<Page>
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: 811-6292
--------------------------------------------
UBS INVESTMENT TRUST
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
51 West 52nd Street, New York, New York 10019-6114
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Amy R. Doberman
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
1775 I Street, N.W.
Washington, DC 20006-2401
Registrant's telephone number, including area code: 212-882 5000
Date of fiscal year end: August 31, 2003
Date of reporting period: August 31, 2003
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
[UBS GLOBAL ASSET MANAGEMENT LOGO]
UBS TACTICAL ALLOCATION FUND
ANNUAL REPORT
AUGUST 31, 2003
<Page>
UBS TACTICAL ALLOCATION FUND
October 15, 2003
DEAR SHAREHOLDER,
We present you with the annual report for UBS Tactical Allocation Fund for the
fiscal year ended August 31, 2003.
PERFORMANCE
Over the fiscal year ended August 31, 2003, UBS Tactical Allocation Fund's Class
A shares returned 10.99% (the Fund's Class A shares returned 4.89% after the
deduction of the maximum sales charge) versus the S&P 500 Index, which returned
12.07%. (Returns over various time periods are shown in the "Performance at a
Glance" table on page 4. Please note that the returns shown do not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or on the
redemption of Fund shares.)
AN INTERVIEW WITH PORTFOLIO MANAGER KIRK BARNEBY
Q. HOW WOULD YOU DESCRIBE THE MARKET ENVIRONMENT DURING THE ONE YEAR ENDED
AUGUST 31, 2003?
A. Despite lackluster economic growth in the US, the equity market posted
positive results during the fiscal year. Strong rallies in the fourth quarter of
2002 and in the second quarter of 2003 more than offset the market's weakness at
other times during the reporting period. During a year in which investor risk
aversion ran high, the rally that occurred in the second quarter of 2003 was
significant in that it appeared to underscore an important change in investor
psychology. With the conclusion of major military action in Iraq, a key
uncertainty that had weighed the markets down was eliminated. Investors grew
increasingly optimistic that a sustainable economic recovery was possible, and
thus more willing to take on the greater risk associated with stock investing.
Q. HOW WAS THE FUND ALLOCATED?
A. We maintained a 100% allocation to equities throughout the reporting period.
During periods of market strength, this allocation led the Fund to rally along
with the overall equity market. Likewise, it led the Fund to decline during
periods of market weakness.
[SIDENOTE]
UBS TACTICAL ALLOCATION FUND
INVESTMENT GOAL:
Total return consisting of long-term capital appreciation and current income.
PORTFOLIO MANAGER:
Kirk Barneby,
UBS Global Asset
Management (US) Inc.
COMMENCEMENT:
Class A--May 10, 1993
Class B--January 30, 1996
Class C--July 22, 1992
Class Y--May 10, 1993
DIVIDEND PAYMENTS:
Annually, if any.
1
<Page>
Q. WHAT WERE THE FACTORS THAT DROVE A 100% ALLOCATION TO EQUITIES?
A. We adjust the Fund's exposure to stocks based on indications generated by the
Tactical Allocation Model, which measures the attractiveness of stocks based on
an unemotional, quantitative tool that helps determine whether investors are
being adequately compensated for the risk of owning stocks. The decision process
focuses on earnings or corporate profits, interest rates and the current level
of equity prices.
Q. WHAT IS YOUR OUTLOOK FOR THE MARKET?
A. As of August 31, 2003, the Fund continued to be fully invested in the equity
market. We currently believe that the market continues to present a buying
opportunity for long-term investors. Past precedent would lead us to believe
this is the case as well. The behavior of the economy has historically been one
of the basic determinants of stock market performance--an environment of
economic growth has historically engendered rising stock prices. Economic
indicators currently suggest that the economy is gaining momentum, as evidenced
by the 3.3% gross domestic product (GDP) growth rate in real terms during the
second quarter of 2003, up from 1.4% during the first quarter of the year. In
addition, the manufacturing sector is expanding at a solid pace, the recent tax
cuts appear to be working, and it looks as if the Federal Reserve Board will
maintain its accommodative monetary policy for the foreseeable future.
Furthermore, the market appears to be recovering from the low it posted in
October 2002. The domination of fear over investor psychology in 2002 clearly
produced a plunge in stock prices that created opportunities for long-term
equity investors. We believe that if investor psychology continues to improve,
along with sustainable economic growth, a reversal of this emotion-driven
sell-off could well produce higher equity prices.
Of course, bear in mind that past market behavior does not guarantee a similar
recovery or performance in the future.
2
<Page>
Our ultimate objective in managing your investments is to help you successfully
meet your financial goals. We thank you for your continued support, and welcome
any comments or questions you may have. For more information on UBS Tactical
Allocation Fund or any UBS fund,* please contact your financial advisor, or
visit us at www.ubs.com.
Sincerely,
/s/ Joseph A. Varnas /s/ T. Kirkham Barneby
Joseph A. Varnas T. Kirkham Barneby
PRESIDENT PORTFOLIO MANAGER
UBS Tactical Allocation Fund UBS Tactical Allocation Fund
MANAGING DIRECTOR MANAGING DIRECTOR
UBS Global Asset Management (US) Inc. UBS Global Asset Management (US) Inc.
This letter is intended to assist shareholders in understanding how the Fund
performed during the fiscal year ended August 31, 2003, and reflects our views
at the time of its writing. Of course, these views may change in response to
changing circumstances, and they do not guarantee the future performance of the
markets or the Fund. We encourage you to consult your financial advisor
regarding your personal investment program.
* Mutual funds are sold by prospectus only. The prospectus contains more
complete information regarding risks, charges and expenses, and should be
read carefully before investing.
3
<Page>
PERFORMANCE AT A GLANCE
Comparison of the change in value of a $10,000 investment in UBS Tactical
Allocation Fund (Class C) and the S&P 500 Index from August 31, 1993 through
August 31, 2003.
[CHART]
<Table>
<Caption>
UBS TACTICAL ALLOCATION FUND S&P 500 INDEX
8/31/1993 $ 9,897 $ 10,000
9/30/1993 $ 9,813 $ 9,923
10/31/1993 $ 9,997 $ 10,129
11/30/1993 $ 9,886 $ 10,032
12/31/1993 $ 9,991 $ 10,153
1/31/1994 $ 10,317 $ 10,499
2/28/1994 $ 10,021 $ 10,214
3/31/1994 $ 9,570 $ 9,768
4/30/1994 $ 9,674 $ 9,894
5/31/1994 $ 9,814 $ 10,056
6/30/1994 $ 9,556 $ 9,809
7/31/1994 $ 9,861 $ 10,132
8/31/1994 $ 10,240 $ 10,547
9/30/1994 $ 9,968 $ 10,289
10/31/1994 $ 10,183 $ 10,520
11/30/1994 $ 9,789 $ 10,137
12/31/1994 $ 9,863 $ 10,288
1/31/1995 $ 10,081 $ 10,554
2/28/1995 $ 10,420 $ 10,966
3/31/1995 $ 10,709 $ 11,289
4/30/1995 $ 11,000 $ 11,622
5/31/1995 $ 11,413 $ 12,086
6/30/1995 $ 11,650 $ 12,367
7/31/1995 $ 12,022 $ 12,777
8/31/1995 $ 12,039 $ 12,809
9/30/1995 $ 12,535 $ 13,350
10/31/1995 $ 12,470 $ 13,302
11/30/1995 $ 13,005 $ 13,886
12/31/1995 $ 13,226 $ 14,153
1/31/1996 $ 13,644 $ 14,635
2/29/1996 $ 13,740 $ 14,771
3/31/1996 $ 13,853 $ 14,913
4/30/1996 $ 14,036 $ 15,133
5/31/1996 $ 14,375 $ 15,523
6/30/1996 $ 14,410 $ 15,582
7/31/1996 $ 13,748 $ 14,894
8/31/1996 $ 14,027 $ 15,208
9/30/1996 $ 14,793 $ 16,064
10/31/1996 $ 15,184 $ 16,507
11/30/1996 $ 16,307 $ 17,755
12/31/1996 $ 15,959 $ 17,403
1/31/1997 $ 16,929 $ 18,490
2/28/1997 $ 17,026 $ 18,635
3/31/1997 $ 16,300 $ 17,869
4/30/1997 $ 17,262 $ 18,936
5/31/1997 $ 18,284 $ 20,089
6/30/1997 $ 19,079 $ 20,989
7/31/1997 $ 20,574 $ 22,659
8/31/1997 $ 19,385 $ 21,390
9/30/1997 $ 20,417 $ 22,561
10/31/1997 $ 19,700 $ 21,808
11/30/1997 $ 20,583 $ 22,817
12/31/1997 $ 20,907 $ 23,209
1/31/1998 $ 21,119 $ 23,466
2/28/1998 $ 22,606 $ 25,158
3/31/1998 $ 23,733 $ 26,447
4/30/1998 $ 23,874 $ 26,713
5/31/1998 $ 23,557 $ 26,253
6/30/1998 $ 24,464 $ 27,320
7/31/1998 $ 24,173 $ 27,029
8/31/1998 $ 20,643 $ 23,121
9/30/1998 $ 21,937 $ 24,602
10/31/1998 $ 23,689 $ 26,603
11/30/1998 $ 25,098 $ 28,215
12/31/1998 $ 26,506 $ 29,841
1/31/1999 $ 27,566 $ 31,089
2/28/1999 $ 26,667 $ 30,123
3/31/1999 $ 27,701 $ 31,328
4/30/1999 $ 28,744 $ 32,541
5/31/1999 $ 28,025 $ 31,773
6/30/1999 $ 29,535 $ 33,536
7/31/1999 $ 28,582 $ 32,489
8/31/1999 $ 28,402 $ 32,329
9/30/1999 $ 27,584 $ 31,443
10/31/1999 $ 29,292 $ 33,432
11/30/1999 $ 29,849 $ 34,112
12/31/1999 $ 31,177 $ 36,122
1/31/2000 $ 30,305 $ 34,307
2/29/2000 $ 30,058 $ 33,657
3/31/2000 $ 31,544 $ 36,950
4/30/2000 $ 31,095 $ 35,838
5/31/2000 $ 30,810 $ 35,103
6/30/2000 $ 31,205 $ 35,969
7/31/2000 $ 30,810 $ 35,406
8/31/2000 $ 32,251 $ 37,605
9/30/2000 $ 31,462 $ 35,620
10/31/2000 $ 31,425 $ 35,469
11/30/2000 $ 30,241 $ 32,673
12/31/2000 $ 30,262 $ 32,833
1/31/2001 $ 31,324 $ 33,998
2/28/2001 $ 28,424 $ 30,898
3/31/2001 $ 26,586 $ 28,941
4/30/2001 $ 28,618 $ 31,190
5/31/2001 $ 28,771 $ 31,399
6/30/2001 $ 28,036 $ 30,635
7/31/2001 $ 27,720 $ 30,333
8/31/2001 $ 25,953 $ 28,434
9/30/2001 $ 23,820 $ 26,138
10/31/2001 $ 24,238 $ 26,637
11/30/2001 $ 26,066 $ 28,680
12/31/2001 $ 26,258 $ 28,931
1/31/2002 $ 25,847 $ 28,509
2/28/2002 $ 25,313 $ 27,959
3/31/2002 $ 26,227 $ 29,011
4/30/2002 $ 24,595 $ 27,252
5/31/2002 $ 24,379 $ 27,051
6/30/2002 $ 22,614 $ 25,124
7/31/2002 $ 20,807 $ 23,166
8/31/2002 $ 20,920 $ 23,318
9/30/2002 $ 18,621 $ 20,784
10/31/2002 $ 20,232 $ 22,613
11/30/2002 $ 21,392 $ 23,944
12/31/2002 $ 20,099 $ 22,538
1/31/2003 $ 19,545 $ 21,947
2/28/2003 $ 19,226 $ 21,618
3/31/2003 $ 19,391 $ 21,828
4/30/2003 $ 20,951 $ 23,626
5/31/2003 $ 22,029 $ 24,871
6/30/2003 $ 22,285 $ 25,188
7/31/2003 $ 22,645 $ 25,632
8/31/2003 $ 23,055 $ 26,132
</Table>
The graph depicts the performance of UBS Tactical Allocation Fund Class C shares
versus the S&P 500 Index over the 10 years ended August 31, 2003. The
performance of the other share classes will vary from the performance of the
class shown based on the difference in sales charges and fees paid by
shareholders investing in different share classes. It is important to note that
the Fund is a professionally managed portfolio, while the Index is not available
for investment and is unmanaged. The comparison is shown for illustrative
purposes only.
