<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: 811-08764
-------------------------------------------------
UBS PACE Select Advisors Trust
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(Exact name of registrant as specified in charter)
51 West 52nd Street, New York, New York 10019-6114
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(Address of principal executive offices) (Zip code)
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 LLP
1775 I Street, N.W.
Washington, DC 20006-2401
Registrant's telephone number, including area code: 212-882 5000
Date of fiscal year end: July 31
Date of reporting period: January 31, 2004
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ITEM 1. REPORTS TO STOCKHOLDERS.
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[UBS GLOBAL ASSET MANAGEMENT LOGO]
UBS PACE MONEY MARKET INVESTMENTS
SEMIANNUAL REPORT
JANUARY 31, 2004
<Page>
UBS PACE MONEY MARKET INVESTMENTS
March 15, 2004
DEAR SHAREHOLDER,
We present you with the semiannual report for UBS PACE Money Market Investments
for the six months ended January 31, 2004.
PERFORMANCE
During the six months ended January 31, 2004, the Portfolio returned 0.25%
(before the deduction of the UBS PACE program fee; after the deduction of the
maximum program fee, the Portfolio declined 0.51%). In comparison, the 90-Day US
T-Bill Index and the Lipper Money Market Funds Median returned 0.48% and 0.17%,
respectively. (Returns over various time periods are shown in the table on page
4. Please note that the returns shown do not reflect the deduction of taxes that
a shareholder would pay on Portfolio distributions.)
AN INTERVIEW WITH PORTFOLIO MANAGER MICHAEL H. MARKOWITZ
Q. CAN YOU DESCRIBE THE ECONOMIC ENVIRONMENT OVER THE REVIEW PERIOD?
A. During the reporting period, the combined effects of significantly higher
military spending, an increase in exports and a stronger manufacturing
sector, among other things, fueled an uptick in economic growth. The third
quarter's GDP figure came in at 8.2%--far higher than anticipated, and the
sharpest recorded advance since 1984. This was followed by a fourth quarter
GDP figure of 4.1%, which, though lower than expected, still represented a
solid gain.
[SIDENOTE]
UBS PACE MONEY MARKET INVESTMENTS
INVESTMENT ADVISOR:
UBS Global Asset Management (US) Inc.
PORTFOLIO MANAGER:
Michael H. Markowitz
OBJECTIVE:
Current income consistent with preservation of capital and liquidity.
INVESTMENT PROCESS:
The Portfolio is a money market mutual fund and seeks to maintain a stable price
of $1.00 per share, although it may be possible to lose money by investing in
this Portfolio. The Portfolio invests in a diversified portfolio of high-quality
money market instruments of governmental and private issuers. Security selection
is based on the assessment of relative values and changes in market and economic
conditions.
1
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Q. WHAT ACTIONS DID THE FEDERAL RESERVE BOARD (THE "FED") TAKE DURING THE
PERIOD?
A. Since cutting short-term interest rates on June 25, 2003, to 1.00%--its
lowest level since 1958--the Federal Reserve (the "Fed") has held rates
steady. At its most recent meeting on January 28, 2004, Fed Chairman Alan
Greenspan rationalized this position, noting that, "An accommodative stance
on monetary policy, coupled with robust underlying growth in productivity, is
providing important ongoing support to economic activity." However, for the
first time since August 2003, the statement contained no reference as to how
long the Fed would be willing to keep rates low, other than to say that it
"could be patient." This prompted many market participants to conclude that
an increase in short-term rates was a likely possibility in the approaching
months.
Q. AGAINST THIS BACKDROP, HOW DID YOU MANAGE THE FUND'S PORTFOLIO?
A. Throughout the reporting period, we continued to employ a "barbell" strategy,
whereby we purchased securities at both ends of the maturity spectrum. The
Portfolio's longer-term securities--with maturities up to one year--were used
to lock in higher yields as interest rates fell, while shorter-term
securities--typically one month or less in maturity--provided liquidity. This
strategy was beneficial because it allowed us to generate incremental yield
compared with a more "laddered" approach, wherein a portfolio is spread out
among all maturity levels.
