<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
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
51 West 52nd Street, New York, New York 10019-6114
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(Address of principal executive offices) (Zip code)
Mark F. Kemper, Esq.
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, NY 10019-6114
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, DC 20006-2401
Registrant's telephone number, including area code: 212-882 5000
Date of fiscal year end: July 31
Date of reporting period: January 31, 2005
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
[UBS GLOBAL ASSET MANAGEMENT LOGO]
UBS PACE(SM)
GOING THE DISTANCE TO MEET YOUR FINANCIAL NEEDS
SEMIANNUAL REPORT
JANUARY 31, 2005
<Page>
UBS PACE SELECT ADVISORS TRUST
TABLE OF CONTENTS
<Table>
Introduction 3
UBS PACE Money Market Investments 4
UBS PACE Government Securities Fixed Income Investments 8
UBS PACE Intermediate Fixed Income Investments 12
UBS PACE Strategic Fixed Income Investments 16
UBS PACE Municipal Fixed Income Investments 21
UBS PACE Global Fixed Income Investments 26
UBS PACE Large Co Value Equity Investments 31
UBS PACE Large Co Growth Equity Investments 36
UBS PACE Small/Medium Co Value Equity Investments 41
UBS PACE Small/Medium Co Growth Equity Investments 46
UBS PACE International Equity Investments 50
UBS PACE International Emerging Markets Equity Investments 56
Financial Statements 61
</Table>
UBS PACE SELECT ADVISORS TRUST OFFERS FIVE CLASSES OF SHARES
REPRESENTING INTERESTS IN TWELVE SEPARATE PORTFOLIOS. (UBS PACE MONEY
MARKET INVESTMENTS OFFERS ONLY ONE SHARE CLASS.) DIFFERENT CLASSES OF
SHARES AND/OR PORTFOLIOS ARE OFFERED BY SEPARATE PROSPECTUSES.
FOR MORE INFORMATION ON A PORTFOLIO OR CLASS OF SHARES, CONTACT YOUR
FINANCIAL ADVISOR. HE OR SHE CAN SEND YOU A CURRENT PROSPECTUS
RELATING TO A PORTFOLIO OR CLASS OF SHARES, WHICH INCLUDES A
DISCUSSION OF INVESTMENT RISKS, SALES CHARGES, EXPENSES AND OTHER
MATTERS OF INTEREST. PLEASE CAREFULLY READ THE PROSPECTUS RELATED TO
THE PORTFOLIO OR CLASS OF SHARES YOU ARE INTERESTED IN BEFORE YOU
INVEST.
i
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UBS PACE SELECT ADVISORS TRUST
INTRODUCTION
March 15, 2005
Dear UBS PACE(SM) Shareholder,
We are pleased to provide you with the semiannual report for the UBS PACE
Portfolios, comprising the UBS PACE Select Advisors Trust.
This report includes summaries of the performance of each Portfolio and
commentaries from the individual investment advisors regarding the events during
the six months ended January 31, 2005. Please note that the opinions of the
advisors do not necessarily represent those of UBS Global Asset Management (US)
Inc.
The global economic expansion continued during the reporting period. In the US,
gross domestic product (GDP) growth was strong throughout 2004, despite rising
interest rates and surging energy prices. Overseas, growth rates in Europe and
Japan were mixed. Record high oil prices, combined with declining exports,
caused their economies to lag that of the US. Elsewhere, China's economy
continued to expand sharply, and many commodity-rich emerging market economies
also experienced strong growth.
Turning to the equity markets, in our view a number of issues preoccupied
investors, including concerns over energy costs, threats of terrorism, ongoing
hostilities in Iraq, geopolitical concerns and uncertainties surrounding the US
presidential election. However, with the election behind them and oil prices
falling from their record highs, the global equity markets rallied sharply in
the fourth quarter of 2004. As a result, the US equity market generated strong
results over the period. The returns from the international stock markets were
even better, due in part to the decline of the US dollar. A falling dollar is
good news for Americans investing overseas, as returns from international
securities are increased when translated back into US dollars.
Despite numerous interest rate hikes by the Federal Reserve Board, the overall
US bond market generated positive returns over the reporting period. Elsewhere,
mixed economic news abroad helped international fixed income markets to generate
respectable gains. Even with interest rates rising, they still remained
relatively low, causing investors to assume greater risks in search of higher
returns. As a result, riskier segments of the fixed income market, including
high yield bonds and emerging market debt, produced superior returns during the
period.
While market volatility was relatively subdued over the period compared with
recent years, a number of factors could unsettle the stock and bond markets as
the year progresses. These include the global economic environment, the price of
oil and geopolitical events. Therefore, we continue to believe that investors
should maintain a diversified portfolio and long-term perspective. As always,
your financial advisor can help you remain focused on your investment goals. The
PACE Portfolios can be a key component of your portfolio, as they offer a wide
choice of actively managed investments that allow you to take advantage of
ever-changing market opportunities.
We appreciate the opportunity to help you achieve your financial goals. If you
have any questions about the UBS PACE Program or about UBS PACE Select Advisors
Trust, 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.
This report is intended to assist investors in understanding how the Portfolios
performed during the six months ended January 31, 2005. The views expressed in
the Advisors' Comments sections are as of the end of the reporting period and
are those of the investment advisors. The views and opinions in this report were
current as of January 31, 2005. They are not guarantees of performance or
investment results and should not be taken as investment advice. Investment
decisions reflect a variety of factors, and the Advisors reserve the right to
change their views about individual stocks, sectors, and the markets at any
time. As a result, the views expressed should not be relied upon as a forecast
of the Portfolio's future investment intent. The report is certified under the
Sarbanes-Oxley Act of 2002, which requires mutual funds and other public
companies to affirm that, to the best of their knowledge, the information in
their financial reports is fairly and accurately stated in all material
respects. We encourage you to consult your financial advisor regarding your
personal investment program.
3
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE MONEY MARKET INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio returned 0.65% (before
the deduction of the maximum UBS PACE program fee; after the deduction of the
maximum program fee, the Portfolio declined 0.10%). In comparison, the 90-Day US
T-Bill Index and the Lipper Money Market Funds median returned 0.85% and 0.54%,
respectively. (Returns over various time periods are shown in the table on page
5. Please note that the returns shown do not reflect the deduction of taxes that
a shareholder would pay on Portfolio distributions.)
MARKET REVIEW
The US economy continued to expand over the reporting period. Following a 3.3%
annualized gain in the second quarter of 2004, gross domestic product (GDP) was
a robust 4.0% in the third quarter. The preliminary number for fourth quarter
GDP was 3.8%, another solid gain.
After many months of speculation, the Federal Reserve Board (the "Fed") raised
the federal funds rate (or "fed funds" rate)--the rate that banks charge one
another for funds they borrow on an overnight basis--from 1.00% to 1.25% at the
end of June 2004. During the reporting period, the Fed again raised rates in
August, September, November and December 2004, bringing the fed funds rate to
2.25%. Coinciding with the December rate hike, the Fed stated: "Output appears
to be growing at a moderate pace despite the earlier rise in energy prices, and
labor market conditions continue to improve gradually. Inflation and longer-term
inflation expectations remain well contained." This served to reassure market
participants that the Fed would stay on its course of increasing interest rates
"at a pace that is likely to be measured" to stave off inflation and remove
excess liquidity from the economy, which they did at their February 2 meeting,
raising rates to 2.50%.
ADVISOR'S COMMENTS
For the first half of the reporting period, we continued to employ a "barbell"
strategy for much of the period, meaning we purchased securities at both ends of
the maturity spectrum. Our longer-term securities, with maturities up to
thirteen months, were used to lock in higher rates. Callable agency securities
(those issued by US government agencies) in particular added significant yield.
