreement between short-term and long-term signals. In fixed income, the strategy ended the reporting period net short with long-term signals driving positioning. In currencies, the strategy ended the reporting period notably short the US dollar and Japanese yen, on agreement between short-term and long-term signals.

Most positions in the strategy are implemented through derivative instruments, as we believe derivatives offer the most liquid, lowest cost and efficient way to gain diversified exposure across asset classes. The strategy uses global developed and emerging markets exchange traded futures, futures-related instruments, forward contracts and swaps across equities, fixed income and currencies. The strategy is, with the exception of cash holdings, exclusively implemented via derivative instruments. As a result, performance of the strategy is primarily driven by the performance of derivatives-based positions.

Investment process
(continued)

fixed income and currencies. The Portfolio's Managed Futures strategy seeks to generate returns that are uncorrelated to traditional asset classes and may improve portfolio diversification.

UBS AM: The Portfolio allocates a portion of the fund's assets primarily to unaffiliated actively- and passively-managed pooled investment vehicles, including ETFs, that it believes are suitable for return generation, risk management (e.g., increased portfolio diversification), or both. In addition, UBS AM may invest in index futures primarily for cash management (i.e., to obtain certain market exposures in the fund and reduce cash holdings) and risk management purposes. UBS AM generally invests in other unaffiliated pooled investment vehicles and index futures that have risk and return objectives that are deemed to be complementary to the other investments and strategies within the fund overall.

Sirios Capital Management: The Portfolio employs a fundamental, bottom-up, long/short strategy that is focused primarily on U.S. equities. For long positions, the investment team concentrates on mid/large cap companies where we see unrecognized growth over a 3-5 year period and a favorable valuation. The short positions generally include a selection of liquid large cap companies,

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Subadvisors' comments (Unaudited) – continued

UBS Asset Management

Our portion of the Portfolio detracted from performance during the reporting period. During the reporting period, our portion of the Portfolio was invested in three third-party funds: Scout Unconstrained Bond Fund, AQR Style Premia Alternative Fund and Natixis ASG Managed Futures Strategy. We underperformed our benchmark, primarily driven by Natixis ASG Managed Futures. In contrast, our holdings in Scout Unconstrained Bond Fund and AQR Style Premia Alternative Fund contributed to returns.

Natixis ASG Managed Futures Strategy, a trend-following strategy, was negatively impacted, particularly between August through October 2016, due to choppy markets across all asset classes. Choppy markets tend to be challenging for trend-following strategies since there is not enough time to establish a steady trend before a reversal. In general, both short- and longer-term trend signals failed to add value, although longer-term trends performed better. Positions in commodities, currencies and fixed income detracted the most from results. Equities provided some positive returns, but were an insufficient offset.

AQR Style Premia Alternative Fund contributed to returns, primarily through exposure to the value factor, particularly in equities. Exposure to defensive, carry and momentum style factors, however, detracted from performance. Stocks and industries, fixed income and equity indices were the largest contributors by asset group, with currencies and commodities being the primary detractors from performance. Scout Unconstrained Bond Fund also added value over the reporting period, primarily through active duration positioning and modest credit exposure.

We did not use derivatives during the reporting period.

Sirios Capital Management

Our portion of the Portfolio made a positive contribution to performance and outperformed the HFRX Equity Hedge Index ("Index") during the reporting period. We outperformed the Index in seven of the 12 months during the period (August, November and December 2016, and January, February, May and June 2017) and underperformed the remaining five months (September and October 2016 and March, April and July 2017). Long positions contributed to absolute performance, while short positions detracted from performance during the period. The technology/telecommunications, financials/real estate and consumer sectors were the most significant contributors to gross performance, while the health care and energy/industrials sectors detracted from performance.

The most significant individual long contributors to performance were Bank of America, Western Digital, Sherwin-Williams, NetApp and Time Warner, Inc. Our long position in Time Warner, Inc. was sold as the arbitrage spread began to close versus the approximately $106 offer price made by AT&T (based on AT&T's trading price). The most significant individual long detractors were Allergan, Bristol Myers Squibb, Nabors Industries, JCDecaux, and Acadia Healthcare. Our long position in Allergan was sold during the fourth

Investment process
(concluded)

sector hedges and index put options.

Aviva Investors employs a "global unconstrained multistrategy" approach and seeks to deliver positive returns over rolling three year periods by identifying investment ideas and opportunities across and within asset classes. After evaluating these ideas, the Portfolio decides how to implement a select number of them in investment strategies within the portfolio in light of the fund's objectives. Aviva Investors believes multi-strategy investing provides many ways to reflect ideas more precisely than is possible in traditional funds.

PCJ follows a bottom-up fundamental, independent research process that focuses on high conviction ideas and seeks to extract alpha from long and short positions. The fund invests in Canadian and US listed securities diversified across sectors and market capitalizations to seek to construct a market neutral, absolute return strategy with low volatility and correlation to broader markets within a disciplined risk management framework.

MCG identifies investment opportunities through the application of both quantitative and qualitative approaches. Both approaches utilize non-deliverable currency forwards as part of the Portfolio's investment strategy.

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Subadvisors' comments (Unaudited) – continued

quarter of 2016 on the expectation that it would lose exclusivity earlier than previously expected on several drugs. In addition, we anticipated disappointing sales trends in the company's legacy products. Our long position in Bristol Myers Squibb was sold during the fourth quarter of 2016 based on a reassessment of the company's earnings power in response to the failure of its pivotal first line lung cancer trial. Our long position in JCDecaux was sold during the fourth quarter of 2016 after advertising in China turned down and the "Brexit" vote stalled growth in Europe, its largest market. Our long position in Acadia Healthcare was sold during the fourth quarter of 2016 due to concerns of moderating in-patient psychiatric demand trends, combined with high financial leverage. Nabors Industries remained a position in our portion of the Portfolio as of period-end.

We had net exposure of 66% as of July 31, 2017, with a focus on US domestically-driven companies. Net exposure was balanced across the energy/industrials (+19%), technology/telecommunications (+18%), financials/real estate (+15%), consumer (+11%), and health care (+11%) sectors. The ten largest long positions were Sherwin-Williams, Becton Dickinson, Bank of America, FedEx, J.P. Morgan, Airbus, NetApp, Cognizant Technology, Nuance Communications and C.R. Bard.

We generally use forward currency contracts to hedge the currency exposure on non-US positions. The currency hedges did not contribute meaningfully to our performance during the reporting period.

Aviva Investors

Our portion of the Portfolio generated a positive absolute return during the reporting period. Results over the period were driven by our positioning for a reflationary market environment, distinguished by greater economic growth and moderately higher inflation globally.

The largest contributors of performance were investment strategies that benefited from tighter spreads in the US high yield corporate bond market and higher stock prices in Europe, as well as in emerging markets. Each of these specific strategies is a manifestation of our constructive view for global growth and our bias for exposure to individual regions and asset classes.

The largest detractors from performance were positions adversely impacted by lower realized volatility in European equities and an increase in developed market sovereign bond yields at the end of June 2017. Both of these positions are characterized as "risk-reducing" because of our expectation for these strategies to protect our portion of the Portfolio when capital markets experience increased stress. We were also negatively impacted by a decrease in the value of our currency strategy, being long the US dollar against the Saudi Arabian riyal.

Our conviction in the global reflation theme, albeit challenged by markets more recently, has strengthened due to a broad-based global recovery and pickup in global trade.

We make significant use of derivatives, including but not limited to options, futures, forward, and swaps. Derivative use is relied upon for risk management and efficient implementation purposes.

PCJ Investment Counsel Ltd.

Our portion of the Portfolio generated a negative absolute return during the reporting period. This was largely driven by weak results during the fourth quarter of 2016. In particular, we were negatively impacted by our positioning in the consumer sectors, with a long bias in consumer staples and a short bias in consumer discretionary. On a positive note, our positioning in the materials sector, specifically the long bias in forest products, positively impacted performance over the reporting period as solid North American housing fundamentals and announced trade duty levels on Canadian lumber exports in the second quarter of 2017 were well received by the market. Elsewhere, within the industrials sector, our exposure to transportation, building materials and infrastructure companies continued to benefit from the reflation theme, which includes increased infrastructure spending, fiscal stimulus and consumer spending.

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Subadvisors' comments (Unaudited) – concluded

One of the key questions for the remainder of this year will be the extent to which bond and equity markets can withstand a gradual reduction in monetary stimulus. We believe that a transition toward a rising interest rate environment driven by economic growth and a sustainable shift to higher US inflation is likely, as most economic data points in this direction. We believe the US financials sector stands to benefit from several tailwinds, including higher interest rates and deregulation. We hold long positions in US money centers and larger regional banks, partly offset by short positions in Canadian names.

We expect Canadian lumber stocks will benefit from improved earnings visibility since the US Department of Commerce announced preliminary trade duty levels on Canadian softwood lumber, allowing investors to regain focus on improving fundamentals. Since the initial announcement in late April, we have increased our exposure to the sector by adding to names that are more exposed to the duties but trade at discounted valuations. Lastly, we believe the traditional consumer retail sector continues to deteriorate and we hold a short bias toward a basket of names.

We did not use derivatives during the reporting period.

Principal Global Investors

During the period we managed a portion of the Portfolio, from December 19, 2016 through July 31, 2017, we generated a negative absolute return. During that period, we identified investment opportunities through the application of both quantitative systematic and qualitative discretionary approaches. Both approaches utilize non-deliverable currency forwards and currency options as part of our investment strategy.

The discretionary component underperformed primarily due to our positive view on the US dollar and our positioning for heightened financial market volatility. Neither of these views materialized according to our expectations during the reporting period.

The systematic component underperformed primarily due to our expectation of outperformance of higher yielding currencies versus lower yielding currencies, which also failed to materialize. This was primarily a result of the euro, as it strengthened due to improvement in economic data within the eurozone.

Non-deliverable currency forwards were used during the reporting period and, overall, they detracted from performance.

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.

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Performance at a glance (unaudited)

Average annual total returns for periods ended 07/31/17	1 year			5 years			10 years			Since inception1
Before deducting maximum sales charge
Class A2		2.19	%		3.66	%		0.41	%		1.47	%
Class C3		1.41			2.93			(0.30	)		0.78
Class Y4		2.40			3.97			N/A			1.28
Class P5		2.41			3.96			0.68			1.74
After deducting maximum sales charge
Class A2		(3.42	)		2.51			(0.16	)		0.97
Class C3		0.41			2.93			(0.30	)		0.78
Citigroup Three-Month US Treasury Bill Index6		0.51			0.16			0.48			0.97
Bloomberg Barclays Global Aggregate Index7		(1.28	)		0.88			3.66			3.90
MSCI World Index (net)8		16.12			11.63			4.45			5.38
HFRI Fund of Funds Composite Index (net)9		5.98			3.92			0.94			1.84
Lipper Alternative Multi-Strategy Funds median		2.41			2.83			0.93			1.59

Most recent calendar quarter-end returns (unaudited)

Average annual total returns for periods ended 06/30/17	1 year			5 years			10 years			Since inception1
Before deducting maximum sales charge
Class A2		2.79	%		3.79	%		0.26	%		1.45	%
Class C3		1.93			3.03			(0.47	)		0.75
Class Y4		3.01			4.07			N/A			1.24
Class P5		3.02			4.06			0.52			1.71
After deducting maximum sales charge
Class A2		(2.82	)		2.62			(0.30	)		0.94
Class C3		0.93			3.03			(0.47	)		0.75

The annualized gross and net expense ratios, respectively, for each class of shares as in the November 28, 2016 prospectuses, were as follows: Class A—2.10% and 2.01%; Class C—2.83% and 2.74%; Class Y—1.77% and 1.68%; and Class P—1.85% and 1.76% 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 Asset Management (Americas) Inc. ("UBS AM") have entered into a written fee waiver/expense reimbursement agreement pursuant to which UBS 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 30, 2017 (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed Class A—1.88%; Class C—2.63%; Class Y—1.63%; and Class P—1.63% The Portfolio has agreed to repay UBS 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 AM. Upon termination of the agreement, however, UBS 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 Class A shares, and 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. 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 of 0.25% annually.

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 of 0.25% and 0.75% annually, respectively.

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 Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance.

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 Bloomberg Barclays 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.

⁸  The MSCI World Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. 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.

⁹  The HFRI Fund of Funds Composite Index is a Fund of Funds index with multiple managers through funds or managed accounts. The strategy designs a diversified portfolio of managers with the objective of significantly lowering the risk (volatility) of investing with an individual manager. The Fund of Funds manager has discretion in choosing which strategies to invest in for the portfolio. A manager may allocate funds to numerous managers within a single strategy, or with numerous managers in multiple strategies. The minimum investment in a Fund of Funds may be lower than an investment in an individual hedge fund or managed account. The investor has the advantage of diversification among managers and styles with significantly less capital than investing with separate managers. Investors should note that indices do not reflect the deduction of fees and expenses.

Prior to August 3, 2015, a 1% redemption fee was imposed on sales or exchanges of any class of shares of the Portfolio made during the specified holding period.

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 www.ubs.com/us-mutualfundperformance.

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.

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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 Bloomberg Barclays Global Aggregate Index, the MSCI World Index (net) and the HFRI Fund of Funds Composite Index (net) over the 10 years ended July 31, 2017. Class P shares held through advisory programs may be subject to a program fee, which, if included, would have reduced performance. 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.

PACE Alternative Strategies Investments

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Portfolio statistics—July 31, 2017 (unaudited)

Top ten equity holdings (long holdings)1	Percentage of net assets
NetApp, Inc.		0.7	%
Bank of America Corp.		0.7
The Sherwin-Williams Co.		0.7
JPMorgan Chase & Co.		0.7
Becton, Dickinson and Co.		0.5
Merck & Co., Inc.		0.5
Johnson & Johnson		0.5
National Bank of Canada		0.5
FedEx Corp.		0.5
Gilead Sciences, Inc.		0.5
Total		5.8	%
Top ten equity holdings (short holdings)1	Percentage of net assets
SBA Communications Corp.		(0.4	)%
Equinix, Inc.		(0.4	)
Halliburton Co.		(0.3	)
Schlumberger Ltd.		(0.3	)
Cheniere Energy, Inc.		(0.2	)
Charter Communications, Inc., Class A		(0.2	)
Lundin Petroleum AB		(0.2	)
Acom Co. Ltd.		(0.2	)
Royal Bank of Scotland Group PLC		(0.2	)
Tesla, Inc.		(0.2	)
Total		(2.6	)%
Top ten long-term fixed income holdings1	Percentage of net assets
US Treasury Inflation Index Note (TIPS), 0.625% due 01/15/26		2.6	%
US Treasury Inflation Index Bond (TIPS), 2.125% due 02/15/40		2.0
Indonesia Treasury Bond, 8.250% due 07/15/21		0.4
US Treasury Inflation Index Bond (TIPS), 3.875% due 04/15/29		0.3
US Treasury Inflation Index Bond (TIPS), 0.750% due 02/15/45		0.3
US Treasury Inflation Index Bond (TIPS), 3.625% due 04/15/28		0.3
US Treasury Inflation Index Bond (TIPS), 1.375% due 02/15/44		0.2
US Treasury Inflation Index Bond (TIPS), 0.750% due 02/15/42		0.2
US Treasury Inflation Index Bond (TIPS), 1.000% due 02/15/46		0.2
US Treasury Inflation Index Bond (TIPS), 0.625% due 02/15/43		0.2
Total		6.7	%
Top five issuer breakdown by country or territory of origin (long holdings)1	Percentage of net assets
United States		41.9	%
Canada		6.7
Japan		2.8
Australia		0.9
Netherlands		0.9
Total		53.2	%
Top five issuer breakdown by country or territory of origin (short holdings)1	Percentage of net assets
United States		(8.1	)%
Canada		(4.0	)
Japan		(0.5	)
United Kingdom		(0.3	)
Curacao		(0.3	)
Total		(13.2	)%

¹  The Portfolio is actively managed and its composition will vary over time.

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Industry diversification—(unaudited)

As a percentage of net assets as of July 31, 2017

Common stocks
Aerospace & defense	0.61	%
Air freight & logistics	0.51
Airlines	0.29
Auto components	0.15
Banks	5.46
Beverages	0.55
Biotechnology	1.66
Building products	0.45
Capital markets	0.75
Chemicals	1.26
Commercial services & supplies	0.53
Communications equipment	0.38
Construction & engineering	0.35
Construction materials	0.10
Containers & packaging	0.06
Diversified consumer services	0.06
Diversified financial services	0.69
Diversified telecommunication services	0.38
Electrical equipment	0.17
Electronic equipment, instruments & components	0.08
Energy equipment & services	0.43
Equity real estate investment trusts	0.85
Food & staples retailing	0.32
Food products	0.51
Gas utilities	0.30
Health care equipment & supplies	1.64
Health care providers & services	1.80
Hotels, restaurants & leisure	0.83
Household durables	0.68
Independent power and renewable electricity producers	0.16
Industrial conglomerates	0.02
Insurance	0.53
Internet & catalog retail	0.04
Internet & Direct Marketing Retail	0.24
Internet software & services	1.37
IT services	0.76
Leisure products	0.09
Machinery	0.24
Marine	0.05
Media	0.34
Metals & mining	0.89
Mortgage Real estate investment trust	0.43
Multi-utilities	0.10
Multiline retail	0.13

Common stocks—(concluded)
Oil, gas & consumable fuels	1.09	%
Paper & forest products	0.96
Personal products	0.08
Pharmaceuticals	1.79
Real estate management & development	0.87
Road & rail	0.76
Semiconductors & semiconductor equipment	0.95
Software	1.72
Specialty retail	0.29
Technology hardware, storage & peripherals	2.84
Textiles, apparel & luxury goods	0.28
Thrifts & mortgage finance	0.06
Tobacco	0.11
Trading companies & distributors	0.50
Wireless telecommunication services	0.83
Total common stocks	40.37
Preferred stocks
Auto components	0.04
Banks	0.02
Diversified telecommunication services	0.07
Total preferred stocks	0.13
Warrant	0.00	†
Investment companies	10.55
US government obligations	6.96
Corporate notes
Agriculture	0.06
Auto manufacturers	0.08
Banking-non-US	0.01
Banks	0.69
Beverages	0.09
Commercial services	0.09
Diversified financial services	0.20
Diversified financials	0.02
Electric	0.03
Electric utilities	0.05
Engineering & construction	0.02
Financial services	0.02
Gas	0.03
Healthcare-services	0.05
Holding companies-divers	0.04
Insurance	0.09

232

PACE Alternative Strategies Investments

Industry diversification—(unaudited) (concluded)

As a percentage of net assets as of July 31, 2017

Corporate notes—(concluded)
Investment company	0.02	%
Media	0.02
Mining	0.02
Oil & gas	0.12
Pharmaceuticals	0.03
Pipelines	0.07
Real estate	0.09
REITS	0.06
Savings & loans	0.06
Telecommunications	0.10
Water	0.04
Total corporate notes	2.20
Non-US government obligations	0.59
Certificates of deposit	2.24
Time deposits	5.24
Short-term US government obligations	14.24
Repurchase agreement	23.35
Options purchased
Call options	0.36
Put options	0.08
Total options purchased	0.44
Swaptions purchased
Call swaption	0.08
Put swaption	0.29
Total swaptions purchased	0.37
Foreign exchange options purchased
Call options	0.47
Put options	0.22
Total foreign exchange options purchased	0.69
Investments sold short Common stocks
Aerospace & defense	(0.08	)
Airlines	(0.13	)
Auto components	(0.04	)
Automobiles	(0.20	)
Banks	(0.60	)
Beverages	(0.07	)
Building products	(0.06	)
Capital markets	(0.67	)
Chemicals	(0.24	)

Investments sold short—(concluded) Common stocks—(concluded)
Commercial services & supplies	(0.20	)%
Communications equipment	(0.16	)
Construction materials	(0.02	)
Consumer finance	(0.22	)
Containers & packaging	(0.05	)
Diversified financial services	(0.09	)
Diversified telecommunication services	(0.53	)
Electric utilities	(0.11	)
Energy equipment & services	(1.14	)
Equity real estate investment trusts	(0.51	)
Food & staples retailing	(0.43	)
Food products	(0.08	)
Health care equipment & supplies	(0.01	)
Health care providers & services	(0.07	)
Hotels, restaurants & leisure	(0.20	)
Household durables	(0.17	)
Household products	(0.03	)
Independent power and renewable electricity producers	(0.04	)
Insurance	(0.09	)
Internet software & services	(0.01	)
IT services	(0.17	)
Leisure products	(0.02	)
Machinery	(0.06	)
Media	(0.46	)
Metals & mining	(0.17	)
Multi-utilities	(0.12	)
Multiline retail	(0.15	)
Oil, gas & consumable fuels	(1.17	)
Paper & forest products	(0.33	)
Pharmaceuticals	(0.04	)
Professional services	(0.03	)
Real estate management & development	(0.07	)
Road & rail	(0.20	)
Software	(0.01	)
Specialty retail	(0.37	)
Technology hardware, storage & peripherals	(0.02	)
Textiles, apparel & luxury goods	(0.21	)
Thrifts & mortgage finance	(0.09	)
Trading companies & distributors	(0.05	)
Wireless telecommunication services	(0.06	)
Investment companies	(4.28	)
Total investments sold short	(14.33	)
Other assets in excess of liabilities	6.96
Net assets	100.00	%

^†  Weighting represents less than 0.005% of the Portfolio's net assets as of July 31, 2017.

233

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—40.37%
Argentina—0.07%
PLAY Communications SA*,1		48,020	$	491,451
Australia—0.85%
AGL Energy Ltd.		34,272		660,764
Aristocrat Leisure Ltd.		6,330		102,546
Challenger Ltd.		45,406		466,774
Coca-Cola Amatil Ltd.		47,192		311,090
Flight Centre Travel Group Ltd.		2,255		78,474
Fortescue Metals Group Ltd.		259,224		1,190,357
Rio Tinto Ltd.		34,648		1,823,593
South32 Ltd.		455,143		1,059,573
Total Australia common stocks				5,693,171
Belgium—0.02%
KBC Groupe N.V.		1,789		148,247
Bermuda—0.68%
Athene Holding Ltd., Class A*		19,646		992,712
Kerry Properties Ltd.		186,000		652,481
Marvell Technology Group Ltd.		12,066		187,747
Nabors Industries Ltd.		115,391		889,665
NWS Holdings Ltd.		62,000		118,748
VEON Ltd., ADR		367,458		1,502,903
Yue Yuen Industrial Holdings Ltd.		54,000		222,961
Total Bermuda common stocks				4,567,217
Canada—5.98%
Agnico Eagle Mines Ltd.2		7,770		362,937
Air Canada*,2		65,108		1,035,566
Algonquin Power & Utilities Corp.2		17,890		191,276
Alimentation Couche Tard, Inc., Class B		17,549		832,161
Badger Daylighting Ltd.2		7,790		165,454
Birchcliff Energy Ltd.2		21,974		107,513
Canadian Imperial Bank of Commerce		21,400		1,857,556
Canadian Natural Resources Ltd.2		7,192		220,075
Canadian Pacific Railway Ltd.2		4,262		666,449
Canfor Corp.*,2		125,130		2,099,635
CanWel Building Materials Group Ltd.2		73,346		361,803
Cargojet, Inc.2		9,106		352,846
CGI Group, Inc., Class A*,2		12,223		645,497
Chorus Aviation, Inc.2		74,246		457,357
Clearwater Seafoods, Inc.2		51,530		460,432
Constellation Software, Inc.		100		53,872
Cott Corp.2		71,216		1,106,697
Crescent Point Energy Corp.2		9,070		71,294
Crombie Real Estate Investment Trust2		119,520		1,296,098
Detour Gold Corp.*,2		17,730		222,985
Dorel Industries, Inc., Class B2		11,490		303,574
Element Fleet Management Corp.		61,113		462,728
Enbridge, Inc.2		11,875		492,338
Encana Corp.2		43,732		439,944
Finning International, Inc.2		6,300		126,783
Freshii, Inc.*,2		38,500		311,273
Hardwoods Distribution, Inc.2		88,250		1,327,909
Intact Financial Corp.2		3,900		299,581
Interfor Corp.*,2		152,877		2,380,062
Intertape Polymer Group, Inc.2		20,770		400,323

	Number of shares		Value
Common stocks—(continued)
Canada—(concluded)
Keyera Corp.2		14,604	$	456,364
Kinaxis, Inc.*,2		4,560		293,296
Knight Therapeutics, Inc.*,2		27,342		208,122
Laurentian Bank of Canada2		20,310		882,449
Loblaw Cos. Ltd.2		22,150		1,206,324
Major Drilling Group International, Inc.*,2		22,526		148,878
Methanex Corp.2		8,200		363,260
Nanotech Security Corp.*,2		74,785		77,979
National Bank of Canada		69,100		3,112,063
New Flyer Industries, Inc.2		10,696		436,076
Norbord, Inc.2		6,300		223,398
Northland Power, Inc.2		25,611		476,990
Open Text Corp.2		7,806		261,501
Park Lawn Corp.2		10,390		158,340
Parkland Fuel Corp.3		24,600		506,700
Parkland Fuel Corp.2		21,615		463,767
Polaris Infrastructure, Inc.2		15,914		217,122
Power Corp. of Canada		11,100		269,943
Precision Drilling Corp.*		172,565		501,051
Restaurant Brands International, Inc.2		4,454		265,369
Saputo, Inc.2		7,820		265,068
Seven Generations Energy Ltd., Class A*,2		6,250		108,632
Shopify, Inc., Class A*,2		1,560		144,097
SNC-Lavalin Group, Inc.2		40,758		1,795,085
Superior Plus Corp.2		31,632		277,311
The Bank of Nova Scotia		30,700		1,912,548
The Toronto-Dominion Bank		23,800		1,226,891
Tidewater Midstream and Infrastructure Ltd.2		244,097		260,396
TransAlta Corp.2		23,874		155,681
Tree Island Steel Ltd.2		179,964		534,082
Trevali Mining Corp.*,2		220,192		227,831
Trican Well Service Ltd.*,2		78,270		229,144
Tricon Capital Group, Inc.2		78,510		661,203
Waste Connections, Inc.2		15,821		1,028,049
Western Forest Products, Inc.2		592,500		1,178,584
Whitecap Resources, Inc.2		44,550		329,100
Total Canada common stocks				39,974,712
Cayman Islands—0.28%
Anta Sports Products Ltd.		119,913		411,439
ASM Pacific Technology Ltd.		16,000		207,303
Baidu, Inc., ADR*		1,636		370,308
Ctrip.com International Ltd., ADR*		10,373		619,579
Melco Crown Entertainment Ltd., ADR		13,059		263,792
Total Cayman Islands common stocks				1,872,421
Denmark—0.35%
AP Moeller—Maersk A/S, Class B		149		325,406
Danske Bank A/S		16,239		657,857
Novo Nordisk A/S, Class B		9,996		426,587
Pandora A/S		8,318		957,287
Total Denmark common stocks				2,367,137

234

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
France—0.43%
BNP Paribas SA		8,528	$	661,959
Cie Generale des Etablissements Michelin		2,780		376,322
Credit Agricole SA		11,977		210,549
Natixis SA		10,134		73,695
Orpea		6,266		718,774
Societe Generale SA		6,614		388,351
Thales SA		4,299		476,294
Total France common stocks				2,905,944
Germany—0.32%
Commerzbank AG*		18,249		239,363
Covestro AG1		1,748		135,786
Deutsche Bank AG		29,957		535,138
Deutsche Telekom AG		38,818		709,741
METRO AG		3,037		34,158
Metro Wholesale & Food Specialist AG*		3,037		61,352
Scout24 AG1		9,187		350,194
TUI AG		3,482		54,716
Total Germany common stocks				2,120,448
Hong Kong—0.60%
Hang Lung Group Ltd.		22,000		83,654
New World Development Co. Ltd.		1,205,000		1,629,129
Sun Hung Kai Properties Ltd.		8,000		123,931
The Wharf Holdings Ltd.		162,000		1,378,207
Wheelock & Co. Ltd.		106,000		799,329
Total Hong Kong common stocks				4,014,250
Ireland—0.56%
Allegion PLC2		9,611		780,798
CRH PLC		19,559		687,557
Glanbia PLC		27,654		572,894
Ryanair Holdings PLC, ADR*		4,141		469,299
Seagate Technology PLC2		37,293		1,229,177
Total Ireland common stocks				3,739,725
Isle Of Man—0.02%
Genting Singapore PLC		125,200		107,632
Israel—0.05%
Caesarstone Ltd.*,2		9,260		325,026
Italy—0.21%
Banco BPM SpA*		32,620		119,322
Intesa Sanpaolo SpA		166,970		575,584
UniCredit SpA*		29,460		580,316
Unione di Banche Italiane SpA		19,968		96,585
Total Italy common stocks				1,371,807
Japan—2.74%
Asahi Group Holdings Ltd.		11,726		478,528
Benesse Holdings, Inc.		5,800		222,278
Brother Industries Ltd.		29,600		757,150
Canon, Inc.		12,800		445,495
Dainippon Pharmaceutical Co. Ltd.		21,100		296,275
DeNa Co. Ltd.		19,900		437,730
Hitachi High-Technologies Corp.		3,500		129,212

	Number of shares		Value
Common stocks—(continued)
Japan—(concluded)
Hitachi Ltd.		44,000	$	303,165
Idemitsu Kosan Co. Ltd.		1,800		43,708
JXTG Holdings, Inc.		80,650		358,607
KDDI Corp.		74,900		1,983,836
Komatsu Ltd.		28,470		765,561
Konica Minolta, Inc.		22,100		183,223
Mitsubishi Gas Chemical Co., Inc.		17,500		405,891
Mitsubishi Tanabe Pharma Corp.		13,500		321,933
Mitsui Chemicals, Inc.		10,000		57,145
Mitsui Fudosan Co. Ltd.		22,093		507,911
Mixi, Inc.		25,000		1,376,480
Nippon Electric Glass Co. Ltd.		3,800		134,773
Nippon Express Co. Ltd.		15,000		95,923
NTT DOCOMO, Inc.		67,900		1,578,554
Oracle Corp. Japan		1,100		73,935
Osaka Gas Co. Ltd.		51,000		204,241
Resorttrust, Inc.		10,732		198,003
Seiko Epson Corp.		85,400		2,254,972
Shionogi & Co. Ltd.		10,883		582,032
Start Today Co. Ltd.		34,100		963,504
Tokyo Electron Ltd.		17,300		2,444,079
Trend Micro, Inc.		1,200		60,084
Yamaha Corp.		17,846		631,316
Total Japan common stocks				18,295,544
Jersey—0.18%
Glencore PLC*		80,566		355,198
Shire PLC		15,285		859,317
Total Jersey common stocks				1,214,515
Netherlands—0.74%
ABN AMRO Group N.V.1		4,649		131,588
Airbus SE		31,545		2,636,415
ASML Holding N.V.		4,116		624,414
ASR Nederland N.V.		16,957		641,355
ING Groep N.V.		29,857		558,977
Philips Lighting N.V.1		7,550		286,900
STMicroelectronics N.V.		5,255		89,767
Total Netherlands common stocks				4,969,416
Norway—0.14%
Marine Harvest ASA*		50,628		943,297
Portugal—0.06%
Galp Energia, SGPS SA		25,358		406,455
Singapore—0.12%
Broadcom Ltd.		3,175		783,146
South Korea—0.19%
KT Corp., ADR		31,992		581,935
Samsung Electronics Co. Ltd.		317		682,695
Total South Korea common stocks				1,264,630
Spain—0.67%
Banco Bilbao Vizcaya Argentaria SA		51,962		470,633
Banco de Sabadell SA		39,601		88,743

235

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
Spain—(concluded)
Banco Santander SA		121,926	$	833,396
Bankia SA		23,388		118,555
CaixaBank SA		48,204		251,994
Cellnex Telecom SA1		54,178		1,218,583
Gas Natural SDG SA		64,849		1,519,244
Total Spain common stocks				4,501,148
Sweden—0.35%
Industrivarden AB, C Shares		21,523		522,494
Lundin Petroleum AB*		13,364		304,066
Nordea Bank AB		55,922		705,796
Securitas AB, Class B		33,465		557,487
Swedbank AB, A Shares		10,309		269,159
Total Sweden common stocks				2,359,002
Switzerland—0.10%
Credit Suisse Group AG*		27,231		419,047
Roche Holding AG		857		217,053
Total Switzerland common stocks				636,100
United Kingdom—0.41%
Babcock International Group PLC		28,763		320,487
Carnival PLC		2,591		175,030
GlaxoSmithKline PLC		30,950		618,453
OM Asset Management PLC		45,265		682,143
Prudential PLC		23,420		571,039
Royal Dutch Shell PLC		3,939		111,842
Tullow Oil PLC*		126,843		281,327
Total United Kingdom common stocks				2,760,321
United States—24.25%
AbbVie, Inc.2		38,808		2,713,067
Activision Blizzard, Inc.		6,787		419,301
Acuity Brands, Inc.		4,167		844,443
Advanced Disposal Services, Inc.*,2		20,330		491,579
Affiliated Managers Group, Inc.2		5,483		1,018,906
AGNC Investment Corp.2		135,803		2,876,308
Align Technology, Inc.*,2		8,707		1,456,072
Alphabet, Inc., Class A*,2		1,681		1,589,386
Alphabet, Inc., Class C*,2		3,272		3,044,596
Altria Group, Inc.		11,796		766,386
Amazon.com, Inc.*,2		250		246,945
American International Group, Inc.		6,476		423,854
American Tower Corp.		6,477		883,009
Amgen, Inc.2		16,727		2,919,029
Annaly Capital Management, Inc.2		235,514		2,833,233
Apple, Inc.		9,047		1,345,560
Bank of America Corp.2		204,555		4,933,867
Bank of the Ozarks, Inc.2		21,101		910,508
BankUnited, Inc.2		10,877		374,386
BB&T Corp.		11,723		554,732
Becton, Dickinson and Co.2		17,942		3,613,519
Berkshire Hathaway, Inc., Class B*,2		16,758		2,932,147
Biogen, Inc.*,2		5,627		1,629,523
BMC Stock Holdings, Inc.*,2		68,381		1,504,382
Boston Scientific Corp.*,2		57,048		1,518,618

	Number of shares		Value
Common stocks—(continued)
United States—(continued)
C.R. Bard, Inc.2		7,185	$	2,303,511
CA, Inc.2		50,028		1,552,869
CarMax, Inc.*,2		18,059		1,196,409
Carrols Restaurant Group, Inc.*,2		46,862		571,716
Cavium, Inc.*		3,802		235,496
Celgene Corp.*		5,860		793,503
Centene Corp.*,2		17,509		1,390,565
Cigna Corp.		4,934		856,345
Cimarex Energy Co.2		3,690		365,421
Citigroup, Inc.2		28,822		1,972,866
Citizens Financial Group, Inc.		8,804		308,844
Citrix Systems, Inc.*		637		50,310
Cognizant Technology Solutions Corp., Class A2		31,897		2,211,100
Comcast Corp., Class A		19,988		808,515
Comerica, Inc.		2,129		153,948
Concho Resources, Inc.*		3,118		406,151
ConocoPhillips		3,825		173,540
Constellation Brands, Inc., Class A2		9,088		1,757,165
Convergys Corp.		13,838		331,697
CSX Corp.2		53,872		2,658,045
D.R. Horton, Inc.2		30,196		1,077,695
Darden Restaurants, Inc.2		26,292		2,205,373
Dell Technologies, Inc., Class V*		9,396		603,881
Devon Energy Corp.2		18,526		617,101
Discovery Communications, Inc., Class A*		17,285		425,211
DISH Network Corp., Class A*,2		11,199		717,072
Dollar Tree, Inc.*		12,154		876,060
E*TRADE Financial Corp.*,2		36,705		1,504,905
eBay, Inc.*		23,769		849,266
Electronic Arts, Inc.*		2,667		311,346
Equinix, Inc.		1,485		669,334
Express Scripts Holding Co.*,2		30,149		1,888,533
Facebook, Inc., Class A*		5,974		1,011,100
Farmer Brothers Co.*,2		8,270		257,611
FedEx Corp.2		14,834		3,085,917
Fifth Third Bancorp		11,808		315,274
First Republic Bank		5,278		529,542
FleetCor Technologies, Inc.*		1,956		297,429
Foot Locker, Inc.		5,661		267,143
Fortune Brands Home & Security, Inc.2		18,815		1,235,581
Gilead Sciences, Inc.2		40,123		3,052,959
Granite Construction, Inc.2		7,640		374,513
Halliburton Co.		29,712		1,260,977
Hanesbrands, Inc.		12,248		280,724
Hess Corp.		11,427		508,959
HP, Inc.2		109,724		2,095,728
Humana, Inc.2		10,703		2,474,534
Huntington Bancshares, Inc.		17,746		235,135
Intel Corp.2		14,564		516,585
Intercontinental Exchange, Inc.		5,218		348,093
Johnson & Johnson2		25,352		3,364,717
JPMorgan Chase & Co.2		49,583		4,551,719
Juniper Networks, Inc.2		49,956		1,396,270
KAR Auction Services, Inc.		11,961		502,840
KeyCorp2		24,954		450,170

236

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

	Number of shares		Value
Common stocks—(continued)
United States—(continued)
Lennar Corp., Class A2		20,310	$	1,065,056
Louisiana-Pacific Corp.*,2		21,804		547,498
M&T Bank Corp.		1,946		317,490
MasterCard, Inc., Class A2		12,761		1,630,856
Maxim Integrated Products, Inc.2		3,692		167,764
McDonald's Corp.2		8,005		1,241,896
McKesson Corp.		2,371		383,794
Merck & Co., Inc.2		53,551		3,420,838
Micron Technology, Inc.*,2		39,094		1,099,323
Mohawk Industries, Inc.*		1,560		388,424
Mueller Water Products, Inc., Class A2		32,547		377,545
NetApp, Inc.2		114,286		4,962,298
Newell Brands, Inc.		14,919		786,530
Norfolk Southern Corp.		3,146		354,177
Nuance Communications, Inc.*,2		121,020		2,093,646
Oracle Corp.		10,495		524,015
Owens Corning2		6,330		424,427
Palo Alto Networks, Inc.*,2		8,561		1,128,169
Parsley Energy, Inc., Class A*		7,329		214,593
People's United Financial, Inc.		4,418		77,050
Pitney Bowes, Inc.		43,072		677,953
PPG Industries, Inc.2		9,440		993,560
Prudential Financial, Inc.		696		78,808
PTC, Inc.*		4,691		258,896
Raytheon Co. 2		5,207		894,406
Regions Financial Corp.		16,255		237,323
Salesforce.com, Inc.*		3,918		355,754
SM Energy Co.2		3,908		67,960
SunTrust Banks, Inc.		8,207		470,179
Synopsys, Inc.*,2		25,691		1,967,160
The Charles Schwab Corp.		12,119		519,905
The Chemours Co.2		34,829		1,658,209
The Estee Lauder Cos., Inc., Class A		5,277		522,370
The Home Depot, Inc.		3,177		475,279
The Kraft Heinz Co.		10,346		904,861
The PNC Financial Services Group, Inc.2		13,119		1,689,727
The Sherwin-Williams Co.2		14,365		4,844,884
Torchmark Corp.		3,821		301,744
TRI Pointe Group, Inc.*,2		68,160		906,528
Union Pacific Corp. 2		12,958		1,334,156
United Therapeutics Corp.*,2		12,595		1,617,198
UnitedHealth Group, Inc.2		14,687		2,817,113
Universal Forest Products, Inc.2		3,050		255,743
Universal Health Services, Inc., Class B2		13,838		1,533,666
US Bancorp		14,780		780,088
Varian Medical Systems, Inc.*,2		21,444		2,082,641
Verint Systems, Inc.*,2		17,766		704,422
Visteon Corp.*		5,502		613,693
VMware, Inc., Class A*,2		20,649		1,914,369
Wells Fargo & Co.		29,587		1,595,923
Western Alliance Bancorp*		7,095		357,446
Western Digital Corp.2		34,587		2,944,045
World Wrestling Entertainment, Inc., Class A		15,938		337,248
Xerox Corp.2		67,410		2,067,465

	Number of shares		Value
Common stocks—(concluded)
United States—(concluded)
Zions Bancorp.		3,521	$	159,572
Total United States common stocks				162,246,352
Total common stocks (cost—$243,878,989)				270,079,114
Preferred stock—0.13%
Germany—0.04%
Schaeffler AG		18,252		254,743
Italy—0.09%
Intesa Sanpaolo SpA		44,684		142,662
Telecom Italia SpA		569,210		467,302
Total preferred stocks (cost—$832,230)				864,707
	Number of warrants
Warrant—0.00%†
Canada—0.00%†
Delphi Energy Corp. expiring 07/15/21*,2 (cost—$3,819)		9,900		2,541
	Number of shares
Investment companies—10.55%
AQR Style Premia Alternative Fund		2,586,420		26,769,449
ASG Managed Futures Strategy Fund		708,716		6,987,940
Boyd Group Income Fund2		6,790		516,568
Crius Energy Trust2		48,000		375,761
iShares MSCI Emerging Markets Small-Cap ETF		83,831		4,061,612
Richards Packaging Income Fund2		19,290		427,034
Scout Unconstrained Bond Fund		2,265,345		26,821,689
SPDR S&P Emerging Markets SmallCap ETF		88,983		4,285,421
VanEck Vectors Junior Gold Miners ETF2		9,479		318,684
Total investment companies (cost—$68,219,275)				70,564,158
	Face amount
US government obligations—6.96%
US Treasury Inflation Index Bonds (TIPS) 0.625%, due 02/15/43	USD	1,415,705		1,300,257
0.750%, due 02/15/42	USD	1,374,390		1,306,366
0.750%, due 02/15/45	USD	2,047,342		1,919,164
0.875%, due 02/15/47	USD	388,898		376,882
1.000%, due 02/15/46	USD	1,308,608		1,305,258
1.375%, due 02/15/44	USD	1,424,931		1,548,516
1.750%, due 01/15/28	USD	941,537		1,055,338
2.125%, due 02/15/40	USD	10,931,857		13,593,874
2.125%, due 02/15/41	USD	997,945		1,245,989
2.500%, due 01/15/29	USD	779,657		942,663
3.375%, due 04/15/32	USD	357,369		493,338
3.625%, due 04/15/28	USD	1,461,635		1,917,651
3.875%, due 04/15/292	USD	1,670,277		2,276,493

237

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
US government obligations—(concluded)
US Treasury Inflation Index Notes (TIPS) 0.625%, due 01/15/26	USD	17,097,004	$	17,304,066
Total US government obligations (cost—$47,561,997)				46,585,855
Corporate notes—2.20%
Australia—0.08%
APT Pipelines Ltd. 2.000%, due 03/22/274	EUR	100,000		120,631
National Australia Bank Ltd. 2.000%, due 11/12/244,5	EUR	100,000		121,640
Santos Finance Ltd. 8.250%, due 09/22/705	EUR	50,000		59,634
Scentre Group Trust 2 3.250%, due 09/11/234	EUR	200,000		268,636
Total Australia corporate notes				570,541
Austria—0.02%
UniCredit Bank Austria AG 2.500%, due 05/27/194	EUR	100,000		123,444
Belgium—0.09%
Anheuser-Busch InBev SA 1.500%, due 03/17/254	EUR	100,000		123,731
2.000%, due 03/17/284	EUR	395,000		494,060
Total Belgium corporate notes				617,791
Canada—0.48%
Delphi Energy Corp. 10.000%, due 07/15/211,2,4	CAD	610,000		494,312
Element Fleet Management Corp. 5.125%, due 06/30/191,2	CAD	1,426,318		1,144,029
Extendicare, Inc. 6.000%, due 09/30/192	CAD	396,000		322,390
Great-West Lifeco, Inc. 2.500%, due 04/18/234	EUR	150,000		194,964
Just Energy Group, Inc. 6.750%, due 12/31/212	CAD	284,000		231,779
Liquor Stores NA Ltd. 4.700%, due 01/31/222	CAD	480,300		391,020
Tricon Capital Group, Inc. 5.750%, due 03/31/221,2	USD	441,000		473,722
Total Canada corporate notes				3,252,216
Cayman Islands—0.04%
CK Hutchison Finance 16 Ltd. 1.250%, due 04/06/234	EUR	100,000		119,853
Hutchison Whampoa Finance 14 Ltd. 1.375%, due 10/31/214	EUR	100,000		122,523
Total Cayman Islands corporate notes				242,376
Denmark—0.01%
DONG Energy A/S 6.250%, 06/26/30134,5	EUR	54,000		75,975

	Face amount		Value
Corporate notes—(continued)
France—0.28%
APRR SA 1.125%, due 01/15/214	EUR	100,000	$	122,009
BNP Paribas SA 2.875%, due 09/26/23	EUR	42,000		56,633
BPCE SA 1.125%, due 12/14/224	EUR	100,000		123,422
Credit Logement SA 0.819%, due 09/16/174,5,6	EUR	100,000		99,497
Electricite de France SA 4.125%, due 01/22/224,5,6	EUR	100,000		125,923
Holding d'Infrastructures de Transport SAS 2.250%, due 03/24/254	EUR	100,000		127,827
Infra Foch SAS 1.250%, due 10/16/204	EUR	100,000		121,774
Lagardere SCA 4.125%, due 10/31/174	EUR	100,000		119,593
Orange SA 5.250%, due 02/07/244,5,6	EUR	100,000		135,107
Societe Fonciere Lyonnaise SA 1.875%, due 11/26/214	EUR	100,000		124,659
Societe Generale SA 9.375%, due 09/04/194,5,6	EUR	50,000		69,430
Transport et Infrastructures Gaz France SA 2.200%, due 08/05/254	EUR	200,000		252,617
4.339%, due 07/07/214	EUR	100,000		135,881
Veolia Environnement SA 1.590%, due 01/10/284	EUR	100,000		120,853
4.625%, due 03/30/274	EUR	100,000		155,344
Total France corporate notes				1,890,569
Germany—0.04%
Aareal Bank AG 4.250%, due 03/18/265	EUR	35,000		45,300
Commerzbank AG 7.750%, due 03/16/21	EUR	100,000		145,435
Deutsche Bank AG 5.000%, due 06/24/204	EUR	50,000		65,987
Total Germany corporate notes				256,722
Ireland—0.11%
ESB Finance Ltd. 3.494%, due 01/12/244	EUR	150,000		206,194
FCA Bank SpA 2.000%, due 10/23/194	EUR	100,000		123,185
4.000%, due 10/17/184	EUR	100,000		124,148
GE Capital European Funding Unlimited Co. 2.625%, due 03/15/234	EUR	100,000		132,156
Willow No.2 Ireland PLC for Zurich Insurance Co. Ltd. 3.375%, due 06/27/224	EUR	100,000		135,515
Total Ireland corporate notes				721,198

238

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(continued)
Italy—0.09%
Intesa Sanpaolo SpA 1.125%, due 03/04/224	EUR	100,000	$	121,080
4.375%, due 10/15/194	EUR	200,000		259,450
UniCredit SpA 3.625%, due 01/24/194	EUR	100,000		124,854
5.650%, due 08/24/18	EUR	70,000		87,838
Total Italy corporate notes				593,222
Japan—0.03%
Sumitomo Mitsui Banking Corp. 1.000%, due 01/19/224	EUR	150,000		181,486
Luxembourg—0.02%
Glencore Finance Europe SA 4.625%, due 04/03/184,7	EUR	100,000		122,027
Mexico—0.04%
America Movil SAB de CV 4.750%, due 06/28/22	EUR	100,000		141,828
Petroleos Mexicanos 3.125%, due 11/27/204	EUR	100,000		125,187
Total Mexico corporate notes				267,015
Netherlands—0.13%
Cooperatieve Rabobank UA 2.500%, due 05/26/264,5	EUR	300,000		375,344
Deutsche Annington Finance BV 4.000%, due 12/17/214,5,6	EUR	100,000		127,855
JAB Holdings BV 2.125%, due 09/16/224	EUR	100,000		127,555
Teva Pharmaceutical Finance Netherlands II BV 1.125%, due 10/15/244	EUR	100,000		113,865
Volkswagen International Finance N.V. 3.250%, due 01/21/194	EUR	35,000		43,391
3.500%, due 03/20/304,5,6	EUR	105,000		115,387
Total Netherlands corporate notes				903,397
Norway—0.05%
DNB Bank ASA 3.000%, due 09/26/234,5	EUR	200,000		244,358
Statkraft AS 2.500%, due 11/28/224	EUR	100,000		130,642
Total Norway corporate notes				375,000
Spain—0.02%
Ferrovial Emisiones SA 3.375%, due 01/30/184	EUR	100,000		120,391
Sweden—0.03%
Nordea Bank AB 1.000%, due 02/22/234	EUR	150,000		182,504
Switzerland—0.03%
Credit Suisse AG 1.125%, due 09/15/204	EUR	150,000		183,413

	Face amount		Value
Corporate notes—(continued)
United Arab Emirates—0.02%
Emirates Telecommunications Group Co. PJSC 2.750%, due 06/18/264	EUR	100,000	$	130,255
United Kingdom—0.30%
Aviva PLC 3.375%, due 12/04/454,5	EUR	100,000		125,639
Babcock International Group PLC 1.750%, due 10/06/224	EUR	100,000		123,167
Barclays Bank PLC 6.000%, due 01/14/214	EUR	50,000		69,497
BP Capital Markets PLC 1.573%, due 02/16/274	EUR	100,000		121,102
Brambles Finance PLC 4.625%, due 04/20/184	EUR	100,000		122,332
Coventry Building Society 2.500%, due 11/18/204	EUR	100,000		126,760
FCE Bank PLC 1.875%, due 06/24/214	EUR	100,000		124,596
G4S International Finance PLC 2.625%, due 12/06/184	EUR	100,000		122,487
HSBC Holdings PLC 1.500%, due 03/15/224	EUR	200,000		248,104
6.375%, due 10/18/225	GBP	50,000		66,641
Imperial Brands Finance PLC 5.000%, due 12/02/194	EUR	200,000		263,536
Leeds Building Society 2.625%, due 04/01/214	EUR	100,000		127,200
Lloyds Bank PLC 7.625%, due 04/22/254	GBP	35,000		62,981
10.375%, due 02/12/244,5	EUR	35,000		47,768
Santander UK PLC 0.875%, due 01/13/204	EUR	100,000		120,894
Yorkshire Building Society 2.125%, due 03/18/194	EUR	100,000		122,562
Total United Kingdom corporate notes				1,995,266
United States—0.29%
AT&T, Inc. 2.500%, due 03/15/23	EUR	100,000		128,815
2.750%, due 05/19/23	EUR	100,000		130,926
Bank of America Corp. 1.375%, due 09/10/214	EUR	100,000		122,914
1.625%, due 09/14/224	EUR	100,000		123,635
Barclays Bank PLC 10.000%, due 05/21/214	GBP	50,000		84,946
Citigroup, Inc. 1.375%, due 10/27/214	EUR	120,000		147,979
JPMorgan Chase & Co. 1.500%, due 10/26/224	EUR	300,000		372,079
Merck & Co., Inc. 1.875%, due 10/15/26	EUR	100,000		127,463
Metropolitan Life Global Funding I 0.875%, due 01/20/224	EUR	100,000		120,861
Morgan Stanley 1.875%, due 03/30/23	EUR	100,000		124,874

239

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

	Face amount		Value
Corporate notes—(concluded)
United States—(concluded)
Philip Morris International, Inc. 1.875%, due 03/03/21	EUR	100,000	$	125,311
Wells Fargo & Co. 1.500%, due 09/12/224	EUR	150,000		185,958
2.250%, due 05/02/234	EUR	100,000		128,592
Total United States corporate notes				1,924,353
Total corporate notes (cost—$14,140,906)				14,729,161
Non-US government obligations—0.59%
Germany—0.15%
Bundesrepublik Deutschland 0.250%, due 02/15/274	EUR	200,000		231,716
0.500%, due 02/15/264	EUR	656,000		788,222
Total Germany				1,019,938
Indonesia—0.44%
Indonesia Treasury Bond 8.250%, due 07/15/21	IDR	37,500,000,000		2,948,158
Total non-US government obligations (cost—$3,874,448)				3,968,096
Certificates of deposit—2.24%
Belgium—0.60%
Sumitomo Mitsui Banking Corp. 1.240%, due 08/07/17	USD	2,500,000		2,500,000
1.240%, due 08/18/17	USD	1,500,000		1,500,000
Total Belgium				4,000,000
Venezuela—1.64%
National Bank of Abu Dhabi 1.400%, due 10/10/17	USD	3,500,000		3,500,000
Credit Suisse AG 0.010%, due 09/12/17	USD	3,000,000		2,996,904
1.450%, due 01/05/18	USD	2,500,000		2,500,000
Industrial & Commercial Bank 2.000%, due 09/27/17	USD	2,000,000		2,000,000
Total Venezuela				10,996,904
Total certificates of deposit (cost—$14,995,465)				14,996,904
Time deposits—5.24%
Agence Centrale Organismes 1.119%, due 08/03/17	USD	3,000,000		2,999,814
Bank Nederlandse Gemeenten 1.065%, due 08/21/17	USD	3,500,000		3,497,937
BNP Paribas London 1.170%, due 08/01/17	USD	2,726,581		2,726,581
DZ Bank AG 1.170%, due 08/01/17	USD	3,648,334		3,648,334
KBC Bank N.V. 1.100%, due 08/01/17	USD	2,704,479		2,704,479
Landeskreditbank Baden Wurtt 1.110%, due 08/24/17	USD	2,000,000		1,998,586
Nationwide Building Society 1.240%, due 08/14/17	USD	3,500,000		3,498,439

	Face amount		Value
Time deposits—(concluded)
Natixis 1.370%, due 11/13/17	USD	3,000,000	$	3,000,000
Nordea Bank AB 1.180%, due 08/21/17	USD	3,500,000		3,497,708
Nordea Bank AB 1.140%, due 09/11/17	USD	2,500,000		2,496,764
OP Corporate Bank PLC 1.370%, due 10/31/17	USD	2,500,000		2,491,372
Skandinaviska Enskilda Banken AB 1.165%, due 08/10/17	USD	2,500,000		2,499,273
Total time deposits (cost—$35,059,287)				35,059,287
Short-term US government obligations8—14.24%
US Treasury Bills 0.679%, due 08/10/17	USD	6,751,000		6,749,458
0.714%, due 08/17/17	USD	9,404,000		9,400,064
0.773%, due 08/03/17	USD	3,700,000		3,699,808
0.833%, due 08/31/172	USD	3,000,000		2,997,570
0.900%, due 09/07/172	USD	3,000,000		2,997,018
0.905%, due 09/28/17	USD	20,265,000		20,233,164
0.910%, due 10/05/17	USD	23,884,000		23,839,050
0.930%, due 09/21/172	USD	7,000,000		6,990,431
0.955%, due 10/26/17	USD	1,121,000		1,118,148
0.980%, due 10/19/17	USD	6,933,000		6,916,513
0.990%, due 10/12/17	USD	4,853,000		4,842,469
1.014%, due 11/09/172	USD	5,500,000		5,483,808
Total short-term US government obligations (cost—$95,280,032)				95,267,501
Repurchase agreement—23.35%
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $153,013,285 US Treasury Notes, 2.000% to 3.500% due 05/15/20 to 08/31/21; (value—$159,356,656); proceeds: $156,232,217 (cost—$156,232,000)	USD	156,232,000		156,232,000
	Number of contracts/ Notional amount
Options purchased—0.44%
Call options—0.36%
Euro STOXX 50 Index, strike @ 3,900, expires 09/15/17		1,265		2,995
Euro STOXX 50 Index, strike @ 3,950, expires 09/15/17		1,030		2,438
Euro STOXX 50 Index, strike @ 3,950, expires 12/15/17		1,030		18,290
Euro STOXX Banks Index, strike @ 155, expires 09/15/17		2,350		13,910
Euro STOXX Banks Index, strike @ 155, expires 12/15/17		2,350		132,142
FTSE 100 Index Futures, strike @ 7,000, expires 12/21/18		67		431,833

240

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

	Number of contracts/ Notional amount		Value
Options purchased—(concluded)
Call options—(concluded)
Kospi 200 Index, strike @ 308, expires 09/14/17	KRW	17,870,000	$	152,493
S&P 500 Index, strike @ 2,300, expires 12/21/18		39		1,020,240
S&P 500 Index, strike @ 2,525, expires 09/15/17		58		25,288
S&P 500 Index, strike @ 2,600, expires 12/21/18		74		630,480
				2,430,109
Put options—0.08%
Euro STOXX 50 Index, strike @ 3,000, expires 12/21/18		150		255,701
Euro STOXX 50 Index, strike @ 3,400, expires 12/15/17		181		220,910
Swiss Market Index, strike @ 8,796, expires 09/15/17		102		6,812
Swiss Market Index, strike @ 8,796, expires 09/16/17		103		7,059
				490,482
Total options purchased (cost—$4,632,832)				2,920,591
	Notional amount
Swaptions purchased9—0.37%
Call swaptions—0.08%
3 Month USD LIBOR Interest Rate Swap, strike @ 1.000%, expires 05/09/31 (counterparty: CITI; receive fixed rate); underlying swap terminates 05/09/46	USD	14,300,000		545,613
Put swaptions—0.29%
3 Month USD LIBOR Interest Rate Swap, strike @ 3.850%, expires 05/09/31 (counterparty: CITI; receive fixed rate); underlying swap terminates 05/09/46	USD	32,700,000		1,917,942
Total swaptions purchased (cost—$2,683,490)				2,463,555
Foreign exchange options purchased—0.69%
Call options—0.47%
USD Call/SAR Put, strike @ 3.82, expires 02/12/19	USD	16,350,000		279,601
USD Call/JPY Put, strike @ 96.00, expires 04/21/22	USD	2,535,585		233,981
USD Call/JPY Put, strike @ 96.50, expires 04/22/22	USD	2,535,585		227,493
USD Call/JPY Put, strike @ 98.90, expires 05/06/22	USD	1,040,000		81,249
USD Call/JPY Put, strike @ 100.04, expires 05/10/22	USD	1,488,830		108,838
USD Call/NZD Put, strike @ 1.78, expires 01/02/18	EUR	3,800,000		11,764
USD Call/JPY Put, strike @ 140.80, expires 01/02/18	EUR	4,200,000		19,102