As always, we focused on emphasizing quality and liquidity for the Portfolio.
Most notably, this focus involved shifting more of the Portfolio's holdings
into commercial paper, as spreads in these investments grew more attractive
in the healthier credit environment that characterized the period. At period
end, commercial paper was the largest position in the Portfolio.
Q. WHAT IS YOUR OUTLOOK FOR THE ECONOMY, AND HOW DO YOU ANTICIPATE STRUCTURING
THE FUND GOING FORWARD?
A. Looking ahead, we are fairly positive with regard to growth prospects for the
economy. However, the extent to which growth occurs could depend on a major
contingency: Job growth. Although the economy appears to be on solid footing,
it has not yet triggered a significant increase in jobs. With approximately
70% of the economy driven by the consumer, continued high unemployment could
hurt consumer confidence and temper the economic expansion in 2004.
Given the current environment, we expect to continue employing a barbell
strategy in order to lock in higher rates. Maintaining a high-quality
portfolio
2
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will also be of paramount importance as we seek to meet our investment goal
of providing current income consistent with preservation of capital and
liquidity.
As always, we appreciate the opportunity to help you achieve your financial
goals. If you have any questions about UBS PACE Money Market Investments, please
contact your financial advisor.
Sincerely,
/s/ Joseph A. Varnas
JOSEPH A. VARNAS
PRESIDENT
UBS PACE Select Advisors Trust
MANAGING DIRECTOR
UBS Global Asset Management (US) Inc.
/s/ Michael H. Markowitz
MICHAEL H. MARKOWITZ
PORTFOLIO MANAGER
UBS PACE Money Market Investments
MANAGING DIRECTOR
UBS Global Asset Management (US) Inc.
This letter is intended to assist shareholders in understanding how the
Portfolio performed during the six-month period ended January 31, 2004, 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 Portfolio. We encourage you to consult your
financial advisor regarding your personal investment program.
3
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PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS SINCE
FOR PERIODS ENDED 1/31/04 6 MONTHS 1 YEAR 5 YEARS INCEPTION#
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UBS PACE Money Market Investments
without UBS PACE program fee* 0.25% 0.59% 3.30% 4.07%
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UBS PACE Money Market Investments with
maximum UBS PACE program fee* -0.51 -0.91 1.76 2.52
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90-Day U.S. T-Bill Index** 0.48 1.04 3.43 4.15
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Lipper Money Market Funds Median 0.17 0.43 3.05 3.86
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</Table>
Average annual total returns for UBS PACE Money Market Investments, for periods
ended December 31, 2003, after deduction of the maximum UBS PACE program fee,
were as follows: 1-year period, -0.88%; 5-year period, 1.83%; since inception,
2.55%.
For UBS PACE Money Market Investments, the 7-day current yield for the period
ended January 31, 2004 was 0.50%, without the UBS PACE program fee. With the
maximum UBS PACE program fee, the 7-day current yield was -1.00%. The
Portfolio's yield quotation more closely reflects the current earnings of the
Portfolio than the total return quotation. Yields will fluctuate and reflect any
fee waivers.
# Since inception returns are calculated as of commencement of issuance on
August 24, 1995 for UBS PACE Money Market Investments. Inception returns for
the Index and Lipper median are as of the nearest month-end of the
Portfolio's inception: August 31, 1995.
* The maximum annual UBS PACE program fee is 1.5% of the value of UBS PACE
assets.
** 90-Day US T-Bills are promissory notes issued by the US Treasury and sold
through competitive bidding, with a short-term maturity date, in this case,
of three months. This Index is derived from secondary market interest rates
as published by the Federal Reserve Bank.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions. The return and principal value of an
investment will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Performance results assume
reinvestment of all dividends and capital gain distributions. Total returns for
periods of less than one year have not been annualized.
Lipper peer group data calculated by Lipper Inc.; used with permission. The
Lipper median is the return of the fund that places in the middle of a Lipper
peer group.