Shorter-term securities, with maturities of three months or less, provided
liquidity and gave us the ability to reinvest at higher rates when the Fed
increased interest rates. Toward the middle of the reporting period, we
shortened Portfolio duration and moved to more of a "bulleted" strategy, adding
three- and six-month securities as short-term yields began to move up as the
market anticipated more Fed rate increases. Throughout the period, the Portfolio
maintained a significant position in corporate and agency floating-rate
securities, which enabled the Portfolio to capture yield as rates steadily
increased.
In terms of security selection, we maintained our strategy of emphasizing
quality and liquidity. Thus, we continued to concentrate a large portion of the
Portfolio's holdings in traditional and asset-backed commercial paper, which, in
the healthier credit environment that characterized the period, offered a yield
advantage. We also held positions in other high-quality sectors, including US
government and agency securities, certificates of deposit and short-term
corporate debt. This strategy helped maintain the Portfolio's overall level of
diversification and allowed us to meet our liquidity requirements.
At this point, it appears clear that the Fed will continue to raise interest
rates in the months to come. In anticipation of the higher interest rate
environment, we have let the Portfolio's weighted average maturity drift
shorter, in order to take advantage of higher yields. Maintaining a high-quality
Portfolio continues to be of paramount importance.
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - 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.
4
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- -------------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments without maximum UBS PACE program fee* 0.65% 0.92% 2.50% 3.73%
UBS PACE Money Market Investments with maximum UBS PACE program fee* -0.10 -0.59 0.97 2.18
90-Day U.S. T-Bill Index** 0.85 1.34 2.74 3.85
Lipper Money Market Funds median 0.54 0.74 2.25 3.54
</Table>
Average annual total returns for UBS PACE Money Market Investments, for periods
ended December 31, 2004, after deduction of the maximum UBS PACE program fee,
were as follows: 1-year period, -0.69%; 5-year period, 1.04%; since inception,
2.20%.
For UBS PACE Money Market Investments, the 7-day current yield for the period
ended January 31, 2005 was 1.78%, without maximum UBS PACE program fee. With the
maximum UBS PACE program fee, the 7-day current yield was 0.28%. The Portfolio's
yield quotation more closely reflects the current earnings of the Portfolio than
the total return quotation. Yields will fluctuate and reflect 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 of an investment will fluctuate
and the principal value of an investment could 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.
5
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs, including program fees; and (2) ongoing costs, including
management fees and other Portfolio expenses. This example is intended to help
you understand your ongoing costs (in dollars) of investing in the Portfolio and
to compare these costs with the ongoing costs of investing in other mutual
funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line in the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over a
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below provides information about hypothetical
account values and hypothetical expenses based on the Portfolio's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Portfolio's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as program fees. Therefore, the second line in the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- ------------------------------------------------------------------------------------------------------------------
Class P Actual $ 1,000.00 $ 1,006.50 $ 3.03
Hypothetical (5% annual return before expenses) 1,000.00 1,022.18 3.06
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratio of
0.60%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
6
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Net Assets (mm) $ 182.8
Number of Securities (excluding U.S. Government Agency Obligations) 55
Weighted Average Maturity 37 days
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Commercial Paper 63.2%
Certificates of Deposit 19.4
U.S. Government Agency Obligations 14.9
Short-Term Corporate Obligations 3.6
Money Market Funds 0.9
Repurchase Agreements 0.1
Other Assets Less Liabilities (2.1)
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
TOP 10 HOLDINGS (EXCLUDING U.S. GOVERNMENT AGENCY OBLIGATIONS)* 1/31/05
- --------------------------------------------------------------------------------
Giro Multi-Funding 2.7%
American Express Centurion 2.2
Discover 2.2
First Tennessee 2.2
Washington Mutual 2.2
Wells Fargo 2.2
Northern Rock 2.2
Windmill Funding 2.2
Ranger Funding 2.2
Falcon Asset Securitization 2.2
- --------------------------------------------------------------------------------
Total 22.5%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
7
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 3.02% (before the deduction of the maximum UBS PACE program fee; 2.25%
after the deduction of the maximum program fee), compared with the Lehman
Brothers Mortgage-Backed Securities Index, which returned 3.53%, and the Lipper
Intermediate US Government Funds median, which returned 2.47%. (Returns for all
share classes over various time periods are shown in the table on page 9. Please
note that the returns shown do not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or the redemption of Portfolio
shares.)
MARKET REVIEW
Most major fixed income sectors posted gains during the period, with bonds
showing unexpected strength, despite several major headwinds. These included
expanding US fiscal deficits, a falling US dollar and market perceptions as the
year began that interest rates were bound to rise from levels near historic
lows.
At the start of the period, economic data releases suggested moderate economic
growth, as job numbers, inflation and consumer confidence fell short of analyst
expectations, again throwing doubts on the strength of the recovery. Bonds
subsequently rallied as weak employment growth and lower inflation prompted a
fall in interest rates. The Federal Reserve Board (the "Fed") continued to raise
the federal funds rate (or "fed funds" rate)--the rate that banks charge one
another for funds they borrow on an overnight basis--at a measured pace during
the period, increasing it from 1.0% to 2.25% in a series of small hikes, and
again on February 2, bringing the rate to 2.50%. In our view, investors
understood that the Fed was lifting rates from unusually low levels that had
been set to ward off deflation.
ADVISOR'S COMMENTS
As fears of an aggressive Fed tightening campaign subsided, mortgages performed
well during the period, with strong demand from banks and other financial
institutions in the US and overseas helping to support the sector. Demand for
"carry," or the excess yield mortgages offer, remained the primary driver of
mortgage valuations despite the modest flattening of the yield curve (the yield
curve flattens when the difference between short- and long-term yields narrows).
Although some investors view mortgage securities as being expensive relative to
Treasuries, the sector remains attractive to banks and other financial
institutions as long as the shape of the yield curve (measured as the difference
in yield between 2- and 30-year Treasuries) remains relatively steep. Interest
rates remained in a fairly narrow range, and a flatter yield curve resulted in a
benign refinancing environment, while refinancing volumes, as measured by the
MBA refi-index, remained relatively stable during the period.
During the reporting period, Federal National Mortgage Association (Fannie Mae)
and Federal Home Loan Mortgage Corporation (Freddie Mac) issues continued to be
supported by strong overseas buying, and generally outperformed their Government
National Mortgage Association (Ginnie Mae) counterparts. Also, 15-year maturity
mortgages generally outperformed their 30-year counterparts. Within both the 15-
and 30-year sectors, low and intermediate coupon securities tended to outperform
higher coupons. Sectors not held in the Index, including agency hybrid mortgages
and agency collateralized mortgage obligations (CMOs) performed in line with
pass-through mortgage securities. Non-agency "jumbo" mortgages actually
appreciated in value slightly relative to agency securities, as strong investor
demand for higher-yielding products supported the sector.
In this environment, the Portfolio's duration was held below the Index given
longer-term risks of rising inflation and rate increases. This strategy
detracted from results as interest rates fell. An underweight to premium 30-year
conventional (Fannie Mae and Freddie Mac) issues was negative as these
securities outperformed lower coupons. Near-Index exposure to 15-year
mortgage-backed securities was neutral for the period. However, a focus on
15-year, 5.0% coupon mortgages was positive as these issues performed well. A
focus on lower coupons was positive, as these issues outperformed higher coupon
mortgages. Buying mortgages forward and investing the purchase amount at
relatively high short-term rates contributed to returns. A modest allocation to
adjustable rate mortgages also added slightly to performance. Finally, an
allocation to asset-backed positions enhanced results as the sector outperformed
other core fixed income sectors.