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 8/31/03
<Table>
<Caption>
SINCE
6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION ^
- ------------------------------------------------------------------------------------------------------
Before Deducting Class A* 20.36% 10.99% 3.00% 9.64% 9.87%
Maximum Sales Charge Class B** 19.84 10.18 2.22 N/A 7.45
Class C*** 19.91 10.21 2.23 8.82 9.17
Class Y**** 20.57 11.39 3.33 9.95 10.19
After Deducting Class A* 13.75 4.89 1.84 9.02 9.27
Maximum Sales Charge Class B** 14.84 5.18 1.87 N/A 7.45
Class C*** 17.72 8.09 2.03 8.71 9.07
S&P 500 Index 20.88 12.07 2.48 10.08 10.54
Lipper Flexible Portfolio
Funds Median 14.16 9.44 3.38 7.38 8.00
</Table>
For most recent quarter-end performance, please refer to the "Average Annual
Total Return" table on page 7.
^ Since inception returns are calculated as of the commencement of issuance
on May 10, 1993 for Class A and Y shares, January 30, 1996 for Class B
shares, and July 22, 1992 for Class C shares. Since inception return for
the Index is shown as of July 22, 1992, which is the inception date of the
oldest share class (Class C). Since inception return for the Lipper Median
is shown as of July 23, 1992, which is the closest available date to the
inception of the oldest share class (Class C).
* Maximum sales charge for Class A shares is 5.5%. Class A shares bear
ongoing 12b-1 service fees.
** Maximum contingent deferred sales charge for Class B shares is 5% and is
reduced to 0% after a maximum of six years. Class B shares bear ongoing
12b-1 distribution and service fees.
*** Maximum sales charge for Class C shares is 2%, consisting of a maximum
sales charge of 1% imposed on purchases and a maximum contingent deferred
sales charge of 1%, which is reduced to 0% after one year. Class C shares
bear ongoing 12b-1 distribution and service fees.
**** The Fund offers Class Y shares to a limited group of eligible investors.
Class Y shares do not bear initial or contingent deferred sales charges or
ongoing 12b-1 distribution and service fees.
The S&P 500 Index is an unmanaged, weighted index comprising 500 widely held
common stocks varying in composition and is not available for direct investment.
Past performance does not predict future performance. Performance results assume
reinvestment of all dividends and capital gains distributions, however, the
performance information provided does not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
The investment return and the principal value of an investment in the Fund will
fluctuate, so that an investor's shares, when redeemed, may be worth more or
less than their original cost. Total returns for periods of less than one year
have not been annualized.
4
<Page>
PORTFOLIO STATISTICS
<Table>
<Caption>
CHARACTERISTICS* 8/31/03 2/28/03 8/31/02
- -----------------------------------------------------------------------------------------
Net Assets (bln) $ 1.7 $ 1.6 $ 2.0
- -----------------------------------------------------------------------------------------
Number of Securities 470 469 470
- -----------------------------------------------------------------------------------------
Stocks 100% 100% 100%
=========================================================================================
<Caption>
TOP FIVE
EQUITY SECTORS* 8/31/03 2/28/03 8/31/02
- -----------------------------------------------------------------------------------------
Financials 20.4% Financials 20.3% Financials 21.0%
Information
Technology 16.5 Health Care 15.2 Health Care 14.7
Consumer Information Information
Discretionary 14.4 Technology 15.0 Technology 13.7
Consumer Consumer
Health Care 13.5 Discretionary 13.4 Discretionary 13.6
Industrials 11.8 Industrials 11.4 Industrials 12.1
- -----------------------------------------------------------------------------------------
TOTAL 76.6% 75.3% 75.1%
=========================================================================================
<Caption>
TOP TEN
EQUITY HOLDINGS* 8/31/03 2/28/03 8/31/02
- -----------------------------------------------------------------------------------------
General Electric 3.2% Microsoft 3.3% General Electric 3.5%
Microsoft 3.1 General Electric 3.1 Microsoft 3.1
Wal-Mart Stores 2.8 ExxonMobil 2.9 ExxonMobil 2.8
ExxonMobil 2.7 Wal-Mart Stores 2.7 Wal-Mart Stores 2.8
Pfizer 2.5 Pfizer 2.4 Pfizer 2.4
Citigroup 2.4 Citigroup 2.2 Citigroup 2.0
American
Intel 2.0 Johnson & Johnson 2.0 International Group 1.9
American
International Group 1.7 IBM 1.7 Johnson & Johnson 1.9
American
International Group
Johnson & Johnson 1.6 1.7 IBM 1.5
IBM 1.5 Merck 1.5 Coca-Cola 1.5
- -----------------------------------------------------------------------------------------
TOTAL 23.5% 23.5% 23.4%
=========================================================================================
</Table>
* Weightings represent percentages of net assets as of the dates indicated.
Changes in sector weightings and equity holdings reflect changes in the S&P
500 Index for the fiscal year ended 8/31/03. Weightings also reflect the
Fund's current stock allocation.
5
<Page>
Performance Results (unaudited)
<Table>
<Caption>
TOTAL RETURN(1)
--------------------
NET ASSET VALUE 12 MONTHS 6 MONTHS
--------------------------------- ENDED ENDED
08/31/03 02/28/03 08/31/02 08/31/03 08/31/03
- -------------------------------------------------------------------------------
Class A Shares $ 23.00 $ 19.11 $ 20.80 10.99% 20.36%
Class B Shares 22.29 18.60 20.23 10.18 19.84
Class C Shares 22.46 18.73 20.38 10.21 19.91
</Table>
PERFORMANCE SUMMARY CLASS A SHARES
<Table>
<Caption>
NET ASSET VALUE
-------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
- --------------------------------------------------------------------------------
05/10/93-12/31/93 $ 12.90 $ 13.49 $ 0.0440 $ 0.1980 6.48%
1994 13.49 12.20 0.9720 0.2340 (0.59)
1995 12.20 15.16 1.0555 0.2407 35.12
1996 15.16 18.21 0.0811 0.1358 21.53
1997 18.21 23.73 0.1769 0.1204 32.00
1998 23.73 29.52 0.5825 0.1745 27.77
1999 29.52 34.24 0.6966 0.0202 18.49
2000 34.24 29.90 2.9116 0.7711 (2.21)
2001 29.90 25.98 0.1369 0.0320 (12.54)
2002 25.98 19.96 -- 0.0771 (22.88)
01/01/03-08/31/03 19.96 23.00 -- -- 15.23
- --------------------------------------------------------------------------------
TOTALS: $ 6.6571 $ 2.0038
- --------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 08/31/03: 164.03%
===============================================================================
</Table>
PERFORMANCE SUMMARY CLASS B SHARES
<Table>
<Caption>
NET ASSET VALUE
-------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
- --------------------------------------------------------------------------------
01/30/96-12/31/96 $ 15.54 $ 18.18 $ 0.0811 $ 0.0879 18.06%
1997 18.18 23.63 0.1769 0.0116 31.05
1998 23.63 29.32 0.5825 0.0177 26.77
1999 29.32 33.76 0.6966 -- 17.59
2000 33.76 29.43 2.9116 0.5150 (2.96)
2001 29.43 25.40 0.1369 -- (13.22)
2002 25.40 19.44 -- -- (23.46)
01/01/03-08/31/03 19.44 22.29 -- -- 14.66
- --------------------------------------------------------------------------------
TOTALS: $ 4.5856 $ 0.6322
- --------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 08/31/03: 72.52%
===============================================================================
</Table>
(1) Figures assume reinvestment of all dividends and capital gain distributions
at net asset value on the ex-dividend dates and do not include sales
charges; results for each class would be lower if sales charges were
included. Total investment return for periods of less than one year has not
been annualized. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund
shares.
The data above represents past performance of the Fund's shares, which is
no guarantee of future results. The principal value of an investment in the
Fund will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
6
<Page>
PERFORMANCE SUMMARY CLASS C SHARES
<Table>
<Caption>
NET ASSET VALUE
-------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
- --------------------------------------------------------------------------------
07/22/92-12/31/92 $ 12.00 $ 12.72 $ 0.0020 $ 0.0790 6.67%
1993 12.72 13.51 0.0440 0.1340 7.64
1994 13.51 12.23 0.9720 0.1300 (1.28)
1995 12.23 15.20 1.0555 0.1259 34.09
1996 15.20 18.26 0.0811 0.0008 20.66
1997 18.26 23.75 0.1661 -- 31.01
1998 23.75 29.49 0.5825 0.0034 26.78
1999 29.49 33.97 0.6966 -- 17.62
2000 33.97 29.64 2.9116 0.5167 (2.94)
2001 29.64 25.58 0.1369 -- (13.23)
2002 25.58 19.58 -- -- (23.46)
01/01/03-08/31/03 19.58 22.46 -- -- 14.71
- --------------------------------------------------------------------------------
TOTALS: $ 6.6483 $ 0.9898
- --------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 08/31/03: 164.95%
===============================================================================
</Table>
AVERAGE ANNUAL TOTAL RETURN(2)
<Table>
<Caption>
% RETURN WITHOUT DEDUCTING % RETURN AFTER DEDUCTING
MAXIMUM SALES CHARGE MAXIMUM SALES CHARGE
-------------------------- ------------------------
CLASS CLASS
- -----------------------------------------------------------------------------------
A* B** C*** A* B** C***
- -----------------------------------------------------------------------------------
Twelve Months Ended 09/30/03 23.25 22.27 22.33 16.46 17.27 20.13
Five Years Ended 09/30/03 1.52 0.74 0.75 0.38 0.40 0.55
Ten Years Ended 09/30/03 9.61 N/A 8.79 8.99 N/A 8.68
Commencement of Operations
Through 09/30/03+ 9.67 7.21 8.98 9.08 7.21 8.88
- -----------------------------------------------------------------------------------
</Table>
(1) Figures assume reinvestment of all dividends and capital gain distributions
at net asset value on the ex-dividend dates and do not include sales
charges; results for each class would be lower if sales charges were
included. Total investment return for periods of less than one year has not
been annualized. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund
shares.
(2) Figures assume reinvestment of all dividends and capital gain distributions
at net asset value on the ex-dividend dates. Returns do not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or the
redemption of Fund shares.
* Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing
12b-1 service fees.
** Maximum contingent deferred sales charge for Class B shares is 5% and is
reduced to 0% after 6 years. Class B shares bear ongoing 12b-1 distribution
and service fees.
*** Maximum sales charge for Class C shares is 2%, consisting of a maximum sales
charge imposed on purchases of 1% and a maximum contingent deferred sales
charge of 1%, which is reduced to 0% after one year. Class C shares bear
ongoing 12b-1 distribution and service fees.
+ Commencement of issuance of shares dates are May 10, 1993, January 30, 1996
and July 22, 1992 for Class A, Class B and Class C shares, respectively.
Note: The Fund offers Class Y shares to a limited group of eligible
investors. For the year ended August 31, 2003 and since inception, May 10,
1993 through August 31, 2003, Class Y shares had a total return of 11.39%
and 172.02%, respectively. For the one year and five year periods ended
September 30, 2003 and since inception, May 10, 1993 through September 30,
2003, Class Y shares have an average annual return of 23.65%, 1.84% and
9.99%, respectively. Class Y shares do not have initial or contingent
deferred sales charges or ongoing 12b-1 distribution and service fees.
Returns do not reflect the deduction of taxes that a shareholder would pay
on Fund distributions or the redemption of Fund shares.