An investment in UBS PACE Money Market Investments is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the Portfolio seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the Portfolio.
4
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PORTFOLIO STATISTICS
<Table>
<Caption>
CHARACTERISTICS 1/31/04
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Net Assets (mm) $ 129.9
Number of issuers (excluding Governments) 50
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Weighted Average Maturity 52 days
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<Caption>
PORTFOLIO COMPOSITION* 1/31/04
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Commercial Paper 64.3%
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U.S. Government and Agency Obligations 16.6
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Bank Obligations 15.0
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Short-Term Corporate Obligations 3.1
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Money Market Funds 1.3
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Liabilities in Excess of Other Assets (0.3)
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TOTAL 100.0%
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<Caption>
TOP 10 HOLDINGS (EXCLUDING U.S. GOVERNMENT AND AGENCY OBLIGATIONS)* 1/31/04
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Giro Multi-Funding 3.2%
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SunTrust Bank 2.3
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Wells Fargo Bank 2.3
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Variable Funding Capital 2.3
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RWE 2.3
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Giro Funding U.S. 2.3
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Receivables Capital 2.3
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Triple A One Funding 2.3
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Bank of America 2.3
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Old Line Funding 2.3
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TOTAL 23.9%
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</Table>
* Weightings represent percentages of net assets as of January 31, 2004. The
Portfolio is actively managed and its composition will vary over time.
5
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UBS PACE MONEY MARKET INVESTMENTS
STATEMENT OF NET ASSETS -- JANUARY 31, 2004 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--16.57%
02/05/04 to 0.930 to
$ 8,000 U.S. Treasury Bills 04/22/04 1.000%@ $ 7,990,587
1,530 Federal Farm Credit Bank 03/17/04 1.100@ 1,527,896
07/06/04 to 1.070 to
6,500 Federal Home Loan Bank 12/03/04 1.450 6,500,000
09/13/04 to 1.350 to
5,500 Federal Home Loan Mortgage Corp. 11/16/04 1.400 5,500,000
Total U.S. Government and Agency Obligations
(cost--$21,518,483) 21,518,483
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BANK NOTE-U.S.--2.31%
3,000 Wells Fargo Bank NA (cost--$3,000,000) 02/02/04 1.030* 3,000,000
- -------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--12.63%
NON-U.S.--7.47%
2,000 Abbey National Treasury Services PLC 02/02/04 1.025* 1,999,894
2,000 Deutsche Bank AG 04/08/04 1.070 2,000,000
1,500 Fortis Bank NV 02/13/04 1.040* 1,499,608
2,200 Natexis Banque Populaires 04/06/04 1.070 2,200,000
2,000 Westdeutsche Landesbank AG 02/02/04 1.050* 1,999,980
9,699,482
U.S.--5.16%
1,000 American Express Centurion Bank 02/18/04 1.020 1,000,000
2,700 First Tennessee Bank N.A. 03/12/04 1.030 2,700,000
3,000 SunTrust Bank 02/02/04 1.060* 3,000,000
6,700,000
Total Certificates of Deposit (cost--$16,399,482) 16,399,482
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COMMERCIAL PAPER@--64.34%
ASSET BACKED-AUTO & TRUCK--2.31%
3,000 New Center Asset Trust 03/22/04 1.080 2,995,500