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE GOVERNMENT SECURITIES FIXED INCOME
INVESTMENTS
INVESTMENT ADVISOR:
Pacific Investment Management Company LLC ("PIMCO")
PORTFOLIO MANAGER:
W. Scott Simon
OBJECTIVE:
Current income
INVESTMENT PROCESS:
The Portfolio invests primarily in mortgage-backed securities along with US
government and agency securities of varying maturities. The Portfolio also
invests, to a lesser extent, in investment grade bonds of private issuers,
including those backed by mortgages or other assets. The Portfolio's
dollar-weighted average duration normally ranges between one and seven years.
(Duration is a measure of a bond portfolio's sensitivity to interest rate
changes.) PIMCO establishes duration targets based on its expectations for
changes in interest rates, and then positions the Portfolio to take advantage of
yield curve shifts. Securities are chosen for their value relative to other
similar securities.
8
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PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- ----------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 2.91% 3.91% N/A 5.22%
Maximum Sales Charge Class B** 2.51 3.10 N/A 4.93
or UBS PACE Program Fee Class C*** 2.63 3.34 N/A 5.42
Class Y**** 3.04 4.24 N/A 5.55
Class P***** 3.02 4.13 7.26% 6.50
After Deducting Class A* -1.69 -0.79 N/A 4.01
Maximum Sales Charge Class B** -2.49 -1.90 N/A 4.51
or UBS PACE Program Fee Class C*** 1.88 2.59 N/A 5.42
Class P***** 2.25 2.58 5.66 4.92
Lehman Brothers Mortgage-Backed Securities Index 3.53 4.60 7.44 6.81
Lipper Intermediate US Government Funds median 2.47 2.22 6.45 5.74
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -0.44%; since inception, 4.00%; Class B--1-year period,
- -1.59%; since inception, 4.53%; Class C--1-year period, 2.90%; since inception,
5.46%; Class Y--1-year period, 4.55%; since inception, 5.57%; Class P--1-year
period, 2.88%; 5-year period, 5.48%; since inception, 4.93%.
~ Since inception returns are calculated as of commencement of issuance or
reissuance on August 24, 1995 for Class P shares, January 31, 2001 for
Class A shares, December 18, 2000 for Class B shares, December 4, 2000
for Class C shares and February 2, 2001 for Class Y shares. Since
inception returns for the Index and Lipper median are shown as of August
31, 1995, which is the nearest month-end of the inception date of the
oldest share class (Class P).
* Maximum sales charge for Class A shares is 4.5%. Class A shares bear
ongoing 12b-1 service fees.
** Maximum contingent deferred sales charge for Class B shares is 5% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 0.75%
imposed on redemptions and is reduced to 0% after one year. Class C
shares bear ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The Lehman Brothers Mortgage-Backed Securities Index covers fixed rate
securitized issues backed by the mortgage pools of the Government National
Mortgage Association, the Federal Home Loan Mortgage Corporation and the Federal
National Mortgage Association. Graduated Payment Mortgages are included, but
Graduated Equity Mortgages are not. The average-weighted life is approximately
eight years.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
9
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads) or program
fees; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees (if applicable); and other Portfolio expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Portfolio and to compare these costs with the ongoing costs of investing
in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads) or program fees. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- ------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,029.10 $ 5.52
Hypothetical (5% annual return before expenses) 1,000.00 1,019.76 5.50
Class B Actual 1,000.00 1,025.10 9.39
Hypothetical (5% annual return before expenses) 1,000.00 1,015.93 9.35
Class C Actual 1,000.00 1,026.30 8.27
Hypothetical (5% annual return before expenses) 1,000.00 1,017.04 8.24
Class Y Actual 1,000.00 1,030.40 3.89
Hypothetical (5% annual return before expenses) 1,000.00 1,021.37 3.87
Class P Actual 1,000.00 1,030.20 4.45
Hypothetical (5% annual return before expenses) 1,000.00 1,020.82 4.43
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 1.08%, Class B: 1.84%, Class C: 1.62%, Class Y: 0.76%, Class P:
0.87%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
10
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Weighted Average Duration 2.42 yrs.
Weighted Average Maturity 3.00 yrs.
Average Coupon 3.52%
Average Quality AAA
Net Assets (mm) $ 486.6
Number of Securities 332
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Bonds 102.5%
Investments Sold Short (7.6)
Written Options, Futures and Swaps 0.0**
Cash Equivalents and Other Assets Less Liabilities 5.1
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
ASSET ALLOCATION* 1/31/05
- --------------------------------------------------------------------------------
U.S. Government Agency Mortgage Pass-Through Certificates 85.1%
Asset-Backed Securities 8.9
Collateralized Mortgage Obligations 7.4
U.S. Government Obligations 0.8
Stripped Mortgage-Backed Securities 0.3
U.S. Agency Mortgage Pass-Through Certificates Sold Short (7.6)
Written Options, Futures and Swaps 0.0**
Cash Equivalents and Other Assets Less Liabilities 5.1
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
** Weighting represents less than 0.05% of the Portfolio's net assets as of
January 31, 2005.
11
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 2.24% (before the deduction of the maximum UBS PACE program fee; 1.47%
after the deduction of the maximum program fee), compared with the Lehman
Brothers Intermediate Government/Credit Index (the "Index") return of 2.49% and
the 1.97% return of the Lipper Short-Intermediate Investment Grade Debt Funds
median. (Returns for all share classes over various time periods are shown in
the table on page 13. Please note that the returns shown do not reflect the
deduction of taxes that a shareholder would pay on Portfolio distributions or
the redemption of Portfolio shares.)
MARKET REVIEW
With continued concerns over terrorism, the war in Iraq and the US presidential
election, the bond market was faced with many conflicting and potential
market-moving events during the semiannual period. Despite these issues, market
volatility moved lower throughout the period.
Sharply rising energy prices emerged as a legitimate threat to the global
economy in early 2004 and continued during the first half of the reporting
period, with crude oil futures peaking around $55 in late October 2004. However,
given the decisive conclusion to the US presidential election and the abatement
of oil supply disruption fears, prices subsequently declined. Against this
backdrop, and given the release of a strong employment report in early November
2004, there was optimism that the economic expansion was poised to gather new
momentum. By early December 2004, 10-year Treasury yields had reached 4.41%,
their highest level since August. But, as if on cue, the December employment
data release proved to be disappointing, despite 15 consecutive monthly
increases in non-farm payrolls, and yields declined again.
While a stable macroeconomic environment helped to keep long-term yields in a
fairly narrow range, perhaps a more important factor in lower interest rate
volatility was the discipline on the part of the Federal Reserve Board. The
Federal Open Market Committee voted for 0.25% interest rate hikes at each of its
four meetings during the reporting period, bringing the Fed Funds rate to 2.25%
at the close of the period and to 2.50% on February 2. In addition, it barely
altered the accompanying statements, which emphasized improving job creation,
contained inflation, and continuing gradual tightening.
ADVISOR'S COMMENTS
Throughout most of the period, the Portfolio was positioned in anticipation of a
flattening yield curve, whereby the difference between short- and long-term bond
yields would decrease. This bias benefited performance, as yields on 2-year
Treasuries increased 59 basis points over the period, while 10-year yields fell
35 basis points (a basis point is 1/100 of a percentage point). Toward the end
of the period, we moved to more of a barbell yield curve strategy, where the
Portfolio was positioned with an overweight in the short and long ends of the
yield curve while maintaining an underweight in intermediate maturities.