7
<Page>
UBS TACTICAL ALLOCATION FUND
Portfolio of Investments -- August 31, 2003
COMMON STOCKS--99.91%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.86%
Boeing Co. 154,300 $ 5,769,277
General Dynamics Corp. 36,400 3,134,404
Goodrich Corp. 22,900 596,087
Honeywell
International, Inc. 158,200 4,586,218
Lockheed Martin Corp. 82,800 4,241,844
Northrop Grumman
Corp. 33,682 3,215,958
Raytheon Co. 75,900 2,433,354
Rockwell Collins, Inc. 33,900 916,995
United Technologies
Corp. 85,400 6,853,350
- ------------------------------------------------------------------------
31,747,487
========================================================================
AIR FREIGHT & COURIERS--0.98%
FedEx Corp. 55,400 3,717,340
United Parcel Service,
Inc., Class B 206,700 12,972,492
- ------------------------------------------------------------------------
16,689,832
========================================================================
AIRLINES--0.16%
Delta Air Lines, Inc. 25,000 321,750
Southwest Airlines Co. 141,000 2,409,690
- ------------------------------------------------------------------------
2,731,440
========================================================================
AUTO COMPONENTS--0.20%
Dana Corp. 30,000 462,600
Delphi Automotive
Systems Corp. 113,100 1,024,686
Goodyear Tire & Rubber
Co.(1) 40,400 287,648
Johnson Controls, Inc. 17,100 1,692,900
- ------------------------------------------------------------------------
3,467,834
========================================================================
AUTOMOBILES--0.48%
Ford Motor Co. 341,000 3,941,960
General Motors Corp. 104,600 4,299,060
- ------------------------------------------------------------------------
8,241,020
========================================================================
BANKS--7.24%
AmSouth Bancorp 66,800 1,438,872
Bank of America Corp. 273,200 21,651,100
Bank of New York Co.,
Inc. 141,800 4,171,756
Bank One Corp. 209,600 8,272,912
BB&T Corp. 89,300 $ 3,261,236
Charter One Financial,
Inc. 43,200 1,339,200
Comerica, Inc. 33,800 1,667,692
Fifth Third Bancorp 104,900 6,147,140
First Tennessee National
Corp. 24,000 992,400
FleetBoston Financial
Corp. 192,700 5,701,993
Golden West Financial
Corp. 27,700 2,389,679
Huntington Bancshares,
Inc. 46,300 926,000
KeyCorp 80,400 2,189,292
Marshall & Ilsley Corp.(1) 43,000 1,333,000
Mellon Financial Corp. 79,900 2,504,865
National City Corp. 113,100 3,583,008
North Fork Bancorp, Inc. 30,700 1,036,739
Northern Trust Corp. 41,000 1,731,840
PNC Financial Services
Group 52,500 2,499,000
Regions Financial Corp. 42,200 1,487,972
SouthTrust Corp. 63,400 1,837,966
SunTrust Banks, Inc. 51,400 3,142,082
Synovus Financial Corp. 57,700 1,410,765
U.S. Bancorp, Inc. 349,900 8,362,610
Union Planters Corp. 38,700 1,234,530
Wachovia Corp. 245,200 10,335,180
Washington Mutual,
Inc. 169,200 6,595,416
Wells Fargo & Co. 305,400 15,312,756
Zions Bancorp 17,400 969,180
- ------------------------------------------------------------------------
123,526,181
========================================================================
BEVERAGES--2.64%
Anheuser-Busch Cos.,
Inc. 152,000 7,834,080
Brown-Forman Corp.,
Class B 11,400 901,056
Coca-Cola Co.(1) 450,100 19,588,352
Coca-Cola Enterprises,
Inc. 83,900 1,551,311
</Table>
8
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------
BEVERAGES--(CONCLUDED)
Pepsi Bottling Group, Inc. 51,500 $ 1,242,180
PepsiCo, Inc. 313,400 13,958,836
- ------------------------------------------------------------------------
45,075,815
========================================================================
BIOTECHNOLOGY--1.26%
Amgen, Inc.* 230,700 15,203,130
Biogen, Inc.* 27,900 1,100,934
Chiron Corp.* 34,700 1,763,454
Genzyme Corp.* 39,900 1,881,285
Medimmune, Inc.* 46,700 1,628,429
- ------------------------------------------------------------------------
21,577,232
========================================================================
BUILDING PRODUCTS--0.19%
American Standard Cos.,
Inc.* 13,800 1,106,622
Masco Corp. 88,600 2,196,394
- ------------------------------------------------------------------------
3,303,016
========================================================================
CHEMICALS--1.56%
Air Products &
Chemicals, Inc. 42,800 2,025,296
Dow Chemical Co. 168,900 5,832,117
E.I. du Pont de
Nemours & Co. 183,700 8,218,738
Eastman Chemical Co. 17,500 626,675
Ecolab, Inc. 49,900 1,286,921
Engelhard Corp. 25,800 724,206
International Flavors &
Fragrances, Inc. 18,900 595,350
Monsanto Co. 50,500 1,298,355
PPG Industries, Inc. 32,300 1,773,593
Praxair, Inc. 30,300 1,933,746
Rohm & Haas Co. 42,400 1,540,392
Sigma-Aldrich Corp. 14,000 766,500
- ------------------------------------------------------------------------
26,621,889
========================================================================
COMMERCIAL SERVICES &
SUPPLIES--1.92%
Allied Waste Industries,
Inc.* 39,800 440,188
Apollo Group, Inc.,
Class A* 32,400 2,075,868
Automatic Data
Processing, Inc. 109,400 4,366,154
Avery Dennison Corp.(1) 21,600 $ 1,182,600
Cendant Corp.* 186,900 3,360,462
Cintas Corp. 32,500 1,297,725
Concord EFS, Inc.* 89,900 1,245,115
Convergys Corp.* 28,500 513,000
Donnelley, R.R. & Sons
Co. 24,800 623,472
Equifax, Inc. 26,800 614,792
First Data Corp. 136,700 5,249,280
Fiserv, Inc.* 35,500 1,379,175
H&R Block, Inc. 33,100 1,459,710
Monster Worldwide,
Inc.* 21,300 581,916
Paychex, Inc. 69,100 2,487,600
Pitney Bowes, Inc. 43,400 1,692,600
Robert Half
International, Inc.(1)* 33,700 749,488
Sabre Holdings Corp.,
Class A 27,900 631,098
Waste Management,
Inc. 107,900 2,871,219
- ------------------------------------------------------------------------
32,821,462
========================================================================
COMMUNICATIONS EQUIPMENT--2.53%
ADC Telecommunications,
Inc.* 157,100 399,034
Avaya, Inc.* 70,100 732,545
CIENA Corp.* 89,800 583,700
Cisco Systems, Inc.* 1,285,200 24,611,580
Comverse Technology,
Inc.* 35,800 590,342
Corning, Inc.* 232,400 1,917,300
JDS Uniphase Corp.* 266,200 915,728
Lucent Technologies,
Inc.(1)* 766,900 1,464,779
Motorola, Inc. 426,500 4,576,345
Qualcomm, Inc. 144,800 5,977,344
Scientific-Atlanta, Inc. 27,600 938,400
Tellabs, Inc.(1)* 79,000 515,870
- ------------------------------------------------------------------------
43,222,967
========================================================================
</Table>
9
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--3.82%
Apple Computer, Inc.* 67,900 $ 1,536,577
Dell, Inc.* 469,700 15,326,311
EMC Corp.* 401,400 5,117,850
Gateway, Inc.* 64,800 373,896
Hewlett-Packard Co. 559,200 11,139,264
IBM Corp. 316,100 25,923,361
Lexmark International
Group, Inc., Class A* 23,500 1,575,440
NCR Corp.* 19,100 554,091
Network Appliance,
Inc.* 62,800 1,407,348
Sun Microsystems, Inc.* 595,700 2,299,402
- ------------------------------------------------------------------------
65,253,540
========================================================================
CONSTRUCTION & ENGINEERING--0.04%
Fluor Corp. 16,300 600,492
========================================================================
CONSTRUCTION MATERIALS--0.05%
Vulcan Materials Co. 20,100 832,341
========================================================================
CONTAINERS & PACKAGING--0.15%
Ball Corp. 11,300 596,640
Pactiv Corp.* 32,400 650,592
Sealed Air Corp.* 15,900 773,694
Temple-Inland, Inc. 11,800 587,404
- ------------------------------------------------------------------------
2,608,330
========================================================================
DIVERSIFIED FINANCIALS--8.16%
American Express Co. 236,400 10,649,820
Bear Stearns Cos., Inc. 18,400 1,287,632
Capital One Financial
Corp.(1) 41,700 2,226,780
Charles Schwab Corp. 247,600 2,688,936
Citigroup, Inc. 940,100 40,753,335
Countrywide Credit
Industries, Inc. 24,200 1,641,970
Federal Home Loan
Mortgage Corp. 126,100 6,702,215
Federal National
Mortgage Association 179,300 11,616,847
Federated Investors,
Inc., Class B 21,300 625,368
Franklin Resources, Inc. 46,200 1,995,378
Goldman Sachs Group,
Inc. 85,500 $ 7,565,895
J.P. Morgan Chase &
Co. 371,600 12,716,152
Janus Capital Group, Inc. 45,600 787,512
Lehman Brothers
Holdings, Inc. 44,500 2,924,985
MBNA Corp. 234,000 5,461,560
Merrill Lynch & Co.,
Inc. 170,000 9,142,600
Moody's Corp. 27,200 1,410,592
Morgan Stanley & Co. 198,600 9,689,694
Principal Financial
Group, Inc. 59,600 1,875,016
Providian Financial
Corp.* 55,700 570,925
SLM Corp. 82,500 3,314,850
State Street Corp. 61,300 2,694,135
T. Rowe Price &
Associates, Inc. 22,600 960,500
- ------------------------------------------------------------------------
139,302,697
========================================================================
DIVERSIFIED TELECOMMUNICATION
SERVICES--3.00%
ALLTEL Corp. 57,000 2,610,600
AT&T Corp. 145,300 3,240,190
BellSouth Corp. 337,900 8,515,080
CenturyTel, Inc. 26,800 931,568
Citizens
Communications Co.* 54,400 620,160
Qwest Communications
International, Inc.* 315,700 1,404,865
SBC Communications,
Inc. 608,800 13,691,912
Sprint Corp. 164,800 2,434,096
Verizon
Communications 503,200 17,773,024
- ------------------------------------------------------------------------
51,221,495
========================================================================
ELECTRIC UTILITIES--2.12%
Ameren Corp. 29,900 1,270,750
American Electric
Power Co., Inc. 73,400 2,077,954
Cinergy Corp. 33,500 1,146,370
</Table>
10
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------
ELECTRIC UTILITIES--(CONCLUDED)
Consolidated Edison, Inc. 41,400 $ 1,636,542
Constellation Energy
Group, Inc. 31,300 1,139,007
Dominion Resources,
Inc. 56,400 3,416,712
DTE Energy Co. 32,600 1,138,066
Edison International,
Inc.* 61,400 1,158,004
Entergy Corp. 41,300 2,166,185
Exelon Corp. 59,200 3,486,880
FirstEnergy Corp. 55,200 1,615,152
FPL Group, Inc. 33,400 2,066,124
PG&E Corp.* 75,400 1,671,618
Pinnacle West Capital
Corp. 18,800 644,840
PPL Corp. 31,500 1,249,605
Progress Energy, Inc.(2)* 57,700 1,805,854
Public Service Enterprise
Group, Inc. 42,200 1,786,748
Southern Co. 130,700 3,709,266
TECO Energy, Inc.(1) 38,700 457,821
TXU Corp. 60,600 1,333,200
Xcel Energy, Inc. 75,900 1,111,935
- ------------------------------------------------------------------------
36,088,633
========================================================================