ASSET BACKED-BANKING--1.88%
2,440 Atlantis One Funding Corp. 03/08/04 1.090 2,437,340
ASSET BACKED-FINANCE--1.18%
1,538 K2 (USA) LLC 02/27/04 1.100 1,536,778
</Table>
6
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<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
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COMMERCIAL PAPER@--(CONTINUED)
ASSET BACKED-MISCELLANEOUS--22.81%
$ 2,000 Falcon Asset Securitization Corp. 03/01/04 1.040% $ 1,998,324
2,460 Galaxy Funding, Inc. 04/07/04 1.110 2,454,994
3,000 Giro Funding U.S. Corp. 02/18/04 1.030 2,998,541
02/09/04 to 1.030 to
4,187 Giro Multi-Funding Corp. 02/17/04 1.090 4,185,275
3,000 Old Line Funding Corp. 02/26/04 1.020 2,997,875
3,000 Preferred Receivables Funding Corp. 02/27/04 1.020 2,997,790
3,000 Receivables Capital Corp. 02/20/04 1.030 2,998,369
3,000 Thunderbay Funding 03/02/04 1.030 2,997,425
3,000 Triple A One Funding 02/20/04 1.030 2,998,369
3,000 Variable Funding Capital Corp. 02/06/04 1.040 2,999,567
29,626,529
BANKING-NON-U.S.--10.92%
1,500 Alliance & Leicester PLC 03/12/04 1.080 1,498,200
1,400 Den Norske Bank ASA 04/06/04 1.050 1,397,346
3,000 Depfa Bank PLC 03/12/04 1.100 2,996,333
02/10/04 to 1.040 to
2,000 HBOS Treasury Services PLC 04/14/04 1.070 1,997,624
3,000 Nationwide Building Society 04/05/04 1.040 2,994,453
1,300 Royal Bank of Scotland PLC 02/12/04 1.010 1,299,599
2,000 Westpac Trust Securities NZ Ltd. 04/08/04 1.050 1,996,092
14,179,647
BANKING-U.S.--17.89%
3,000 Bank of America Corp. 02/26/04 1.020 2,997,875
2,300 Danske Corp. 02/09/04 1.010 2,299,484
3,000 Dexia Delaware LLC 04/15/04 1.030 2,993,648
2,500 ING (US) Funding LLC 05/03/04 1.040 2,493,356
3,000 Nordea North America, Inc. 03/18/04 1.080 2,995,860
3,000 Societe Generale North America, Inc. 03/18/04 1.080 2,995,860
2,623 Toronto-Dominion Holdings USA, Inc. 03/08/04 1.085 2,620,154
1,550 UniCredito Delaware, Inc. 02/06/04 1.100 1,549,763
2,290 Westpac Capital Corp. 04/07/04 1.100 2,285,382
23,231,382
</Table>
7
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<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
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COMMERCIAL PAPER@--(CONCLUDED)
BROKERAGE--2.31%
$ 3,000 Citigroup Global Markets Holdings, Inc. 04/01/04 1.040% $ 2,994,800
FINANCE-NONCAPTIVE DIVERSIFIED--1.77%
2,300 International Lease Finance Corp. 02/02/04 1.010 2,299,935
PHARMACEUTICALS--0.96%
1,250 Aventis SA 02/18/04 1.020 1,249,398
UTILITIES-OTHER--2.31%
3,000 RWE AG 02/17/04 1.090 2,998,547
Total Commercial Paper (cost--$83,549,856) 83,549,856
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SHORT-TERM CORPORATE OBLIGATIONS--3.08%
ENERGY-INTEGRATED--1.54%
2,000 BP Capital Markets PLC 02/02/04 1.045* 2,000,000
FINANCE-NONCAPTIVE DIVERSIFIED--1.54%
2,000 General Electric Capital Corp. 02/09/04 1.190* 2,000,000
Total Short-Term Corporate Obligations
(cost--$4,000,000) 4,000,000
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<Caption>
NUMBER OF
SHARES
(000)
- ---------
MONEY MARKET FUNDS+--1.34%
16 AIM Liquid Assets Portfolio 02/02/04 0.960 16,398
1,730 BlackRock Provident
Institutional TempFund 02/02/04 0.926 1,729,673
Total Money Market Funds (cost--$1,746,071) 1,746,071
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Total Investments (cost--$130,213,892)--100.27% 130,213,892
Liabilities in excess of other assets--(0.27)% (353,209)
Net Assets (applicable to 129,860,858 shares
of beneficial interest outstanding equivalent to
$1.00 per share)--100.00% $ 129,860,683
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</Table>
* Variable rate securities--maturity dates reflect earlier of reset date or
stated maturity date. The interest rates shown are the current rates as of
January 31, 2004, and reset periodically.
@ Interest rates shown are the discount rates at date of purchase.