The Portfolio's duration was less than that of the Index during the period. This
detracted from performance as yields in the intermediate portion of the curve
fell. The yield on the 10-year Treasury fell from 4.48% on July 31, 2004, to
4.13% on January 31, 2005.
From a sector perspective, the Portfolio maintained an allocation to mortgages
during the period, which benefited performance as these securities outperformed.
This exposure was concentrated in floating rate securities and collateralized
mortgage obligations (CMOs), as we remained cautious on more generic, fixed-rate
mortgage securities. The Portfolio's allocation to asset-backed securities (ABS)
also contributed to performance. We increased our exposure in the sector during
the period as we saw potential for continued strength. Within the sector, we
favored non-prepayment-sensitive sectors with holdings focused on credit card
issues. The Portfolio maintained an underweight in the corporate sector, which
hurt relative performance as corporate bonds outperformed other sectors due to
continued demand for incremental yield.
The Portfolio's allocation to non-US dollar securities enhanced results. We
subsequently captured profits and reduced our exposure by closing out positions
in Europe during the second half of the period. However, we continued to
maintain an allocation to New Zealand.
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS
INVESTMENT ADVISOR:
BlackRock Financial Management, Inc.
PORTFOLIO MANAGERS:
Team
OBJECTIVE:
Current income, consistent with reasonable stability of principal.
INVESTMENT PROCESS:
BlackRock decides to buy specific bonds based on its credit analysis and review.
BlackRock strives to maintain the Portfolio's duration relative to the Lehman
Brothers Intermediate Government/Credit Index. To accomplish this, BlackRock
employs an analytical process that involves evaluating macroeconomic trends,
technical market factors, yield-curve exposure and market volatility. Once
BlackRock establishes the investment themes on duration, yield curve exposure,
convexity, sector weighting, credit quality and liquidity, the Portfolio's
investments are diversified by sector, subsector and security.
12
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- --------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 2.10% 1.96% N/A 2.83%
Maximum Sales Charge Class B** 1.70 1.18 N/A 2.50
or UBS PACE Program Fee Class C*** 1.84 1.45 N/A 2.98
Class Y**** 2.24 2.23 N/A 3.12
Class P***** 2.24 2.24 4.70% 4.74
After Deducting Class A* -2.48 -2.63 N/A 1.66
Maximum Sales Charge Class B** -3.30 -3.78 N/A 2.07
or UBS PACE Program Fee Class C*** 1.09 0.71 N/A 2.98
Class P***** 1.47 0.71 3.14 3.18
Lehman Brothers Intermediate Government/Credit Index 2.49 2.57 7.33 6.49
Lipper Short-Intermediate Investment Grade Debt Funds median 1.97 1.84 6.14 5.59
</Table>
Average annual total returns for periods ended December 31 2004, after deduction
of the maximum sales charge or UBS PACE program fee, were as follows: Class
A--1-year period, -2.16%; since inception, 1.68%; Class B--1-year period,
- -3.30%; since inception, 2.12%; Class C--1-year period, 1.21%; since inception,
3.04%; Class Y--1-year period, 2.73%; since inception, 3.17%; Class P--1-year
period, 1.21%; 5-year period, 3.04%; since inception, 3.21%.
~ Since inception returns are calculated as of commencement of issuance or
reissuance on August 24, 1995 for Class P shares, January 31, 2001 for
Class A shares, December 14, 2000 for Class B shares, December 1, 2000
for Class C shares and February 2, 2001 for Class Y shares. Since
inception returns for the Index and Lipper median are shown as of August
31, 1995, which is the nearest month-end of the inception date of the
oldest share class (Class P).
* Maximum sales charge for Class A shares is 4.5%. Class A shares bear
ongoing 12b-1 service fees.
** Maximum contingent deferred sales charge for Class B shares is 5% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 0.75%
imposed on redemptions and is reduced to 0% after one year. Class C
shares bear ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The Lehman Brothers Intermediate Government/Credit Index is a subset of the
Lehman Brothers Government/Credit Index covering all investment grade issues
with maturities between one and ten years. The average-weighted maturity is
typically between four and five years.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
13
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable); including sales charges (loads) or program
fees; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees (if applicable); and other Portfolio expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Portfolio and to compare these costs with the ongoing costs of investing
in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads) or program fees. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- ------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,021.00 $ 5.45
Hypothetical (5% annual return before expenses) 1,000.00 1,019.81 5.45
Class B Actual 1,000.00 1,017.00 9.20
Hypothetical (5% annual return before expenses) 1,000.00 1,016.08 9.20
Class C Actual 1,000.00 1,018.40 7.94
Hypothetical (5% annual return before expenses) 1,000.00 1,017.34 7.93
Class Y Actual 1,000.00 1,022.40 4.13
Hypothetical (5% annual return before expenses) 1,000.00 1,021.12 4.13
Class P Actual 1,000.00 1,022.40 4.08
Hypothetical (5% annual return before expenses) 1,000.00 1,021.17 4.08
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 1.07%, Class B: 1.81%, Class C: 1.56%, Class Y: 0.81%, Class P:
0.80%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
14
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Weighted Average Duration 3.1 yrs.
Weighted Average Maturity 3.7 yrs.
Average Coupon 4.70%
Net Assets (mm) $ 380.6
Number of Securities 239
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Long-Term Debt Securities (Bonds and Notes) 94.3%
Futures and Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 5.7
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
QUALITY DIVERSIFICATION* 1/31/05
- --------------------------------------------------------------------------------
U.S. Government and Agency Securities 37.9%
AAA 27.0
AA 11.8
A 5.6
BBB and Below 12.0
Futures and Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 5.7
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
ASSET ALLOCATION* 1/31/05
- --------------------------------------------------------------------------------
Corporate Securities 34.4%
U.S. Government Obligations 20.8
U.S. Government Agency Mortgage Pass-Through Certificates 15.1
Collateralized Mortgage Obligations 12.9
Asset-Backed Securities 9.5
International Government Obligations 1.6
Futures and Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 5.7
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
** Weighting represents less than 0.05% of the Portfolio's net assets as of
January 31, 2005.
15
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 4.32% (before the deduction of the maximum UBS PACE program fee; 3.53%
after the deduction of the maximum program fee), compared with the Lehman
Brothers Government/Credit Index (the "Index"), which returned 4.02%, and the
Lipper Intermediate Investment Grade Debt Funds median, which returned 3.57%.
(Returns for all share classes over various time periods are shown in the table
on page 18. Please note that the returns shown do not reflect the deduction of
taxes that a shareholder would pay on Portfolio distributions or the redemption
of Portfolio shares.)
MARKET REVIEW
Most major fixed income sectors posted gains during the period, with bonds
showing unexpected strength, despite several major headwinds. These included
expanding US fiscal deficits, a falling US dollar and market perceptions, as the
year began, that interest rates were bound to rise from levels near historic
lows.
At the start of the period, economic data releases suggested moderate economic
growth, as job numbers, inflation and consumer confidence fell short of analyst
expectations, again throwing doubts on the strength of the recovery. Bonds
subsequently rallied as weak employment growth and lower inflation prompted a
fall in interest rates. The Federal Reserve Board (the "Fed") continued to raise
the federal funds rate (or "fed funds" rate)--the rate that banks charge one
another for funds they borrow on an overnight basis--at a measured pace during
the period, increasing it from 1.0% to 2.25% in a series of small hikes, and to
2.50% at their February 2 meeting. In our view, investors understood that the
Fed was lifting rates from unusually low levels that had been set to ward off
deflation.