ELECTRICAL EQUIPMENT--0.47%
American Power
Conversion Corp.* 37,900 679,168
Cooper Industries, Ltd.,
Class A 18,500 941,465
Emerson Electric Co. 78,100 4,354,856
Molex, Inc. 36,200 1,065,004
Rockwell Automation,
Inc. 36,100 982,642
- ------------------------------------------------------------------------
8,023,135
========================================================================
ELECTRONIC EQUIPMENT &
INSTRUMENTS--0.48%
Agilent Technologies,
Inc.(1)* 87,400 2,125,568
Jabil Circuit, Inc.* 36,900 1,038,735
Millipore Corp.* 10,000 454,000
PerkinElmer, Inc. 25,400 420,116
Sanmina-SCI Corp.* 95,600 $ 858,488
Solectron Corp.* 156,100 925,673
Symbol Technologies,
Inc. 43,500 588,990
Tektronix, Inc.* 17,300 408,972
Thermo Electron Corp.* 31,700 722,443
Waters Corp.* 23,500 716,750
- ------------------------------------------------------------------------
8,259,735
========================================================================
ENERGY EQUIPMENT & SERVICES--0.81%
Baker Hughes, Inc. 62,800 2,101,288
BJ Services Co.* 29,800 1,113,626
Halliburton Co. 81,700 1,975,506
Nabors Industries, Inc.* 27,800 1,116,170
Noble Corp.* 25,700 929,826
Schlumberger Ltd. 106,400 5,267,864
Transocean Sedco Forex,
Inc.* 61,500 1,298,880
- ------------------------------------------------------------------------
13,803,160
========================================================================
FOOD & DRUG RETAILING--1.12%
Albertson's, Inc.(1) 70,600 1,484,012
CVS Corp. 72,800 2,373,280
Kroger Co.* 139,500 2,679,795
Safeway, Inc.* 82,000 2,001,620
SUPERVALU, Inc. 26,400 636,240
Sysco Corp. 119,000 3,743,740
Walgreen Co. 187,600 6,110,132
- ------------------------------------------------------------------------
19,028,819
========================================================================
FOOD PRODUCTS--1.22%
Archer-Daniels-
Midland Co. 121,200 1,681,044
Campbell Soup Co.(1) 76,300 1,846,460
ConAgra Foods, Inc. 99,900 2,197,800
General Mills, Inc.(1) 67,700 3,138,572
Heinz, H.J. & Co. 65,700 2,126,052
Hershey Foods Corp. 24,300 1,698,570
Kellogg Co. 74,800 2,508,044
McCormick & Co., Inc. 27,200 726,240
Sara Lee Corp. 144,000 2,733,120
Wrigley, Wm. Jr. Co. 41,100 2,180,355
- ------------------------------------------------------------------------
20,836,257
========================================================================
</Table>
11
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------
GAS UTILITIES--0.31%
El Paso Corp.(1) 114,600 $ 841,164
KeySpan Corp. 30,800 1,039,500
Kinder Morgan, Inc.(1) 23,100 1,230,075
NiSource, Inc. 51,600 997,944
Sempra Energy 39,400 1,172,150
- ------------------------------------------------------------------------
5,280,833
========================================================================
HEALTH CARE EQUIPMENT &
SUPPLIES--1.90%
Applera Corp. --
Applied Biosystems
Group 39,800 866,048
Baxter International,
Inc. 110,200 3,096,620
Becton, Dickinson &
Co. 47,200 1,724,688
Biomet, Inc. 47,800 1,421,094
Boston Scientific Corp.* 75,200 4,519,520
C.R. Bard, Inc. 10,000 670,000
Guidant Corp. 56,800 2,851,360
Medtronic, Inc. 222,900 11,051,382
St. Jude Medical, Inc.* 31,600 1,645,412
Stryker Corp. 36,400 2,759,120
Zimmer Holdings,
Inc.(1)* 36,200 1,872,988
- ------------------------------------------------------------------------
32,478,232
========================================================================
HEALTH CARE PROVIDERS &
SERVICES--1.69%
Aetna, Inc. 27,900 1,590,300
AmerisourceBergen
Corp. 20,800 1,210,768
Anthem, Inc.* 25,300 1,851,960
Cardinal Health, Inc. 82,000 4,668,260
CIGNA Corp. 26,200 1,249,216
HCA, Inc. 93,700 3,559,663
Health Management
Associates, Inc.,
Class A 44,300 987,004
Humana, Inc.* 30,800 541,772
IMS Health, Inc. 45,200 880,044
Manor Care, Inc. 17,300 477,480
McKesson Corp. 53,900 1,764,686
Quest Diagnostics, Inc.* 19,500 $ 1,170,000
Tenet Healthcare Corp.* 87,000 1,396,350
UnitedHealth Group,
Inc. 108,000 5,338,440
Wellpoint Health
Networks, Inc.* 26,500 2,067,000
- ------------------------------------------------------------------------
28,752,943
========================================================================
HOTELS, RESTAURANTS &
LEISURE--1.22%
Carnival Corp. 115,500 3,995,145
Darden Restaurants, Inc. 32,000 697,600
Harrah's Entertainment,
Inc.(1) 20,800 861,536
Hilton Hotels Corp. 71,000 1,084,880
International Game
Technology 63,200 1,633,088
Marriott International,
Inc., Class A 42,600 1,739,358
McDonald's Corp. 232,200 5,205,924
Starbucks Corp.* 70,900 2,016,396
Starwood Hotels &
Resorts Worldwide,
Inc., Class B 39,400 1,332,902
Wendy's International,
Inc. 21,900 690,945
Yum! Brands, Inc.* 52,900 1,568,485
- ------------------------------------------------------------------------
20,826,259
========================================================================
HOUSEHOLD DURABLES--0.50%
Black & Decker Corp. 15,800 675,924
Centex Corp. 11,900 897,498
Fortune Brands, Inc. 28,100 1,584,840
KB HOME 9,500 543,590
Leggett & Platt, Inc. 38,000 880,080
Maytag Corp. 16,600 449,860
Newell Rubbermaid,
Inc. 51,600 1,225,500
Pulte Homes, Inc. 12,000 798,720
Stanley Works 18,100 547,887
Whirlpool Corp. 13,600 946,288
- ------------------------------------------------------------------------
8,550,187
========================================================================
</Table>
12
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.91%
Clorox Co. 40,200 $ 1,722,570
Colgate-Palmolive Co. 98,200 5,428,496
Kimberly Clark Corp. 93,200 4,763,452
Procter & Gamble Co. 236,100 20,609,169
- ------------------------------------------------------------------------
32,523,687
========================================================================
INDUSTRIAL CONGLOMERATES--4.28%
3M Co. 71,500 10,186,605
General Electric
Co.(1) 1,829,200 54,089,444
Textron, Inc. 25,600 1,152,000
Tyco International Ltd. 366,600 7,544,628
- ------------------------------------------------------------------------
72,972,677
========================================================================
INSURANCE--4.59%
ACE Ltd. 48,700 1,568,140
AFLAC, Inc. 92,600 2,964,126
Allstate Corp. 127,800 4,568,850
Ambac Financial
Group, Inc. 19,200 1,246,464
American International
Group, Inc. 476,600 28,391,062
AON Corp. 58,000 1,287,600
Chubb Corp.(1) 33,900 2,303,166
Cincinnati Financial
Corp. 29,900 1,206,465
Hartford Financial
Services Group, Inc. 51,200 2,724,864
Jefferson-Pilot Corp. 26,600 1,177,582
John Hancock
Financial Services, Inc. 53,200 1,624,196
Lincoln National Corp. 33,600 1,190,112
Loews Corp. 34,400 1,415,904
Marsh & McLennan
Cos., Inc. 97,800 4,890,000
MBIA, Inc. 26,600 1,501,836
MetLife, Inc. 138,600 3,939,012
MGIC Investment Corp. 18,300 1,031,571
Progressive Corp. 39,700 2,808,378
Prudential Financial,
Inc.(1) 100,400 3,655,564
SAFECO Corp. 27,300 984,438
St. Paul Cos., Inc. 42,600 1,480,776
Torchmark Corp. 21,100 $ 851,596
Travelers Property
Casualty Corp.,
Class B 183,200 2,837,768
UnumProvident Corp. 55,500 782,550
XL Capital Ltd., Class A 25,100 1,901,325
- ------------------------------------------------------------------------
78,333,345
========================================================================
INTERNET & CATALOG RETAIL--0.38%
eBay, Inc.* 115,800 6,430,374
========================================================================
INTERNET SOFTWARE & SERVICES--0.22%
Yahoo!, Inc.* 110,300 3,684,020
========================================================================
IT CONSULTING & SERVICES--0.33%
Computer Sciences
Corp.* 34,600 1,472,922
Electronic Data Systems
Corp. 88,600 1,934,138
SunGard Data Systems,
Inc.* 52,400 1,477,680
Unisys Corp.* 62,400 809,952
- ------------------------------------------------------------------------
5,694,692
========================================================================
LEISURE EQUIPMENT & PRODUCTS--0.41%
Brunswick Corp. 18,900 509,922
Eastman Kodak Co.(1) 54,700 1,525,583
Harley-Davidson, Inc. 55,800 2,779,956
Hasbro, Inc. 33,900 627,150
Mattel, Inc. 82,200 1,588,104
- ------------------------------------------------------------------------
7,030,715
========================================================================
MACHINERY--1.37%
Caterpillar, Inc. 63,400 4,554,022
Danaher Corp. 28,200 2,178,450
Deere & Co. 44,400 2,509,044
Dover Corp. 37,900 1,440,958
Eaton Corp. 14,500 1,357,780
Illinois Tool Works, Inc. 56,500 4,084,385
Ingersoll Rand Co.,
Class A 31,600 1,880,832
ITT Industries, Inc. 17,200 1,119,376
Navistar International
Corp.* 13,900 621,747
PACCAR, Inc. 21,900 1,865,880
</Table>
13
<Page>
COMMON STOCKS
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------
MACHINERY--(CONCLUDED)
Pall Corp. 24,500 $ 612,500
Parker-Hannifin Corp. 22,600 1,119,152
- ------------------------------------------------------------------------
23,344,126
========================================================================
MEDIA--4.14%
AOL Time Warner,
Inc.* 824,400 13,487,184
Clear Channel
Communications, Inc. 113,600 5,125,632
Comcast Corp.,
Class A* 412,500 12,271,875
Dow Jones & Co., Inc. 18,700 794,189
Gannett Co., Inc. 50,500 3,960,210
Interpublic Group
Cos., Inc.(1) 73,000 1,105,950
Knight-Ridder, Inc. 17,100 1,160,406
McGraw-Hill Cos., Inc. 36,200 2,208,200
New York Times Co.,
Class A 30,400 1,349,456
Omnicom Group, Inc. 34,400 2,686,640
Tribune Co. 58,600 2,710,250
Univision Communications,
Inc., Class A(1)* 43,300 1,623,317
Viacom, Inc., Class B 321,900 14,485,500
Walt Disney Co. 376,300 7,714,150
- ------------------------------------------------------------------------
70,682,959
========================================================================
METALS & MINING--0.61%
Alcoa, Inc. 156,600 4,472,496
Freeport-McMoRan
Copper & Gold, Inc.,
Class B 28,400 852,000
Newmont Mining
Corp. (Holding Co.) 74,900 2,940,574
Nucor Corp. 15,700 807,137
Phelps Dodge Corp.* 17,600 844,624
United States Steel
Corp. 22,600 416,066
- ------------------------------------------------------------------------
10,332,897
========================================================================
MULTI-LINE RETAIL--4.17%
Big Lots, Inc.* 23,600 431,880
Costco Wholesale
Corp.* 84,200 2,701,978
Dollar General Corp. 61,700 $ 1,414,781
Family Dollar Stores, Inc. 32,400 1,299,888
Federated Department
Stores, Inc. 35,700 1,560,090
J.C. Penney Co., Inc.