+ Interest rates shown reflect yield at January 31, 2004.
Weighted average maturity -- 52 days
See accompanying notes to financial statements
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UBS PACE MONEY MARKET INVESTMENTS
STATEMENT OF OPERATIONS
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED
JANUARY 31, 2004
(UNAUDITED)
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INVESTMENT INCOME:
Interest $ 707,333
EXPENSES:
Transfer agency and related services fees 260,202
Investment management and administration fees 227,677
Reports and notices to shareholders 78,839
Professional fees 21,184
Federal and state registration fees 15,959
Custody and accounting 6,505
Trustees' fees 2,591
Other expenses 7,074
620,031
Less: Fee waivers and expense reimbursements from investment
manager and administrator (229,727)
Net expenses 390,304
Net investment income 317,029
Net realized gain from investment activities 17
Net increase in net assets resulting from operations $ 317,046
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</Table>
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, 2004 YEAR ENDED
(UNAUDITED) JULY 31, 2003
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FROM OPERATIONS:
Net investment income $ 317,029 $ 1,175,404
Net realized gains from investment activities 17 28
Net increase in net assets resulting from operations 317,046 1,175,432
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (317,029) (1,175,404)
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net increase in net assets from beneficial interest
transactions 5,946,014 11,913,188
Net increase in net assets 5,946,031 11,913,216
NET ASSETS:
Beginning of period 123,914,652 112,001,436
End of period $ 129,860,683 $ 123,914,652
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</Table>
See accompanying notes to financial statements
9
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UBS PACE MONEY MARKET INVESTMENTS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
UBS PACE Money Market Investments (the "Portfolio") is a diversified portfolio
of UBS PACE Select Advisors Trust (the "Trust"), which was organized as a
Delaware statutory trust under the laws of the State of Delaware by Certificate
of Trust dated September 9, 1994, as amended June 9, 1995, and is registered
with the Securities and Exchange Commission under the Investment Company Act of
1940, as amended, as an open-end management investment company. The trustees of
the Trust have authority to issue an unlimited number of shares of beneficial
interest, par value $0.001 per share.
The Trust currently offers twelve portfolios available for investment, each
having its own investment objectives and policies. Shares of the Portfolio
currently are available only to participants in the UBS PACE(SM) Select Advisors
Program and the UBS PACE(SM) Multi Advisor Program.
The Trust accounts separately for the assets, liabilities and operations for
each portfolio. Expenses directly attributable to each portfolio are charged to
that portfolio's operations; expenses which are applicable to all portfolios are
allocated among them on a pro rata basis.
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States requires the Portfolio's 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 AND ACCOUNTING FOR INVESTMENTS AND INVESTMENT INCOME--Investments are
valued at amortized cost which approximates market value, unless the Trust's
Board of Trustees (the "Board") determines that this does not represent fair
value. Investment transactions are recorded on the trade date. Realized gains
and losses from investment transactions are calculated using the identified cost
method. Interest income is recorded on an accrual basis. Discounts are accreted
and premiums are amortized as adjustments to interest income and the identified
cost of investments.
REPURCHASE AGREEMENTS--The Portfolio may purchase securities or other
obligations from a bank or securities dealer (or its affiliate), subject to the
seller's agreement to repurchase them at an agreed upon date (or upon demand)
and price. The Portfolio maintains custody of the underlying obligations prior
to their repurchase, either through its regular custodian or through a special
"tri-party" custodian or sub-custodian that maintains a separate account for
both the Portfolio and its counterparty. The underlying collateral is valued
daily on a mark-to-market basis to ensure that the value, including accrued
interest, is at least equal to the repurchase price. In the event of default of
the obligation to
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repurchase, the Portfolio generally has the right to liquidate the collateral
and apply the proceeds in satisfaction of the obligation. Repurchase agreements
involving obligations other than U.S. government securities (such as commercial
paper, corporate bonds and mortgage loans) may be subject to special risks and
may not have the benefit of certain protections in the event of counterparty
insolvency. If the seller (or seller's guarantor, if any) becomes insolvent, the
Portfolio may suffer delays, costs and possible losses in connection with the
disposition or retention of the collateral. Under certain circumstances, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings. The
Portfolio may participate in joint repurchase agreement transactions with other
funds managed, advised or sub-advised by UBS Global Asset Management (US) Inc.