	Notional amount			Value
Foreign exchange options purchased—(concluded)
Call options—(concluded)
USD Call/JPY Put, strike @ 98.00, expires 06/02/22	USD	3,026,477		$	247,693
USD Call/JPY Put, strike @ 97.50, expires 06/13/22	USD	2,361,761			198,549
USD Call/JPY Put, strike @ 99.00, expires 06/13/22	USD	2,361,762			182,489
USD Call/JPY Put, strike @ 96.90, expires 05/06/21	USD	16,350,000			1,537,292
					3,128,051
Put options—0.22%
USD Put/TRY Call, strike @ 4.00, expires 03/08/19	USD	5,685,000			316,939
USD Put/TRY Call, strike @ 3.90, expires 03/21/19	USD	5,645,000			242,492
USD Put/TRY Call, strike @ 3.90, expires 04/05/19	USD	3,878,000			163,908
USD Put/TRY Call, strike @ 4.00, expires 05/04/20	USD	500,000			20,343
AUD Put/CHF Call, strike @ 0.65, expires 01/02/18	AUD	13,150,000			13,571
GBP Put/SEK Call, strike @ 10.32, expires 01/02/18	GBP	2,800,000			44,413
GBP Put/NOK Call, strike @ 9.88, expires 01/02/18	GBP	3,200,000			28,136
USD Put/JPY Call, strike @ 104.5, expires 12/22/17	USD	62,959,900			548,884
EUR Put/USD Call, strike @ 1.06, expires 08/22/17	EUR	40,630,000			0
USD Put/TRY Call, strike @ 4.00, expires 06/04/20	USD	1,005,000			40,168
USD Put/TRY Call, strike @ 3.80, expires 06/19/19	USD	1,004,465			30,761
USD Put/TRY Call, strike @ 3.80, expires 06/27/19	USD	500,000			15,248
USD Put/TRY Call, strike @ 3.80, expires 07/10/19	USD	1,006,696			30,434
USD Put/TRY Call, strike @ 3.80, expires 07/17/19	USD	502,232			15,118
					1,510,415
Total foreign exchange options purchased (cost—$4,896,207)					4,638,466
Total investments before investments sold short (cost—$692,290,977)—107.37%					718,371,936
	Number of shares
Investments sold short—(14.33)%
Common stocks—(10.05)%
Australia—(0.03)%
BHP Billiton Ltd., ADR		(4,348	)		(181,138	)
Bermuda—(0.06)%
Signet Jewelers Ltd.		(6,230	)		(381,027	)

241

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
Canada—(3.08)%
Agrium, Inc.		(2,931	)	$	(293,300	)
AGT Food & Ingredients, Inc.		(12,617	)		(257,349	)
Aimia, Inc.		(37,567	)		(43,691	)
Alimentation Couche-Tard, Inc.		(12,160	)		(576,619	)
AltaGas Ltd.		(12,900	)		(300,267	)
ATS Automation Tooling Systems, Inc.		(12,260	)		(131,770	)
Boardwalk Real Estate Investment Trust		(9,100	)		(348,964	)
Boralex, Inc., Class A		(15,040	)		(268,651	)
CAE, Inc.		(30,450	)		(516,069	)
Canadian National Railway Co.		(3,773	)		(298,148	)
Canadian Utilities Ltd., Class A		(16,915	)		(536,857	)
Cardinal Energy Ltd.		(1,540	)		(5,744	)
CI Financial Corp.		(27,342	)		(595,636	)
Crescent Point Energy Corp.		(13,600	)		(106,902	)
CRH Medical Corp.		(24,390	)		(80,012	)
CT Real Estate Investment Trust		(6,801	)		(79,261	)
DHX Media Ltd.		(140,110	)		(730,471	)
Element Fleet Management Corp.		(39,247	)		(297,166	)
Emera, Inc.		(7,382	)		(274,734	)
Empire Co. Ltd., Class A		(31,120	)		(505,708	)
Exchange Income Corp.		(10,960	)		(253,528	)
Extendicare, Inc.		(23,040	)		(175,376	)
First Quantum Minerals Ltd.		(9,300	)		(102,790	)
Genworth MI Canada, Inc.		(20,338	)		(593,297	)
Gibson Energy, Inc.		(13,520	)		(176,001	)
Great-West Lifeco, Inc.		(9,873	)		(281,758	)
Hydro One Ltd.		(25,017	)		(448,671	)
IGM Financial, Inc.		(23,386	)		(787,068	)
Intact Financial Corp.		(3,900	)		(302,960	)
Inter Pipeline Ltd.		(27,850	)		(549,963	)
International Petroleum Corp.		(11,534	)		(40,000	)
Just Energy Group, Inc.		(46,930	)		(251,824	)
Leon's Furniture Ltd.		(17,957	)		(259,831	)
Linamar Corp.		(4,680	)		(256,494	)
Medical Facilities Corp.		(25,576	)		(267,504	)
Metro, Inc.		(18,686	)		(632,933	)
MTY Food Group, Inc.		(17,580	)		(663,577	)
National Bank of Canada		(9,746	)		(438,932	)
Northview Apartment Real Estate Investment Trust		(6,814	)		(114,172	)
Novagold Resources, Inc.		(109,082	)		(486,462	)
Points International Ltd.		(7,840	)		(64,456	)
PrairieSky Royalty Ltd.		(15,100	)		(374,972	)
Premium Brands Holdings Corp.		(3,838	)		(277,149	)
Ritchie Bros Auctioneers, Inc.		(13,870	)		(391,597	)
Rogers Communications, Inc., Class B		(7,910	)		(411,314	)
Royal Bank of Canada		(3,107	)		(231,788	)
Russel Metals, Inc.		(16,550	)		(331,066	)
Shaw Communications, Inc., Class B		(20,383	)		(453,846	)
Sleep Country Canada Holdings, Inc.		(11,248	)		(342,199	)
Stantec, Inc.		(7,480	)		(190,307	)
Stella-Jones, Inc.		(22,716	)		(794,946	)
Student Transportation, Inc.		(35,231	)		(207,416	)
Surge Energy, Inc.		(135,690	)		(236,172	)
TFI International, Inc.		(7,432	)		(174,720	)

	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
Canada—(concluded)
The Descartes Systems Group, Inc.		(2,780	)	$	(69,748	)
The Jean Coutu Group PJC, Inc., Class A		(25,090	)		(418,183	)
Thomson Reuters Corp.		(9,410	)		(430,969	)
TransCanada Corp.		(9,530	)		(486,915	)
West Fraser Timber Co. Ltd.		(14,116	)		(750,098	)
WestJet Airlines Ltd.		(31,333	)		(624,524	)
Winpak Ltd.		(580	)		(24,903	)
Total Canada common stocks					(20,617,748	)
Curacao—(0.29)%
Schlumberger Ltd.		(27,897	)		(1,913,734	)
Finland—(0.07)%
Nokia OYJ		(76,054	)		(484,376	)
France—(0.08)%
SFR Group SA		(13,987	)		(521,571	)
Germany—(0.05)%
Commerzbank AG		(26,229	)		(344,033	)
Ireland—(0.24)%
Accenture PLC, Class A		(8,619	)		(1,110,299	)
Weatherford International PLC		(118,317	)		(527,694	)
Total Ireland common stocks					(1,637,993	)
Italy—(0.28)%
Saipem SpA		(198,977	)		(814,998	)
UniCredit SpA		(52,203	)		(1,028,318	)
Total Italy common stocks					(1,843,316	)
Japan—(0.45)%
Acom Co. Ltd.		(340,300	)		(1,450,778	)
Don Quijote Holdings Co. Ltd.		(10,500	)		(382,398	)
Isetan Mitsukoshi Holdings Ltd.		(39,600	)		(386,499	)
Japan Exchange Group, Inc.		(17,200	)		(309,068	)
Mitsubishi Estate Co. Ltd.		(27,200	)		(494,927	)
Total Japan common stocks					(3,023,670	)
Luxembourg—(0.10)%
Tenaris SA		(43,123	)		(683,546	)
Netherlands—(0.02)%
Mylan N.V.		(3,681	)		(143,522	)
Sweden—(0.22)%
Lundin Petroleum AB		(65,992	)		(1,501,490	)
United Kingdom—(0.30)%
Liberty Global PLC LiLAC, Class C		(9,544	)		(243,563	)
Rio Tinto PLC, ADR		(7,939	)		(376,150	)
Royal Bank of Scotland Group PLC		(420,624	)		(1,379,659	)
Total United Kingdom common stocks					(1,999,372	)
United States—(4.78)%
Armstrong World Industries, Inc.		(6,258	)		(303,826	)
Ball Corp.		(8,124	)		(340,396	)
Brinker International, Inc.		(7,184	)		(254,816	)

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	Number of shares			Value
Investments sold short—(continued)
Common stocks—(continued)
United States—(continued)
Buffalo Wild Wings, Inc.		(857	)	$	(92,128	)
CarMax, Inc.		(3,860	)		(255,725	)
Caterpillar, Inc.		(2,111	)		(240,548	)
CF Industries Holdings, Inc.		(39,462	)		(1,158,210	)
Charter Communications, Inc., Class A		(4,138	)		(1,621,724	)
Cheniere Energy, Inc.		(36,187	)		(1,635,652	)
Chico's FAS, Inc.		(13,984	)		(127,954	)
Continental Resources, Inc.		(28,004	)		(936,174	)
CPI Card Group, Inc.		(48,860	)		(144,137	)
Cracker Barrel Old Country Store, Inc.		(1,142	)		(177,524	)
D.R. Horton, Inc.		(7,820	)		(279,096	)
Domtar Corp.		(13,300	)		(519,498	)
Ennis, Inc.		(12,520	)		(241,010	)
Equinix, Inc.		(5,876	)		(2,648,489	)
Express, Inc.		(12,639	)		(76,592	)
Franklin Resources, Inc.		(7,218	)		(323,222	)
Halliburton Co.		(45,881	)		(1,947,190	)
Helmerich & Payne, Inc.		(11,636	)		(589,014	)
Hess Corp.		(21,811	)		(971,462	)
Insteel Industries, Inc.		(4,219	)		(111,044	)
KB Home		(13,880	)		(318,130	)
Legg Mason, Inc.		(13,800	)		(552,138	)
M&T Bank Corp.		(3,800	)		(619,970	)
Martin Marietta Materials, Inc.		(225	)		(50,947	)
Mattel, Inc.		(5,864	)		(117,397	)
Mercer International, Inc.		(13,918	)		(153,098	)
Nasdaq, Inc.		(5,575	)		(414,613	)
National Oilwell Varco, Inc.		(35,114	)		(1,148,579	)
NIKE, Inc., Class B		(17,590	)		(1,038,690	)
Nordstrom, Inc.		(4,704	)		(228,473	)
Palo Alto Networks, Inc.		(4,410	)		(581,150	)
Parsley Energy, Inc., Class A		(10,616	)		(310,836	)
Prestige Brands Holdings, Inc.		(2,786	)		(149,413	)
Ralph Lauren Corp.		(4,960	)		(375,224	)
Republic Services, Inc.		(2,900	)		(186,238	)
SBA Communications Corp.		(21,380	)		(2,940,819	)
TD Ameritrade Holding Corp.		(13,498	)		(617,264	)
Tesla, Inc.		(4,177	)		(1,351,134	)
The Boston Beer Co., Inc., Class A		(3,090	)		(484,512	)
The Charles Schwab Corp.		(17,500	)		(750,750	)
The Cheesecake Factory, Inc.		(3,863	)		(183,802	)
The Home Depot, Inc.		(2,360	)		(353,056	)
The Mosaic Co.		(7,400	)		(178,636	)
The Williams Cos., Inc.		(6,666	)		(211,845	)

	Number of shares			Value
Investments sold short—(concluded)
Common stocks—(concluded)
United States—(concluded)
Tiffany & Co.		(3,974	)	$	(379,557	)
Union Pacific Corp.		(6,280	)		(646,589	)
Urban Outfitters, Inc.		(13,790	)		(270,146	)
Vulcan Materials Co.		(750	)		(92,340	)
Wal-Mart Stores, Inc.		(9,323	)		(745,747	)
Waste Management, Inc.		(6,520	)		(489,978	)
WD-40 Co.		(2,005	)		(213,833	)
Weyerhaeuser Co.		(6,370	)		(210,337	)
Whirlpool Corp.		(3,130	)		(556,764	)
Zayo Group Holdings, Inc.		(1,698	)		(55,677	)
Total United States common stocks					(31,973,113	)
Total common stocks (proceeds—$64,113,861)					(67,249,649	)
Investment companies—(4.28)%
Consumer Discretionary Select Sector SPDR Fund		(13,310	)		(1,216,002	)
Consumer Staples Select Sector SPDR Fund		(23,981	)		(1,326,629	)
Health Care Select Sector SPDR Fund		(9,557	)		(763,509	)
Industrial Select Sector SPDR Fund		(28,235	)		(1,928,733	)
iShares Core S&P/TSX Capped Composite Index ETF		(146,514	)		(2,823,927	)
iShares iBoxx $ Investment Grade Corporate Bond ETF		(7,641	)		(925,401	)
iShares Russell 2000 ETF		(14,452	)		(2,045,103	)
iShares S&P/TSX 60 Index ETF		(166,846	)		(3,004,366	)
iShares S&P/TSX Capped Energy Index ETF		(30,144	)		(273,212	)
Powershares QQQ Trust, Series 1		(6,079	)		(870,695	)
SPDR Bloomberg Barclays High Yield Bond ETF		(37,956	)		(1,419,554	)
SPDR S&P Oil & Gas Exploration & Production ETF		(31,662	)		(1,029,648	)
SPDR S&P500 ETF Trust		(30,314	)		(7,480,586	)
Technology Select Sector SPDR Fund		(61,214	)		(3,498,992	)
Total investment companies (proceeds—$26,078,801)					(28,606,357	)
Total investments sold short (proceeds—$90,192,662)					(95,856,006	)
Other assets in excess of liabilities—6.96%					46,542,068
Net assets—100.00%				$	669,057,998

For a listing of defined portfolio acronyms, counterparty acronyms and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 260.

Aggregate cost for federal income tax purposes before investments sold short was $694,036,722; and net unrealized appreciation consisted of:

Gross unrealized appreciation	$	32,757,029
Gross unrealized depreciation		(8,421,815	)
Net unrealized appreciation	$	24,335,214

243

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Options written

Number of contracts		Call options	Expiration date	Premiums received		Current value			Unrealized appreciation (depreciation)
	1,265	Euro STOXX 50 Index, strike @ 4,000	09/15/17	$	76,147	$	(1,498	)	$	74,649
	1,030	Euro STOXX 50 Index, strike @ 4,100	09/15/17		30,490		(1,219	)		29,271
	1,030	Euro STOXX 50 Index, strike @ 4,100	12/15/17		111,020		(3,658	)		107,362
	2,350	Euro STOXX Banks Index, strike @ 160	09/15/17		83,603		(6,955	)		76,648
	2,350	Euro STOXX Banks Index, strike @ 160	12/15/17		182,081		(69,548	)		112,533
	6	S&P 500 Index, strike @ 2,475	09/15/17		14,389		(14,389	)		—
	58	S&P 500 Index, strike @ 2,650	09/15/17		3,408		(1,740	)		1,668
	102	Swiss Market Index, strike @ 8,796	09/15/17		23,377		(33,056	)		(9,679	)
	103	Swiss Market Index, strike @ 8,796	09/16/17		23,593		(33,560	)		(9,967	)
				$	548,108	$	(165,623	)	$	382,485
Number of contracts/ Notional amount		Put options	Expiration date	Premiums received		Current value			Unrealized appreciation (depreciation)
	6	S&P 500 Index, strike @ 2,475	09/15/17	$	18,529	$	(18,529	)	$	—
KRW	17,870,000	Kospi 200 Index, strike @ 308	09/14/17		127,841		(40,653	)		87,188
				$	146,370	$	(59,182	)	$	87,188
				$	694,478	$	(224,805	)	$	469,673

Options written activity for the year ended July 31, 2017 was as follows:

	Number of contracts			Premiums received
Options outstanding at July 31, 2016		367		$	683,064
Options written		17,242			3,882,334
Options exercised		—			—
Options terminated in closing purchase transactions		(8,941	)		(3,639,399	)
Options expired prior to exercise		(368	)		(359,362	)
Options outstanding at July 31, 2017		8,300		$	566,637

Options written activity for the year ended July 31, 2017 was as follows:

	Number of contracts			Premiums received
Options outstanding at July 31, 2016		—		$	—
Options written		35,740,000			206,206
Options exercised		—			—
Options terminated in closing purchase transactions		(17,870,000	)		(78,365	)
Options expired prior to exercise		—			—
Options outstanding at July 31, 2017		17,870,000		$	127,841

244

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Foreign exchange options written activity for the year ended July 31, 2017 was as follows:

	Premiums received
Foreign exchange options written outstanding at July 31, 2016	$	478,851
Foreign exchange options written		581,089
Foreign exchange options assigned		(258,209	)
Foreign exchange options terminated in closing purchase transactions		(801,731	)
Foreign exchange options expired prior to exercise		—
Foreign exchange options outstanding at July 31, 2017	$	—

Futures contracts

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
Index futures buy contracts:
	7	AUD	ASX SPI 200 Index Futures	September 2017	$	797,897	$	792,540	$	(5,357	)
	10	CAD	S&P TSX 60 Index Futures	September 2017		1,447,732		1,426,749		(20,983	)
	14	CHF	Swiss Market Index Futures*	September 2017		1,306,976		1,308,134		1,158
	8	EUR	Amsterdam Index Futures	August 2017		979,234		988,521		9,287
	37	EUR	CAC 40 Index Futures	August 2017		2,270,423		2,229,451		(40,972	)
	2	EUR	DAX Index Futures	September 2017		753,811		716,761		(37,050	)
	347	EUR	EURO STOXX 50 Index Futures	September 2017		14,588,833		14,159,543		(429,290	)
	4	EUR	FTSE MIB Index Futures	September 2017		500,381		508,561		8,180
	11	EUR	IBEX 35 Index Futures	August 2017		1,373,765		1,367,185		(6,580	)
	22	GBP	FTSE 100 Index Futures	September 2017		2,166,885		2,121,860		(45,025	)
	4	HKD	Hang Seng Index Futures	August 2017		686,798		697,189		10,391
	1	HKD	Hang Seng Index Futures*	August 2017		171,468		174,297		2,829
	11	HKD	Hang Seng Index Futures**	August 2017		1,890,864		1,917,268		26,404
	8	HKD	Hang Seng Index Futures	August 2017		553,058		554,770		1,712
	7	HKD	Hang Seng Index Futures*	August 2017		483,948		485,424		1,476
	16	HKD	Hang Seng Index Futures**	August 2017		1,107,189		1,109,541		2,352
	21	JPY	NIKKEI 225 Index Futures	September 2017		3,827,774		3,798,267		(29,507	)
	42	JPY	TOPIX Index Futures	September 2017		6,107,980		6,169,804		61,824
	9	KRW	Kospi 200 Index Futures	September 2017		619,485		633,149		13,664
	12	KRW	Kospi 200 Index Futures*	September 2017		826,919		844,198		17,279
	22	KRW	Kospi 200 Index Futures **	September 2017		1,514,004		1,547,697		33,693
	49	SEK	OMX 30 Index Futures	August 2017		979,726		937,663		(42,063	)
	31	SEK	OMX 30 Index Futures*	August 2017		619,091		593,215		(25,876	)
	1	SGD	MSCI Singapore Index Futures	August 2017		27,344		27,188		(156	)
	4	SGD	MSCI Singapore Index Futures**	August 2017		108,778		108,756		(22	)
	11	TWD	Taiex Futures Index Futures*	August 2017		752,363		754,450		2,087
	31	USD	Dow Jones E-Mini Index Futures	September 2017		3,289,540		3,385,510		95,970
	135	USD	Mini MSCI Emerging Markets (EM) Index Futures	September 2017		6,819,416		7,185,375		365,959
	13	USD	MSCI EAFE Mini Index Futures	September 2017		1,238,617		1,260,285		21,668
	33	USD	MSCI Emerging Markets Index Futures	September 2017		1,492,593		1,575,717		83,124
	7	USD	MSCI Taiwan Index Futures	August 2017		274,283		273,000		(1,283	)
	7	USD	MSCI Taiwan Index Futures*	August 2017		273,868		273,000		(868	)
	37	USD	MSCI Taiwan Index Futures**	August 2017		1,451,301		1,443,000		(8,301	)

245

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Portfolio of investments—July 31, 2017

Futures contracts—(continued)

Number of contracts		Currency		Expiration date	Cost		Current value		Unrealized appreciation (depreciation)
Index futures buy contracts—(concluded)
	33	USD	NASDAQ 100 E-Mini Index Futures	September 2017	$	3,804,811	$	3,882,450	$	77,639
	22	USD	Russell 2000 Mini Index Futures	September 2017		1,561,750		1,566,840		5,090
	27	USD	S&P 400 E-Mini Index Futures	September 2017		4,729,363		4,751,460		22,097
	179	USD	S&P 500 E-Mini Index Futures	September 2017		21,804,087		22,088,600		284,513
	13	USD	SGX 50 NIFTY Index Futures	August 2017		259,930		262,756		2,826
	40	USD	SGX 50 NIFTY Index Futures**	August 2017		800,758		808,480		7,722
	43	USD	SGX FTSE China A50 Index Futures	August 2017		514,553		509,550		(5,003	)
	56	USD	SGX FTSE China A50 Index Futures*	September 2017		668,362		663,600		(4,762	)
	4	ZAR	FTSE/JSE Africa Top 40 Tradeable Index Futures	September 2017		146,722		148,324		1,602
Interest rate futures buy contracts:
	276	AUD	Australian Bond 3 Year Futures	September 2017		24,798,196		24,673,501		(124,695	)
	225	GBP	United Kingdom Long Gilt Bond Futures	September 2017		37,848,466		37,410,941		(437,525	)
					$	158,239,342	$	158,134,570	$	(104,772	)
					Proceeds
US Treasury futures sell contracts:
	127	USD	US Long Bond Futures	September 2017	$	19,324,350	$	19,427,031	$	(102,681	)
	40	USD	US Treasury Note 10 Year Futures	September 2017		5,010,898		5,035,625		(24,727	)
	62	USD	US Treasury Note 2 Year Futures	September 2017		13,403,074		13,413,313		(10,239	)
	55	USD	US Treasury Note 5 Year Futures	September 2017		6,473,543		6,498,164		(24,621	)
	12	USD	US Ultra Long Treasury Bond Futures	September 2017		1,955,809		1,974,000		(18,191	)
	128	USD	US Ultra Treasury Note 10 Year Futures	September 2017		17,258,746		17,286,000		(27,254	)
Index futures sell contracts:
	11	AUD	ASX SPI 200 Index Futures	September 2017		1,259,825		1,245,420		14,405
	25	BRL	Ibovespa Index Futures*	August 2017		499,367		523,674		(24,307	)
	36	GBP	FTSE 100 Index Futures	September 2017		3,537,370		3,472,134		65,236
	5	HKD	Hang Seng Index Futures	August 2017		858,462		871,486		(13,024	)
	27	JPY	TOPIX Index Futures	September 2017		3,916,397		3,966,302		(49,905	)
	208	USD	Russell 2000 Mini Index Futures	September 2017		14,652,025		14,813,760		(161,735	)
	244	USD	S&P 500 E-Mini Index Futures	September 2017		29,667,208		30,109,600		(442,392	)
Interest rate futures sell contracts:
	32	AUD	Australian Bond 10 Year Futures	September 2017		3,288,972		3,301,237		(12,265	)
	154	AUD	Australian Bond 3 Year Futures	September 2017		13,763,173		13,767,099		(3,926	)
	15	CAD	Canada Government Bond 10 Year Futures	September 2017		1,675,777		1,651,775		24,002
	2	CAD	Canadian Bankers Acceptance Futures	December 2017		395,030		395,007		23
	10	CAD	Canadian Bankers Acceptance Futures	March 2018		1,977,281		1,972,930		4,351
	11	CHF	3 month Euroswiss Interest Rate Futures	December 2017		2,865,502		2,864,186		1,316
	8	CHF	3 month Euroswiss Interest Rate Futures	March 2018		2,083,335		2,082,424		911
	8	CHF	3 month Euroswiss Interest Rate Futures	June 2018		2,082,352		2,081,597		755
	12	EUR	3 Month EURIBOR Futures	December 2017		3,561,756		3,562,588		(832	)
	32	EUR	3 Month EURIBOR Futures	March 2018		9,494,321		9,497,867		(3,546	)
	37	EUR	3 Month EURIBOR Futures	June 2018		10,972,332		10,978,077		(5,745	)
	44	EUR	3 Month EURIBOR Futures	September 2018		13,040,689		13,049,150		(8,461	)
	51	EUR	3 Month EURIBOR Futures	December 2018		15,105,682		15,115,341		(9,659	)
	62	EUR	3 Month EURIBOR Futures	March 2019		18,351,661		18,364,503		(12,842	)

246

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Portfolio of investments—July 31, 2017

Futures contracts—(concluded)

Number of contracts		Currency		Expiration date	Proceeds		Current value		Unrealized appreciation (depreciation)
Interest rate futures sell contracts—(concluded)
	41	EUR	3 Month EURIBOR Futures	June 2019	$	12,128,540	$	12,135,774	$	(7,234	)
	262	EUR	German Euro BOBL Futures	September 2017		41,105,232		40,959,162		146,070
	133	EUR	German Euro Bund Futures	September 2017		25,745,626		25,498,291		247,335
	10	EUR	German Euro Buxl 30 Year Futures	September 2017		1,957,146		1,919,177		37,969
	17	EUR	German Euro Schatz Futures*	September 2017		2,251,996		2,255,365		(3,369	)
	3	EUR	Mid-Term Euro-OAT Futures	September 2017		527,704		528,377		(673	)
	29	GBP	90-Day Sterling Pound Futures	December 2017		4,759,871		4,763,217		(3,346	)
	37	GBP	90-Day Sterling Pound Futures	March 2018		6,067,720		6,073,547		(5,827	)
	35	GBP	90-Day Sterling Pound Futures	June 2018		5,735,516		5,741,783		(6,267	)
	37	GBP	90-Day Sterling Pound Futures	September 2018		6,060,251		6,066,834		(6,583	)
	36	GBP	90-Day Sterling Pound Futures	December 2018		5,894,948		5,899,897		(4,949	)
	34	GBP	90-Day Sterling Pound Futures	March 2019		5,564,858		5,569,321		(4,463	)
	36	GBP	90-Day Sterling Pound Futures	June 2019		5,889,485		5,893,960		(4,475	)
	22	GBP	United Kingdom Long Gilt Bond Futures	September 2017		3,639,276		3,657,959		(18,683	)
	5	JPY	Japan Government Bond 10 Year Futures	September 2017		6,817,448		6,810,286		7,162
	123	JPY	JGB MINI 10 Year Futures	September 2017		16,761,801		16,751,073		10,728
	76	USD	90-Day Eurodollar Futures	December 2017		18,726,587		18,724,500		2,087
	67	USD	90-Day Eurodollar Futures	March 2018		16,490,485		16,493,725		(3,240	)
	52	USD	90-Day Eurodollar Futures	June 2018		12,783,629		12,793,300		(9,671	)
	51	USD	90-Day Eurodollar Futures	September 2018		12,523,704		12,538,988		(15,284	)
	46	USD	90-Day Eurodollar Futures	December 2018		11,277,136		11,300,476		(23,340	)
	40	USD	90-Day Eurodollar Futures	March 2019		9,784,557		9,821,500		(36,943	)
	39	USD	90-Day Eurodollar Futures	June 2019		9,563,210		9,571,088		(7,878	)
					$	458,531,663	$	459,087,890	$	(556,227	)
									$	(660,999	)

*  Exposure to Futures Contracts is achieved through the use of a swap contract with Bank of America N.A.

**  Exposure to Futures Contracts is achieved through the use of a swap contract with Goldman Sachs.

Forward foreign currency contracts

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
ANZ	AUD	6,849,159	USD	5,412,000	08/25/17	$	(65,792	)
ANZ	CHF	5,188,180	USD	5,470,000	08/25/17		97,123
ANZ	USD	10,882,000	NZD	14,733,483	08/25/17		178,229
BB	AUD	20,334,774	USD	15,734,038	09/20/17		(524,020	)
BB	CAD	1,940,000	USD	1,417,878	08/18/17		(138,584	)
BB	CAD	29,536,402	USD	22,822,082	09/20/17		(885,215	)
BB	CAD	480,000	USD	377,246	10/30/17		(8,187	)
BB	CHF	715,000	USD	745,292	10/13/17		2,478
BB	EUR	1,561,000	USD	1,705,256	08/18/17		(144,185	)
BB	EUR	875,274	USD	995,682	09/20/17		(43,173	)

247

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Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
BB	GBP	3,062,681	USD	3,948,616	08/18/17	$	(94,400	)
BB	GBP	19,744,072	USD	25,546,099	09/20/17		(547,076	)
BB	JPY	1,051,070,915	USD	9,466,637	09/20/17		(88,256	)
BB	JPY	126,734,653	USD	1,163,568	09/20/17		11,471
BB	KRW	5,100,000,000	USD	4,432,277	10/20/17		(128,992	)
BB	MYR	420,000	USD	97,357	10/30/17		(394	)
BB	NOK	96,565,467	USD	11,535,337	09/20/17		(758,751	)
BB	NZD	12,756,228	USD	9,328,471	09/20/17		(243,036	)
BB	SEK	17,235,110	USD	2,048,126	09/20/17		(92,428	)
BB	SEK	2,400,000	USD	289,087	10/30/17		(9,651	)
BB	SGD	2,777,281	USD	2,008,136	09/20/17		(42,685	)
BB	USD	12,694,500	AUD	16,384,009	09/20/17		404,842
BB	USD	2,576,942	AUD	3,209,583	09/20/17		(10,816	)
BB	USD	27,137,595	CAD	35,067,019	09/20/17		1,008,834
BB	USD	63,418	CZK	1,485,000	08/24/17		4,084
BB	USD	9,665,814	EUR	8,528,797	09/20/17		456,937
BB	USD	26,484,302	GBP	20,492,180	09/20/17		597,550
BB	USD	181,044	HUF	49,500,000	08/24/17		11,863
BB	USD	12,017,471	JPY	1,310,114,626	09/20/17		(107,710	)
BB	USD	11,411,906	JPY	1,276,397,792	09/20/17		191,346
BB	USD	2,400,681	NOK	20,301,530	09/20/17		183,978
BB	USD	18,288,852	NZD	25,328,827	09/20/17		716,378
BB	USD	26,623,036	SEK	228,119,710	09/20/17		1,708,821
BB	USD	410,478	SGD	567,601	09/20/17		8,654
BNP	BRL	1,400,000	USD	414,079	08/18/17		(33,501	)
BNP	DKK	2,200,000	USD	339,604	10/30/17		(12,334	)
BNP	GBP	320,000	USD	414,362	08/18/17		(8,067	)
BNP	GBP	1,230,000	USD	1,569,613	08/21/17		(54,258	)
BNP	GBP	1,328,400	USD	1,691,790	09/11/17		(63,226	)
BNP	GBP	113,560	USD	146,946	09/20/17		(3,132	)
BNP	GBP	165,532	USD	213,778	10/18/17		(5,187	)
BNP	INR	21,000,000	USD	322,370	10/30/17		(1,321	)
BNP	KRW	450,000,000	USD	402,649	08/18/17		482
BNP	KRW	1,915,000,000	USD	1,716,227	08/23/17		4,726
BNP	KRW	3,415,000,000	USD	3,037,310	09/07/17		(15,148	)
BNP	KRW	3,446,083,744	USD	3,072,800	09/20/17		(7,973	)
BNP	KRW	3,448,081,800	USD	3,063,600	10/20/17		(20,249	)
BNP	USD	4,525,434	BRL	14,600,000	08/18/17		142,184
BNP	USD	160	EUR	136	08/03/17		2
BNP	USD	1,437,705	INR	94,000,000	08/09/17		26,327
BNP	USD	3,563,100	INR	231,396,622	08/22/17		34,888
BNP	USD	2,001,113	INR	129,500,000	08/23/17		12,228
BNP	USD	6,318,381	INR	413,200,000	09/01/17		98,294
BNP	USD	2,983,358	INR	194,500,000	09/08/17		34,392
BNP	USD	3,573,800	INR	232,754,446	09/20/17		31,998

248

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Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
BNP	USD	3,563,100	INR	231,690,578	10/24/17	$	10,841
BNP	USD	115,652	INR	7,500,000	11/17/17		(308	)
BNP	USD	748,792	JPY	83,052,726	08/22/17		5,189
BNP	USD	328,208	JPY	36,029,853	08/22/17		(1,117	)
BNP	USD	748,792	JPY	82,949,136	09/20/17		5,267
BNP	USD	328,208	JPY	35,985,545	09/20/17		(1,077	)
BNP	USD	401,141	KRW	450,000,000	08/18/17		1,025
BNP	USD	80,850	PEN	264,500	11/17/17		(45	)
BNP	USD	147,465	RON	598,000	08/24/17		7,848
BNP	USD	166,050	RUB	10,100,000	11/17/17		(701	)
BNP	USD	180,272	THB	6,000,000	11/17/17		106
BOA	EUR	1,278,865	SEK	12,334,000	08/11/17		13,797
BOA	EUR	5,600,000	USD	6,319,257	08/24/17		(317,564	)
BOA	IDR	1,300,000,000	USD	95,835	10/30/17		(803	)
BOA	KRW	2,825,000,000	USD	2,482,971	08/03/17		(41,505	)
BOA	KRW	2,825,000,000	USD	2,515,203	10/26/17		(11,602	)
BOA	KRW	2,825,000,000	USD	2,525,794	11/03/17		(1,321	)
BOA	TWD	15,000,000	USD	499,251	09/11/17		1,638
BOA	USD	229,544	BRL	735,000	11/17/17		1,996
BOA	USD	61,719	CZK	1,440,000	08/24/17		3,737
BOA	USD	358,366	HUF	97,800,000	08/24/17		22,771
BOA	USD	1,301,908	IDR	17,440,000,000	08/24/17		4,175
BOA	USD	462,836	INR	30,150,000	08/24/17		5,847
BOA	USD	2,524,576	KRW	2,825,000,000	08/03/17		(100	)
BOA	USD	338,818	MXN	6,350,000	08/24/17		16,613
BOA	USD	332,806	MXN	6,340,000	10/17/17		19,064
BOA	USD	249,244	MYR	1,070,000	08/24/17		447
BOA	USD	125,646	MYR	535,000	08/24/17		(801	)
BOA	USD	149,373	RON	604,000	08/24/17		7,498
BOA	USD	747,143	THB	25,550,000	08/24/17		20,782
BOA	USD	300,218	TRY	1,092,000	08/24/17		7,732
BOA	USD	279,040	ZAR	3,750,000	08/24/17		4,486
BOA	USD	271,632	ZAR	3,590,000	08/24/17		(203	)
CITI	AUD	12,558,000	USD	9,336,857	09/20/17		(703,512	)
CITI	BRL	1,783,000	USD	529,767	09/20/17		(36,999	)
CITI	CAD	28,484,000	USD	21,181,469	09/20/17		(1,681,121	)
CITI	CHF	14,000	USD	14,486	09/20/17		(36	)
CITI	CLP	314,173,000	USD	470,788	09/20/17		(12,190	)
CITI	COP	71,869,000	USD	24,055	09/20/17		123
CITI	COP	2,366,726,000	USD	768,249	09/20/17		(19,883	)
CITI	EUR	640,642	SEK	6,167,000	08/09/17		5,460
CITI	EUR	1,628,442	SEK	15,660,265	10/16/17		12,291
CITI	EUR	2,472,730	SEK	23,700,000	11/03/17		8,918
CITI	EUR	22,069,000	USD	25,175,556	09/20/17		(1,017,937	)
CITI	EUR	199,219	USD	231,450	10/18/17		(5,360	)

249

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
CITI	GBP	113,220	USD	146,384	08/22/17	$	(3,096	)
CITI	GBP	11,454,000	USD	14,794,694	09/20/17		(342,570	)
CITI	HKD	2,740,000	USD	352,083	09/20/17		819
CITI	HUF	213,991,000	USD	782,651	09/20/17		(52,273	)
CITI	IDR	171,362,000	USD	12,704	09/20/17		(90	)
CITI	ILS	1,553,000	USD	435,931	09/20/17		(1,007	)
CITI	ILS	2,876,000	USD	816,219	09/20/17		7,054
CITI	INR	97,135,000	USD	1,489,400	09/20/17		(15,402	)
CITI	JPY	4,455,454,544	USD	39,876,686	09/20/17		(626,181	)
CITI	JPY	216,468,488	USD	1,981,057	09/20/17		13,224
CITI	KRW	6,454,669,080	USD	5,680,166	09/20/17		(90,257	)
CITI	MXN	14,743,000	USD	807,673	09/20/17		(14,006	)
CITI	MXN	15,858,000	USD	894,144	09/20/17		10,320
CITI	NOK	45,270,000	USD	5,374,009	09/20/17		(389,473	)
CITI	NZD	24,251,000	USD	17,644,486	09/20/17		(552,006	)
CITI	PHP	26,436,000	USD	525,033	09/20/17		2,186
CITI	PHP	51,650,000	USD	1,014,085	09/20/17		(7,441	)
CITI	PLN	3,164,000	USD	864,340	09/20/17		(15,573	)
CITI	SEK	23,700,000	EUR	2,472,252	08/03/17		(8,780	)
CITI	SEK	49,600,000	USD	5,734,119	09/20/17		(426,067	)
CITI	SGD	551,000	USD	398,417	09/20/17		(8,455	)
CITI	TRY	21,160,000	USD	5,775,271	09/20/17		(146,996	)
CITI	TWD	30,450,000	USD	1,015,353	09/20/17		4,790
CITI	TWD	29,396,000	USD	969,255	09/20/17		(6,328	)
CITI	USD	105,450	ARS	1,780,000	08/24/17		(5,880	)
CITI	USD	104,500	ARS	1,765,000	09/08/17		(6,646	)
CITI	USD	100,467	ARS	1,720,000	10/17/17		(7,262	)
CITI	USD	90,494	ARS	1,685,000	11/17/17		(670	)
CITI	USD	18,331,375	AUD	23,709,000	09/20/17		624,445
CITI	USD	491,234	AUD	611,000	09/20/17		(2,727	)
CITI	USD	2,289,209	BRL	7,518,000	09/20/17		100,552
CITI	USD	33,847,669	CAD	44,168,000	09/20/17		1,603,629
CITI	USD	571,224	CAD	711,000	09/20/17		(542	)
CITI	USD	3,829	CHF	3,702	09/20/17		11
CITI	USD	32,903	CHF	31,298	09/20/17		(436	)
CITI	USD	1,080,558	CLP	717,978,000	09/20/17		23,185
CITI	USD	87,158	CLP	56,414,000	09/20/17		(434	)
CITI	USD	806,924	COP	2,385,327,000	09/20/17		(12,597	)
CITI	USD	120,522	COP	365,112,000	09/20/17		1,063
CITI	USD	187,623	COP	570,000,000	11/17/17		914
CITI	USD	42,301	CZK	935,000	11/16/17		455
CITI	USD	1,688,261	EUR	1,440,500	08/24/17		18,943
CITI	USD	34,484,853	EUR	30,519,000	09/20/17		1,737,871
CITI	USD	8,410,166	GBP	6,482,000	09/20/17		156,251
CITI	USD	356,909	HKD	2,779,000	09/20/17		(647	)

250

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
CITI	USD	2,525,174	HUF	686,321,000	09/20/17	$	152,629
CITI	USD	122,914	HUF	31,900,000	11/17/17		1,895
CITI	USD	1,031,309	IDR	13,865,241,000	09/20/17		3,878
CITI	USD	11,817	IDR	158,156,000	09/20/17		(9	)
CITI	USD	328,562	IDR	4,430,000,000	11/17/17		90
CITI	USD	821,565	ILS	2,928,212	09/20/17		2,288
CITI	USD	1,431,757	ILS	5,063,788	09/20/17		(7,059	)
CITI	USD	2,783,772	INR	181,396,028	09/20/17		26,389
CITI	USD	44,031	INR	2,835,000	09/20/17		(111	)
CITI	USD	3,031,133	JPY	329,000,000	08/10/17		(45,873	)
CITI	USD	2,902,029	JPY	329,000,000	08/17/17		84,114
CITI	USD	3,646,350	JPY	398,804,945	08/22/17		(25,863	)
CITI	USD	4,998,857	JPY	554,196,000	09/20/17		39,133
CITI	USD	10,331,765	JPY	1,129,840,536	09/20/17		(60,808	)
CITI	USD	3,728,385	KRW	4,162,510,069	09/20/17		(7,132	)
CITI	USD	6,600,820	KRW	7,418,833,043	09/20/17		31,561
CITI	USD	5,577,216	MXN	104,325,000	09/20/17		237,191
CITI	USD	61,081	MXN	1,094,000	09/20/17		(109	)
CITI	USD	225,994	MXN	4,055,000	11/17/17		(2,015	)
CITI	USD	93,830	MYR	403,000	11/17/17		(94	)
CITI	USD	10,373,446	NOK	85,618,000	09/20/17		526,880
CITI	USD	25,187,193	NZD	35,203,000	09/20/17		1,227,022
CITI	USD	402,522	NZD	535,000	09/20/17		(1,090	)
CITI	USD	108,893	PEN	360,000	08/24/17		1,974
CITI	USD	109,190	PEN	360,000	09/08/17		1,525
CITI	USD	106,106	PEN	351,000	10/17/17		1,424
CITI	USD	608,120	PHP	30,333,000	09/20/17		(8,196	)
CITI	USD	44,942	PHP	2,278,000	09/20/17		112
CITI	USD	4,639,850	PLN	17,329,000	09/20/17		179,361
CITI	USD	103,107	RON	401,500	11/17/17		1,381
CITI	USD	9,714,849	SEK	81,021,000	09/20/17		347,743
CITI	USD	1,942,283	SGD	2,677,000	09/20/17		34,487
CITI	USD	153,020	TRY	560,000	08/24/17		4,903
CITI	USD	3,304,828	TRY	11,992,000	09/20/17		51,496
CITI	USD	113,749	TRY	415,000	11/17/17		534
CITI	USD	3,080,225	TWD	92,422,000	09/20/17		(12,959	)
CITI	USD	37,870	TWD	1,153,000	09/20/17		396
CITI	USD	2,720,659	ZAR	35,663,888	09/20/17		(36,010	)
CITI	USD	1,228,283	ZAR	16,395,112	09/20/17		5,882
CITI	USD	207,314	ZAR	2,735,000	11/17/17		(3,305	)
CITI	ZAR	10,010,000	USD	741,739	09/20/17		(11,778	)
CITI	ZAR	14,939,000	USD	1,134,211	09/20/17		9,656
DB	CAD	766,000	USD	581,212	09/20/17		(33,615	)
DB	EUR	2,472,389	SEK	23,700,000	08/03/17		8,619
DB	EUR	3,690,000	USD	4,142,800	09/20/17		(236,827	)

251

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
DB	EUR	2,730,000	USD	3,088,045	10/17/17	$	(156,911	)
DB	EUR	4,600,000	USD	5,279,383	10/30/17		(192,015	)
DB	GBP	1,328,400	USD	1,696,201	09/01/17		(58,213	)
DB	HKD	17,400,000	USD	2,237,554	08/18/17		8,915
DB	PLN	1,737,000	USD	476,609	09/20/17		(6,453	)
DB	RUB	7,900,000	USD	127,389	10/30/17		(2,377	)
DB	SEK	2,706,000	USD	330,081	09/20/17		(5,997	)
DB	USD	954,757	BRL	3,170,000	08/24/17		57,530
DB	USD	73,930	CAD	95,000	09/20/17		2,321
DB	USD	231,982	COP	684,000,000	08/24/17		(3,489	)
DB	USD	233,187	COP	690,000,000	09/08/17		(3,081	)
DB	USD	227,990	COP	672,000,000	10/17/17		(4,927	)
DB	USD	1,666,042	EUR	1,419,000	08/24/17		15,681
DB	USD	440,975	EUR	384,000	09/20/17		14,793
DB	USD	149,290	RON	605,000	08/24/17		7,841
DB	USD	311,652	SEK	2,706,000	09/20/17		24,426
GS	KRW	3,437,573,652	USD	3,063,600	08/22/17		(8,655	)
GSI	AUD	5,005,325	MXN	69,349,772	09/20/17		(136,745	)
GSI	AUD	3,359,219	USD	2,550,000	08/22/17		(136,720	)
GSI	AUD	3,360,560	USD	2,550,000	09/20/17		(136,835	)
GSI	AUD	3,263,060	USD	2,550,000	10/20/17		(57,810	)
GSI	CAD	13,788,672	USD	10,968,823	08/25/17		(94,967	)
GSI	EUR	117,805	USD	133,036	08/22/17		(6,567	)
GSI	EUR	24,776,572	USD	28,473,608	08/25/17		(891,774	)
GSI	EUR	118,159	USD	133,644	09/20/17		(6,598	)
GSI	EUR	117,805	USD	135,724	10/20/17		(4,325	)
GSI	GBP	4,194,004	USD	5,470,000	08/25/17		(67,735	)
GSI	GBP	113,220	USD	148,335	10/20/17		(1,441	)
GSI	NOK	43,538,550	USD	5,356,811	08/25/17		(183,249	)
GSI	SEK	36,575,367	USD	4,404,389	08/25/17		(131,502	)
GSI	USD	4,862,533	CAD	6,316,742	08/22/17		205,687
GSI	USD	4,877,135	CAD	6,333,313	09/20/17		206,278
GSI	USD	5,470,000	CHF	5,165,436	08/25/17		(120,677	)
GSI	USD	1,122,503	EUR	1,000,000	09/20/17		64,388
GSI	USD	11,713,341	JPY	1,314,658,571	08/25/17		223,092
GSI	USD	4,723,350	JPY	529,002,919	10/20/17		92,576
GSI	USD	11,209,449	NOK	91,107,042	08/25/17		383,459
GSI	USD	5,332,378	NZD	7,272,350	08/25/17		126,878
GSI	USD	5,436,040	SEK	44,487,122	08/25/17		81,026
JPMCB	CHF	770,000	USD	768,640	08/18/17		(28,422	)
JPMCB	CHF	4,312,500	USD	4,480,617	10/19/17		(1,324	)
JPMCB	EUR	2,763,912	USD	3,251,017	10/30/17		(36,474	)
JPMCB	GBP	1,230,000	USD	1,571,348	08/24/17		(52,682	)
JPMCB	GBP	1,033,200	USD	1,319,293	09/08/17		(45,575	)
JPMCB	GBP	1,790,000	USD	2,354,172	11/17/17		(15,877	)

252

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(continued)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
JPMCB	JPY	309,000,000	USD	2,729,747	08/18/17	$	(74,987	)
JPMCB	MXN	2,700,000	USD	151,304	10/30/17		1,753
JPMCB	USD	63,206	CZK	1,480,000	08/24/17		4,068
JPMCB	USD	1,686,914	EUR	1,440,500	08/24/17		20,290
JPMCB	USD	131,723	EUR	112,465	10/18/17		1,963
JPMCB	USD	147,494	GBP	113,220	08/22/17		1,986
JPMCB	USD	148,071	GBP	113,560	09/20/17		2,007
JPMCB	USD	147,782	GBP	113,220	10/20/17		1,994
JPMCB	USD	341,758	MXN	6,450,000	08/24/17		19,270
JPMCB	USD	595,541	RUB	34,350,000	08/24/17		(23,461	)
JPMCB	USD	276,279	ZAR	3,610,000	08/24/17		(3,338	)
JPMCB	ZAR	3,600,000	USD	268,807	10/30/17		(478	)
MSCI	AUD	22,817,823	USD	17,331,194	09/20/17		(912,110	)
MSCI	CAD	34,725,689	USD	26,414,798	09/20/17		(1,457,665	)
MSCI	EUR	2,309,153	USD	2,650,495	09/20/17		(90,217	)
MSCI	GBP	9,682,449	USD	12,674,008	09/20/17		(122,028	)
MSCI	JPY	2,136,226,384	USD	19,451,159	09/20/17		31,525
MSCI	JPY	1,548,699,038	USD	13,875,416	09/20/17		(203,227	)
MSCI	NOK	297,840,385	USD	36,149,504	09/20/17		(1,769,596	)
MSCI	NZD	53,714,829	USD	38,377,454	09/20/17		(1,926,926	)
MSCI	SEK	427,242,990	USD	50,448,424	09/20/17		(2,614,013	)
MSCI	SGD	33,318,618	USD	24,237,970	09/20/17		(365,418	)
MSCI	USD	11,651,770	AUD	15,504,632	09/20/17		744,493
MSCI	USD	30,268,755	CAD	38,427,374	09/20/17		574,852
MSCI	USD	30,599,187	EUR	27,072,603	09/20/17		1,533,037
MSCI	USD	23,360,293	GBP	18,117,984	09/20/17		583,893
MSCI	USD	9,854,372	JPY	1,101,020,035	09/20/17		154,589
MSCI	USD	2,185,001	JPY	240,075,389	09/20/17		(2,565	)
MSCI	USD	9,421,649	NOK	78,558,147	09/20/17		579,863
MSCI	USD	37,680,290	NZD	51,935,356	09/20/17		1,288,881
MSCI	USD	1,272,356	NZD	1,693,854	09/20/17		(1,390	)
MSCI	USD	6,127,153	SEK	52,186,039	09/20/17		354,213
MSCI	USD	17,267,213	SGD	23,780,597	09/20/17		293,038
MSCI	USD	426,125	SGD	576,992	09/20/17		(58	)
RBS	AUD	2,630,000	USD	2,038,342	10/30/17		(63,225	)
RBS	CHF	2,512,500	USD	2,640,698	10/25/17		28,498
RBS	CHF	800,000	USD	830,617	10/30/17		(1,389	)
RBS	EUR	2,481,293	SEK	23,700,000	10/26/17		(1,331	)
RBS	EUR	10,684,561	USD	12,240,821	10/18/17		(459,816	)
RBS	EUR	1,594,530	USD	1,866,050	10/30/17		(30,539	)
RBS	JPY	253,611,731	USD	2,248,778	10/30/17		(61,122	)
RBS	NOK	1,000,000	USD	121,563	10/30/17		(5,846	)
RBS	SEK	1,800,000	USD	203,477	08/18/17		(19,664	)
RBS	SGD	450,000	USD	327,964	10/30/17		(4,529	)
RBS	USD	2,956,618	JPY	330,000,000	10/26/17		48,468

253

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Forward foreign currency contracts—(concluded)

Counterparty	Contracts to deliver		In exchange for		Maturity date	Unrealized appreciation (depreciation)
SG	AUD	7,325,680	USD	5,724,690	08/25/17	$	(134,213	)
SG	CAD	6,550,888	USD	4,862,533	08/22/17		(393,554	)
SG	CAD	6,567,119	USD	4,877,135	09/20/17		(393,941	)
SG	CHF	12,315,827	USD	12,823,644	08/25/17		69,379
SG	GBP	8,563,159	USD	11,210,006	08/25/17		(96,734	)
SG	USD	12,132,147	AUD	15,525,075	08/25/17		284,433
SG	USD	28,832	CHF	27,690	08/25/17		(156	)
SG	USD	9,177,375	GBP	7,010,462	08/25/17		79,194
						$	(3,420,967	)

Variance swap agreements⁹

Counterparty	Notional amount (000)		Termination date	Pay/ receive variance	Reference entity	Volatility strike price			Upfront payments received (made)		Value			Unrealized appreciation (depreciation)
BB	USD	3	08/18/17	Receive	S&P 500 Index		13.38	%	$	—	$	(15,136	)	$	(15,136	)
BB	USD	3	08/18/17	Receive	S&P 500 Index		13.50			—		(14,416	)		(14,416	)
BB	USD	3	08/18/17	Receive	S&P 500 Index		13.80			—		(13,942	)		(13,942	)
BB	USD	6	08/18/17	Receive	S&P 500 Index		14.00			—		(28,085	)		(28,085	)
BNP	GBP	10	12/21/18	Pay	FTSE 100 Index		20.15			—		55,804			55,804
BNP	HKD	95	12/28/18	Receive	Hang Seng China Enterprises Index		25.15			—		(26,559	)		(26,559	)
BNP	HKD	39	12/28/18	Receive	Hang Seng China Enterprises Index		25.45			—		(11,979	)		(11,979	)
BNP	HKD	97	12/28/18	Receive	Hang Seng China Enterprises Index		29.30			—		(79,634	)		(79,634	)
BNP	USD	12	12/21/18	Pay	S&P 500 Index		17.75			—		23,725			23,725
BNP	USD	5	12/21/18	Pay	S&P 500 Index		18.05			—		10,765			10,765
GS	EUR	2	12/15/17	Pay	DJ Euro Stoxx 50		25.60			—		1,213,974			1,213,974
GS	EUR	4	12/21/18	Receive	DJ Euro Stoxx 50		27.08			—		(2,177,145	)		(2,177,145	)
JPMCB	EUR	2	12/15/17	Pay	DJ Euro Stoxx 50		18.65			—		11,297			11,297
JPMCB	EUR	9	12/21/18	Receive	DJ Euro Stoxx 50		21.99			—		(30,451	)		(30,451	)
JPMCB	GBP	4	12/21/18	Pay	FTSE 100 Index		19.68			—		20,720			20,720
JPMCB	GBP	1	12/21/18	Pay	FTSE 100 Index		19.87			—		6,310			6,310
JPMCB	GBP	20	12/21/18	Pay	FTSE 100 Index		22.55			—		168,520			168,520
JPMCB	HKD	190	12/21/18	Receive	Hang Seng China Enterprises Index		31.55			—		(207,154	)		(207,154	)
JPMCB	HKD	38	12/28/18	Receive	Hang Seng China Enterprises Index		25.07			—		(10,629	)		(10,629	)
JPMCB	HKD	40	12/28/18	Receive	Hang Seng China Enterprises Index		25.40			—		(12,305	)		(12,305	)
JPMCB	HKD	60	12/28/18	Receive	Hang Seng China Enterprises Index		25.49			—		(19,073	)		(19,073	)
JPMCB	HKD	40	12/28/18	Receive	Hang Seng China Enterprises Index		25.87			—		(16,042	)		(16,042	)
JPMCB	HKD	44	12/28/18	Receive	Hang Seng China Enterprises Index		26.41			—		(20,877	)		(20,877	)
JPMCB	HKD	83	12/28/18	Receive	Hang Seng China Enterprises Index		27.09			—		(46,307	)		(46,307	)
JPMCB	HKD	100	12/28/18	Receive	Hang Seng China Enterprises Index		27.10			—		(55,731	)		(55,731	)
JPMCB	HKD	89	12/28/18	Receive	Hang Seng China Enterprises Index		27.89			—		(57,571	)		(57,571	)
JPMCB	HKD	89	12/28/18	Receive	Hang Seng China Enterprises Index		28.18			—		(60,553	)		(60,553	)
JPMCB	HKD	12	12/28/18	Receive	Hang Seng China Enterprises Index		29.26			—		(9,767	)		(9,767	)
JPMCB	HKD	40	12/28/18	Receive	Hang Seng China Enterprises Index		29.29			—		(32,645	)		(32,645	)

254

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Variance swap agreements⁹—(concluded)

Counterparty	Notional amount (000)		Termination date	Pay/ receive variance	Reference entity	Volatility strike price			Upfront payments received (made)		Value			Unrealized appreciation (depreciation)
JPMCB	USD	5	12/21/18	Pay	S&P 500 Index		17.67	%	$	—	$	9,465		$	9,465
JPMCB	USD	5	12/21/18	Pay	S&P 500 Index		18.00			—		11,100			11,100
JPMCB	USD	8	12/21/18	Pay	S&P 500 Index		18.09			—		17,114			17,114
JPMCB	USD	5	12/21/18	Pay	S&P 500 Index		18.37			—		14,231			14,231
JPMCB	USD	6	12/21/18	Pay	S&P 500 Index		18.41			—		16,413			16,413
JPMCB	USD	11	12/21/18	Pay	S&P 500 Index		19.09			—		37,718			37,718
JPMCB	USD	13	12/21/18	Receive	S&P 500 Index		19.15			—		45,623			45,623
JPMCB	USD	11	12/21/18	Pay	S&P 500 Index		19.24			—		42,751			42,751
JPMCB	USD	11	12/21/18	Pay	S&P 500 Index		19.43			—		44,714			44,714
SG	HKD	38	12/28/18	Receive	Hang Seng China Enterprises Index		25.00			—		(10,966	)		(10,966	)
SG	HKD	39	12/28/18	Receive	Hang Seng China Enterprises Index		26.05			—		(16,818	)		(16,818	)
SG	HKD	44	12/28/18	Receive	Hang Seng China Enterprises Index		27.60			—		(27,113	)		(27,113	)
SG	HKD	43	12/28/18	Receive	Hang Seng China Enterprises Index		27.85			—		(27,829	)		(27,829	)
SG	HKD	132	12/28/18	Receive	Hang Seng China Enterprises Index		27.90			—		(87,161	)		(87,161	)
SG	HKD	43	12/28/18	Receive	Hang Seng China Enterprises Index		27.95			—		(28,427	)		(28,427	)
SG	HKD	176	12/28/18	Receive	Hang Seng China Enterprises Index		28.05			—		(117,568	)		(117,568	)
SG	HKD	44	12/28/18	Receive	Hang Seng China Enterprises Index		28.15			—		(30,061	)		(30,061	)
SG	USD	5	12/21/18	Pay	S&P 500 Index		18.10			—		12,017			12,017
SG	USD	5	12/21/18	Pay	S&P 500 Index		18.30			—		13,987			13,987
SG	USD	23	12/21/18	Pay	S&P 500 Index		19.10			—		82,644			82,644
SG	USD	11	12/21/18	Pay	S&P 500 Index		19.20			—		41,373			41,373
SG	USD	6	12/21/18	Pay	S&P 500 Index		19.25			—		21,401			21,401
SG	USD	17	12/21/18	Pay	S&P 500 Index		19.30			—		64,532			64,532
SG	USD	6	12/21/18	Pay	S&P 500 Index		19.35			—		21,764			21,764
									$	—	$	(1,283,982	)	$	(1,283,982	)