(Holding Co.) 52,400 1,111,928
Kohl's Corp.* 62,400 3,946,800
May Department
Stores Co. 56,800 1,566,544
Nordstrom, Inc. 26,100 680,427
Sears, Roebuck & Co. 52,900 2,328,658
Target Corp. 167,200 6,788,320
Wal-Mart Stores, Inc. 800,900 47,389,253
- ------------------------------------------------------------------------
71,220,547
========================================================================
MULTI-UTILITIES--0.33%
AES Corp.* 114,400 741,312
Calpine Corp.(1)* 73,100 412,284
Centerpoint Energy,
Inc.(1) 60,600 514,494
Duke Energy Corp. 167,400 2,859,192
Dynegy, Inc., Class A* 73,100 225,879
Williams Cos., Inc. 97,200 887,436
- ------------------------------------------------------------------------
5,640,597
========================================================================
OFFICE ELECTRONICS--0.09%
Xerox Corp.* 142,100 1,531,838
========================================================================
OIL & GAS--4.93%
Amerada Hess Corp. 18,700 881,705
Anadarko Petroleum
Corp. 46,100 2,005,350
Apache Corp. 29,545 2,038,014
Burlington Resources,
Inc. 37,000 1,791,540
ChevronTexaco Corp. 195,300 14,231,511
ConocoPhillips, Inc. 124,800 6,968,832
Devon Energy Corp. 42,500 2,199,375
EOG Resources, Inc. 21,600 915,840
ExxonMobil Corp. 1,220,100 45,997,770
Kerr-McGee Corp. 21,000 922,950
Marathon Oil Corp. 59,100 1,648,299
Occidental Petroleum
Corp. 70,500 2,420,265
</Table>
14
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------
OIL & GAS--(CONCLUDED)
Sunoco, Inc. 16,600 $ 674,458
Unocal Corp. 48,900 1,497,318
- ------------------------------------------------------------------------
84,193,227
========================================================================
PAPER & FOREST PRODUCTS--0.49%
Georgia-Pacific Corp. 49,500 1,146,915
International Paper Co. 90,800 3,681,940
MeadWestvaco Corp. 42,700 1,082,445
Weyerhaeuser Co. 41,700 2,481,150
- ------------------------------------------------------------------------
8,392,450
========================================================================
PERSONAL PRODUCTS--0.56%
Alberto-Culver Co.,
Class B 11,600 662,128
Avon Products, Inc. 43,100 2,762,710
Gillette Co. 186,700 6,060,282
- ------------------------------------------------------------------------
9,485,120
========================================================================
PHARMACEUTICALS--8.64%
Abbott Laboratories 285,900 11,521,770
Allergan, Inc.(1) 24,100 1,914,986
Bristol-Myers Squibb Co. 355,200 9,011,424
Eli Lilly & Co. 205,700 13,685,221
Forest Laboratories, Inc.* 66,700 3,134,900
Johnson & Johnson 543,100 26,926,898
King Pharmaceuticals,
Inc.* 45,600 640,680
Medco Health
Solutions, Inc.* 49,940 1,333,398
Merck & Co., Inc. 410,300 20,646,296
Pfizer, Inc. 1,445,060 43,236,195
Schering-Plough Corp. 271,000 4,116,490
Watson Pharmaceuticals,
Inc.* 20,100 826,110
Wyeth Pharmaceuticals 243,500 10,433,975
- ------------------------------------------------------------------------
147,428,343
========================================================================
REAL ESTATE--0.44%
Equity Office
Properties Trust 81,100 2,256,202
Equity Residential
Properties Trust 57,300 1,666,284
Plum Creek Timber Co.,
Inc. 39,700 1,038,155
ProLogis 31,800 $ 896,442
Simon Property Group,
Inc. 39,000 1,665,690
- ------------------------------------------------------------------------
7,522,773
========================================================================
ROAD & RAIL--0.44%
Burlington Northern
Santa Fe, Inc. 68,800 1,950,480
CSX Corp. 40,700 1,313,796
Norfolk Southern Corp. 73,100 1,391,824
Union Pacific Corp. 46,500 2,833,710
- ------------------------------------------------------------------------
7,489,810
========================================================================
SEMICONDUCTOR EQUIPMENT &
PRODUCTS--4.18%
Advanced Micro Devices,
Inc.* 66,200 747,398
Altera Corp.* 70,500 1,582,020
Analog Devices, Inc.* 67,000 2,747,000
Applied Materials, Inc.* 303,500 6,555,600
Applied Micro Circuits
Corp.* 58,400 339,304
Broadcom Corp.,
Class A* 51,700 1,420,716
Intel Corp. 1,195,800 34,223,796
KLA-Tencor Corp.* 35,000 2,077,600
Linear Technology Corp. 57,400 2,366,028
LSI Logic Corp.* 71,300 822,802
Maxim Integrated
Products, Inc. 59,600 2,676,636
Micron Technology,
Inc.* 113,000 1,622,680
National Semiconductor
Corp.* 34,200 996,588
Novellus Systems, Inc.* 27,800 1,110,888
NVIDIA Corp.* 29,600 537,536
PMC-Sierra, Inc.* 32,200 459,172
QLogic Corp.* 17,400 852,948
Teradyne, Inc.* 35,300 629,399
Texas Instruments, Inc. 317,200 7,565,220
Xilinx, Inc.* 62,100 1,915,164
- ------------------------------------------------------------------------
71,248,495
========================================================================
</Table>
15
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------
SOFTWARE--4.83%
Adobe Systems, Inc. 43,000 $ 1,669,690
Autodesk, Inc. 22,300 399,170
BMC Software, Inc.* 44,100 647,388
Citrix Systems, Inc.* 30,900 636,231
Computer Associates
International, Inc. 106,700 2,734,721
Compuware Corp.* 73,900 439,705
Electronic Arts, Inc.* 26,700 2,396,325
Intuit, Inc.* 37,800 1,713,096
Mercury Interactive
Corp.* 16,200 711,018
Microsoft Corp. 1,966,100 52,140,972
Novell, Inc.* 73,600 370,208
Oracle Corp.* 960,400 12,273,912
PeopleSoft, Inc.* 60,200 1,089,620
Siebel Systems, Inc.* 92,100 928,368
Symantec Corp.* 27,300 1,567,839
VERITAS Software Co.* 76,400 2,634,272
- --------------------------------------------------------------------------
82,352,535
==========================================================================
SPECIALTY RETAIL--2.46%
AutoNation, Inc.* 55,100 1,035,329
Autozone, Inc.(1)* 16,500 1,514,700
Bed, Bath & Beyond,
Inc.* 54,300 2,336,529
Best Buy Co., Inc.* 59,100 3,073,791
Circuit City Stores-
Circuit City Group 40,400 421,372
Gap, Inc. 163,100 3,407,159
Home Depot, Inc. 420,700 13,529,712
Lowe's Cos., Inc. 142,700 7,828,522
Office Depot, Inc.* 57,400 1,046,976
RadioShack Corp. 31,600 960,640
Sherwin-Williams Co. 29,600 890,368
Staples, Inc.* 89,900 2,214,237
Tiffany & Co. 27,200 1,058,624
TJX Cos., Inc. 93,500 2,025,210
Toys R Us, Inc.* 42,200 574,764
- --------------------------------------------------------------------------
41,917,933
==========================================================================
TEXTILES & APPAREL--0.40%
Jones Apparel
Group, Inc. 25,000 $ 772,250
Limited Brands 97,000 1,645,120
Liz Claiborne, Inc. 21,000 723,870
Nike, Inc., Class B 49,000 2,792,020
V.F. Corp. 21,700 870,170
- --------------------------------------------------------------------------
6,803,430
==========================================================================
TOBACCO--0.99%
Altria Group, Inc. 370,200 15,259,644
R.J. Reynolds Tobacco
Holdings, Inc. 18,000 614,700
UST, Inc. 30,900 1,032,060
- --------------------------------------------------------------------------
16,906,404
==========================================================================
TRADING COMPANIES &
DISTRIBUTORS--0.12%
Genuine Parts Co. 34,400 1,101,488
W.W. Grainger, Inc. 18,500 921,855
- --------------------------------------------------------------------------
2,023,343
==========================================================================
WIRELESS TELECOMMUNICATION
SERVICES--0.52%
AT&T Wireless Services,
Inc.* 497,500 4,288,450
Nextel Communications,
Inc., Class A* 188,500 3,634,280
Sprint Corp.
(PCS Group)* 190,000 986,100
- --------------------------------------------------------------------------
8,908,830
==========================================================================
Total Common Stocks
(cost--$1,628,756,810) 1,704,868,430
==========================================================================
</Table>
16
<Page>
<Table>
<Caption>
NUMBER OF
SHARES MATURITY INTEREST
(000) DATES RATES+ VALUE
- ---------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM
SECURITIES LOANED--2.87%
MONEY MARKET FUNDS--2.87%
8,713 AIM Liquid Assets Portfolio 9/2/03 0.990% $ 8,713,480
1 Deutsche Cash Reserves Fund 9/2/03 0.915 1,163
8 Scudder Money Market Series 9/2/03 0.918 8,036
40,262 UBS Private Money Market
Fund LLC 9/2/03 1.006 40,261,623
- ---------------------------------------------------------------------------------
Total Money Market Funds
(cost--$48,984,302) 48,984,302
=================================================================================
Total Investments
(cost--$1,677,741,112)--102.78% 1,753,852,732
=================================================================================
Liabilities in excess of other
assets--(2.78)% (47,479,658)
=================================================================================
Net Assets--100.00% $ 1,706,373,074
=================================================================================
</Table>
* Non-income producing security.
(1) Security, or portion thereof, was on loan at August 31, 2003.
(2) Includes 13,100 Contingent Value Obligations valued at zero.
+ Interest rates shown reflect yield at August 31, 2003.
See accompanying notes to financial statements
17
<Page>
UBS TACTICAL ALLOCATION FUND
Statement of Assets and Liabilities -- August 31, 2003
<Table>
ASSETS
Investment in securities, at value (cost--$1,677,741,112)* $ 1,753,852,732
Receivable for investments sold 8,753,299
Receivable for shares of beneficial interest sold 463,455
Dividends receivable 2,732,501
Other assets 114,881
- -------------------------------------------------------------------------------------------
Total assets 1,765,916,868
- -------------------------------------------------------------------------------------------
LIABILITIES
Payable for cash collateral for securities loaned 48,984,302
Payable for shares of beneficial interest repurchased 5,126,378
Bank loan payable 3,147,000
Payable to affiliates 1,570,894
Accrued expenses and other liabilities 715,220
- -------------------------------------------------------------------------------------------
Total liabilities 59,543,794
- -------------------------------------------------------------------------------------------
NET ASSETS
Beneficial interest--$0.001 par value (unlimited amount authorized) 2,171,171,733
Accumulated undistributed net investment income 7,680,497
Accumulated net realized losses from investment transactions (548,590,776)
Net unrealized appreciation of investments 76,111,620
- -------------------------------------------------------------------------------------------
Net assets $ 1,706,373,074
===========================================================================================
</Table>
* Includes $47,377,241 of investments in securities on loan, at value.
See accompanying notes to financial statements
18
<Page>
<Table>
CLASS A:
Net assets $ 649,581,702
Shares outstanding 28,240,016
Net asset value per share $ 23.00
Maximum offering price per share (net asset value plus sales
charge of 5.50%) $ 24.34
CLASS B:
Net assets $ 461,273,303
Shares outstanding 20,691,840
Net asset value and offering price per share $ 22.29
CLASS C:
Net assets $ 458,117,119
Shares outstanding 20,398,896
Net asset value per share $ 22.46
Maximum offering price per share (net asset value plus sales
charge of 1.00%) $ 22.69
CLASS Y:
Net assets $ 137,400,950
Shares outstanding 5,889,604
Net asset value, offering price and redemption value per share $ 23.33
</Table>
See accompanying notes to financial statements
19
<Page>
Statement of Operations
<Table>
<Caption>
FOR THE
YEAR ENDED
AUGUST 31, 2003
- -------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 31,609,724
Interest 70,485
- -------------------------------------------------------------------------------------------
31,680,209
- -------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory and administration fees 7,931,059
Service fees--Class A 1,556,669
Service and distribution fees--Class B 5,065,094
Service and distribution fees--Class C 4,684,221
Transfer agency and related services fees 2,485,704
Custody and accounting 944,340
Reports and notices to shareholders 357,420
State registration fees 212,792
S&P 500 licensing fee 173,585
Professional fees 106,767
Insurance expense 90,990
Trustees' fees 52,892
Interest expense 16,519
Other expenses 183,231
- -------------------------------------------------------------------------------------------
23,861,283
- -------------------------------------------------------------------------------------------
Net investment income 7,818,926
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT ACTIVITIES:
Net realized loss from investment activities (247,218,276)
Net change in unrealized appreciation/depreciation of investments 394,242,877
Net realized and unrealized gains from investment activities 147,024,601
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 154,843,527
===========================================================================================
</Table>
See accompanying notes to financial statements
20
<Page>
Statement of Changes in Net Assets
<Table>
<Caption>
FOR THE YEARS ENDED AUGUST 31,
--------------------------------------------
2003 2002
- ---------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 7,818,926 $ 3,238,535
- ---------------------------------------------------------------------------------------------------
Net realized losses from investment activities (247,218,276) (275,915,473)
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation of
investments 394,242,877 (245,044,099)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 154,843,527 (517,721,037)
- ---------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income--Class A (2,382,218) (1,210,952)
- ---------------------------------------------------------------------------------------------------
Net investment income--Class Y (846,901) (383,511)
- ---------------------------------------------------------------------------------------------------
Net realized gains from investment activities--Class A -- (5,180,625)
- ---------------------------------------------------------------------------------------------------
Net realized gains from investment activities--Class B -- (4,770,088)
- ---------------------------------------------------------------------------------------------------
Net realized gains from investment activities--Class C -- (4,191,815)
- ---------------------------------------------------------------------------------------------------
Net realized gains from investment activities--Class Y -- (1,064,963)
- ---------------------------------------------------------------------------------------------------
(3,229,119) (16,801,954)
- ---------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 119,384,887 369,427,396
- ---------------------------------------------------------------------------------------------------
Cost of shares repurchased (552,215,452) (762,722,619)
Proceeds from dividends reinvested 3,147,000 16,197,555
Net decrease in net assets from beneficial
interest transactions (429,683,565) (377,097,668)
- ---------------------------------------------------------------------------------------------------
Net decrease in net assets (278,069,157) (911,620,659)
- ---------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 1,984,442,231 2,896,062,890
End of year (including accumulated undistributed
net investment income of $7,680,497 and
$3,211,100, respectively) $ 1,706,373,074 $ 1,984,442,231
===================================================================================================
</Table>
See accompanying notes to financial statements
21
<Page>
UBS TACTICAL ALLOCATION FUND
Notes to Financial Statements
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
UBS Tactical Allocation Fund (the "Fund") is a series of UBS Investment Trust
(the "Trust") and is registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended, as an open-end,
diversified management investment company.
