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: 811-04919
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UBS Series Trust
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(Exact name of registrant as specified in charter)
51 West 52nd Street, New York, New York 10019-6114
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(Address of principal executive offices) (Zip code)
Mark F. Kemper, Esq.
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, NY 10019-6114
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, DC 20006-2401
Registrant's telephone number, including area code: 212-882 5000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO OMITTED] UBS Global Asset
Management
UBS SERIES TRUST
U.S. ALLOCATION PORTFOLIO
SEMIANNUAL REPORT
JUNE 30, 2005
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
August 15, 2005
DEAR CONTRACT OWNER,
We present you with the semiannual report for UBS Series Trust -- U.S.
Allocation Portfolio for the six months ended June 30, 2005.
PERFORMANCE
During the six months ended June 30, 2005, the Portfolio's Class H shares
returned 1.60%. Over the same timeframe, the Portfolio's benchmark, the U.S.
Allocation Fund Index (the "Index"),* returned 0.85%. (For returns over various
time periods, please refer to "Performance at a Glance" on page 5.)
AN INTERVIEW WITH LEAD PORTFOLIO MANAGER BRIAN SINGER
Q. IT HAS BEEN ROUGHLY A YEAR SINCE THE PORTFOLIO CHANGED ITS STRATEGY. WOULD
YOU RECAP THE REASONS FOR THE CHANGES AND THE IMPACT ON THE PORTFOLIO?
A. We now actively manage the Portfolio, strategically allocating and
rebalancing fund assets between stocks and bonds, instead of using the
quantitative Tactical Allocation Model, which was the driving force behind
the Portfolio prior to these changes. In addition, a team of portfolio
managers and analysts, led by one individual, now oversees the Portfolio,
which is more in line with UBS Global Asset Management's approach to
investment management. These changes have allowed us to better leverage the
experience of our management team and the extensive research it produces, as
well as our time-tested, proprietary risk management systems. The
Portfolio's contract owners have benefited from our disciplined application
of the price to intrinsic value approach to determining valuations and
return expectations for various asset classes, sectors, and securities, as
the Portfolio's Class H shares have outperformed the U.S. Allocation Fund
Index by 0.75% during the past six months. The bulk of this outperformance
came from individual security selection.
* An unmanaged index compiled by the Advisor, constructed as follows:
65% Russell 3000 Index (representing all capitalization stocks), 30% Lehman
Brothers US Aggregate Bond Index (representing US investment grade fixed
income securities) and 5% Merrill Lynch U.S. High Yield Cash Pay Constrained
Index (representing US high yield securities).
================================================================================
UBS SERIES TRUST--U.S. ALLOCATION PORTFOLIO
INVESTMENT GOAL:
Total return, consisting of long-term capital appreciation and current income.
PORTFOLIO MANAGERS:
Portfolio Management Team, including Brian Singer UBS Global Asset Management
(US) Inc.
COMMENCEMENT:
Class H--September 28, 1998
Class I--January 5, 1999
DIVIDEND PAYMENTS:
Annually
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1
UBS SERIES TRUST--U.S. ALLOCATION PORTFOLIO
Q. HOW WOULD YOU DESCRIBE THE ECONOMIC ENVIRONMENT DURING THE REPORTING PERIOD?
A. The US economy faced a number of challenges during the reporting period,
including high oil prices, rising short term interest rates, a mixed job
market and challenging geopolitical events. Despite these issues, the US
economy proved to be surprisingly resilient. Following a solid 3.8% gain in
the fourth quarter of 2004, gross domestic product (GDP) growth remained at
3.8% in the first quarter of 2005. Advance estimates for second quarter GDP
growth were 3.4%, a slight decline.
Q. HOW DID THE FEDERAL RESERVE BOARD (THE "FED") REACT IN THIS ECONOMIC
ENVIRONMENT?
A. As expected, the Fed continued to raise interest rates in an attempt to
temper growth and ward off a potential increase in inflation. After five
rate hikes from June 2004 through December 2004, the Fed again increased the
federal funds rate four additional times during the reporting period. The
Fed's nine rate hikes have driven the federal funds rate from 1.00% to
3.25%.
Coinciding with its last rate hike in June 2005, the Federal Open Market
Committee (FOMC) comments read, "Although energy prices have risen further,
the expansion remains firm and labor market conditions continue to improve
gradually. Pressures on inflation have stayed elevated, but longer-term
inflation expectations remain well contained." The FOMC statement also
indicated it expected to continue raising rates at a "measured" pace, which
it did by raising rates another 0.25% to 3.50% on August 9, after the period
closed.
Q: HOW DID YOU ALLOCATE THE PORTFOLIO OVER THE REPORTING PERIOD? A: As the
reporting period began, 68% of the Portfolio was held in stocks versus a 65%
stock allocation to the U.S. Allocation Fund Index. This was consistent with
our estimates of intrinsic value and our belief that economic conditions
were favorable for equities. At the same time, our analysis indicated that
investment grade bonds were somewhat overvalued, and high yield bonds were
very overvalued. As a result, we held 30% of the Portfolio in investment
grade securities and 2% in high yield bonds as a percentage of net assets.
This compared with a 30% and 5% weight for the Index in investment grade
securities and high yield bonds, respectively.
In early May 2005, we slightly adjusted the Portfolio's bond exposure by
lowering its investment grade allocation from 30% to 29%, and we used the
proceeds to increase its high yield exposure from 2% to 3%. Given the
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2
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
presumed "soft patch" in the economy and expectations for credit downgrades
of General Motors and Ford, the high yield market had experienced a period
of weakness. We felt this presented us with an opportunity to increase the
Portfolio's high yield exposure when the sector appeared relatively more
attractive than investment grade bonds. A final shift in the Portfolio
occurred in June, as we lowered both its stock and investment grade
allocations, and the proceeds were used to purchase short-term money market
instruments, or cash. According to our valuation models, equities were
trading at intrinsic value, while investment grade bonds substantially
increased the degree to which they were overvalued. Given this dynamic, we
no longer felt it appropriate to hold an overweighted position to equities
relative to the Index, while a further underweight to investment grade fixed
income was warranted. At the end of the reporting period, 64% of the
Portfolio was allocated to stocks, 25% to investment grade securities, 2% to
high yield bonds and 9% to cash.*
* As a percentage of net assets.
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3
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
We thank you for your continued support and welcome any comments or questions
you may have. For more information on the UBS family of funds*, including more
current performance, please contact your financial advisor, or visit us at
www.ubs.com/globalam-us.
/s/ W. DOUGLAS BECK
- -------------------
W. DOUGLAS BECK, CFA
PRESIDENT
UBS Series Trust--U.S. Allocation Portfolio
EXECUTIVE DIRECTOR
UBS Global Asset Management (US) Inc.
/s/ BRIAN SINGER
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BRIAN SINGER
LEAD PORTFOLIO MANAGER
UBS Series Trust--U.S. Allocation Portfolio
REGIONAL CHIEF INVESTMENT OFFICER
UBS Global Asset Management (US) Inc.
This letter is intended to assist shareholders in understanding how the
Portfolio performed during the six months ended June 30, 2005. The views and
opinions in the letter were current as of August 15, 2005. They are not
guarantees of performance or investment results and should not be taken as
investment advice. Investment decisions reflect a variety of factors, and we
reserve the right to change our views about individual securities, sectors and
markets at any time. As a result, the views expressed should not be relied upon
as a forecast of the Fund's future investment intent. We encourage you to
consult your financial advisor regarding your personal investment program.
* Mutual funds are sold by prospectus only. You should read it carefully and
consider a fund's investment objectives, risks, charges, expenses and other
important information contained in the prospectus before investing. Prospectuses
for most of our funds can be obtained from your financial advisor, by calling
UBS Funds at 800-647 1568 or by visiting our Web site at
www.ubs.com/globalam-us.
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4
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PERFORMANCE AT A GLANCE (UNAUDITED)
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 6/30/05
SINCE
6 MONTHS 1 YEAR 3 YEARS 5 YEARS INCEPTION(o)
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Class H 1.60% 10.43% 8.65% (1.07)% 5.24%
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Class I 1.48% 10.15% 8.36% (1.32)% 1.69%
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S&P 500 Index (0.81)% 6.32% 8.28% (2.37)% 3.45%
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UBS US Allocation Fund Index* 0.85% 7.92% 8.60% (2.20)% 3.58%
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o Since inception returns for the Portfolio are calculated as of the
commencement of issuance on September 28, 1998 for Class H shares and January
5, 1999 for Class I shares. Since inception returns for S&P 500 Index and UBS
US Allocation Fund Index are calculated as of September 28, 1998, which is
the inception date of the oldest share Class (Class H).