Centrally cleared interest rate swap agreements

Notional amount (000)		Termination date	Payments made by the Portfolio10			Payments received by the Portfolio10			Value			Unrealized appreciation (depreciation)
AUD	55,215	05/20/21	6 Month AUD Bank Bill Rate				2.275	%	$	(128,690	)	$	(128,690	)
AUD	16,600	12/04/19	6 Month AUD Bank Bill Rate				2.650			143,361			143,361
AUD	4,056	12/14/19	6 Month AUD Bank Bill Rate				2.652			34,562			34,562
AUD	2,704	12/18/19	6 Month AUD Bank Bill Rate				2.650			22,277			22,277
AUD	4,056	12/18/19	6 Month AUD Bank Bill Rate				2.650			34,192			34,192
AUD	1,352	12/18/19	6 Month AUD Bank Bill Rate				2.650			11,397			11,397
AUD	5,278	05/13/21	6 Month AUD Bank Bill Rate				2.565			362			362
AUD	5,278	05/15/21	6 Month AUD Bank Bill Rate				2.500			(5,004	)		(5,004	)
AUD	7,917	05/17/21	6 Month AUD Bank Bill Rate				2.486			(9,270	)		(9,270	)
AUD	7,917	05/20/21	6 Month AUD Bank Bill Rate				2.357			(24,928	)		(24,928	)
AUD	11,510	05/23/21	6 Month AUD Bank Bill Rate				2.385			(31,927	)		(31,927	)
GBP	5,411	06/29/47		1.000	%		6 Month EURIBOR			33,173			33,173
GBP	5,400	07/05/47		1.000			6 Month EURIBOR			(25,211	)		(25,211	)

255

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Centrally cleared interest rate swap agreements—(concluded)

Notional amount (000)		Termination date	Payments made by the Portfolio10			Payments received by the Portfolio10			Value			Unrealized appreciation (depreciation)
USD	6,090	06/03/24		1.000	%		3 Month USD LIBOR		$	13,999		$	13,999
USD	6,960	06/05/24		1.000			3 Month USD LIBOR			16,465			16,465
USD	2,610	06/06/24		1.000			3 Month USD LIBOR			13,036			13,036
USD	1,740	06/07/24		1.000			3 Month USD LIBOR			6,668			6,668
USD	1,632	04/23/24		2.208			3 Month USD LIBOR			967			967
USD	6,527	04/23/24		2.225			3 Month USD LIBOR			(1,363	)		(1,363	)
USD	6,527	04/24/24		2.228			3 Month USD LIBOR			(2,169	)		(2,169	)
USD	1,714	04/25/24		2.278			3 Month USD LIBOR			(4,521	)		(4,521	)
USD	51,000	02/21/24		2.443			3 Month USD LIBOR			(600,005	)		(600,005	)
USD	30,000	02/15/24		2.480			3 Month USD LIBOR			(408,519	)		(408,519	)
USD	124,300	02/21/20		3 Month USD LIBOR			1.953	%		517,088			517,088
USD	3,994	04/23/21		3 Month USD LIBOR			2.000			1,574			1,574
USD	15,975	04/23/21		3 Month USD LIBOR			2.020			12,410			12,410
USD	15,975	04/24/21		3 Month USD LIBOR			2.020			12,155			12,155
USD	4,355	04/25/21		3 Month USD LIBOR			2.070			7,453			7,453
USD	14,980	06/03/21		3 Month USD LIBOR			1.985			(4,523	)		(4,523	)
USD	17,120	06/05/21		3 Month USD LIBOR			1.985			(5,712	)		(5,712	)
USD	6,420	06/06/21		3 Month USD LIBOR			1.929			(9,105	)		(9,105	)
USD	4,280	06/07/21		3 Month USD LIBOR			1.955			(3,923	)		(3,923	)
									$	(383,731	)	$	(383,731	)

Centrally cleared credit default swap agreements on credit indices—buy protection¹¹

Referenced obligations	Notional amount (000)		Termination date	Payments made by the Portfolio10			Upfront payments received (made)		Value			Unrealized depreciation
CDX Investment Grade 28 Index	USD	4,425	06/20/22		1.000	%	$	89,726	$	(94,397	)	$	(4,671	)
iTraxx Europe Main Series 26 Index	EUR	7,255	06/20/22		1.000			88,284		(207,126	)		(118,842	)
							$	178,010	$	(301,523	)	$	(123,513	)

Centrally cleared credit default swap agreements on credit indices—sell protection¹³

Referenced obligations	Notional amount (000)		Termination date	Payments received by the Portfolio10			Upfront payments received (made)			Value		Unrealized appreciation		Credit spread12
CDX Investment Grade 28 Index	USD	40,560	06/20/22		1.000	%	$	(606,171	)	$	849,669	$	243,498		0.57	%
CDX North America High Yield 28 Index	USD	7,419	06/20/22		5.000			(432,660	)		609,177		176,517		3.21
CDX North America High Yield 28 Index	USD	15,300	06/20/22		5.000			(1,039,168	)		1,259,700		220,532		3.20
							$	(2,077,999	)	$	2,718,546	$	640,547

256

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Total return swap agreements

Counterparty	Notional amount (000)		Termination date	Payments made by the Portfolio10	Payments received by the Portfolio10	Upfront payments received (made)		Value			Unrealized appreciation (depreciation)
BNP	USD	3,875	12/12/17	BMF Ibovespa Volatility Index	3 Month USD LIBOR minus 25 bps	$	—	$	(483,956	)	$	(483,956	)
BNP	USD	1,631	03/07/18	BNPPAISB Index	3 Month USD LIBOR minus 22 bps		75,242		(104,862	)		(29,620	)
BNP	JPY	930	06/26/18	3 Month ICE JPY LIBOR minus 1 bps	TOPIX Banks Index		—		(14,172	)		(14,172	)
BNP	USD	2	07/25/18	1 Month USD LIBOR plus 58 bps	RUGL		—		61,877			61,877
BOA	CHF	—	09/20/17	1 Month ICE CHF LIBOR plus 3 bps	MSCI Switzerland Net Total Return Index		—		854			854
BOA	CHF	266	09/20/17	MSCI Switzerland Net Total Return Index	1 Month ICE CHF LIBOR plus 3 bps		—		30			30
CITI	USD	3,813	08/30/17	IXRTR	1 Month USD LIBOR plus 10 bps		—		3,620			3,620
CITI	USD	4,009	11/16/17	IXRTR	1 Month USD LIBOR plus 10 bps		—		(38,869	)		(38,869	)
CITI	USD	1	11/29/17	1 Month USD LIBOR plus 52 bps	RUGL		—		17,328			17,328
CITI	EUR	53	06/14/18	3 Month EURIBOR plus 10 bps	Euro STOXX Banks Index		—		302,334			302,334
CITI	EUR	6,891	06/14/18	Euro STOXX Banks Index	3 Month EURIBOR plus 10 bps		—		2,410			2,410
GS	SGD	—	09/20/17	1 Month SGD SIBOR plus 5 bps	MSCI Singapore SGD Net Total Return Index		—		871			871
GS	SGD	—	09/20/17	1 Month SGD SIBOR plus 5 bps	MSCI Singapore SGD Net Total Return Index		—		245			245
GS	SGD	—	09/20/17	1 Month SGD SIBOR plus 5 bps	MSCI Singapore SGD Net Total Return Index		—		1,345			1,345
GS	SGD	—	09/20/17	1 Month SGD SIBOR plus 5 bps	MSCI Singapore SGD Net Total Return Index		—		134			134
JPMCB	USD	724	04/19/18	Samsung Electronics Co Ltd., common stock	1 Month USD LIBOR plus 25 bps		—		35,608			35,608
						$	75,242	$	(215,203	)	$	(139,961	)

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)		Other significant observable inputs (Level 2)		Unobservable inputs (Level 3)		Total
Common stocks	$	269,572,414	$	506,700	$	—	$	270,079,114
Preferred stock		864,707		—		—		864,707
Warrant		2,541		—		—		2,541

257

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Fair valuation summary—(concluded)

Assets Description	Unadjusted quoted prices in active markets for identical investments (Level 1)			Other significant observable inputs (Level 2)			Unobservable inputs (Level 3)		Total
Investment companies	$	70,564,158		$	—		$	—	$	70,564,158
US government obligations		—			46,585,855			—		46,585,855
Corporate notes		—			14,729,161			—		14,729,161
Non-US government obligations		—			3,968,096			—		3,968,096
Certificates of deposit		—			14,996,904			—		14,996,904
Time deposits		—			35,059,287			—		35,059,287
Short-term US government obligations		—			95,267,501			—		95,267,501
Repurchase agreement		—			156,232,000			—		156,232,000
Options purchased		2,754,227			166,364			—		2,920,591
Swaptions purchased		—			2,463,555			—		2,463,555
Foreign exchange options purchased		—			4,638,466			—		4,638,466
Futures contracts		1,722,896			—			—		1,722,896
Forward foreign currency contracts		—			21,660,613			—		21,660,613
Swap agreements		—			6,034,303			—		6,034,303
Total	$	345,480,943		$	402,308,805		$	—	$	747,789,748
Liabilities
Investments sold short	$	(95,856,006	)	$	—		$	—	$	(95,856,006	)
Options written		(117,536	)		(107,269	)		—		(224,805	)
Futures contracts		(2,383,895	)		—			—		(2,383,895	)
Forward foreign currency contracts		—			(25,081,580	)		—		(25,081,580	)
Swap agreements		—			(5,500,196	)		—		(5,500,196	)
Total	$	(98,357,437	)	$	(30,689,045	)	$	—	$	(129,046,482	)

At July 31, 2017, there were no transfers between Level 1 and Level 2.

Portfolio footnotes

*  Non-income producing security.

^†  Amount represents less than 0.005%.

¹  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

²  Security, or portion thereof, pledged as collateral for investments sold short, written options, futures and/or swap agreements.

³  Security is being fair valued by a valuation committee under the direction of the board of trustees.

⁴  Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

⁵  Variable or floating rate security. The interest rate shown is the current rate at the period end and changes periodically.

⁶  Perpetual investment. Date shown reflects the next call date.

⁷  Step bond—coupon rate increases in increments to maturity. The rate disclosed is the rate at the period end; the maturity date disclosed is the ultimate maturity date.

⁸  Rate shown is the discount rate at the date of purchase unless otherwise noted.

⁹  Illiquid investment at the period end.

¹⁰  Payments made or received are based on the notional amount.

258

PACE Alternative Strategies Investments

Portfolio of investments—July 31, 2017

Portfolio footnotes—(concluded)

¹¹  If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 underlying securities comprising 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 or underlying securities comprising the referenced obligation.

¹²  Credit spreads, 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 or other credit event occurring 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. Credit spreads are unaudited.

¹³  If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 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 or underlying securities comprising the referenced obligation.

See accompanying notes to financial statements.
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Portfolio acronyms:

ABS  Asset-backed Security

ADR  American Depositary Receipt

AGM  Assured Guaranty Municipal

AMBAC  American Municipal Bond Assurance Corporation

AMT  Alternative Minimum Tax

ARM  Adjustable Rate Mortgage

BOBL  Bundesobligationen

CJSC  Closed Joint Stock Company

CLO  Collateralized Loan Obligation

COFI  Cost of Funds Index

CVR  Contingent Value Right

DAC  Designated Activity Company

ETF  Exchange Traded Fund

EURIBOR  Euro Interbank Offered Rate

FHA  Federal Housing Administration

FHLB  Federal Home Loan Bank

FHLMC  Federal Home Loan Mortgage Corporation

FNMA  Federal National Mortgage Association

GDR  Global Depositary Receipt

GMAC  General Motors Acceptance Corporation

GMTN  Global Medium Term Note

GNMA  Government National Mortgage Association

GSAMP  Goldman Sachs Asset Mortgage Passthrough

GTD  Guaranteed

IO  Interest Only

JSC  Joint Stock Company

LIBOR  London Interbank Offered Rate

MGIC  Mortgage Guaranty Insurance Corporation

MTN  Medium Term Note

NVDR  Non-Voting Depository Receipt

OAT  Obligation Assimilables du Trésor (French Government Bonds)

PJSC  Private Joint Stock Company

PO  Principal Only

PSF  Permanent School Fund

RASC  Retirement Administration Service Center

REIT  Real Estate Investment Trust

REMIC  Real Estate Mortgage Investment Conduit

SBA  Small Business Administration

SPDR  Standard and 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.

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.

Currency type abbreviations:

ARS  Argentine Peso

AUD  Australian Dollar

BRL  Brazilian Real

CAD  Canadian Dollar

CHF  Swiss Franc

CLP  Chilean Peso

CNH  Chinese Yuan Renminbi

CNY  Chinese Yuan Renminbi

COP  Colombian Peso

CZK  Czech Koruna

DKK  Danish Krone

EUR  Euro

GBP  Great Britain Pound

HKD  Hong Kong Dollar

HUF  Hungarian Forint

IDR  Indonesian Rupiah

ILS  Israeli Shekel

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 Sol

PHP  Philippine Peso

PLN  Polish Zloty

RON  Romanian Leu

RUB  Russian Ruble

SEK  Swedish Krona

SGD  Singapore Dollar

THB  Thai Baht

TRY  Turkish Lira

TWD  Taiwan Dollar

USD  United States Dollar

ZAR  South African Rand

See accompanying notes to financial statements.
260

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Counterparty acronyms:

ANZ  Australia and New Zealand Banking Group

BB  Barclays Bank PLC

BNP  BNP Paribas

BOA  Bank of America

CBA  Commonwealth Bank of Australia

CITI  Citibank NA

CSI  Credit Suisse International

DB  Deutsche Bank AG

GS  Goldman Sachs

GSB  Goldman Sachs Bank USA

GSI  Goldman Sachs International

HSBC  HSBC Bank PLC

JPMCB  JPMorgan Chase Bank

MSCI  Morgan Stanley & Co. International PLC

NAB  National Australia Bank

NTC  Northern Trust Corporation

RBC  Royal Bank of Canada

RBS  Royal Bank of Scotland PLC

SCB  Standard Chartered Bank

SG  Societe Generale

SSC  State Street Bank and Trust Co.

TD  Toronto-Dominion Bank

WBC  Westpac Banking Corp.

See accompanying notes to financial statements.
261

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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, 2017 to July 31, 2017.

Actual expenses (unaudited)

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 (unaudited)

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.

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		Beginning account value February 1, 2017		Ending account value July 31, 2017		Expenses paid during period1 02/01/17 to 07/31/17		Expense ratio during the period
PACE Government Money Market Investments
Class P	Actual	$	1,000.00	$	1,001.10	$	2.98		0.60	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.82		3.01		0.60
PACE Mortgage-Backed Securities Fixed Income Investments
Class A	Actual		1,000.00		1,019.70		4.86		0.97
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.98		4.86		0.97
Class C	Actual		1,000.00		1,017.10		7.35		1.47
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.51		7.35		1.47
Class Y	Actual		1,000.00		1,021.70		3.61		0.72
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.22		3.61		0.72
Class P	Actual		1,000.00		1,020.90		3.61		0.72
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.22		3.61		0.72
PACE Intermediate Fixed Income Investments
Class A	Actual		1,000.00		1,022.90		4.66		0.93
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.18		4.66		0.93
Class C	Actual		1,000.00		1,020.20		7.16		1.43
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.70		7.15		1.43
Class Y	Actual		1,000.00		1,024.10		3.41		0.68
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.42		3.41		0.68
Class P	Actual		1,000.00		1,023.30		3.41		0.68
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.42		3.41		0.68
PACE Strategic Fixed Income Investments
Class A	Actual		1,000.00		1,035.30		5.25		1.04
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.64		5.21		1.04
Class C	Actual		1,000.00		1,033.50		7.76		1.54
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.16		7.70		1.54
Class Y	Actual		1,000.00		1,036.70		3.99		0.79
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.88		3.96		0.79
Class P	Actual		1,000.00		1,037.40		3.99		0.79
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.88		3.96		0.79
PACE Municipal Fixed Income Investments
Class A	Actual		1,000.00		1,033.90		4.29		0.85
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.58		4.26		0.85
Class C	Actual		1,000.00		1,031.30		6.80		1.35
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.10		6.76		1.35
Class Y	Actual		1,000.00		1,035.10		3.28		0.65
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.57		3.26		0.65
Class P	Actual		1,000.00		1,035.20		3.08		0.61
	Hypothetical (5% annual return before expenses)		1,000.00		1,021.77		3.06		0.61

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		Beginning account value February 1, 2017		Ending account value July 31, 2017		Expenses paid during period1 02/01/17 to 07/31/17		Expense ratio during the period
PACE Global Fixed Income Investments
Class A	Actual	$	1,000.00	$	1,048.40	$	5.79		1.14	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.14		5.71		1.14
Class C	Actual		1,000.00		1,044.90		8.21		1.62
	Hypothetical (5% annual return before expenses)		1,000.00		1,016.76		8.10		1.62
Class Y	Actual		1,000.00		1,048.40		5.08		1.00
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.84		5.01		1.00
Class P	Actual		1,000.00		1,048.20		4.93		0.97
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.98		4.86		0.97
PACE High Yield Investments
Class A	Actual		1,000.00		1,041.40		5.47		1.08
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.44		5.41		1.08
Class C	Actual		1,000.00		1,038.80		7.94		1.57
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.01		7.85		1.57
Class Y	Actual		1,000.00		1,042.30		4.41		0.87
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.48		4.36		0.87
Class P	Actual		1,000.00		1,041.00		4.71		0.93
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.18		4.66		0.93
PACE Large Co Value Equity Investments
Class A	Actual		1,000.00		1,047.80		7.21		1.42
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.75		7.10		1.42
Class C	Actual		1,000.00		1,043.60		11.10		2.19
	Hypothetical (5% annual return before expenses)		1,000.00		1,013.93		10.94		2.19
Class Y	Actual		1,000.00		1,049.00		5.94		1.17
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.99		5.86		1.17
Class P	Actual		1,000.00		1,049.20		6.05		1.19
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.89		5.96		1.19
PACE Large Co Growth Equity Investments
Class A	Actual		1,000.00		1,163.60		6.22		1.16
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.04		5.81		1.16
Class C	Actual		1,000.00		1,159.40		10.55		1.97
	Hypothetical (5% annual return before expenses)		1,000.00		1,015.03		9.84		1.97
Class Y	Actual		1,000.00		1,165.00		4.83		0.90
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.33		4.51		0.90
Class P	Actual		1,000.00		1,165.30		4.94		0.92
	Hypothetical (5% annual return before expenses)		1,000.00		1,020.23		4.61		0.92

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		Beginning account value February 1, 2017		Ending account value July 31, 2017		Expenses paid during period1 02/01/17 to 07/31/17		Expense ratio during the period
PACE Small/Medium Co Value Equity Investments
Class A	Actual	$	1,000.00	$	1,007.70	$	6.17		1.24	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.65		6.21		1.24
Class C	Actual		1,000.00		1,004.00		9.94		2.00
	Hypothetical (5% annual return before expenses)		1,000.00		1,014.88		9.99		2.00
Class Y	Actual		1,000.00		1,008.40		5.53		1.11
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.29		5.56		1.11
Class P	Actual		1,000.00		1,008.40		5.48		1.10
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.34		5.51		1.10
PACE Small/Medium Co Growth Equity Investments
Class A	Actual		1,000.00		1,115.60		6.19		1.18
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.94		5.91		1.18
Class C	Actual		1,000.00		1,112.10		10.16		1.94
	Hypothetical (5% annual return before expenses)		1,000.00		1,015.17		9.69		1.94
Class Y	Actual		1,000.00		1,116.00		5.88		1.12
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.24		5.61		1.12
Class P	Actual		1,000.00		1,115.80		5.51		1.05
	Hypothetical (5% annual return before expenses)		1,000.00		1,019.59		5.26		1.05
PACE International Equity Investments
Class A	Actual		1,000.00		1,135.80		9.69		1.83
	Hypothetical (5% annual return before expenses)		1,000.00		1,015.72		9.15		1.83
Class C	Actual		1,000.00		1,131.00		13.79		2.61
	Hypothetical (5% annual return before expenses)		1,000.00		1,011.85		13.02		2.61
Class Y	Actual		1,000.00		1,137.10		8.21		1.55
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.11		7.75		1.55
Class P	Actual		1,000.00		1,137.40		8.27		1.56
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.06		7.80		1.56
PACE International Emerging Markets Equity Investments
Class A	Actual		1,000.00		1,182.10		9.47		1.75
	Hypothetical (5% annual return before expenses)		1,000.00		1,016.12		8.75		1.75
Class C	Actual		1,000.00		1,178.00		13.50		2.50
	Hypothetical (5% annual return before expenses)		1,000.00		1,012.40		12.47		2.50
Class Y	Actual		1,000.00		1,183.40		8.12		1.50
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.36		7.50		1.50
Class P	Actual		1,000.00		1,183.50		8.12		1.50
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.36		7.50		1.50

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		Beginning account value February 1, 2017		Ending account value July 31, 2017		Expenses paid during period1 02/01/17 to 07/31/17		Expense ratio during the period
PACE Global Real Estate Securities Investments
Class A	Actual	$	1,000.00	$	1,054.90	$	7.49		1.47	%
	Hypothetical (5% annual return before expenses)		1,000.00		1,017.51		7.35		1.47
Class C	Actual		1,000.00		1,051.50		11.29		2.22
	Hypothetical (5% annual return before expenses)		1,000.00		1,013.79		11.08		2.22
Class Y	Actual		1,000.00		1,055.20		6.22		1.22
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.75		6.11		1.22
Class P	Actual		1,000.00		1,056.90		6.22		1.22
	Hypothetical (5% annual return before expenses)		1,000.00		1,018.75		6.11		1.22
PACE Alternative Strategies Investments
Class A	Actual		1,000.00		1,016.10		11.30		2.26
	Hypothetical (5% annual return before expenses)		1,000.00		1,013.59		11.28		2.26
Class C	Actual		1,000.00		1,012.10		15.07		3.02
	Hypothetical (5% annual return before expenses)		1,000.00		1,009.82		15.05		3.02
Class Y	Actual		1,000.00		1,017.20		10.45		2.09
	Hypothetical (5% annual return before expenses)		1,000.00		1,014.43		10.44		2.09
Class P	Actual		1,000.00		1,017.20		10.15		2.03
	Hypothetical (5% annual return before expenses)		1,000.00		1,014.73		10.14		2.03

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).

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Statement of assets and liabilities
July 31, 2017

	PACE Government Money Market Investments		PACE Mortgage-Backed Securities Fixed Income Investments		PACE Intermediate Fixed Income Investments		PACE Strategic Fixed Income Investments
Assets:
Investments, at value (cost—$152,266,120; $736,711,938; $444,661,137; $953,007,499; $362,109,770; $430,584,528 and $399,177,854 , respectively)1	$	152,266,120	$	739,077,043	$	447,201,139	$	964,490,567
Repurchase agreements, at value (cost—$48,034,000; $36,244,000; $6,009,000; $5,741,000; $1,772,000; $37,560,000 and $6,132,000, respectively)		48,034,000		36,244,000		6,009,000		5,741,000
Total investments in securities, at value (cost—$200,300,120; $772,955,938; $450,670,137; $958,748,499; $363,881,770; $468,144,528 and $405,309,854, respectively)	$	200,300,120	$	775,321,043	$	453,210,139	$	970,231,567
Cash		866		34,854		23,218		286,940
Cash collateral on futures		—		—		320,110		2,787,624
Cash collateral on swap agreements		—		967,000		230,120		929,000
Foreign currency, at value (cost—$0; $0; $191,531; $1,530,513; $0; $1,616,558 and $1,706,355, respectively)		—		—		195,147		1,544,936
Receivable for investments sold		—		980,093		1,383,700		4,605,964
Receivable for investments sold short		—		38,624,477		66,322,753		1,543,730
Receivable for shares of beneficial interest sold		159,161		451,991		297,730		631,363
Receivable for interest		61,583		1,411,452		2,173,325		5,953,222
Receivable for when issued TBA securities		—		304,972,059		12,281,453		87,613,393
Swap agreements, at value		—		4		—		—
Due from broker		—		—		55		60,291
Unrealized appreciation on forward foreign currency contracts		—		—		216,923		595,985
Receivable for variation margin on futures contracts		—		—		—		966,138
Receivable for foreign tax reclaims		—		—		302		16,434
Receivable for variation margin on centrally cleared swap agreements		—		203,765		2,253		568,171
Other assets		15,800		22,753		21,901		27,088
Total assets		200,537,530		1,122,989,491		536,679,129		1,078,361,846
Liabilities:
Payable for shares of beneficial interest repurchased		360,422		3,644,542		413,494		718,664
Dividends payable to shareholders		35,142		—		—		—
Payable to affiliate		6,143		197,279		147,068		377,208
Payable to custodian		5,906		32,675		29,283		79,088
Payable for when issued TBA securities		—		636,868,070		65,880,395		184,776,980
Investments sold short, at value (proceeds—$0; $34,950,023; $66,240,058; $1,543,730; $0; $0 and $0, respectively)		—		35,020,169		66,466,885		1,547,807
Due to broker		—		985,003		3,498		1,936,706
Payable for investments purchased		—		99,066		6,089,829		5,332,571
Options and swaptions written, at value (premiums received $0; $91,972; $380,397; $849,512; $0; $0 and $0, respectively)		—		53,491		214,530		148,787
Swap agreements, at value2		—		7,679		8,548		67,194
Payable for cash collateral from securities loaned		—		—		4,124,355		3,370,668
Unrealized depreciation on forward foreign currency contracts		—		—		178,437		967,792
Payable for dividend and interest expense on investments sold short		—		—		126,718		—
Payable for variation margin on futures contracts		—		—		6,260		—
Payable for foreign withholding taxes and foreign capital gains taxes		—		—		3,301		3,658
Payable for dollar roll transactions		—		—		—		47,115,731
Deferred payable for dollar roll transactions		—		—		—		14,754
Accrued expenses and other liabilities		544,558		469,745		404,806		514,164
Total liabilities		952,171		677,377,719		144,097,407		246,971,772

¹  Includes $0; $0; $4,041,437; $3,302,989; $0; $1,557,832 and $38,834,615, respectively, of investments in securities on loan, at value plus accrued interest and dividends, if any.

²  Net upfront payments received by PACE Mortgage-Backed Securities Fixed Income Investments, PACE Intermediate Fixed Income Investments and PACE Strategic Fixed Income Investments were $5,709, $22,339 and $463,909, respectively.

268

PACE Select Advisors Trust

	PACE Municipal Fixed Income Investments		PACE Global Fixed Income Investments		PACE High Yield Investments
Assets:
Investments, at value (cost—$152,266,120; $736,711,938; $444,661,137; $953,007,499; $362,109,770; $430,584,528 and $399,177,854 , respectively)1	$	375,354,015	$	443,962,378	$	413,969,519
Repurchase agreements, at value (cost—$48,034,000; $36,244,000; $6,009,000; $5,741,000; $1,772,000; $37,560,000 and $6,132,000, respectively)		1,772,000		37,560,000		6,132,000
Total investments in securities, at value (cost—$200,300,120; $772,955,938; $450,670,137; $958,748,499; $363,881,770; $468,144,528 and $405,309,854, respectively)	$	377,126,015	$	481,522,378	$	420,101,519
Cash		11,700		—		274,218
Cash collateral on futures		—		957,459		—
Cash collateral on swap agreements		—		—		—
Foreign currency, at value (cost—$0; $0; $191,531; $1,530,513; $0; $1,616,558 and $1,706,355, respectively)		—		1,649,648		1,718,663
Receivable for investments sold		1,839,473		1,903,903		3,354,993
Receivable for investments sold short		—		—		—
Receivable for shares of beneficial interest sold		135,559		257,401		215,706
Receivable for interest		4,389,962		3,234,237		6,148,293
Receivable for when issued TBA securities		—		—		—
Swap agreements, at value		—		—		—
Due from broker		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		3,362,539		241,528
Receivable for variation margin on futures contracts		—		308,695		—
Receivable for foreign tax reclaims		—		1,516		15,959
Receivable for variation margin on centrally cleared swap agreements		—		—		—
Other assets		21,258		21,902		25,922
Total assets		383,523,967		493,219,678		432,096,801
Liabilities:
Payable for shares of beneficial interest repurchased		195,204		785,294		551,699
Dividends payable to shareholders		—		—		—
Payable to affiliate		165,877		235,284		206,287
Payable to custodian		21,686		284,243		27,092
Payable for when issued TBA securities		—		—		—
Investments sold short, at value (proceeds—$0; $34,950,023; $66,240,058; $1,543,730; $0; $0 and $0, respectively)		—		—		—
Due to broker		—		126,914		—
Payable for investments purchased		3,429,409		39,842,578		4,091,523
Options and swaptions written, at value (premiums received $0; $91,972; $380,397; $849,512; $0; $0 and $0, respectively)		—		—		—
Swap agreements, at value2		—		—		—
Payable for cash collateral from securities loaned		—		1,588,508		39,105,815
Unrealized depreciation on forward foreign currency contracts		—		3,249,764		3,665,512
Payable for dividend and interest expense on investments sold short		—		—		—
Payable for variation margin on futures contracts		—		—		—
Payable for foreign withholding taxes and foreign capital gains taxes		—		21,216		387
Payable for dollar roll transactions		—		—		—
Deferred payable for dollar roll transactions		—		—		—
Accrued expenses and other liabilities		159,247		472,174		433,596
Total liabilities		3,971,423		46,605,975		48,081,911

See accompanying notes to financial statements.
269

PACE Select Advisors Trust

Statement of assets and liabilities (continued)
July 31, 2017

	PACE Government Money Market Investments			PACE Mortgage-Backed 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)	$	199,587,063		$	457,991,939		$	389,223,060		$	837,070,175
Accumulated undistributed (distributions in excess of) net investment income		—			521,882			1,236,003			8,560,371
Accumulated net realized gain (loss)		(1,704	)		(14,898,153	)		(424,755	)		(28,228,803	)
Net unrealized appreciation		—			1,996,104			2,547,414			13,988,331
Net assets	$	199,585,359		$	445,611,772		$	392,581,722		$	831,390,074
Class A
Net assets	$	—		$	36,238,923		$	16,884,143		$	13,605,061
Shares outstanding		—			2,819,415			1,368,421			984,941
Net asset value per share	$	—		$	12.85		$	12.34		$	13.81
Maximum offering price per share	$	—		$	13.35		$	12.82		$	14.35
Class C
Net assets	$	—		$	10,926,084		$	1,217,108		$	8,176,552
Shares outstanding		—			848,909			98,488			591,767
Net asset value and offering price per share	$	—		$	12.87		$	12.36		$	13.82
Class Y
Net assets	$	—		$	45,657,937		$	336,806		$	1,599,083
Shares outstanding		—			3,551,680			27,301			115,977
Net asset value, offering price and redemption value per share3	$	—		$	12.86		$	12.34		$	13.79
Class P
Net assets	$	199,585,359		$	352,788,828		$	374,143,665		$	808,009,378
Shares outstanding		199,585,861			27,433,499			30,320,811			58,528,706
Net asset value, offering price and redemption value per share3	$	1.00		$	12.86		$	12.34		$	13.81

³  Assumes shares were held a sufficient period or are otherwise not subject to a redemption fee.

270

PACE Select Advisors Trust

	PACE Municipal Fixed Income Investments		PACE Global Fixed Income Investments			PACE High Yield Investments
Net assets:
Beneficial interest shares of $0.001 par value (unlimited amount authorized)	$	365,816,397	$	485,426,672		$	382,256,019
Accumulated undistributed (distributions in excess of) net investment income		2,516		(37,835,408	)		779,282
Accumulated net realized gain (loss)		489,386		(14,882,885	)		(11,183,951	)
Net unrealized appreciation		13,244,245		13,905,324			12,163,540
Net assets	$	379,552,544	$	446,613,703		$	384,014,890
Class A
Net assets	$	46,784,279	$	38,367,520		$	4,251,289
Shares outstanding		3,578,110		3,822,993			422,383
Net asset value per share	$	13.08	$	10.04		$	10.07
Maximum offering price per share	$	13.38	$	10.43		$	10.46
Class C
Net assets	$	8,961,879	$	2,639,474		$	2,821,747
Shares outstanding		685,246		262,805			280,618
Net asset value and offering price per share	$	13.08	$	10.04		$	10.06
Class Y
Net assets	$	91,277	$	2,591,908		$	518,302
Shares outstanding		6,980		259,146			51,300
Net asset value, offering price and redemption value per share3	$	13.08	$	10.00		$	10.10
Class P
Net assets	$	323,715,109	$	403,014,801		$	376,423,552
Shares outstanding		24,748,523		40,162,135			37,307,381
Net asset value, offering price and redemption value per share3	$	13.08	$	10.03		$	10.09

See accompanying notes to financial statements.
271

PACE Select Advisors Trust

Statement of assets and liabilities (continued)
July 31, 2017

	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, at value (cost—$1,324,489,358; $938,947,928; $465,221,393; $443,906,665; $1,178,301,755; $391,459,621; $143,775,468 and $536,058,977, respectively)1	$	1,512,945,492	$	1,297,520,837	$	509,913,573	$	516,107,467
Repurchase agreements, at value (cost—$19,986,000; $34,082,000; $27,325,000; $9,001,000; $11,061,000; $4,025,000; $873,000 and $156,232,000, respectively)		19,986,000		34,082,000		27,325,000		9,001,000
Total investments in securities, at value (cost—$1,344,475,358; $973,029,928; $492,546,393; $452,907,665; $1,189,362,755; $395,484,621; $144,648,468 and $692,290,977, respectively)	$	1,532,931,492	$	1,331,602,837	$	537,238,573	$	525,108,467
Cash		39,198		43,700		18,428		—
Cash collateral on futures		—		—		—		—
Cash collateral on options		—		—		—		—
Cash collateral for forward foreign currency contracts		—		—		—		—
Cash collateral on swap agreements		—		—		—		—
Cash collateral on investments sold short		3,845,131		—		—		—
Foreign currency, at value (cost—$0; $0; $0; $0; $930,542; $888,888; $45,466 and $1,667,533, respectively)		—		—		—		—
Receivable for investments sold		13,646,342		6,154,051		5,945,783		6,286,527
Receivable for investments sold short		2,054,891		—		—		—
Receivable for shares of beneficial interest sold		636,216		483,216		301,359		242,277
Receivable for dividends and interest		1,142,851		217,468		200,983		28,170
Swap agreements, at value		—		—		—		—
Receivable for variation margin on futures contracts		—		—		—		—
Receivable for variation margin on centrally cleared swap agreements		—		—		—		—
Due from broker		—		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		—		—		—
Receivable for foreign tax reclaims		5,851		11,038		—		—
Other assets		33,082		31,097		22,203		21,173
Total assets		1,554,335,054		1,338,543,407		543,727,329		531,686,614
Liabilities:
Investments sold short, at value (proceeds—$157,884,924; $0; $0; $0; $140,573,714; $0; $0 and $90,192,662, respectively)		176,977,160		—		—		—
Payable for cash collateral from securities loaned		15,222,949		—		14,098,351		24,788,415
Payable for investments purchased		15,053,979		2,580,714		2,617,482		9,778,108
Payable for shares of beneficial interest repurchased		1,350,087		1,586,915		493,731		773,773
Payable to affiliate		867,479		876,448		365,602		328,340
Payable to custodian		87,012		85,557		34,326		190,286
Payable for dividend and interest expense on investments sold short		72,556		—		—		—
Payable for foreign withholding taxes and foreign capital gains taxes		—		—		4,631		—
Payable for bank loan		—		—		—		—
Deferred foreign capital gain taxes payable		—		—		—		—
Unrealized depreciation on forward foreign currency contracts		—		—		—		—
Swap agreements, at value2		—		—		—		—
Due to broker		—		—		—		—
Payable for variation margin on futures contracts		—		—		—		—
Options and swaptions written, at value (premiums received $0; $0; $0; $0; $0; $0; $0 and $694,478, respectively)		—		—		—		—
Accrued expenses and other liabilities		677,794		524,412		486,017		505,050
Total liabilities		210,309,016		5,654,046		18,100,140		36,363,972

¹  Includes $34,094,925; $31,932,517; $57,020,149; $134,064,735; $44,966,123; $5,822,292; $6,699,186 and $0, respectively, of investments in securities on loan, at value plus accrued interest and dividends, if any.

²  Net upfront payments received by PACE Alternative Strategies Investments were $75,242.

272

PACE Select Advisors Trust

	PACE International Equity Investments		PACE International Emerging Markets Equity Investments		PACE Global Real Estate Securities Investments		PACE Alternative Strategies Investments
Assets:
Investments, at value (cost—$1,324,489,358; $938,947,928; $465,221,393; $443,906,665; $1,178,301,755; $391,459,621; $143,775,468 and $536,058,977, respectively)1	$	1,302,070,226	$	463,267,371	$	143,480,893	$	562,139,936
Repurchase agreements, at value (cost—$19,986,000; $34,082,000; $27,325,000; $9,001,000; $11,061,000; $4,025,000; $873,000 and $156,232,000, respectively)		11,061,000		4,025,000		873,000		156,232,000
Total investments in securities, at value (cost—$1,344,475,358; $973,029,928; $492,546,393; $452,907,665; $1,189,362,755; $395,484,621; $144,648,468 and $692,290,977, respectively)	$	1,313,131,226	$	467,292,371	$	144,353,893	$	718,371,936
Cash		89,232		149,629		72,815		—
Cash collateral on futures		—		—		—		8,874,227
Cash collateral on options		—		—		—		535,507
Cash collateral for forward foreign currency contracts		—		—		—		2,472,020
Cash collateral on swap agreements		—		—		—		3,995,935
Cash collateral on investments sold short		11,170,977		—		—		39,879,835
Foreign currency, at value (cost—$0; $0; $0; $0; $930,542; $888,888; $45,466 and $1,667,533, respectively)		944,694		889,261		45,764		1,651,107
Receivable for investments sold		3,479,703		6,204,480		531,074		5,288,840
Receivable for investments sold short		410,322		—		—		815,829
Receivable for shares of beneficial interest sold		1,014,744		381,498		106,683		427,030
Receivable for dividends and interest		1,523,456		2,375,148		95,448		613,500
Swap agreements, at value		—		—		—		2,434,618
Receivable for variation margin on futures contracts		—		—		—		159,308
Receivable for variation margin on centrally cleared swap agreements		—		—		—		70,411
Due from broker		—		—		—		1,345,470
Unrealized appreciation on forward foreign currency contracts		—		—		—		21,660,613
Receivable for foreign tax reclaims		2,668,936		8,837		27,880		111,158
Other assets		101,696		20,802		10,253		31,094
Total assets		1,334,534,986		477,322,026		145,243,810		808,738,438
Liabilities:
Investments sold short, at value (proceeds—$157,884,924; $0; $0; $0; $140,573,714; $0; $0 and $90,192,662, respectively)		151,545,427		—		—		95,856,006
Payable for cash collateral from securities loaned		23,924,399		3,980,781		2,478,451		—
Payable for investments purchased		1,564,348		2,264,261		1,047,159		10,747,017
Payable for shares of beneficial interest repurchased		1,525,238		479,703		145,925		982,679
Payable to affiliate		828,732		427,425		59,026		788,990
Payable to custodian		179,492		139,989		21,094		248,875
Payable for dividend and interest expense on investments sold short		205,109		—		—		49,287
Payable for foreign withholding taxes and foreign capital gains taxes		102,884		360,732		64,563		3,787
Payable for bank loan		1,528,972		—		—		—
Deferred foreign capital gain taxes payable		—		996,706		—		—
Unrealized depreciation on forward foreign currency contracts		—		—		—		25,081,580
Swap agreements, at value2		—		—		—		3,933,803
Due to broker		—		—		—		463,164
Payable for variation margin on futures contracts		—		—		—		820,305
Options and swaptions written, at value (premiums received $0; $0; $0; $0; $0; $0; $0 and $694,478, respectively)		—		—		—		224,805
Accrued expenses and other liabilities		693,770		541,225		426,193		480,142
Total liabilities		182,098,371		9,190,822		4,242,411		139,680,440

See accompanying notes to financial statements.
273

PACE Select Advisors Trust

Statement of assets and liabilities (concluded)
July 31, 2017

	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)	$	1,084,378,172	$	880,130,103	$	428,546,997	$	407,314,822
Accumulated undistributed (distributions in excess of) net investment income		10,520,659		108,076		35,794		(1,762,888	)
Accumulated net realized gain (loss)		79,763,309		94,078,272		52,352,204		17,569,906
Net unrealized appreciation (depreciation)		169,363,898		358,572,910		44,692,194		72,200,802
Net assets	$	1,344,026,038	$	1,332,889,361	$	525,627,189	$	495,322,642
Class A
Net assets	$	117,222,568	$	45,095,006	$	17,626,941	$	22,681,176
Shares outstanding		4,945,221		1,791,017		843,337		1,350,943
Net asset value per share	$	23.70	$	25.18	$	20.90	$	16.79
Maximum offering price per share	$	25.08	$	26.65	$	22.12	$	17.77
Class C
Net assets	$	12,197,083	$	2,860,167	$	4,238,670	$	2,984,524
Shares outstanding		514,330		137,519		241,107		227,891
Net asset value and offering price per share	$	23.71	$	20.80	$	17.58	$	13.10
Class Y
Net assets	$	17,451,447	$	14,237,937	$	297,129	$	99,755
Shares outstanding		734,174		545,000		13,687		5,516
Net asset value, offering price and redemption value per share3	$	23.77	$	26.12	$	21.71	$	18.08
Class P
Net assets	$	1,197,154,940	$	1,270,696,251	$	503,464,449	$	469,557,187
Shares outstanding		50,607,280		48,985,526		23,448,541		26,343,572
Net asset value, offering price and redemption value per share3	$	23.66	$	25.94	$	21.47	$	17.82

³  Assumes shares were held a sufficient period or are otherwise not subject to a redemption fee.

274

PACE Select Advisors Trust

	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)	$	1,163,289,160		$	459,208,814		$	141,028,535		$	699,920,186
Accumulated undistributed (distributions in excess of) net investment income		13,975,215			5,513,473			979,609			(6,810,171	)
Accumulated net realized gain (loss)		(137,682,514	)		(67,605,899	)		(715,101	)		(39,619,354	)
Net unrealized appreciation (depreciation)		112,854,754			71,014,816			(291,644	)		15,567,337
Net assets	$	1,152,436,615		$	468,131,204		$	141,001,399		$	669,057,998
Class A
Net assets	$	31,113,443		$	4,082,171		$	457,873		$	8,702,213
Shares outstanding		1,917,478			300,389			59,549			812,761
Net asset value per share	$	16.23		$	13.59		$	7.69		$	10.71
Maximum offering price per share	$	17.17		$	14.38		$	8.14		$	11.33
Class C
Net assets	$	2,046,905		$	1,357,633		$	251,626		$	9,363,137
Shares outstanding		128,805			108,372			34,235			931,318
Net asset value and offering price per share	$	15.89		$	12.53		$	7.35		$	10.05
Class Y
Net assets	$	14,725,949		$	7,807,374		$	30,287		$	645,675
Shares outstanding		910,583			569,718			4,065			60,615
Net asset value, offering price and redemption value per share3	$	16.17		$	13.70		$	7.45		$	10.65
Class P
Net assets	$	1,104,550,318		$	454,884,026		$	140,261,613		$	650,346,973
Shares outstanding		68,461,122			33,366,562			18,896,040			61,281,372
Net asset value, offering price and redemption value per share3	$	16.13		$	13.63		$	7.42		$	10.61

See accompanying notes to financial statements.
275

PACE Select Advisors Trust

Statement of operations
For the year ended July 31, 2017

	PACE Government Money Market Investments			PACE Mortgage-Backed Securities Fixed Income Investments			PACE Intermediate Fixed Income Investments			PACE Strategic Fixed Income Investments
Investment income:
Dividends	$	—		$	—		$	—		$	10,920
Interest (net of foreign withholding taxes of $0; $15,168; $3,301; $30,792; $0; $36,065 and $1,193, respectively)		1,227,280			11,079,303			9,261,159			30,814,505
Securities lending income		—			—			9,707			16,575
		1,227,280			11,079,303			9,270,866			30,842,000
Expenses:
Investment management and administration fees		668,599			3,010,994			2,182,534			5,090,000
Service fees–Class A		—			96,275			44,217			33,442
Service and distribution fees–Class C		—			86,636			10,547			69,848
Transfer agency and related services fees		793,977			832,941			636,201			887,598
Custody and accounting fees		17,120			204,556			191,745			482,317
Professional fees		122,111			164,601			147,385			143,313
Interest expense		—			3,113			1,134			810,764
Reports and notices to shareholders		117,918			57,902			69,212			67,419
State registration fees		30,646			59,293			57,766			62,105
Trustees' fees		26,830			31,080			29,892			37,063
Insurance expense		4,575			13,037			10,959			22,589
Other expenses		35,295			16,333			30,262			41,969
		1,817,071			4,576,761			3,411,854			7,748,427
Fee waivers and/or expense reimbursements by investment manager and administrator		(817,609	)		(934,768	)		(556,870	)		(829,653	)
Net expenses		999,462			3,641,993			2,854,984			6,918,774
Net investment income		227,818			7,437,310			6,415,882			23,923,226
Net realized and unrealized gains (losses) from investment activities:
Net realized gains from:
Investments		(1,112	)		(2,189,070	)		(1,241,829	)		3,165,437
Futures		—			—			489,688			(5,303,576	)
Options and swaptions written		—			1,022,000			440,085			2,069,498
Investments sold short		—			(117,088	)		28,179			59,292
Swap agreements		—			681,047			286,132			(3,668,572	)
Forward foreign currency contracts		—			—			78,242			(2,937,899	)
Foreign currency transactions		—			—			(8,628	)		(319,329	)
Net realized gain (loss)		(1,112	)		(603,111	)		71,869			(6,935,149	)
Net change in unrealized appreciation/depreciation of:
Investments		—			(6,338,388	)		(3,186,132	)		(26,164,261	)
Futures		—			—			529,169			(1,312,225	)
Options and swaptions written		—			29,408			(47,564	)		224,717
Investments sold short		—			53,954			(226,827	)		(4,077	)
Swap agreements		—			1,360,221			351,557			23,690,004
Forward foreign currency contracts		—			—			104,609			1,139,778
Other assets and liabilities denominated in foreign currency		—			—			(85,242	)		46,700
Net change in unrealized appreciation/depreciation		—			(4,894,805	)		(2,560,430	)		(2,379,364	)
Net realized and unrealized gain (loss) from investment activities		(1,112	)		(5,497,916	)		(2,488,561	)		(9,314,513	)
Net increase in net assets resulting from operations	$	226,706		$	1,939,394		$	3,927,321		$	14,608,713

276

PACE Select Advisors Trust

	PACE Municipal Fixed Income Investments			PACE Global Fixed Income Investments			PACE High Yield Investments
Investment income:
Dividends	$	—		$	—		$	31,105
Interest (net of foreign withholding taxes of $0; $15,168; $3,301; $30,792; $0; $36,065 and $1,193, respectively)		12,941,292			10,963,228			26,923,764
Securities lending income		—			—			146,495
		12,941,292			10,963,228			27,101,364
Expenses:
Investment management and administration fees		2,076,799			3,715,349			3,328,593
Service fees–Class A		121,165			100,503			10,692
Service and distribution fees–Class C		71,479			20,522			22,578
Transfer agency and related services fees		144,426			833,454			664,954
Custody and accounting fees		132,790			454,979			176,900
Professional fees		131,132			184,395			179,034
Interest expense		—			29,510			—
Reports and notices to shareholders		21,644			105,446			68,041
State registration fees		56,240			57,276			54,525
Trustees' fees		29,438			31,459			37,117
Insurance expense		10,278			13,497			10,992
Other expenses		27,041			34,490			38,648
		2,822,432			5,580,880			4,592,074
Fee waivers and/or expense reimbursements by investment manager and administrator		(270,360	)		(938,080	)		(728,130	)
Net expenses		2,552,072			4,642,800			3,863,944
Net investment income		10,389,220			6,320,428			23,237,420
Net realized and unrealized gains (losses) from investment activities:
Net realized gains from:
Investments		804,680			(13,451,642	)		8,864,311
Futures		—			3,341,336			—
Options and swaptions written		—			—			—
Investments sold short		—			—			—
Swap agreements		—			—			—
Forward foreign currency contracts		—			(14,690,539	)		(3,656,666	)
Foreign currency transactions		—			466,560			3,413,895
Net realized gain (loss)		804,680			(24,334,285	)		8,621,540
Net change in unrealized appreciation/depreciation of:
Investments		(12,678,000	)		(6,721,975	)		14,017,717
Futures		—			(2,067,463	)		—
Options and swaptions written		—			—			—
Investments sold short		—			—			—
Swap agreements		—			—			—
Forward foreign currency contracts		—			(1,276,777	)		(1,648,667	)
Other assets and liabilities denominated in foreign currency		—			41,438			(406,104	)
Net change in unrealized appreciation/depreciation		(12,678,000	)		(10,024,777	)		11,962,946
Net realized and unrealized gain (loss) from investment activities		(11,873,320	)		(34,359,062	)		20,584,486
Net increase in net assets resulting from operations	$	(1,484,100	)	$	(28,038,634	)	$	43,821,906

See accompanying notes to financial statements.
277

PACE Select Advisors Trust

Statement of operations (concluded)
For the year ended July 31, 2017

	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:
Dividends (net of foreign withholding taxes of $103,347; $135,737; $22,822; $17,219; $3,036,238; $1,491,790; $135,016 and $267,749, respectively)	$	38,783,032		$	15,448,705		$	9,906,500		$	2,454,086
Interest (net of foreign withholding taxes of $0; $0; $0; $0; $0; $499; $0 and $50,235, respectively)		4,198			6,411			5,397			3,380
Securities lending income		106,279			123,063			194,162			284,284
		38,893,509			15,578,179			10,106,059			2,741,750
Expenses:
Investment management and administration fees		9,942,977			9,783,648			4,259,107			3,812,412
Service fees–Class A		291,265			106,251			44,443			54,930
Service and distribution fees–Class C		123,536			30,525			42,862			27,914
Transfer agency and related services fees		1,016,639			968,966			927,370			929,767
Dividend expense, interest expense and other borrowing costs for investments sold short		4,359,644			—			—			—
Custody and accounting fees		522,166			489,473			208,834			185,943
Professional fees		125,923			139,729			155,003			131,370
Reports and notices to shareholders		92,191			83,723			120,722			70,680
State registration fees		62,462			61,721			56,430			55,620
Trustees' fees		45,297			43,596			39,067			31,025
Insurance expense		35,321			33,185			14,225			12,832
Interest expense		1,945			1,382			1,127			4
Other expenses		65,677			50,703			33,220			27,989
		16,685,043			11,792,902			5,902,410			5,340,486
Fee waivers and/or expense reimbursements by investment manager and administrator		(167,285	)		(94,087	)		(110,252	)		(209,831	)
Net expenses		16,517,758			11,698,815			5,792,158			5,130,655
Net investment income (loss)		22,375,751			3,879,364			4,313,901			(2,388,905	)
Net realized and unrealized gains (losses) from investment activities:
Net realized gains from:
Investments (net of foreign tax expense of $0; $0; $0; $0; $0; $0; $38,498 and $0, respectively)		122,143,351			107,429,870			67,192,145			36,174,906
Futures		—			—			—			—
Options and swaptions written		—			—			—			—
Investments sold short		(19,390,606	)		—			—			—
Swap agreements		—			—			—			—
Forward foreign currency contracts		—			—			—			—
Foreign currency transactions		(611	)		—			(719	)		—
Net realized gain (loss)		102,752,134			107,429,870			67,191,426			36,174,906
Net change in unrealized appreciation/depreciation of:
Investments (net of change in deferred foreign capital gain taxes of $0; $0; $0; $0; $0; $593,510; $0 and $0, respectively)		77,409,064			85,272,003			5,245,649			42,237,611
Futures		—			—			—			—
Options and swaptions written		—			—			—			—
Investments sold short		(3,876,075	)		—			—			—
Swap agreements		—			—			—			—
Forward foreign currency contracts		—			—			—			—
Other assets and liabilities denominated in foreign currency		(1	)		—			14			—
Net change in unrealized appreciation/depreciation		73,532,988			85,272,003			5,245,663			42,237,611
Net realized and unrealized gain (loss) from investment activities		176,285,122			192,701,873			72,437,089			78,412,517
Net increase in net assets resulting from operations	$	198,660,873		$	196,581,237		$	76,750,990		$	76,023,612

278

PACE Select Advisors Trust

	PACE International Equity Investments			PACE International Emerging Markets Equity Investments			PACE Global Real Estate Securities Investments			PACE Alternative Strategies Investments
Investment income:
Dividends (net of foreign withholding taxes of $103,347; $135,737; $22,822; $17,219; $3,036,238; $1,491,790; $135,016 and $267,749, respectively)	$	35,853,425		$	11,819,812		$	5,313,654		$	5,868,554
Interest (net of foreign withholding taxes of $0; $0; $0; $0; $0; $499; $0 and $50,235, respectively)		10,598			4,643			289			4,194,617
Securities lending income		512,901			98,611			25,416			—
		36,376,924			11,923,066			5,339,359			10,063,171
Expenses:
Investment management and administration fees		9,004,835			4,641,059			1,128,572			9,563,271
Service fees–Class A		73,783			9,583			1,083			23,444
Service and distribution fees–Class C		20,077			12,872			2,831			107,774
Transfer agency and related services fees		942,165			852,111			659,621			532,234
Dividend expense, interest expense and other borrowing costs for investments sold short		4,043,409			—			—			2,809,149
Custody and accounting fees		969,960			780,931			99,570			492,373
Professional fees		164,791			196,906			162,407			191,655
Reports and notices to shareholders		74,178			63,338			51,610			103,221
State registration fees		61,945			56,776			51,914			67,591
Trustees' fees		39,419			29,961			25,461			34,330
Insurance expense		25,125			10,291			3,620			19,152
Interest expense		2,465			1,378			151			83,337
Other expenses		68,255			58,389			47,871			150,840
		15,490,407			6,713,595			2,234,711			14,178,371
Fee waivers and/or expense reimbursements by investment manager and administrator		(304,776	)		(361,044	)		(524,038	)		(651,152	)
Net expenses		15,185,631			6,352,551			1,710,673			13,527,219
Net investment income (loss)		21,191,293			5,570,515			3,628,686			(3,464,048	)
Net realized and unrealized gains (losses) from investment activities:
Net realized gains from:
Investments (net of foreign tax expense of $0; $0; $0; $0; $0; $0; $38,498 and $0, respectively)		46,834,149			13,184,777			5,910,546			23,685,172
Futures		—			—			—			2,468,209
Options and swaptions written		—			—			—			1,009,312
Investments sold short		(10,885,608	)		—			—			(11,309,952	)
Swap agreements		—			—			—			(5,718,639	)
Forward foreign currency contracts		125,266			29,834			—			3,491,542
Foreign currency transactions		(690,070	)		(277,161	)		(45,115	)		(909,690	)
Net realized gain (loss)		35,383,737			12,937,450			5,865,431			12,715,954
Net change in unrealized appreciation/depreciation of:
Investments (net of change in deferred foreign capital gain taxes of $0; $0; $0; $0; $0; $593,510; $0 and $0, respectively)		116,501,326			62,369,570			(9,846,764	)		10,212,311
Futures		—			—			—			(2,305,659	)
Options and swaptions written		—			—			—			540,965
Investments sold short		(8,189,216	)		—			—			(1,352,990	)
Swap agreements		—			—			—			3,746,372
Forward foreign currency contracts		—			—			—			(5,368,453	)
Other assets and liabilities denominated in foreign currency		91,697			5,054			(4,526	)		43,484
Net change in unrealized appreciation/depreciation		108,403,807			62,374,624			(9,851,290	)		5,516,030
Net realized and unrealized gain (loss) from investment activities		143,787,544			75,312,074			(3,985,859	)		18,231,984
Net increase in net assets resulting from operations	$	164,978,837		$	80,882,589		$	(357,173	)	$	14,767,936