Currently, the Fund offers Class A, Class B, Class C and Class Y shares. Each
class represents interests in the same assets of the Fund, and the classes are
identical except for differences in their sales charge structures, ongoing
service and distribution charges and certain transfer agency and related
services expenses. In addition, Class B shares and all corresponding reinvested
dividend shares automatically convert to Class A shares within a certain number
of years after issuance which varies depending upon the amount invested. All
classes of shares have equal voting privileges except that Class A, Class B and
Class C shares each have exclusive voting rights with respect to their
respective service and/or distribution plans. Class Y shares have no service or
distribution plan.
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States requires Fund management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies:
VALUATION OF INVESTMENTS--The Fund calculates net asset values based on the
current market value for its portfolio's securities. The Fund 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, administrator and principal underwriter of the Fund. UBS
Global AM is an indirect wholly owned asset management 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 Board of Trustees (the "Board"). The
amortized cost method of valuation, which
22
<Page>
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 Fund 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 Fund 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 Fund 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 Fund 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's insolvency. If the seller (or seller's guarantor, if any) becomes
insolvent, the Fund may suffer delays, cost 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 Fund 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.
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
accounting principles generally accepted in the United States. These "book/tax"
differences are either considered temporary or permanent in nature. To the
23
<Page>
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.
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 Fund. In accordance with the Advisory Contract, the
Fund 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 Fund's average
daily net assets up to $250 million and 0.45% thereafter. At August 31, 2003,
the Fund owed UBS Global AM $657,646 in investment advisory and administration
fees.
For the year ended August 31, 2003, the Fund did not pay any brokerage
commissions to UBS Financial Services Inc., an indirect wholly owned subsidiary
of UBS AG, or any other affiliated broker-dealer for transactions executed on
behalf of the Fund.
SERVICE AND DISTRIBUTION PLANS
UBS Global AM is the principal underwriter of the Fund's shares and has
appointed selected dealers for the sale of those shares. Under separate plans of
service and/or distribution pertaining to Class A, Class B and Class C shares,
the Fund pays UBS Global AM monthly service fees at an annual rate of 0.25% of
the average daily net assets of Class A, Class B and Class C shares and monthly
distribution fees at the annual rate of 0.75% of the average daily net assets of
Class B and Class C shares. At August 31, 2003, the Fund owed UBS Global AM
$911,561 in service and distribution fees.
UBS Global AM also receives the proceeds of the initial sales charges paid by
shareholders upon the purchase of Class A and Class C shares and the contingent
deferred sales charges paid by shareholders upon certain redemptions of Class A,
Class B and Class C shares. UBS Global AM has informed the Fund that for the
year ended August 31, 2003, it earned $1,970,425 in sales and deferred charges.
Effective September 30, 2003, the initial sales charge on Class C shares was
discontinued.
TRANSFER AGENCY AND RELATED SERVICES FEES
UBS Global AM provides certain transfer agency related services to the Fund
pursuant to a delegation of authority from PFPC, Inc. ("PFPC"), the Fund's
transfer agent, and is compensated for these services by PFPC, not the Fund.
For the year ended August 31, 2003, UBS Global AM received from PFPC, not the
Fund, approximately 47% of the total transfer agency and related services fees
paid by the Fund to PFPC.
24
<Page>
SECURITIES LENDING
The Fund may lend securities up to 33 1/3% of its total assets to qualified
broker-dealers or institutional investors. The loans are secured at all times by
cash, cash equivalents or U.S. government securities 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 Fund will
regain record ownership of loaned securities to exercise certain beneficial
rights; however, the Fund may bear the risk of delay in recovery of, or even
loss of rights in, the securities loaned should the borrower fail financially.
The Fund receives compensation, which is included in interest income, for
lending its securities from interest or dividends earned on the cash, cash
equivalents or U.S. government securities 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 Fund's securities lending program. For the year ended
August 31, 2003, the Fund earned $69,584 for lending its securities, and UBS
Financial Services Inc. or UBS Securities LLC earned $23,383 in compensation as
the Fund's lending agent. At August 31, 2003, the Fund owed UBS Securities LLC
$1,687 in compensation as the Fund's lending agent.
BANK LINE OF CREDIT
The Fund could borrow up to $10 million under a short-term unsecured line of
credit with the Fund's custodian ("Line of Credit"). The Fund participated with
other funds managed, advised or sub-advised by UBS Global AM in a $300 million
committed credit facility ("Facility") with UBS AG, Stamford Branch, to be
utilized for temporary financing until the settlement of sales or purchases of
portfolio securities, the repurchase or redemption of shares of the Fund at the
request of the shareholders and other temporary or emergency purposes. Under the
Facility arrangement, the Fund had agreed to pay a commitment fee, pro rata,
based on the relative asset size of the funds in the Facility. Interest would be
charged to the Fund at rates based on prevailing market rates in effect at the
time of borrowings. For the year ended August 31, 2003, the Fund had an average
daily amount of borrowing outstanding under the Line of Credit of $2,418,301 for
133 days with a related weighted average annualized interest rate of 1.849%. For
the year ended August 31, 2003, the Fund paid a commitment fee of $24,686 to UBS
AG.
Effective September 10, 2003, the Fund participates with other funds advised or
sub-advised by UBS Global AM in a $100 million committed credit facility with
State Street Bank and Trust Company, replacing the Facility arrangement.
FEDERAL TAX STATUS
For federal income tax purposes, the components of net unrealized appreciation
of investments at August 31, 2003 were as follows:
<Table>
Gross appreciation (investments having
an excess of value over cost) $ 256,441,699
Gross depreciation (investments having
an excess of cost over value) (221,742,076)
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments $ 34,699,623
===============================================================================
</Table>
25
<Page>
For the year ended August 31, 2003, aggregate purchases and sales of portfolio
securities, excluding short-term securities, were $40,454,446 and $403,003,116,
respectively.
The Fund intends to distribute substantially all of its taxable income and to
comply with the other requirements of the Internal Revenue Code applicable to
regulated investment companies. Accordingly, no provision for federal income
taxes is required. In addition, by distributing during each calendar year,
substantially all of its net investment income, realized capital gains and
certain other amounts, if any, the Fund intends not to be subject to a federal
excise tax.
The tax character of distributions paid during the fiscal years ended August 31,
2003 and August 31, 2002 were as follows:
<Table>
<Caption>
DISTRIBUTIONS PAID FROM: 2003 2002
- -------------------------------------------------------------------------------
Ordinary income $ 3,229,119 $ 12,464,084
Net long-term capital gains -- 4,337,870
- -------------------------------------------------------------------------------
Total distributions paid $ 3,229,119 $ 16,801,954
===============================================================================
</Table>
At August 31, 2003, the components of accumulated deficit on a tax basis were as
follows:
<Table>
Undistributed ordinary income $ 7,653,468
Accumulated capital and other losses (507,151,752)
Unrealized appreciation 34,699,623
- -------------------------------------------------------------------------------
Total accumulated deficit $ (464,798,661)
===============================================================================
</Table>
The difference between book-basis and tax-basis unrealized appreciation is
attributable primarily to the tax deferral of losses on wash sales and return of
capital adjustments from real estate investment trusts.
At August 31, 2003, the Fund had a net capital loss carryforward of
$326,084,505. This loss carryforward is available as a reduction, to the extent
provided in the regulations, of any future net realized gains, and will expire
as follows: $19,854,247 will expire August 31, 2010 and $306,230,258 will expire
August 31, 2011. To the extent that such losses are used to offset future
realized capital gains, it is probable that the gains so offset will not be
distributed. Also, in accordance with U.S. Treasury regulations, the Fund has
elected to defer realized capital losses of $181,067,247 arising after October
31, 2002. Such losses are treated for tax purposes as arising on September 1,
2003.
To reflect reclassifications arising from permanent "book/tax" differences for
the year ended August 31, 2003, accumulated undistributed net investment income
was decreased by $120,410, accumulated net realized losses from investment
transactions were decreased by $119,620 and beneficial interest was increased by
$790.
26
<Page>
(This page intentionally left blank)
27
<Page>
SHARES OF BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial interest
authorized. Transactions in shares of beneficial interest were as follows:
<Table>
<Caption>
CLASS A CLASS B
---------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------------------
YEAR ENDED
AUGUST 31, 2003:
Shares sold 2,923,683 $ 60,047,888 1,027,115 $ 20,535,629
Shares repurchased (10,819,151) (222,152,589) (7,393,573) (145,542,656)
Shares converted from
Class B to Class A 2,816,185 58,999,083 (2,898,159) (58,999,083)
Dividends reinvested 112,993 2,309,586 -- --
- --------------------------------------------------------------------------------------------------------------
Net decrease (4,966,290) $ (100,796,032) (9,264,617) $ (184,006,110)
==============================================================================================================
YEAR ENDED
AUGUST 31, 2002:
Shares sold 6,479,181 $ 159,332,650 3,665,555 $ 88,641,331
Shares repurchased (12,097,939) (288,352,616) (9,503,279) (218,248,803)
Shares converted from
Class B to Class A 1,390,373 35,693,504 (1,422,444) (35,693,504)
Dividends reinvested 242,064 6,225,891 176,466 4,439,877
- --------------------------------------------------------------------------------------------------------------
Net decrease (3,986,321) $ (87,100,571) (7,083,702) $ (160,861,099)
==============================================================================================================
</Table>
28
<Page>
<Table>
<Caption>
CLASS C CLASS Y
--------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------
YEAR ENDED
AUGUST 31, 2003:
Shares sold 1,244,604 $ 24,959,149 681,553 $ 13,842,221
Shares repurchased (7,250,183) (144,486,902) (1,936,431) (40,033,305)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested -- -- 40,494 837,414
- -------------------------------------------------------------------------------------------------------
Net decrease (6,005,579) $ (119,527,753) (1,214,384) $ (25,353,670)
=======================================================================================================
YEAR ENDED
AUGUST 31, 2002:
Shares sold 3,862,160 $ 94,123,294 1,096,372 $ 27,330,121
Shares repurchased (8,723,020) (203,529,544) (2,168,223) (52,591,656)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 161,590 4,094,687 55,273 1,437,100
- -------------------------------------------------------------------------------------------------------
Net decrease (4,699,270) $ (105,311,563) (1,016,578) $ (23,824,435)
=======================================================================================================
</Table>
29
<Page>
UBS TACTICAL ALLOCATION FUND
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each
year is presented below:
<Table>
<Caption>
CLASS A
-------------------------------------------------------------------------------------
FOR THE YEARS ENDED AUGUST 31,
-------------------------------------------------------------------------------------
2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF YEAR $ 20.80 $ 25.78 $ 35.59 $ 31.79 $ 23.55
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.18@ 0.13@ 0.32@ 0.60@ 0.15
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains
(losses) from investment activities 2.10@ (4.94)@ (6.45)@ 3.92@ 8.84
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
operations 2.28 (4.81) (6.13) 4.52 8.99
- --------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment
income (0.08) (0.03) (0.77) (0.02) (0.17)
- --------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized
gains from investment
activities -- (0.14) (2.91) (0.70) (0.58)
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (0.08) (0.17) (3.68) (0.72) (0.75)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 23.00 $ 20.80 $ 25.78 $ 35.59 $ 31.79
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.99% (18.79)% (18.89)% 14.37% 38.65%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) $ 649,582 $ 690,546 $ 958,783 $ 866,956 $ 702,580
- --------------------------------------------------------------------------------------------------------------------------------
Expenses to average net assets,
net of waivers from advisor(2) 0.98% 0.89% 0.84% 0.84% 0.84%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)
to average net assets, net
of waivers from advisor(2) 0.84% 0.54% 1.08% 1.77% 0.56%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 2% 5% 38% 122% 6%
================================================================================================================================
</Table>
@ Calculated using the average monthly shares outstanding for the year.
(1) Total investment return is calculated assuming a $10,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions, if any, at net asset value on the ex-dividend dates, and a
sale at net asset value on the last day of each year reported. The figures
do not include any applicable sales charges or program fees; results would
be lower if they were included. Returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption
of Fund shares.
(2) During the year ended August 31, 2001, UBS Global AM waived a portion of
its advisory and administration fees. The ratios excluding the waiver for
Class A and Class B were 0.85% and 1.61%, respectively, for expenses to
average net assets and 1.07% and 0.37%, respectively, for net investment
income to average net assets. During the years ended August 31, 2000 and
August 31, 1999, UBS Global AM waived a portion of its advisory and
administration fees. The ratios excluding the waiver would be the same
since the fee waiver represents less than 0.005%.