ADVISOR'S COMMENTS
The Portfolio outperformed its benchmark during the reporting period, as the
benefits of our tactical portfolio adjustments and holdings in non-Index
securities more than offset the negative impact of underweights in the
strong-performing corporate and mortgage sectors. During the period, we felt
that core bond securities (those contained in the Index) presented limited
buying opportunities. Therefore, the Portfolio also included securities not
contained in the Index. In particular, we focused on issues that we believed
offered quality, value and diversification. During the period, the overall US
portion of the Portfolio had a lower duration than that of the Index. This
detracted from results, as intermediate and longer-term US interest rates fell.
Conversely, we held a longer-than-Index duration in European securities. This
proved to be beneficial, as these yields declined over the period. Our exposure
to select securities with short-term maturities also added value during the
reporting period, as these yields rose less than the markets expected when the
Fed raised rates.
Significant support for US Treasury and corporate bond markets came from abroad.
These investors included Asian central banks, who have attempted to support the
US dollar and temper their currencies' appreciation by buying US bonds. More
than 40% of outstanding Treasuries are now held by investors outside the US.
Foreign buyers of corporate securities included institutions worldwide, but
especially those in Europe and the UK, as they looked for extra yield that was
unavailable in their domestic markets. Non-US investors now own more than 20% of
outstanding US corporate bonds.
In this environment, underweighting the corporate sector hurt returns as the
sector benefited from investors' attraction to their yields. However, security
selection in this area added to returns. A mortgage emphasis and security
selection helped returns as low volatility and strong bank demand supported the
sector. A tactical allocation to real return bonds added value, as Treasury
Inflation Protected Securities
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
INVESTMENT ADVISOR:
Pacific Investment Management Company LLC ("PIMCO")
PORTFOLIO MANAGER:
William C. Powers
OBJECTIVE:
Total return consisting of income and capital appreciation.
INVESTMENT PROCESS:
The Portfolio invests primarily in investment-grade bonds of governmental and
private issuers in the United States and foreign countries. Its dollar-weighted
average duration (a measure of sensitivity to interest rate changes) normally
ranges between three and eight years. PIMCO seeks to invest in the areas of the
bond market it considers undervalued, based on such factors as quality, sector,
coupon and maturity. PIMCO decides to buy or sell specific bonds based on an
analysis of their values relative to other similar bonds. PIMCO monitors the
prepayment experience of the Portfolio's mortgage-backed bonds, and will also
buy and sell securities to adjust the average portfolio duration, credit
quality, yield curve, sector and prepayment exposure, as appropriate.
16
<Page>
(TIPS) outperformed US Treasury securities by a wide margin. The municipal bond
market performed well over the period due, in part, to strong demand from retail
investors and insurance companies. As a result, the Portfolio's municipal bond
exposure enhanced results, as these markets continued to show improving credit
fundamentals and outpaced all other bond sectors during the reporting period.
17
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- --------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 4.15% 4.37% N/A 7.25%
Maximum Sales Charge Class B** 3.78 3.69 N/A 6.17
or UBS PACE Program Fee Class C*** 3.90 3.94 N/A 6.87
Class Y**** 4.32 4.68 N/A 6.99
Class P***** 4.32 4.77 8.38% 7.40
After Deducting Class A* -0.51 -0.32 N/A 6.06
Maximum Sales Charge Class B** -1.22 -1.26 N/A 5.75
or UBS PACE Program Fee Class C*** 3.15 3.19 N/A 6.87
Class P***** 3.53 3.21 6.76 5.80
Lehman Brothers Government/Credit Index 4.02 3.97 8.16 7.01
Lipper Intermediate Investment Grade Debt Funds median 3.57 3.69 7.08 6.05
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -0.04%; since inception, 6.07%; Class B--1-year period,
- -1.04%; since inception, 5.74%; Class C--1-year period, 3.37%; since inception,
6.89%; Class Y--1-year period, 4.99%; since inception, 7.01%; Class P--1-year
period, 3.37%; 5-year period, 6.51%; since inception, 5.80%.
~ Since inception returns are calculated as of commencement of issuance or
reissuance on August 24, 1995 for Class P shares, December 11, 2000 for
Class A shares, January 30, 2001 for Class B shares, December 1, 2000 for
Class C shares and February 2, 2001 for Class Y shares. Since inception
returns for the Index and Lipper median are shown as of August 31, 1995,
which is the nearest month-end of the inception date of the oldest share
class (Class P).
* Maximum sales charge for Class A shares is 4.5%. Class A shares bear
ongoing 12b-1 service fees.
** Maximum contingent deferred sales charge for Class B shares is 5% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 0.75%
imposed on redemptions and is reduced to 0% after one year. Class C
shares bear ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The Lehman Brothers Government/Credit Index is composed of all investment-grade
bonds that have at least one year to maturity. The Index's total return
comprises price appreciation/depreciation and income as a percentage of the
original investment. The Index is rebalanced monthly by market capitalization.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
18
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads) or program
fees; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees (if applicable); and other Portfolio expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Portfolio and to compare these costs with the ongoing costs of investing
in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads) or program fees. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- ------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,041.50 $ 6.33
Hypothetical (5% annual return before expenses) 1,000.00 1,019.00 6.26
Class B Actual 1,000.00 1,037.80 9.96
Hypothetical (5% annual return before expenses) 1,000.00 1,015.43 9.86
Class C Actual 1,000.00 1,039.00 8.84
Hypothetical (5% annual return before expenses) 1,000.00 1,016.53 8.74
Class Y Actual 1,000.00 1,043.20 4.69
Hypothetical (5% annual return before expenses) 1,000.00 1,020.62 4.63
Class P Actual 1,000.00 1,043.20 4.79
Hypothetical (5% annual return before expenses) 1,000.00 1,020.52 4.74
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 1.23%, Class B: 1.94%, Class C: 1.72%, Class Y: 0.91%, Class P:
0.93%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
19
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Weighted Average Duration 4.67 yrs.
Weighted Average Maturity 8.35 yrs.
Average Coupon 4.80%
Net Assets (mm) $ 434.2
Number of Securities 186
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Long-Term Debt Securities (Bond and Notes) 87.1%
Futures, Swaps and Forward Foreign Currency Contracts (0.6)
Cash Equivalents and Other Assets Less Liabilities 13.5
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
QUALITY DIVERSIFICATION* 1/31/05
- --------------------------------------------------------------------------------
U.S. Government and Agency Securities 48.2%
AAA 24.1
AA 2.3
A 1.5
BBB 7.0
BB 1.7
B 1.0
Below B/Non-rated 1.3
Futures, Swaps and Forward Foreign Currency Contracts (0.6)
Cash Equivalents and Other Assets Less Liabilities 13.5
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
SECTOR ALLOCATION* 1/31/05
- --------------------------------------------------------------------------------
Collateralized Mortgage Obligations 53.7%
U.S. Government Agency Mortgage Pass-Through Certificates 8.1
Corporate Securities 7.9
International Government Obligations 7.2
U.S. Government Obligations 5.6
Municipal Securities 2.8
Asset-Backed Securities 1.8
Futures, Swaps and Forward Foreign Currency Contracts (0.6)
Stripped Mortgage-Backed Securities 0.0**
Cash Equivalents and Other Assets Less Liabilities 13.5
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
** Weighting represents less than 0.05% of the Portfolio's net assets as of
January 31, 2005.
20
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE MUNICIPAL FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Fund's Class P shares returned
2.55% (before the deduction of the maximum UBS PACE program fee; 1.78% after the
deduction of the maximum program fee), compared with 2.68% for the Lehman
Brothers Municipal Five-Year Index (the "Index") and 3.04% for the Lipper
Intermediate Municipal Debt Funds median. (Returns for all share classes over
various time periods are shown in the table on page 23. Please note that the
returns shown do not reflect the deduction of taxes that a shareholder could pay
on Portfolio distributions or the redemption of Portfolio shares.)