* An unmanaged index compiled by the Advisor, constructed as follows: 65%
Russell 3000 Index; 30% Lehman U.S. Aggregate Bond Index and 5% Merrill Lynch
High Yield Cash Pay Index.
The investment return and the 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. Returns for periods of less than one year are not
annualized. Past performance is no guarantee of future performance. Figures
assume reinvestment of all dividends and capital gain distributions, if any, at
net asset value on the ex-dividend dates. Performance relates to the Portfolio
and does not reflect separate account charges applicable to variable annuity
contracts. Current performance may be different.
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5
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur ongoing costs, including management
fees, distribution fees (if applicable) 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, January 1, 2005 to June 30, 2005.
ACTUAL EXPENSES The first line for each class of shares 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 for each class of
shares under the heading entitled "Expenses Paid During Period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
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 the 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 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. Please note that the expenses shown in the
table are meant to highlight your ongoing costs only and do not reflect any
transactional costs (as applicable), such as contract level charges that may be
applicable to variable annuity contracts. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending Expenses Paid
Account Value Account Value During Period*
January 1, 2005 June 30, 2005 01/01/05 - 06/30/05
- --------------------------------------------------------------------------------
Class H Actual $1,000.00 $1,016.00 $4.10
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Hypothetical
(5% annual return
before expenses) 1,000.00 1,020.73 4.11
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Class I Actual 1,000.00 1,014.80 5.35
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Hypothetical
(5% annual return
before expenses) 1,000.00 1,019.49 5.36
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* Expenses are equal to the Portfolio's annualized expense ratios: Class H:
0.82% and Class I: 1.07%, 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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6
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO STATISTICS (UNAUDITED)
CHARACTERISTICS 6/30/05 12/31/04 6/30/04
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Net Assets (mm) $70.1 $75.7 $76.3
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Number of Securities 183 179 190
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PORTFOLIO
COMPOSITION* 6/30/05 12/31/04 6/30/04
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Common Stocks
and Warrants 59.6% 62.1% 62.0%
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Bonds 24.9 25.9 27.8
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Investment Companies 7.0 7.6 6.9
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Cash Equivalents and
Other Assets Less
Liabilities 8.5 4.4 3.3
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Total 100.0% 100.0% 100.0%
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TOP FIVE EQUITY
SECTORS* 6/30/05 12/31/04 6/30/04
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Financials 15.6% 21.1% 22.0%
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Health Care 11.0 12.4 12.0
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Consumer Discretionary 7.2 9.4 8.1
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Information Technology 6.6 4.5 4.3
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Industrials 6.0 7.1 8.9
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Total 46.4% 54.5% 55.3%
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TOP TEN EQUITY
SECURITIES* 6/30/05 12/31/04 6/30/04
- ------------------------------------------------------------------------------------------------------
Citigroup 2.7% Citigroup 2.7% Citigroup 2.8%
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Nextel Communications 2.1 Johnson & Johnson 2.5 Nextel Communications 2.6
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Johnson & Johnson 2.0 Nextel Communications 2.2 Microsoft 2.2
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Wells Fargo 1.9 Wells Fargo 2.1 Allergan 2.1
Burlington Northern
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Microsoft 1.9 Santa Fe 2.1 Wells Fargo 2.1
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UnitedHealth Group 1.9 Morgan Stanley 2.0 Burlington Northern 1.9
Santa Fe
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Morgan Stanley 1.7 Allergan 1.8 Morgan Stanley 1.7
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Exelon 1.6 Exxon Mobil 1.8 UnitedHealth Group 1.7
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J.P. Morgan 1.4 Microsoft 1.8 Illinois Tool Works 1.7
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Federal Home Loan Federal Home Loan 1.7
Mortgage 1.4 Mortgage Exxon Mobil 1.6
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Total 18.6% 20.7% 20.4%
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* Weightings represent percentages of net assets.
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7
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO STATISTICS (CONCLUDED)(UNAUDITED)
FIXED INCOME
SECTOR ALLOCATION* 6/30/05 12/31/04 6/30/04
- --------------------------------------------------------------------------------------------------
Mortgage & Agency
Debt Securities 12.0% 12.0% 13.3%
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Corporate Bonds 4.9 5.0 5.6
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U.S. Government
Obligations 3.7 4.3 5.6
- --------------------------------------------------------------------------------------------------
Commercial
Mortgage-Backed
Securities 2.4 2.4 1.8
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Asset-Backed
Securities 1.7 2.1 1.3
- --------------------------------------------------------------------------------------------------
International
Government
Obligations 0.2 0.1 0.2
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Total 24.9% 25.9% 27.8%
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TOP TEN FIXED
INCOME SECURITIES* 6/30/05 12/31/04 6/30/04
- --------------------------------------------------------------------------------------------------
GNMA GNMA U.S. Treasury
Certificates, 6.500% Certificates, 6.500% Notes, 3.375%
due 06/15/29 1.8% due 06/15/29 2.0% due 12/15/08 3.2%
- --------------------------------------------------------------------------------------------------
FNMA FNMA GNMA
Certificates, 5.500% Certificates, 5.500% Certificates, 6.500%
due 10/01/33 1.8 due 10/01/33 1.8 due 06/15/29 2.4
- --------------------------------------------------------------------------------------------------
FNMA U.S. Treasury FHLMC
Certificates, 6.500% Bonds, 4.000% Certificates, 5.125%
due 12/01/29 1.3 due 02/15/14 1.6 due 07/15/12 2.1
- --------------------------------------------------------------------------------------------------
FHLMC FHLMC FNMA
Certificates, 5.000% Certificates, 5.125% Certificates, 5.500%
due 01/30/14 1.2 due 07/15/12 1.6 due 10/01/33 1.9
- --------------------------------------------------------------------------------------------------
GNMA FNMA U.S. Treasury
Certificates, 6.000% Certificates, 6.500% Notes, 4.250%
due 07/15/29 1.0 due 07/15/12 1.5 due 08/15/13 1.3
- --------------------------------------------------------------------------------------------------
U.S. Treasury
Inflation Index U.S. Treasury GNMA
Notes, 2.000% Notes, 2.750% Certificates, 6.000%
due 01/15/14 0.9 due 07/31/06 1.2 due 07/15/29 1.2
- --------------------------------------------------------------------------------------------------
FHLMC FHLMC FHLMC
Certificates, 5.625% Certificates, 5.000% Certificates, 5.000%
due 03/15/11 0.9 due 01/30/14 1.1 due 01/30/14 1.0
- --------------------------------------------------------------------------------------------------
U.S. Treasury GNMA FHLMC
Notes, 3.750% Certificates, 6.000% Certificates, 4.500%,
due 03/31/07 0.9 due 07/15/29 1.1 maturity to be assigned 1.0
- --------------------------------------------------------------------------------------------------
FHLMC WFS Financial Owner FNMA
Certificates, 5.125% Trust, 4.500% REMIC, 6.000%
due 07/15/12 0.9 due 02/20/10 0.7 due 04/25/30 0.7
- --------------------------------------------------------------------------------------------------
WFS Financial Owner U.S. Treasury WFS Financial Owner
Trust, 4.500% Notes, 2.500% Trust, 4.500%
due 02/20/10 0.6 due 09/30/06 0.7 due 02/20/10 0.7
- --------------------------------------------------------------------------------------------------
Total 11.3% 13.3% 15.5%
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* Weightings represent percentages of net assets.