("UBS Global AM"), the investment manager and administrator of the Portfolio.
UBS Global AM is an indirect wholly owned asset management subsidiary of UBS AG,
an international diversified organization with headquarters in Zurich,
Switzerland and operations in many areas of the financial services industry.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends and distributions is
determined in accordance with federal income tax regulations, which may differ
from accounting principles generally accepted in the United States. These
"book/tax" differences are either considered temporary or permanent in nature.
To the extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification.
CONCENTRATION OF RISK
The ability of the issuers of debt securities held by the Portfolio to meet
their obligations may be affected by economic developments, including those
particular to a specific industry or region.
INVESTMENT MANAGER AND ADMINISTRATOR
The Board has approved an Investment Management and Administration Contract
("Management Contract") with UBS Global AM. In accordance with the Management
Contract, the Portfolio pays UBS Global AM an investment management and
administration fee, which is accrued daily and paid monthly, at an annual rate
of 0.35% of the Portfolio's average daily net assets. At January 31, 2004, the
Portfolio owed UBS Global AM $38,908 for investment management and
administration fees.
Effective December 1, 2003, UBS Global AM has contractually undertaken to waive
a portion of the Portfolio's investment management and administration fees and
reimburse a portion of the Portfolio's other expenses, when necessary,
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to maintain the total annual operating expenses at a level not exceeding 0.60%.
The Portfolio will reimburse UBS Global AM for any such payments during a three
year period to the extent that operating expenses are otherwise below the
expense caps. For the six months ended January 31, 2004, UBS Global AM agreed to
waive $227,677 of its investment management and administration fees and
reimburse the Portfolio $2,050 for certain operating expenses. At January 31,
2004, UBS Global AM owed the Portfolio $35,729 for fee waivers.
At January 31, 2004, the Portfolio had fee waivers/expense reimbursements
subject to repayment and respective dates of expirations as follows:
<Table>
<Caption>
FEE WAIVERS/EXPENSE EXPIRES EXPIRES EXPIRES EXPIRES
REIMBURSEMENTS JULY 31, JULY 31, JULY 31, JULY 31,
SUBJECT TO REPAYMENT 2004 2005 2006 2007
- --------------------------------------------------------------------
$ 2,163,688 $ 375,953 $ 854,351 $ 703,657 $ 229,727
- --------------------------------------------------------------------
</Table>
OTHER LIABILITIES AND COMPONENTS OF NET ASSETS
At January 31, 2004, dividends payable, payable for shares of beneficial
interest repurchased and other accrued expenses (excluding investment management
and administration fees) were $32,627, $1,025,908, and $221,842, respectively.
At January 31, 2004, the Portfolio had the following components of net assets:
paid in capital of $129,860,858 and accumulated net realized loss of $175 for
total net assets of $129,860,683.
FEDERAL TAX STATUS
The Portfolio intends to distribute all of its income and to comply with the
other requirements of the Internal Revenue Code applicable to regulated
investment companies. Accordingly, no provision for federal income taxes is
required. In addition, by distributing during each calendar year substantially
all net investment income, realized capital gains and certain other amounts, if
any, the Portfolio intends not to be subject to federal excise tax.
The tax character of distributions paid to shareholders during the six months
ended January 31, 2004 and the fiscal year ended July 31, 2003 was ordinary
income.
The components of accumulated earnings on a tax basis for the current period
will be calculated after the Portfolio's fiscal year ending July 31, 2004.
At July 31, 2003, the Portfolio had a net capital loss carryforward of $192.
This loss carryforward is available as a reduction, to the extent provided in
the regulations, of any future net realized capital gains, and will expire by
July 31, 2007. To the extent that such losses are used to offset future realized
capital gains, it is probable that the realized capital gains so offset will not
be distributed.