MARKET REVIEW
The Federal Reserve Board (the "Fed") continued to raise short-term interest
rates during the six-month reporting period and reiterated its desire to
increase rates at a "measured pace." The federal funds rate (or "fed funds"
rate)--the rate that banks charge one another for funds they borrow on an
overnight basis--rose from 1.25% to 2.25% over the period and once more on
February 2, bringing the rate to 2.50%. The municipal bond market was affected
by these hikes, as yields on securities with maturities of less than three years
rose by 20 to 75 basis points (a basis point is 1/100th of a percent). However,
yields on intermediate- to long-term municipals declined 15 to 50 basis points.
Long-term yields were supported by a lack of inflationary pressures and strong
demand for Treasuries by foreign investors. As a result of these movements, the
municipal yield curve flattened, with the difference between short- and
long-term yields narrowing significantly.
Credit quality continued to strengthen, as municipalities benefited from higher
tax revenues, driven by improving economic growth, fiscal discipline and, in
many cases, higher tax rates. While retail investors largely remained on the
sidelines, there was strong demand from property and casualty insurers. In
particular, hedge fund and arbitrage investors were key participants in the
buying and selling of tax-free bonds. All told, municipal securities
significantly outperformed Treasuries during the reporting period.
ADVISOR'S COMMENTS
Over the period, the Portfolio maintained a yield advantage relative to its
Index as we emphasized revenue bonds in favor of lower-yielding insured and
pre-refunded bonds. We were drawn to general obligation bonds as the fiscal
outlook improved along with the strengthening economy. Premium coupon bonds were
emphasized due to the excess yields they offered and because of their defensive
characteristics.
The Portfolio's duration was relatively neutral to the benchmark over the period
and this had a minimal impact on relative performance. Yield curve exposure
generally extended from two to 12 years. In contrast, the Index only contains
securities with maturities between four and six years. Broad intermediate-term
yield curve exposure contributed positively, particularly our holdings with six-
to 12-year maturities.
Positive sector selection, particularly our revenue bonds, was a key driver of
returns during the period. As investors sought higher-yielding bonds in this
relatively low interest rate environment, income-oriented sectors such as
hospitals, industrial development and tobacco were strong performers. An
underweight to pre-refunded bonds relative to the Index was also beneficial, as
credit sectors outperformed. A 2% weighting in tobacco bonds enhanced results,
as the sector benefited from light supply and an improving litigation
environment. Industrial development bonds performed well in concert with their
taxable corporate bond counterparts. However, exposure to housing bonds
detracted modestly from relative returns, as the sector lagged amidst rising
prepayment activity.
Overweight positions to Florida and Puerto Rico hampered performance as both
lagged the national market, largely due to heavy supply. However, exposure to
California was positive, largely due to our holdings of the state's general
obligation bonds.
At the end of the period, the Portfolio continued to generate excess yield
versus the Index. This was largely due to sector and security selection. The
Portfolio continues to emphasize revenue sectors such as housing, hospital, and
industrial development bonds. Careful
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE MUNICIPAL FIXED INCOME INVESTMENTS
INVESTMENT ADVISOR:
Standish Mellon Asset Management Company LLC ("Standish Mellon")
PORTFOLIO MANAGER:
Christine L. Todd
OBJECTIVE:
High current income exempt from Federal income tax.
INVESTMENT PROCESS:
In deciding which securities to buy for the Portfolio, Standish Mellon seeks to
identify undervalued sectors or geographical regions of the municipal market, or
undervalued individual securities. To do this, Standish Mellon uses credit
research and valuation analysis, and monitors the relationship of the municipal
yield curve to the Treasury yield curve. Standish Mellon may also make modest
duration adjustments based on economic analyses and interest rate forecasts.
Standish Mellon generally sells securities if it identifies more attractive
investment opportunities within its investment criteria that may improve the
Portfolio's return. Standish Mellon also may sell securities with weakening
credit profiles or to adjust the average duration of the Portfolio.
21
<Page>
analysis of state general obligation credits and issuance patterns, in the
context of relative valuation, will likely drive increased exposure to
securities that are backed by tax revenues. To achieve the proper balance of
yield, liquidity, quality and diversification, the Portfolio will maintain a
moderate exposure to pre-refunded bonds and a neutral weight to insured
securities. A high-quality bias will remain in force going forward.
22
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- --------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 2.44% 1.83% N/A 4.10%
Maximum Sales Charge Class B** 2.06 1.06 N/A 3.34
or UBS PACE Program Fee Class C*** 2.18 1.30 N/A 4.09
Class Y**** 2.64 2.11 N/A 4.37
Class P***** 2.55 2.02 5.48% 4.94
After Deducting Class A* -2.15 -2.72 N/A 2.90
Maximum Sales Charge Class B** -2.94 -3.88 N/A 2.88
or UBS PACE Program Fee Class C*** 1.43 0.56 N/A 4.09
Class P***** 1.78 0.50 3.91 3.38
Lehman Brothers Municipal Five-Year Index 2.68 2.21 5.99 5.23
Lipper Intermediate Municipal Debt Funds median 3.04 2.67 5.94 5.06
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -2.43%; since inception, 2.94%; Class B--1-year period,
- -3.66%; since inception, 2.93%; Class C--1-year period, 0.79%; since inception,
4.15%; Class Y--1-year period, 2.26%; since inception, 4.42%; Class P--1-year
period, 0.81%; 5-year period, 3.74%; since inception, 3.41%.
~ Since inception returns are calculated as of commencement of issuance on
August 24, 1995 for Class P shares, January 23, 2001 for Class A shares,
February 23, 2001 for Class B shares, December 4, 2000 for Class C shares
and February 23, 2001 for Class Y shares. Since inception returns for the
Index and Lipper median are shown as of August 31, 1995, which is the
nearest month-end of the inception date of the oldest share class (Class
P).
* Maximum sales charge for Class A shares is 4.5%. Class A shares bear
ongoing 12b-1 service fees.
** Maximum contingent deferred sales charge for Class B shares is 5% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 0.75%
imposed on redemptions and is reduced to 0% after one year. Class C
shares bear ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The Lehman Brothers Municipal Five-Year Index is a total return performance
benchmark for the tax-exempt bond market. The Index is a sub-index of the Lehman
Brothers Municipal Bond Index and includes all issues rated Aa/AA or higher with
an average maturity of five years.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
could pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
23
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable); including sales charges (loads) or program
fees; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees (if applicable); and other Portfolio expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Portfolio and to compare these costs with the ongoing costs of investing
in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads) or program fees. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- ------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,024.40 $ 4.90
Hypothetical (5% annual return before expenses) 1,000.00 1,020.37 4.89
Class B Actual 1,000.00 1,020.60 8.71
Hypothetical (5% annual return before expenses) 1,000.00 1,016.59 8.69
Class C Actual 1,000.00 1,021.80 7.54
Hypothetical (5% annual return before expenses) 1,000.00 1,017.74 7.53
Class Y Actual 1,000.00 1,026.40 3.78
Hypothetical (5% annual return before expenses) 1,000.00 1,021.48 3.77
Class P Actual 1,000.00 1,025.50 3.88
Hypothetical (5% annual return before expenses) 1,000.00 1,021.37 3.87
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 0.96%, Class B:1.71%, Class C: 1.48%, Class Y: 0.74%, Class P:
0.76%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
24
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Weighted Average Duration 4.29 yrs.
Weighted Average Maturity 5.00 yrs.