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8
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
COMMON STOCKS - 59.57%
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------
AEROSPACE & DEFENSE - 1.69%
Lockheed Martin Corp. 10,300 $668,161
- -----------------------------------------------------
Northrop Grumman Corp. 9,300 513,825
- -----------------------------------------------------
1,181,986
- -----------------------------------------------------
AIR FREIGHT & COURIERS - 0.38%
FedEx Corp. 3,300 267,333
- -----------------------------------------------------
AUTO COMPONENTS - 0.74%
BorgWarner, Inc. 700 37,569
- -----------------------------------------------------
Johnson Controls, Inc. (1) 8,600 484,438
- -----------------------------------------------------
522,007
- -----------------------------------------------------
BANKS - 4.58%
Fifth Third Bancorp (1) 12,500 515,125
- -----------------------------------------------------
Mellon Financial Corp. 28,100 806,189
- -----------------------------------------------------
PNC Financial Services
Group 9,700 528,262
- -----------------------------------------------------
Wells Fargo & Co. 22,100 1,360,918
- -----------------------------------------------------
3,210,494
- -----------------------------------------------------
BIOTECHNOLOGY - 1.01%
Genzyme Corp.* 10,900 654,981
- -----------------------------------------------------
Millennium
Pharmaceuticals, Inc.* 6,000 55,620
- -----------------------------------------------------
710,601
- -----------------------------------------------------
BUILDING PRODUCTS - 1.36%
Masco Corp. (1) 30,100 955,976
- -----------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.55%
Cendant Corp. 17,200 384,764
- -----------------------------------------------------
COMPUTERS & PERIPHERALS - 0.80%
Hewlett-Packard Co. 23,800 559,538
- -----------------------------------------------------
CONSTRUCTION MATERIALS - 1.06%
Martin Marietta
Materials, Inc. 10,800 746,496
- -----------------------------------------------------
DIVERSIFIED FINANCIALS - 7.19%
Citigroup, Inc. 40,500 1,872,315
- -----------------------------------------------------
Federal Home Loan
Mortgage Corp. (1) 15,100 984,973
- -----------------------------------------------------
J.P. Morgan Chase & Co. 28,100 992,492
- -----------------------------------------------------
Morgan Stanley 22,700 1,191,069
- -----------------------------------------------------
5,040,849
- -----------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.75%
SBC Communications, Inc. 22,300 $ 529,625
- -----------------------------------------------------
ELECTRIC UTILITIES - 3.49%
American Electric Power
Co., Inc. 11,200 412,944
- -----------------------------------------------------
Exelon Corp. 21,500 1,103,595
- -----------------------------------------------------
FirstEnergy Corp. 15,100 726,461
- -----------------------------------------------------
Pepco Holdings, Inc. 8,700 208,278
- -----------------------------------------------------
2,451,278
- -----------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.77%
Mettler-Toledo
International, Inc.* 9,400 437,852
- -----------------------------------------------------
Waters Corp.* 2,700 100,359
- -----------------------------------------------------
538,211
- -----------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.33%
Baker Hughes, Inc. 4,500 230,220
- -----------------------------------------------------
FOOD & DRUG RETAILING - 1.91%
Albertson's, Inc. (1) 30,500 630,740
- -----------------------------------------------------
Kroger Co.* 31,800 605,154
- -----------------------------------------------------
7-Eleven, Inc.* 3,400 102,816
- -----------------------------------------------------
1,338,710
- -----------------------------------------------------
GAS UTILITIES - 1.02%
NiSource, Inc. 11,100 274,503
- -----------------------------------------------------
Sempra Energy 10,600 437,886
- -----------------------------------------------------
712,389
- -----------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.42%
Medtronic, Inc. 5,700 295,203
- -----------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 2.22%
Caremark Rx, Inc.* 5,300 235,956
- -----------------------------------------------------
UnitedHealth Group, Inc. 25,300 1,319,142
- -----------------------------------------------------
1,555,098
- -----------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.50%
Carnival Corp. 6,400 349,120
- -----------------------------------------------------
HOUSEHOLD PRODUCTS - 0.79%
Kimberly Clark Corp. 8,800 550,792
- -----------------------------------------------------
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9
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
COMMON STOCKS - (CONCLUDED)
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
COMMON STOCKS - 59.57%
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------
INSURANCE - 3.82%
AFLAC, Inc. 8,400 $ 363,552
- -----------------------------------------------------
Allstate Corp. 8,600 513,850
- -----------------------------------------------------
American International
Group, Inc. 12,400 720,440
- -----------------------------------------------------
Hartford Financial Services
Group, Inc. (1) 6,100 456,158
- -----------------------------------------------------
WellPoint, Inc.* 9,000 626,760
- -----------------------------------------------------
2,680,760
- -----------------------------------------------------
INTERNET SOFTWARE &
SERVICES - 0.74%
IAC/InterActiveCorp (1)* 21,600 519,480
- -----------------------------------------------------
MACHINERY - 1.19%
Illinois Tool Works, Inc. 10,500 836,640
- -----------------------------------------------------
MEDIA - 3.59%
Clear Channel
Communications, Inc. 14,300 442,299
- -----------------------------------------------------
Dex Media, Inc. 10,200 248,982
- -----------------------------------------------------
DIRECTV Group, Inc.* 10,800 167,400
- -----------------------------------------------------
Omnicom Group, Inc. (1) 7,800 622,908
- -----------------------------------------------------
Time Warner, Inc.* 41,200 688,452
- -----------------------------------------------------
Univision Communications,
Inc., Class A (1)* 12,600 347,130
- -----------------------------------------------------
2,517,171
- -----------------------------------------------------
MULTI-LINE RETAIL - 1.88%
Costco Wholesale Corp. 19,600 878,472
- -----------------------------------------------------
Kohl's Corp.* 7,900 441,689
- -----------------------------------------------------
1,320,161
- -----------------------------------------------------
OIL & GAS - 1.92%
Exxon Mobil Corp. 12,700 729,869
- -----------------------------------------------------
Marathon Oil Corp. 11,500 613,755
- -----------------------------------------------------
1,343,624
- -----------------------------------------------------
PHARMACEUTICALS - 7.30%
Allergan, Inc. (1) 11,000 937,640
- -----------------------------------------------------
Bristol-Myers Squibb Co. 14,100 352,218
- -----------------------------------------------------
Cephalon, Inc. (1)* 7,000 278,670
- -----------------------------------------------------
Johnson & Johnson 22,000 1,430,000
- -----------------------------------------------------
Medco Health Solutions,
Inc. (1)* 10,800 576,288
- -----------------------------------------------------
Mylan Laboratories,
Inc. (1) 33,200 638,768
- -----------------------------------------------------
Wyeth 20,400 907,800
- -----------------------------------------------------
5,121,384
- -----------------------------------------------------
ROAD & RAIL - 0.79%
- -----------------------------------------------------
Burlington Northern
Santa Fe, Inc. 11,800 $ 555,544
- -----------------------------------------------------
SEMICONDUCTOR EQUIPMENT &
PRODUCTS - 0.92%
Applied Materials, Inc. 23,000 372,140
- -----------------------------------------------------
Xilinx, Inc. (1) 10,600 270,300
- -----------------------------------------------------
642,440
- -----------------------------------------------------
SOFTWARE - 3.33%
Microsoft Corp. 54,500 1,353,780
- -----------------------------------------------------
Oracle Corp.* 46,700 616,440
- -----------------------------------------------------
VERITAS Software Corp.* 15,000 366,000
- -----------------------------------------------------
2,336,220
- -----------------------------------------------------
SPECIALTY RETAIL - 0.44%
Office Depot, Inc.* 13,600 310,624
- -----------------------------------------------------
WIRELESS TELECOMMUNICATION
SERVICES - 2.09%
Nextel Communications,
Inc., Class A (1)* 45,400 1,466,874
- -----------------------------------------------------
Total Common Stocks
(cost - $38,738,836) 41,781,612
- -----------------------------------------------------
- --------------------------------------------------------------------------------
10
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 3.72%
- ---------------------------------------------------------------------------------------------------
$40 U.S. Treasury Bonds 05/15/17 8.750% $57,433
- ---------------------------------------------------------------------------------------------------
275 U.S. Treasury Bonds 08/15/23 6.250 342,708
- ---------------------------------------------------------------------------------------------------
65 U.S. Treasury Bonds 05/15/30 6.250 84,665
- ---------------------------------------------------------------------------------------------------
637 U.S. Treasury Inflation Index Notes (3) 01/15/14 2.000 656,164
- ---------------------------------------------------------------------------------------------------
385 U.S. Treasury Notes 02/28/07 3.375 383,316
- ---------------------------------------------------------------------------------------------------
615 U.S. Treasury Notes 03/31/07 3.750 615,937
- ---------------------------------------------------------------------------------------------------
400 U.S. Treasury Notes 04/30/07 3.625 399,781
- ---------------------------------------------------------------------------------------------------
70 U.S. Treasury Notes 01/15/10 3.625 69,669
- ---------------------------------------------------------------------------------------------------
Total U.S. Government Obligations (cost - $2,595,098) 2,609,673
- ---------------------------------------------------------------------------------------------------
MORTGAGE & AGENCY DEBT SECURITIES - 12.02%
- ---------------------------------------------------------------------------------------------------
195 Federal Home Loan Mortgage Corporation Certificates 06/15/08 3.875 195,037
- ---------------------------------------------------------------------------------------------------
595 Federal Home Loan Mortgage Corporation Certificates 03/15/11 5.625 642,423
- ---------------------------------------------------------------------------------------------------
565 Federal Home Loan Mortgage Corporation Certificates 07/15/12 5.125 598,907
- ---------------------------------------------------------------------------------------------------
810 Federal Home Loan Mortgage Corporation Certificates 01/30/14 5.000 812,177
- ---------------------------------------------------------------------------------------------------