30
<Page>
<Table>
<Caption>
CLASS B
-------------------------------------------------------------------------------------
FOR THE YEARS ENDED AUGUST 31,
-------------------------------------------------------------------------------------
2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF YEAR $ 20.23 $ 25.24 $ 34.92 $ 31.41 $ 23.32
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.02@ (0.05)@ 0.11@ 0.33@ (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains
(losses) from investment activities 2.04@ (4.82)@ (6.36)@ 3.88@ 8.73
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
operations 2.06 (4.87) (6.25) 4.21 8.69
- --------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment
income -- -- (0.52) -- (0.02)
- --------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized
gains from investment
activities -- (0.14) (2.91) (0.70) (0.58)
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders -- (0.14) (3.43) (0.70) (0.60)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 22.29 $ 20.23 $ 25.24 $ 34.92 $ 31.41
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.18% (19.41)% (19.54)% 13.54% 37.61%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) $ 461,273 $ 606,133 $ 935,056 $ 1,091,107 $ 964,933
- --------------------------------------------------------------------------------------------------------------------------------
Expenses to average net assets,
net of waivers from advisor(2) 1.74% 1.65% 1.60% 1.60% 1.59%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)
to average net assets, net
of waivers from advisor(2) 0.08% (0.22)% 0.38% 1.00% (0.20)%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 2% 5% 38% 122% 6%
================================================================================================================================
</Table>
31
<Page>
Selected data for a share of beneficial interest outstanding throughout each
year is presented below:
<Table>
<Caption>
CLASS C
-------------------------------------------------------------------------------------
FOR THE YEARS ENDED AUGUST 31,
-------------------------------------------------------------------------------------
2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF YEAR $ 20.38 $ 25.42 $ 35.14 $ 31.60 $ 23.45
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.02@ (0.05)@ 0.11@ 0.34@ (0.06)
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains
(losses) from investment activities 2.06@ (4.85)@ (6.40)@ 3.90@ 8.79
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
operations 2.08 (4.90) (6.29) 4.24 8.73
- --------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment
income -- -- (0.52) -- (0.00)#
- --------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized
gains from investment
activities -- (0.14) (2.91) (0.70) (0.58)
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders -- (0.14) (3.43) (0.70) (0.58)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 22.46 $ 20.38 $ 25.42 $ 35.14 $ 31.60
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.21% (19.39)% (19.53)% 13.55% 37.58%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) $ 458,117 $ 538,109 $ 790,704 $ 868,545 $ 738,781
- --------------------------------------------------------------------------------------------------------------------------------
Expenses to average net assets,
net of waivers from advisor(2) 1.72% 1.63% 1.60% 1.60% 1.60%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)
to average net assets, net
of waivers from advisor(2) 0.10% (0.20)% 0.38% 1.01% (0.20)%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 2% 5% 38% 122% 6%
================================================================================================================================
</Table>
@ Calculated using the average monthly shares outstanding for the year.
(1) Total investment return is calculated assuming a $10,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions, if any, at net asset value on the ex-dividend dates, and a
sale at net asset value on the last day of each year reported. The figures
do not include any applicable sales charges or program fees; results would
be lower if they were included. Returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption
of Fund shares.
(2) During the year ended August 31, 2001, UBS Global AM waived a portion of
its advisory and administration fees. The ratios excluding the waiver for
Class C and Class Y were 1.61% and 0.57%, respectively, for expenses to
average net assets and 0.37% and 1.35%, respectively, for net investment
income to average net assets. During the years ended August 31, 2000 and
August 31, 1999, UBS Global AM waived a portion of its advisory and
administration fees. The ratios excluding the waiver would be the same
since the fee waiver represents less than 0.005%.
# Actual amount is less than $0.005 per share.
32
<Page>
<Table>
<Caption>
CLASS Y
-------------------------------------------------------------------------------------
FOR THE YEARS ENDED AUGUST 31,
-------------------------------------------------------------------------------------
2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF YEAR $ 21.07 $ 26.05 $ 35.92 $ 31.99 $ 23.68
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.25@ 0.21@ 0.41@ 0.71@ 0.22
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains
(losses) from investment activities 2.13@ (5.00)@ (6.50)@ 3.95@ 8.91
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
operations 2.38 (4.79) (6.09) 4.66 9.13
- --------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment
income (0.12) (0.05) (0.87) (0.03) (0.24)
- --------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized
gains from investment
activities -- (0.14) (2.91) (0.70) (0.58)
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (0.12) (0.19) (3.78) (0.73) (0.82)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 23.33 $ 21.07 $ 26.05 $ 35.92 $ 31.99
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 11.39% (18.54)% (18.63)% 14.72% 39.03%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) $ 137,401 $ 149,653 $ 211,520 $ 199,095 $ 129,893
- --------------------------------------------------------------------------------------------------------------------------------
Expenses to average net assets,
net of waivers from advisor(2) 0.63% 0.58% 0.56% 0.56% 0.58%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)
to average net assets,net
of waivers from advisor(2) 1.19% 0.85% 1.36% 2.09% 0.82%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 2% 5% 38% 122% 6%
================================================================================================================================
</Table>
33
<Page>
UBS TACTICAL ALLOCATION FUND
Report of Ernst & Young LLP, Independent Auditors
To the Shareholders and Trustees of
UBS Tactical Allocation Fund
We have audited the accompanying statement of assets and liabilities of UBS
Tactical Allocation Fund (a series comprising UBS Investment Trust), including
the portfolio of investments, as of August 31, 2003, and the related statement
of operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended and the financial highlights
for each of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We have conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of August 31, 2003, by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of UBS
Tactical Allocation Fund at August 31, 2003, and the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended and the financial highlights for each of the indicated
periods, in conformity with accounting principles generally accepted in the
United States.
/s/ Ernst & Young LLP
New York, New York
October 16, 2003
34
<Page>
Tax Information (unaudited)
We are required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise you within 60 days of the Fund's fiscal year end (August 31,
2003) as to the federal tax status of distributions received by shareholders
during such fiscal year. The percentage of dividends paid that qualify for the
70% dividends received deduction for corporate shareholders is 100%.
For the fiscal year ended August 31, 2003, certain dividends paid by UBS
Tactical Allocation Fund may be subject to a maximum tax rate of 15%, as
provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of
the distributions paid during the fiscal year, $23,712 represents the maximum
amount that may be considered qualified dividend income.
Dividends received by tax-exempt recipients (e.g., IRAs and Keoghs) need not be
reported as taxable income. Some retirement trusts (e.g., corporate, Keogh and
403(b)(7) plans) may need this information for their annual information
reporting.
Since the Fund's fiscal year is not the calendar year, another notification will
be sent in respect of calendar year 2003. The second notification, which will
reflect the amount to be used by calendar year taxpayers on their federal income
tax returns, will be made in conjunction with Form 1099 DIV and will be mailed
in January 2004. Shareholders are advised to consult their own tax advisers with
respect to the tax consequences of their investment in the Fund.
General Information (unaudited)
Proxy Voting Policies and Procedures
You may obtain a description of the Fund's proxy voting policies and procedures,
without charge, upon request by contacting the Fund directly at 1-800-647 1568
or online on the Fund's website www.ubs.com/ubsglobalam-proxy.
35
<Page>
Supplemental Information (unaudited)
BOARD OF TRUSTEES & OFFICERS
The Trust is governed by a Board of Trustees which oversees the Fund's
operations. Each Trustee serves an indefinite term of office. Officers are
appointed by the Trustees and serve at the pleasure of the Board. The table
below shows, for each Trustee and Officer, his or her name, address and age, the
position held with the Trust, the length of time served as a Trustee and Officer
of the Trust, the Trustee's or Officer's principal occupations during the last
five years, the number of portfolios in the UBS fund complex overseen by the
Trustee or for which a person served as an Officer, and other directorships held
by the Trustee.
The Trust's Statement of Additional Information contains additional information
about the Trustees and is available, without charge, upon request by calling
1-800-647 1568.
INTERESTED TRUSTEES
<Table>
<Caption>
TERM OF
OFFICE+ AND
POSITION(S) LENGTH OF
NAME, ADDRESS, HELD WITH TIME PRINCIPAL OCCUPATION(S)
AND AGE TRUST SERVED DURING PAST 5 YEARS
- ---------------------------------------------------------------------------------------------------------------------------
Margo N. Alexander*++; 56 Trustee Since 1996 Mrs. Alexander is retired. She was an
executive vice president of UBS
Financial Services Inc. (March 1984 to
December 2002). She was chief executive
officer (from January 1995 to
October 2000), a director (from
January 1995 to September 2001) and
chairman (from March 1999 to
September 2001) of UBS Global AM.
Brian M. Storms*++; 49 Trustee and Since 2003 Mr. Storms is chief executive officer of UBS
Chairman Global Asset Management--Americas region
of the (since July 2002). Mr. Storms was chief
Board of executive officer, president and/or chief
Trustees operating officer of UBS Global AM and
certain affiliated asset management
companies from 1999 to July 2002. He was
president of Prudential Investments
(1996-1999).
</Table>
36
<Page>
<Table>
<Caption>
NUMBER OF
NAME, ADDRESS, PORTFOLIOS IN FUND COMPLEX OTHER DIRECTORSHIPS
AND AGE OVERSEEN BY TRUSTEE HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------
Margo N. Alexander*++; 56 Mrs. Alexander is a director or trustee None
of 19 investment companies (consisting
of 40 portfolios) for which UBS Global
AM or one of its affiliates serves as
investment advisor, sub-advisor or manager.
Brian M. Storms*++; 49 Mr. Storms is a director or trustee of 23 None
investment companies (consisting of 83
portfolios) for which UBS Global AM or one
of its affiliates serves as investment advisor,
sub-advisor or manager.
</Table>
37
<Page>
INDEPENDENT TRUSTEES
<Table>
<Caption>
TERM OF
OFFICE+ AND
POSITION(S) LENGTH OF
NAME, ADDRESS, HELD WITH TIME PRINCIPAL OCCUPATION(S)
AND AGE TRUST SERVED DURING PAST 5 YEARS
- -----------------------------------------------------------------------------------------------------------------------
Richard Q. Armstrong; 68 Trustee Since 1995 Mr. Armstrong is chairman and
R.Q.A. Enterprises principal of R.Q.A. Enterprises
One Old Church Road-- (management consulting firm) (since
Unit # 6 April 1991 and principal occupation
Greenwich, CT 06830 since March 1995).
David J. Beaubien; 69 Trustee Since 2001 Mr. Beaubien is chairman of Yankee
101 Industrial Road Environmental Systems, Inc., a manu-
Turners Falls, MA 01376 facturer of meteorological measuring
systems (since 1991).
Richard R. Burt; 56 Trustee Since 1996 Mr. Burt is chairman of Diligence LLC
1275 Pennsylvania Ave., N.W. (international information and security
Washington, D.C. firm) and IEP Advisors (international
20004 investments and consulting firm).
Meyer Feldberg; 61 Trustee Since 1996 Mr. Feldberg is Dean and Professor of
Columbia University Management of the Graduate School
101 Uris Hall of Business, Columbia University
New York, New York (since 1989).
10027
</Table>
38
<Page>
<Table>
<Caption>
NUMBER OF
NAME, ADDRESS, PORTFOLIOS IN FUND COMPLEX OTHER DIRECTORSHIPS
AND AGE OVERSEEN BY TRUSTEE HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Richard Q. Armstrong; 68 Mr. Armstrong is a director or trustee of 19 None
R.Q.A. Enterprises investment companies (consisting of 40
One Old Church Road-- portfolios) for which UBS Global AM
Unit # 6 or one of its affiliates serves as investment
Greenwich, CT 06830 advisor, sub-advisor or manager.
David J. Beaubien; 69 Mr. Beaubien is a director or trustee of 19 Mr. Beaubien is also a director of
101 Industrial Road investment companies (consisting of 40 IEC Electronics, Inc., a manufacturer
Turners Falls, MA 01376 portfolios) for which UBS Global AM of electronic assemblies.
or one of its affiliates serves as investment
advisor, sub-advisor or manager.
Richard R. Burt; 56 Mr. Burt is a director or trustee of 19 Mr. Burt is also a director of
1275 Pennsylvania Ave., N.W. investment companies (consisting of 40 Hollinger International, Inc. (publishing),
Washington, D.C. portfolios) for which UBS Global AM HCL Technologies, Ltd., The Central
20004 or one of its affiliates serves as investment European Fund, Inc., The Germany Fund, Inc.,
advisor, sub-advisor or manager. IGT, Inc. (provides technology to gaming and
wagering industry) and chairman of
Weirton Steel Corp. (makes and finishes
steel products). He is also a director or
trustee of funds in the Scudder Mutual
Funds Family (consisting of 47 portfolios).