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SHARES OF BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial interest
authorized. Transactions in shares of beneficial interest, at $1.00 per share,
were as follows:
<Table>
<Caption>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JANUARY 31, 2004 JULY 31, 2003
- ----------------------------------------------------------------------------
Shares sold 77,326,467 184,782,987
Shares repurchased (71,679,933) (174,057,834)
Dividends reinvested 299,480 1,188,035
Net increase in shares outstanding 5,946,014 11,913,188
- ----------------------------------------------------------------------------
</Table>
13
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UBS PACE MONEY MARKET INVESTMENTS
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.002 0.009 0.021 0.053 0.054 0.047
Dividends from net
investment income (0.002) (0.009) (0.021) (0.053) (0.054) (0.047)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL INVESTMENT RETURN(1) 0.25% 0.96% 2.10% 5.44% 5.53% 4.85%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end
of period (000's) $ 129,861 $ 123,915 $ 112,001 $ 76,657 $ 65,521 $ 47,174
Expenses to average
net assets, net of fee
waivers and expense
reimbursements 0.60%* 0.57% 0.50% 0.50% 0.50% 0.50%
Expenses to average
net assets, before fee
waivers and expense
reimbursements 0.95%* 1.13% 1.43% 1.00% 0.95% 1.07%
Net investment income
to average net assets,
net of fee waivers and
expense reimbursements 0.48%* 0.94% 2.03% 5.26% 5.46% 4.70%
Net investment income
to average net assets,
before fee waivers and
expense reimbursements 0.13%* 0.38% 1.10% 4.76% 5.01% 4.13%
- --------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
(1) Total investment return is calculated assuming a $10,000 investment on the
first day of each period reported, reinvestment of all dividends and other
distributions, if any, at net asset value on the payable dates, and a sale
at net asset value on the last day of each period reported. Total investment
return for a period of less than one year has not been annualized. The
figures do not include program fees; results would be lower if this fee was
included. Returns do not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions.
14
<Page>
TRUSTEES
Brian M. Storms Richard R. Burt
CHAIRMAN Meyer Feldberg
Carl W. Schafer
Margo N. Alexander William D. White
Richard Q. Armstrong
David J. Beaubien
PRINCIPAL OFFICERS
Joseph A. Varnas Michael H. Markowitz
PRESIDENT VICE PRESIDENT
Amy R. Doberman W. Douglas Beck
VICE PRESIDENT AND SECRETARY VICE PRESIDENT
Paul H. Schubert
VICE PRESIDENT AND TREASURER
INVESTMENT MANAGER,
ADMINISTRATOR AND PRINCIPAL UNDERWRITER
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, New York 10019-6114
THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE
PORTFOLIO WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN
OPINION THEREON.
THIS REPORT IS NOT TO BE USED IN CONNECTION WITH THE OFFERING OF SHARES OF THE
PORTFOLIO UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS.
(C)2004 UBS Global Asset Management (US) Inc. All rights reserved.
<Page>
Presorted
[UBS LOGO] Standard
U.S. Postage
PAID
Smithtown, NY
Permit 700
UBS GLOBAL ASSET MANAGEMENT (US) INC.
51 West 52nd Street
New York, New York 10019
<Page>
ITEM 2. CODE OF ETHICS.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the registrant.
ITEM 6. [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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the registrant.
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940, as amended) are effective based on their evaluation of
these controls and procedures as of a date within 90 days of the
filing date of this document.
<Page>
(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 - Form N-CSR disclosure requirement not applicable
to this filing of a semi-annual report.
(a) (2) Certifications of principal executive officer and principal
financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 is attached hereto as Exhibit EX-99.CERT.
(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 PACE Select Advisors Trust
By: /s/ Joseph A. Varnas
--------------------
Joseph A. Varnas
President
Date: April 8, 2004
-------------
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
Date: April 8, 2004
-------------
By: /s/ Paul H. Schubert
--------------------
Paul H. Schubert
Treasurer
Date: April 8, 2004
-------------