75 Federal National Mortgage Association Certificates 05/15/08 6.000 79,278
- ---------------------------------------------------------------------------------------------------
300 Federal National Mortgage Association Certificates 12/01/17 5.500 308,156
- ---------------------------------------------------------------------------------------------------
869 Federal National Mortgage Association Certificates 12/01/29 6.500 902,751
- ---------------------------------------------------------------------------------------------------
1,223 Federal National Mortgage Association Certificates 10/01/33 5.500 1,241,985
- ---------------------------------------------------------------------------------------------------
274 Federal National Mortgage Association Certificates 11/01/34 5.500 278,133
- ---------------------------------------------------------------------------------------------------
299 Federal National Mortgage Association Certificates ARM 05/01/35 4.900 301,853
- ---------------------------------------------------------------------------------------------------
39 FNMA REMIC, Series 2001-57, Class PC 09/25/30 6.500 38,443
- ---------------------------------------------------------------------------------------------------
252 FNMA REMIC, Series 2001-69, Class PN 04/25/30 6.000 253,789
- ---------------------------------------------------------------------------------------------------
267 FNMA REMIC, Series 2001-T4, Class A1 07/25/41 7.500 286,885
- ---------------------------------------------------------------------------------------------------
330 FNMA REMIC, Series 2002-T19, Class A1 07/25/42 6.500 344,050
- ---------------------------------------------------------------------------------------------------
1,194 Government National Mortgage Association Certificates 06/15/29 6.500 1,249,276
- ---------------------------------------------------------------------------------------------------
653 Government National Mortgage Association Certificates 07/15/29 6.000 674,746
- ---------------------------------------------------------------------------------------------------
186 Government National Mortgage Association Certificates 04/15/31 6.500 194,103
- ---------------------------------------------------------------------------------------------------
30 GNMA REMIC, Series 2002-7 Class PE 11/20/30 6.500 30,093
- ---------------------------------------------------------------------------------------------------
Total Mortgage & Agency Debt Securities (cost - $8,333,963) 8,432,085
- ---------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES - 2.42%
- ---------------------------------------------------------------------------------------------------
400 Asset Securitization Corp., Series 1995-MD4, Class A3 08/13/29 7.384 426,945
- ---------------------------------------------------------------------------------------------------
60 First Union-Lehman Brothers Commercial Mortgage,
Series 1997-C2, Class A3 11/18/29 6.650 62,515
- ---------------------------------------------------------------------------------------------------
353 Greenwich Capital Commercial Funding Corp.,
Series 2002-C1, Class A1 01/11/13 3.357 348,605
- ---------------------------------------------------------------------------------------------------
326 Hilton Hotel Pool Trust, Series 2000-HLTA, Class A1** 10/03/15 7.055 350,906
- ---------------------------------------------------------------------------------------------------
150 Mach One Trust Commercial Mortgage,
Series 2004-1A, Class A1** 05/28/40 3.890 147,844
- ---------------------------------------------------------------------------------------------------
350 Nomura Asset Securities Corp., Series 1996-MD5,
Class A4 04/13/39 7.984++ 362,682
- ---------------------------------------------------------------------------------------------------
Total Commercial Mortgage-Backed Securities (cost - $1,705,495) 1,699,497
- ---------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
11
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 1.73%
$157 Conseco Finance Securitizations Corp.,
Series 2000-1 Class A4 05/01/31 7.620% $158,632
- -------------------------------------------------------------------------------------------------------------------------------
365 Conseco Finance Securitizations Corp.,
Series 2000-5 Class A5 02/01/32 7.700 368,659
- -------------------------------------------------------------------------------------------------------------------------------
52 First Franklin Mortgage Loan Asset-Backed Certificates,
Series 2004-FFB, Class A1 06/25/24 4.167# 51,724
- -------------------------------------------------------------------------------------------------------------------------------
91 Greenpoint Home Equity Loan Trust,
Series 2004-3, Class A 03/15/35 3.450++ 90,829
- -------------------------------------------------------------------------------------------------------------------------------
100 Paragon Mortgages PLC, Series 7A, Class B1A** 05/15/43 4.018++ 100,241
- -------------------------------------------------------------------------------------------------------------------------------
443 WFS Financial Owner Trust, Series 2002-2, Class A4 02/20/10 4.500 444,152
- -------------------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities (cost - $1,212,278) 1,214,237
- -------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 4.86%
- -------------------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE - 0.14%
45 Boeing Capital Corp. 09/27/10 7.375 51,475
- -------------------------------------------------------------------------------------------------------------------------------
30 Lockheed Martin Corp. 12/01/29 8.500 43,325
- -------------------------------------------------------------------------------------------------------------------------------
94,800
- -------------------------------------------------------------------------------------------------------------------------------
AUTOMOBILE OEM - 0.52%
115 DaimlerChrysler N.A. Holding Corp. 06/04/08 4.050 113,238
- -------------------------------------------------------------------------------------------------------------------------------
45 Ford Motor Co. 07/16/31 7.450 37,567
- -------------------------------------------------------------------------------------------------------------------------------
115 Ford Motor Credit Co. 01/12/09 5.800 109,169
- -------------------------------------------------------------------------------------------------------------------------------
110 General Motors Acceptance Corp. 09/15/11 6.875 101,540
- -------------------------------------------------------------------------------------------------------------------------------
361,514
- -------------------------------------------------------------------------------------------------------------------------------
BANKING-NON-U.S. - 0.27%
25 Abbey National PLC 10/26/29 7.950 33,996
- -------------------------------------------------------------------------------------------------------------------------------
90 HSBC Finance Corp. 05/15/11 6.750 99,895
- -------------------------------------------------------------------------------------------------------------------------------
25 HSBC Holdings PLC 12/12/12 5.250 26,018
- -------------------------------------------------------------------------------------------------------------------------------
25 Royal Bank of Scotland Group PLC, Series 1 03/31/10 9.118 29,773
- -------------------------------------------------------------------------------------------------------------------------------
189,682
- -------------------------------------------------------------------------------------------------------------------------------
BANKING-U.S. - 0.89%
105 Bank of America Corp. 01/15/11 7.400 120,170
- -------------------------------------------------------------------------------------------------------------------------------
40 Bank One Corp. 08/01/10 7.875 46,245
- -------------------------------------------------------------------------------------------------------------------------------
50 Citigroup, Inc. 08/27/12 5.625 53,406
- -------------------------------------------------------------------------------------------------------------------------------
101 Citigroup, Inc. 09/15/14 5.000 103,318
- -------------------------------------------------------------------------------------------------------------------------------
25 CS First Boston USA, Inc. 01/15/09 3.875 24,706
- -------------------------------------------------------------------------------------------------------------------------------
75 J.P. Morgan Chase & Co. 02/01/11 6.750 82,943
- -------------------------------------------------------------------------------------------------------------------------------
30 Wachovia Bank N.A. 08/18/10 7.800 34,846
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
12
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------
BANKING-U.S. - (CONCLUDED)
$115 Washington Mutual, Inc. 01/15/07 5.625% $117,536
- -----------------------------------------------------------------------------------------------------------------------------
35 Wells Fargo & Co. 08/01/11 6.375 38,700
- -----------------------------------------------------------------------------------------------------------------------------
621,870
- -----------------------------------------------------------------------------------------------------------------------------
BROKERAGE - 0.33%
90 Goldman Sachs Group, Inc. 01/15/11 6.875 100,353
- -----------------------------------------------------------------------------------------------------------------------------
120 Morgan Stanley 04/15/11 6.750 132,868
- -----------------------------------------------------------------------------------------------------------------------------
233,221
- -----------------------------------------------------------------------------------------------------------------------------
CABLE - 0.14%
90 Comcast Cable Communications, Inc. 01/30/11 6.750 99,293
- -----------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.19%
70 Dow Chemical Co. 02/01/11 6.125 76,000
- -----------------------------------------------------------------------------------------------------------------------------
60 ICI Wilmington, Inc. 12/01/08 4.375 59,544
- -----------------------------------------------------------------------------------------------------------------------------
135,544
- -----------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS-NONDURABLES - 0.07%
45 Avon Products, Inc. 11/15/09 7.150 50,196
- -----------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.32%
23 American Electric Power Co., Series A 05/15/06 6.125 23,404
- -----------------------------------------------------------------------------------------------------------------------------
30 Dominion Resources, Inc., Series A 06/15/10 8.125 34,566
- -----------------------------------------------------------------------------------------------------------------------------
25 FirstEnergy Corp., Series B 11/15/11 6.450 27,316
- -----------------------------------------------------------------------------------------------------------------------------
55 FPL Group Capital, Inc. 09/15/06 7.625 57,250
- -----------------------------------------------------------------------------------------------------------------------------