See accompanying notes to financial statements.
279

PACE Select Advisors Trust

Statement of changes in net assets

	PACE Government Money Market Investments						PACE Mortgaged-Backed Securities Fixed Income Investments						PACE Intermediate Fixed Income Investments
	For the years ended July 31,						For the years ended July 31,						For the years ended July 31,
	2017			2016			2017			2016			2017			2016
From operations:
Net investment income	$	227,818		$	19,842		$	7,437,310		$	8,745,222		$	6,415,882		$	6,593,134
Net realized gain (loss)		(1,112	)		3,848			(603,111	)		10,624,481			71,869			2,026,860
Net change in unrealized appreciation/depreciation		—			—			(4,894,805	)		1,043,822			(2,560,430	)		4,537,087
Net increase (decrease) in net assets resulting from operations		226,706			23,690			1,939,394			20,413,525			3,927,321			13,157,081
Dividends and distributions to shareholders from:
Net investment income–Class A		—			—			(999,111	)		(1,006,916	)		(248,850	)		(263,010	)
Net investment income–Class C		—			—			(241,527	)		(215,766	)		(12,274	)		(15,891	)
Net investment income–Class Y		—			—			(1,357,824	)		(1,146,926	)		(6,037	)		(6,942	)
Net investment income–Class P		(227,818	)		(19,842	)		(10,920,203	)		(10,342,027	)		(6,505,074	)		(6,640,312	)
Net realized gains–Class A		—			—			—			—			(53,263	)		(131,084	)
Net realized gains–Class C		—			—			—			—			(4,338	)		(12,463	)
Net realized gains–Class Y		—			—			—			—			(1,117	)		(3,103	)
Net realized gains–Class P		—			(5,106	)		—			—			(1,190,266	)		(2,790,103	)
		(227,818	)		(24,948	)		(13,518,665	)		(12,711,635	)		(8,021,219	)		(9,862,908	)
From beneficial interest transactions:
Net proceeds from shares sold		279,769,071			256,831,799			90,902,809			108,709,216			60,949,841			83,092,551
Cost of shares repurchased		(263,332,595	)		(242,373,374	)		(156,678,233	)		(146,802,261	)		(103,374,812	)		(89,117,955	)
Proceeds from dividends reinvested		173,450			16,261			12,331,064			11,603,725			7,226,182			8,939,336
Net increase (decrease) in net assets from beneficial interest transactions		16,609,926			14,474,686			(53,444,360	)		(26,489,320	)		(35,198,789	)		2,913,932
Redemption fees		—			—			—			508			—			379
Net increase (decrease) in net assets		16,608,814			14,473,428			(65,023,631	)		(18,786,922	)		(39,292,687	)		6,208,484
Net assets:
Beginning of year		182,976,545			168,503,117			510,635,403			529,422,325			431,874,409			425,665,925
End of year	$	199,585,359		$	182,976,545		$	445,611,772		$	510,635,403		$	392,581,722		$	431,874,409
Accumulated undistributed (distributions in excess of) net investment income	$	—		$	—		$	521,882		$	591,116		$	1,236,003		$	1,920,184

280

PACE Select Advisors Trust

	PACE Strategic Fixed Income Investments						PACE Municipal Fixed Income Investments
	For the years ended July 31,						For the years ended July 31,
	2017			2016			2017			2016
From operations:
Net investment income	$	23,923,226		$	25,782,846		$	10,389,220		$	11,031,941
Net realized gain (loss)		(6,935,149	)		1,971,284			804,680			2,852,505
Net change in unrealized appreciation/depreciation		(2,379,364	)		20,739,782			(12,678,000	)		11,910,940
Net increase (decrease) in net assets resulting from operations		14,608,713			48,493,912			(1,484,100	)		25,795,386
Dividends and distributions to shareholders from:
Net investment income–Class A		(373,634	)		(352,102	)		(1,196,328	)		(1,292,121	)
Net investment income–Class C		(213,828	)		(234,401	)		(186,374	)		(207,063	)
Net investment income–Class Y		(57,890	)		(71,126	)		(2,088	)		(2,267	)
Net investment income–Class P		(25,022,010	)		(24,915,797	)		(8,998,907	)		(9,532,273	)
Net realized gains–Class A		(212,312	)		(91,459	)		(361,045	)		(255,997	)
Net realized gains–Class C		(152,383	)		(76,636	)		(70,658	)		(52,887	)
Net realized gains–Class Y		(30,485	)		(17,865	)		(500	)		(411	)
Net realized gains–Class P		(13,137,303	)		(6,082,217	)		(2,468,971	)		(1,721,048	)
		(39,199,845	)		(31,841,603	)		(13,284,871	)		(13,064,067	)
From beneficial interest transactions:
Net proceeds from shares sold		111,384,315			130,723,266			52,483,400			64,243,911
Cost of shares repurchased		(174,065,722	)		(215,705,066	)		(81,616,612	)		(85,572,394	)
Proceeds from dividends reinvested		36,180,494			29,443,249			11,312,647			11,190,519
Net increase (decrease) in net assets from beneficial interest transactions		(26,500,913	)		(55,538,551	)		(17,820,565	)		(10,137,964	)
Redemption fees		—			872			—			106
Net increase (decrease) in net assets		(51,092,045	)		(38,885,370	)		(32,589,536	)		2,593,461
Net assets:
Beginning of year		882,482,119			921,367,489			412,142,080			409,548,619
End of year	$	831,390,074		$	882,482,119		$	379,552,544		$	412,142,080
Accumulated undistributed (distributions in excess of) net investment income	$	8,560,371		$	11,568,318		$	2,516		$	—

See accompanying notes to financial statements.
281

PACE Select Advisors Trust

Statement of changes in net assets (continued)

	PACE Global Fixed Income Investments						PACE High Yield Investments						PACE Large Co Value Equity Investments
	For the years ended July 31,						For the years ended July 31,						For the years ended July 31,
	2017			2016			2017			2016			2017			2016
From operations:
Net investment income	$	6,320,428		$	8,267,980		$	23,237,420		$	24,490,507		$	22,375,751		$	23,690,889
Net realized gain (loss)		(24,334,285	)		(72,752	)		8,621,540			(10,315,324	)		102,752,134			31,507,344
Net change in unrealized appreciation/depreciation		(10,024,777	)		53,419,683			11,962,946			4,897,701			73,532,988			(20,617,177	)
Net increase (decrease) in net assets resulting from operations		(28,038,634	)		61,614,911			43,821,906			19,072,884			198,660,873			34,581,056
Dividends and distributions to shareholders from:
Net investment income–Class A		(698,459	)		(1,270,967	)		(234,072	)		(224,536	)		(1,794,574	)		(1,600,974	)
Net investment income–Class C		(41,628	)		(71,865	)		(149,979	)		(163,374	)		(87,986	)		(76,124	)
Net investment income–Class Y		(54,336	)		(125,618	)		(36,967	)		(53,220	)		(323,059	)		(296,865	)
Net investment income–Class P		(8,442,767	)		(15,380,077	)		(22,930,243	)		(20,953,766	)		(21,042,472	)		(19,469,455	)
Net realized gains–Class A		—			—			—			—			(3,142,416	)		(12,437,876	)
Net realized gains–Class C		—			—			—			—			(329,787	)		(1,467,118	)
Net realized gains–Class Y		—			—			—			—			(489,234	)		(1,945,097	)
Net realized gains–Class P		—			—			—			—			(32,190,594	)		(127,599,656	)
Return of capital–Class A		(295,590	)		—			—			(30,687	)		—			—
Return of capital–Class C		(12,799	)		—			—			(23,690	)		—			—
Return of capital–Class Y		(22,046	)		—			—			(7,822	)		—			—
Return of capital–Class P		(3,682,347	)		—			—			(3,115,953	)		—			—
		(13,249,972	)		(16,848,527	)		(23,351,261	)		(24,573,048	)		(59,400,122	)		(164,893,165	)
From beneficial interest transactions:
Net proceeds from shares sold		58,371,399			70,938,828			56,193,257			68,242,265			100,350,237			114,721,376
Cost of shares repurchased		(148,124,325	)		(120,107,244	)		(134,944,631	)		(103,053,687	)		(253,996,261	)		(244,023,149	)
Proceeds from dividends reinvested		12,200,509			15,504,917			21,521,712			22,662,079			55,848,030			155,548,126
Net increase (decrease) in net assets from beneficial interest transactions		(77,552,417	)		(33,663,499	)		(57,229,662	)		(12,149,343	)		(97,797,994	)		26,246,353
Redemption fees		—			94			—			110			—			230
Net increase (decrease) in net assets		(118,841,023	)		11,102,979			(36,759,017	)		(17,649,397	)		41,462,757			(104,065,526	)
Net assets:
Beginning of year		565,454,726			554,351,747			420,773,907			438,423,304			1,302,563,281			1,406,628,807
End of year	$	446,613,703		$	565,454,726		$	384,014,890		$	420,773,907		$	1,344,026,038		$	1,302,563,281
Accumulated undistributed (distributions in excess of) net investment income	$	(37,835,408	)	$	(12,797,911	)	$	779,282		$	(1,221,874	)	$	10,520,659		$	11,580,610

282

PACE Select Advisors Trust

	PACE Large Co Growth Equity Investments						PACE Small/Medium Co Value Equity Investments
	For the years ended July 31,						For the years ended July 31,
	2017			2016			2017			2016
From operations:
Net investment income	$	3,879,364		$	17,504		$	4,313,901		$	2,621,107
Net realized gain (loss)		107,429,870			51,721,018			67,191,426			9,610,733
Net change in unrealized appreciation/depreciation		85,272,003			(46,533,169	)		5,245,663			(5,331,431	)
Net increase (decrease) in net assets resulting from operations		196,581,237			5,205,353			76,750,990			6,900,409
Dividends and distributions to shareholders from:
Net investment income–Class A		(53,501	)		—			(240,797	)		(98,376	)
Net investment income–Class C		—			—			(35,921	)		—
Net investment income–Class Y		(48,062	)		—			(5,472	)		(6,601	)
Net investment income–Class P		(4,211,251	)		—			(7,324,442	)		(3,438,922	)
Net realized gains–Class A		(1,344,842	)		(6,743,462	)		(483,160	)		(1,705,018	)
Net realized gains–Class C		(118,699	)		(683,839	)		(133,716	)		(511,308	)
Net realized gains–Class Y		(402,707	)		(2,275,236	)		(10,874	)		(90,053	)
Net realized gains–Class P		(36,392,528	)		(190,560,995	)		(13,555,466	)		(47,631,702	)
Return of capital–Class A		—			—			—			—
Return of capital–Class C		—			—			—			—
Return of capital–Class Y		—			—			—			—
Return of capital–Class P		—			—			—			—
		(42,571,590	)		(200,263,532	)		(21,789,848	)		(53,481,980	)
From beneficial interest transactions:
Net proceeds from shares sold		100,602,806			107,834,177			46,350,974			57,217,306
Cost of shares repurchased		(236,697,202	)		(255,468,632	)		(108,673,345	)		(99,345,849	)
Proceeds from dividends reinvested		40,489,153			190,898,503			20,535,489			51,029,897
Net increase (decrease) in net assets from beneficial interest transactions		(95,605,243	)		43,264,048			(41,786,882	)		8,901,354
Redemption fees		—			169			—			202
Net increase (decrease) in net assets		58,404,404			(151,793,962	)		13,174,260			(37,680,015	)
Net assets:
Beginning of year		1,274,484,957			1,426,278,919			512,452,929			550,132,944
End of year	$	1,332,889,361		$	1,274,484,957		$	525,627,189		$	512,452,929
Accumulated undistributed (distributions in excess of) net investment income	$	108,076		$	1,024,277		$	35,794		$	890,309

See accompanying notes to financial statements.
283

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
	For the years ended July 31,						For the years ended July 31,							For the years ended July 31,
	2017			2016			2017			2016				2017			2016
From operations:
Net investment income (loss)	$	(2,388,905	)	$	(2,510,206	)	$	21,191,293		$	18,366,295			$	5,570,515		$	4,446,997
Net realized gain (loss)		36,174,906			8,739,120			35,383,737			(15,369,401	)			12,937,450			(53,277,339	)
Net change in unrealized appreciation/depreciation		42,237,611			(70,434,920	)		108,403,807			(49,156,793	)			62,374,624			35,601,481
Net increase (decrease) in net assets resulting from operations		76,023,612			(64,206,006	)		164,978,837			(46,159,899	)			80,882,589			(13,228,861	)
Dividends and distributions to shareholders from:
Net investment income–Class A		—			—			(572,185	)		(432,357	)			(30,175	)		(12,585	)
Net investment income–Class C		—			—			(22,364	)		(15,942	)			(1,193	)		—
Net investment income–Class Y		—			—			(318,588	)		(296,907	)			(75,310	)		(80,288	)
Net investment income–Class P		—			—			(20,728,400	)		(16,216,509	)			(4,085,462	)		(3,935,905	)
Net realized gains–Class A		—			(5,003,773	)		—			—				—			—
Net realized gains–Class C		—			(822,961	)		—			—				—			—
Net realized gains–Class Y		—			(139,471	)		—			—		��		—			—
Net realized gains–Class P		—			(93,077,502	)		—			—				—			—
		—			(99,043,707	)		(21,641,537	)		(16,961,715	)			(4,192,140	)		(4,028,778	)
From beneficial interest transactions:
Net proceeds from shares sold		44,322,542			58,421,325			183,012,794			125,619,598				67,086,338			87,114,243
Cost of shares repurchased		(94,477,371	)		(98,839,401	)		(166,846,663	)		(177,781,640	)			(87,148,727	)		(99,001,183	)
Proceeds from dividends reinvested		700			94,257,227			20,182,585			15,838,350				3,965,359			3,797,286
Net increase (decrease) in net assets from beneficial interest transactions		(50,154,129	)		53,839,151			36,348,716			(36,323,692	)			(16,097,030	)		(8,089,654	)
Redemption fees		—			202			—			154				—			66
Net increase (decrease) in net assets		25,869,483			(109,410,360	)		179,686,016			(99,445,152	)			60,593,419			(25,347,227	)
Net assets:
Beginning of year		469,453,159			578,863,519			972,750,599			1,072,195,751				407,537,785			432,885,012
End of year	$	495,322,642		$	469,453,159		$	1,152,436,615		$	972,750,599			$	468,131,204		$	407,537,785
Accumulated undistributed (distributions in excess of) net investment income	$	(1,762,888	)	$	(1,450,466	)	$	13,975,215		$	13,829,414			$	5,513,473		$	4,034,632

284

PACE Select Advisors Trust

	PACE Global Real Estate Securities Investments						PACE Alternative Strategies Investments
	For the years ended July 31,						For the years ended July 31,
	2017			2016			2017			2016
From operations:
Net investment income (loss)	$	3,628,686		$	2,917,793		$	(3,464,048	)	$	(2,424,766	)
Net realized gain (loss)		5,865,431			3,127,694			12,715,954			(16,126,169	)
Net change in unrealized appreciation/depreciation		(9,851,290	)		7,777,210			5,516,030			(6,960,759	)
Net increase (decrease) in net assets resulting from operations		(357,173	)		13,822,697			14,767,936			(25,511,694	)
Dividends and distributions to shareholders from:
Net investment income–Class A		(17,802	)		(8,823	)		—			(176,054	)
Net investment income–Class C		(10,900	)		(7,358	)		—			(310,096	)
Net investment income–Class Y		(938	)		(7,174	)		—			(553,606	)
Net investment income–Class P		(6,046,507	)		(4,510,322	)		—			(25,341,043	)
Net realized gains–Class A		—			—			—			—
Net realized gains–Class C		—			—			—			—
Net realized gains–Class Y		—			—			—			—
Net realized gains–Class P		—			—			—			—
		(6,076,147	)		(4,533,677	)		—			(26,380,799	)
From beneficial interest transactions:
Net proceeds from shares sold		17,169,512			17,256,164			110,510,485			224,976,743
Cost of shares repurchased		(27,668,849	)		(27,584,055	)		(193,020,289	)		(262,735,339	)
Proceeds from dividends reinvested		5,652,218			4,240,406			—			24,526,498
Net increase (decrease) in net assets from beneficial interest transactions		(4,847,119	)		(6,087,485	)		(82,509,804	)		(13,232,098	)
Redemption fees		—			126			—			179
Net increase (decrease) in net assets		(11,280,439	)		3,201,661			(67,741,868	)		(65,124,412	)
Net assets:
Beginning of year		152,281,838			149,080,177			736,799,866			801,924,278
End of year	$	141,001,399		$	152,281,838		$	669,057,998		$	736,799,866
Accumulated undistributed (distributions in excess of) net investment income	$	979,609		$	1,421,533		$	(6,810,171	)	$	(6,915,212	)

See accompanying notes to financial statements.
285

PACE Select Advisors

Statement of cash flows
For the year ended July 31, 2017

	PACE Large Co Value Equity Investments
Cash flows from operating activities
Net increase in net assets resulting from operations	$	198,660,873
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:
Purchases of long-term investments		(750,881,762	)
Purchases to cover investments sold short		(187,775,314	)
Proceeds from disposition of long-term investments		912,279,439
Sales of investments sold short		172,880,343
Net purchases from short-term investments		(18,935,258	)
Net realized (gains) from investments in securities		(122,143,351	)
Net realized losses from investments sold short		19,390,606
Net change in unrealized appreciation/depreciation of investments in securities		(77,409,064	)
Net change in unrealized appreciation/depreciation of investments sold short		3,876,075
Changes in assets and liabilities:
(Increase) decrease in assets:
Cash collateral on deposit at custodian for securities loaned		14,854,355
Receivable for interest		468,047
Receivable for foreign tax reclaims		(5,851	)
Other assets		258
Increase (decrease) in liabilities:
Payable for cash collateral from securities loaned		(8,556,097	)
Payable to affiliate		33,018
Payable for foreign withholding taxes and foreign capital gains taxes		(18	)
Payable for dividends and interest on investments sold short		(13,298	)
Payable to custodian		3,639
Accrued expenses and other liabilities		43,675
Net cash provided from operating activities		156,770,315
Cash flows from financing activities
Proceeds from shares sold		100,948,191
Cost of shares repurchased		(254,128,078	)
Dividends paid to shareholders		(3,552,092	)
Net cash used in financing activities		(156,731,979	)
Net increase in cash and foreign currency		38,336
Cash and foreign currency, beginning of year		862
Cash and foreign currency, end of year	$	39,198
Supplemental disclosure of cash flow information:
Reinvestment of dividends	$	(55,848,030	)
Cash paid during the period for interest	$	1,945

See accompanying notes to financial statements.
286

PACE Select Advisors

Statement of cash flows (concluded)
For the year ended July 31, 2017

	PACE International Equity Investments
Cash flows from operating activities
Net increase in net assets resulting from operations	$	164,978,837
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:
Purchases of long-term investments		(681,634,391	)
Purchases to cover investments sold short		(172,409,721	)
Proceeds from disposition of long-term investments		638,075,046
Sales of investments sold short		180,834,174
Net purchases from short-term investments		9,664,766
Net realized (gains) from investments in securities		(46,834,149	)
Net realized losses from investments sold short		10,885,608
Net change in unrealized appreciation/depreciation of investments in securities		(116,501,326	)
Net change in unrealized appreciation/depreciation of investments sold short		8,189,216
Changes in assets and liabilities:
(Increase) decrease in assets:
Cash collateral on investments sold short		14,993,524
Receivable for interest and dividends		280,100
Receivable for foreign tax reclaims		(818,025	)
Other assets		(72,707	)
Increase (decrease) in liabilities:
Payable for cash collateral from securities loaned		(31,875,290	)
Payable for foreign withholding taxes and foreign capital gains taxes		(153,470	)
Payable for bank loan		938,864
Payable to affiliate		128,888
Payable for dividends and interest on investments sold short		156,849
Payable to custodian		28,325
Accrued expenses and other liabilities		44,075
Net cash used for operating activities		(21,100,807	)
Cash flows from financing activities
Proceeds from shares sold		183,617,910
Cost of shares repurchased		(166,365,500	)
Dividends paid to shareholders		(1,458,952	)
Net cash provided by financing activities		15,793,458
Net decrease in cash and foreign currency		(5,307,349	)
Cash and foreign currency, beginning of year		6,341,275
Cash and foreign currency, end of year	$	1,033,926
Supplemental disclosure of cash flow information:
Reinvestment of dividends	$	(20,182,585	)
Cash paid during the year for interest	$	2,465

See accompanying notes to financial statements.
287

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288

PACE Government Money Market Investments

Financial highlights

Selected financial data throughout each year is presented below:

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.001			0.0001			0.0001			0.0001			0.0001
Net realized gains (losses)		(0.000	)1		0.0001			—			0.0001			—
Net increase from operations		0.001			0.0001			0.0001			0.0001			0.0001
Dividends from net investment income		(0.001	)		(0.000	)1		(0.000	)1		(0.000	)1		(0.000	)1
Distributions from net realized gains		—			(0.000	)1		—			(0.000	)1		—
Total dividends and distributions		(0.001	)		(0.000	)1		(0.000	)1		(0.000	)1		(0.000	)1
Net asset value, end of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return2		0.11	%		0.01	%		0.01	%		0.01	%3		0.01	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.95	%		0.96	%		0.93	%		0.91	%		0.88	%
Expenses after fee waivers and/or expense reimbursements		0.52	%		0.26	%		0.14	%		0.14	%		0.19	%
Net investment income		0.12	%		0.01	%		0.01	%		0.01	%		0.01	%
Supplemental data:
Net assets, end of year (000's)	$	199,585		$	182,977		$	168,503		$	212,025		$	309,842

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.

³  In August 2013, UBS AM made a voluntary cash payment of $2,340 to the Portfolio in order to address a differential between the number of shares outstanding and the Portfolio's net assets. The differential was attributable to historical embedded capital losses that were experienced by the Portfolio over several years prior to credit crisis of 2008. Payment from investment advisor had no impact on the Portfolio's total investment return and represents less than $0.0005 per share.

See accompanying notes to financial statements.

289

PACE Mortgage-Backed Securities Fixed Income Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.15		$	12.96		$	12.82		$	12.62		$	13.46
Net investment income1		0.17			0.19			0.11			0.15			0.11
Net realized and unrealized gains (losses)		(0.13	)		0.29			0.26			0.32			(0.39	)
Net increase (decrease) from operations		0.04			0.48			0.37			0.47			(0.28	)
Dividends from net investment income		(0.34	)		(0.29	)		(0.23	)		(0.27	)		(0.31	)
Distributions from net realized gains		—			—			—			—			(0.25	)
Total dividends and distributions		(0.34	)		(0.29	)		(0.23	)		(0.27	)		(0.56	)
Net asset value, end of year	$	12.85		$	13.15		$	12.96		$	12.82		$	12.62
Total investment return2		0.30	%		3.76	%		2.86	%		3.74	%		(2.29	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.08	%		1.07	%3		1.07	%		1.07	%		1.05	%
Expenses after fee waivers and/or expense reimbursements		0.97	%		0.97	%3		0.97	%		0.97	%		0.99	%
Net investment income		1.33	%		1.47	%		0.87	%		1.17	%		0.83	%
Supplemental data:
Net assets, end of year (000's)	$	36,239		$	41,260		$	47,860		$	59,834		$	66,554
Portfolio turnover		1,255	%		1,383	%		1,360	%		1,117	%		1,336	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.16		$	12.96		$	12.82		$	12.62		$	13.47
Net investment income1		0.19			0.23			0.15			0.18			0.14
Net realized and unrealized gains (losses)		(0.12	)		0.29			0.25			0.32			(0.40	)
Net increase (decrease) from operations		0.07			0.52			0.40			0.50			(0.26	)
Dividends from net investment income		(0.37	)		(0.32	)		(0.26	)		(0.30	)		(0.34	)
Distributions from net realized gains		—			—			—			—			(0.25	)
Total dividends and distributions		(0.37	)		(0.32	)		(0.26	)		(0.30	)		(0.59	)
Net asset value, end of year	$	12.86		$	13.16		$	12.96		$	12.82		$	12.62
Total investment return2		0.63	%		4.03	%		3.12	%		4.00	%		(2.05	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.99	%		0.89	%3		0.86	%		0.87	%		0.85	%
Expenses after fee waivers and/or expense reimbursements		0.72	%		0.72	%3		0.72	%		0.72	%		0.74	%
Net investment income		1.49	%		1.73	%		1.13	%		1.42	%		1.08	%
Supplemental data:
Net assets, end of year (000's)	$	45,658		$	51,823		$	46,071		$	47,959		$	57,567
Portfolio turnover		1,255	%		1,383	%		1,360	%		1,117	%		1,336	%

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, redemption fees or program 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%.

290

PACE Mortgage-Backed Securities Fixed Income Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.17		$	12.97		$	12.84		$	12.63		$	13.48
Net investment income1		0.11			0.13			0.05			0.09			0.04
Net realized and unrealized gains (losses)		(0.14	)		0.30			0.24			0.32			(0.40	)
Net increase (decrease) from operations		(0.03	)		0.43			0.29			0.41			(0.36	)
Dividends from net investment income		(0.27	)		(0.23	)		(0.16	)		(0.20	)		(0.24	)
Distributions from net realized gains		—			—			—			—			(0.25	)
Total dividends and distributions		(0.27	)		(0.23	)		(0.16	)		(0.20	)		(0.49	)
Net asset value, end of year	$	12.87		$	13.17		$	12.97		$	12.84		$	12.63
Total investment return2		(0.21	)%		3.32	%		2.27	%		3.29	%		(2.78	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.58	%		1.60	%3		1.59	%		1.59	%		1.56	%
Expenses after fee waivers and/or expense reimbursements		1.47	%		1.47	%3		1.47	%		1.47	%		1.49	%
Net investment income		0.83	%		0.97	%		0.37	%		0.67	%		0.33	%
Supplemental data:
Net assets, end of year (000's)	$	10,926		$	12,299		$	12,887		$	13,958		$	16,907
Portfolio turnover		1,255	%		1,383	%		1,360	%		1,117	%		1,336	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.16		$	12.96		$	12.83		$	12.63		$	13.47
Net investment income1		0.21			0.22			0.15			0.18			0.14
Net realized and unrealized gains (losses)		(0.14	)		0.30			0.24			0.32			(0.39	)
Net increase (decrease) from operations		0.07			0.52			0.39			0.50			(0.25	)
Dividends from net investment income		(0.37	)		(0.32	)		(0.26	)		(0.30	)		(0.34	)
Distributions from net realized gains		—			—			—			—			(0.25	)
Total dividends and distributions		(0.37	)		(0.32	)		(0.26	)		(0.30	)		(0.59	)
Net asset value, end of year	$	12.86		$	13.16		$	12.96		$	12.83		$	12.63
Total investment return2		0.55	%		4.10	%		3.04	%		4.00	%		(1.97	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.92	%		0.91	%3		0.91	%		0.90	%		0.86	%
Expenses after fee waivers and/or expense reimbursements		0.72	%		0.72	%3		0.72	%		0.72	%		0.74	%
Net investment income		1.60	%		1.72	%		1.13	%		1.41	%		1.08	%
Supplemental data:
Net assets, end of year (000's)	$	352,789		$	405,253		$	422,604		$	435,063		$	447,362
Portfolio turnover		1,255	%		1,383	%		1,360	%		1,117	%		1,336	%

See accompanying notes to financial statements.

291

PACE Intermediate Fixed Income Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	12.45		$	12.36		$	12.33		$	12.20		$	12.42
Net investment income1		0.16			0.16			0.16			0.14			0.12
Net realized and unrealized gains (losses)		(0.06	)		0.18			0.04			0.14			(0.22	)
Net increase (decrease) from operations		0.10			0.34			0.20			0.28			(0.10	)
Dividends from net investment income		(0.17	)		(0.17	)		(0.16	)		(0.15	)		(0.12	)
Distributions from net realized gains		(0.04	)		(0.08	)		(0.01	)		—			—
Total dividends and distributions		(0.21	)		(0.25	)		(0.17	)		(0.15	)		(0.12	)
Net asset value, end of year	$	12.34		$	12.45		$	12.36		$	12.33		$	12.20
Total investment return2		0.84	%		2.85	%		1.64	%		2.30	%		(0.93	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.01	%3		1.03	%3		1.03	%3		1.03	%		0.99	%3
Expenses after fee waivers and/or expense reimbursements		0.93	%3		0.93	%3		0.93	%3		0.93	%		0.93	%3
Net investment income		1.32	%		1.31	%		1.26	%		1.18	%		0.98	%
Supplemental data:
Net assets, end of year (000's)	$	16,884		$	18,681		$	19,932		$	28,080		$	31,355
Portfolio turnover		437	%		284	%		476	%		827	%		818	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	12.45		$	12.36		$	12.33		$	12.20		$	12.43
Net investment income1		0.19			0.19			0.19			0.18			0.15
Net realized and unrealized gains (losses)		(0.05	)		0.18			0.04			0.13			(0.23	)
Net increase (decrease) from operations		0.14			0.37			0.23			0.31			(0.08	)
Dividends from net investment income		(0.21	)		(0.20	)		(0.19	)		(0.18	)		(0.15	)
Distributions from net realized gains		(0.04	)		(0.08	)		(0.01	)		—			—
Total dividends and distributions		(0.25	)		(0.28	)		(0.20	)		(0.18	)		(0.15	)
Net asset value, end of year	$	12.34		$	12.45		$	12.36		$	12.33		$	12.20
Total investment return2		1.09	%		3.11	%		1.90	%		2.56	%		(0.68	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.93	%3		0.94	%3		0.86	%3		1.05	%		0.89	%3
Expenses after fee waivers and/or expense reimbursements		0.68	%3		0.68	%3		0.68	%3		0.68	%		0.68	%3
Net investment income		1.57	%		1.56	%		1.51	%		1.43	%		1.24	%
Supplemental data:
Net assets, end of year (000's)	$	337		$	401		$	444		$	543		$	674
Portfolio turnover		437	%		284	%		476	%		827	%		818	%

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, redemption fees or program 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%.

292

PACE Intermediate Fixed Income Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	12.47		$	12.37		$	12.35		$	12.22		$	12.44
Net investment income1		0.10			0.10			0.09			0.08			0.06
Net realized and unrealized gains (losses)		(0.06	)		0.19			0.04			0.14			(0.23	)
Net increase (decrease) from operations		0.04			0.29			0.13			0.22			(0.17	)
Dividends from net investment income		(0.11	)		(0.11	)		(0.10	)		(0.09	)		(0.05	)
Distributions from net realized gains		(0.04	)		(0.08	)		(0.01	)		—			—
Total dividends and distributions		(0.15	)		(0.19	)		(0.11	)		(0.09	)		(0.05	)
Net asset value, end of year	$	12.36		$	12.47		$	12.37		$	12.35		$	12.22
Total investment return2		0.32	%		2.41	%		1.05	%		1.78	%		(1.34	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.52	%3		1.53	%3		1.53	%3		1.52	%		1.49	%3
Expenses after fee waivers and/or expense reimbursements		1.43	%3		1.43	%3		1.43	%3		1.43	%		1.43	%3
Net investment income		0.81	%		0.81	%		0.76	%		0.68	%		0.48	%
Supplemental data:
Net assets, end of year (000's)	$	1,217		$	1,644		$	1,931		$	2,260		$	2,685
Portfolio turnover		437	%		284	%		476	%		827	%		818	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	12.45		$	12.36		$	12.33		$	12.20		$	12.43
Net investment income1		0.19			0.19			0.19			0.18			0.15
Net realized and unrealized gains (losses)		(0.05	)		0.18			0.04			0.13			(0.23	)
Net increase (decrease) from operations		0.14			0.37			0.23			0.31			(0.08	)
Dividends from net investment income		(0.21	)		(0.20	)		(0.19	)		(0.18	)		(0.15	)
Distributions from net realized gains		(0.04	)		(0.08	)		(0.01	)		—			—
Total dividends and distributions		(0.25	)		(0.28	)		(0.20	)		(0.18	)		(0.15	)
Net asset value, end of year	$	12.34		$	12.45		$	12.36		$	12.33		$	12.20
Total investment return2		1.09	%		3.11	%		1.90	%		2.56	%		(0.68	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.82	%3		0.83	%3		0.83	%3		0.82	%		0.74	%3
Expenses after fee waivers and/or expense reimbursements		0.68	%3		0.68	%3		0.68	%3		0.68	%		0.68	%3
Net investment income		1.57	%		1.56	%		1.51	%		1.43	%		1.22	%
Supplemental data:
Net assets, end of year (000's)	$	374,144		$	411,148		$	403,358		$	417,011		$	415,894
Portfolio turnover		437	%		284	%		476	%		827	%		818	%

See accompanying notes to financial statements.

293

PACE Strategic Fixed Income Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.21		$	13.93		$	13.90		$	14.16		$	15.29
Net investment income1		0.36			0.37			0.35			0.37			0.41
Net realized and unrealized gains (losses)		(0.15	)		0.38			0.01			0.11			(0.78	)
Net increase (decrease) from operations		0.21			0.75			0.36			0.48			(0.37	)
Dividends from net investment income		(0.39	)		(0.37	)		(0.33	)		(0.28	)		(0.43	)
Distributions from net realized gains		(0.22	)		(0.10	)		—			(0.37	)		(0.33	)
Return of capital		—			—			—			(0.09	)		—
Total dividends, distributions, and return of capital		(0.61	)		(0.47	)		(0.33	)		(0.74	)		(0.76	)
Net asset value, end of year	$	13.81		$	14.21		$	13.93		$	13.90		$	14.16
Total investment return2		1.61	%		5.43	%		2.69	%		3.51	%		(2.60	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/ recoupments, including interest expense		1.12	%		1.10	%3		1.07	%		1.06	%3		1.03	%3
Expenses after fee waivers and/or expense reimbursements/ recoupments, including interest expense		1.06	%		1.01	%3		1.05	%		1.06	%3		1.06	%3,4
Expenses after fee waivers and/or expense reimbursements/ recoupments, excluding interest expense		0.96	%		0.95	%		1.03	%		1.05	%		1.05	%4
Net investment income		2.59	%		2.69	%		2.52	%		2.63	%		2.72	%
Supplemental data:
Net assets, end of year (000's)	$	13,605		$	13,480		$	13,699		$	44,465		$	67,417
Portfolio turnover		212	%		133	%		154	%		154	%		186	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.19		$	13.91		$	13.89		$	14.15		$	15.28
Net investment income1		0.39			0.39			0.37			0.40			0.42
Net realized and unrealized gains (losses)		(0.15	)		0.38			0.02			0.12			(0.76	)
Net increase (decrease) from operations		0.24			0.77			0.39			0.52			(0.34	)
Dividends from net investment income		(0.42	)		(0.39	)		(0.37	)		(0.31	)		(0.46	)
Distributions from net realized gains		(0.22	)		(0.10	)		—			(0.37	)		(0.33	)
Return of capital		—			—			—			(0.10	)		—
Total dividends, distributions, and return of capital		(0.64	)		(0.49	)		(0.37	)		(0.78	)		(0.79	)
Net asset value, end of year	$	13.79		$	14.19		$	13.91		$	13.89		$	14.15
Total investment return2		1.87	%		5.68	%		2.81	%		3.82	%		(2.38	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/ recoupments, including interest expense		1.03	%		0.97	%3		0.93	%		0.93	%3		0.90	%3
Expenses after fee waivers and/or expense reimbursements/ recoupments, including interest expense		0.81	%		0.87	%3		0.83	%		0.81	%3		0.81	%3
Expenses after fee waivers and/or expense reimbursements/ recoupments, excluding interest expense		0.71	%		0.81	%		0.81	%		0.81	%		0.81	%
Net investment income		2.84	%		2.82	%		2.66	%		2.90	%		2.80	%
Supplemental data:
Net assets, end of year (000's)	$	1,599		$	2,283		$	2,543		$	3,158		$	3,638
Portfolio turnover		212	%		133	%		154	%		154	%		186	%

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, redemption fees or program 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.

294

PACE Strategic Fixed Income Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.22		$	13.93		$	13.91		$	14.17		$	15.29
Net investment income1		0.29			0.30			0.28			0.30			0.34
Net realized and unrealized gains (losses)		(0.15	)		0.39			0.01			0.11			(0.78	)
Net increase (decrease) from operations		0.14			0.69			0.29			0.41			(0.44	)
Dividends from net investment income		(0.32	)		(0.30	)		(0.27	)		(0.23	)		(0.35	)
Distributions from net realized gains		(0.22	)		(0.10	)		—			(0.37	)		(0.33	)
Return of capital		—			—			—			(0.07	)		—
Total dividends, distributions, and return of capital		(0.54	)		(0.40	)		(0.27	)		(0.67	)		(0.68	)
Net asset value, end of year	$	13.82		$	14.22		$	13.93		$	13.91		$	14.17
Total investment return2		1.10	%		4.98	%		2.16	%		3.03	%		(2.99	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/ recoupments, including interest expense		1.62	%		1.60	%3		1.54	%		1.53	%3		1.51	%3
Expenses after fee waivers and/or expense reimbursements/ recoupments, including interest expense		1.56	%		1.51	%3		1.52	%		1.53	%3		1.51	%3
Expenses after fee waivers and/or expense reimbursements/ recoupments, excluding interest expense		1.46	%		1.45	%		1.50	%		1.52	%		1.51	%
Net investment income		2.09	%		2.19	%		1.98	%		2.17	%		2.26	%
Supplemental data:
Net assets, end of year (000's)	$	8,177		$	10,418		$	11,752		$	15,143		$	20,992
Portfolio turnover		212	%		133	%		154	%		154	%		186	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.20		$	13.92		$	13.90		$	14.16		$	15.29
Net investment income1		0.39			0.40			0.38			0.40			0.44
Net realized and unrealized gains (losses)		(0.14	)		0.38			0.01			0.11			(0.78	)
Net increase (decrease) from operations		0.25			0.78			0.39			0.51			(0.34	)
Dividends from net investment income		(0.42	)		(0.40	)		(0.37	)		(0.30	)		(0.46	)
Distributions from net realized gains		(0.22	)		(0.10	)		—			(0.37	)		(0.33	)
Return of capital		—			—			—			(0.10	)		—
Total dividends, distributions, and return of capital		(0.64	)		(0.50	)		(0.37	)		(0.77	)		(0.79	)
Net asset value, end of year	$	13.81		$	14.20		$	13.92		$	13.90		$	14.16
Total investment return2		1.94	%		5.68	%		2.91	%		3.77	%		(2.37	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/ recoupments, including interest expense		0.90	%		0.88	%3		0.82	%		0.81	%3		0.81	%3
Expenses after fee waivers and/or expense reimbursements/ recoupments, including interest expense		0.81	%		0.79	%3		0.80	%		0.81	%3,4		0.81	%3
Expenses after fee waivers and/or expense reimbursements/ recoupments, excluding interest expense		0.71	%		0.72	%		0.78	%		0.81	%4		0.81	%
Net investment income		2.84	%		2.92	%		2.69	%		2.90	%		2.96	%
Supplemental data:
Net assets, end of year (000's)	$	808,009		$	856,301		$	893,373		$	889,402		$	833,352
Portfolio turnover		212	%		133	%		154	%		154	%		186	%

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.

295

PACE Municipal Fixed Income Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.55		$	13.14		$	13.19		$	12.91		$	13.56
Net investment income1		0.32			0.33			0.32			0.34			0.33
Net realized and unrealized gains (losses)		(0.37	)		0.48			(0.05	)		0.38			(0.59	)
Net increase (decrease) from operations		(0.05	)		0.81			0.27			0.72			(0.26	)
Dividends from net investment income		(0.32	)		(0.33	)		(0.32	)		(0.34	)		(0.33	)
Distributions from net realized gains		(0.10	)		(0.07	)		—			(0.10	)		(0.06	)
Total dividends and distributions		(0.42	)		(0.40	)		(0.32	)	��	(0.44	)		(0.39	)
Net asset value, end of year	$	13.08		$	13.55		$	13.14		$	13.19		$	12.91
Total investment return2		(0.29	)%		6.26	%		2.07	%		5.64	%		(1.99	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.92	%		0.92	%		0.92	%		0.92	%		0.93	%
Expenses after fee waivers and/or expense reimbursements		0.85	%		0.85	%		0.90	%3		0.90	%		0.91	%
Net investment income		2.47	%		2.49	%		2.42	%		2.59	%		2.47	%
Supplemental data:
Net assets, end of year (000's)	$	46,784		$	51,397		$	53,923		$	63,225		$	63,540
Portfolio turnover		14	%		15	%		21	%		30	%		69	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.56		$	13.15		$	13.20		$	12.92		$	13.57
Net investment income1		0.35			0.36			0.35			0.37			0.37
Net realized and unrealized gains (losses)		(0.38	)		0.48			(0.05	)		0.38			(0.60	)
Net increase (decrease) from operations		(0.03	)		0.84			0.30			0.75			(0.23	)
Dividends from net investment income		(0.35	)		(0.36	)		(0.35	)		(0.37	)		(0.36	)
Distributions from net realized gains		(0.10	)		(0.07	)		—			(0.10	)		(0.06	)
Total dividends and distributions		(0.45	)		(0.43	)		(0.35	)		(0.47	)		(0.42	)
Net asset value, end of year	$	13.08		$	13.56		$	13.15		$	13.20		$	12.92
Total investment return2		(0.16	)%		6.49	%		2.32	%		5.89	%		(1.74	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.71	%		0.72	%		0.70	%		0.72	%		0.72	%
Expenses after fee waivers and/or expense reimbursements		0.64	%		0.65	%		0.65	%		0.65	%		0.66	%
Net investment income		2.67	%		2.69	%		2.67	%		2.84	%		2.72	%
Supplemental data:
Net assets, end of year (000's)	$	91		$	70		$	81		$	83		$	82
Portfolio turnover		14	%		15	%		21	%		30	%		69	%

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, redemption fees or program 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.

³  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

296

PACE Municipal Fixed Income Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.55		$	13.14		$	13.19		$	12.91		$	13.57
Net investment income1		0.26			0.26			0.25			0.27			0.26
Net realized and unrealized gains (losses)		(0.37	)		0.49			(0.05	)		0.38			(0.60	)
Net increase (decrease) from operations		(0.11	)		0.75			0.20			0.65			(0.34	)
Dividends from net investment income		(0.26	)		(0.27	)		(0.25	)		(0.27	)		(0.26	)
Distributions from net realized gains		(0.10	)		(0.07	)		—			(0.10	)		(0.06	)
Total dividends and distributions		(0.36	)		(0.34	)		(0.25	)		(0.37	)		(0.32	)
Net asset value, end of year	$	13.08		$	13.55		$	13.14		$	13.19		$	12.91
Total investment return2		(0.80	)%		5.72	%		1.55	%		5.10	%		(2.56	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.42	%		1.42	%		1.42	%		1.43	%		1.44	%
Expenses after fee waivers and/or expense reimbursements		1.35	%		1.35	%		1.40	%		1.40	%		1.41	%
Net investment income		1.96	%		1.98	%		1.92	%		2.09	%		1.97	%
Supplemental data:
Net assets, end of year (000's)	$	8,962		$	10,537		$	10,388		$	11,033		$	12,336
Portfolio turnover		14	%		15	%		21	%		30	%		69	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.56		$	13.15		$	13.19		$	12.91		$	13.57
Net investment income1		0.35			0.36			0.35			0.37			0.36
Net realized and unrealized gains (losses)		(0.38	)		0.49			(0.04	)		0.38			(0.60	)
Net increase (decrease) from operations		(0.03	)		0.85			0.31			0.75			(0.24	)
Dividends from net investment income		(0.35	)		(0.37	)		(0.35	)		(0.37	)		(0.36	)
Distributions from net realized gains		(0.10	)		(0.07	)		—			(0.10	)		(0.06	)
Total dividends and distributions		(0.45	)		(0.44	)		(0.35	)		(0.47	)		(0.42	)
Net asset value, end of year	$	13.08		$	13.56		$	13.15		$	13.19		$	12.91
Total investment return2		(0.13	)%		6.51	%		2.39	%		5.90	%		(1.82	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.67	%		0.67	%		0.67	%		0.68	%		0.70	%
Expenses after fee waivers and/or expense reimbursements		0.61	%		0.60	%		0.65	%		0.65	%		0.66	%
Net investment income		2.71	%		2.73	%		2.67	%		2.84	%		2.70	%
Supplemental data:
Net assets, end of year (000's)	$	323,715		$	350,137		$	345,157		$	334,999		$	300,838
Portfolio turnover		14	%		15	%		21	%		30	%		69	%

See accompanying notes to financial statements.

297

PACE Global Fixed Income Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	10.79		$	9.94		$	10.82		$	10.56		$	11.40
Net investment income1		0.11			0.14			0.16			0.19			0.19
Net realized and unrealized gains (losses)		(0.61	)		1.00			(0.71	)		0.34			(0.72	)
Net increase (decrease) from operations		(0.50	)		1.14			(0.55	)		0.53			(0.53	)
Dividends from net investment income		(0.18	)		(0.29	)		(0.23	)		(0.14	)		(0.16	)
Return of capital		(0.07	)		—			(0.10	)		(0.13	)		(0.15	)
Total dividends and return of capital		(0.25	)		(0.29	)		(0.33	)		(0.27	)		(0.31	)
Net asset value, end of year	$	10.04		$	10.79		$	9.94		$	10.82		$	10.56
Total investment return2		(4.59	)%		11.77	%		(5.17	)%		5.08	%		(4.80	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.29	%3		1.28	%3		1.27	%3		1.28	%3		1.27	%3
Expenses after fee waivers and/or expense reimbursements/recoupments		1.10	%3		1.04	%3		1.17	%3		1.22	%3		1.22	%3
Net investment income		1.11	%		1.33	%		1.56	%		1.79	%		1.65	%
Supplemental data:
Net assets, end of year (000's)	$	38,368		$	45,624		$	44,725		$	62,808		$	70,052
Portfolio turnover		199	%		38	%		40	%		46	%		63	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	10.75		$	9.91		$	10.79		$	10.54		$	11.37
Net investment income1		0.13			0.16			0.18			0.21			0.21
Net realized and unrealized gains (losses)		(0.62	)		0.99			(0.71	)		0.33			(0.71	)
Net increase (decrease) from operations		(0.49	)		1.15			(0.53	)		0.54			(0.50	)
Dividends from net investment income		(0.18	)		(0.31	)		(0.24	)		(0.14	)		(0.17	)
Return of capital		(0.08	)		—			(0.11	)		(0.15	)		(0.16	)
Total dividends and return of capital		(0.26	)		(0.31	)		(0.35	)		(0.29	)		(0.33	)
Net asset value, end of year	$	10.00		$	10.75		$	9.91		$	10.79		$	10.54
Total investment return2		(4.45	)%		11.93	%		(5.00	)%		5.23	%		(4.60	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.13	%3		1.07	%3		1.09	%3		1.07	%3		1.09	%3
Expenses after fee waivers and/or expense reimbursements		0.94	%3		0.84	%3		1.00	%3,4		1.00	%3		1.00	%3
Net investment income		1.28	%		1.54	%		1.72	%		2.01	%		1.88	%
Supplemental data:
Net assets, end of year (000's)	$	2,592		$	4,040		$	4,510		$	5,479		$	5,171
Portfolio turnover		199	%		38	%		40	%		46	%		63	%

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, redemption fees or program 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.

298

PACE Global Fixed Income Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	10.79		$	9.95		$	10.82		$	10.57		$	11.41
Net investment income1		0.06			0.09			0.11			0.14			0.13
Net realized and unrealized gains (losses)		(0.61	)		0.99			(0.70	)		0.33			(0.72	)
Net increase (decrease) from operations		(0.55	)		1.08			(0.59	)		0.47			(0.59	)
Dividends from net investment income		(0.15	)		(0.24	)		(0.22	)		(0.12	)		(0.13	)
Return of capital		(0.05	)		—			(0.06	)		(0.10	)		(0.12	)
Total dividends and return of capital		(0.20	)		(0.24	)		(0.28	)		(0.22	)		(0.25	)
Net asset value, end of year	$	10.04		$	10.79		$	9.95		$	10.82		$	10.57
Total investment return2		(5.04	)%		11.12	%		(5.55	)%		4.47	%		(5.26	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.77	%3		1.76	%3		1.76	%3		1.76	%3		1.75	%3
Expenses after fee waivers and/or expense reimbursements/recoupments		1.58	%3		1.52	%3		1.65	%3		1.70	%3		1.69	%3
Net investment income		0.63	%		0.85	%		1.07	%		1.31	%		1.17	%
Supplemental data:
Net assets, end of year (000's)	$	2,639		$	3,160		$	2,994		$	4,559		$	5,862
Portfolio turnover		199	%		38	%		40	%		46	%		63	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	10.79		$	9.94		$	10.82		$	10.56		$	11.40
Net investment income1		0.13			0.15			0.18			0.21			0.21
Net realized and unrealized gains (losses)		(0.63	)		1.01			(0.71	)		0.34			(0.72	)
Net increase (decrease) from operations		(0.50	)		1.16			(0.53	)		0.55			(0.51	)
Dividends from net investment income		(0.18	)		(0.31	)		(0.23	)		(0.14	)		(0.17	)
Return of capital		(0.08	)		—			(0.12	)		(0.15	)		(0.16	)
Total dividends and return of capital		(0.26	)		(0.31	)		(0.35	)		(0.29	)		(0.33	)
Net asset value, end of year	$	10.03		$	10.79		$	9.94		$	10.82		$	10.56
Total investment return2		(4.51	)%		11.99	%		(4.99	)%		5.31	%		(4.59	)%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.11	%3		1.08	%3		1.08	%3		1.10	%3		1.10	%3
Expenses after fee waivers and/or expense reimbursements		0.92	%3		0.85	%3		1.00	%3,4		1.00	%3		1.00	%3
Net investment income		1.29	%		1.52	%		1.71	%		2.01	%		1.88	%
Supplemental data:
Net assets, end of year (000's)	$	403,015		$	512,631		$	502,122		$	526,312		$	467,121
Portfolio turnover		199	%		38	%		40	%		46	%		63	%

See accompanying notes to financial statements.

299

PACE High Yield Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	9.59		$	9.70		$	10.62		$	10.41		$	10.15
Net investment income1		0.54			0.54			0.54			0.56			0.64
Net realized and unrealized gains (losses)		0.48			(0.11	)		(0.78	)		0.21			0.41
Net increase (decrease) from operations		1.02			0.43			(0.24	)		0.77			1.05
Dividends from net investment income		(0.54	)		(0.47	)		(0.53	)		(0.56	)		(0.63	)
Distributions from net realized gains		—			—			(0.15	)		—			(0.15	)
Return of capital		—			(0.07	)		—			—			(0.01	)
Total dividends, distributions and return of capital		(0.54	)		(0.54	)		(0.68	)		(0.56	)		(0.79	)
Net asset value, end of year	$	10.07		$	9.59		$	9.70		$	10.62		$	10.41
Total investment return2		10.93	%		4.88	%		(2.29	)%		7.59	%		10.48	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.25	%		1.26	%		1.26	%		1.26	%		1.27	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.07	%		1.08	%		1.25	%		1.26	%		1.27	%
Net investment income		5.43	%		5.84	%		5.20	%		5.28	%		6.07	%
Supplemental data:
Net assets, end of year (000's)	$	4,251		$	3,764		$	5,330		$	23,516		$	23,400
Portfolio turnover		91	%		103	%		57	%		20	%		26	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	9.62		$	9.73		$	10.66		$	10.44		$	10.18
Net investment income1		0.56			0.56			0.55			0.59			0.66
Net realized and unrealized gains (losses)		0.48			(0.10	)		(0.78	)		0.22			0.41
Net increase (decrease) from operations		1.04			0.46			(0.23	)		0.81			1.07
Dividends from net investment income		(0.56	)		(0.49	)		(0.55	)		(0.59	)		(0.65	)
Distributions from net realized gains		—			—			(0.15	)		—			(0.15	)
Return of capital		—			(0.08	)		—			—			(0.01	)
Total dividends, distributions and return of capital		(0.56	)		(0.57	)		(0.70	)		(0.59	)		(0.81	)
Net asset value, end of year	$	10.10		$	9.62		$	9.73		$	10.66		$	10.44
Total investment return2		11.21	%		5.11	%		(2.13	)%		7.94	%		10.74	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.05	%		1.03	%		1.03	%		1.00	%		1.02	%
Expenses after fee waivers and/or expense reimbursements/recoupments		0.88	%		0.86	%		1.02	%		1.00	%		1.02	%
Net investment income		5.66	%		6.09	%		5.40	%		5.54	%		6.26	%
Supplemental data:
Net assets, end of year (000's)	$	518		$	874		$	1,119		$	1,692		$	1,552
Portfolio turnover		91	%		103	%		57	%		20	%		26	%

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, redemption fees or program 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.

300

PACE High Yield Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	9.58		$	9.69		$	10.62		$	10.40		$	10.14
Net investment income1		0.49			0.49			0.48			0.51			0.59
Net realized and unrealized gains (losses)		0.48			(0.10	)		(0.78	)		0.22			0.41
Net increase (decrease) from operations		0.97			0.39			(0.30	)		0.73			1.00
Dividends from net investment income		(0.49	)		(0.43	)		(0.48	)		(0.51	)		(0.58	)
Distributions from net realized gains		—			—			(0.15	)		—			(0.15	)
Return of capital		—			(0.07	)		—			—			(0.01	)
Total dividends, distributions and return of capital		(0.49	)		(0.50	)		(0.63	)		(0.51	)		(0.74	)
Net asset value, end of year	$	10.06		$	9.58		$	9.69		$	10.62		$	10.40
Total investment return2		10.39	%		4.38	%		(2.83	)%		7.20	%		9.98	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.74	%		1.75	%		1.73	%		1.72	%		1.73	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.57	%		1.57	%		1.72	%		1.72	%		1.73	%
Net investment income		4.95	%		5.36	%		4.71	%		4.82	%		5.61	%
Supplemental data:
Net assets, end of year (000's)	$	2,822		$	3,347		$	3,913		$	5,607		$	5,607
Portfolio turnover		91	%		103	%		57	%		20	%		26	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	9.61		$	9.72		$	10.65		$	10.43		$	10.17
Net investment income1		0.55			0.56			0.55			0.58			0.66
Net realized and unrealized gains (losses)		0.49			(0.11	)		(0.78	)		0.23			0.41
Net increase (decrease) from operations		1.04			0.45			(0.23	)		0.81			1.07
Dividends from net investment income		(0.56	)		(0.49	)		(0.55	)		(0.59	)		(0.65	)
Distributions from net realized gains		—			—			(0.15	)		—			(0.15	)
Return of capital		—			(0.07	)		—			—			(0.01	)
Total dividends, distributions and return of capital		(0.56	)		(0.56	)		(0.70	)		(0.59	)		(0.81	)
Net asset value, end of year	$	10.09		$	9.61		$	9.72		$	10.65		$	10.43
Total investment return2		11.07	%		5.03	%		(2.14	)%		7.92	%		10.70	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.10	%		1.11	%		1.09	%		1.10	%		1.11	%
Expenses after fee waivers and/or expense reimbursements/recoupments		0.92	%		0.94	%		1.03	%		1.03	%		1.05	%
Net investment income		5.59	%		6.00	%		5.39	%		5.50	%		6.28	%
Supplemental data:
Net assets, end of year (000's)	$	376,424		$	412,789		$	428,061		$	431,812		$	357,726
Portfolio turnover		91	%		103	%		57	%		20	%		26	%

See accompanying notes to financial statements.

301

PACE Large Co Value Equity Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	21.35		$	23.72		$	25.25		$	22.53		$	17.27
Net investment income1		0.33			0.34			0.23			0.30			0.23
Net realized and unrealized gains		2.99			0.11			1.34			2.92			5.27
Net increase from operations		3.32			0.45			1.57			3.22			5.50
Dividends from net investment income		(0.35	)		(0.32	)		(0.30	)		(0.21	)		(0.24	)
Distributions from net realized gains		(0.62	)		(2.50	)		(2.80	)		(0.29	)		—
Total dividends and distributions		(0.97	)		(2.82	)		(3.10	)		(0.50	)		(0.24	)
Net asset value, end of year	$	23.70		$	21.35		$	23.72		$	25.25		$	22.53
Total investment return2		15.74	%		2.87	%		6.23	%		14.39	%		32.12	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments including dividend expense, interest expense and other borrowing costs for investments sold short		1.45	%		1.48	%		1.48	%		1.32	%		1.16	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		1.44	%		1.47	%		1.47	%		1.31	%		1.15	%
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.11	%		1.13	%		1.13	%		1.13	%		1.15	%
Net investment income		1.47	%		1.63	%		0.94	%		1.25	%		1.16	%
Supplemental data:
Net assets, end of year (000's)	$	117,223		$	111,716		$	124,198		$	155,480		$	151,583
Portfolio turnover		71	%		65	%		97	%		71	%		71	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	21.41		$	23.78		$	25.32		$	22.60		$	17.32
Net investment income1		0.39			0.40			0.29			0.36			0.27
Net realized and unrealized gains		3.00			0.11			1.35			2.91			5.29
Net increase from operations		3.39			0.51			1.64			3.27			5.56
Dividends from net investment income		(0.41	)		(0.38	)		(0.38	)		(0.26	)		(0.28	)
Distributions from net realized gains		(0.62	)		(2.50	)		(2.80	)		(0.29	)		—
Total dividends and distributions		(1.03	)		(2.88	)		(3.18	)		(0.55	)		(0.28	)
Net asset value, end of year	$	23.77		$	21.41		$	23.78		$	25.32		$	22.60
Total investment return2		16.02	%		3.16	%		6.51	%		14.62	%		32.46	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements including dividend expense, interest expense and other borrowing costs for investments sold short		1.20	%		1.23	%		1.23	%		1.07	%		0.92	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		1.19	%		1.21	%		1.23	%		1.06	%		0.91	%
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		0.86	%		0.88	%		0.88	%		0.89	%		0.91	%
Net investment income		1.73	%		1.89	%		1.19	%		1.50	%		1.40	%
Supplemental data:
Net assets, end of year (000's)	$	17,451		$	17,870		$	19,593		$	19,765		$	18,536
Portfolio turnover		71	%		65	%		97	%		71	%		71	%

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, redemption fees or program 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.

