Ex-8
FORM OF OPINION
, 1998
Board of Directors
UBS Private Investor Funds, Inc. UBS International Equity Fund
200 Clarendon Street
Boston, MA 02116
Board of Trustees
The Brinson Funds Non-U.S. Equity Fund
209 South LaSalle Street
Chicago, IL 60604
Re: AGREEMENT AND PLAN OF REORGANIZATION, DATED AS OF THE DAY OF
, 1998, BY AND BETWEEN UBS PRIVATE INVESTOR FUNDS, INC. (THE
"CORPORATION") ON BEHALF OF THE UBS INTERNATIONAL EQUITY FUND
("ACQUIRED FUND") AND THE BRINSON FUNDS (THE "TRUST") ON BEHALF OF
NON-U.S. EQUITY FUND ("ACQUIRING FUND")
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Ladies and Gentlemen:
You have requested our opinion as to certain federal income tax
consequences of the reorganization of Acquired Fund whereby, Acquired Fund will
transfer substantially all of its property, assets, and goodwill and liabilities
to Acquiring Fund in exchange solely for Class I Shares of Acquiring Fund (the
"Acquiring Fund Shares"), followed by the distribution by Acquired Fund of
Acquiring Fund Shares to the shareholders of Acquired Fund, the cancellation of
all of the outstanding Shares of beneficial interest of Acquired Fund (the
"Acquired Fund Shares") and the liquidation of Acquired Fund (the
"Reorganization").
, 1998
Page 2
In rendering our opinion, we have reviewed and relied upon (a) the
Agreement and Plan of Reorganization, dated as of the th day of
, 1998, by and between the Corporation and the Trust ("Agreement"), (b) the
proxy materials provided to stockholders of Acquired Fund in connection with the
Special Meeting of Stockholders of Acquired Fund held on
, 1998, (c) certain representations concerning the Reorganization made to us by
Custodian Funds and the Acquired Fund in a letter dated ,
1998 (the "Representation Letter"), (d) all other documents, financial and other
reports and corporate minutes which we deemed relevant or appropriate, and (e)
such statutes, regulations, rulings and decisions as we deemed material to the
rendition of this opinion. All terms used herein, unless otherwise defined, are
used as defined in the Agreement.
For purposes of this opinion, we have assumed that Acquired Fund on the
effective date of the Reorganization satisfies, and following the
Reorganization, Acquiring Fund will continue to satisfy, the requirements of
subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), for
qualification as a regulated investment company.
Under regulations to be prescribed by the Secretary of Treasury under
Section 1276(d) of the Code, certain transfers of market discount bonds will be
excepted from the requirement that accrued market discount be recognized on
disposition of a market discount bond under Section 1276(a) of the Code. Such
regulations are to provide, in part, that accrued market discount will not be
included in income if no gain is recognized under Section 361(a) of the Code
where a bond is transferred in an exchange qualifying as a tax-free
reorganization. As of the date hereof, the Secretary has not issued any
regulations under Section 1276 of the Code.
Based on the foregoing and provided the Reorganization is carried out in
accordance with the applicable laws of the State of Maryland and the State of
Delaware, the Agreement and the Representation Letter, it is our opinion that:
1. The Reorganization will constitute a tax-free reorganization within the
meaning of Section 368(a)(1)(C) of the Code, and Acquired Fund and Acquiring
Fund will each be a party to the reorganization within the meaning of Section
368(b) of the Code.
2. No gain or loss will be recognized by Acquired Fund upon the transfer
of all of its assets to Acquiring Fund in exchange solely for Acquiring Fund
Shares pursuant to Section 361(a) and Section 357(a) of the Code. We express no
opinion as to whether any accrued market discount will be required to be
recognized as ordinary income pursuant to Section 1276 of the Code.
3. No gain or loss will be recognized by Acquiring Fund upon the receipt
by it of all of the assets of Acquired Fund in exchange solely for Acquiring
Fund Shares pursuant to Section 1032(a) of the Code.
4. The basis of the assets of Acquired Fund received by Acquiring Fund
will be the same as the basis of such assets to Acquired Fund immediately prior
to the exchange pursuant to Section 362(b) of the Code.
5. The holding period of the assets of Acquired Fund received by Acquiring
Fund will include the period during which such assets were held by Acquired Fund
pursuant to Section 1223(2) of the Code.
, 1998
Page 3
6. No gain or loss will be recognized by the stockholders of Acquired Fund
upon the exchange of their Acquired Fund Shares for Acquiring Fund Shares
(including fractional shares to which they may be entitled), pursuant to Section
354(a) of the Code.
7. The basis of the Acquiring Fund Shares received by the stockholders of
Acquired Fund (including fractional shares to which they may be entitled) will
be the same as the basis of the Acquired Fund Shares exchanged therefor pursuant
to Section 358(a)(1) of the Code.
8. The holding period of the Acquiring Fund Shares received by the
stockholders of Acquired Fund (including fractional shares to which they may be
entitled) will include the holding period of the Acquired Fund Shares
surrendered in exchange therefor, provided that the Acquired Fund Shares were
held as a capital asset on the effective date of the Reorganization, pursuant to
Section 1223(1) of the Code.
9. Acquiring Fund will succeed to and take into account as of the date of
the proposed transfer (as defined in Section 1.381(b)-1(b) of the Income Tax
Regulations) the items of Acquired Fund described in Section 381(c) of the Code,
subject to the conditions and limitations specified in Sections 381(b) and (c),
382, 383 and 384 of the Code.
Our opinion is based upon the Code, the applicable Treasury Regulations
promulgated thereunder, the present position of the Internal Revenue Service as
set forth in published revenue rulings and revenue procedures, present
administrative positions of the Internal Revenue Service, and existing judicial
decisions, all of which are subject to change either prospectively or
retroactively. We do not undertake to make any continuing analysis of the facts
or relevant law following the date of this letter.
Our opinion is conditioned upon the performance by Acquiring Fund and
Acquired Fund of their undertakings in the Agreement and the Representation
Letter.
This opinion is being rendered to Acquiring Fund and Acquired Fund and may
be relied upon only by such funds and the stockholders of each.
Very truly yours,
STRADLEY, RONON, STEVENS & YOUNG, LLP
By:___________________________________
William P. Zimmerman, a Partner