20 Pacific Gas & Electric Co. 03/01/34 6.050 22,042
- -----------------------------------------------------------------------------------------------------------------------------
25 PSEG Power 04/15/11 7.750 28,823
- -----------------------------------------------------------------------------------------------------------------------------
25 Xcel Energy, Inc. 12/01/10 7.000 27,812
- -----------------------------------------------------------------------------------------------------------------------------
221,213
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY - 0.06%
35 Devon Financing Corp., U.L.C. 09/30/11 6.875 39,164
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY-INTEGRATED - 0.12%
25 Marathon Oil Corp. 03/15/12 6.125 27,210
- -----------------------------------------------------------------------------------------------------------------------------
25 PPL Capital Funding 03/01/09 4.330 24,807
- -----------------------------------------------------------------------------------------------------------------------------
30 TXU Energy Co. 03/15/13 7.000 33,457
- -----------------------------------------------------------------------------------------------------------------------------
85,474
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY REFINING & MARKETING - 0.04%
25 Valero Energy Corp. 04/15/32 7.500 30,858
- -----------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT - 0.11%
40 Time Warner, Inc. 04/15/31 7.625 49,955
- -----------------------------------------------------------------------------------------------------------------------------
25 Viacom, Inc. 05/15/11 6.625 26,853
- -----------------------------------------------------------------------------------------------------------------------------
76,808
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
13
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
FINANCE-NONCAPTIVE CONSUMER - 0.17%
$25 American General Finance 10/01/12 5.375% $25,807
- ----------------------------------------------------------------------------------------------------------------------------
25 Capital One Financial 06/01/15 5.500 25,576
- ----------------------------------------------------------------------------------------------------------------------------
25 Countrywide Home Loans 05/21/08 3.250 24,274
- ----------------------------------------------------------------------------------------------------------------------------
45 SLM Corp. 04/10/07 5.625 46,136
- ----------------------------------------------------------------------------------------------------------------------------
121,793
- ----------------------------------------------------------------------------------------------------------------------------
FINANCE-NONCAPTIVE DIVERSIFIED - 0.50%
240 General Electric Capital Corp. 06/15/12 6.000 261,748
- ----------------------------------------------------------------------------------------------------------------------------
35 General Electric Capital Corp. 03/15/32 6.750 43,190
- ----------------------------------------------------------------------------------------------------------------------------
50 International Lease Finance Corp. 04/01/09 3.500 48,148
- ----------------------------------------------------------------------------------------------------------------------------
353,086
- ----------------------------------------------------------------------------------------------------------------------------
FOOD - 0.11%
25 Conagra Foods, Inc. 09/15/11 6.750 27,666
- ----------------------------------------------------------------------------------------------------------------------------
50 Kraft Foods, Inc. 11/01/11 5.625 53,041
- ----------------------------------------------------------------------------------------------------------------------------
80,707
- ----------------------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.04%
25 Safeway, Inc. 02/01/31 7.250 28,949
- ----------------------------------------------------------------------------------------------------------------------------
FOOD PROCESSORS/BEVERAGE/BOTTLING - 0.07%
50 Miller Brewing Co.** 08/15/13 5.500 51,816
- ----------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 0.04%
25 McKesson Corp. 02/01/12 7.750 29,052
- ----------------------------------------------------------------------------------------------------------------------------
INSURANCE-PERSONAL & CASUALTY - 0.04%
25 Marsh & McLennan Cos., Inc. 03/15/12 6.250 26,387
- ----------------------------------------------------------------------------------------------------------------------------
MACHINERY-AGRICULTURE & CONSTRUCTION - 0.06%
35 John Deere Capital Corp. 03/15/12 7.000 40,155
- ----------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.04%
25 Alcoa, Inc. 01/15/12 6.000 27,075
- ----------------------------------------------------------------------------------------------------------------------------
OIL & GAS - 0.05%
30 Duke Energy Field Services 08/16/10 7.875 34,439
- ----------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.08%
25 International Paper Co. 09/01/11 6.750 27,251
- ----------------------------------------------------------------------------------------------------------------------------
25 Weyerhaeuser Co. 03/15/32 7.375 29,479
- ----------------------------------------------------------------------------------------------------------------------------
56,730
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
14
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - (CONCLUDED)
- ------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.08%
$25 Bristol-Myers Squibb Co. 10/01/11 5.750% $26,747
- ------------------------------------------------------------------------------------------------------------------------------
25 Wyeth 03/15/13 5.500 26,311
- ------------------------------------------------------------------------------------------------------------------------------
53,058
- ------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 0.06%
35 EOP Operating LP 06/15/28 7.250 40,799
- ------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.07%
45 Union Pacific Corp. 12/01/06 6.700 46,472
- ------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - SOFTWARE - 0.03%
25 Computer Sciences Corp. 04/15/08 3.500 24,423
- ------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION SERVICES - 0.04%
25 ERAC USA Finance Co. ** 01/15/11 8.000 28,948
- ------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.18%
25 AT&T Wireless Services, Inc. 03/01/31 8.750 35,041
- ------------------------------------------------------------------------------------------------------------------------------
25 BellSouth Corp. 06/15/34 6.550 28,465
- ------------------------------------------------------------------------------------------------------------------------------
55 Verizon New York, Inc., Series A 04/01/12 6.875 60,785
- ------------------------------------------------------------------------------------------------------------------------------
124,291
- ------------------------------------------------------------------------------------------------------------------------------
Total Corporate Bonds (cost - $3,344,692) 3,407,817
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GOVERNMENT OBLIGATIONS - 0.18%
- ------------------------------------------------------------------------------------------------------------------------------
30 Pemex Project Funding Master Trust 11/15/11 8.000 34,080
- ------------------------------------------------------------------------------------------------------------------------------
75 United Mexican States 12/30/19 8.125 92,062
- ------------------------------------------------------------------------------------------------------------------------------
Total International Government Obligations (cost - $113,912) 126,142
- ------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
SHARES
(000)
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 7.03%
- ------------------------------------------------------------------------------------------------------------------------------
82 UBS High Yield Relationship Fund (2)* 1,548,087
- ------------------------------------------------------------------------------------------------------------------------------
88 UBS US Small Cap Equity Relationship Fund (2)* 3,382,289
- ------------------------------------------------------------------------------------------------------------------------------
Total Investment Companies (cost - $4,378,918) 4,930,376
- ------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000)
- ------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 9.13%
6,407 Repurchase Agreement dated 06/30/05 with State
Street Bank & Trust Co., collateralized by
$681,420 U.S. Treasury Bonds, 6.250% due
05/15/30 and $5,584,687 U.S. Treasury Notes,
2.000% to 6.500% due 08/15/05 to 11/15/05;
(value - $6,535,163); proceeds $6,407,454
(cost - $6,407,000) 07/01/05 2.550 6,407,000
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
15
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT INTEREST
(000) RATES VALUE
- ------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 10.90%
- ------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS+ - 10.90%
++ 0 AIM Liquid Assets Portfolio 3.221% $387
- ------------------------------------------------------------------------------------------------------------
3 AIM Prime Portfolio 3.192 3,062
- ------------------------------------------------------------------------------------------------------------
3,129 Barclays Prime Money Market Fund 3.138 3,129,426
- ------------------------------------------------------------------------------------------------------------
3 Dreyfus Institutional Cash Advantage Fund 3.072 2,528
- ------------------------------------------------------------------------------------------------------------
4,508 UBS Private Money Market Fund LLC (2) 3.148 4,507,681
- ------------------------------------------------------------------------------------------------------------
Total Money Market Funds (cost - $7,643,084) 7,643,084
- ------------------------------------------------------------------------------------------------------------
Total Investments (cost - $74,473,276) - 111.56% 78,251,523
- ------------------------------------------------------------------------------------------------------------
Liabilities in excess of other assets - (11.56)% (8,106,028)
- ------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% $70,145,495
- ------------------------------------------------------------------------------------------------------------
* Non-income producing security.
** Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities, which represent 0.97% of net assets as of June 30,
2005, are considered liquid and may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
+ Interest rates shown reflect yield at June 30, 2005. ++ Amount represents
less than 500 shares.
++ Floating rate security. The interest rate shown is the current rate as of
June 30, 2005.
# Denotes a step-up/step-down bond that is currently accruing at the noted
rate.
(1) Security, or portion thereof, was on loan at June 30, 2005.
(2) Affiliated issuer. See table below for more information.