Average Coupon 5.22%
Net Assets (mm) $ 256.8
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Municipal Bonds and Notes 98.5%
Short-Term Municipal Variable Notes 3.5
Tax-Free Money Market Fund 0.0**
Other Assets Less Liabilities (2.0)
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
TOP FIVE SECTORS* 1/31/05
- --------------------------------------------------------------------------------
Insured 31.9%
Revenue 28.4
General Obligations 22.1
Pre-Refunded 5.3
Housing 3.2
- --------------------------------------------------------------------------------
Total 90.9%
- --------------------------------------------------------------------------------
<Caption>
TOP FIVE STATES* 1/31/05
- --------------------------------------------------------------------------------
California 15.0%
New York 12.1
Illinois 9.6
Texas 9.3
Massachusetts 5.7
- --------------------------------------------------------------------------------
Total 51.7%
- --------------------------------------------------------------------------------
<Caption>
QUALITY DIVERSIFICATION* 1/31/05
- --------------------------------------------------------------------------------
AAA and Agency-Backed Securities 46.0%
AA 24.1
A 17.3
BBB 10.4
A-1+/VMIG1 3.5
Non-rated 0.7
Tax-Free Money Market Fund 0.0**
Other Assets Less Liabilities (2.0)
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
** Weighting represents less than 0.05% of the Portfolio's net assets as of
January 31, 2005.
25
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE GLOBAL FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 10.54% (before deduction of the maximum UBS PACE program fee; 9.70%
after deduction of the maximum program fee), compared with an 11.05% return for
Citigroup World Government Bond Index (in US dollars) (the "Index") and a 9.34%
return for the Lipper Global Income Funds median. (Returns for all share classes
over various time periods are shown in the table on page 28. Please note that
the returns shown do not reflect the deduction of taxes that a shareholder would
pay on Portfolio distributions or the redemption of Portfolio shares.)
MARKET REVIEW
During the reporting period, sentiment in the financial markets was driven by
ongoing fears about the impact of record oil prices on global growth prospects
and uncertainty regarding the US election. Global bond markets remained sound,
supported by the soft growth environment and few signs of strong inflationary
pressures. The US dollar continued to come under pressure as fears grew about
the consequences of the ever-growing trade deficit. Into the fourth quarter,
there was plenty of volatility as the downtrend in the dollar accelerated. Both
the Japanese yen and euro were major beneficiaries of the dollar's woes. The
euro ended 2004 at a record high. However, into the New Year, it was the
dollar's turn to outperform, reversing some of the downward trend seen at the
end of 2004.
ADVISORS' COMMENTS
ROGGE GLOBAL PARTNERS
While the US has long been one of our least favorite bond markets, we were not
especially keen on any of the G3 countries, a group of three industrialized
nations consisting of Germany, Japan, and the US. In particular, Euroland failed
to excite us. Over the reporting period, our underweight positions in the US and
Japan relative to the Index added value. An overweight Canada position also
added to performance, while our preference for Swedish and Danish bonds among
the European markets had little impact on Portfolio returns. However, yield
curve positioning was negative for the period, primarily because we were
positioned at the short end of the US and Japanese yield curves. This detracted
from results, as short-term yields in both countries rose (and prices fell),
whereas long-term yields remained fairly stable.
Although there were some clear signs of a US economic rebound as the year drew
to a close, it still failed to play any role in determining the direction of the
US dollar. Sentiment in the market was dismissive of positive US data, with the
focus remaining on the rising trade deficit. During the reporting period, our
currency positioning of being long Australian and Canadian dollars added value.
In addition, our long Swedish krona position versus the euro enhanced results.
However, our currency positioning did give back some of its previous gains in
January 2005 as the US dollar strengthened.
Investment grade credit continued to perform well, assisted, in our view, by the
decisive outcome of the US presidential election, capping a year that was
probably better than many investment grade investors had dared hope for when
2004 began. For much of the review period,
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE GLOBAL FIXED INCOME INVESTMENTS
INVESTMENT ADVISORS:
Rogge Global Partners plc ("Rogge Global Partners") and Fischer Francis Trees &
Watts, Inc. (and affiliates) ("FFTW")
PORTFOLIO MANAGERS:
Rogge Global Partners: Team, led by Olaf Rogge; FFTW: Team, led by David J.
Marmon.
OBJECTIVE:
High total return.
INVESTMENT PROCESS:
ROGGE GLOBAL PARTNERS seeks to invest the Portfolio assets it manages in bonds
of issuers in financially healthy countries, because it believes that these
investments produce the highest bond and currency returns over time. In deciding
which bonds to buy for the Portfolio, Rogge Global Partners uses a top-down
analysis to find value across countries and to forecast interest and
currency-exchange rates over a one-year horizon in those countries. Rogge Global
Partners also uses an optimization model to help determine country currency and
duration positions for the Portfolio. Rogge Global Partners generally sells
securities that no longer meet these selection criteria or when it identifies
more attractive investment opportunities, and may also sell securities to adjust
the average duration of the Portfolio assets it manages.
FFTW divides the investment universe into three major blocs (Europe, the United
States and Japan) and analyzes in each bloc, trends in economic growth,
inflation, and monetary and fiscal policies. FFTW decides which securities to
buy for the Portfolio by looking for investment opportunities where its opinions
on the current economic environment of a bloc or country differ from those it
judges to be reflected in current market valuations. FFTW generally sells
securities when it has identified more attractive investment opportunities.
26
<Page>
approximately 10%-15% of the Portfolio was invested in a diversified group of
non-government securities, contributing to performance over the period.
Our analysis continued to show that credit quality in emerging markets debt was
improving. Economic factors were constructive in most regions, with growth data
continuing to surprise on the upside. Over the review period, roughly 2% of the
Portfolio was invested in emerging markets debt, which enhanced relative
results.
FISCHER FRANCIS TREES & WATTS
In general, our corporate, interest rate management, and foreign exchange
positions generated positive results over the period. Corporate securities
rallied during the third quarter of 2004, as the Fed continued its policy of
"measured" rate hikes. The US corporate bond market exhibited its best monthly
performance of 2004 in November. The majority of the positive excess return was
sparked by the quick resolution of the presidential election in early November.
In addition, the euro credit market posted positive returns. At the end of the
period, we were underweight both US and European corporate securities.
Interest rate positions significantly contributed to returns during the fourth
quarter of 2004 and in January 2005. In Japan, we maintained our neutral bias
throughout the fourth quarter. In October, we continued to remain neutral
overall in Europe while continuing to overweight the UK versus the Eurozone. In
November, in Europe, we switched to a long duration position while continuing to
overweight the UK versus the Eurozone. We also continued to overweight the long
end of the US yield curve, reducing this position throughout the month. At the
end of the period, the overall duration of the Portfolio was long relative to
the benchmark, with the majority of the overweight in Europe.
We maintained a neutral allocation to mortgages during the beginning of the
period. Agency mortgage-backed securities outperformed duration-matched
Treasuries during this period, despite a meaningful drop in mortgage rates and a
corresponding rise in prepayment risk. We then began increasing our allocation
through the end of the period. Mortgages began the fourth quarter on a strong
note, outperforming Treasuries. The sector benefited from strong demand after
the weaker-than-consensus September payroll figures helped push interest rates
lower. During November, mortgages outperformed Treasuries almost every day,
leading to the second best month for the mortgage sector in 2004. Returns for
the mortgage sector were mixed in December, but they finished with a small edge
versus Treasuries on a duration-adjusted basis. We are continuing our overweight
bias to the mortgage sector into 2005.