Meyer Feldberg; 61 Dean Feldberg is a director or trustee of 33 Dean Feldberg is also a director of Primedia Inc.
Columbia University investment companies (consisting of 54 (publishing), Federated Department Stores, Inc.
101 Uris Hall portfolios) for which UBS Global AM or one (operator of department stores), Revlon, Inc.
New York, New York of its affiliates serves as investment advisor, (cosmetics), Select Medical Inc. (healthcare
10027 sub-advisor or manager. services) and SAPPI, Ltd. (producer of
paper).
</Table>
39
<Page>
<Table>
<Caption>
TERM OF
OFFICE+ AND
POSITION(S) LENGTH OF
NAME, ADDRESS, HELD WITH TIME PRINCIPAL OCCUPATION(S)
AND AGE TRUST SERVED DURING PAST 5 YEARS
- -----------------------------------------------------------------------------------------------------------------------
Frederic V. Malek; 66 Trustee Since 1996 Mr. Malek is chairman of Thayer
1455 Pennsylvania Capital Partners (merchant bank) and
Avenue, N.W. chairman of Thayer Hotel Investors III,
Suite 350 Thayer Hotel Investors II and Lodging
Washington, D.C. Opportunities Fund (hotel investment
20004 partnerships) (since 1992).
Carl W. Schafer; 67 Trustee Since 1991 Mr. Schafer is president of the Atlantic
66 Witherspoon Street Foundation (charitable foundation)
#1100 (since 1993).
Princeton, NJ 08542
William D. White; 69 Trustee Since 2001 Mr. White is retired (since 1994).
P.O. Box 199
Upper Black Eddy, PA
18972
</Table>
40
<Page>
<Table>
<Caption>
NUMBER OF
NAME, ADDRESS, PORTFOLIOS IN FUND COMPLEX OTHER DIRECTORSHIPS
AND AGE OVERSEEN BY TRUSTEE HELD BY TRUSTEE
- ----------------------------------------------------------------------------------------------------------------------------------
Frederic V. Malek; 66 Mr. Malek is a director or trustee of 19 Mr. Malek is also a director of Aegis
1455 Pennsylvania investment companies (consisting of 40 Communications, Inc. (tele-services), American
Avenue, N.W. portfolios) for which UBS Global AM Management Systems, Inc. (management
Suite 350 or one of its affiliates serves as investment consulting and computer related services),
Washington, D.C. advisor, sub-advisor or manager. Automatic Data Processing, Inc. (computing
20004 services), CB Richard Ellis, Inc. (real estate
services), Federal National Mortgage
Association, FPL Group, Inc. (electric
services), Manor Care, Inc. (health care), and
Northwest Airlines Inc.
Carl W. Schafer; 67 Mr. Schafer is a director or trustee of 19 Mr. Schafer is also a director of Labor Ready,
66 Witherspoon Street investment companies (consisting of 40 Inc. (temporary employment), Roadway Corp.
#1100 portfolios) for which UBS Global AM (trucking), Guardian Life Insurance
Princeton, NJ 08542 or one of its affiliates serves as investment Company Mutual Funds (consisting of
advisor, sub-advisor or manager. 19 portfolios), the Harding, Loevner Funds
(consisting of three portfolios), E.I.I. Realty
Securities Trust (investment company) and
Frontier Oil Corporation.
William D. White; 69 Mr. White is a director or trustee of 19 None
P.O. Box 199 investment companies (consisting of 40
Upper Black Eddy, PA portfolios) for which UBS Global AM
18972 or one of its affiliates serves as investment
advisor, sub-advisor or manager.
</Table>
41
<Page>
OFFICERS
<Table>
<Caption>
TERM OF PRINCIPAL OCCUPATION(S)
OFFICE+ AND DURING PAST 5 YEARS;
POSITION(S) LENGTH OF NUMBER OF PORTFOLIOS IN
NAME, ADDRESS, HELD WITH TIME FUND COMPLEX FOR WHICH PERSON
AND AGE TRUST SERVED SERVES AS OFFICER
- ---------------------------------------------------------------------------------------------------------------------
T. Kirkham Barneby*; 57 Vice President Since 1995 Mr. Barneby is a managing director --
quantitative investments of UBS Global
AM. Mr. Barneby is a vice president of
five investment companies (consisting
of six portfolios) for which UBS Global
AM or one of its affiliates serves as
investment advisor, sub-advisor or
manager.
W. Douglas Beck*; 36 Vice President Since 2003 Mr. Beck is an executive director and
head of mutual fund product
management of UBS Global AM (since
2002). From March 1998 to November
2002, he held various positions at
Merrill Lynch, the most recent being
first vice president and co-manager of
the managed solutions group. Mr. Beck
is vice president of 22 investment
companies (consisting of 81 portfolios)
for which UBS Global AM or one of its
affiliates serves as investment advisor,
sub-advisor or manager.
Thomas Disbrow*; 37 Vice President Since 2000 Mr. Disbrow is a director and a senior
and Assistant manager of the mutual fund finance
Treasurer department of UBS Global AM. Prior
to November 1999, he was a vice
president of Zweig/Glaser Advisers.
Mr. Disbrow is a vice president and
assistant treasurer of 19 investment
companies (consisting of 40 portfolios)
for which UBS Global AM or one of
its affiliates serves as investment
advisor, sub-advisor or manager.
Amy R. Doberman*; 41 Vice President Since 2000 Ms. Doberman is a managing
and Secretary director and general counsel of UBS
Global AM. From December 1997
through July 2000, she was general
counsel of Aeltus Investment
Management, Inc. Ms. Doberman is
vice president and assistant secretary of
five investment companies (consisting
of 44 portfolios) and vice president and
secretary of 19 investment companies
(consisting of 40 portfolios) for which
UBS Global AM or one of its affiliates
serves as investment advisor,
sub-advisor or manager.
</Table>
42
<Page>
<Table>
<Caption>
TERM OF PRINCIPAL OCCUPATION(S)
OFFICE+ AND DURING PAST 5 YEARS;
POSITION(S) LENGTH OF NUMBER OF PORTFOLIOS IN
NAME, ADDRESS, HELD WITH TIME FUND COMPLEX FOR WHICH PERSON
AND AGE TRUST SERVED SERVES AS OFFICER
- ---------------------------------------------------------------------------------------------------------------------
David M. Goldenberg*; 37 Vice President Since 2002 Mr. Goldenberg is an executive
and Assistant director and deputy general counsel
Secretary of UBS Global AM. From 2000 to
2002 he was director, legal affairs at
Lazard Asset Management. Mr. Goldenberg
served in various capacities, including
most recently as global director of
compliance for SSB Citi Asset Management
Group from 1996 to 2000. Mr. Goldenberg is
a vice president and secretary of five
investment companies (consisting of 44
portfolios) and a vice president and
assistant secretary of 19 investment
companies (consisting of 40 portfolios) for
which UBS Global AM or one of its
affiliates serves as investment advisor,
sub-advisor or manager.
Kevin J. Mahoney*; 38 Vice President Since 1999 Mr. Mahoney is a director and a senior
and Assistant manager of the mutual fund finance
Treasurer department of UBS Global AM. Prior to
April 1999, he was the manager of the
mutual fund internal control group of
Salomon Smith Barney. Mr. Mahoney is a vice
president and assistant treasurer of 19
investment companies (consisting of 40
portfolios) for which UBS Global AM or one
of its affiliates serves as investment
advisor, sub-advisor or manager.
Paul H. Schubert*; 40 Vice President Since 1995 Mr. Schubert is an executive director
and Treasurer and head of the mutual fund finance
department of UBS Global AM. Mr. Schubert
is treasurer and principal accounting
officer of three investment companies
(consisting of 41 portfolios), a vice
president and treasurer of 20 investment
companies (consisting of 41 portfolios),
and treasurer and chief financial officer
of one investment company (consisting of
two portfolios) for which UBS Global AM or
one of its affiliates serves as investment
advisor, sub-advisor or manager.
</Table>
43
<Page>
<Table>
<Caption>
TERM OF PRINCIPAL OCCUPATION(S)
OFFICE+ AND DURING PAST 5 YEARS;
POSITION(S) LENGTH OF NUMBER OF PORTFOLIOS IN
NAME, ADDRESS, HELD WITH TIME FUND COMPLEX FOR WHICH PERSON
AND AGE TRUST SERVED SERVES AS OFFICER
- ---------------------------------------------------------------------------------------------------------------------
Joseph A. Varnas*; 35 President Since 2003 Mr. Varnas is a managing director (since
March 2003), chief technology officer
(since March 2001) and head of product,
technology and operations of UBS Global
AM (since November 2002). From 2000 to
2001, he was manager of product development
in Investment Consulting Services at UBS
Financial Services Inc. Mr. Varnas was a
senior analyst in the Global Securities
Research and Economics Group at Merrill
Lynch from 1995 to 1999. Mr. Varnas is
president of 22 investment companies
(consisting of 81 portfolios) for which UBS
Global AM or one of its affiliates serves
as investment advisor, sub-advisor or
manager.
Keith A. Weller*; 42 Vice President Since 1996 Mr. Weller is a director and senior
and Assistant associate general counsel of UBS Global AM.
Secretary Mr. Weller is a vice president and
assistant secretary of 19 investment
companies (consisting of 40 portfolios) for
which UBS Global AM or one of its
affiliates serves as investment advisor,
sub-advisor or manager.
</Table>
* This person's business address is 51 West 52nd Street, New York, New York
10019-6114.
+ Each Trustee holds office for an indefinite term. Officers are appointed by
the Trustees and serve at the pleasure of a board.
++ Mrs. Alexander and Mr. Storms are "interested persons" of the Trust as
defined in the Investment Company Act by virtue of their positions with UBS
Global AM and/or its affiliates.
44
<Page>
TRUSTEES
Brian M. Storms
CHAIRMAN
Margo N. Alexander
Richard Q. Armstrong
David J. Beaubien
Richard R. Burt
Meyer Feldberg
Frederic V. Malek
Carl W. Schafer
William D. White
PRINCIPAL OFFICERS
Joseph A. Varnas
PRESIDENT
Amy R. Doberman
VICE PRESIDENT AND SECRETARY
Paul H. Schubert
VICE PRESIDENT AND TREASURER
T. Kirkham Barneby
VICE PRESIDENT
W. Douglas Beck
VICE PRESIDENT
INVESTMENT ADVISOR,
ADMINISTRATOR AND PRINCIPAL UNDERWRITER
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, New York 10019-6114
THIS REPORT IS NOT TO BE USED IN CONNECTION WITH THE OFFERING OF SHARES OF THE
FUND UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS.
(C)2003 UBS GLOBAL ASSET MANAGEMENT (US) INC. ALL RIGHTS RESERVED.
<Page>
[UBS LOGO] Presorted
Standard
UBS GLOBAL ASSET MANAGEMENT (US) INC. U.S.Postage
51 West 52nd Street PAID
New York, NY 10019-6114 Smithtown, NY
Permit 700
<Page>
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to its principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions pursuant to Section 406 of
the Sarbanes-Oxley Act of 2002. (The registrant has designated the code of
ethics adopted pursuant to Sarbanes-Oxley as a "Code of Conduct" to lessen the
risk of confusion with its separate code of ethics adopted pursuant to Rule
17j-1 under the Investment Company Act of 1940, as amended.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Trustees has determined that the following persons
serving on the registrant's Audit and Contract Review Committee are "audit
committee financial experts" as defined in item 3 of Form N-CSR: Richard Q.
Armstrong and Carl W. Schafer. Each of Mr. Armstrong and Mr. Schafer is
independent as defined in item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the registrant.
ITEM 6. [RESERVED BY SEC FOR FUTURE USE. ]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED - END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 8. [RESERVED BY SEC FOR FUTURE USE. ]
ITEM 9. CONTROLS AND PROCEDURES.
<Page>
(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 10. EXHIBITS.
(a)(1) Code of Ethics as required pursuant to Section 406 of the
Sarbanes-Oxley Act of 2002.
(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.
(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.
<Page>
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 INVESTMENT TRUST
By: /s/ Joseph A. Varnas
---------------------
Joseph A. Varnas
President
Date: November 7, 2003
----------------
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/ Joseph A. Varnas
---------------------
Joseph A. Varnas
President
<Page>
Date: November 7, 2003
----------------
By: /s/ Paul H. Schubert
--------------------
Paul H. Schubert
Treasurer
Date: November 7, 2003
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