- --------------------------------------------------------------------------------
16
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
UBS US SMALL
UBS HIGH YIELD UBS PRIVATE CAP EQUITY
RELATIONSHIP MONEY MARKET RELATIONSHIP
FUND FUND LLC FUND
- -----------------------------------------------------------------------------------------------------------------------
Value at 12/31/04 $1,547,312 $ 3,674,922 $4,167,261
- -----------------------------------------------------------------------------------------------------------------------
Purchases During
the Six Months
Ended 06/30/05 -- 31,239,088 --
- -----------------------------------------------------------------------------------------------------------------------
Sales During the
Six Months
Ended 06/30/05 -- 30,406,329 700,000
- -----------------------------------------------------------------------------------------------------------------------
Net Realized Gain
for the Six Months
Ended 06/30/05 -- -- 75,736
- -----------------------------------------------------------------------------------------------------------------------
Net Unrealized Gain
(Loss) for the
Six Months
Ended 06/30/05 775 -- (160,708)
- -----------------------------------------------------------------------------------------------------------------------
Value at 06/30/05 1,548,087 4,507,681 3,382,289
- -----------------------------------------------------------------------------------------------------------------------
Income Earned
from Affiliate for
the Six Months
Ended 06/30/05 -- 262 --
- -----------------------------------------------------------------------------------------------------------------------
(3) Principal amount for accrual purposes is adjusted based on changes in the
Consumer Price Index.
ARM Adjustable Rate Mortgage--The interest rate shown is the current rate as
of June 30, 2005.
OEM Original Equipment Manufacturer
REMIC Real Estate Mortgage Investment Conduit
ISSUER BREAKDOWN BY COUNTRY (UNAUDITED) PERCENTAGE OF PORTFOLIO ASSETS
- --------------------------------------------------------------------------------
United States 99.2%
- --------------------------------------------------------------------------------
Panama 0.5
- --------------------------------------------------------------------------------
United Kingdom 0.2
- --------------------------------------------------------------------------------
Mexico 0.1
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
17
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES -- JUNE 30, 2005 (UNAUDITED)
ASSETS:
Investments in unaffiliated securities,
at value (cost--$65,586,677)* $68,813,466
- --------------------------------------------------------------------------------
Investments in affiliated securities,
at value (cost--$8,886,599) 9,438,057
- --------------------------------------------------------------------------------
Cash 107
- --------------------------------------------------------------------------------
Receivable for investments sold 285,240
- --------------------------------------------------------------------------------
Receivable for dividends and interest 203,851
- --------------------------------------------------------------------------------
Other assets 2,142
- --------------------------------------------------------------------------------
Total assets 78,742,863
- --------------------------------------------------------------------------------
LIABILITIES:
Payable for cash collateral from securities loaned 7,643,084
- --------------------------------------------------------------------------------
Payable for investments purchased 770,266
- --------------------------------------------------------------------------------
Payable to affiliates 91,516
- --------------------------------------------------------------------------------
Accrued expenses and other liabilities 92,502
- --------------------------------------------------------------------------------
Total liabilities 8,597,368
- --------------------------------------------------------------------------------
NET ASSETS:
Beneficial interest--$0.001 par value (unlimited
amount authorized) 97,859,872
- --------------------------------------------------------------------------------
Accumulated undistributed net investment income 509,695
- --------------------------------------------------------------------------------
Accumulated net realized loss from investment and
foreign currency transactions (32,002,319)
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments 3,778,247
- --------------------------------------------------------------------------------
Net assets $70,145,495
- --------------------------------------------------------------------------------
CLASS H:
Net assets $17,599,144
- --------------------------------------------------------------------------------
Shares outstanding 1,304,090
- --------------------------------------------------------------------------------
Net asset value, offering price and redemption value per share $13.50
- --------------------------------------------------------------------------------
CLASS I:
Net assets $52,546,351
- --------------------------------------------------------------------------------
Shares outstanding 3,898,529
- --------------------------------------------------------------------------------
Net asset value, offering price and redemption value per share $13.48
- --------------------------------------------------------------------------------
*Includes $8,586,805 of investments in securities on loan, at value.
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
18
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
STATEMENT OF OPERATIONS
For the Six
Months Ended
June 30, 2005
(unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
- --------------------------------------------------------------------------------
Interest $462,592
- --------------------------------------------------------------------------------
Dividends 406,737
- --------------------------------------------------------------------------------
Securities lending income (includes $262 earned from
an affiliated entity) 854
- --------------------------------------------------------------------------------
870,183
- --------------------------------------------------------------------------------
EXPENSES:
Investment advisory and administration fees 178,728
- --------------------------------------------------------------------------------
Distribution fees--Class I 66,843
- --------------------------------------------------------------------------------
Professional fees 42,188
- --------------------------------------------------------------------------------
Reports and notices to shareholders 31,620
- --------------------------------------------------------------------------------
Custody and accounting 21,447
- --------------------------------------------------------------------------------
Trustees' fees 6,290
- --------------------------------------------------------------------------------
Transfer agency fees-- Class H 750
- --------------------------------------------------------------------------------
Transfer agency fees--Class I 750
- --------------------------------------------------------------------------------
Other expenses 11,632
- --------------------------------------------------------------------------------
360,248
- --------------------------------------------------------------------------------
Net investment income 509,935
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT ACTIVITIES:
Net realized gain from investment activities (includes
$75,736 of realized gain from an affiliated entity) 863,053
- --------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation of investments (377,040)
- --------------------------------------------------------------------------------
Net realized and unrealized gain from investment activities 486,013
- --------------------------------------------------------------------------------
Net increase in net assets resulting from operations $995,948
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
19
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the Six For the
Months Ended Year Ended
June 30, 2005 December 31,
(unaudited) 2004
- --------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $509,935 $925,372
- --------------------------------------------------------------------------------
Net realized gains (losses) from:
Investments 863,053 (6,670,315)
- --------------------------------------------------------------------------------
Foreign currency transactions -- 10,909
- --------------------------------------------------------------------------------
Net change in unrealized appreciation/
depreciation of investments (377,040) 13,091,422
- --------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 995,948 7,357,388
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income--Class H (285,578) (188,572)
- --------------------------------------------------------------------------------
Net investment income--Class I (700,149) (414,153)
- --------------------------------------------------------------------------------
(985,727) (602,725)
- --------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 1,780,440 6,133,583
- --------------------------------------------------------------------------------
Cost of shares repurchased (8,351,177) (17,843,562)
- --------------------------------------------------------------------------------
Proceeds from dividends reinvested 985,727 602,725
- --------------------------------------------------------------------------------
Net decrease in net assets from beneficial
interest transactions (5,585,010) (11,107,254)
- --------------------------------------------------------------------------------
Net decrease in net assets (5,574,789) (4,352,591)
- --------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 75,720,284 80,072,875
- --------------------------------------------------------------------------------
End of period $70,145,495 $75,720,284
- --------------------------------------------------------------------------------
Accumulated undistributed net investment income $509,695 $985,487
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
20
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
UBS Series Trust--U.S. Allocation Portfolio (the "Portfolio") is a diversified
portfolio of UBS Series Trust (the "Trust"). The Trust is organized under
Massachusetts law pursuant to an Amended and Restated Declaration of Trust dated
February 11, 1998, as amended, and is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Trust operates as a series company
currently offering one portfolio. Shares of the Portfolio are offered to
insurance company separate accounts which fund certain variable annuity
contracts.
Currently the Portfolio offers Class H and Class I shares. Each class represents
interests in the same assets of the Portfolio, and the classes are identical
except for the Class I distribution charge. Both classes have equal voting
privileges except that Class I has exclusive voting rights with respect to its
distribution plan. Class H has no distribution plan.
In the normal course of business the Portfolio may enter into contracts that
contain a variety of representations or that provide indemnification for certain
liabilities. The Portfolio's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the
Portfolio that have not yet occurred. However, the Portfolio has not had prior
claims or losses pursuant to these contracts and expects the risk of loss to be
remote.
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires Trust management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies:
VALUATION OF INVESTMENTS--The Portfolio calculates net asset values based on the
current market value for its portfolio securities. The Portfolio normally
obtains market values for its securities from independent pricing sources.