302

PACE Large Co Value Equity Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	21.36		$	23.69		$	25.23		$	22.53		$	17.26
Net investment income1		0.16			0.18			0.04			0.11			0.07
Net realized and unrealized gains		2.97			0.12			1.33			2.91			5.29
Net increase from operations		3.13			0.30			1.37			3.02			5.36
Dividends from net investment income		(0.16	)		(0.13	)		(0.11	)		(0.03	)		(0.09	)
Distributions from net realized gains		(0.62	)		(2.50	)		(2.80	)		(0.29	)		—
Total dividends and distributions		(0.78	)		(2.63	)		(2.91	)		(0.32	)		(0.09	)
Net asset value, end of year	$	23.71		$	21.36		$	23.69		$	25.23		$	22.53
Total investment return2		14.80	%		2.11	%		5.44	%		13.43	%		31.13	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments including dividend expense, interest expense and other borrowing costs for investments sold short		2.23	%		2.26	%		2.25	%		2.10	%		1.95	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		2.21	%		2.25	%		2.25	%		2.09	%		1.95	%
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.89	%		1.91	%		1.90	%		1.92	%		1.95	%
Net investment income		0.70	%		0.85	%		0.17	%		0.47	%		0.36	%
Supplemental data:
Net assets, end of year (000's)	$	12,197		$	12,690		$	14,500		$	15,380		$	14,437
Portfolio turnover		71	%		65	%		97	%		71	%		71	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	21.31		$	23.68		$	25.24		$	22.52		$	17.26
Net investment income1		0.38			0.39			0.29			0.36			0.27
Net realized and unrealized gains		2.99			0.12			1.33			2.91			5.27
Net increase from operations		3.37			0.51			1.62			3.27			5.54
Dividends from net investment income		(0.40	)		(0.38	)		(0.38	)		(0.26	)		(0.28	)
Distributions from net realized gains		(0.62	)		(2.50	)		(2.80	)		(0.29	)		—
Total dividends and distributions		(1.02	)		(2.88	)		(3.18	)		(0.55	)		(0.28	)
Net asset value, end of year	$	23.66		$	21.31		$	23.68		$	25.24		$	22.52
Total investment return2		16.03	%		3.17	%		6.48	%		14.62	%		32.47	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements including dividend expense, interest expense and other borrowing costs for investments sold short		1.22	%		1.24	%		1.24	%		1.08	%		0.91	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		1.20	%		1.23	%		1.23	%		1.07	%		0.91	%
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		0.88	%		0.89	%		0.88	%		0.90	%		0.91	%
Net investment income		1.70	%		1.87	%		1.19	%		1.49	%		1.40	%
Supplemental data:
Net assets, end of year (000's)	$	1,197,155		$	1,160,287		$	1,248,338		$	1,263,296		$	1,135,014
Portfolio turnover		71	%		65	%		97	%		71	%		71	%

See accompanying notes to financial statements.

303

PACE Large Co Growth Equity Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	22.37		$	26.24		$	25.75		$	23.52		$	19.40
Net investment income (loss)1		0.02			(0.05	)		(0.15	)		0.07			0.08
Net realized and unrealized gains		3.54			0.10			3.70			4.39			4.08
Net increase from operations		3.56			0.05			3.55			4.46			4.16
Dividends from net investment income		(0.03	)		—			—			(0.04	)		(0.04	)
Distributions from net realized gains		(0.72	)		(3.92	)		(3.06	)		(2.19	)		—
Total dividends and distributions		(0.75	)		(3.92	)		(3.06	)		(2.23	)		(0.04	)
Net asset value, end of year	$	25.18		$	22.37		$	26.24		$	25.75		$	23.52
Total investment return2		16.50	%		0.73	%		14.60	%		19.60	%		21.45	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.18	%3		1.19	%3		1.18	%3		1.18	%		1.21	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.17	%3		1.18	%3		1.18	%3		1.18	%		1.21	%
Net investment income (loss)		0.07	%		(0.24	)%		(0.57	)%		0.28	%		0.40	%
Supplemental data:
Net assets, end of year (000's)	$	45,095		$	42,862		$	46,777		$	68,207		$	63,108
Portfolio turnover		40	%		33	%		48	%		40	%		76	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	23.19		$	26.98		$	26.39		$	24.06		$	19.86
Net investment income (loss)1		0.08			0.01			(0.09	)		0.14			0.14
Net realized and unrealized gains		3.66			0.12			3.80			4.48			4.17
Net increase from operations		3.74			0.13			3.71			4.62			4.31
Dividends from net investment income		(0.09	)		—			(0.06	)		(0.10	)		(0.11	)
Distributions from net realized gains		(0.72	)		(3.92	)		(3.06	)		(2.19	)		—
Total dividends and distributions		(0.81	)		(3.92	)		(3.12	)		(2.29	)		(0.11	)
Net asset value, end of year	$	26.12		$	23.19		$	26.98		$	26.39		$	24.06
Total investment return2		16.73	%		1.04	%		14.89	%		19.86	%		21.77	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.92	%3		0.92	%3		0.92	%3		0.93	%		0.96	%
Expenses after fee waivers and/or expense reimbursements		0.91	%3		0.91	%3		0.92	%3		0.93	%		0.96	%
Net investment income (loss)		0.33	%		0.02	%		(0.32	)%		0.53	%		0.66	%
Supplemental data:
Net assets, end of year (000's)	$	14,238		$	13,989		$	16,174		$	15,858		$	14,814
Portfolio turnover		40	%		33	%		48	%		40	%		76	%

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, redemption fees or program 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.

304

PACE Large Co Growth Equity Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	18.73		$	22.79		$	22.91		$	21.29		$	17.67
Net investment income (loss)1		(0.13	)		(0.20	)		(0.31	)		(0.13	)		(0.08	)
Net realized and unrealized gains		2.92			0.06			3.25			3.94			3.70
Net increase from operations		2.79			(0.14	)		2.94			3.81			3.62
Dividends from net investment income		—			—			—			—			—
Distributions from net realized gains		(0.72	)		(3.92	)		(3.06	)		(2.19	)		—
Total dividends and distributions		(0.72	)		(3.92	)		(3.06	)		(2.19	)		—
Net asset value, end of year	$	20.80		$	18.73		$	22.79		$	22.91		$	21.29
Total investment return2		15.55	%		(0.08	)%		13.67	%		18.54	%		20.49	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.99	%3		2.00	%3		1.99	%3		2.00	%		2.04	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.99	%3		1.99	%3		1.99	%3		2.03	%4		2.05	%4
Net investment income (loss)		(0.69	)%		(1.06	)%		(1.39	)%		(0.57	)%		(0.43	)%
Supplemental data:
Net assets, end of year (000's)	$	2,860		$	3,565		$	4,104		$	4,204		$	4,033
Portfolio turnover		40	%		33	%		48	%		40	%		76	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	23.03		$	26.83		$	26.26		$	23.95		$	19.77
Net investment income (loss)1		0.07			0.005			(0.08	)		0.14			0.14
Net realized and unrealized gains		3.64			0.12			3.77			4.46			4.15
Net increase from operations		3.71			0.12			3.69			4.60			4.29
Dividends from net investment income		(0.08	)		—			(0.06	)		(0.10	)		(0.11	)
Distributions from net realized gains		(0.72	)		(3.92	)		(3.06	)		(2.19	)		—
Total dividends and distributions		(0.80	)		(3.92	)		(3.12	)		(2.29	)		(0.11	)
Net asset value, end of year	$	25.94		$	23.03		$	26.83		$	26.26		$	23.95
Total investment return2		16.75	%		1.01	%		14.88	%		19.87	%		21.79	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.93	%3		0.93	%3		0.92	%3		0.93	%		0.95	%
Expenses after fee waivers and/or expense reimbursements		0.92	%3		0.92	%3		0.92	%3		0.93	%		0.95	%
Net investment income (loss)		0.32	%		0.01	%		(0.32	)%		0.53	%		0.65	%
Supplemental data:
Net assets, end of year (000's)	$	1,270,696		$	1,214,069		$	1,359,224		$	1,289,577		$	1,113,514
Portfolio turnover		40	%		33	%		48	%		40	%		76	%

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.

⁵  Amount represents less than $0.005 per share.

See accompanying notes to financial statements.

305

PACE Small/Medium Co Value Equity Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	18.86		$	20.81		$	22.05		$	22.19		$	16.61
Net investment income1		0.13			0.07			0.11			0.05			0.13
Net realized and unrealized gains		2.75			0.08			1.41			2.67			5.55
Net increase from operations		2.88			0.15			1.52			2.72			5.68
Dividends from net investment income		(0.28	)		(0.11	)		(0.03	)		(0.09	)		(0.10	)
Distributions from net realized gains		(0.56	)		(1.99	)		(2.73	)		(2.77	)		—
Total dividends and distributions		(0.84	)		(2.10	)		(2.76	)		(2.86	)		(0.10	)
Net asset value, end of year	$	20.90		$	18.86		$	20.81		$	22.05		$	22.19
Total investment return2		15.25	%		1.60	%		7.35	%		12.74	%		34.23	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.23	%4		1.24	%		1.24	%		1.24	%		1.28	%
Expenses after fee waivers and/or expense reimbursements		1.21	%4		1.24	%		1.24	%		1.24	%		1.28	%
Net investment income		0.66	%		0.41	%		0.53	%		0.24	%		0.68	%
Supplemental data:
Net assets, end of year (000's)	$	17,627		$	16,670		$	18,334		$	32,039		$	31,930
Portfolio turnover		102	%		74	%		66	%		86	%		97	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	19.55		$	21.48		$	22.73		$	22.79		$	17.06
Net investment income1		0.30			0.12			0.14			0.08			0.16
Net realized and unrealized gains		2.70			0.09			1.45			2.75			5.70
Net increase from operations		3.00			0.21			1.59			2.83			5.86
Dividends from net investment income		(0.28	)		(0.15	)		(0.11	)		(0.12	)		(0.13	)
Distributions from net realized gains		(0.56	)		(1.99	)		(2.73	)		(2.77	)		—
Total dividends and distributions		(0.84	)		(2.14	)		(2.84	)		(2.89	)		(0.13	)
Net asset value, end of year	$	21.71		$	19.55		$	21.48		$	22.73		$	22.79
Total investment return2		15.35	%		1.81	%		7.47	%		12.84	%		34.41	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.13	%4		1.07	%		1.10	%		1.11	%		1.19	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.10	%4		1.07	%		1.10	%		1.13	%3		1.16	%
Net investment income		1.43	%		0.63	%		0.63	%		0.35	%		0.80	%
Supplemental data:
Net assets, end of year (000's)	$	297		$	697		$	998		$	912		$	768
Portfolio turnover		102	%		74	%		66	%		86	%		97	%

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, redemption fees or program 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.

306

PACE Small/Medium Co Value Equity Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	15.99		$	17.99		$	19.52		$	20.00		$	15.00
Net investment income1		(0.01	)		(0.06	)		(0.05	)		(0.10	)		(0.01	)
Net realized and unrealized gains		2.31			0.05			1.25			2.39			5.01
Net increase from operations		2.30			(0.01	)		1.20			2.29			5.00
Dividends from net investment income		(0.15	)		—			—			—			—
Distributions from net realized gains		(0.56	)		(1.99	)		(2.73	)		(2.77	)		—
Total dividends and distributions		(0.71	)		(1.99	)		(2.73	)		(2.77	)		—
Net asset value, end of year	$	17.58		$	15.99		$	17.99		$	19.52		$	20.00
Total investment return2		14.35	%		0.83	%		6.59	%		11.84	%		33.24	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.99	%4		2.01	%		1.98	%		2.00	%		2.03	%
Expenses after fee waivers and/or expense reimbursements		1.97	%4		2.01	%		1.98	%		2.00	%		2.03	%
Net investment income		(0.06	)%		(0.36	)%		(0.24	)%		(0.51	)%		(0.08	)%
Supplemental data:
Net assets, end of year (000's)	$	4,239		$	4,324		$	4,843		$	5,106		$	4,983
Portfolio turnover		102	%		74	%		66	%		86	%		97	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	19.35		$	21.30		$	22.54		$	22.63		$	16.94
Net investment income1		0.17			0.10			0.14			0.07			0.15
Net realized and unrealized gains		2.81			0.08			1.46			2.72			5.67
Net increase from operations		2.98			0.18			1.60			2.79			5.82
Dividends from net investment income		(0.30	)		(0.14	)		(0.11	)		(0.11	)		(0.13	)
Distributions from net realized gains		(0.56	)		(1.99	)		(2.73	)		(2.77	)		—
Total dividends and distributions		(0.86	)		(2.13	)		(2.84	)		(2.88	)		(0.13	)
Net asset value, end of year	$	21.47		$	19.35		$	21.30		$	22.54		$	22.63
Total investment return2		15.41	%		1.77	%		7.49	%		12.77	%		34.51	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.09	%4		1.11	%		1.09	%		1.11	%		1.15	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.07	%4		1.11	%		1.09	%		1.16	%3		1.16	%3
Net investment income		0.82	%		0.53	%		0.65	%		0.32	%		0.79	%
Supplemental data:
Net assets, end of year (000's)	$	503,464		$	490,762		$	525,959		$	510,377		$	448,879
Portfolio turnover		102	%		74	%		66	%		86	%		97	%

³  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

⁴  Includes interest expense representing less than 0.005%.

See accompanying notes to financial statements.

307

PACE Small/Medium Co Growth Equity Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.34		$	20.45		$	19.72		$	21.42		$	16.45
Net investment loss1		(0.09	)		(0.10	)		(0.14	)		(0.16	)		(0.08	)
Net realized and unrealized gains (losses)		2.54			(2.23	)		3.90			1.34			5.35
Net increase (decrease) from operations		2.45			(2.33	)		3.76			1.18			5.27
Distributions from net realized gains		—			(3.78	)		(3.03	)		(2.88	)		(0.30	)
Net asset value, end of year	$	16.79		$	14.34		$	20.45		$	19.72		$	21.42
Total investment return2		17.09	%		(11.20	)%		20.82	%		4.92	%		32.44	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.23	%		1.25	%3		1.24	%		1.25	%		1.26	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.19	%		1.21	%3		1.21	%		1.25	%		1.26	%
Net investment loss		(0.61	)%		(0.64	)%		(0.70	)%		(0.77	)%		(0.43	)%
Supplemental data:
Net assets, end of year (000's)	$	22,681		$	21,912		$	28,386		$	40,210		$	41,721
Portfolio turnover		93	%		98	%		88	%		94	%		60	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	15.44		$	21.67		$	20.72		$	22.34		$	17.13
Net investment loss1		(0.08	)		(0.09	)		(0.13	)		(0.15	)		(0.07	)
Net realized and unrealized gains (losses)		2.72			(2.36	)		4.11			1.41			5.58
Net increase (decrease) from operations		2.64			(2.45	)		3.98			1.26			5.51
Distributions from net realized gains		—			(3.78	)		(3.03	)		(2.88	)		(0.30	)
Net asset value, end of year	$	18.08		$	15.44		$	21.67		$	20.72		$	22.34
Total investment return2		17.16	%		(11.11	)%		20.89	%		5.09	%		32.55	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.24	%		1.09	%3,4		1.13	%		1.14	%		1.25	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.13	%		1.12	%3,4		1.11	%3		1.13	%		1.13	%
Net investment loss		(0.48	)%		(0.55	)%		(0.62	)%		(0.65	)%		(0.33	)%
Supplemental data:
Net assets, end of year (000's)	$	100		$	488		$	844		$	667		$	588
Portfolio turnover		93	%		98	%		88	%		94	%		60	%

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, redemption fees or program 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.

308

PACE Small/Medium Co Growth Equity Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	11.27		$	17.11		$	17.07		$	19.02		$	14.75
Net investment loss1		(0.17	)		(0.17	)		(0.24	)		(0.28	)		(0.20	)
Net realized and unrealized gains (losses)		2.00			(1.89	)		3.31			1.21			4.77
Net increase (decrease) from operations		1.83			(2.06	)		3.07			0.93			4.57
Distributions from net realized gains		—			(3.78	)		(3.03	)		(2.88	)		(0.30	)
Net asset value, end of year	$	13.10		$	11.27		$	17.11		$	17.07		$	19.02
Total investment return2		16.24	%		(11.93	)%		19.93	%		4.16	%		31.42	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		2.00	%		2.02	%3		1.99	%		2.01	%		2.02	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.96	%		1.98	%3		1.96	%		2.00	%		2.02	%
Net investment loss		(1.39	)%		(1.41	)%		(1.46	)%		(1.52	)%		(1.19	)%
Supplemental data:
Net assets, end of year (000's)	$	2,985		$	2,753		$	4,116		$	3,977		$	4,038
Portfolio turnover		93	%		98	%		88	%		94	%		60	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	15.21		$	21.40		$	20.49		$	22.13		$	16.97
Net investment loss1		(0.08	)		(0.08	)		(0.13	)		(0.14	)		(0.06	)
Net realized and unrealized gains (losses)		2.69			(2.33	)		4.07			1.38			5.52
Net increase (decrease) from operations		2.61			(2.41	)		3.94			1.24			5.46
Distributions from net realized gains		—			(3.78	)		(3.03	)		(2.88	)		(0.30	)
Net asset value, end of year	$	17.82		$	15.21		$	21.40		$	20.49		$	22.13
Total investment return2		17.16	%		(11.07	)%		20.93	%		5.04	%		32.57	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments		1.11	%		1.13	%3		1.10	%		1.12	%		1.14	%
Expenses after fee waivers and/or expense reimbursements/recoupments		1.07	%		1.09	%3		1.11	%3		1.13	%3		1.13	%
Net investment loss		(0.49	)%		(0.52	)%		(0.61	)%		(0.65	)%		(0.30	)%
Supplemental data:
Net assets, end of year (000's)	$	469,557		$	444,300		$	545,517		$	474,468		$	457,011
Portfolio turnover		93	%		98	%		88	%		94	%		60	%

³  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

⁴  Includes interest expense representing less than 0.005%.

See accompanying notes to financial statements.

309

PACE International Equity Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.19		$	15.04		$	15.60		$	13.96		$	11.63
Net investment income1		0.26			0.22			0.20			0.35			0.24
Net realized and unrealized gains (losses)		2.06			(0.87	)		(0.43	)		1.56			2.36
Net increase (decrease) from operations		2.32			(0.65	)		(0.23	)		1.91			2.60
Dividends from net investment income		(0.28	)		(0.20	)		(0.33	)		(0.27	)		(0.27	)
Net asset value, end of year	$	16.23		$	14.19		$	15.04		$	15.60		$	13.96
Total investment return2		16.71	%		(4.30	)%		(1.38	)%		13.78	%		22.63	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments including dividend expense, interest expense and other borrowing costs for investments sold short		1.79	%3		1.86	%3		1.78	%3		1.70	%		1.42	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		1.76	%3		1.82	%3		1.75	%3		1.68	%		1.42	%4
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.37	%		1.38	%		1.37	%		1.37	%		1.42	%4
Net investment income		1.77	%		1.61	%		1.31	%		2.33	%		1.84	%
Supplemental data:
Net assets, end of year (000's)	$	31,113		$	29,788		$	33,882		$	57,389		$	55,533
Portfolio turnover		81	%		80	%		79	%		86	%		36	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.14		$	15.00		$	15.59		$	13.95		$	11.63
Net investment income1		0.30			0.26			0.25			0.40			0.28
Net realized and unrealized gains (losses)		2.05			(0.88	)		(0.44	)		1.55			2.35
Net increase (decrease) from operations		2.35			(0.62	)		(0.19	)		1.95			2.63
Dividends from net investment income		(0.32	)		(0.24	)		(0.40	)		(0.31	)		(0.31	)
Net asset value, end of year	$	16.17		$	14.14		$	15.00		$	15.59		$	13.95
Total investment return2		17.04	%		(4.09	)%		(1.09	)%		14.10	%		22.97	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments including dividend expense, interest expense and other borrowing costs for investments sold short		1.51	%3		1.56	%3		1.51	%3		1.42	%		1.16	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		1.48	%3		1.53	%3		1.48	%3		1.40	%		1.16	%4
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.09	%		1.09	%		1.10	%		1.09	%		1.16	%4
Net investment income		2.04	%		1.86	%		1.64	%		2.63	%		2.13	%
Supplemental data:
Net assets, end of year (000's)	$	14,726		$	15,900		$	19,150		$	22,915		$	20,865
Portfolio turnover		81	%		80	%		79	%		86	%		36	%

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, redemption fees or program 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.

310

PACE International Equity Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.88		$	14.72		$	15.29		$	13.68		$	11.41
Net investment income1		0.14			0.11			0.09			0.23			0.13
Net realized and unrealized gains (losses)		2.02			(0.86	)		(0.43	)		1.53			2.31
Net increase (decrease) from operations		2.16			(0.75	)		(0.34	)		1.76			2.44
Dividends from net investment income		(0.15	)		(0.09	)		(0.23	)		(0.15	)		(0.17	)
Net asset value, end of year	$	15.89		$	13.88		$	14.72		$	15.29		$	13.68
Total investment return2		15.78	%		(5.10	)%		(2.14	)%		12.93	%		21.50	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments including dividend expense, interest expense and other borrowing costs for investments sold short		2.58	%3		2.65	%3		2.58	%3		2.51	%		2.26	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		2.55	%3		2.62	%3		2.55	%3		2.49	%		2.25	%
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		2.16	%		2.17	%		2.16	%		2.18	%		2.25	%
Net investment income		0.95	%		0.83	%		0.62	%		1.52	%		1.01	%
Supplemental data:
Net assets, end of year (000's)	$	2,047		$	2,230		$	2,744		$	2,919		$	2,746
Portfolio turnover		81	%		80	%		79	%		86	%		36	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.11		$	14.97		$	15.56		$	13.92		$	11.60
Net investment income1		0.31			0.26			0.25			0.40			0.28
Net realized and unrealized gains (losses)		2.03			(0.88	)		(0.44	)		1.54			2.35
Net increase (decrease) from operations		2.34			(0.62	)		(0.19	)		1.94			2.63
Dividends from net investment income		(0.32	)		(0.24	)		(0.40	)		(0.30	)		(0.31	)
Net asset value, end of year	$	16.13		$	14.11		$	14.97		$	15.56		$	13.92
Total investment return2		17.08	%		(4.09	)%		(1.11	)%		14.12	%		22.92	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments including dividend expense, interest expense and other borrowing costs for investments sold short		1.51	%3		1.58	%3		1.52	%3		1.45	%		1.17	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		1.48	%3		1.54	%3		1.49	%3		1.43	%		1.17	%4
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.09	%		1.10	%		1.10	%		1.11	%		1.17	%4
Net investment income		2.10	%		1.90	%		1.69	%		2.63	%		2.12	%
Supplemental data:
Net assets, end of year (000's)	$	1,104,550		$	924,833		$	1,016,420		$	1,025,757		$	863,063
Portfolio turnover		81	%		80	%		79	%		86	%		36	%

³  Includes interest expense representing less than 0.005%.

⁴  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.

311

PACE International Emerging Markets Equity Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	11.41		$	11.81		$	13.56		$	12.29		$	11.81
Net investment income1		0.13			0.09			0.09			0.14			0.09
Net realized and unrealized gains (losses)		2.14			(0.46	)		(1.78	)		1.17			0.49
Net increase (decrease) from operations		2.27			(0.37	)		(1.69	)		1.31			0.58
Dividends from net investment income		(0.09	)		(0.03	)		(0.06	)		(0.04	)		(0.10	)
Total dividends and distributions		(0.09	)		(0.03	)		(0.06	)		(0.04	)		(0.10	)
Net asset value, end of year	$	13.59		$	11.41		$	11.81		$	13.56		$	12.29
Total investment return3		19.95	%		(3.08	)%		(12.50	)%		10.71	%		4.81	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.80	%4		1.90	%4		1.77	%4		1.80	%		1.82	%
Expenses after fee waivers and/or expense reimbursements		1.75	%4		1.80	%4		1.67	%4		1.69	%		1.75	%
Net investment income		1.06	%		0.86	%		0.67	%		1.14	%		0.72	%
Supplemental data:
Net assets, end of year (000's)	$	4,076		$	3,931		$	4,707		$	17,200		$	16,810
Portfolio turnover		65	%		65	%		63	%		74	%		158	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	11.51		$	11.97		$	13.82		$	12.53		$	12.03
Net investment income1		0.16			0.12			0.15			0.18			0.12
Net realized and unrealized gains (losses)		2.15			(0.47	)		(1.84	)		1.18			0.51
Net increase (decrease) from operations		2.31			(0.35	)		(1.69	)		1.36			0.63
Dividends from net investment income		(0.12	)		(0.11	)		(0.16	)		(0.07	)		(0.13	)
Total dividends and distributions		(0.12	)		(0.11	)		(0.16	)		(0.07	)		(0.13	)
Net asset value, end of year	$	13.70		$	11.51		$	11.97		$	13.82		$	12.53
Total investment return3		20.21	%		(2.80	)%		(12.30	)%		10.94	%		5.13	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.54	%4		1.63	%4		1.53	%4		1.55	%		1.58	%
Expenses after fee waivers and/or expense reimbursements		1.50	%4		1.54	%4		1.44	%4		1.44	%		1.51	%
Net investment income		1.30	%		1.14	%		1.15	%		1.37	%		0.94	%
Supplemental data:
Net assets, end of year (000's)	$	7,795		$	7,923		$	8,767		$	11,978		$	12,835
Portfolio turnover		65	%		65	%		63	%		74	%		158	%

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, redemption fees or program 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.

312

PACE International Emerging Markets Equity Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	10.52		$	10.93		$	12.61		$	11.48		$	11.04
Net investment income1		0.03			0.01			0.03			0.04			(0.00	)2
Net realized and unrealized gains (losses)		1.99			(0.42	)		(1.68	)		1.09			0.44
Net increase (decrease) from operations		2.02			(0.41	)		(1.65	)		1.13			0.44
Dividends from net investment income		(0.01	)		—			(0.03	)		—			—
Total dividends and distributions		(0.01	)		—			(0.03	)		—			—
Net asset value, end of year	$	12.53		$	10.52		$	10.93		$	12.61		$	11.48
Total investment return3		19.04	%		(3.75	)%		(13.17	)%		9.93	%		3.99	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		2.55	%4		2.65	%4		2.50	%4		2.55	%		2.57	%
Expenses after fee waivers and/or expense reimbursements		2.50	%4		2.55	%4		2.41	%4		2.44	%		2.49	%
Net investment income		0.29	%		0.12	%		0.21	%		0.37	%		(0.04	)%
Supplemental data:
Net assets, end of year (000's)	$	1,355		$	1,337		$	1,661		$	2,079		$	2,201
Portfolio turnover		65	%		65	%		63	%		74	%		158	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	11.45		$	11.91		$	13.75		$	12.47		$	11.98
Net investment income1		0.16			0.12			0.16			0.18			0.12
Net realized and unrealized gains (losses)		2.14			(0.47	)		(1.85	)		1.17			0.47
Net increase (decrease) from operations		2.30			(0.35	)		(1.69	)		1.35			0.59
Dividends from net investment income		(0.12	)		(0.11	)		(0.15	)		(0.07	)		(0.10	)
Total dividends and distributions		(0.12	)		(0.11	)		(0.15	)		(0.07	)		(0.10	)
Net asset value, end of year	$	13.63		$	11.45		$	11.91		$	13.75		$	12.47
Total investment return3		20.18	%		(2.82	)%		(12.33	)%		10.86	%		4.87	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.59	%4		1.69	%4		1.56	%4		1.64	%		1.75	%
Expenses after fee waivers and/or expense reimbursements		1.50	%4		1.60	%4		1.47	%4		1.53	%		1.67	%
Net investment income		1.33	%		1.10	%		1.18	%		1.37	%		0.92	%
Supplemental data:
Net assets, end of year (000's)	$	454,178		$	394,346		$	417,751		$	450,438		$	334,525
Portfolio turnover		65	%		65	%		63	%		74	%		158	%

⁴  Includes interest expense representing less than 0.005%.

See accompanying notes to financial statements.

313

PACE Global Real Estate Securities Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	8.03		$	7.51		$	7.33		$	6.52		$	6.05
Net investment income1		0.17			0.13			0.16			0.10			0.08
Net realized and unrealized gains (losses)		(0.21	)		0.58			0.02			0.83			0.65
Net increase (decrease) from operations		(0.04	)		0.71			0.18			0.93			0.73
Dividends from net investment income		(0.30	)		(0.19	)		—			(0.12	)		(0.26	)
Net asset value, end of year	$	7.69		$	8.03		$	7.51		$	7.33		$	6.52
Total investment return2		(0.15	)%		9.86	%		2.46	%		14.56	%		12.24	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.54	%3		1.65	%		1.59	%		1.59	%		1.56	%
Expenses after fee waivers and/or expense reimbursements		1.46	%3		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income		2.28	%		1.79	%		2.21	%		1.55	%		1.19	%
Supplemental data:
Net assets, end of year (000's)	$	458		$	373		$	363		$	5,692		$	5,233
Portfolio turnover		98	%		75	%		102	%		53	%		92	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	7.77		$	7.30		$	7.37		$	6.55		$	6.08
Net investment income1		0.18			0.19			0.14			0.12			0.09
Net realized and unrealized gains (losses)		(0.20	)		0.50			0.05			0.84			0.66
Net increase (decrease) from operations		(0.02	)		0.69			0.19			0.96			0.75
Dividends from net investment income		(0.30	)		(0.22	)		(0.26	)		(0.14	)		(0.28	)
Net asset value, end of year	$	7.45		$	7.77		$	7.30		$	7.37		$	6.55
Total investment return2		0.08	%		9.94	%		2.58	%		14.94	%		12.53	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.53	%3		1.50	%		1.27	%		1.38	%		1.39	%
Expenses after fee waivers and/or expense reimbursements		1.21	%3		1.20	%		1.20	%		1.20	%		1.20	%
Net investment income		2.44	%		2.80	%		1.84	%		1.81	%		1.43	%
Supplemental data:
Net assets, end of year (000's)	$	30		$	25		$	281		$	280		$	294
Portfolio turnover		98	%		75	%		102	%		53	%		92	%

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, redemption fees or program 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%.

314

PACE Global Real Estate Securities Investments

Financial highlights (continued)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	7.69		$	7.21		$	7.29		$	6.48		$	6.00
Net investment income1		0.12			0.08			0.06			0.05			0.03
Net realized and unrealized gains (losses)		(0.21	)		0.56			0.06			0.83			0.65
Net increase (decrease) from operations		(0.09	)		0.64			0.12			0.88			0.68
Dividends from net investment income		(0.25	)		(0.16	)		(0.20	)		(0.07	)		(0.20	)
Net asset value, end of year	$	7.35		$	7.69		$	7.21		$	7.29		$	6.48
Total investment return2		(0.96	)%		9.11	%		1.58	%		13.77	%		11.52	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		2.22	%3		2.26	%		2.24	%		2.30	%		2.27	%
Expenses after fee waivers and/or expense reimbursements		2.21	%3		2.20	%		2.20	%		2.20	%		2.20	%
Net investment income		1.63	%		1.11	%		0.79	%		0.78	%		0.40	%
Supplemental data:
Net assets, end of year (000's)	$	252		$	319		$	340		$	272		$	222
Portfolio turnover		98	%		75	%		102	%		53	%		92	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	7.76		$	7.28		$	7.35		$	6.53		$	6.06
Net investment income1		0.19			0.14			0.14			0.12			0.10
Net realized and unrealized gains (losses)		(0.21	)		0.56			0.05			0.84			0.65
Net increase (decrease) from operations		(0.02	)		0.70			0.19			0.96			0.75
Dividends from net investment income		(0.32	)		(0.22	)		(0.26	)		(0.14	)		(0.28	)
Net asset value, end of year	$	7.42		$	7.76		$	7.28		$	7.35		$	6.53
Total investment return2		0.19	%		10.13	%		2.59	%		15.00	%		12.57	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		1.58	%3		1.59	%		1.56	%		1.63	%		1.52	%
Expenses after fee waivers and/or expense reimbursements		1.21	%3		1.20	%		1.20	%		1.20	%		1.20	%
Net investment income		2.58	%		2.07	%		1.83	%		1.79	%		1.47	%
Supplemental data:
Net assets, end of year (000's)	$	140,262		$	151,565		$	148,096		$	145,067		$	116,509
Portfolio turnover		98	%		75	%		102	%		53	%		92	%

See accompanying notes to financial statements.

315

PACE Alternative Strategies Investments

Financial highlights

Selected data for a share of beneficial interest outstanding throughout each year is presented below:

Class A

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	10.49		$	11.10		$	10.62		$	10.21		$	9.35
Net investment loss1		(0.07	)		(0.06	)		(0.08	)		(0.09	)		(0.05	)
Net realized and unrealized gains (losses)		0.29			(0.32	)		0.56			0.70			0.95
Net increase (decrease) from operations		0.22			(0.38	)		0.48			0.61			0.90
Dividends from net investment income		—			(0.23	)		—			(0.20	)		(0.04	)
Net asset value, end of year	$	10.71		$	10.49		$	11.10		$	10.62		$	10.21
Total investment return2		2.19	%		(3.47	)%		4.52	%		5.99	%		9.54	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		2.26	%		2.02	%		1.93	%		1.97	%		2.01	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		2.17	%		1.95	%		1.88	%		1.99	%3		1.98	%3
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.75	%		1.79	%		1.81	%		1.88	%3		1.90	%3
Net investment loss		(0.71	)%		(0.53	)%		(0.74	)%		(0.89	)%		(0.49	)%
Supplemental data:
Net assets, end of year (000's)	$	8,702		$	9,800		$	7,408		$	77,331		$	53,728
Portfolio turnover		292	%		221	%		165	%		114	%		140	%

Class Y

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	10.42		$	11.12		$	10.71		$	10.30		$	9.43
Net investment loss1		(0.06	)		(0.02	)		(0.05	)		(0.07	)		(0.03	)
Net realized and unrealized gains (losses)		0.29			(0.31	)		0.56			0.70			0.97
Net increase (decrease) from operations		0.23			(0.33	)		0.51			0.63			0.94
Dividends from net investment income		—			(0.37	)		(0.10	)		(0.22	)		(0.07	)
Net asset value, end of year	$	10.65		$	10.42		$	11.12		$	10.71		$	10.30
Total investment return2		2.40	%		(2.99	)%		4.82	%		6.18	%		9.89	%
Ratios to average net assets:
Expenses before fee waivers and/or reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		2.06	%		1.69	%		1.72	%		1.74	%		1.77	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		1.96	%		1.62	%		1.68	%3		1.75	%3		1.73	%3
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.57	%		1.48	%		1.60	%		1.63	%3		1.65	%3
Net investment loss		(0.54	)%		(0.17	)%		(0.43	)%		(0.65	)%		(0.25	)%
Supplemental data:
Net assets, end of year (000's)	$	646		$	1,926		$	2,449		$	4,629		$	2,732
Portfolio turnover		292	%		221	%		165	%		114	%		140	%

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, redemption fees or program 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.

316

PACE Alternative Strategies Investments

Financial highlights (concluded)

Class C

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	9.93		$	10.66		$	10.29		$	9.90		$	9.09
Net investment loss1		(0.15	)		(0.13	)		(0.14	)		(0.16	)		(0.11	)
Net realized and unrealized gains (losses)		0.27			(0.30	)		0.53			0.67			0.92
Net increase (decrease) from operations		0.12			(0.43	)		0.39			0.51			0.81
Dividends from net investment income		—			(0.30	)		(0.02	)		(0.12	)		—
Net asset value, end of year	$	10.05		$	9.93		$	10.66		$	10.29		$	9.90
Total investment return2		1.41	%		(4.08	)%		3.81	%		5.18	%		8.79	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		3.02	%		2.75	%		2.67	%		2.71	%		2.72	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		2.92	%		2.68	%		2.60	%		2.70	%		2.70	%
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		2.51	%		2.52	%		2.52	%		2.58	%		2.62	%
Net investment loss		(1.47	)%		(1.27	)%		(1.37	)%		(1.60	)%		(1.20	)%
Supplemental data:
Net assets, end of year (000's)	$	9,363		$	12,398		$	9,385		$	6,346		$	4,827
Portfolio turnover		292	%		221	%		165	%		114	%		140	%

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	10.38		$	11.09		$	10.69		$	10.27		$	9.41
Net investment loss1		(0.05	)		(0.03	)		(0.04	)		(0.07	)		(0.02	)
Net realized and unrealized gains (losses)		0.28			(0.31	)		0.55			0.71			0.95
Net increase (decrease) from operations		0.23			(0.34	)		0.51			0.64			0.93
Dividends from net investment income		—			(0.37	)		(0.11	)		(0.22	)		(0.07	)
Net asset value, end of year	$	10.61		$	10.38		$	11.09		$	10.69		$	10.27
Total investment return2		2.41	%		(3.13	)%		4.79	%		6.27	%		9.93	%
Ratios to average net assets:
Expenses before fee waivers and/or reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		2.04	%		1.77	%		1.69	%		1.74	%4		1.74	%
Expenses after fee waivers and/or expense reimbursements/recoupments, including dividend expense, interest expense and other borrowing costs for investments sold short		1.94	%		1.69	%		1.62	%		1.74	%3,4		1.71	%
Expenses after fee waivers and/or expense reimbursements/recoupments, excluding dividend expense, interest expense and other borrowing costs for investments sold short		1.52	%		1.53	%		1.54	%		1.62	%3		1.63	%
Net investment loss		(0.48	)%		(0.30	)%		(0.38	)%		(0.64	)%		(0.21	)%
Supplemental data:
Net assets, end of year (000's)	$	650,347		$	712,676		$	782,683		$	611,399		$	493,524
Portfolio turnover		292	%		221	%		165	%		114	%		140	%

³  The investment manager recouped expenses previously reimbursed by the investment manager on behalf of the Portfolio, not to exceed the expense cap.

⁴  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%.

See accompanying notes to financial statements.

317

PACE Select Advisors Trust

Notes to financial statements

Organization and significant accounting policies

PACE Select Advisors Trust (the "Trust") is an open-end management investment company registered with the US Securities and Exchange Commission ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"), currently offering multiple series representing separate investment portfolios. The Trust is a Delaware statutory trust organized 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 at par value of $0.001 per share.

The Trust has fifteen series available for investment, each having its own investment objectives and policies: PACE Government Money Market Investments, PACE Mortgage-Backed Securities Fixed Income Investments, PACE Intermediate Fixed Income Investments, PACE Strategic Fixed Income Investments, PACE Municipal Fixed Income Investments, PACE Global Fixed Income Investments (formerly, 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 (each a "Portfolio" and collectively, the "Portfolios"). Each of the Portfolios is classified as a diversified investment company for purposes of the 1940 Act.

UBS Asset Management (Americas) Inc. ("UBS AM") serves as the investment manager and administrator for the Portfolios and also as the investment advisor for PACE Government Money Market Investments and a portion of PACE Alternative Strategies Investments' assets. Subject to the approval and oversight of the Portfolios' Board of Trustees (the "Board"), UBS AM selects and oversees other investment subadvisors, who provide advisory services for the other Portfolios. UBS Asset Management (US) Inc. ("UBS AM (US)") serves as principal underwriter for the Portfolios. UBS AM and UBS AM (US) are indirect wholly owned subsidiaries of UBS Group AG. UBS Group AG is an internationally diversified organization with headquarters in Zurich, Switzerland. UBS Group AG operates in many areas of the financial services industry.

With the exception of PACE Government Money Market Investments, which currently offers Class P shares only, each Portfolio currently offers Class A, 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. 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 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 and certain other advisory programs offered through select sponsors, except that PACE Government Money Market Investments shares are also available to participants in 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 Portfolios may enter into contracts that contain a variety of representations 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 any prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

PACE Government Money Market Investments attempts to maintain a stable net asset value of $1.00 per share. There is no assurance, however, that the Portfolio will be able 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

318

PACE Select Advisors Trust

Notes to financial statements

enable it to do so. The Portfolio has adopted a policy to operate as a "government money market fund" and as such the Portfolio is permitted to seek to maintain a stable price per share. In addition, by operating as a "government money market fund", the Portfolio is exempt from requirements that permit the imposition of a liquidity fee and/or temporary redemption gates. While the Portfolio's Board may elect to subject the Portfolio to liquidity fee and gate requirements in the future, the Board has not elected to do so at this time.

The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") is the exclusive reference of authoritative US generally accepted accounting principles ("US 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 US GAAP for SEC registrants. The Portfolios' financial statements are prepared in accordance with US GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

In August 2014, the FASB issued Accounting Standard Update No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"). The update provides guidance about management's responsibility to evaluate whether there is substantial doubt about the entity's ability to continue as a going concern and to provide related footnote disclosure. Management has evaluated relevant conditions and events, which are known and reasonably knowable, and has determined that there are no conditions and events that raise substantial doubt about the Portfolios' ability to continue as a going concern.

In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The amendments to Regulation S-X took effect on August 1, 2017. At this time, management is assessing the anticipated impact of these regulatory developments.

The following is a summary of significant accounting policies:

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 and expense are 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.

Dividends and distributions—Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends from net investment income and distributions from net realized capital gains and/or return of capital are determined in accordance with US federal income tax regulations, which may differ from US 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.

319

PACE Select Advisors Trust

Notes to financial statements

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 and sales of investment securities and income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. The resulting exchange gains and losses are included in the Statement of operations.

The Portfolios do not generally isolate the effect of fluctuations in foreign exchange rates from the effect of the changes 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 securities pursuant to US federal income tax regulations. Net realized foreign currency transaction gain (loss) is treated as ordinary income (loss) for income tax reporting purposes.

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 some Portfolios in the Trust invest.

Small capitalization ("small cap") companies may be more vulnerable than larger capitalization ("large cap") companies to adverse business or economic developments. Small cap companies may also have limited product lines, markets or financial resources, and may be dependent on a relatively small management group. Securities of such companies may be less liquid and more volatile than securities of large cap companies or the market averages in general and therefore may involve greater risk than investing in large cap companies. In addition, small cap companies may not be well-known to the investing public, may not have institutional ownership and may have only cyclical, static or moderate growth prospects.

The ability of the issuers of debt securities held by the Portfolios to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region.

Investments in bonds with ratings of BB (Standard & Poor's Financial Services LLC or Fitch Ratings, Inc.) or Ba (Moody's Investors Service, Inc.) or below (commonly referred to as "high yield" bonds), or deemed of equivalent quality, have an increased risk of defaulting or otherwise being unable to honor a financial obligation. These securities are considered to be predominantly speculative with respect to an issuer's capacity to pay interest and repay principal in accordance with the terms of the obligations. Lower-quality bonds are more likely to be subject to an issuer's default or downgrade than investment grade (higher-quality) bonds.

Valuation of investments

Each Portfolio generally calculates its net asset value on days that the New York Stock Exchange ("NYSE") is open. A Portfolio calculates net asset value separately for each class as of the close of regular trading on the NYSE (generally, 4:00 p.m., Eastern time). The NYSE normally is not open, and the Portfolios do not price their shares, on most national holidays and Good Friday. To the extent that a Portfolio's assets are traded in other markets on days when the NYSE is not open, the value of a Portfolio's assets may be affected on those days. If trading on the NYSE is halted for the day before 4:00 p.m., Eastern time, a Portfolio's net asset value per share generally will still be calculated as of the close of regular trading on the NYSE. The time at which a Portfolio calculates its net asset value and until which purchase, sale or exchange orders are accepted may be changed as permitted by the SEC.

320

PACE Select Advisors Trust

Notes to financial statements

Under Rule 2a-7 under the 1940 Act, PACE Government Money Market Investments has adopted a policy to operate as a "government money market fund". Under Rule 2a-7 under the 1940 Act, a "government money market fund" invests 99.5% or more of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash and/or government securities). As a "government money market fund", PACE Government Money Market Investments values its investments at amortized cost unless the Fund's Board determines that this does not represent fair value. Periodic review and monitoring of the valuation of the securities held by the Fund is performed in an effort to ensure that amortized cost approximates market value.

Each Portfolio (other than PACE Government Money Market Investments) calculates its net asset value based on the current market value, where available, for its portfolio investments. The Portfolios normally obtain market values for their investments from independent pricing sources and broker-dealers. Independent pricing sources may use reported last sale prices, official market closing prices, current market quotations or valuations from computerized "evaluation" systems that derive values based on comparable investments. An evaluation system incorporates parameters such as security quality, maturity and coupon, and/ or research and evaluations by its staff, including review of broker- dealer market price quotations, if available, in determining the valuation of the portfolio investments. Investments also may be valued based on appraisals derived from information concerning the investment or similar investments received from recognized dealers in those holdings. Investments 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 on the valuation date available prior to valuation. Investments which are listed on US and foreign stock exchanges normally are valued at the market closing price, the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. Investments listed on foreign stock exchanges may be fair valued based on significant events that have occurred subsequent to the close of the foreign markets. In cases where investments are traded on more than one exchange, the investments are valued on the exchange designated as the primary market by UBS AM. If a market value is not readily available from an independent pricing source for a particular investment, that investment is valued at fair value as determined in good faith by or under the direction of the Board. Foreign currency exchange rates are generally determined as of the close of the NYSE.

Certain investments in which the Portfolios invest are traded in markets that close before 4:00 p.m., Eastern time. Normally, developments that occur between the close of the foreign markets and 4:00 p.m., Eastern time, will not be reflected in a Portfolio's net asset value. However, if any of the Portfolios determine that such developments are so significant that they will materially affect the value of the Portfolio's investments, the Portfolio may adjust the previous closing prices to reflect what is believed to be the fair value of these investments as of 4:00 p.m., Eastern time.

Certain Portfolios may use a systematic fair valuation model provided by an independent third party to value investments principally traded in foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation. The systematic fair valuation model may use calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADRs and futures contracts. If an investment is valued at "fair value," that value is likely to be different from the last quoted market price for the investment. The use of the fair valuation model may result in securities being transferred between Level 1 and Level 2 of the fair valuation hierarchy at the end of the reporting period. Transfers between Level 1 and Level 2, if any, are disclosed near the end of each Portfolio's Portfolio of investments.

The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with 60 days or less remaining to maturity, unless the Board determines that this does not represent fair value.

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 expedient within ASC Topic 820, Fair Value

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Measurement, investments in investment companies without publicly published prices are also valued at the daily net asset value.

All investments quoted in foreign currencies are 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.

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.

OTC swaps are marked-to-market daily based upon values from third party vendors or quotations from market makers to the extent available. In the event that market quotations are not readily available or deemed unreliable, the swap is valued at fair value as determined in good faith by or under the direction of the Board. Centrally cleared swaps are valued using prices from the counterparty clearing houses.

The Board has delegated to the Equities, Fixed Income, and Multi-Asset Valuation Committee ("VC") (formerly UBS AM Global Valuation Committee or GVC) the responsibility for making fair value determinations with respect to the Portfolios' portfolio holdings. The VC is comprised of representatives of management. The VC provides reports to the Board at each quarterly meeting regarding any investments that have been fair valued, valued pursuant to standing instructions approved by the VC, or where non-vendor pricing sources had been used to make fair value determinations when sufficient information exists during the prior quarter. Fair valuation determinations are subject to review at least monthly by the VC during scheduled meetings. Pricing decisions, processes, and controls over fair value determinations are subject to internal and external reviews, including annual internal compliance reviews and periodic internal audit reviews.

The types of investments for which such fair value pricing may be necessary include, but are not limited to: foreign investments under some circumstances, securities of an issuer that has entered into a restructuring; investments whose trading has been halted or suspended; fixed income securities that are in default and for which there is no current market value quotation; and investments that are restricted as to transfer or resale. The need to fair value a Portfolio's portfolio investments may also result from low trading volume in foreign markets or thinly traded domestic investments, and when a security that is subject to a trading limit or collar on the exchange or market on which it is primarily traded reaches the "limit up" or "limit down" price and no trading has taken place at that price. Various factors may be reviewed in order to make a good faith determination of an investment's fair value. These factors include, but are not limited to, fundamental analytical data relating to the investment; the nature and duration of restrictions on disposition of the investment; and the evaluation of forces which influence the market in which the investment is purchased and sold. Valuing investments at fair value involves greater reliance on judgment than valuing investments that have readily available market quotations. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service.

US GAAP requires disclosure regarding the various inputs that are used in determining the value of each 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 each Portfolio's own assumptions in determining the fair value of investments.

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A fair value hierarchy table has been included near the end of each Portfolio's Portfolio of investments.

Investments

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 their 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 in an effort to ensure that the value, including accrued interest, is at least equal to the repurchase price.

Repurchase agreements carry certain risks not associated with direct investments in securities, including a possible decline in the market value of the underlying obligations. If their value becomes less than the repurchase price, plus any agreed-upon additional amount, the counterparty must provide additional collateral so that the collateral is at least equal to the repurchase price plus any agreed-upon additional amount. The difference between the total amount to be received upon repurchase of the obligations and the price that was paid by a Portfolio upon acquisition is accrued as interest and included in its net investment income. 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. Moreover, repurchase agreements secured by obligations that are not eligible for direct investment under Rule 2a-7 under the Investment Company Act or a Portfolio's investment strategies and limitations, may require the Portfolio to promptly dispose of such collateral if the seller or guarantor becomes insolvent. 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 intends to enter into repurchase agreements only in transactions with counterparties believed by UBS AM and the applicable subadvisor to present minimal credit risks.

Each Portfolio may participate in joint repurchase agreement transactions with other Portfolios managed, advised or subadvised by UBS AM in accordance with an exemptive order granted by the SEC pursuant to Section 17(d) of the 1940 Act and Rule 17d-1 thereunder. 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 potentially exposed to a fee for uninvested cash held in a business account at a bank.

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 a reverse repurchase agreement, 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. At the year ended July 31, 2017, there were no reverse repurchase agreements outstanding.

Securities traded on to-be-announced basis—Certain Portfolios may from time to time purchase, or short sell, 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 securities. 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

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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.

Treasury roll transactions—Certain Portfolios may enter into treasury roll transactions. In a treasury roll transaction, a Portfolio sells a Treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an agreed upon price and date. The Portfolio receives cash from the sale of the Treasury security to use for other investment purposes. For US GAAP purposes, a treasury roll transaction is accounted for as a secured borrowing and not as a purchase and sale. The difference between the sale price and repurchase price represents net interest income or net interest expense reflective of an agreed upon rate between the Portfolio and the counterparty over the term of the borrowing. The Portfolio will benefit from the transaction if the income earned on the investment purchased with the cash received in the treasury roll transaction exceeds the interest expense incurred by the Portfolio. If the interest expense exceeds the income earned, the Portfolio's net investment income and dividends to shareholders may be adversely impacted.

Treasury roll transactions involve the risk that the market value of the securities that the Portfolio is required to repurchase may decline below the agreed upon repurchase price of those securities. During the year ended July 31, 2017, only PACE Mortgage-Backed Securities Fixed Income Investments and PACE Strategic Fixed Income Investments utilized treasury roll transactions.

The table below represents the remaining contractual maturity as of July 31, 2017, of the treasury roll transactions accounted for as secured borrowings.

PACE Strategic Fixed Income Investments

Types of securities being bought back	Overnight and continuous		Up to 30 days		31-90 days		Greater than 90 days		Total
US government obligations	$	—	$	47,115,731	$	—	$	—	$	47,115,731

Mortgage-backed securities—Certain Portfolios may invest in mortgage-backed securities ("MBS"), representing direct or indirect interests in pools of underlying mortgage loans that are secured by real property. These securities provide investors with payments consisting of both principal and interest as the mortgages in the underlying mortgage pools are paid.

The timely payment of principal and interest (but not the market value) on MBS issued or guaranteed by Ginnie Mae (formally known as the Government National Mortgage Association or GNMA) is backed by Ginnie Mae and the full faith and credit of the US government. Obligations issued by Fannie Mae (formally known as the Federal National Mortgage Association or FNMA) and Freddie Mac (formally known as the Federal Home Loan Mortgage Corporation or FHLMC) are historically supported only by the credit of the issuer, but currently are guaranteed by the US government in connection with such agencies being placed temporarily into conservatorship by the US government.

Some MBS are sponsored or issued by private entities. Payments of principal and interest (but not the market value) of such private MBS may be supported by pools of mortgage loans or other MBS that are guaranteed, directly or indirectly, by the US government or one of its agencies or instrumentalities, or they may be issued without any government guarantee of the underlying mortgage assets but with some form of non-government credit enhancement.

Collateralized mortgage obligations ("CMO") are a type of MBS. A CMO is a debt security that may be collateralized by whole mortgage loans or mortgage pass-through securities. The mortgage loans or mortgage pass-through securities are divided into classes or tranches with each class having its own characteristics. Investors typically receive payments out of the interest and principal on the underlying mortgages. The portions of these payments that investors receive, as well as the priority of their rights to receive payments, are determined by the specific terms of the CMO class.

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The yield characteristics of MBS differ from those of traditional debt securities. Among the major differences are that interest and principal payments are made more frequently, usually monthly, and that principal may be prepaid at any time because the underlying mortgage loans or other obligations generally may be prepaid at any time. Prepayments on a pool of mortgage loans are influenced by a variety of economic, geographic, social and other factors. Generally, prepayments on fixed-rate mortgage loans will increase during a period of falling interest rates and decrease during a period of rising interest rates. Certain classes of CMOs and other MBS are structured in a manner that makes them extremely sensitive to changes in prepayment rates. Such classes include interest-only ("IO") and principal-only ("PO") classes. IOs are entitled to receive all or a portion of the interest, but none (or only a nominal amount) of the principal payments, from the underlying mortgage assets. If the mortgage assets underlying an IO experience greater than anticipated principal prepayments, then the total amount of interest payments allocable to the IO class, and therefore the yield to investors, generally will be reduced. Conversely, PO classes are entitled to receive all or a portion of the principal payments, but none of the interest, from the underlying mortgage assets. PO classes are purchased at substantial discounts from par, and the yield to investors will be reduced if principal payments are slower than expected.

Asset-backed securities—Certain Portfolios may invest in asset-backed securities ("ABS"), representing interests in pools of certain types of underlying installment loans, home equity loans, leases of various types of real and personal property and receivables from revolving lines of credit (credit cards). Such assets are securitized through the use of trusts or special purpose corporations. The yield characteristics of ABS differ from those of traditional debt securities. One such major difference is that principal may be prepaid at any time because the underlying obligations generally may be prepaid at any time. ABS may decrease in value as a result of increases in interest rates and may benefit less than other fixed-income securities from declining interest rates because of the risk of prepayment.

Loan assignments and participations—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 subadvisor 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.

Short sales "against the box"—Each Portfolio (other than PACE Government Money Market Investments and PACE Municipal Fixed Income Investments) may engage in short sale transactions 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"). A Portfolio might make a short sale "against the box" to hedge against market risks when its subadvisor 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.

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The Portfolio must borrow the security to make delivery to the buyer. 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 appreciation or depreciation on the Statement of operations. 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. 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 incurs transaction costs, including dividend expense, borrowing costs and interest expense, in connection with opening, maintaining and closing short sales "against the box". These dividends and interest are booked as an expense or liability to the Portfolio.

Uncovered short sales—PACE Mortgage-Backed Securities Fixed Income Investments (with respect to securities issued by the US Treasury and TBA securities coupon trades), PACE Large Co Value Equity Investments, PACE International Equity Investments, 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), in anticipation of a decline in the security's price.

The Portfolio must borrow the security to make delivery to the buyer. 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 appreciation or depreciation on the Statement of operations. The Portfolio will realize 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 the Portfolio will realize a gain if the security declines in price between those same dates. Each Portfolio segregates collateral, consisting of cash or liquid assets, sufficient to collateralize the market value of the investments sold short. Each Portfolio incurs transaction costs, including dividend expense, borrowing costs and interest expenses in connection with opening, maintaining and closing short sales. These dividends and interest are booked as an expense or liability to the Portfolio.

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. The Portfolio's investments held long could also decline in value at the same time the value of the investment sold short increases, thereby increasing the Portfolio's potential for loss. There is also the risk that the counterparty to a short sale transaction may fail to honor its contract terms, causing a loss to the Portfolio. In addition, PACE Large Co Value Equity Investments and PACE International Equity Investments may invest the proceeds received upon the initial sale of the security, resulting in leverage and increasing each Portfolio's return and loss potential. PACE Large Co Value Equity Investments and PACE International Equity Investments may also engage in short sale transactions that are effected through their custodian and may deliver cash received in connection with its securities lending activity to the custodian as collateral to secure the short sale transactions.

For the year ended July 31, 2017, PACE Global Real Estate Securities Investments did not engage in uncovered short sale transactions.

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 in each Portfolio's portfolio footnotes.

Derivative instruments

Purchased options—Certain Portfolios may purchase put and call options, including, but not limited to, options on foreign or US securities, indices, foreign currencies, options on futures contracts and options on swap agreements

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(commonly referred to as swaptions), in order to gain exposure to or protect against changes in the markets or in an attempt to enhance income or gains. 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. Purchased options are shown as portfolio holdings within the Portfolio of investments and are included in the Statement of assets and liabilities in investments, at value.

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.