Independent pricing sources may use last reported sale prices, current market
quotations or valuations from computerized "matrix" systems that derive values
based on comparable securities. Securities traded in the over-the-counter
("OTC") market and listed on The Nasdaq Stock Market, Inc. ("Nasdaq") normally
are valued at the NASDAQ Official Closing Price. Other OTC securities are valued
at the last bid price available prior to valuation. Securities which are listed
on U.S. and foreign stock exchanges normally are valued at the last sale price
on the day the securities are valued or, lacking any sales on such day, at the
last available bid price. In cases where securities are traded on more than one
exchange, the securities are valued on the exchange designated as the primary
market by UBS Global Asset Management (US) Inc. ("UBS Global AM"), the
investment advisor and administrator of the Portfolio. UBS Global AM is an
indirect wholly owned asset manage-
- --------------------------------------------------------------------------------
21
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ment subsidiary of UBS AG, an internationally diversified organization with
headquarters in Zurich, Switzerland and operations in many areas of the
financial services industry. If a market value is not available from an
independent pricing source for a particular security, that security is valued at
fair value as determined in good faith by or under the direction of the Trust's
Board of Trustees (the "Board"). The amortized cost method of valuation, which
approximates market value, generally is used to value short-term
debt-instruments with sixty days or less remaining to maturity, unless the Board
determines that this does not represent fair value.
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 on a mark-to-market basis to ensure that the value, including accrued
interest, is at least equal to the repurchase price. In the event of default of
the obligation to repurchase, the Portfolio generally has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation.
Repurchase agreements involving obligations other than U.S. government
securities (such as commercial paper, corporate bonds and mortgage loans) may be
subject to special risks and may not have the benefit of certain protections in
the event of the counterparty insolvency. If the seller (or seller's guarantor,
if any) becomes insolvent, the Portfolio may suffer delays, costs and possible
losses in connection with the disposition or retention of the collateral. Under
certain circumstances, in the event of default or bankruptcy by the other party
to the agreement, realization and/or retention of the collateral may be subject
to legal proceedings. The Portfolio may participate in joint repurchase
agreement transactions with other funds managed, advised or sub-advised by UBS
Global AM.
INVESTMENT TRANSACTIONS, INVESTMENT INCOME AND EXPENSES--Investment transactions
are recorded on the trade date. Realized gains and losses from investment
transactions are calculated using the identified cost method. Dividend income is
recorded on the ex-dividend date ("ex-date"). 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.
- --------------------------------------------------------------------------------
22
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
DIVIDENDS AND DISTRIBUTIONS --Dividends and distributions to shareholders are
recorded on the ex-date. The amount of dividends and distributions is determined
in accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.
CONCENTRATION OF RISK
The ability of the issuers of the debt securities held by the Portfolio to meet
their obligations may be affected by economic developments; including those
particular to a specific industry, country or region.
INVESTMENT ADVISOR AND ADMINISTRATOR
The Board has approved an investment advisory and administration contract
("Advisory Contract"), under which UBS Global AM serves as investment advisor
and administrator of the Portfolio. In accordance with the Advisory Contract,
the Portfolio pays UBS Global AM an investment advisory and administration fee,
which is accrued daily and paid monthly, at an annual rate of 0.50% of the
Portfolio's average daily net assets. At June 30, 2005, the Portfolio owed UBS
Global AM $29,186 for investment advisory and administration fees. For the six
months ended June 30, 2005, the Portfolio paid $2,294 in brokerage commissions
to UBS Financial Services Inc., an indirect wholly owned subsidiary of UBS AG
for transactions executed on behalf of the Portfolio.
ADDITIONAL INFORMATION REGARDING COMPENSATION TO AFFILIATE OF A BOARD MEMBER
Effective March 1, 2005, Professor Meyer Feldberg accepted the position of
senior advisor to Morgan Stanley, resulting in him becoming 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. UBS Global AM executes Portfolio investment transactions through
Morgan Stanley based on the firm's ability to provide best execution of the
transactions. During the six months ended June 30, 2005 the Portfolio paid
brokerage commissions to Morgan Stanley in the amount of $2,312. During the six
months ended June 30, 2005, the Portfolio purchased and sold certain securities
(e.g., fixed income securities) in principal trades with Morgan Stanley having
an aggregate value of $5,970,446. 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 UBS
Global AM, UBS Global AM
- --------------------------------------------------------------------------------
23
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
believes that under normal circumstances it represents a small portion of the
total value of the transactions.
DISTRIBUTION PLAN
Class I shares are offered to insurance company separate accounts where the
related insurance companies receive payments for their services in connection
with the distribution of the Portfolio's Class I shares. Under the plan of
distribution, the Portfolio pays UBS Global AM a monthly distribution fee at the
annual rate of 0.25% of the average daily net assets of Class I shares. UBS
Global AM pays the entire distribution fee to the insurance companies. At June
30, 2005, the Portfolio owed UBS Global AM $62,118 for distribution fees.
SECURITIES LENDING
The Portfolio may lend securities up to 331/3% of its total assets to qualified
broker-dealers or institutional investors. The loans are secured at all times by
cash, U.S. government securities or irrevocable letters of credit in an amount
at least equal to the market value of the securities loaned, plus accrued
interest and dividends, determined on a daily basis and adjusted accordingly.
The Portfolio will regain ownership of loaned securities to exercise certain
beneficial rights; however, the Portfolio may bear the risk of delay in recovery
of, or even loss of rights in, the securities loaned should the borrower fail
financially. The Portfolio receives compensation for lending its securities from
interest or dividends earned on the cash, U.S. government securities or
irrevocable letters of credit held as collateral, net of fee rebates paid to the
borrower plus reasonable administrative and custody fees. UBS Financial Services
Inc. and other affiliated broker-dealers have been approved as borrowers under
the Portfolio's securities lending program. UBS Securities LLC is the
Portfolio's lending agent. For the six months ended June 30, 2005, UBS
Securities LLC earned $416 in compensation as the Portfolio's lending agent. At
June 30, 2005, the Portfolio owed UBS Securities LLC $212 for compensation as
the Portfolio's lending agent.
At June 30, 2005 the Portfolio had securities on loan having a market value of
$8,586,805. The Portfolio's custodian held cash equivalents as collateral for
securities loaned of $7,643,084. In addition, the Portfolio's custodian held
U.S. government and agency securities having an aggregate value of $1,272,083 as
collateral for portfolio securities loaned as follows:
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------
$1,249 Federal Home Loan Mortgage Corporation 05/05/08 4.300% $1,260,914
- --------------------------------------------------------------------------------
5 U.S. Treasury Bond 02/15/26 6.000 6,236
- --------------------------------------------------------------------------------
5 U.S. Treasury Note 02/15/09 3.000 4,933
- --------------------------------------------------------------------------------
$1,272,083
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
24
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
BANK LINE OF CREDIT
The Portfolio participates with other funds managed, advised or sub-advised by
UBS Global AM in a $100 million committed credit facility with State Street Bank
and Trust Company ("Committed Credit Facility"), to be utilized for temporary
financing until the settlement of sales or purchases of portfolio securities,
the repurchase or redemption of shares of the Portfolio at the request of
shareholders and other temporary or emergency purposes. Under the Committed
Credit Facility arrangement, the Portfolio has agreed to pay commitment fees,
pro rata, based on the relative asset size of the funds in the Committed Credit
Facility. Interest is charged to the Portfolio at the overnight federal funds
rate in effect at the time of borrowings, plus 0.50%. The Portfolio did not
borrow under the Committed Credit Facility during the six months ended June 30,
2005.
PURCHASES AND SALES OF SECURITIES
For the six months ended June 30, 2005, aggregate purchases and sales of
portfolio securities, excluding short-term securities and U.S. government and
agency securities, were $8,465,578 and $15,587,899 respectively. For the six
months ended June 30, 2005, aggregate purchases and sales of U.S. government and
agency securities, excluding short-term securities were $15,767,211 and
$17,277,597, respectively.
FEDERAL TAX STATUS
The Portfolio intends to distribute substantially all of its income and to
comply with the other requirements of the Internal Revenue Code applicable to
regulated investment companies. Accordingly, no provision for federal income
taxes is required. In addition, by distributing during each calendar year
substantially all of its net investment income, net realized capital gains and
certain other amounts, if any, the Portfolio intends not to be subject to a
federal excise tax.
The tax character of distributions paid by the Portfolio during the fiscal year
ended December 31, 2004 was as follows:
DISTRIBUTION PAID FROM:
- --------------------------------------------------------------------------------
Ordinary income $602,725
- --------------------------------------------------------------------------------
The tax character of distributions paid and the components of accumulated
earnings (deficit) on a tax basis for the current fiscal year will be determined
after the Portfolio's fiscal year ending December 31, 2005.