Option writing—Certain Portfolios may write (sell) put and call options, including, but not limited to, options on foreign or US securities, indices, foreign currencies, options on futures contracts and options on swap agreements (commonly referred to as swaptions), in order to gain exposure to or protect against changes in the markets or in an attempt to enhance income or gains.

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 a 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 a 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 a 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, a Portfolio bears 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 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. Maximum payout amounts could be offset by the subsequent sale, if any, of assets obtained via the execution of a payout event. At July 31, 2017, PACE Mortgage-Backed Securities Fixed Income Investments, PACE Intermediate Fixed Income Investments, PACE Strategic Fixed Income Investments, and PACE Alternative Strategies Investments had maximum payout amounts of approximately $10,754,800, $7,826,917, $10,775,841, and $5,066,922 respectively, relating to written put option contracts.

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, either as a hedge or to enhance income or realized gains. Generally, a futures contract is a standard binding agreement to buy or sell a specified quantity of an underlying reference asset, such as a specific security or currency, at a specified price at a specified later date.

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Upon entering into a futures contract, a Portfolio is required to deliver to a broker an amount of cash and/or US government 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 a Portfolio, depending on the daily fluctuations in the value of the underlying futures contracts, except that in the case of certain futures contracts that are held through swap 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 appreciation or depreciation on futures until the futures contract is closed or expires, at which time the net gain or loss is reclassified to realized gain or loss on futures.

Using futures contracts involves various market risks, including interest rate and equity risk. Risks of entering into futures contracts include the possibility 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. To the extent that market prices move in an unexpected direction, there is a risk that a Portfolio will not achieve the anticipated benefits of the futures contract or may realize a loss.

Forward foreign currency contracts—Certain Portfolios may enter into forward foreign currency contracts as part of their investment objective, for purposes of risk management or to hedge the US dollar value of portfolio securities denominated in a particular currency. Generally, a forward foreign currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Non-deliverable forward foreign currency contracts are settled with the counterparty in US dollars, or another fully convertible currency, without the physical delivery of foreign currency.

Fluctuations in the value of open forward foreign currency contracts are recorded daily for book purposes as unrealized appreciation or depreciation 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 been sold or matured.

Risks may arise upon entering into forward foreign currency 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.

Swap agreements—Certain Portfolios may engage in swap agreements, including, but not limited to, interest rate, credit default, total return and variance swap agreements. A Portfolio expects to enter into these transactions to preserve a return or spread on a particular investment or to hedge a portion of the portfolio's duration, to protect against any increase in the price of securities the Portfolio anticipates purchasing at a later date, to gain exposure to certain markets in the most economical way possible or in an attempt to enhance income or gains.

The Portfolios accrue for interim payments on swap agreements on a daily basis, with the net amount recorded within unrealized appreciation or depreciation of swap agreements. Once interim payments are settled in cash, the net amount is recorded as realized gain/loss on swap agreements, in addition to realized gain/loss recorded upon the termination of swap agreements on the Statement of operations. Fluctuations in the value of swap agreements are recorded for financial statement purposes as unrealized appreciation or depreciation on swap agreements.

Certain Portfolios may enter into interest rate swap agreements with another party to receive or pay interest (e.g., an exchange of fixed rate payments for floating rate payments) to protect themselves from interest rate fluctuations. 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. Interest rate swap agreements are subject to general market risk, liquidity risk, counterparty risk and interest rate risk.

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Credit default swap agreements involve commitments to make or receive payments in the event of a default of a security or other credit event of the referenced obligation. As a buyer, the Portfolio would make periodic payments to the counterparty, and the Portfolio would receive payments only upon the occurrence of a default or credit event. If no default or credit event occurs, the Portfolio will lose its periodic stream of payments over the term of the contract. However, if a default or a credit event does occur, the Portfolio typically would receive full notional value for the referenced 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 default or 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 would pay full notional value for the referenced obligation that may have little or no value. Credit default swap agreements may involve greater risks than if the Portfolio had invested in the referenced obligation directly and are subject to general market risk, liquidity risk and credit risk.

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 swap agreements 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 swap agreements on credit 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 market 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 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). A Portfolio may use credit default swap agreements on corporate issues or sovereign issues of an emerging market 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 the value reflected on the Statement of assets and liabilities. Notional amounts of all credit default swap agreements outstanding as of the period end for which a Portfolio is the seller of protection are disclosed under the sections "Credit default swap agreements on credit indices—sell protection" and "Credit default swap agreements 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 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.

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Total return swap agreements involve commitments to pay or receive interest in exchange for a market-linked return based on a notional amount. 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, respectively. Total return swap agreements are marked-to-market daily, and the change, if any, is recorded as unrealized appreciation or depreciation. Total return swap agreements are subject to general market risk, liquidity risk, counterparty risk, interest rate risk, credit risk and the risk that there may be unfavorable changes in the underlying investments or instruments.

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 realized price variance of the underlying asset 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 underlying asset is greater than the strike price and would receive the payoff amount when the variance is less than the strike price.

The use of swap agreements involves investment techniques and risks different from those associated with ordinary portfolio security transactions. If a Portfolio's subadviser is incorrect in its forecast of market values, interest rates and other applicable factors, the investment performance of the Portfolio will be less favorable than it would have been if this investment technique was never used. OTC swap agreements do not involve the delivery of securities and are subject to counterparty risk. If the other party to a swap agreement 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.

Certain clearinghouses offer clearing for limited types of derivatives transactions, such as interest rate and credit default swap agreements. Centrally cleared swap agreements must be transacted through a futures commission merchant ("FCM") and cleared through a clearinghouse that serves as a central counterparty. The performance of a centrally cleared swap transaction is effectively guaranteed by a central clearinghouse, thereby reducing the Portfolio's exposure to the credit risk of its original counterparty. The Portfolio will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared transaction. Centrally cleared swap agreements, if any, are reported on the Statement of assets and liabilities based on variation margin received or paid, if any.

Derivatives by underlying risk—Investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of operations. Under US GAAP, investment companies do not qualify for hedge accounting. 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 US GAAP.

The volume of derivatives as disclosed in each Portfolio's Portfolio of investments is representative of the volume of derivatives outstanding during the year ended July 31, 2017.

Swap agreements, forward foreign currency contracts, swaptions and options written entered into by the Portfolios may contain credit-risk related contingent features that could be triggered subject to certain circumstances. Such circumstances include agreed upon net asset value thresholds. If triggered, the derivative counterparty could request

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additional cash margin and/or terminate the derivative contract. The aggregate fair value of the derivative contracts that are in a net liability position that contain these triggers can be found in the Portfolio of investments. The aggregate fair value of assets that are already posted as collateral as of July 31, 2017 is reflected in the Statement of assets and liabilities.

At July 31, 2017, the Portfolio had the following derivatives categorized by underlying risk:

Asset derivatives¹

	Interest rate risk		Foreign exchange risk		Credit risk		Equity risk		Total
PACE Mortgage-Backed Securities Fixed Income Investments
Options and swaptions purchased	$	378,278	$	—	$	—	$	—	$	378,278
Swap agreements		339,356		—		—		—		339,356
Total value	$	717,634	$	—	$	—	$	—	$	717,634

Table footnotes begin on page 337

Liability derivatives²

	Interest rate risk			Foreign exchange risk		Credit risk		Equity risk		Total
PACE Mortgage-Backed Securities Fixed Income Investments
Options and swaptions written	$	(53,491	)	$	—	$	—	$	—	$	(53,491	)
Swap agreements		(421,214	)		—		—		—		(421,214	)
Total value	$	(474,705	)	$	—	$	—	$	—	$	(474,705	)

Table footnotes begin on page 337

During the year ended July 31, 2017, net realized gains (losses) and net change in unrealized appreciation (depreciation) from derivatives were as follows:

	Interest rate risk			Foreign exchange risk		Credit risk		Equity risk		Total
PACE Mortgage-Backed Securities Fixed Income Investments
Net realized gain (loss)3
Options and swaptions purchased	$	(504,962	)	$	—	$	—	$	—	$	(504,962	)
Options and swaptions written		1,022,000			—		—		—		1,022,000
Swap agreements		681,047			—		—		—		681,047
Total net realized gain (loss)	$	1,198,085		$	—	$	—	$	—	$	1,198,085
Net change in unrealized appreciation (depreciation)4
Options and swaptions purchased	$	(486,866	)	$	—	$	—	$	—	$	(486,866	)
Options and swaptions written		29,408			—		—		—		29,408
Swap agreements		1,360,221			—		—		—		1,360,221
Net change in appreciation (depreciation)	$	902,763		$	—	$	—	$	—	$	902,763

Table footnotes begin on page 337

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Notes to financial statements

At July 31, 2017, the Portfolio 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	$	46,017	$	—	$	—	$	—	$	46,017
Forward foreign currency contracts		—		216,923		—		—		216,923
Options and swaptions purchased		142,020		216,259		—		—		358,279
Swap agreements		50,959		—		—		—		50,959
Total value	$	238,996	$	433,182	$	—	$	—	$	672,178

Table footnotes begin on page 337

Liability derivatives²

	Interest rate risk			Foreign exchange risk			Credit risk			Equity risk		Total
PACE Intermediate Fixed Income Investments
Futures contracts	$	(52,843	)	$	—		$	—		$	—	$	(52,843	)
Forward foreign currency contracts		—			(178,437	)		—			—		(178,437	)
Options and swaptions written		(58,051	)		(156,479	)		—			—		(214,530	)
Swap agreements		(10,966	)		—			(195,646	)		—		(206,612	)
Total value	$	(121,860	)	$	(334,916	)	$	(195,646	)	$	—	$	(652,422	)

Table footnotes begin on page 337

During the year ended July 31, 2017, net realized gains (losses) and net change in unrealized appreciation (depreciation) from derivatives were as follows:

	Interest rate risk			Foreign exchange risk			Credit risk		Equity risk		Total
PACE Intermediate Fixed Income Investments
Net realized gain (loss)3
Futures	$	489,688		$	—		$	—	$	—	$	489,688
Forward foreign currency contracts		—			78,242			—		—		78,242
Options and swaptions purchased		(43,288	)		(228,517	)		—		—		(271,805	)
Options and swaptions written		199,204			240,881			—		—		440,085
Swap agreements		204,763			—			81,369		—		286,132
Total net realized gain (loss)	$	850,367		$	90,606		$	81,369	$	—	$	1,022,342
Net change in unrealized appreciation (depreciation)4
Futures	$	529,169		$	—		$	—	$	—	$	529,169
Forward foreign currency contracts		—			104,609			—		—		104,609
Options and swaptions purchased		(42,394	)		(57,117	)		—		—		(99,511	)
Options and swaptions written		(53,068	)		5,504			—		—		(47,564	)
Swap agreements		306,552			—			45,005		—		351,557
Net change in appreciation (depreciation)	$	740,259		$	52,996		$	45,005	$	—	$	838,260

Table footnotes begin on page 337

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Notes to financial statements

At July 31, 2017, the Portfolio had the following derivatives categorized by underlying risk:

Asset derivatives¹

	Interest rate risk		Foreign exchange risk		Credit risk		Equity risk		Total
PACE Strategic Fixed Income Investments
Futures contracts	$	1,535,876	$	79,638	$	—	$	—	$	1,615,514
Forward foreign currency contracts		—		595,985		—		—		595,985
Options and swaptions purchased		164,697		—		—		—		164,697
Swap agreements		334,182		—		1,587,618		—		1,921,800
Total value	$	2,034,755	$	675,623	$	1,587,618	$	—	$	4,297,996

Table footnotes begin on page 337

Liability derivatives²

	Interest rate risk			Foreign exchange risk			Credit risk			Equity risk		Total
PACE Strategic Fixed Income Investments
Futures contracts	$	(543,908	)	$	(105,800	)	$	—		$	—	$	(649,708	)
Forward foreign currency contracts		—			(967,792	)		—			—		(967,792	)
Options and swaptions written		(76,324	)		(72,463	)		—			—		(148,787	)
Swap agreements		(1,000,517	)		—			(554,179	)		—		(1,554,696	)
Total value	$	(1,620,749	)	$	(1,146,055	)	$	(554,179	)	$	—	$	(3,320,983	)

Table footnotes begin on page 337

During the year ended July 31, 2017, net realized gains (losses) and net change in unrealized appreciation (depreciation) from derivatives were as follows:

	Interest rate risk			Foreign exchange risk			Credit risk			Equity risk		Total
PACE Strategic Fixed Income Investments
Net realized gain (loss)3
Futures	$	(5,636,365	)	$	332,789		$	—		$	—	$	(5,303,576	)
Forward foreign currency contracts		—			(2,937,899	)		—			—		(2,937,899	)
Options and swaptions purchased		(340,343	)		(26,292	)		—			—		(366,635	)
Options and swaptions written		978,177			1,091,321			—			—		2,069,498
Swap agreements		(6,226,532	)		—			2,557,960			—		(3,668,572	)
Total net realized gain (loss)	$	(11,225,063	)	$	(1,540,081	)	$	2,557,960		$	—	$	(10,207,184	)
Net change in unrealized appreciation (depreciation)4
Futures	$	(1,104,084	)	$	(208,141	)	$	—		$	—	$	(1,312,225	)
Forward foreign currency contracts		—			1,139,778			—			—		1,139,778
Options and swaptions purchased		31,942			—			—			—		31,942
Options and swaptions written		5,076			219,641			—			—		224,717
Swap agreements		24,811,132			—			(1,121,128	)		—		23,690,004
Net change in appreciation (depreciation)	$	23,744,066		$	1,151,278		$	(1,121,128	)	$	—	$	23,774,216

Table footnotes begin on page 337

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Notes to financial statements

At July 31, 2017, the Portfolio had the following derivatives categorized by underlying risk:

Asset derivatives¹

	Interest rate risk		Foreign exchange risk		Credit risk		Equity risk		Total
PACE Global Fixed Income Investments
Futures contracts	$	925,459	$	—	$	—	$	—	$	925,459
Forward foreign currency contracts		—		3,362,539		—		—		3,362,539
Total value	$	925,459	$	3,362,539	$	—	$	—	$	4,287,998

Table footnotes begin on page 337

Liability derivatives²

	Interest rate risk			Foreign exchange risk			Credit risk		Equity risk		Total
PACE Global Fixed Income Investments
Futures contracts	$	(619,139	)	$	—		$	—	$	—	$	(619,139	)
Forward foreign currency contracts		—			(3,249,764	)		—		—		(3,249,764	)
Total value	$	(619,139	)	$	(3,249,764	)	$	—	$	—	$	(3,868,903	)

Table footnotes begin on page 337

During the year ended July 31, 2017, net realized gains (losses) and net change in unrealized appreciation (depreciation) from derivatives were as follows:

	Interest rate risk			Foreign exchange risk			Credit risk		Equity risk		Total
PACE Global Fixed Income Investments
Net realized gain (loss)3
Futures	$	3,341,336		$	—		$	—	$	—	$	3,341,336
Forward foreign currency contracts		—			(14,690,539	)		—		—		(14,690,539	)
Total net realized gain (loss)	$	3,341,336		$	(14,690,539	)	$	—	$	—	$	(11,349,203	)
Net change in unrealized appreciation (depreciation)4
Futures	$	(2,067,463	)	$	—		$	—	$	—	$	(2,067,463	)
Forward foreign currency contracts		—			(1,276,777	)		—		—		(1,276,777	)
Net change in appreciation (depreciation)	$	(2,067,463	)	$	(1,276,777	)	$	—	$	—	$	(3,344,240	)

Table footnotes begin on page 337

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Notes to financial statements

At July 31, 2017, the Portfolio had the following derivatives categorized by underlying risk:

Asset derivatives¹

	Interest rate risk		Foreign exchange risk		Credit risk		Equity risk		Total
PACE High Yield Investments
Forward foreign currency contracts	$	—	$	241,528	$	—	$	—	$	241,528

Table footnotes begin on page 337

Liability derivatives²

	Interest rate risk		Foreign exchange risk			Credit risk		Equity risk		Total
PACE High Yield Investments
Forward foreign currency contracts	$	—	$	(3,665,512	)	$	—	$	—	$	(3,665,512	)

Table footnotes begin on page 337

During the year ended July 31, 2017, net realized gains (losses) and net change in unrealized appreciation (depreciation) from derivatives were as follows:

	Interest rate risk		Foreign exchange risk			Credit risk		Equity risk		Total
PACE High Yield Investments
Net realized gain (loss)3
Forward foreign currency contracts	$	—	$	(3,656,666	)	$	—	$	—	$	(3,656,666	)
Net change in unrealized appreciation (depreciation)4
Forward foreign currency contracts	$	—	$	(1,648,667	)	$	—	$	—	$	(1,648,667	)

Table footnotes begin on page 337

During the year ended July 31, 2017, net realized gains (losses) and net change in unrealized appreciation (depreciation) from derivatives were as follows:

	Interest rate risk		Foreign exchange risk		Credit risk		Equity risk		Total
PACE International Equity Investments
Net realized gain (loss)3
Forward foreign currency contracts	$	—	$	125,266	$	—	$	—	$	125,266

Table footnotes begin on page 337

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PACE Select Advisors Trust

Notes to financial statements

During the year ended July 31, 2017, net realized gains (losses) and net change in unrealized appreciation (depreciation) from derivatives were as follows:

	Interest rate risk		Foreign exchange risk		Credit risk		Equity risk		Total
PACE International Emerging Markets Equity Investments
Net realized gain (loss)3
Forward foreign currency contracts	$	—	$	29,834	$	—	$	—	$	29,834

Table footnotes begin on page 337

At July 31, 2017, the Portfolio had the following derivatives categorized by underlying risk:

Asset derivatives¹

	Interest rate risk		Foreign exchange risk		Credit risk		Equity risk		Total
PACE Alternative Strategies Investments
Futures contracts	$	482,709	$	—	$	—	$	1,240,187	$	1,722,896
Forward foreign currency contracts		—		21,660,613		—		—		21,660,613
Options and swaptions purchased		2,463,555		4,638,466		—		2,920,591		10,022,612
Swap agreements		881,139		—		2,718,546		2,434,618		6,034,303
Total value	$	3,827,403	$	26,299,079	$	2,718,546	$	6,595,396	$	39,440,424

Table footnotes begin on page 337

Liability derivatives²

	Interest rate risk			Foreign exchange risk			Credit risk			Equity risk			Total
PACE Alternative Strategies Investments
Futures contracts	$	(989,434	)	$	—		$	—		$	(1,394,461	)	$	(2,383,895	)
Forward foreign currency contracts		—			(25,081,580	)		—			—			(25,081,580	)
Options and swaptions written		—			—			—			(224,805	)		(224,805	)
Swap agreements		(1,264,870	)		—			(301,523	)		(3,933,803	)		(5,500,196	)
Total value	$	(2,254,304	)	$	(25,081,580	)	$	(301,523	)	$	(5,553,069	)	$	(33,190,476	)

Table footnotes begin on page 337

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Notes to financial statements

During the year ended July 31, 2017, net realized gains (losses) and net change in unrealized appreciation (depreciation) from derivatives were as follows:

	Interest rate risk			Foreign exchange risk			Credit risk			Equity risk			Total
PACE Alternative Strategies Investments
Net realized gain (loss)3
Futures	$	(1,850,250	)	$	—		$	—		$	4,318,459		$	2,468,209
Forward foreign currency contracts		—			3,491,542			—			—			3,491,542
Options and swaptions purchased		—			(934,508	)		—			(940,606	)		(1,875,114	)
Options and swaptions written		—			786,998			—			222,314			1,009,312
Swap agreements		(7,810,352	)		—			3,669,117			(1,577,404	)		(5,718,639	)
Total net realized gain (loss)	$	(9,660,602	)	$	3,344,032		$	3,669,117		$	2,022,763		$	(624,690	)
Net change in unrealized appreciation (depreciation)4
Futures	$	(2,225,278	)	$	—		$	—		$	(80,381	)	$	(2,305,659	)
Forward foreign currency contracts		—			(5,368,453	)		—			—			(5,368,453	)
Options and swaptions purchased		740,140			90,187			—			(1,840,402	)		(1,010,075	)
Options and swaptions written		—			(256,532	)		—			797,497			540,965
Swap agreements		5,677,655			—			(676,616	)		(1,254,667	)		3,746,372
Net change in appreciation (depreciation)	$	4,192,517		$	(5,534,798	)	$	(676,616	)	$	(2,377,953	)	$	(4,396,850	)

¹  In the Statement of assets and liabilities, options and swaptions purchased are shown within investments, at value, swap agreements (except centrally cleared swap agreements) are shown within swap agreements, at value, while forward foreign currency contracts are shown within unrealized appreciation on forward foreign currency contracts. Futures contracts are reported using cumulative appreciation of futures contracts and centrally cleared swap agreements are reported at value, as reported in the futures contracts and centrally cleared swap agreements tables at the end of the Portfolio of investments, respectively, but only the variation margin to be received, if any, is reported within the Statement of assets and liabilities.

²  In the Statement of assets and liabilities, options and swaptions written are shown within options and swaptions written, at value, swap agreements (except centrally cleared swap agreements) are shown within swap agreements, at value, while forward foreign currency contracts are shown within unrealized depreciation on forward foreign currency contracts. Futures contracts are reported using cumulative depreciation of futures contracts and centrally cleared swap agreements are reported at value, as reported in the futures contracts and centrally cleared swap agreements tables at the end of the Portfolio of investments, respectively, but only the variation margin to be paid, if any, is reported within the Statement of assets and liabilities.

³  The net realized gain (loss) is shown in the Statement of operations in net realized gains (losses) from futures, options and swaptions written, swap agreements and forward foreign currency contracts, unless otherwise noted. The net realized gain (loss) of options and swaptions purchased is shown in the Statement of operations in net realized gains (losses) from investments.

⁴  The net change in unrealized appreciation/depreciation is shown in the Statement of operations in net change in unrealized appreciation/depreciation of futures, options and swaptions written, swap agreements and forward foreign currency contracts, unless otherwise noted. The net change in unrealized appreciation/depreciation of options and swaptions purchased is shown in the Statement of operations in net change in unrealized appreciation/depreciation of investments.

Offsetting of certain derivatives—The Portfolios typically enter into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Portfolios typically may offset with the counterparty certain derivative financial instrument's payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. The Statement of assets and liabilities is presented gross of any netting.

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Notes to financial statements

At July 31, 2017, derivative assets and liabilities (by type) on a gross basis and derivatives subject to an enforceable master netting arrangement ("MNA") or similar were as follows:

PACE Mortgage-Backed Securities Fixed Income Investments

Derivative Financial Instruments:	Assets			Liabilities
Options and swaptions purchased	$	378,278		$	—
Options and swaptions written		—			(53,491	)
Swap agreements1		339,356			(421,214	)
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities		717,634			(474,705	)
Derivatives not subject to MNA or similar agreements		(339,352	)		413,535
Total gross amount of assets and liabilities subject to MNA or similar agreements	$	378,282		$	(61,170	)

The following tables present the Portfolio's derivative assets and liabilities by counterparty net of amounts available for offset under a MNA and net of the related collateral received/pledged by the Portfolio as of the period end.

PACE Mortgage-Backed Securities Fixed Income Investments

Counterparty	Gross Amount of Assets			Financial Instruments and Derivatives Available for Offset			Collateral Received2			Net Amount of Assets
CITI	$	347,439		$	(42,199	)	$	(305,240	)	$	—
GS		26,662			—			—			26,662
JPMCB		2,586			(2,586	)		—			—
MSCI		1,595			—			(1,595	)		—
Total	$	378,282		$	(44,785	)	$	(306,835	)	$	26,662
Counterparty	Gross Amount of Liabilities			Financial Instruments and Derivatives Available for Offset			Collateral Pledged2			Net Amount of Liabilities
CITI	$	(42,199	)	$	42,199		$	—		$	—
DB		(7,671	)		—			—			(7,671	)
JPMCB		(11,300	)		2,586			—			(8,714	)
Total	$	(61,170	)	$	44,785		$	—		$	(16,385	)

Table footnotes begin on page 343

338

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Notes to financial statements

At July 31, 2017, derivative assets and liabilities (by type) on a gross basis and derivatives subject to an enforceable master netting arrangement ("MNA") or similar were as follows:

PACE Intermediate Fixed Income Investments

Derivative Financial Instruments:	Assets			Liabilities
Forward foreign currency contracts	$	216,923		$	(178,437	)
Futures contracts 1		46,017			(52,843	)
Options and swaptions purchased		358,279			—
Options and swaptions written		—			(214,530	)
Swap agreements1		50,959			(206,612	)
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities		672,178			(652,422	)
Derivatives not subject to MNA or similar agreements		(96,976	)		250,907
Total gross amount of assets and liabilities subject to MNA or similar agreements	$	575,202		$	(401,515	)

The following tables present the Portfolio's derivative assets and liabilities by counterparty net of amounts available for offset under a MNA and net of the related collateral received/pledged by the Portfolio as of the period end.

PACE Intermediate Fixed Income Investments

Counterparty	Gross Amount of Assets			Financial Instruments and Derivatives Available for Offset			Collateral Received2		Net Amount of Assets
BB	$	109,656		$	(51,488	)	$	—	$	58,168
BNP		23,031			(23,031	)		—		—
BOA		6,835	��		(6,835	)		—		—
CITI		63,062			(10,474	)		—		52,588
CSI		20,696			(20,696	)		—		—
GS		217,512			(30,472	)		—		187,040
GSI		2,941			(2,941	)		—		—
GLAS		963			—			—		963
HSBC		396			—			—		396
JPMCB		125,787			(116,734	)		—		9,053
NTC		2,557			—			—		2,557
RBC		1,766			(1,766	)		—		—
Total	$	575,202		$	(264,437	)	$	—	$	310,765

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Counterparty	Gross Amount of Liabilities			Financial Instruments and Derivatives Available for Offset		Collateral Pledged2		Net Amount of Liabilities
BB	$	(51,488	)	$	51,488	$	—	$	—
BNP		(31,339	)		23,031		—		(8,308	)
BOA		(34,194	)		6,835		—		(27,359	)
CITI		(10,474	)		10,474		—		—
CSI		(89,004	)		20,696		—		(68,308	)
GS		(30,472	)		30,472		—		—
GSI		(31,408	)		2,941		—		(28,467	)
JPMCB		(116,734	)		116,734		—		—
RBC		(6,402	)		1,766		—		(4,636	)
Total	$	(401,515	)	$	264,437	$	—	$	(137,078	)

Table footnotes begin on page 343

At July 31, 2017, derivative assets and liabilities (by type) on a gross basis and derivatives subject to an enforceable master netting arrangement ("MNA") or similar were as follows:

PACE Strategic Fixed Income Investments

Derivative Financial Instruments:	Assets			Liabilities
Forward foreign currency contracts	$	595,985		$	(967,792	)
Futures contracts1		1,615,514			(649,708	)
Options and swaptions purchased		164,697			—
Options and swaptions written		—			(148,787	)
Swap agreements1		1,921,800			(1,554,696	)
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities		4,297,996			(3,320,983	)
Derivatives not subject to MNA or similar agreements		(3,537,314	)		2,137,210
Total gross amount of assets and liabilities subject to MNA or similar agreements	$	760,682		$	(1,183,773	)

340

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The following tables present the Portfolio's derivative assets and liabilities by counterparty net of amounts available for offset under a MNA and net of the related collateral received/pledged by the Portfolio as of the period end.

PACE Strategic Fixed Income Investments

Counterparty	Gross Amount of Assets			Financial Instruments and Derivatives Available for Offset			Collateral Received2			Net Amount of Assets
BB	$	10,253		$	(10,253	)	$	—		$	—
BNP		207,720			(207,720	)		—			—
BOA		16,053			(16,053	)		—			—
CITI		42,507			(33,432	)		—			9,075
CSI		30,539			(30,539	)		—			—
DB		1,864			(1,864	)		—			—
GS		20,116			—			—			20,116
GSB		34,153			(16,184	)		—			17,969
GSI		51,148			(51,148	)		—			—
HSBC		15,506			(15,506	)		—			—
JPMCB		220,395			(220,395	)		—			—
MSCI		110,428			(50,140	)		(29,000	)		31,288
Total	$	760,682		$	(653,234	)	$	(29,000	)	$	78,448
Counterparty	Gross Amount of Liabilities			Financial Instruments and Derivatives Available for Offset			Collateral Pledged2			Net Amount of Liabilities
BB	$	(12,035	)	$	10,253		$	—		$	(1,782	)
BNP		(286,851	)		207,720			—			(79,131	)
BOA		(37,501	)		16,053			—			(21,448	)
CITI		(33,432	)		33,432			—			—
CSI		(132,338	)		30,539			—			(101,799	)
DB		(55,166	)		1,864			—			(53,302	)
GSB		(16,184	)		16,184			—			—
GSI		(71,043	)		51,148			—			(19,895	)
HSBC		(210,841	)		15,506			—			(195,335	)
JPMCB		(278,242	)		220,395			—			(57,847	)
MSCI		(50,140	)		50,140			—			—
Total	$	(1,183,773	)	$	653,234		$	—		$	(530,539	)

Table footnotes begin on page 343

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At July 31, 2017, derivative assets and liabilities (by type) on a gross basis and derivatives subject to an enforceable master netting arrangement ("MNA") or similar were as follows:

PACE Global Fixed Income Investments

Derivative Financial Instruments:	Assets			Liabilities
Forward foreign currency contracts	$	3,362,539		$	(3,249,764	)
Futures contracts1		925,459			(619,139	)
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities		4,287,998			(3,868,903	)
Derivatives not subject to MNA or similar agreements		(4,287,998	)		3,868,903
Total gross amount of assets and liabilities subject to MNA or similar agreements	$	—		$	—

Table footnotes begin on page 343

At July 31, 2017, derivative assets and liabilities (by type) on a gross basis and derivatives subject to an enforceable master netting arrangement ("MNA") or similar were as follows:

PACE High Yield Investments

Derivative Financial Instruments:	Assets			Liabilities
Forward foreign currency contracts	$	241,528		$	(3,665,512	)
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities		241,528			(3,665,512	)
Derivatives not subject to MNA or similar agreements		(241,528	)		3,665,512
Total gross amount of assets and liabilities subject to MNA or similar agreements	$	—		$	—

Table footnotes begin on page 343

At July 31, 2017, derivative assets and liabilities (by type) on a gross basis and derivatives subject to an enforceable master netting arrangement ("MNA") or similar were as follows:

PACE Alternative Strategies Investments

Derivative Financial Instruments:	Assets			Liabilities
Forward foreign currency contracts	$	21,660,613		$	(25,081,580	)
Futures contracts 1		1,722,896			(2,383,895	)
Options and swaptions purchased		10,022,612			—
Options and swaptions written		—			(224,805	)
Swap agreements 1		6,034,303			(5,500,196	)
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities		39,440,424			(33,190,476	)
Derivatives not subject to MNA or similar agreements		(5,322,581	)		3,950,288
Total gross amount of assets and liabilities subject to MNA or similar agreements	$	34,117,843		$	(29,240,188	)

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The following tables present the Portfolio's derivative assets and liabilities by counterparty net of amounts available for offset under a MNA and net of the related collateral received/pledged by the Portfolio as of the period end.

PACE Alternative Strategies Investments

Counterparty	Gross Amount of Assets			Financial Instruments and Derivatives Available for Offset			Collateral Received2		Net Amount of Assets
ANZ	$	275,352		$	(65,792	)	$	—	$	209,560
BB		5,439,378			(3,939,138	)		—		1,500,240
BNP		3,330,531			(948,806	)		—		2,381,725
BOA		131,467			(131,467	)		—		—
CITI		10,227,424			(6,482,160	)		—		3,745,264
DB		140,126			(140,126	)		—		—
GS		1,882,439			(1,882,439	)		—		—
GSI		1,859,995			(1,859,995	)		—		—
JPMCB		1,167,605			(1,052,112	)		—		115,493
MSCI		8,220,937			(8,220,937	)		—		—
RBS		76,966			(76,966	)		—		—
SG		1,362,628			(1,362,628	)		—		—
SGST		2,995			(1,498	)		—		1,497
Total	$	34,117,843		$	(26,164,064	)	$	—	$	7,953,779
Counterparty	Gross Amount of Liabilities			Financial Instruments and Derivatives Available for Offset			Collateral Pledged2		Net Amount of Liabilities
ANZ	$	(65,792	)	$	65,792		$	—	$	—
BB		(3,939,138	)		3,939,138			—		—
BNP		(948,806	)		948,806			—		—
BOA		(373,899	)		131,467			40,000		(202,432	)
CITI		(6,482,160	)		6,482,160			—		—
DB		(703,905	)		140,126			—		(563,779	)
GS		(2,185,800	)		1,882,439			—		(303,361	)
GSI		(1,976,945	)		1,859,995			116,950		—
JPMCB		(1,052,112	)		1,052,112			—		—
MSCI		(9,498,131	)		8,220,937			—		(1,277,194	)
RBS		(647,461	)		76,966			—		(570,495	)
SG		(1,364,541	)		1,362,628			—		(1,913	)
SGST		(1,498	)		1,498			—		—
Total	$	(29,240,188	)	$	26,164,064		$	156,950	$	(2,919,174	)

¹  Includes cumulative appreciation/depreciation of futures contracts and centrally cleared swaps, at value as reported in the futures contracts and centrally cleared swaps tables in the Portfolio of investments, but only the unpaid variation margin is reported within the Statement of assets and liabilities within variation margin on futures contracts and centrally cleared swap agreements, respectively.

²  In some instances, the actual collateral received and/or pledged may be more than the amount shown and may be comprised of cash collateral, non-cash collateral or a combination of both.

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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 AM. In accordance with the Management Contract, each Portfolio paid UBS AM investment management and administration fees, which were accrued daily and paid monthly, in accordance with the following schedule as of July 31, 2017:

Portfolio	Annual rate as a percentage of each Portfolio's average daily net assets
PACE Government Money Market Investments	0.350%
PACE Mortgage-Backed 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 up to $1.25 billion 0.500% above $1.25 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 Global 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
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

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Portfolio	Annual rate as a percentage of each Portfolio's average daily net assets
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 Investments	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

Under separate Subadvisory Agreements, with the exception of PACE Government Money Market Investments, UBS AM (not the Portfolios) pays the following investment subadvisors a fee from the investment management and administration fees which UBS AM receives, which is accrued daily and paid monthly:

Portfolio	Investment subadvisor
PACE Mortgage-Backed Securities Fixed Income Investments	Pacific Investment Management Company LLC
PACE Intermediate Fixed Income Investments	BlackRock Financial Management, Inc.
PACE Strategic Fixed Income Investments	Pacific Investment Management Company LLC Neuberger Berman Investment Advisers LLC
PACE Municipal Fixed Income Investments	Standish Mellon Asset Management Company LLC
PACE Global Fixed Income Investments	J.P. Morgan Investment Management Inc.
PACE High Yield Investments	Nomura Corporate Research and Asset Management Inc.
PACE Large Co Value Equity Investments	Los Angeles Capital Management and Equity Research, Inc. River Road Asset Management, LLC Pzena Investment Management, LLC Boston Partners Global Investors Inc.
PACE Large Co Growth Equity Investments	Jackson Square Partners, LLC J.P. Morgan Investment Management Inc. Mar Vista Investment Partners, LLC
PACE Small/Medium Co Value Equity Investments	Kayne Anderson Rudnick Investment Management, LLC Sapience Investments, LLC Systematic Financial Management, L.P. Huber Capital Management LLC
PACE Small/Medium Co Growth Equity Investments	LMCG Investments, LLC Riverbridge Partners, LLC Timpani Capital Management LLC
PACE International Equity Investments	Robert W. Baird & Co. Incorporated Los Angeles Capital Management and Equity Research, Inc. Mondrian Investment Partners Ltd.

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Portfolio	Investment subadvisor
PACE International Emerging Markets Equity Investments	LMCG Investments, LLC Mondrian Investment Partners Ltd. William Blair & Company L.L.C
PACE Global Real Estate Securities Investments	Brookfield Investment Management Inc.
PACE Alternative Strategies Investments1	Analytic Investors, LLC AQR Capital Management LLC Aviva Investors America LLC First Quadrant L.P. PCJ Investment Counsel Ltd. Sirios Capital Management, L.P. Standard Life Investments (Corporate Funds) Limited Principal Global Investors, LLC

¹  UBS Asset Management (Americas) Inc. has the authority to allocate a portion of the Portfolio's assets to unaffiliated actively- and passively-managed pooled investment vehicles and index futures.

At July 31, 2017, certain Portfolios owe or are owed by UBS AM for investment management and administration fees, net of fee waivers/expense reimbursements and/or recoupments as follows:

Portfolio	Amounts due to UBS AM
PACE Government Money Market Investments	$	6,143
PACE Mortgage-Backed Securities Fixed Income Investments		182,630
PACE Intermediate Fixed Income Investments		142,701
PACE Strategic Fixed Income Investments		369,096
PACE Municipal Fixed Income Investments		150,125
PACE Global Fixed Income Investments		225,558
PACE High Yield Investments		203,593
PACE Large Co Value Equity Investments		832,224
PACE Large Co Growth Equity Investments		864,551
PACE Small/Medium Co Value Equity Investments		358,193
PACE Small/Medium Co Growth Equity Investments		320,912
PACE International Equity Investments		820,522
PACE International Emerging Markets Equity Investments		425,437
PACE Global Real Estate Securities Investments		58,718
PACE Alternative Strategies Investments		778,933

UBS AM has entered into a written fee waiver agreement with each of PACE Mortgage-Backed Securities Fixed Income Investments and PACE Global Fixed Income Investments, under which UBS AM is contractually obligated to waive its management fees to the extent necessary to reflect the lower subadvisory fees paid by UBS AM to each of these Portfolio's subadvisors: Pacific Investment Management Company LLC and Rogge Global Partners plc. As of January 6, 2017, Rogge Global Partners ltd no longer served as a subadvisor for the PACE Global Fixed Income Investments Portfolio and its fee waiver was terminated.

UBS AM has agreed to lower its management fee so that the annual fee rate for management services (but not the administrative services) for PACE Global Fixed Income Investments don't exceed the following rate: $0 to $500 million—0.600%; in excess of $500 million up to $1 billion—0.575%; and over $1 billion—0.550%. UBS AM has further waived its fees in the following amounts for PACE Municipal Fixed Income Investments, PACE Global Fixed Income Investments and PACE High Yield Investments: 0.050%, 0.100% and 0.100%, respectively, through November 30, 2017. These management fee waivers will not be subject to future recoupment.

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For the year ended July 31, 2017, UBS AM was contractually obligated to waive as follows:

	Management fees waived
PACE Mortgage-Backed Securities Fixed Income Investments	$	216,500
PACE Municipal Fixed Income Investments		195,180
PACE Global Fixed Income Investments		938,080
PACE High Yield Investments		416,074

Additionally, PACE Alternative Strategies Investments and UBS AM have entered into a written fee waiver agreement pursuant to which UBS AM is contractually obligated to waive its management fees to the extent necessary to offset the cost savings to UBS AM for allocating a portion of the fund's assets to other unaffiliated pooled investment vehicles and index futures. The fee waiver agreement may be terminated by the Portfolio's Board at any time and also will terminated automatically upon the expiration or termination of the Portfolio's advisory contract with UBS AM. For the year ended July 31, 2017, UBS AM was contractually obligated to waive $547,671 in investment management and administration fees. This management fee waiver will not be subject to future recoupment.

With respect to the following Portfolios, UBS AM may voluntarily waive its management fees to the extent necessary to reflect lower subadvisory fees paid. This management fee waiver will not be subject to future recoupment. Once started, there is no guarantee that UBS AM would continue to voluntarily waive a portion of its management fees. For the year ended July 31, 2017, UBS AM voluntarily waived fees of:

	Management fees waived
PACE Intermediate Fixed Income Investments	$	49,381
PACE Municipal Fixed Income Investments		75,180
PACE High Yield Investments		312,056
PACE Large Co Value Equity Investments		167,285
PACE Large Co Growth Equity Investments		94,087
PACE Small/Medium Co Value Equity Investments		110,252
PACE Small/Medium Co Growth Equity Investments		209,687
PACE International Equity Investments		304,776
PACE Alternative Strategies Investments		103,481

Additionally, with respect to PACE Government Money Market Investments, UBS 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 AM would continue to voluntarily waive an additional portion of its fees and/or reimburse expenses. This management fee waiver will not be subject to future recoupment. For the year ended July 31, 2017, UBS AM voluntarily waived and/or reimbursed expenses of $35,928 for PACE Government Money Market Investments for that purpose.

UBS 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, relating to short sales, and expenses attributable to investment in other companies, interest, taxes, brokerage commissions and extraordinary expenses) through November 30, 2017 at a level not to exceed the amounts in the table below.

Each Portfolio will repay UBS AM for any such waived fees/reimbursed expenses during a three-year period following July 31, 2014, 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, 2017, UBS AM had the following contractual

347

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Notes to financial statements

waivers/expense reimbursements, and recoupments. The fee waivers/expense reimbursements, portions of which are subject to repayment by the Portfolios through July 31, 2020, and recoupments for the year ended July 31, 2017, were as follows:

Portfolio	Class A expense cap			Class C expense cap			Class Y expense cap			Class P expense cap			Fee waivers/ expense reimbursements		Recoupments
PACE Government Money Market Investments		N/A			N/A			N/A			0.60	%	$	670,937	$	—
PACE Mortgage-Backed Securities Fixed Income Investments		0.97	%		1.47	%		0.72	%		0.72			718,268		—
PACE Intermediate Fixed Income Investments		0.93			1.43			0.68			0.68			507,489		—
PACE Strategic Fixed Income Investments		0.96			1.46			0.71			0.71			829,653		—
PACE Municipal Fixed Income Investments		0.90			1.40			0.65			0.65			—		—
PACE Global Fixed Income Investments		1.25			1.75			1.00			1.00			—		—
PACE High Yield Investments		1.28			1.78			1.03			1.03			—		—
PACE Large Co Value Equity Investments		1.27			2.02			1.02			1.02			—		—
PACE Large Co Growth Equity Investments		1.30			2.05			1.05			1.05			—		—
PACE Small/Medium Co Value Equity Investments		1.41			2.16			1.16			1.16			—		—
PACE Small/Medium Co Growth Equity Investments		1.38			2.13			1.13			1.13			144		—
PACE International Equity Investments		1.55			2.30			1.30			1.30			—		—
PACE International Emerging Markets Equity Investments		1.75			2.50			1.50			1.50			361,044		—
PACE Global Real Estate Securities Investments		1.45			2.20			1.20			1.20			524,038		—
PACE Alternative Strategies Investments		1.88			2.63			1.63			1.63			—		—

At July 31, 2017, the following Portfolios had remaining fee waivers/expense reimbursements subject to repayment to UBS AM and respective dates of expiration as follows:

Portfolio	Fee waivers/ expense reimbursements subject to repayment		Expires July 31, 2018		Expires July 31, 2019		Expires July 31, 2020
PACE Government Money Market Investments	$	2,063,695	$	685,972	$	706,786	$	670,937
PACE Mortgage-Backed Securities Fixed Income Investments—Class A		91,022		40,449		26,932		23,641
PACE Mortgage-Backed Securities Fixed Income Investments—Class C		30,360		12,532		10,225		7,603
PACE Mortgage-Backed Securities Fixed Income Investments—Class Y		222,275		57,441		59,611		105,223
PACE Mortgage-Backed Securities Fixed Income Investments—Class P		1,901,412		702,169		617,442		581,801
PACE Intermediate Fixed Income Investments—Class A		52,826		24,173		16,399		12,254
PACE Intermediate Fixed Income Investments—Class C		4,839		2,177		1,604		1,058
PACE Intermediate Fixed Income Investments—Class Y		2,943		997		1,065		881
PACE Intermediate Fixed Income Investments—Class P		1,685,043		636,278		555,469		493,296
PACE Strategic Fixed Income Investments—Class A		8,002		—		—		8,002
PACE Strategic Fixed Income Investments—Class C		5,921		—		—		5,921
PACE Strategic Fixed Income Investments—Class Y		4,185		—		—		4,185
PACE Strategic Fixed Income Investments—Class P		811,545		—		—		811,545
PACE Small/Medium Co Growth Equity Investments—Class Y		144		—		—		144
PACE International Emerging Markets Equity Investments—Class A		1,829		—		—		1,829
PACE International Emerging Markets Equity Investments—Class C		610		—		—		610
PACE International Emerging Markets Equity Investments—Class Y		2,637		—		—		2,637
PACE International Emerging Markets Equity Investments—Class P		355,968		—		—		355,968
PACE Global Real Estate Securities Investments—Class A		4,400		3,353		682		365
PACE Global Real Estate Securities Investments—Class C		364		142		182		40
PACE Global Real Estate Securities Investments—Class Y		845		210		556		79
PACE Global Real Estate Securities Investments—Class P		1,603,023		533,509		545,960		523,554

348

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2017, the Portfolios listed below paid broker commissions to affiliates of the investment manager as detailed in the below table. These broker commissions are reflected in the Statement of assets and liabilities within cost of investments, and the Statement of operations within net realized gains (losses) from, and/or net change in unrealized appreciation/depreciation of investments and/or futures.

Affiliated broker	PACE Large Co Value Equity Investments		PACE Small/ Medium Co Value Equity Investments		PACE International Equity Investments		PACE International Emerging Markets Equity Investments		PACE Alternative Strategies Investments
UBS AG	$	—	$	—	$	2,624	$	3,201	$	310
UBS Securities Asia Ltd.		—		—		4,055		2,016		—
UBS Securities Canada Inc.		—		937		—		—		—
UBS Securities LLC		571		4,307		—		3,254		—
UBS Securities Pte Ltd.		—		—		—		2,731		—
UBS Limited		—		—		2,931		233		907

Service and distribution plans

UBS AM (US) is the principal underwriter of each Portfolio's shares. The Portfolios (with the exception of PACE Government Money Market Investments, which only offers Class P shares) have adopted service and/or distribution plans (the "Plans") pursuant to Rule 12b-1 under the 1940 Act for Class A and Class C shares. The Plans govern payments made for the expenses incurred in the service and/or distribution of Class A and Class C shares. Annual fees under the Plans as a percentage of the average daily net assets of each representative class of each of the Portfolios are as follows:

	Class A			Class C
Portfolio	Service fees			Service fees			Distribution fees
PACE Mortgage-Backed Securities Fixed Income Investments		0.25	%		0.25	%		0.50	%
PACE Intermediate Fixed Income Investments		0.25			0.25			0.50
PACE Strategic Fixed Income Investments		0.25			0.25			0.50
PACE Municipal Fixed Income Investments		0.25			0.25			0.50
PACE Global Fixed Income Investments		0.25			0.25			0.50
PACE High Yield Investments		0.25			0.25			0.50
PACE Large Co Value Equity Investments		0.25			0.25			0.75
PACE Large Co Growth Equity Investments		0.25			0.25			0.75
PACE Small/Medium Co Value Equity Investments		0.25			0.25			0.75
PACE Small/Medium Co Growth Equity Investments		0.25			0.25			0.75
PACE International Equity Investments		0.25			0.25			0.75
PACE International Emerging Markets Equity Investments		0.25			0.25			0.75
PACE Global Real Estate Securities Investments		0.25			0.25			0.75
PACE Alternative Strategies Investments		0.25			0.25			0.75

UBS AM (US) also receives the proceeds of the initial sales charges paid upon purchase of Class A shares and the contingent deferred sales charges paid by shareholders upon certain redemptions of Class A and Class C shares.

349

PACE Select Advisors Trust

Notes to financial statements

At July 31, 2017, certain Portfolios owed UBS AM (US) service and distribution fees, and for the year ended July 31, 2017, certain Portfolios were informed by UBS AM (US) that it had earned sales charges as follows:

Portfolio	Service and distribution fees owed		Sales charges earned by distributor
PACE Mortgage-Backed Securities Fixed Income Investments—Class A	$	7,698	$	565
PACE Mortgage-Backed Securities Fixed Income Investments—Class C		6,951		—
PACE Intermediate Fixed Income Investments—Class A		3,593		4,812
PACE Intermediate Fixed Income Investments—Class C		774		—
PACE Strategic Fixed Income Investments—Class A		2,879		604
PACE Strategic Fixed Income Investments—Class C		5,233		97
PACE Municipal Fixed Income Investments—Class A		10,051		2,878
PACE Municipal Fixed Income Investments—Class C		5,701		—
PACE Global Fixed Income Investments—Class A		8,074		6,783
PACE Global Fixed Income Investments—Class C		1,652		—
PACE High Yield Investments—Class A		908		2,303
PACE High Yield Investments—Class C		1,786		374
PACE Large Co Value Equity Investments—Class A		24,910		9,725
PACE Large Co Value Equity Investments—Class C		10,345		1
PACE Large Co Growth Equity Investments—Class A		9,477		12,121
PACE Large Co Growth Equity Investments—Class C		2,420		—
PACE Small/Medium Co Value Equity Investments—Class A		3,794		932
PACE Small/Medium Co Value Equity Investments—Class C		3,615		—
PACE Small/Medium Co Growth Equity Investments—Class A		4,874		509
PACE Small/Medium Co Growth Equity Investments—Class C		2,554		—
PACE International Equity Investments—Class A		6,503		5,394
PACE International Equity Investments—Class C		1,707		—
PACE International Emerging Markets Equity Investments—Class A		858		22
PACE International Emerging Markets Equity Investments—Class C		1,130		2
PACE Global Real Estate Securities Investments—Class A		97		2,435
PACE Global Real Estate Securities Investments—Class C		211		—
PACE Alternative Strategies Investments—Class A		1,890		9,230
PACE Alternative Strategies Investments—Class C		8,167		307

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 is compensated for these services by BNY Mellon, not the Portfolios.

Effective July 1, 2013, UBS Financial Services Inc. voluntarily agreed to waive a portion of the fee that it would otherwise have received from BNY Mellon with respect to PACE Government Money Market Investments so that BNY Mellon would correspondingly reduce the fees it would have charged to that Portfolio. Given that UBS AM has voluntarily undertaken to reduce its fees and/or reimburse expenses to keep the Portfolio's yield at or above a certain level, and that such amount exceeds the reduction in BNY Mellon's fees, the net effect of BNY Mellon's pass through of the waiver by UBS Financial Services Inc. is to partially reduce the amount that UBS AM would have otherwise voluntarily waived/reimbursed. For the year ended July 31, 2017, the amount of the reduction in transfer agency and related services fees charged by BNY Mellon to the Portfolio was $110,744 which reflected an equal amount of compensation that was voluntarily waived by UBS Financial Services Inc. Voluntary fee waiver/expense reimbursement arrangements may end at any time.

350

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2017, UBS Financial Services Inc. received from BNY Mellon, not the Portfolios, total delegated services fees as follows:

Portfolio	Delegated services fees earned
PACE Government Money Market Investments	$	286,598
PACE Mortgage-Backed Securities Fixed Income Investments		405,035
PACE Intermediate Fixed Income Investments		360,232
PACE Strategic Fixed Income Investments		494,668
PACE Municipal Fixed Income Investments		77,789
PACE Global Fixed Income Investments		464,876
PACE High Yield Investments		380,761
PACE Large Co Value Equity Investments		562,529
PACE Large Co Growth Equity Investments		543,062
PACE Small/Medium Co Value Equity Investments		527,141
PACE Small/Medium Co Growth Equity Investments		528,165
PACE International Equity Investments		524,367
PACE International Emerging Markets Equity Investments		483,364
PACE Global Real Estate Securities Investments		377,926
PACE Alternative Strategies Investments		300,546

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 and irrevocable letters of credit in an amount at least equal to 102% of the market value of the securities loaned with respect to domestic securities and 105% of the market value of the securities loaned with respect to foreign securities, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly.

Each 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 and irrevocable letters of credit held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. Cash collateral received is invested in State Street Navigator Securities Lending Government Money Market Portfolio, which is included in each Portfolio's Portfolio of investments. State Street Bank and Trust Company serves as the Portfolios' lending agent.

In addition, PACE Large Co Value Equity Investments and PACE International Equity Investments participate in State Street's enhanced custody program. Through this program, State Street is capable of facilitating the Portfolios' short selling activity at a lower cost. A portion of the cash collateral received in connection with the Portfolios' securities lending activity is pledged back to State Street for the financing of short sales. This amount is shown as cash collateral on investments sold short in the Statement of assets and liabilities.

351

PACE Select Advisors Trust

Notes to financial statements

At July 31, 2017, the following Portfolios had securities on loan at value, cash collateral and non-cash collateral as follows:

Portfolio	Value of securities on loan		Cash collateral		Non-cash collateral*		Total collateral		Security types held as non-cash collateral
PACE Intermediate Fixed Income Investments	$	4,041,437	$	4,124,355	$	—	$	4,124,355
PACE Strategic Fixed Income Investments		3,302,989		3,370,668		—		3,370,668
PACE Global Fixed Income Investments		1,557,832		1,588,508		—		1,588,508
PACE High Yield Investments		38,834,615		39,105,815		595,180		39,700,995	US Treasury Notes and US Treasury Bills
PACE Large Co Value Equity Investments**		34,094,925		15,222,949		19,743,737		34,966,686	US Treasury Notes and US Treasury Bills
PACE Large Co Growth Equity Investments		31,932,517		—		32,676,500		32,676,500	US Treasury Notes and US Treasury Bills
PACE Small/Medium Co Value Equity Investments		57,020,149		14,098,351		44,490,937		58,589,288	US Treasury Notes and US Treasury Bills
PACE Small/Medium Co Growth Equity Investments		134,064,735		24,788,415		113,241,638		138,030,053	US Treasury Notes and US Treasury Bills
PACE International Equity Investments**		44,966,123		23,924,399		23,172,739		47,097,138	US Treasury Notes and US Treasury Bills
PACE International Emerging Markets Equity Investments		5,822,292		3,980,781		2,230,781		6,211,562	US Treasury Notes and US Treasury Bills
PACE Global Real Estate Securities Investments		6,699,186		2,478,451		4,409,766		6,888,217	US Treasury Notes and US Treasury Bills

*  These securities are held for the benefit of the Portfolio's custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of assets and liabilities.

**  This Portfolio participates in the enhanced custody program which permits self-borrow transactions that does not require any collateral for the securities on loan under those transactions.

The table below represents the disaggregation at July 31, 2017 of the gross amount of recognized liabilities for securities lending transactions. As the securities loaned are subject to termination by the Portfolios or the borrower at any time, the remaining contractual maturities of the transactions presented below are considered to be overnight and continuous.

	Type of securities loaned				Total gross amount of recognized liabilities for
Portfolio	Equity securities		Corporate bonds		securities lending transactions
PACE Intermediate Fixed Income Investments	$	—	$	4,124,355	$	4,124,355
PACE Strategic Fixed Income Investments		—		3,370,668		3,370,668
PACE Global Fixed Income Investments		—		1,588,508		1,588,508
PACE High Yield Investments		63,315		39,637,680		39,700,995
PACE Large Co Value Equity Investments		34,966,686		—		34,966,686
PACE Large Co Growth Equity Investments		32,676,500		—		32,676,500
PACE Small/Medium Co Value Equity Investments		58,589,288		—		58,589,288
PACE Small/Medium Co Growth Equity Investments		138,030,053		—		138,030,053
PACE International Equity Investments		47,097,138		—		47,097,138
PACE International Emerging Markets Equity Investments		6,211,562		—		6,211,562
PACE Global Real Estate Securities Investments		6,888,217		—		6,888,217

Bank line of credit

With the exception of PACE Government Money Market Investments, the Portfolios participate with other Portfolios managed, advised or subadvised by UBS AM in a $75 million committed credit facility (the "Committed Credit Facility") with State Street Bank and Trust Company. The Committed Credit Facility is to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of a participating Portfolio at the request of shareholders and for other temporary or emergency purposes.

352

PACE Select Advisors Trust

Notes to financial statements

Interest on amounts borrowed is calculated based on the prevailing rates in effect at the time of borrowing. Each Portfolio covered by the Committed Credit Facility has agreed to pay commitment fees on the average daily balance of the Committed Credit Facility not utilized. Commitment fees have been allocated among the Portfolios in the Committed Credit Facility as follows: 50% of the allocation is based on the relative asset size of Portfolios and the other 50% of the allocation is based on utilization. For the year ended July 31, 2017, the following Portfolios had borrowings as follows:

Portfolio	Average daily amount of borrowing outstanding		Days outstanding		Interest expense		Weighted average annualized interest rate
PACE Strategic Fixed Income Investments	$	5,270,269		1	$	291		1.986	%
PACE Large Co Value Equity Investments		1,076,826		39		1,945		1.571
PACE Large Co Growth Equity Investments		1,688,439		16		1,382		1.806
PACE Small/Medium Co Value Equity Investments		2,061,144		10		1,127		1.968
PACE International Equity Investments		1,050,413		45		2,465		1.855
PACE International Emerging Markets Equity Investments		1,923,387		13		1,378		1.978
PACE Global Real Estate Securities Investments		633,212		5		151		1.714
PACE Alternative Strategies Investments		2,728,526		12		1,654		1.773

At July 31, 2017, PACE International Equity Investments had an outstanding borrowing of $1,528,972.

Commission recapture program

Certain Portfolios participate in a brokerage commission recapture program. These Portfolios have established commission recapture arrangements with certain participating brokers or dealers. If a Portfolio's investment subadvisor 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, 2017, the following Portfolios recorded recaptured commissions which are reflected in the Statement of operations within the net realized gains (losses) from investments:

Portfolio	Amount
PACE Large Co Value Equity Investments	$	61,823
PACE Large Co Growth Equity Investments		34,799
PACE Small/Medium Co Value Equity Investments		101,061
PACE Small/Medium Co Growth Equity Investments		48,538
PACE International Equity Investments		92,527
PACE International Emerging Markets Equity Investments		16,363
PACE Global Real Estate Securities Investments		8,236
PACE Alternative Strategies Investments		25,198

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 Portfolios. 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, 2017, the following Portfolios paid brokerage commissions to Morgan Stanley in the amounts as follows:

PACE Large Co Value Equity Investments	$	21,537
PACE Large Co Growth Equity Investments		25,159

353

PACE Select Advisors Trust

Notes to financial statements

PACE Small/Medium Co Value Equity Investments	$	18,241
PACE Small/Medium Co Growth Equity Investments		3,569
PACE International Equity Investments		37,477
PACE International Emerging Markets Equity Investments		20,644
PACE Global Real Estate Securities Investments		19,578
PACE Alternative Strategies Investments		14,930

For the year ended July 31, 2017, 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 Government Money Market Investments	$	14,966,961
PACE Mortgage-Backed Securities Fixed Income Investments		2,196,028,453
PACE Intermediate Fixed Income Investments		165,166,383
PACE Strategic Fixed Income Investments		2,381,222,468
PACE Municipal Fixed Income Investments		11,211,057
PACE Global Fixed Income Investments		39,974,689
PACE High Yield Investments		40,149,133
PACE Alternative Strategies Investments		45,985,505

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.

Purchases and sales of securities

For the year ended July 31, 2017, aggregate purchases and sales of portfolio securities, excluding short-term securities, were as follows:

Portfolio	Purchases		Sales
PACE Mortgage-Backed Securities Fixed Income Investments (long transactions)	$	10,490,467,815	$	10,554,305,274
PACE Intermediate Fixed Income Investments		1,810,169,768		1,805,287,179
PACE Strategic Fixed Income Investments (long transactions)		2,119,043,685		2,202,891,943
PACE Municipal Fixed Income Investments		53,766,117		70,031,713
PACE Global Fixed Income Investments		928,503,104		1,014,363,512
PACE High Yield Investments		358,936,064		415,044,555
PACE Large Co Value Equity Investments (long transactions)		754,102,358		911,209,836
PACE Large Co Value Equity Investments (short transactions)		184,299,542		169,023,828
PACE Large Co Growth Equity Investments		494,653,622		624,902,047
PACE Small/Medium Co Value Equity Investments		519,786,551		589,165,157
PACE Small/Medium Co Growth Equity Investments		431,342,728		478,541,095
PACE International Equity Investments (long transactions)		680,523,577		631,217,031
PACE International Equity Investments (short transactions)		169,402,769		178,602,013
PACE International Emerging Markets Equity Investments		270,160,699		290,741,379
PACE Global Real Estate Securities Investments		136,838,763		141,939,129
PACE Alternative Strategies Investments (long transactions)		686,202,148		779,370,078
PACE Alternative Strategies Investments (short transactions)		360,263,359		334,175,444

354

PACE Select Advisors Trust

Notes to financial statements

Shares of beneficial interest

There is an unlimited number of $0.001 par value shares of beneficial interest authorized. Transactions in shares of beneficial interest for each of the Portfolios, except PACE Government Money Market Investments, which transacts at $1.00 per share, were as follows:

PACE Mortgage-Backed Securities Fixed Income Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		24,803		$	324,266			280		$	3,652
Shares repurchased		(399,286	)		(5,151,214	)		(100,310	)		(1,298,023	)
Dividends reinvested		57,294			738,418			15,145			195,472
Net decrease		(317,189	)	$	(4,088,530	)		(84,885	)	$	(1,098,899	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		1,828,107		$	23,584,420			5,185,379		$	66,990,471
Shares repurchased		(2,320,771	)		(30,067,977	)		(9,322,519	)		(120,161,019	)
Dividends reinvested		105,340			1,357,824			778,507			10,039,350
Net decrease		(387,324	)	$	(5,125,733	)		(3,358,633	)	$	(43,131,198	)

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		62,676		$	819,419			718		$	9,366
Shares repurchased		(678,110	)		(8,838,528	)		(73,491	)		(951,773	)
Dividends reinvested		58,668			761,882			13,365			173,862
Net decrease		(556,766	)	$	(7,257,227	)		(59,408	)	$	(768,545	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		2,360,226		$	30,698,013			5,938,165		$	77,182,418
Shares repurchased		(2,064,149	)		(26,827,857	)		(8,474,604	)		(110,184,103	)
Dividends reinvested		88,232			1,146,869			732,706			9,521,112
Net increase (decrease)		384,309		$	5,017,025			(1,803,733	)	$	(23,480,573	)

355

PACE Select Advisors Trust

Notes to financial statements

PACE Intermediate Fixed Income Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		39,571		$	483,060			13,098		$	159,408
Shares repurchased		(188,733	)		(2,316,132	)		(47,437	)		(581,631	)
Dividends reinvested		17,024			208,555			936			11,478
Net decrease		(132,138	)	$	(1,624,517	)		(33,403	)	$	(410,745	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		42		$	511			4,914,065		$	60,306,862
Shares repurchased		(5,535	)		(67,833	)		(8,186,664	)		(100,409,216	)
Dividends reinvested		584			7,153			571,153			6,998,996
Net decrease		(4,909	)	$	(60,169	)		(2,701,446	)	$	(33,103,358	)

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		32,525		$	400,870			5,222		$	63,654
Shares repurchased		(167,380	)		(2,055,363	)		(30,989	)		(381,832	)
Dividends reinvested		22,248			271,974			1,612			19,707
Net decrease		(112,607	)	$	(1,382,519	)		(24,155	)	$	(298,471	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		1,513		$	18,520			6,722,149		$	82,609,507
Shares repurchased		(6,096	)		(74,487	)		(7,046,388	)		(86,606,273	)
Dividends reinvested		821			10,045			706,177			8,637,610
Net increase (decrease)		(3,762	)	$	(45,922	)		381,938		$	4,640,844

PACE Strategic Fixed Income Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		138,847		$	1,902,451			32,769		$	448,558
Shares repurchased		(135,375	)		(1,857,529	)		(192,885	)		(2,652,160	)
Dividends reinvested		32,977			446,367			19,054			257,504
Net increase (decrease)		36,449		$	491,289			(141,062	)	$	(1,946,098	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		36,268		$	490,502			7,895,823		$	108,542,804
Shares repurchased		(87,754	)		(1,206,837	)		(12,264,489	)		(168,349,196	)
Dividends reinvested		6,535			88,375			2,613,274			35,388,248
Net decrease		(44,951	)	$	(627,960	)		(1,755,392	)	$	(24,418,144	)

356

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		58,037		$	804,711			27,500		$	381,826
Shares repurchased		(116,713	)		(1,607,795	)		(153,639	)		(2,123,679	)
Dividends reinvested		23,858			327,442			15,588			213,855
Net decrease		(34,818	)	$	(475,642	)		(110,551	)	$	(1,527,998	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		35,583		$	483,446			9,379,592		$	129,053,283
Shares repurchased		(63,965	)		(886,160	)		(15,353,290	)		(211,087,432	)
Dividends reinvested		6,469			88,581			2,101,232			28,813,371
Net decrease		(21,913	)	$	(314,133	)		(3,872,466	)	$	(53,220,778	)

PACE Municipal Fixed Income Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		22,482		$	292,349			1,477		$	19,532
Shares repurchased		(321,637	)		(4,209,887	)		(106,756	)		(1,392,164	)
Dividends reinvested		84,731			1,097,789			13,137			169,983
Net decrease		(214,424	)	$	(2,819,749	)		(92,142	)	$	(1,202,649	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		2,674		$	34,577			3,997,284		$	52,136,942
Shares repurchased		(894	)		(11,634	)		(5,850,419	)		(76,002,927	)
Dividends reinvested		36			469			774,501			10,044,406
Net increase (decrease)		1,816		$	23,412			(1,078,634	)	$	(13,821,579	)

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		63,428		$	845,058			21,083		$	280,720
Shares repurchased		(455,385	)		(6,060,444	)		(46,866	)		(623,776	)
Dividends reinvested		81,023			1,078,481			12,790			170,255
Net decrease		(310,934	)	$	(4,136,905	)		(12,993	)	$	(172,801	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		2,625		$	34,750			4,727,279		$	63,083,383
Shares repurchased		(3,639	)		(48,711	)		(5,903,217	)		(78,839,463	)
Dividends reinvested		47			626			746,403			9,941,157
Net decrease		(967	)	$	(13,335	)		(429,535	)	$	(5,814,923	)

357

PACE Select Advisors Trust

Notes to financial statements

PACE Global Fixed Income Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		42,161		$	428,440			1,827		$	19,490
Shares repurchased		(528,768	)		(5,288,643	)		(36,049	)		(360,691	)
Dividends reinvested		80,054			784,718			4,329			42,300
Net decrease		(406,553	)	$	(4,075,485	)		(29,893	)	$	(298,901	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		20,528		$	199,642			5,805,630		$	57,723,827
Shares repurchased		(144,767	)		(1,457,720	)		(14,325,980	)		(141,017,271	)
Dividends reinvested		7,667			75,266			1,151,793			11,298,225
Net decrease		(116,572	)	$	(1,182,812	)		(7,368,557	)	$	(71,995,219	)

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		32,800		$	347,827			4,852		$	51,385
Shares repurchased		(400,840	)		(4,048,622	)		(18,642	)		(186,654	)
Dividends reinvested		100,115			1,001,263			5,591			55,822
Net decrease		(267,925	)	$	(2,699,532	)		(8,199	)	$	(79,447	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		16,847		$	169,866			6,952,643		$	70,369,750
Shares repurchased		(108,584	)		(1,089,768	)		(11,353,659	)		(114,782,200	)
Dividends reinvested		12,456			124,288			1,430,992			14,323,544
Net decrease		(79,281	)	$	(795,614	)		(2,970,024	)	$	(30,088,906	)

PACE High Yield Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		187,204		$	1,834,110			25,004		$	244,734
Shares repurchased		(172,758	)		(1,691,398	)		(101,939	)		(1,003,120	)
Dividends reinvested		15,426			152,398			8,203			80,939
Net increase (decrease)		29,872		$	295,110			(68,732	)	$	(677,447	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		158		$	1,582			5,454,783		$	54,112,831
Shares repurchased		(43,448	)		(430,252	)		(13,245,821	)		(131,819,861	)
Dividends reinvested		3,735			36,967			2,146,838			21,251,408
Net decrease		(39,555	)	$	(391,703	)		(5,644,200	)	$	(56,455,622	)

358

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		40,974		$	381,201			31,515		$	291,417
Shares repurchased		(217,253	)		(1,983,488	)		(95,461	)		(876,856	)
Dividends reinvested	��	19,117			175,667			9,313			85,559
Net decrease		(157,162	)	$	(1,426,620	)		(54,633	)	$	(499,880	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		14,222		$	129,145			7,325,904		$	67,440,502
Shares repurchased		(44,972	)		(418,776	)		(10,849,112	)		(99,774,567	)
Dividends reinvested		6,630			61,042			2,424,658			22,339,811
Net decrease		(24,120	)	$	(228,589	)		(1,098,550	)	$	(9,994,254	)

PACE Large Co Value Equity Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		97,416		$	2,116,816			8,839		$	199,165
Shares repurchased		(578,984	)		(13,129,356	)		(105,269	)		(2,343,246	)
Dividends reinvested		195,073			4,430,117			16,545			377,559
Net decrease		(286,495	)	$	(6,582,423	)		(79,885	)	$	(1,766,522	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		13,076		$	299,723			4,321,121		$	97,734,533
Shares repurchased		(149,139	)		(3,392,757	)		(10,383,085	)		(235,130,902	)
Dividends reinvested		35,514			807,218			2,219,766			50,233,136
Net decrease		(100,549	)	$	(2,285,816	)		(3,842,198	)	$	(87,163,233	)

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		78,794		$	1,606,982			8,648		$	176,495
Shares repurchased		(718,201	)		(15,146,818	)		(97,849	)		(2,007,994	)
Dividends reinvested		634,332			12,534,399			71,270			1,415,420
Net decrease		(5,075	)	$	(1,005,437	)		(17,931	)	$	(416,079	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		21,727		$	428,211			5,453,559		$	112,509,688
Shares repurchased		(122,992	)		(2,600,559	)		(10,790,537	)		(224,267,778	)
Dividends reinvested		111,958			2,214,537			7,078,912			139,383,770
Net increase		10,693		$	42,189			1,741,934		$	27,625,680

359

PACE Select Advisors Trust

Notes to financial statements

PACE Large Co Growth Equity Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		35,214		$	797,762			4,805		$	89,015
Shares repurchased		(221,741	)		(5,017,890	)		(63,737	)		(1,191,712	)
Dividends reinvested		61,879			1,318,013			6,142			108,599
Net decrease		(124,648	)	$	(2,902,115	)		(52,790	)	$	(994,098	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		5,931		$	139,872			4,297,217		$	99,576,157
Shares repurchased		(84,723	)		(1,997,979	)		(9,795,290	)		(228,489,621	)
Dividends reinvested		20,433			450,768			1,762,289			38,611,773
Net decrease		(58,359	)	$	(1,407,339	)		(3,735,784	)	$	(90,301,691	)

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		77,193		$	1,673,916			5,153		$	101,239
Shares repurchased		(238,792	)		(5,344,991	)		(28,414	)		(532,299	)
Dividends reinvested		294,538			6,356,126			33,471			607,835
Net increase		132,939		$	2,685,051			10,210		$	176,775

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		17,187		$	380,882			4,634,745		$	105,678,140
Shares repurchased		(115,244	)		(2,582,171	)		(10,774,125	)		(247,009,171	)
Dividends reinvested		101,937			2,275,236			8,193,923			181,659,306
Net increase		3,880		$	73,947			2,054,543		$	40,328,275

PACE Small/Medium Co Value Equity Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		22,524		$	442,534			5,365		$	97,193
Shares repurchased		(94,015	)		(1,933,931	)		(43,473	)		(721,678	)
Dividends reinvested		31,163			647,548			8,801			154,544
Net decrease		(40,328	)	$	(843,849	)		(29,307	)	$	(469,941	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		380		$	8,190			2,186,330		$	45,803,057
Shares repurchased		(23,076	)		(475,970	)		(5,020,452	)		(105,541,766	)
Dividends reinvested		737			15,893			924,407			19,717,504
Net decrease		(21,959	)	$	(451,887	)		(1,909,715	)	$	(40,021,205	)

360

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		37,781		$	679,799			4,275		$	66,392
Shares repurchased		(128,751	)		(2,307,091	)		(34,608	)		(524,594	)
Dividends reinvested		93,591			1,624,745			31,509			465,710
Net increase (decrease)		2,621		$	(2,547	)		1,176		$	7,508

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		2,729		$	51,474			3,056,983		$	56,419,641
Shares repurchased		(18,832	)		(329,679	)		(5,141,981	)		(96,184,485	)
Dividends reinvested		5,314			95,497			2,745,585			48,843,945
Net increase (decrease)		(10,789	)	$	(182,708	)		660,587		$	9,079,101

PACE Small/Medium Co Growth Equity Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		21,537		$	307,658			27,464		$	324,342
Shares repurchased		(198,619	)		(2,997,232	)		(43,816	)		(506,314	)
Dividends reinvested		—			—			—			—
Net decrease		(177,082	)	$	(2,689,574	)		(16,352	)	$	(181,972	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		262		$	4,401			2,716,804		$	43,686,141
Shares repurchased		(26,378	)		(409,960	)		(5,593,573	)		(90,563,865	)
Dividends reinvested		—			—			46			700
Net decrease		(26,116	)	$	(405,559	)		(2,876,723	)	$	(46,877,024	)

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		85,037		$	1,197,621			6,221		$	73,839
Shares repurchased		(263,171	)		(3,934,411	)		(67,009	)		(815,001	)
Dividends reinvested		318,095			4,517,436			64,384			722,393
Net increase (decrease)		139,961		$	1,780,646			3,596		$	(18,769	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		3,732		$	58,653			3,768,892		$	57,091,212
Shares repurchased		(20,164	)		(301,010	)		(5,943,491	)		(93,788,979	)
Dividends reinvested		9,128			139,471			5,905,510			88,877,927
Net increase (decrease)		(7,304	)	$	(102,886	)		3,730,911		$	52,180,160

361

PACE Select Advisors Trust

Notes to financial statements

PACE International Equity Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		36,409		$	535,552			1,730		$	25,008
Shares repurchased		(256,375	)		(3,739,739	)		(35,061	)		(487,060	)
Dividends reinvested		37,580			519,732			1,452			19,766
Net decrease		(182,386	)	$	(2,684,455	)		(31,879	)	$	(442,286	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		22,403		$	335,300			12,384,069		$	182,116,934
Shares repurchased		(259,024	)		(3,739,939	)		(10,880,708	)		(158,879,925	)
Dividends reinvested		22,854			314,477			1,407,765			19,328,610
Net increase (decrease)		(213,767	)	$	(3,090,162	)		2,911,126		$	42,565,619

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		51,695		$	711,119			4,273		$	58,897
Shares repurchased		(232,451	)		(3,207,342	)		(31,163	)		(419,473	)
Dividends reinvested		28,179			388,873			1,124			15,259
Net decrease		(152,577	)	$	(2,107,350	)		(25,766	)	$	(345,317	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		72,211		$	962,286			9,068,848		$	123,887,296
Shares repurchased		(246,214	)		(3,301,859	)		(12,539,104	)		(170,852,966	)
Dividends reinvested		21,438			294,346			1,105,100			15,139,872
Net decrease		(152,565	)	$	(2,045,227	)		(2,365,156	)	$	(31,825,798	)

PACE International Emerging Markets Equity Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		15,192		$	181,698			—		$	—
Shares repurchased		(61,822	)		(732,375	)		(18,856	)		(203,093	)
Dividends reinvested		2,482			26,782			92			915
Net decrease		(44,148	)	$	(523,895	)		(18,764	)	$	(202,178	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		20,151		$	245,755			5,624,189		$	66,658,885
Shares repurchased		(145,722	)		(1,715,451	)		(7,063,584	)		(84,497,808	)
Dividends reinvested		6,934			75,304			357,626			3,862,358
Net decrease		(118,637	)	$	(1,394,392	)		(1,081,769	)	$	(13,976,565	)

362

PACE Select Advisors Trust

Notes to financial statements

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		17,146		$	184,823			57		$	1,077
Shares repurchased		(72,405	)		(760,386	)		(24,921	)		(243,564	)
Dividends reinvested		1,083			11,357			—			—
Net decrease		(54,176	)	$	(564,206	)		(24,864	)	$	(242,487	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		60,245		$	658,274			8,177,370		$	86,270,069
Shares repurchased		(112,063	)		(1,202,099	)		(9,161,198	)		(96,795,134	)
Dividends reinvested		7,603			80,288			352,582			3,705,641
Net decrease		(44,215	)	$	(463,537	)		(631,246	)	$	(6,819,424	)

PACE Global Real Estate Securities Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		24,369		$	187,585			10,552		$	79,994
Shares repurchased		(13,227	)		(99,468	)		(19,433	)		(137,938	)
Dividends reinvested		1,996			14,210			1,594			10,900
Net increase (decrease)		13,138		$	102,327			(7,287	)	$	(47,044	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		1,146		$	8,282			2,337,461		$	16,893,651
Shares repurchased		(484	)		(3,514	)		(3,790,450	)		(27,427,929	)
Dividends reinvested		136			938			820,141			5,626,170
Net increase (decrease)		798		$	5,706			(632,848	)	$	(4,908,108	)

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		2,083		$	15,391			645		$	4,490
Shares repurchased		(5,046	)		(36,866	)		(7,297	)		(48,962	)
Dividends reinvested		1,024			7,188			988			6,668
Net decrease		(1,939	)	$	(14,287	)		(5,664	)	$	(37,804	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		2,493		$	17,052			2,487,982		$	17,219,231
Shares repurchased		(38,781	)		(273,136	)		(3,932,400	)		(27,225,091	)
Dividends reinvested		1,055			7,174			623,246			4,219,376
Net decrease		(35,233	)	$	(248,910	)		(821,172	)	$	(5,786,484	)

363

PACE Select Advisors Trust

Notes to financial statements

PACE Alternative Strategies Investments
For the year ended July 31, 2017:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		113,582		$	1,184,373			56,144		$	555,670
Shares repurchased		(234,713	)		(2,474,229	)		(373,423	)		(3,711,389	)
Dividends reinvested		—			—			—			—
Net decrease		(121,131	)	$	(1,289,856	)		(317,279	)	$	(3,155,719	)

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		8,528		$	89,460			10,350,762		$	108,680,982
Shares repurchased		(132,701	)		(1,380,661	)		(17,743,826	)		(185,454,010	)
Dividends reinvested		—			—			—			—
Net decrease		(124,173	)	$	(1,291,201	)		(7,393,064	)	$	(76,773,028	)

For the year ended July 31, 2016:

	Class A						Class C
	Shares			Amount			Shares			Amount
Shares sold		413,463		$	4,381,863			448,480		$	4,545,102
Shares repurchased		(162,128	)		(1,708,287	)		(107,636	)		(1,074,161	)
Dividends reinvested		14,938			158,942			27,571			279,019
Net increase		266,273		$	2,832,518			368,415		$	3,749,960

	Class Y						Class P
	Shares			Amount			Shares			Amount
Shares sold		3,288,642		$	34,814,593			17,175,414		$	181,235,185
Shares repurchased		(3,376,675	)		(35,026,681	)		(21,313,309	)		(224,926,210	)
Dividends reinvested		52,574			553,603			2,239,290			23,534,934
Net increase (decrease)		(35,459	)	$	341,515			(1,898,605	)	$	(20,156,091	)

Redemption fees

Effective August 3, 2015, the redemption fee of 1.00% imposed by each class of each series of the Trust, with the exception of PACE Government Money Market Investments, was eliminated. Prior to August 3, 2015 for purchases of shares on or after February 17, 2015, the redemption fee was calculated as a percentage of the amount redeemed within 30 days of purchase, if applicable. This amount was paid to the applicable Portfolio. For the period ended July 31, 2017, the redemption fees retained by the Portfolios are disclosed in the Statement of changes in net assets.

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.

364

PACE Select Advisors Trust

Notes to financial statements

The tax character of distributions paid during the fiscal years ended July 31, 2017 and July 31, 2016 were as follows:

	2017								2016
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 Government Money Market Investments	$	—	$	227,818	$	—	$	—	$	—	$	24,948	$	—	$	—
PACE Mortgage-Backed Securities Fixed Income Investments		—		13,518,665		—		—		—		12,711,635		—		—
PACE Intermediate Fixed Income Investments		—		8,021,219				—		—		9,142,720		720,188		—
PACE Strategic Fixed Income Investments		—		32,945,823		6,254,022		—		—		26,746,267		5,095,336		—
PACE Municipal Fixed Income Investments		10,386,704		92,505		2,805,662		—		11,033,492		—		2,030,575		—
PACE Global Fixed Income Investments		—		9,237,190		—		4,012,782		—		16,848,527		—		—
PACE High Yield Investments		—		23,351,261		—				—		21,394,896		—		3,178,152
PACE Large Co Value Equity Investments		—		23,248,091		36,152,031		—		—		45,716,794		119,176,371		—
PACE Large Co Growth Equity Investments		—		4,312,814		38,258,776		—		—		—		200,263,532		—
PACE Small/Medium Co Value Equity Investments		—		16,268,383		5,521,465		—		—		6,543,402		46,938,578		—
PACE Small/Medium Co Growth Equity Investments		—		—		—		—		—		22,271,143		76,772,564		—
PACE International Equity Investments		—		21,641,537		—		—		—		16,961,715		—		—
PACE International Emerging Markets Equity Investments		—		4,192,140		—		—		—		4,028,778		—		—
PACE Global Real Estate Securities Investments		—		6,076,147		—		—		—		4,533,677		—		—
PACE Alternative Strategies Investments		—		—		—		—		—		26,380,799		—		—

At July 31, 2017, 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 Government Money Market Investments	$	34,550	$	—	$	(1,112	)	$	—	$	33,438
PACE Mortgage-Backed Securities Fixed Income Investments		452,815		—		(14,607,581	)		1,774,599		(12,380,167	)
PACE Intermediate Fixed Income Investments		1,268,087		—		(287,106	)		2,377,681		3,358,662
PACE Strategic Fixed Income Investments		—		—		(10,532,011	)		4,851,910		(5,680,101	)
PACE Municipal Fixed Income Investments		2,516		489,386		—			13,244,245		13,736,147
PACE Global Fixed Income Investments		—		—		(49,766,891	)		10,953,922		(38,812,969	)
PACE High Yield Investments		779,282		—		(13,883,966	)		14,863,555		1,758,871
PACE Large Co Value Equity Investments		18,425,277		83,889,448		(1,742,541	)		159,075,682		259,647,866
PACE Large Co Growth Equity Investments		3,733,821		93,087,713		—			355,937,724		452,759,258
PACE Small/Medium Co Value Equity Investments		30,322,620		26,330,356		—			40,427,216		97,080,192
PACE Small/Medium Co Growth Equity Investments		—		19,377,588		(1,786,669	)		70,416,901		88,007,820
PACE International Equity Investments		17,854,983		—		(126,226,982	)		97,519,454		(10,852,545	)

365

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 International Emerging Markets Equity Investments	$	5,668,669	$	—	$	(64,239,643	)	$	67,493,364		$	8,922,390
PACE Global Real Estate Securities Investments		2,905,092		228,011		—			(3,160,239	)		(27,136	)
PACE Alternative Strategies Investments		—		—		(47,107,186	)		16,244,998			(30,862,188	)

Under the Regulated Investment Company Modernization Act of 2010 (the "Act"), net capital losses recognized by the Portfolios after December 22, 2010, may be carried forward indefinitely, and retain their character as short-term and/or long-term losses. The Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. Post-enactment loss incurred that will be carried forward indefinitely are as following:

Portfolio	Short-term		Long-term		Total
PACE Government Money Market Investments	$	1,112	$	—	$	1,112
PACE Mortgage-Backed Securities Fixed Income Investments		3,247,980		11,359,601		14,607,581
PACE Intermediate Fixed Income Investments		13,786		—		13,786
PACE Strategic Fixed Income Investments		7,210,603		2,744,934		9,955,537
PACE Global Fixed Income Investments		7,060,055		—		7,060,055
PACE High Yield Investments		—		13,883,966		13,883,966
PACE International Emerging Markets Equity Investments		41,232,504		23,007,139		64,239,643
PACE Alternative Strategies Investments		278,914		—		278,914

At July 31, 2017, the following Portfolios had pre-enactment capital loss carryforwards for federal income tax purposes available to offset future capital gains through the indicated expiration dates:

	July 31, 2018		July 31, 2019		July 31, 2020		July 31, 2021		Total
PACE Global Fixed Income Investments	$	7,784,695	$	—	$	—	$	—	$	7,784,695
PACE International Equity Investments		122,040,705		—		—		—		122,040,705
PACE Alternative Strategies Investments		35,556,572		—		—		—		35,556,572

To the extent that such losses are used to offset future net realized capital gains, it is probable these gains will not be distributed.

During the fiscal year, the following Portfolios utilized capital loss carryforwards to offset current year realized gains:

	Capital loss carryforwards utilized
PACE Global Fixed Income Investments	$	3,609,857
PACE High Yield Investments		3,038,919
PACE International Equity Investments		36,204,323
PACE International Emerging Markets Equity Investments		12,458,209
	Capital loss carryforwards expired
PACE Global Fixed Income Investments	$	765,140

366

PACE Select Advisors Trust

Notes to financial statements

Qualified late year losses are deemed to arise on the first business day of a Portfolio's next taxable year. For the year ended July 31, 2017, the following Portfolios incurred, and elected to defer losses of the following:

	Late year ordinary		Post-October capital losses
Portfolio	losses		Short-term		Long-term
PACE Strategic Fixed Income Investments	$	131,392	$	—	$	—
PACE Small/Medium Co Growth Equity Investments		1,786,669		—		—
PACE Global Fixed Income Investments		29,216,059		—		—
PACE Alternative Strategies Investments		10,738,478		—		—

At July 31, 2017, 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/ (distributions in excess of)			Accumulated net realized gain/loss			Beneficial interest
PACE Mortgage-Backed Securities Fixed Income Investments	$	6,012,121		$	(6,012,121	)	$	—
PACE Intermediate Fixed Income Investments		(327,828	)		327,828			—
PACE Strategic Fixed Income Investments		(1,263,811	)		1,263,811			—
PACE Municipal Fixed Income Investments		(3,007	)		3,007			—
PACE Global Fixed Income Investments		(22,120,735	)		31,680,871			(9,560,136	)
PACE High Yield Investments		2,114,997			(2,114,997	)		—
PACE Large Co Value Equity Investments		(187,611	)		187,611			—
PACE Large Co Growth Equity Investments		(482,751	)		482,751			—
PACE Small/Medium Co Value Equity Investments		2,438,216			(2,438,216	)		—
PACE Small/Medium Co Growth Equity Investments		2,076,483			161,330			(2,237,813	)
PACE International Equity Investments		596,045			(596,045	)		—
PACE International Emerging Markets Equity Investments		100,466			(100,466	)		—
PACE Global Real Estate Securities Investments		2,005,537			(2,005,537	)		—
PACE Alternative Strategies Investments		3,569,089			1,596,490			(5,165,579	)

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.

ASC 740-10 "Income Taxes—Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken. The Portfolios have conducted an analysis and concluded as of July 31, 2017 that, other than PACE Global Real Estate Securities Investments, there are no significant uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. As of July 31, 2017, PACE Global Real Estate Securities Investments has recognized a liability of $38,498 related to uncertain tax positions which is included in payable foreign withholding taxes and foreign capital gains taxes. The Portfolios recognize 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, 2017, the Portfolios did not incur any interest or penalties. Capital gains realized by the Portfolios on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.

Under the applicable foreign tax laws, gains on certain securities held in certain foreign countries may be subject to taxes will be paid by the Portfolios.

367

PACE Select Advisors Trust

Notes to financial statements

Each of the tax years in the four year period ended July 31, 2017, remains subject to examination by the Internal Revenue Service and state taxing authorities.

Subsequent Event

Effective August 1, 2017, PACE Municipal Fixed Income Investments lowered its expense cap so that the fund's ordinary total operating expenses of each class (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 0.82% for Class A, 1.32% for Class C and 0.57% for both Class Y and Class P. Additionally, the waiver of UBS AM's management fees to reflect a lower management fee paid by the fund to UBS AM was terminated. In addition, effective August 1, 2017, PACE International Emerging Markets Equity Investments lowered its expense cap so that the fund's ordinary total operating expenses of each class (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and expenses attributable to investment in other investment companies, interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 1.70% for Class A, 2.45% for Class C and 1.45% for both Class Y and Class P.

368

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 schedules of investments, of PACE Select Advisors Trust (comprising, respectively, PACE Government Money Market Investments, PACE Mortgage-Backed Securities Fixed Income Investments, PACE Intermediate Fixed Income Investments, PACE Strategic Fixed Income Investments, PACE Municipal Fixed Income Investments, PACE Global Fixed Income Investments (formerly, 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 "Trust") as of July 31, 2017, and the related statements of operations and the statements of cash flows of PACE Large Co Value Equity Investments and PACE International Equity Investments 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 five years in the period then ended. 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, 2017, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers 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 the PACE Select Advisors Trust at July 31, 2017, the results of their operations and the cash flows of PACE Large Co Value Equity Investments and PACE International Equity Investments 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 five years in the period then ended in conformity with U.S. generally accepted accounting principles.

New York, New York
September 29, 2017

369

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 in writing as to the federal tax status of distributions received by shareholders during the fiscal year. Accordingly, the percentage of ordinary 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	Dividends received deduction			Foreign tax credit
PACE High Yield Investments		0.05	%	$	—
PACE Large Co Value Equity Investments		93.44			—
PACE Large Co Growth Equity Investments		100.00			—
PACE Small/Medium Co Value Equity Investments		20.61			—
PACE International Equity Investments		—			1,713,179
PACE International Emerging Markets Equity Investments		0.68			1,405,855
PACE Global Real Estate Securities Investments		1.18			—

Also, for the fiscal year ended July 31, 2017, the foreign source income for information reporting purposes for PACE International Equity Investments and PACE International Emerging Markets Equity Investments is $30,339,729 and $12,585,273, respectively.

For the taxable year ended July 31, 2017, the Portfolios designate the amounts below as the maximum amount that may be considered qualified dividend income for individual shareholders.

Portfolio	Maximum amount considered qualified dividend income
PACE High Yield Investments	$	12,631
PACE Large Co Value Equity Investments		23,248,091
PACE Large Co Growth Equity Investments		4,312,814
PACE Small/Medium Co Value Equity Investments		3,490,526
PACE International Equity Investments		23,354,716
PACE International Emerging Markets Equity Investments		5,500,615
PACE Global Real Estate Securities Investments		305,159

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 2017. 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 2018. Shareholders are advised to consult their own tax advisers with respect to the tax consequences of their investment in each of the Portfolios.

370

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' Forms N-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 Government 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/usmoneymarketfunds. 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 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/ubsam-proxy, or on the EDGAR Database on the SEC's Web site (http://www.sec.gov).

371

PACE Select Advisors Trust

Board approvals of sub-advisory agreements (unaudited)

February 2017 Board Meeting

Jackson Square Partners LLC

Trustees' considerations

At a meeting of the board of PACE Select Advisors Trust (the "Trust") on February 21-22, 2017, 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 the approval of an amendment of the sub-advisory agreement between UBS Asset Management (Americas) Inc. ("UBS AM") and Jackson Square Partners LLC ("Jackson Square") (the "Sub-Advisory Agreement") with respect to a series of the Trust, PACE Large Co Growth Equity Investments (the "Fund"). Management discussed with the board its proposal to lower the rate of the sub-advisory fee payable by UBS AM to Jackson Square, which would be effective retroactively as of February 1, 2017. Since the board had approved the renewal of the Sub-Advisory Agreement at a meeting held on July 12-13, 2016 (the "July Meeting"), and, other than as discussed below, there had been no material changes in the information presented, the board addressed certain of the relevant considerations, including consideration of the nature, extent and quality of the services under the Sub-Advisory Agreement, fund performance, economies of scale and other benefits that Jackson Square could receive from its association with the Fund, by reference to their considerations and determinations at the July Meeting. The board also received a memorandum from UBS AM discussing the proposed new fee structure.

UBS AM represented that there was expected to be no diminution in the nature, extent or quality of the services provided to the Fund by UBS AM or Jackson Square. The board reviewed and considered the proposed contractual sub-advisory fee to be payable by UBS AM to Jackson Square in light of the nature, extent and quality of the sub-advisory services provided by Jackson Square. The board noted that the proposed contractual sub-advisory fee would reduce the overall fee rate payable and result in a lower sub-advisory fee to be paid by UBS AM out of the management fee paid to it by the Fund. The board indicated that it would further consider the implications, if any, of this lower sub-advisory expense to UBS AM, among other matters, when it engages in its next full UBS AM management contract review, or before if appropriate. In this regard, it was noted that UBS AM provides updated profitability data on the Fund on an ongoing quarterly basis, which provides the board with other opportunities to monitor the impact of the proposed changes on profitability going forward.

The board, including a majority of the Independent Trustees, approved the amendment of the Sub-Advisory Agreement for the Fund. No single factor considered by the board was identified by the board as the principal factor in determining whether to approve amendment of the Sub-Advisory Agreement. The Independent Trustees were advised by separate independent legal counsel throughout the process.

372

PACE Select Advisors Trust

Board approvals of sub-advisory agreements (unaudited)

May 2017 Board Meeting

Kettle Hill Capital Management, LLC

Trustees' considerations

Background—At a meeting of the board of PACE Select Advisors Trust (the "Trust") on May 16-17, 2017, 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 Asset Management (Americas) Inc. ("UBS AM") and Kettle Hill Capital Management, LLC ("Kettle Hill") (the "Sub-Advisory Agreement") with respect to PACE Alternative Strategies Investments (the "Portfolio"). Management discussed with the board its proposal to reduce the target allocation of the Portfolio's assets managed by Standard Life Investments (Corporate Funds) Limited ("Standard Life") from 23% to 18% and to reallocate a portion of the assets managed by Standard Life (i.e., 5%) to Kettle Hill. 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 AM. The board recognized its familiarity with UBS AM and the investment management and sub-advisory agreements for this and the 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. The board also received a memorandum from UBS AM discussing UBS AM's reasons for recommending Kettle Hill 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 Kettle Hill 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. It reviewed the purposes and investment objective of the Portfolio and UBS AM's overall plan to meet the Portfolio's stated purposes and objective. The board considered management's reasons for recommending the appointment of Kettle Hill as a sub-advisor to the Portfolio, including its "due diligence" concerning Kettle Hill and its belief that Kettle Hill's U.S. small cap value equity long/short strategy would benefit the Portfolio by, among other reasons, improving the Portfolio's ability to generate risk-adjusted returns and downside capture performance over full business cycles and complementing the strategies provided by other sub-advisors to the Portfolio. The board also received materials from Kettle Hill detailing its investment philosophy and met with representatives of Kettle Hill, who discussed with the board that investment philosophy 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 AM to Kettle Hill in light of the nature, extent and quality of the sub-advisory services anticipated to be provided by Kettle Hill. The board noted that the proposed contractual sub-advisory fee would result in a net increase in the sub-advisory fees paid by UBS AM with respect to the Portfolio. 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 for the strategy provided by Kettle Hill. The board also noted that, as Kettle Hill 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 Kettle Hill or its affiliates or UBS 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 AM out of the management fee paid to it by the Portfolio, and not by the Portfolio.

373

PACE Select Advisors Trust

Board approvals of sub-advisory agreements (unaudited)

Economies of scale—The board noted that, as the sub-advisory fee for the Portfolio would be paid by UBS AM, not by the Portfolio, consideration of economies of scale with respect specifically to the sub-advisory fee was not relevant.

Other benefits to Kettle Hill—The board was informed by management that Kettle Hill's relationship with the Portfolio would be limited to its provision of sub-advisory services to the Portfolio and that therefore management believed that Kettle Hill 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 Kettle Hill 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, including a majority of the Independent Trustees, approved the proposed 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.

374

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

Background—At a meeting of the board of PACE Select Advisors Trust (the "Trust") on July 18-19, 2017, the members of the board, including the trustees who are not "interested persons," as defined in the Investment Company Act of 1940, as amended, of the Trust (the "Independent Trustees"), considered and approved the continuance of the investment management and administration agreement (the "Investment Management and Administration Agreement") between UBS Asset Management (Americas) Inc. ("UBS AM") and the Trust, on behalf of each series of the Trust (each a "Portfolio" and together the "Portfolios"), and, for those Portfolios with subadvisors/sub-manager(s), the subadvisory/sub-management agreements for the Portfolios. (Throughout this discussion, each subadvisor/sub-manager to a Portfolio is referred to as a "Subadvisor" and each subadvisory/sub-management agreement is referred to as a "Subadvisory Agreement.") In preparing for the meeting, the Independent Trustees had requested and received extensive information from UBS AM to assist them, including information about UBS AM and the Portfolios' Subadvisors, as well as the management, subadvisory, administrative and distribution arrangements for the Portfolios. The board reviewed and discussed with management the materials initially provided by UBS AM 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 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 the approval of management, subadvisory/sub-management, administration and distribution agreements.

In its consideration of the approval of the Investment Management and Administration Agreement and the Subadvisory Agreements, the board considered the following factors:

Nature, extent and quality of the services under the Investment Management and Administration Agreement and the Subadvisory Agreements—The board received and considered information regarding the nature, extent and quality of management services provided to the Portfolios by UBS AM and, for those Portfolios with Subadvisor(s), subadvisory services provided by each Subadvisor during the past year. The board also considered the nature, extent and quality of administrative, distribution and shareholder services performed by UBS 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 AM concerning the management of each Portfolio's affairs and UBS AM's role in coordinating and overseeing 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 AM provided extensive oversight of the Subadvisors for the Portfolios and reported to the board at each regular meeting on the Subadvisors' performance and compliance with applicable requirements and made recommendations with respect to Subadvisor changes (both in terms of the allocation of Portfolio assets to Subadvisors and their hiring and termination) from time to time based on the performance of the Subadvisors and other relevant factors. The board's evaluation of the services provided by UBS AM and the Subadvisors 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 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 AM had expanded over time as a result of regulatory and other developments, including (i) maintaining and monitoring its own and the Portfolios' expanded compliance programs and (ii) hiring and replacing Subadvisors, monitoring current Subadvisors (including adjusting their Portfolio asset allocations) and coordinating strategies among Subadvisors to continue to optimize the implementation and effectuation of the Portfolios' investment strategies. It also was noted that the Investment Management and Administration Agreement under consideration had been approved by shareholders at a special meeting of shareholders of the Trust held in 2008.

The board had available to it the qualifications, backgrounds and responsibilities of the senior personnel at UBS AM responsible for the Portfolios and had previously met with and received information regarding the person(s) or portfolio management team from each Subadvisor primarily responsible for the day-to-day management of each Portfolio. The board recognized that the Portfolios' senior personnel at UBS AM report to the board regularly, and

375

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

that at each regular meeting the board receives a detailed report from UBS AM on each Portfolio's performance and receives more extensive information periodically from each Subadvisor. The board also considered, based on its knowledge of UBS AM and its affiliates, the financial resources available to UBS AM and its parent organization, UBS Group AG. In that regard, the board received extensive financial information regarding UBS AM and noted that it was a wholly owned, indirect subsidiary of one of the largest financial services firms in the world. It also was noted that UBS AM had approximately $146 billion in assets under management as of March 31, 2017 and was part of the UBS Asset Management Division, which had approximately $695 billion in assets under management worldwide as of March 31, 2017. The board also was cognizant of, and considered, the regulatory and litigation actions and investigations occurring in the past few years involving UBS Group AG, UBS 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 Subadvisory Agreements.

Management and subadvisory 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 AM in light of the nature, extent and quality of the services provided by UBS AM pursuant to the Investment Management and Administration Agreement. The board also reviewed and considered the fee waiver and/or expense reimbursement arrangements for each Portfolio (if any) and considered the actual fee rate (after taking any waivers and reimbursements into account) (the "Actual Management Fee") payable by the Portfolio. The board considered whether UBS AM had entered into one or more fee waiver and/or expense reimbursement agreements with a Portfolio under which UBS 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 that Portfolio through November 30, 2017 (excluding dividend expense, borrowing costs, interest expense relating to short sales, expenses attributable to investment in other investment companies, 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 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. Moreover, the board considered that, in addition to continuing to waive certain fees and/or reimbursing certain expenses as in past years, UBS AM also offered specific new expense caps for certain Portfolios as discussed below. 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 Broadridge, an independent provider of investment company data (the "Expense Group"). The board also received from Broadridge comparative data on a supplemental expense group of subadvised peers (which may include certain of the subadvised peers contained within the primary Expense Group) (the "Supplemental 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 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, such as the Portfolios, versus those accounts and the differences in the levels of services required by the Portfolios and those accounts. The board also received information on fees charged to other mutual funds managed by UBS AM. The board observed that it had received certain information regarding fees, compensation from other similar funds, and economies of scale from certain Subadvisors as part of the summary of each Subadvisor's responses to requests for due diligence materials in connection with the board's annual reconsideration of the Subadvisory Agreements; however, the board also observed that the compensation paid to a Subadvisor is paid by UBS AM, not by the particular Portfolio, and, accordingly,

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that the retention of a Subadvisor generally does not increase the fees otherwise incurred by a Portfolio's shareholders (unless a management fee waiver level was affected by a subadvisory fee increase 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 Broadridge over the one-, three-, five-, ten-year and since inception periods ended April 30, 2017, and (b) annualized performance information for each year in the ten-year (or shorter) period ended April 30, 2017. Although the board received information for the ten-year and since inception periods, in its analysis, it generally placed greater emphasis on the one-, three- and five-year periods. The board was provided with a description of the methodology Broadridge used to determine the similarity of a Portfolio with the funds included in its Performance Universe. The board also considered UBS AM's statement that while management believed that the Broadridge 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 Subadvisor'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 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 AM's profitability was considered not excessive in light of the nature, extent and quality of the services provided to the Portfolios. A Subadvisor's profitability in providing services to a Portfolio was not a significant factor considered by the board, as the subadvisory fees are paid by UBS AM, not by the relevant Portfolio.

Economies of scale—The board received and considered information from management regarding whether UBS 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 Government Money Market Investments. The board also noted that as of April 30, 2017, with the exception of PACE Global Fixed Income Investments, PACE Global Real Estate Securities Investments, PACE High Yield Investments, PACE International Emerging Markets Equity Investments and PACE Small/Medium Co Growth Equity 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 subadvisory fee and the breakpoints in fees paid by the Portfolios to UBS AM.

Generally, in light of UBS AM's profitability data, the Actual Management Fees, the Contractual Management Fees, the breakpoints currently in place for the Portfolios and the current assets of the Portfolios, the board believed that UBS AM's sharing of potential and current economies of scale with the Portfolios was acceptable.

Other benefits to UBS AM and the Subadvisors—The board was informed by management that the Subadvisors' relationships with the Portfolios were limited to their provision of subadvisory services to these Portfolios, and that therefore, management believed that the Subadvisors and their affiliates did not receive tangible ancillary benefits as a result of the Subadvisors' relationships with the Portfolios, with the exception of possible

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Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

benefits from soft dollars (e.g., research credits related to transaction commissions) for the equity Portfolios (which also would potentially benefit such Portfolios) and possible limited benefits to certain affiliates of a Subadvisor, 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 Subadvisors could receive intangible benefits from their association with the Trust, such as increased name recognition or publicity from being selected as Subadvisors to the Trust after an extensive review process. Similarly, a Portfolio could benefit from having a Subadvisor 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 AM's ongoing commitment to the Portfolios, the profits and other ancillary benefits that UBS AM and its affiliates received were considered reasonable.

In the discussions that follow, reference is made to the "median" in the Broadridge Expense Group, Supplemental Expense Group and Broadridge Performance Universe categories. With respect to expenses, below median fees or expenses represent fees or expenses that are lower relative to the median, and above median fees or expenses represent fees or expenses that are higher relative to the median of the funds in the relevant Expense Group. With respect to performance, below median performance represents performance that is worse relative to the median, and above median performance represents performance that is better relative to the median of the funds in the relevant Performance Universe. Broadridge information is calculated on a share class basis. References appearing below relate to Class A shares; the board also 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 Subadvisory Agreements with each of J.P. Morgan Investment Management Inc. ("J. P. Morgan"), Jackson Square Partners, LLC and Mar Vista Investment Partners, LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was below the Performance Universe median for the one-, three-, five- and ten-year periods and since inception. Management explained that the majority of the Portfolio's underperformance relative to peers over the one-year period was driven by poor stock selection in certain sectors. Management stated that two of the Portfolio's Subadvisors underperformed the performance benchmark. Management noted that over the past year and especially in 2016, it was a difficult environment for active growth managers as the majority lagged the benchmark. Management noted that, given the sharply rising market and the Portfolio's generally lower beta profile positioning over the past five years, the Portfolio would be expected to lag the benchmark. Management also noted its belief that active equity managers go through alpha cycles and that there is potential for performance reversion as the Subadvisors are still adhering to their investment philosophy and process.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the median in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management noted that the Portfolio's total expenses, although above the median, were reasonably close to the Expense Group median (within three basis points (that is, hundredths of a percentage point)—i.e., 0.03%) within a tightly-ranged peer group. Management also noted that, compared to the Supplemental Expense Group, consisting of seven other subadvised funds, the Portfolio's Contractual Management Fee and Actual Management Fee were more closely aligned with its peers, and the Portfolio's total expenses were below the median. Management stated that the Portfolio's total expenses were lower than those of the other two multi-managed funds in the Supplemental Expense Group. Management also noted the downward trend in the Portfolio's total expenses over the last few years.

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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 Subadvisory Agreements with each of Boston Partners Global Investors, Inc., Los Angeles Capital Management and Equity Research, Inc. ("Los Angeles Capital"), Pzena Investment Management, LLC and River Road Asset Management, LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was above the Performance Universe median for the one-, three-, five- and ten-year periods and since inception.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the median in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management explained that the Portfolio's total expenses, although above the median, were reasonably close to the Expense Group median (within three basis points—i.e., 0.03%) within a tightly-ranged peer group and that the Portfolio was the only multi-managed fund in the Expense Group. Management noted that, compared to the Supplemental Expense Group, consisting of six other subadvised funds, the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the respective medians. Management also noted that the managers of four of the other subadvised funds utilize affiliated subadvisors, which may result in those funds having lower overall expenses.

PACE Small/Medium Co Growth Equity Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreements with each of LMCG Investments, LLC ("LMCG"), Riverbridge Partners, LLC and Timpani Capital Management LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was below the Performance Universe median for the one-, three-, five- and ten-year periods and since inception. Management explained that the Portfolio outperformed its performance benchmark by 60 basis points (i.e., 0.60%) over the one-year period but underperformed its Expense Group peers largely due to the Portfolio being classified under the Broadridge Small Cap Growth category given that there is not a Broadridge small/medium cap growth category. Management noted that small cap companies outperformed mid cap companies during the one-year period. Management stated that a majority of the Portfolio's outperformance relative to its performance benchmark was driven by positive stock selection within certain sectors as well as sector allocation and that the most prominent detractor to Fund performance was weak stock selection within a particular sector.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were below the median in the Portfolio's Expense Group, as well as the Supplemental Expense Group, for the comparison periods utilized in the Broadridge report.

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PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

PACE Small/Medium Co Value Equity Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreements with each of Huber Capital Management LLC, Kayne Anderson Rudnick Investment Management, LLC, Sapience Investments, LLC and Systematic Financial Management, L.P., the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was above the Performance Universe median for the three- and five-year periods, but that the Portfolio's performance was below the Performance Universe median for the one- and ten-year periods and since inception. Management stated that the Portfolio was classified under the Broadridge Small Cap Core Category, as there is not a Broadridge small/medium cap value category. Management noted that small cap companies outperformed mid cap companies during the one-year period. Management noted that one of the Portfolio's Subadvisors was a significant detractor to Portfolio performance and underperformed due to sector allocation.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were below the median in the Portfolio's Expense Group, as well as below or at the median in the Supplemental Expense Group, for the comparison periods utilized in the Broadridge report.

PACE International Equity Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreements with each of Chautauqua Capital Management—a division of Robert W. Baird & Co. Incorporated, Los Angeles Capital and Mondrian Investment Partners Limited ("Mondrian"), the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was above the Performance Universe median for the five-year period, but that the Portfolio's performance was below the Performance Universe median for the one-, three- and ten-year periods and since inception.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee and Actual Management Fee were below the median and its total expenses were above the median in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management explained that the Portfolio's total expenses, although above the median, were reasonably close to the Expense Group median (within three basis points—i.e., 0.03%) within a tightly-ranged peer group and that the Portfolio's total expenses were lower than those of the only other multi-managed fund in the Expense Group. Management noted that, compared to the Supplemental Expense Group, consisting of eight other subadvised funds, the Portfolio's Contractual Management Fee and total expenses were above the median and the Portfolio's Actual Management Fee was at the median. Management also noted that the managers of six of the other subadvised funds utilize affiliated subadvisors, which may result in those funds having lower overall expenses.

PACE International Emerging Markets Equity Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreements with each of LMCG, Mondrian and William Blair Investment Management, LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was below the Performance Universe median for the one-, three-, five- and ten-year periods and since inception.

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Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

Management stated that the Portfolio underperformed, particularly in 2016, due to a rally in cheap, low-quality, high-risk companies that the Portfolio generally avoids. Management noted that an overweight to a particular sector contributed to underperformance, compounded by poor stock selection. One of the Subadvisors also lagged during the one-year period due to poor sector selection.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the median in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management noted that the variance in the Portfolio's total expenses relative to the Expense Group median was primarily attributable to non-management fee expenses, including transfer agent fees and custody fees, which are driven mainly by fees charged for the safekeeping of assets in local markets. Management explained that these sub-custody fees can vary widely based on the countries of the investments within the respective funds in the peer group (as evidenced by the wide range of fees across them), and that investments in less developed or frontier-type markets are more costly than investments in developing or developed countries. Management stated that it reviews sub-custody fees relative to the markets the Portfolio invests in on an annual basis and will seek to make changes to the "all in" basis point custody fee if warranted. Management also stated that it periodically conducts a review of custody fees for all Portfolios in an effort to ensure that the fees paid by the Portfolios are competitive and appropriate. Management noted that, compared to the Supplemental Expense Group, consisting of nine other subadvised funds, the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the median. Management also noted that the managers of six of the other subadvised funds utilize affiliated subadvisors, which may result in those funds having lower overall expenses. Management stated that the Portfolio's expense cap was voluntarily lowered by 20 basis points (i.e., 0.20%) across all share classes in 2016 and proposed to voluntarily lower the Portfolio's expense cap by an additional five basis points (i.e., 0.05%).

PACE Alternative Strategies Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreements with each of Analytic Investors, LLC, AQR Capital Management, LLC, Aviva Investors Americas LLC, First Quadrant L.P., PCJ Investment Counsel Ltd., Principal Global Investors, LLC doing business as Macro Currency Group, Sirios Capital Management, L.P. and Standard Life Investments (Corporate Funds) Limited, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was above the Performance Universe median for the three- and five-year periods, but the Portfolio's performance was below the Performance Universe median for the one- and ten-year periods and since inception. Management noted that the Portfolio's performance for the one-year period was relatively close to the median.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee and total expenses were below the median and its Actual Management Fee was at the median in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management noted that, compared to the Supplemental Expense Group, consisting of twelve other subadvised funds, the Portfolio's Contractual Management Fee and total expenses were below the median and the Portfolio's Actual Management Fee was at the median.

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PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

PACE Global Real Estate Securities Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreement with Brookfield Investment Management Inc., the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was above the Performance Universe median for the one-, three- and five-year periods, but the Portfolio's performance was below the Performance Universe median for the ten-year period and since inception.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee and Actual Management Fee were below the median and its total expenses were above the median in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management explained that the Portfolio's total expenses, although above the median, were reasonably close to the Expense Group median (within approximately five basis points—i.e., 0.05%) within a tightly-ranged peer group. Management noted that the Portfolio's total expenses were within two basis points (i.e., 0.02%) of the median of the Supplemental Expense Group, consisting of five other subadvised funds. Management further noted that the Portfolio's Contractual Management Fee and Actual Management Fee were well below the respective medians of the Expense Group and Supplemental Expense Group. Management explained that the Portfolio's high transfer agent fees are the main driver of the Portfolio's higher total expenses, which are a result of the large number of shareholder accounts with smaller account sizes within the Portfolio.

PACE Mortgage-Backed Securities Fixed Income Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreement with Pacific Investment Management Company LLC ("PIMCO"), the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was below the Performance Universe median for the one-, three- and five-year periods and above the median for the ten-year period and since inception. Management noted that the Portfolio's performance for the one- and three- year periods was within one basis point (i.e., 0.01%) and twelve basis points (i.e., 0.12%) of the median, respectively.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the median (with the Portfolio's Contractual Management Fee the highest in the Expense Group) for the comparison periods utilized in the Broadridge report. Management explained that the Portfolio's total expenses, although above the median, were reasonably close to the Expense Group median (within five basis points—i.e., 0.05%). Management noted the Portfolio's total expenses have become more closely aligned with its peer group over the last few years. Management also noted that, compared to the Supplemental Expense Group, consisting of three other subadvised funds, all of which utilize affiliated subadvisors, the Portfolio's Actual Management Fee was below the median.

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PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

PACE High Yield Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreements with each of Nomura Corporate Research and Asset Management Inc. ("NCRAM") and Nomura Asset Management Singapore Limited (the latter being a sub-manager to NCRAM for Asia), the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was above the Performance Universe median for the one-, three-, five- and ten-year periods and since inception.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee and Actual Management Fee were above the median in the Portfolio's Expense Group (with the Portfolio's Contractual Management Fee the highest in the Expense Group) and its total expenses were below the median for the comparison periods utilized in the Broadridge report. Management explained that the Portfolio's Actual Management Fee, although above the median, was reasonably close to the Expense Group median (within five basis points—i.e., 0.05%). Management noted the downward trend in the Portfolio's total expenses over the last few years. Management also noted that, compared to the Supplemental Expense Group, consisting of nine other subadvised funds, five of which utilize affiliated subadvisors, the Portfolio's Actual Management Fee was within one basis point (i.e., 0.01%) of the median and its total expenses were below the median.

PACE Intermediate Fixed Income Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreement with BlackRock Financial Management, Inc., the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was below the Performance Universe median for the one-, three-, five- and ten-year periods and since inception. Management noted that the duration of the Portfolio is approximately two years shorter than that of the peer funds in the Performance Universe. Management explained that during the period of prolonged historically low interest rates, the Portfolio has produced lower returns versus longer-duration peers. Management stated that it would expect the Portfolio's relative performance to improve when Treasury yields start to rise due to the Portfolio's shorter duration (i.e., lower interest rate sensitivity) relative to its peers. Management noted that the Portfolio's performance for the one-year period was within 19 basis points (i.e., 0.19%) of the median.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the median (with the Portfolio's Contractual Management Fee the highest in the Expense Group) in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management explained that the Portfolio's Actual Management Fee, although above the median, was reasonably close to the Expense Group median (within three basis points—i.e., 0.03%). Management noted the downward trend in the Portfolio's total expenses over the last few years. Management also noted that, compared to the Supplemental Expense Group, consisting of five other subadvised funds, four of which utilize affiliated subadvisors, the Portfolio's Actual Management Fee and total expenses, although above the respective medians, were reasonably close to the medians (within one basis point (i.e., 0.01%) and seven basis points (i.e., 0.07%), respectively).