At December 31, 2004, the Portfolio had a net capital loss carryforward of
$31,738,408. This loss carryforward is available as a reduction, to the extent
provided in the regulations, of any future net realized capital gains and will
expire as follows: $863,515 will expire December 31, 2009, $13,198,818 will
expire December 31, 2010, $7,434,714 will expire December 31, 2011 and;
$10,241,361 will expire December 31, 2012. To the extent that such losses are
- --------------------------------------------------------------------------------
25
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
used to offset future net realized capital gains, it is probable these gains
will not be distributed. Also, in accordance with U.S. Treasury regulations, the
Portfolio has elected to defer realized capital losses of $119,547 arising after
October 31, 2004. Such losses are treated for tax purposes as arising on January
1, 2005.
For federal income tax purposes, which was substantially the same for book
purposes, the tax cost of investments and the component of net unrealized
appreciation of investments at June 30, 2005 were as follows:
- -------------------------------------------------------------------------------------------------------------------------------
Tax cost of investments $74,473,276
- -------------------------------------------------------------------------------------------------------------------------------
Gross appreciation (investments having an excess of value over cost) 5,687,772
- -------------------------------------------------------------------------------------------------------------------------------
Gross depreciation (investments having an excess of cost over value) (1,909,525)
- -------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $3,778,247
- -------------------------------------------------------------------------------------------------------------------------------
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 were as follows:
SIX MONTHS ENDED CLASS H CLASS I
-------------------------------------------------------------------------------------
JUNE 30, 2005: SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 4,171 $55,462 129,530 $1,724,978
- -------------------------------------------------------------------------------------------------------------------------------
Shares repurchased (136,138) (1,807,159) (491,711) (6,544,018)
- -------------------------------------------------------------------------------------------------------------------------------
Dividends reinvested 21,767 285,578 53,406 700,149
- -------------------------------------------------------------------------------------------------------------------------------
Net decrease (110,200) $(1,466,119) (308,775) $(4,118,891)
- -------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED
DECEMBER 31, 2004:
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 21,605 $271,566 466,663 $5,862,017
- -------------------------------------------------------------------------------------------------------------------------------
Shares repurchased (323,622) (4,011,232) (1,105,483) (13,832,330)
- -------------------------------------------------------------------------------------------------------------------------------
Dividends reinvested 15,013 188,572 33,000 414,153
- -------------------------------------------------------------------------------------------------------------------------------
Net decrease (287,004) $(3,551,094) (605,820) $(7,556,160)
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
26
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- --------------------------------------------------------------------------------
27
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
Class H
-----------------------------------------------------------------------------------------------
For the
Six Months Ended
June 30, For the Years Ended December 31,
2005 -----------------------------------------------------------------------------
(unaudited) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $13.50 $12.31 $9.77 $12.73 $15.83 $16.49
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 0.13 0.17@ 0.11@ 0.10@ 0.08 0.40@
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gains (losses) from
investment activities 0.08 1.14 2.55 (2.97) (2.02) (0.71)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
operations 0.21 1.31 2.66(2.87) (1.94) (0.31) 0.19
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends from net
investment income (0.21) (0.12) (0.12) (0.09) (0.33) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net
realized gains from
investment activities -- -- -- -- (0.83) (0.34)
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and
distributions to
shareholders (0.21) (0.12) (0.12) (0.09) (1.16) (0.35)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $13.50 $13.50 $12.31 $9.77 $12.73 $15.83
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.60% 10.68% 27.62% (22.68)% (12.39)% (1.93)%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets,
end of period (000's) $17,599 $19,088 $20,949 $19,743 $32,607 $41,212
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses to average
net assets, net of fee
waivers by advisor 0.82%* 0.80% 0.77% 0.66% 0.67% 0.72%(2)
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income
to average net assets, net
of fee waivers by advisor 1.61%* 1.39% 1.03% 0.91% 0.67% 2.50%(2)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 35% 136% 5% 5% 10% 166%
- ------------------------------------------------------------------------------------------------------------------------------------
* Annualized.
@ Calculated using average month-end
shares outstanding for the year.
(1) Total investment return is calculated
assuming a $10,000 investment on the first day of each period reported,
reinvestment of all dividends and other distributions, if any, at net asset
value on the ex-dividend dates, and a sale at net asset value on the last
day of each period reported. The figures do not include additional contract
level charges; results would be lower if they were included. Total
investment return for periods of less than one year has not been annualized.
(2) During the year ended December 31, 2000, UBS Global AM waived a portion of
its advisory and administration fees. The ratios excluding the waiver for
Class H and Class I were 0.73% and 0.98%, respectively, for expenses to
average net assets and 2.49% and 2.23%, respectively, for net investment
income to average net assets.
- --------------------------------------------------------------------------------
28
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
Class I
----------------------------------------------------------------------------------------------------
For the
Six Months Ended
June 30, For the Years Ended December 31,
2005 ----------------------------------------------------------------------------------
(unaudited) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $13.46 $12.28 $9.73 $12.69 $15.78 $16.48
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 0.10 0.14@ 0.08@ 0.07@ 0.04 0.36@
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gains (losses) from
investment activities 0.09 1.13 2.56 (2.97) (2.00) (0.71)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
operations 1.27 2.64 (2.90) (1.96) (0.35)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends from net
investment income (0.17) (0.09) (0.09) (0.06) (0.30) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net
realized gains from
investment activities -- -- -- -- (0.83) (0.34)
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and
distributions to
shareholders (0.17) (0.09) (0.09) (0.06) (1.13) (0.35)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $13.48 $13.46 $12.28 $9.73 $12.69 $15.78
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.48% 10.38% 27.37% (22.95)% (12.55)% (2.18)%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets,
end of period (000's) $52,546 $56,632 $59,124 $50,270 $85,825 $84,787
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses to average
net assets, net of fee
waivers by advisor 1.07%* 1.05% 1.02% 0.91% 0.92% 0.94%(2)
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income
to average net assets, net
of fee waivers by advisor 1.36%* 1.15% 0.78% 0.66% 0.42% 2.27%(2)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 35% 136% 5% 5% 10% 166%
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
29
UBS SERIES TRUST -- U.S. ALLOCATION PORTFOLIO
GENERAL INFORMATION (UNAUDITED)
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 12-month period ended
June 30, 2005, without charge, upon request by contacting the Portfolio directly
at 1-800-647 1568, online on the Portfolio's Web site:
www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's Web site
(http://www.sec.gov).
QUARTERLY FORM N-Q PORTFOLIO SCHEDULE
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.
- --------------------------------------------------------------------------------
30
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TRUSTEES
Richard Q. Armstrong Richard R. Burt
CHAIRMAN Meyer Feldberg
William D. White
Margo N. Alexander
David J. Beaubien
PRINCIPAL OFFICERS
W. Douglas Beck Thomas Disbrow
PRESIDENT VICE PRESIDENT AND TREASURER
Mark F. Kemper
VICE PRESIDENT AND SECRETARY
INVESTMENT ADVISOR, ADMINISTRATOR
AND PRINCIPAL UNDERWRITER
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, New York 10019-6114
THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE
PORTFOLIO WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN
OPINION THEREON.
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.
(C) 2005 UBS GLOBAL ASSET MANAGEMENT (US) INC. ALL RIGHTS RESERVED.
[UBS LOGO] --------------------
Presorted Standard
UBS GLOBAL ASSET MANAGEMENT (US) INC. US Postage
51 West 52nd Street PAID
New York, New York 10019-6114 Smithtown, NY
Permit 700
--------------------
ITEM 2. CODE OF ETHICS.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the registrant.
ITEM 6. SCHEDULE OF INVESTMENTS.
Included as part of the report to shareholders filed under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant's Board has established a Nominating and Corporate Governance
Committee. The Nominating and Corporate Governance Committee will consider
nominees recommended by shareholders if a vacancy occurs among those board
members who are not "interested persons" as defined in Section 2(a)(19) of the
Investment Company Act of 1940, as amended. In order to recommend a nominee, a
shareholder should send a letter to the chairperson of the Nominating and
Corporate Governance Committee, Richard R. Burt, care of the Secretary of the
registrant at UBS Global Asset Management (US) Inc., 51 West 52nd Street, New
York, New York 10019-6114, 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 registrant's most
recent fiscal half-year 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 - Form N-CSR disclosure requirement not applicable to
this filing of a semi-annual report.
(a) (2) Certifications of principal executive officer and principal
financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 is 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 is
attached hereto as Exhibit EX-99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
UBS Series Trust
By: /s/ W. Douglas Beck
--------------------
W. Douglas Beck
President
Date: September 7, 2005
--------------------
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/ W. Douglas Beck
--------------------
W. Douglas Beck
President
Date: September 7, 2005
--------------------
By: /s/ Thomas Disbrow
--------------------
Thomas Disbrow
Vice President and Treasurer
Date: September 7, 2005
--------------------