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PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

PACE Global Fixed Income Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreement with J.P. Morgan, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was below the Performance Universe median for the one-, three-, five- and ten-year periods and since inception. Management noted that as of December 1, 2016, the Portfolio changed its name, investment strategy and performance benchmark, which resulted in the Portfolio being reclassified under the Broadridge Global Income category. Management explained that measuring the Portfolio's performance against that of the funds classified under the Broadridge Global Income category over the one-year period does not accurately reflect the performance of the Portfolio relative to its peers. Management noted that for the first seven months of the one-year period, the Portfolio was managed using its prior investment strategy and accordingly had minimal exposure to U.S. fixed income securities, while over the same time period the average exposure of the Performance Universe to U.S. fixed income securities was approximately 40%. Management stated that the Portfolio's marginal exposure to generally stronger-performing U.S. fixed income securities during this period led to the Portfolio's underperformance compared to both its new performance benchmark and its Performance Universe.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee and total expenses were above the median (with the Portfolio's Contractual Management Fee the highest in the Expense Group) and its Actual Management Fee was at the median in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management noted that the Portfolio's total expenses were within three basis points (i.e., 0.03%) of the median. Management also noted the downward trend in the Portfolio's total expenses over the last few years. Management further noted that, compared to the Supplemental Expense Group, consisting of five other subadvised funds, all of which utilize affiliated subadvisors, the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the median.

PACE Municipal Fixed Income Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreement with Standish Mellon Asset Management Company LLC, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was below the Performance Universe median for the one-, five- and ten-year periods and since inception and above the Performance Universe median for the three-year period. Management explained that the Portfolio is managed as a higher quality offering and was underweight to lower-rated securities and overweight to higher-rated securities relative to its peers during the one-year period. Management stated that this led the Portfolio to underperform, as lower-rated investment grade municipal bonds generally were the strongest performing securities over the period. Management noted that the Portfolio's performance for the five- and ten-year periods was within three basis points (i.e., 0.03%) and one basis point (i.e., 0.01%) of the medians, respectively.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the median in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management explained that it appears that other funds in the Expense Group have large fee waivers in place. Management noted that the Portfolio's total expenses, although above the median, were reasonably close to the Expense Group median (within approximately eight basis points—i.e., 0.08%) within a tightly-ranged peer group. Management also noted the downward trend in the Portfolio's Actual Management Fee over the last few years. Management

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Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

stated that, compared to the Supplemental Expense Group, consisting of six other subadvised funds, four of which utilize affiliated subadvisors, the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the respective medians. Management proposed to voluntarily lower the Portfolio's expense cap by eight basis points (i.e., 0.08%) across all share classes. Management also proposed to remove the voluntary management fee waiver, which would create operational efficiency and streamline the Portfolio's waiver calculation. Management stated that these changes would result in a reduction of approximately three basis points (i.e., 0.03%) in the Portfolio's Actual Management Fee.

PACE Strategic Fixed Income Investments

In approving the Investment Management and Administration Agreement and the Subadvisory Agreement with Neuberger Berman Investment Advisers LLC and PIMCO, the board, including the Independent Trustees, also considered the following factors:

Portfolio performance—The comparative Broadridge information showed that the Portfolio's performance was above the Performance Universe median for the one-, three- and ten-year periods and since inception and below the Performance Universe median for the five-year period. Management noted that the addition of a second Subadvisor to the Portfolio in 2015 had contributed positively to performance.

Management and subadvisory fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the median in the Portfolio's Expense Group for the comparison periods utilized in the Broadridge report. Management noted the Portfolio's total expenses have become more closely aligned with its peer group over the last few years. Management stated that, compared to the Supplemental Expense Group, consisting of six other subadvised funds, four of which utilize affiliated subadvisors, the Portfolio's Contractual Management Fee, Actual Management Fee and total expenses were above the respective medians. Management noted that the Portfolio's Actual Management Fee, although above the median in the Supplemental Expense Group, was reasonably close to the median (within three basis points (i.e., 0.03%)). Management also noted that in the Supplemental Expense Group, one of the four peers that utilize affiliated subadvisors pays low subadvisory fees. Management also noted that the Portfolio's expense cap was voluntarily lowered by 10 basis points (i.e., 0.10%) across all share classes in 2016.

PACE Government 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 Broadridge information showed that the Portfolio's performance was at or above the Performance Universe median for the one-, three-, five- and ten-year periods and since inception. The board noted that the Portfolio's above median performance included periods during which the Portfolio was managed as a prime money market fund, in contrast to the government money market funds in the Portfolio's Performance Universe.

Management fees and expense ratios—The comparative Broadridge information showed that the Portfolio's Contractual Management Fee and its Actual Management Fee, which was zero, were below the median and its total expenses were above the median in the Portfolio's Expense Group (with the Portfolio's total expenses the highest in the Expense Group) for the comparison periods utilized in the Broadridge report. Management explained that the Portfolio's higher total expenses relative to its Expense Group were due to yield floor waivers applied to varying degrees over different time horizons for all of the funds in the Expense Group, which made it difficult to assess true comparisons. Management stated that the net prospectus expense ratio, which represents a fund's total expenses net of contractual waivers (as they appear in the fund's prospectus) but does not include any voluntary expense

385

PACE Select Advisors Trust

Board approvals of investment management and administration agreement and subadvisory agreements (unaudited)

waivers (e.g., yield floor waivers), provides a better method of comparison for this year. Management noted that the Portfolio's net prospectus expense ratio was below the median in the Expense Group.

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 subadvisory fee, as proposed by management after questions and/or suggestions posed by the board, 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 Subadvisory Agreement or Subadvisory Agreements, respectively.

In light of all of the foregoing, the board, including a majority of the Independent Trustees, approved the Investment Management and Administration Agreement for each Portfolio and, for those Portfolios with Subadvisors, the Subadvisory Agreement(s). 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 subadvised Portfolios, the Subadvisory 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 Subadvisory Agreements in private sessions with their independent legal counsel at which no representatives of UBS AM or the Subadvisors were present.

386

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; 75 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 2005). Professor Feldberg also served 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 promoted interaction with other cities around the world) (2007-2014). Prior to 2004, he was Dean and Professor of Management and Ethics of the Graduate School of Business at Columbia University (since 1989). From 1992 to 2016, Professor Feldberg was a director of Macy's, Inc. (operator of department stores). From 1997 to 2017, Professor Feldberg was a director of Revlon, Inc. (cosmetics).	Professor Feldberg is a director or trustee of 15 investment companies (consisting of 55 portfolios) for which UBS Asset Management (Americas) Inc. ("UBS AM") or one of its affiliates serves as investment advisor or manager.	Professor Feldberg is also a director of the New York City Ballet.

387

PACE Select Advisors Trust

Supplemental information (unaudited)

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; 82 c/o Keith Weller Assistant Fund Secretary UBS 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 1991 and principal occupation since 1995). Mr. Armstrong was president or chairman of a number of international packaged goods companies (responsible for such brands as Canada Dry, Dr. Pepper, Adirondack Beverages and Moët Hennessy, among many others) (from 1982 until 1995).	Mr. Armstrong is a director or trustee of 10 investment companies (consisting of 50 portfolios) for which UBS AM serves as investment advisor or manager.	None
Alan S. Bernikow; 76 207 Benedict Ave. Staten Island, NY 10314	Trustee	Since 2005	Mr. Bernikow is retired. Previously, he was deputy chief executive officer at Deloitte & Touche (international accounting and consulting firm). From 2003 to March 2017, Mr. Bernikow was also a director of Destination XL Group, Inc. (menswear) (and served as a member of its nominating and corporate governance committee).	Mr. Bernikow is a director or trustee of 10 investment companies (consisting of 50 portfolios) for which UBS AM 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 the compensation committee), the lead director of Mack-Cali Realty Corporation (real estate investment trust) (and serves as the chair of its audit committee). He is also the lead director of FCB Financial Holdings, Inc. (banking) (and serves as the chair of its audit committee and member of the nominating and governance committee and compensation committee.
Richard R. Burt; 70 McLarty Associates 900 17th Street Washington, D.C. 20006	Trustee	Since 2001	Mr. Burt is a managing director to McLarty Associates (a consulting firm) (since 2007). He was chairman of IEP Advisors (international investments and consulting firm) until 2009. Prior to 2007, he was chairman of Diligence Inc. (international information and risk management firm).	Mr. Burt is a director or trustee of 10 investment companies (consisting of 50 portfolios) for which UBS AM serves as investment advisor or manager.	Mr. Burt is also a director of The Central Europe, Russia and Turkey Fund, Inc., The European Equity Fund, Inc. and The New Germany Fund, Inc. (and serves as a member of each such fund's audit, nominating and governance committee).
Bernard H. Garil; 77 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 10 investment companies (consisting of 50 portfolios) for which UBS AM serves as investment advisor or manager.	Mr. Garil is also a director of OFI Global Trust Company (commercial trust company), The Leukemia and Lymphoma Society (voluntary health organization) and a trustee for the Brooklyn College Foundation, Inc. (charitable foundation).

388

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
Heather R. Higgins; 57 c/o Keith A. Weller Assistant Fund Secretary UBS Asset Management (Americas) Inc. 1285 Avenue of the Americas New York, NY 10019	Trustee	Since 2005	Ms. Higgins is the president and director of The Randolph Foundation (charitable foundation) (since 1991). Ms. Higgins also serves (or has served) on the boards of several non-profit charitable groups, including the Independent Women's Forum (chairman) and the Philanthropy Roundtable (vice chairman). She also serves on the board of the Hoover Institution (from 2001 to 2007 and since 2009).	Ms. Higgins is a director or trustee of 10 investment companies (consisting of 50 portfolios) for which UBS AM serves as investment advisor or manager.	None

389

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*; 52	Chief Compliance Officer	Since 2014	Mr. Allessie is a managing director (since 2015) (prior to which he was an executive director (from 2007 to 2015)) at UBS AM and UBS Asset Management (US) Inc. (collectively, "UBS AM—Americas region"). Mr. Allessie is head of compliance and operational risk control for the UBS Asset Management Division in the Americas with oversight for traditional and alternative investment businesses in Canada, the US and Cayman Islands. Prior to that he served as deputy general counsel of UBS AM—Americas region (from 2005 to 2014). Mr. Allessie is the chief compliance officer (prior to which he was interim chief compliance officer (from January to July 2014)) and had served as a vice president and assistant secretary (from 2005 to 2016) of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Rose Ann Bubloski*; 49	Vice President and Assistant Treasurer	Since 2011	Ms. Bubloski is a director (since 2012) (prior to which she was an associate director (from 2008 to 2012)) and senior manager of registered fund product control of UBS AM—Americas region. She is vice president and assistant treasurer of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Mark E. Carver*; 54	President	Since 2010	Mr. Carver is a managing director and head of product development and management for UBS 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). Mr. Carver is president of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Thomas Disbrow*; 51	Vice President and Treasurer	Since 2000 (Vice President) Since 2004 (Treasurer)	Mr. Disbrow is a managing director (since 2011) (prior to which he was an executive director (from 2007 to 2011)) and is global head of registered fund product control (since January 2016) (prior to which he was head of the North America fund treasury administration department of UBS AM—Americas region (from 2011-2015)). Mr. Disbrow is a vice president and treasurer and/or principal accounting officer of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Mark F. Kemper**; 59	Vice President and Secretary	Since 2004	Mr. Kemper is a managing director and general counsel of UBS AM—Americas region (since 2006 and 2004 respectively). He has been secretary of UBS AM—Americas region (since 2004), and assistant secretary of UBS Asset Management Trust Company (since 1993). Mr. Kemper is vice president and secretary of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager. Mr. Kemper is employed by UBS Business Solutions US LLC (since January 2017).
Joanne M. Kilkeary*; 49	Vice President and Assistant Treasurer	Since 1999	Ms. Kilkeary is an executive director (since 2013) (prior to which she was a director) (from 2008 to 2013)) and a senior manager (since 2004) of registered fund product control of UBS AM—Americas region. Ms. Kilkeary is a vice president and assistant treasurer of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.

390

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
Tammie Lee*; 46	Vice President and Assistant Secretary	Since 2005	Ms. Lee is an executive director with UBS Business Solutions US LLC (since January 2017) and also with UBS AM—Americas region (since 2010) (prior to which she was a director) (from 2005 to 2010)) and associate general counsel of UBS AM—Americas region (since 2005). Ms. Lee is a vice president and assistant secretary of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Mabel Lung***; 59	Vice President	Since May 2016	Ms. Lung is a managing director and global head of the Multi-Manager Solutions team of UBS AM-Americas region (since 2005). Ms. Lung is a vice president of one investment company (consisting of 15 portfolios) for which UBS AM serves as investment advisor or manager.
William T. MacGregor*; 42	Vice President and Assistant Secretary	Since 2015	Mr. MacGregor is an executive director and deputy general counsel with UBS Business Solutions US LLC (since January 2017) and also with UBS AM—Americas region (since 2015). From June 2012 through July 2015, Mr. MacGregor was Senior Vice President, Secretary and Associate General Counsel of AXA Equitable Funds Management Group, LLC and from May 2008 through July 2015, Mr. MacGregor was Lead Director and Associate General Counsel of AXA Equitable Life Insurance Company. Mr. MacGregor is a vice president and assistant secretary of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Nancy D. Osborn*; 51	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 registered fund product control of UBS AM—Americas region (since 2006). Mrs. Osborn is a vice president and assistant treasurer of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Robert Sabatino**; 44	Vice President	Since 2001	Mr. Sabatino is a managing director (since 2010) (prior to which he was an executive director) (from 2007 to 2010)), global head of liquidity portfolio management (since 2015), head of US taxable money markets (from 2009 to 2015), and portfolio manager of UBS AM—Americas region in the short duration fixed income group (since 2001). Mr. Sabatino is a vice president of four investment companies (consisting of 29 portfolios) for which UBS AM serves as investment advisor or manager.
Eric Sanders*; 51	Vice President and Assistant Secretary	Since 2005	Mr. Sanders is a director and associate general counsel with UBS Business Solutions US LLC (since January 2017) and also with UBS AM—Americas region (since 2005). Mr. Sanders is a vice president and assistant secretary of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Gina M. Toth***; 53	Vice President	Since May 2016	Ms. Toth is an executive director and portfolio manager in the Multi-Manager Solutions team of UBS AM-Americas region (since 2013). Prior to joining UBS AM-Americas region, Ms. Toth was a senior portfolio manager at Alliance Bernstein (from 1993 to 2012). Ms. Toth is a vice investment of one investment company (consisting of 15 portfolios) for which UBS AM serves as investment advisor or manager.
David Walczak**; 34	Vice President	Since 2016	Mr. Walczak is an executive director (since January 2016), head of US taxable money markets (since July 2015) and portfolio manager of UBS AM—Americas region. Mr. Walczak is a vice president of five investment companies (consisting of 44 portfolios) for which UBS AM serves as investment advisor or manager.

391

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
Keith A. Weller*; 56	Vice President and Assistant Secretary	Since 2000	Mr. Weller is an executive director and senior associate general counsel with UBS Business Solutions US LLC (since January 2017) and also with UBS 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 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Mandy Yu*; 34	Vice President	Since 2013	Ms. Yu is an associate director (since 2015) (prior to which she was an authorized officer (from 2012 to 2015)) and tax compliance manager (since 2013) of registered fund product control of UBS AM—Americas region. She was a fund treasury manager (from 2012 to 2013) and a mutual fund administrator (from 2007 to 2012) for UBS AM—Americas region. Ms. Yu is a vice president of 13 investment companies (consisting of 72 portfolios) for which UBS AM 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.

*  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.

***  This person's business address is 787 Seventh Avenue, New York, New York 10019.

392

Trustees

Richard Q. Armstrong
Chairman

Alan S. Bernikow

Richard R. Burt

Meyer Feldberg

Bernard H. Garil

Heather R. Higgins

Principal Officers

Mark E. Carver
President

Mark F. Kemper
Vice President and Secretary

Thomas Disbrow
Vice President and Treasurer

Investment Manager and
Administrator

UBS Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028

Principal Underwriter

UBS 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 Portfolios unless accompanied or preceded by an effective prospectus.

©UBS 2017. All rights reserved.
UBS Asset Management (Americas) Inc.

PRESORTED
STANDARD
U.S. POSTAGE
PAID
COMPUTERSHARE

UBS Asset Management (Americas) Inc.

1285 Avenue of the Americas

New York, NY 10019-6028

S003

PACE^® Government Money Market Investments

Annual Report  | July 31, 2017

PACE Government Money Market Investments

Performance

The seven-day current yield for the Fund as of July 31, 2017 was 0.46% (after fee waivers/expense reimbursements).¹ For more information on the Fund's performance, refer to "Yields and characteristics at a glance" on page 5. 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.

Advisor's Comments

In December 2016, the US Federal Reserve Board (the "Fed") modestly raised the federal funds rate from a low range between 0.25% and 0.50% to a range between 0.50% and 0.75%. The federal funds rate or the "fed funds rate," is the rate US banks charge one another for funds they borrow on an overnight basis. The Fed again raised rates in March and June 2017. At the end of the reporting period the fed fund rates was in a range between 1.00% and 1.25%. While the yields on a wide range of short-term investments moved higher over the period, yields still remain low by historical comparison. As a result, the Portfolio's yield remained low during the reporting period.

PACE Government
Money Market
Investments

Investment Advisor:

UBS 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 issuers. Security selection is based on the assessment of relative values and changes in market and economic conditions.

1

PACE Government Money Market Investments

We tactically adjusted the Portfolio's weighted average maturity ("WAM") throughout the 12-month review period. When the reporting period began, the Portfolio had a WAM of 32 days. This was increased to 40 days at the end of the reporting period.

A number of adjustments were made to the Portfolio's sector and issuer positioning during the 12-month period. We increased the Portfolio's exposure to US government and agency obligations and reduced its allocation to repurchase agreements. (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.)

Sincerely,

Mark E. Carver President PACE Select Advisors Trust Managing Director UBS Asset Management (Americas) Inc.	Robert Sabatino Portfolio Manager, PACE Government Money Market Investments Managing Director, UBS Asset Management (Americas) Inc.

2

PACE Government Money Market Investments

Understanding your Portfolio's expenses (unaudited)

As a shareholder of the Portfolio, you incur two types of costs: (1) on-going 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, 2017 to July 31, 2017.

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 "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 your 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.

3

PACE Government 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, 2017		Ending account value July 31, 2017		Expenses paid during period1 02/01/17 to 07/31/17		Expense ratio during the period
Actual	$	1,000.00	$	1,001.10	$	2.98		0.60	%
Hypothetical (5% annual return before expenses)		1,000.00		1,021.82		3.01		0.60

¹  Expenses are equal to the Portfolio's 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).

4

PACE Government Money Market Investments

Yields and characteristics at a glance—July 31, 2017
(unaudited)

Yields and characteristics
Seven-day current yield after fee waivers and/or expense reimbursements1	0.46	%
Seven-day effective yield after fee waivers and/or expense reimbursements1	0.46
Seven-day current yield before fee waivers and/or expense reimbursements1	0.15
Seven-day effective yield before fee waivers and/or expense reimbursements1	0.15
Weighted average maturity2	40 days
Portfolio composition3
US government and agency obligations	76.3	%
Repurchase agreements	24.1
Other assets less liabilities	(0.4	)
Total	100.0	%

You could lose money by investing in PACE Government Money Market Investments. Although the portfolio seeks to preserve the value of your investment at $1.00 per share, the portfolio cannot guarantee it will do so. An investment in PACE Government Money Market Investments is not insured or guaranteed by the Federal Deposit Insurance Corporation ("FDIC") or any other government agency. PACE Government Money Market Investments' sponsor has no legal obligation to provide financial support to PACE Government Money Market Investments, and you should not expect that the portfolio's sponsor will provide financial support to PACE Government Money Market Investments at any time.

Not FDIC insured. May lose value. No bank guarantee.

¹  Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted.

²  The Portfolio is actively managed and its weighted average maturity will differ over time.

³  Weightings represent percentages of the Portfolio's net assets as of the date indicated. The Portfolio is actively managed and its composition will vary over time.

5

PACE Government Money Market Investments

Portfolio of investments—July 31, 2017

	Face Amount		Value
US government and agency obligations—76.29%
Federal Farm Credit Bank
0.770%, due 10/27/171	$	1,000,000	$	998,139
1.180%, due 09/02/172		1,000,000		1,000,940
1.203%, due 08/26/172		2,000,000		2,000,000
1.214%, due 08/21/172		1,000,000		1,000,037
1.279%, due 08/08/172		2,000,000		1,999,835
1.324%, due 08/29/172		3,000,000		3,000,000
Federal Home Loan Bank
0.630%, due 08/03/171		1,000,000		999,965
0.750%, due 10/18/171		5,000,000		4,991,875
0.800%, due 08/09/172		2,000,000		2,000,101
0.910%, due 08/15/171		2,000,000		1,999,292
0.935%, due 08/11/171		2,000,000		1,999,481
0.950%, due 08/23/171		7,000,000		6,995,936
0.960%, due 09/05/171		2,000,000		1,998,133
0.970%, due 09/11/171		5,000,000		4,994,476
0.970%, due 11/13/171		1,000,000		997,198
0.975%, due 10/25/171		3,000,000		2,993,094
0.995%, due 11/01/171		5,000,000		4,987,286
1.010%, due 08/04/171		4,000,000		3,999,663
1.019%, due 11/03/171		1,000,000		997,389
1.020%, due 08/23/171		5,000,000		4,996,883
1.021%, due 12/07/171		2,000,000		1,992,889
1.025%, due 09/07/171		2,000,000		1,997,893
1.025%, due 09/20/171		2,000,000		1,997,153
1.025%, due 09/21/171		5,000,000		4,992,740
1.030%, due 09/18/171		2,000,000		1,997,253
1.040%, due 09/25/171		5,000,000		4,992,056
1.040%, due 09/26/171		5,000,000		4,991,911
1.046%, due 08/18/172		5,000,000		5,000,000
1.048%, due 09/15/171		5,000,000		4,993,450
1.050%, due 10/06/171		5,500,000		5,489,413

6

PACE Government Money Market Investments

Portfolio of investments—July 31, 2017

	Face Amount		Value
US government and agency obligations—(concluded)
1.055%, due 10/04/171	$	2,000,000	$	1,996,249
1.076%, due 09/26/172		800,000		799,940
1.080%, due 10/16/171		7,000,000		6,984,040
1.080%, due 10/27/171		1,000,000		997,390
1.080%, due 11/27/171		3,000,000		2,989,380
1.083%, due 10/25/171		2,000,000		1,994,886
1.102%, due 08/25/172		1,000,000		1,000,000
1.109%, due 08/14/172		2,000,000		2,000,000
1.125%, due 01/19/181		5,000,000		4,973,281
1.129%, due 08/21/172		2,000,000		2,000,000
1.129%, due 12/22/171		2,000,000		1,991,031
1.229%, due 10/10/172		3,500,000		3,499,965
1.243%, due 08/28/172		600,000		599,974
1.277%, due 08/06/172		750,000		750,114
Federal National Mortgage Association
1.275%, due 10/11/172		2,000,000		2,000,000
US Treasury Bill
0.892%, due 09/28/171		5,000,000		4,992,814
US Treasury Notes
0.750%, due 10/31/17		3,000,000		2,999,535
0.875%, due 08/15/17		5,000,000		5,000,037
1.354%, due 08/01/172		1,000,000		1,000,100
1.358%, due 08/01/172		2,300,000		2,300,223
1.374%, due 08/01/172		6,000,000		6,000,751
1.875%, due 08/31/17		2,000,000		2,001,929
Total US government and agency obligations (cost—$152,266,120)				152,266,120

7

PACE Government Money Market Investments

Portfolio of investments—July 31, 2017

	Face Amount		Value
Repurchase agreements—24.07%
Repurchase agreement dated 07/31/17 with Goldman Sachs & Co., 1.020% due 08/01/17, collateralized by $20,265,000 Federal Farm Credit Banks, zero coupon to 3.000% due 04/04/18 to 05/19/36, $1,475,000 Federal Home Loan Bank obligations, zero coupon due 09/22/17, $787,000 US Treasury Bond, 8.125% due 08/15/19 and $52,994,893 US Treasury Bonds STRIPs, zero coupon due 11/15/19 to 08/15/46; (value—$48,960,000); proceeds: $48,001,360	$	48,000,000	$	48,000,000
Repurchase agreement dated 07/31/17 with State Street Bank and Trust Co., 0.050% due 08/01/17, collateralized by $34,126 US Treasury Note, 2.000% due 08/31/21; (value—$34,784); proceeds: $34,000		34,000		34,000
Total repurchase agreements (cost—$48,034,000)				48,034,000
Total investments (cost—$200,300,120 which approximates cost for federal income tax purposes)—100.36%				200,300,120
Liabilities in excess of other assets—(0.36)%				(714,761	)
Net assets—100.00%			$	199,585,359

8

PACE Government Money Market Investments

Portfolio of investments—July 31, 2017

Fair valuation summary

The following is a summary of the fair valuations according to the inputs used as of July 31, 2017 in valuing the Portfolio's investments. In the event a Portfolio holds investments for which fair value is measured using the NAV per share practical expedient (or its equivalent), a separate column will be added to the fair value hierarchy table; this is intended to permit reconciliation to the amounts presented in the Portfolio of investments:

Description	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	$	—	$	152,266,120	$	—	$	152,266,120
Repurchase agreements		—		48,034,000		—		48,034,000
Total	$	—	$	200,300,120	$	—	$	200,300,120

At July 31, 2017, there were no transfers between Level 1 and Level 2

Portfolio footnotes

¹  Rate shown is the discount rate at the date of purchase unless otherwise noted.

²  Variable or floating rate security. The interest rate shown is the current rate at the period end and changes periodically.

Portfolio acronym

STRIP  Separate Trading of Registered Interest and Principal of Securities

See accompanying notes to financial statements
9

PACE Government Money Market Investments

Statement of assets and liabilities—July 31, 2017

Assets:
Investments, at value (cost—$152,266,120)	$	152,266,120
Repurchase agreements, at value (cost—$48,034,000)		48,034,000
Cash		866
Receivable for shares of beneficial interest sold		159,161
Receivable for interest		61,583
Other assets		15,800
Total assets		200,537,530
Liabilities:
Payable to custodian		5,906
Payable for shares of beneficial interest repurchased		360,422
Payable to affiliate		6,143
Dividends payable to shareholders		35,142
Accrued expenses and other liabilities		544,558
Total liabilities		952,171
Net assets:
Beneficial interest shares of $0.001 par value (unlimited amount authorized)	$	199,587,063
Accumulated net realized loss		(1,704	)
Net assets	$	199,585,359
Shares outstanding		199,585,861
Net asset value per share	$	1.00

See accompanying notes to financial statements
10

PACE Government Money Market Investments

Statement of operations

	For the year ended July 31, 2017
Investment income:
Interest	$	1,227,280
Expenses:
Investment management and administration fees		668,599
Transfer agency and related services fees		793,977
Professional fees		122,111
Reports and notices to shareholders		117,918
State registration fees		30,646
Trustees' fees		26,830
Custody and accounting fees		17,120
Insurance expense		4,575
Other expenses		35,295
		1,817,071
Fee waivers and/or expense reimbursements by investment manager and administrator		(817,609	)
Net expenses		999,462
Net investment income		227,818
Net realized loss		(1,112	)
Net increase in net assets resulting from operations	$	226,706

See accompanying notes to financial statements
11

PACE Government Money Market Investments

Statement of changes in net assets

	For the years ended July 31,
	2017			2016
From operations:
Net investment income	$	227,818		$	19,842
Net realized gain (loss)		(1,112	)		3,848
Net increase in net assets resulting from operations		226,706			23,690
Dividends and distributions to shareholders from:
Net investment income		(227,818	)		(19,842	)
Net realized gains		—			(5,106	)
		(227,818	)		(24,948	)
Net increase in net assets from beneficial interest transactions		16,609,926			14,474,686
Net increase in net assets		16,608,814			14,473,428
Net assets:
Beginning of year		182,976,545			168,503,117
End of year	$	199,585,359		$	182,976,545
Accumulated undistributed net investment income	$	—		$	—

See accompanying notes to financial statements
12

PACE Government Money Market Investments

Financial highlights

Selected financial data throughout each year is presented below:

Class P

	Years ended July 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.001			0.0001			0.0001			0.0001			0.0001
Net realized gains (losses)		(0.000	)1		0.0001			—			0.0001			—
Net increase from operations		0.001			0.0001			0.0001			0.0001			0.0001
Dividends from net investment income		(0.001	)		(0.000	)1		(0.000	)1		(0.000	)1		(0.000	)1
Distributions from net realized gains		—			(0.000	)1		—			(0.000	)1		—
Total dividends and distributions		(0.001	)		(0.000	)1		(0.000	)1		(0.000	)1		(0.000	)1
Net asset value, end of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return2		0.11	%		0.01	%		0.01	%		0.01	%3		0.01	%
Ratios to average net assets:
Expenses before fee waivers and/or expense reimbursements		0.95	%		0.96	%		0.93	%		0.91	%		0.88	%
Expenses after fee waivers and/or expense reimbursements		0.52	%		0.26	%		0.14	%		0.14	%		0.19	%
Net investment income		0.12	%		0.01	%		0.01	%		0.01	%		0.01	%
Supplemental data:
Net assets, end of year (000's)	$	199,585		$	182,977		$	168,503		$	212,025		$	309,842

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.

³  In August 2013, UBS AM made a voluntary cash payment of $2,340 to the Portfolio in order to address a differential between the number of shares outstanding and the Portfolio's net assets. The differential was attributable to historical embedded capital losses that were experienced by the Portfolio over several years prior to credit crisis of 2008. Payment from investment advisor had no impact on the Portfolio's total investment return and represents less than $0.0005 per share.

See accompanying notes to financial statements
13

PACE Government Money Market Investments

Notes to financial statements

Organization and significant accounting policies

PACE Government Money Market Investments (the "Portfolio") is registered with the US Securities and Exchange Commission ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified series of PACE Select Advisors Trust (the "Trust"), an open-end management investment company 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 series available for investment, each having its own investment objectives and policies. The financial statements for the other series of the Trust are not included herein. Shares of the Portfolio currently are available only to participants in the PACE^SM Select Advisors Program and the PACE^SM Multi Advisor Program.

UBS Asset Management (Americas) Inc. ("UBS AM") serves as the investment manager, investment advisor and administrator for the Portfolio. UBS AM is an indirect asset management subsidiary of UBS Group AG. UBS Group AG is an internationally diversified organization with headquarters in Zurich, Switzerland. UBS Group AG operates in many areas of the financial services industry.

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 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 any prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

14

PACE Government Money Market Investments

Notes to financial statements

The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") is the exclusive reference of authoritative US generally accepted accounting principles ("US 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 US GAAP for SEC registrants. The Portfolio's financial statements are prepared in accordance with US GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

In August 2014, the FASB issued Accounting Standard Update No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"). The update provides guidance about management's responsibility to evaluate whether there is substantial doubt about the entity's ability to continue as a going concern and to provide related footnote disclosure. Management has evaluated relevant conditions and events, which are known and reasonably knowable, and has determined that there are no conditions and events that raise substantial doubt about the Fund's ability to continue as a going concern.

In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The amendments to Regulation S-X took effect on August 1, 2017. At this time, management is assessing the anticipated impact of these regulatory developments.

15

PACE Government Money Market Investments

Notes to financial statements

The following is a summary of significant accounting policies:

Valuation of investments—Under Rule 2a-7 under the 1940 Act, the Portfolio has adopted a policy to operate as a "government money market fund". Under Rule 2a-7 under the 1940 Act, a "government money market fund" invests 99.5% or more of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash and/or government securities). As a "government money market fund", the Portfolio values its investments at amortized cost unless the Portfolio's Board of Trustees (the "Board") determines that this does not represent fair value. 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.

US GAAP requires disclosure regarding 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.

A fair value hierarchy table has been included near the end of the Portfolio's Portfolio of investments.

Constant net asset value per share—The Portfolio attempts to maintain a stable net asset value of $1.00 per share. There is no assurance, however, that the Portfolio will be able 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. The Portfolio has adopted a policy to

16

PACE Government Money Market Investments

Notes to financial statements

operate as a "government money market fund" and as such the Portfolio is permitted to seek to maintain a stable price per share.

Liquidity fee and/or redemption gates—By operating as a "government money market fund", the Portfolio is exempt from requirements that permit the imposition of a liquidity fee and/or temporary redemption gates. While the Board may elect to subject the Portfolio to liquidity fee and gate requirements in the future, the Board has not elected to do so at this time.

Repurchase agreements—The Portfolio 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 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 in an effort to ensure that the value, including accrued interest, is at least equal to the repurchase price.

Repurchase agreements carry certain risks not associated with direct investments in securities, including a possible decline in the market value of the underlying obligations. If their value becomes less than the repurchase price, plus any agreed-upon additional amount, the counterparty must provide additional collateral so that the collateral is at least equal to the repurchase price plus any agreed-upon additional amount. The difference between the total amount to be received upon repurchase of the obligations and the price that was paid by a Portfolio upon acquisition is accrued as interest and included in its net investment income. 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 secured by obligations that are not eligible for direct investment under Rule 2a-7 of the 1940 Act or a Portfolio's investment strategies and limitations may require the Portfolio to promptly dispose of such collateral if the seller or guarantor becomes

17

PACE Government Money Market Investments

Notes to financial statements

insolvent. 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 intends to enter into repurchase agreements only in transactions with counterparties believed by UBS AM to present minimal credit risks.

The Portfolio may participate in joint repurchase agreement transactions with other Portfolios managed, advised or subadvised by UBS 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 potentially exposed to 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.

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 US federal income tax regulations, which may differ from US 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

18

PACE Government Money Market Investments

Notes to financial statements

economic and political developments particular to a specific industry, country, state or region.

Investment management and administration fees and other transactions with affiliates

The Portfolio's Board has approved an investment management and administration contract ("Management Contract") with UBS AM. In accordance with the Management Contract, the Portfolio pays UBS 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, 2017, UBS AM is owed $6,143 from the Portfolio, representing investment management and administration fees net of fee waivers/expense reimbursements.

UBS 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 borrowing costs and interest expense, if any) through November 30, 2017 at a level not to exceed 0.60% of daily average net assets. For the year ended July 31, 2017, UBS AM waived $670,937 in investment management and administration fees. The Portfolio will make a payment to UBS 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.

At July 31, 2017, the Portfolio had remaining fee waivers/expense reimbursements subject to repayment to UBS AM and respective dates of expiration as follows:

Fee waivers/expense reimbursements subject to repayment		Expires July 31, 2018		Expires July 31, 2019		Expires July 31, 2020
$	2,063,695	$	685,972	$	706,786	$	670,937

No amount was repaid back to UBS AM in the past year.

19

PACE Government Money Market Investments

Notes to financial statements

UBS 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 AM would continue to voluntarily waive an additional portion of its fees and/or reimburse expenses. This management fee waiver will not be subject to future recoupment. For the year ended July 31, 2017, UBS AM voluntarily waived and/or reimbursed expenses of $35,928 for that purpose.

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, 2017, the Portfolio purchased and sold certain securities (e.g., fixed income securities) in principal trades with Morgan Stanley, having an aggregate value of $14,966,961. 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 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 and related services fees

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.

20

PACE Government Money Market Investments

Notes to financial statements

Effective July 1, 2013, UBS Financial Services Inc. voluntarily agreed to waive a portion of the fee that it would otherwise have received from BNY Mellon with respect to PACE Government Money Market Investments so that BNY Mellon would correspondingly reduce the fees it would have charged to that Portfolio. Given that UBS AM has voluntarily undertaken to reduce its fees and/or reimburse expenses to keep the Portfolio's yield at or above a certain level, and that such amount exceeds the reduction in BNY Mellon's fees, the net effect of BNY Mellon's pass through of the waiver by UBS Financial Services Inc. is to partially reduce the amount that UBS AM would have otherwise voluntarily waived/reimbursed. For the year ended July 31, 2017, the amount of the reduction in transfer agency and related services fees charged by BNY Mellon to the Portfolio was $110,744, which reflected an equal amount of compensation that was voluntarily waived by UBS Financial Services Inc. Voluntary fee waiver/expense reimbursement arrangements may end at any time.

For the year ended July 31, 2017, UBS Financial Services Inc. received from BNY Mellon, not the Portfolio, $286,598 of the total transfer agency and related services fees paid by the Portfolio to BNY Mellon.

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:

	Years ended July 31,
	2017			2016
Shares sold		279,769,071			256,831,799
Shares repurchased		(263,332,595	)		(242,373,374	)
Dividends reinvested		173,450			16,261
Net increase in shares outstanding		16,609,926			14,474,686

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

21

PACE Government Money Market Investments

Notes to financial statements

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.

The tax character of distributions paid to shareholders by the Portfolio during the fiscal years ended July 31, 2017 and July 31, 2016 was ordinary income.

At July 31, 2017, the components of accumulated earnings on a tax basis were undistributed ordinary income of $34,550.

There were no reclassifications arising from permanent "book/tax" differences for the year ended July 31, 2017.

Under the Regulated Investment Company Modernization Act of 2010 (The "Act"), net capital losses recognized by the portfolio after December 22, 2010, may be carried forward indefinitely, and retain their character as short-term and/or long-term losses. The Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. As of July 31, 2017, the Portfolio had post-enactment short-term capital loss carryforwards of $1,112.

ASC 740-10 "Income-Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken. The Portfolio has analyzed and concluded as of July 31, 2017, that there are no significant uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. 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, 2017, the Portfolio did not incur any interest or penalties.

Each of the tax years in the four year period ended July 31, 2017, remains subject to examination by the Internal Revenue Service and state taxing authorities.

22

PACE Government 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 statements of assets and liabilities, including the portfolio of investments, of PACE Government Money Market Investments (one of the series comprising PACE Select Advisors Trust) (the "Portfolio") as of July 31, 2017, 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, 2017, by correspondence with the custodian and others. 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

23

PACE Government Money Market Investments

Report of Ernst & Young LLP, independent
registered public accounting firm

PACE Government Money Market Investments at July 31, 2017, 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 U.S. generally accepted accounting principles.

New York, New York
September 29, 2017

24

PACE Government 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/usmoneymarketfunds. 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/ubsam-proxy, or on the EDGAR Database on SEC's Web site (http://www.sec.gov).

25

PACE Government Money Market Investments

Board approval of investment managment and administration agreement (unaudited)

Background—At a meeting of the board of PACE Select Advisors Trust (the "Trust") on July 18-19, 2017, the members of the board, including the trustees who are not "interested persons," as defined in the Investment Company Act of 1940, as amended, of the Trust (the "Independent Trustees"), considered and approved the continuance of the investment management and administration agreement (the "Investment Management and Administration Agreement") between UBS Asset Management (Americas) Inc. ("UBS AM") and the Trust, on behalf of PACE Government Money Market Investments (the "Portfolio"). In preparing for the meeting, the Independent Trustees had requested and received extensive information from UBS AM to assist them, including information about UBS AM, as well as the management, administrative and distribution arrangements for the Portfolio. The board reviewed and discussed with management the materials initially provided by UBS AM 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 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 the 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 AM. The board also considered the nature, extent and quality of administrative, distribution and shareholder services performed by UBS 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

26

PACE Government Money Market Investments

Board approval of investment managment and administration agreement (unaudited)

regular meetings throughout the year regarding the services rendered by UBS AM concerning the management of the Portfolio's affairs and UBS AM's role in coordinating and overseeing providers of other services to the Portfolio. The board's evaluation of the services provided by UBS 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 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 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.

The board had available to it the qualifications, backgrounds and responsibilities of the senior personnel at UBS AM responsible for the Portfolio and had previously met with and received information regarding the person primarily responsible for the day-to-day management of the Portfolio. The board recognized that the Portfolio's senior personnel at UBS AM report to the board regularly, and that at each regular meeting the board receives a detailed report from UBS AM on the Portfolio's performance. The board also considered, based on its knowledge of UBS AM and its affiliates, the financial resources available to UBS AM and its parent organization, UBS Group AG. In that regard, the board received extensive financial information regarding UBS AM and noted that it was a wholly owned, indirect subsidiary of one of the largest financial services firms in the world. It also was noted that UBS AM had approximately $146 billion in assets under management as of March 31, 2017 and was part of the UBS Asset Management Division, which had approximately $695 billion in assets under management worldwide as of March 31, 2017. The board also was cognizant of, and considered, the regulatory and litigation actions and investigations occurring in the past few years involving UBS Group AG, UBS 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)

27

PACE Government Money Market Investments

Board approval of investment managment and administration agreement (unaudited)

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 AM in light of the nature, extent and quality of the services provided by UBS AM pursuant to the Investment Management and Administration Agreement. The board also reviewed and considered the fee waiver and/or expense reimbursement arrangement for the Portfolio and considered the actual fee rate (after taking any waivers and reimbursements into account) (the "Actual Management Fee") payable by the Portfolio. The board considered that UBS AM had entered into a fee waiver and/or expense reimbursement agreement with the Portfolio under which UBS 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 30, 2017 (excluding certain miscellaneous items) would not exceed a specified limit. The board also considered that the Portfolio had agreed to repay UBS 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 Broadridge, an independent provider of investment company data (the "Expense Group").

In connection with its consideration of the Portfolio's management fees, the board also received information on UBS AM with 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

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fund, and, therefore, were not totally comparable. The board also received information on fees charged to other mutual funds managed by UBS AM.

The comparative Broadridge information showed that the Portfolio's Contractual Management Fee and its Actual Management Fee, which was zero, were below the median and its total expenses were above the median in the Portfolio's Expense Group (with the Portfolio's total expenses the highest in the Expense Group) for the comparison periods utilized in the Broadridge report. (Below median fees or expenses represent fees or expenses that are lower relative to the median, and above median fees or expenses represent fees or expenses that are higher relative to the median of the funds in the Expense Group.) Management explained that the Portfolio's higher total expenses relative to its Expense Group were due to yield floor waivers applied to varying degrees over different time horizons for all of the funds in the Expense Group, which made it difficult to assess true comparisons. Management stated that the net prospectus expense ratio, which represents a fund's total expenses net of contractual waivers (as they appear in the fund's prospectus) but does not include any voluntary expense waivers (e.g., yield floor waivers), provides a better method of comparison for this year. Management noted that the Portfolio's net prospectus expense ratio was below the median in the Expense Group.

In light of the foregoing, the board determined that the proposed contractual management fee payable by the Portfolio to UBS 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 Broadridge over the one-, three-, five-, ten-year and since inception periods ended April 30, 2017, and (b) annualized performance information for each year in the ten-year period ended April 30, 2017. Although the board

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Board approval of investment managment and administration agreement (unaudited)

received information for the ten-year and since inception periods, in its analysis, it generally placed greater emphasis on the one-, three- and five-year periods. The board was provided with a description of the methodology Broadridge 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 performance.

The comparative Broadridge information showed that the Portfolio's performance was at or above the median for the one-, three-, five- and ten-year periods and since inception. (Below median performance represents performance that is worse relative to the median, and above median performance represents performance that is better relative to the median.) The board noted that the Portfolio's above median performance included periods during which the Portfolio was managed as a prime money market fund, in contrast to the government money market funds in the Portfolio's Performance Universe. Based on its review of the Portfolio, the board concluded that the Portfolio's investment performance was acceptable.

Advisor profitability—The board received and considered a profitability analysis of UBS 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 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 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. However, the board also noted that to the extent the Portfolio's assets increase over time,

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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.

In light of UBS AM's profitability data, the Actual Management Fee, the Contractual Management Fee and the current assets of the Portfolio, the board believed that UBS AM's sharing of potential and current economies of scale with the Portfolio was acceptable.

Other benefits to UBS AM—The board considered other benefits received by UBS AM and its affiliates as a result of its relationship with the Portfolio, including the opportunity to offer 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 AM's ongoing commitment to the Portfolio, the profits and other ancillary benefits that UBS AM and its affiliates received were considered reasonable.

In light of all of the foregoing, the board, including a majority of the Independent Trustees, 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 AM were present.

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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.

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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
Meyer Feldberg2; 75 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 2005). Professor Feldberg also served 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 promoted interaction with other cities around the world) (2007-2014). Prior to 2004, he was Dean and Professor of Management and Ethics of the Graduate School of Business at Columbia University (since 1989). From 1992 to 2016, Professor Feldberg was a director of Macy's, Inc. (operator of department stores). From 1997 to 2017, Professor Feldberg was a director of Revlon, Inc. (cosmetics).

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Supplemental information (unaudited)

Name, address, and age	Number of portfolios in fund complex overseen by Trustee	Other directorships held by Trustee
Meyer Feldberg2; 75 Morgan Stanley 1585 Broadway 36th Floor New York, NY 10036	Professor Feldberg is a director or trustee of 15 investment companies (consisting of 55 portfolios) for which UBS Asset Management (Americas) Inc. ("UBS AM") or one of its affiliates serves as investment advisor or manager.	Professor Feldberg is also a director of the New York City Ballet.

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Supplemental information (unaudited)

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
Richard Q. Armstrong; 82 c/o Keith Weller Assistant Fund Secretary UBS 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 1991 and principal occupation since 1995). Mr. Armstrong was president or chairman of a number of international packaged goods companies (responsible for such brands as Canada Dry, Dr. Pepper, Adirondack Beverages and Moët Hennessy, among many others) (from 1982 until 1995).
Alan S. Bernikow; 76 207 Benedict Ave. Staten Island, NY 10314	Trustee	Since 2005	Mr. Bernikow is retired. Previously, he was deputy chief executive officer at Deloitte & Touche (international accounting and consulting firm). From 2003 to March 2017, Mr. Bernikow was also a director of Destination XL Group, Inc. (menswear) (and served as a member of its nominating and corporate governance committee).
Richard R. Burt; 70 McLarty Associates 900 17th Street Washington, D.C. 20006	Trustee	Since 2001	Mr. Burt is a managing director to McLarty Associates (a consulting firm) (since 2007). He was chairman of IEP Advisors (international investments and consulting firm) until 2009. Prior to 2007, he was chairman of Diligence Inc. (international information and risk management firm).

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Supplemental information (unaudited)

Name, address, and age	Number of portfolios in fund complex overseen by Trustee	Other directorships held by Trustee
Richard Q. Armstrong; 82 c/o Keith Weller Assistant Fund Secretary UBS Asset Management (Americas) Inc. 1285 Avenue of the Americas New York, NY 10019	Mr. Armstrong is a director or trustee of 10 investment companies (consisting of 50 portfolios) for which UBS AM serves as investment advisor or manager.		None
Alan S. Bernikow; 76 207 Benedict Ave. Staten Island, NY 10314	Mr. Bernikow is a director or trustee of 10 investment companies (consisting of 50 portfolios) for which UBS AM 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 the compensation committee), the lead director of Mack-Cali Realty Corporation (real estate investment trust) (and serves as the chair of its audit committee). He is also the lead director of FCB Financial Holdings, Inc. (banking) (and serves as the chair of its audit committee and member of the nominating and governance committee and compensation committee).
Richard R. Burt; 70 McLarty Associates 900 17th Street Washington, D.C. 20006	Mr. Burt is a director or trustee of 10 investment companies (consisting of 50 portfolios) for which UBS AM serves as investment advisor or manager.	Mr. Burt is also a director of The Central Europe, Russia and Turkey Fund, Inc., The European Equity Fund, Inc. and The New Germany Fund, Inc. (and serves as a member of each such fund's audit, nominating and governance committee).

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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
Bernard H. Garil; 77 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).
Heather R. Higgins; 57 c/o Keith A. Weller Assistant Fund Secretary UBS Asset Management (Americas) Inc. 1285 Avenue of the Americas New York, NY 10019	Trustee	Since 2005	Ms. Higgins is the president and director of The Randolph Foundation (charitable foundation) (since 1991). Ms. Higgins also serves (or has served) on the boards of several non-profit charitable groups, including the Independent Women's Forum (chairman) and the Philanthropy Roundtable (vice chairman). She also serves on the board of the Hoover Institution (from 2001 to 2007 and since 2009).

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Supplemental information (unaudited)

Name, address, and age	Number of portfolios in fund complex overseen by Trustee	Other directorships held by Trustee
Bernard H. Garil; 77 6754 Casa Grande Way Delray Beach, FL 33446	Mr. Garil is a director or trustee of 10 investment companies (consisting of 50 portfolios) for which UBS AM serves as investment advisor or manager.	Mr. Garil is also a director of OFI Global 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; 57 c/o Keith A. Weller Assistant Fund Secretary UBS Asset Management (Americas) Inc. 1285 Avenue of the Americas New York, NY 10019	Ms. Higgins is a director or trustee of 10 investment companies (consisting of 50 portfolios) for which UBS AM serves as investment advisor or manager.		None

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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*; 52	Chief Compliance Officer	Since 2014	Mr. Allessie is a managing director (since 2015) (prior to which he was an executive director (from 2007 to 2015)) at UBS AM and UBS Asset Management (US) Inc. (collectively, "UBS AM—Americas region"). Mr. Allessie is head of compliance and operational risk control for the UBS Asset Management Division in the Americas with oversight for traditional and alternative investment businesses in Canada, the US and Cayman Islands. Prior to that he served as deputy general counsel of UBS AM—Americas region (from 2005 to 2014). Mr. Allessie is the chief compliance officer (prior to which he was interim chief compliance officer (from January to July 2014)) and had served as a vice president and assistant secretary (from 2005 to 2016) of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Rose Ann Bubloski*; 49	Vice President and Assistant Treasurer	Since 2011	Ms. Bubloski is a director (since 2012) (prior to which she was an associate director (from 2008 to 2012)) and senior manager of registered fund product control of UBS AM—Americas region. She is vice president and assistant treasurer of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.

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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*; 54	President	Since 2010	Mr. Carver is a managing director and head of product development and management for UBS 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). Mr. Carver is president of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Thomas Disbrow*; 51	Vice President and Treasurer	Since 2000 (Vice President) Since 2004 (Treasurer)	Mr. Disbrow is a managing director (since 2011) (prior to which he was an executive director (from 2007 to 2011)) and is global head of registered fund product control (since January 2016) (prior to which he was head of the North America fund treasury administration department of UBS AM—Americas region (from 2011-2015)). Mr. Disbrow is a vice president and treasurer and/or principal accounting officer of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.

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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**; 59	Vice President and Secretary	Since 2004	Mr. Kemper is a managing director and general counsel of UBS AM—Americas region (since 2006 and 2004 respectively). He has been secretary of UBS AM—Americas region (since 2004), and assistant secretary of UBS Asset Management Trust Company (since 1993). Mr. Kemper is vice president and secretary of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager. Mr. Kemper is employed by UBS Business Solutions US LLC (since January 2017).
Joanne M. Kilkeary*; 49	Vice President and Assistant Treasurer	Since 1999	Ms. Kilkeary is an executive director (since 2013) (prior to which she was a director) (from 2008 to 2013)) and a senior manager (since 2004) of registered fund product control of UBS AM—Americas region. Ms. Kilkeary is a vice president and assistant treasurer of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.

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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*; 46	Vice President and Assistant Secretary	Since 2005	Ms. Lee is an executive director with UBS Business Solutions US LLC (since January 2017) and also with UBS AM—Americas region (since 2010) (prior to which she was a director) (from 2005 to 2010)) and associate general counsel of UBS AM—Americas region (since 2005). Ms. Lee is a vice president and assistant secretary of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Mabel Lung***; 59	Vice President	Since May 2016	Ms. Lung is a managing director and global head of the Multi-Manager Solutions team of UBS AM-Americas region (since 2005). Ms. Lung is a vice president of one investment company (consisting of 15 portfolios) for which UBS AM serves as investment advisor or manager.

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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
William T. MacGregor*; 42	Vice President and Assistant Secretary	Since 2015	Mr. MacGregor is an executive director and deputy general counsel with UBS Business Solutions US LLC (since January 2017) and also with UBS AM—Americas region (since 2015). From June 2012 through July 2015, Mr. MacGregor was Senior Vice President, Secretary and Associate General Counsel of AXA Equitable Funds Management Group, LLC and from May 2008 through July 2015, Mr. MacGregor was Lead Director and Associate General Counsel of AXA Equitable Life Insurance Company. Mr. MacGregor is a vice president and assistant secretary of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Nancy D. Osborn*; 51	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 registered fund product control of UBS AM—Americas region (since 2006). Mrs. Osborn is a vice president and assistant treasurer of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.

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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
Robert Sabatino**; 44	Vice President	Since 2001	Mr. Sabatino is a managing director (since 2010) (prior to which he was an executive director) (from 2007 to 2010)), global head of liquidity portfolio management (since 2015), head of US taxable money markets (from 2009 to 2015), and portfolio manager of UBS AM—Americas region in the short duration fixed income group (since 2001). Mr. Sabatino is a vice president of four investment companies (consisting of 29 portfolios) for which UBS AM serves as investment advisor or manager.
Eric Sanders*; 51	Vice President and Assistant Secretary	Since 2005	Mr. Sanders is a director and associate general counsel with UBS Business Solutions US LLC (since January 2017) and also with UBS AM—Americas region (since 2005). Mr. Sanders is a vice president and assistant secretary of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Gina M. Toth***; 53	Vice President	Since May 2016	Ms. Toth is an executive director and portfolio manager in the Multi-Manager Solutions team of UBS AM-Americas region (since 2013). Prior to joining UBS AM-Americas region, Ms. Toth was a senior portfolio manager at Alliance Bernstein (from 1993 to 2012). Ms. Toth is a vice investment of one investment company (consisting of 15 portfolios) for which UBS AM serves as investment advisor or manager.

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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
David Walczak**; 34	Vice President	Since 2016	Mr. Walczak is an executive director (since January 2016), head of US taxable money markets (since July 2015) and portfolio manager of UBS AM—Americas region. Mr. Walczak is a vice president of five investment companies (consisting of 44 portfolios) for which UBS AM serves as investment advisor or manager.
Keith A. Weller*; 56	Vice President and Assistant Secretary	Since 2000	Mr. Weller is an executive director and senior associate general counsel with UBS Business Solutions US LLC (since January 2017) and also with UBS 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 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.
Mandy Yu*; 34	Vice President	Since 2013	Ms. Yu is an associate director (since 2015) (prior to which she was an authorized officer (from 2012 to 2015)) and tax compliance manager (since 2013) of registered fund product control of UBS AM—Americas region. She was a fund treasury manager (from 2012 to 2013) and a mutual fund administrator (from 2007 to 2012) for UBS AM—Americas region. Ms. Yu is a vice president of 13 investment companies (consisting of 72 portfolios) for which UBS AM serves as investment advisor or manager.

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Supplemental information (unaudited)

  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.

  *  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.

  ***  This person's business address is 787 Seventh Avenue, New York, New York 10019.

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48

Trustees

Richard Q. Armstrong
Chairman

Alan S. Bernikow

Richard R. Burt

Meyer Feldberg

Bernard H. Garil

Heather R. Higgins

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 Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028

Principal Underwriter

UBS 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.

© UBS 2017. All rights reserved.
UBS Asset Management (Americas), Inc.

PRESORTED
STANDARD
U.S. POSTAGE
PAID
COMPUTERSHARE

UBS Asset Management (Americas) Inc.

1285 Avenue of the Americas

New York, New York 10019-6028

S026

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, 2017 and July 31, 2016, the aggregate Ernst & Young LLP (EY) audit fees for professional services rendered to the registrant were approximately $956,102 and $956,709, 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, 2017 and July 31, 2016, the aggregate audit-related fees billed by EY 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 $42,826 and $44,150, respectively.

Fees included in the audit-related fees category are those associated with the reading and providing of comments on the 2017 and 2016 semiannual financial statements.

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, 2017 and July 31, 2016, the aggregate tax fees billed by EY for professional services rendered to the registrant were approximately $275,795 and $374,607, 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, 2017 and July 31, 2016, there were no fees billed by EY 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 September 14, 2016)” (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 services1 to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund’s independent auditors to UBS 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 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 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 has delegated its responsibility to pre-approve any such audit and permissible non-audit services not exceeding $100,000 (excluding reasonable out-of-pocket expenses) on an annual basis to the Chairperson. All such pre-approvals will be reported to the full Committee on a quarterly basis at the Committee’s next regularly scheduled meeting after the pre-approval. The Committee may not delegate to management its responsibility to pre-approve services to be performed by the independent auditor. Requests or applications to provide services that require specific pre-approval by the Committee or the Chairperson will be submitted by both the Fund’s independent auditors and the Fund’s Treasurer or other designated Fund officer and must include a joint statement as to whether, in their view, the request or application is consistent with SEC rules on auditor independence. 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 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 AM and any service providers controlling, controlled by or under common control with UBS 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, 2017 and July 31, 2016 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, 2017 and July 31, 2016 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, 2017 and July 31, 2016 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, 2017 and July 31, 2016 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, 2017 and July 31, 2016 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, 2017 and July 31, 2016 on behalf of the registrant’s service providers that relate directly to the operations and financial reporting of the registrant.

(f)For the fiscal year ended July 31, 2017, if greater than 50%, specify 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. According to E&Y, such amount was below 50%; therefore, disclosure item not applicable for this filing.

(g)For the fiscal years ended July 31, 2017 and July 31, 2016, the aggregate fees billed by EY of $378,621 and $785,804, 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:

	2017		2016
Covered Services	$	318,621	$	418,757
Non-Covered Services	60,000		367,047

(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 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.

(c)Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934, as amended, is attached hereto as Exhibit EX-99.IRANNOTICE.

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, 2017

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, 2017
By:	/s/ Joanne Kilkeary
	Joanne Kilkeary
	Vice President and Treasurer
Date:	October 10, 2017