In foreign exchange, price action in the major currencies was largely
range-bound throughout the third quarter of 2004, as oil prices and US economic
sentiment continued to dominate the market. The bear market for the US dollar
that gripped the foreign exchange markets in October continued unabated in
November. In November, the euro bore the brunt of the dollar's depreciation,
although Asian currencies appreciated significantly. December began with a brief
pause in the downward trend for the US dollar, although it did eventually
depreciate, with the euro reaching record highs during the holiday period. The
main theme driving the depreciation of the dollar continued to be the large,
unsustainable structural imbalances in the US economy, as well as the
diversification of central bank reserves out of the dollar and into the euro,
chiefly by Asia. Our foreign exchange positions fluctuated during the period in
response to changing expectations. Our main positions included being short the
euro versus the Swiss franc and short the US dollar versus the Canadian dollar
in August. In addition, we were long the US dollar versus the euro and long the
Japanese yen versus the euro in September, underweight the US dollar versus the
Japanese yen in October and November, overweight the euro versus the US dollar
in December, and short the euro versus the yen in January.
27
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- --------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 10.41% 8.22% N/A 9.77%
Maximum Sales Charge Class B** 9.97 7.39 N/A 8.23
or UBS PACE Program Fee Class C*** 10.14 7.69 N/A 9.34
Class Y**** 10.59 8.47 N/A 9.51
Class P***** 10.54 8.47 8.16% 6.01
After Deducting Class A* 5.47 3.36 N/A 8.57
Maximum Sales Charge Class B** 4.97 2.39 N/A 7.83
or UBS PACE Program Fee Class C*** 9.39 6.94 N/A 9.34
Class P***** 9.70 6.85 6.55 4.43
Citigroup World Government Bond Index (in USD) 11.05 8.51 8.95 6.52
Lipper Global Income Funds median 9.34 7.58 7.98 6.45
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 4.85%; since inception, 9.11%; Class B--1-year period,
4.02%; since inception, 8.42%; Class C--1-year period, 8.48%; since inception,
9.91%; Class Y--1-year period, 10.11%; since inception, 10.09%; Class P--1-year
period, 8.39%; 5-year period, 5.97%; since inception, 4.63%.
~ Since inception returns are calculated as of commencement of issuance on
August 24, 1995 for Class P shares, December 11, 2000 for Class A shares,
February 5, 2001 for Class B shares, December 1, 2000 for Class C shares
and January 16, 2001 for Class Y shares. Since inception returns for the
Index and Lipper median are shown as of August 31, 1995, which is the
nearest month-end of the inception date of the oldest share class (Class
P).
* Maximum sales charge for Class A shares is 4.5%. Class A shares bear
ongoing 12b-1 service fees.
** Maximum contingent deferred sales charge for Class B shares is 5% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 0.75%
imposed on redemptions and is reduced to 0% after one year. Class C
shares bear ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The Citigroup World Government Bond Index (in USD) is a market
capitalization-weighted index composed of straight (i.e., not floating rate or
index-linked) government bonds with a one-year minimum maturity. The average
maturity is seven years. The Index includes the 21 government bond markets of
Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece,
Ireland, Italy, Japan, the Netherlands, Norway, Poland, Portugal, Spain, Sweden,
Switzerland, the United Kingdom, and the United States.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
28
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable); including sales charges (loads) or program
fees; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees (if applicable); and other Portfolio expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Portfolio and to compare these costs with the ongoing costs of investing
in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads) or program fees. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- ------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,104.10 $ 7.21
Hypothetical (5% annual return before expenses) 1,000.00 1,018.35 6.92
Class B Actual 1,000.00 1,099.70 11.17
Hypothetical (5% annual return before expenses) 1,000.00 1,014.57 10.71
Class C Actual 1,000.00 1,101.40 9.80
Hypothetical (5% annual return before expenses) 1,000.00 1,015.88 9.40
Class Y Actual 1,000.00 1,105.90 5.57
Hypothetical (5% annual return before expenses) 1,000.00 1,019.91 5.35
Class P Actual 1,000.00 1,105.40 6.00
Hypothetical (5% annual return before expenses) 1,000.00 1,019.51 5.75
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 1.36%, Class B: 2.11%, Class C: 1.85%, Class Y: 1.05%, Class P:
1.13%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
29
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Net Assets (mm) $ 431.7
Number of Securities 208
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Long-Term Global Debt Securities 87.2%
Futures and Forward Foreign Currency Contracts 0.4
Warrants 0.0**
Cash Equivalents and Other Assets Less Liabilities 12.4
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
QUALITY DIVERSIFICATION* 1/31/05
- --------------------------------------------------------------------------------
U.S. Government and Agency Securities 17.3%
AAA 38.9
AA 17.5
A 5.2
BBB 4.6
BB 0.5
Non-Rated 3.2
Futures and Forward Foreign Currency Contracts 0.4
Warrants 0.0**
Cash Equivalents and Other Assets Less Liabilities 12.4
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
TOP 5 COUNTRIES* 1/31/05
- --------------------------------------------------------------------------------
United States 45.2%
Japan 11.2
Sweden 7.6
United Kingdom 6.5
France 5.5
- --------------------------------------------------------------------------------
Total 76.0%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
** Weighting represents less than 0.05% of the Portfolio's net assets as of
January 31, 2005.
30
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE LARGE CO VALUE EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 10.22% (before the deduction of the maximum UBS PACE program fee; 9.39%
after the deduction of the maximum program fee), compared with an 11.67% return
of the Russell 1000 Value Index (the "Index") and a 9.21% return of the Lipper
Large Cap Value Funds median. (Returns for all share classes over various time
periods are shown in the table on page 33. Please note that the returns shown do
not reflect the deduction of taxes that a shareholder would pay on Portfolio
distributions or the redemption of Portfolio shares.)
MARKET REVIEW
A combination of factors created a backdrop for strong performance in the equity
markets, including lower-than-expected long-term interest rates, slower but
still robust economic and corporate earnings growth, and a quick and decisive US
presidential election. For the six-month reporting period, market leadership
reversed course twice. In the first month of the period, higher-quality
securities outperformed more speculative asset classes. However, market
leadership then reverted to that experienced in 2003, as improved investor
optimism spurred by stronger economic data ignited a rally that drove
speculative securities higher. A significant decline in the dollar, coupled with
an increase in the US trade deficit, rising inflation and continued terrorism
around the world, did not restrain investor enthusiasm during the last four
months of 2004. During this period, the lowest priced securities with the
smallest market capitalizations and the weakest earnings prospects performed the
best. The factors that drove the market again reversed course in January 2005,
and high-quality securities that led earlier in 2004 outperformed.
ADVISORS' COMMENTS
SSgA
During the six-month reporting period, our portion of the Portfolio slightly
outperformed the Index, buoyed by our investment process, which incorporates
perspectives on valuation, quality and investor sentiment. Over the period,
these components were solid predictors of investment returns; specifically, the
earnings-to-price and price reversal (which indicates whether a stock has been
"overbought" or "oversold") perspectives have performed well.
As we would expect, results were driven by stock selection decisions. More
specifically, the Portfolio's technology and utility holdings enhanced results
over the period. Conversely, the Portfolio's returns were somewhat dampened by
its financials and consumer staples holdings. At the stock level, VeriSign,
Inc., the main operator of the Internet address database, was our portion of the
Portfolio's largest positive contributor to performance. The company reported
fiscal third quarter profit of more than $40 million, as sales increased after
the acquisition of Jamba!, which sells ring tones and music for mobile
telephones. An overweight position in McAfee Inc. also boosted returns. The
world's second largest maker of anti-virus software announced that its fiscal
third quarter profit surged to $118.1 million, reflecting a gain from the sale
of its Sniffer network monitoring business. Within the utilities sector, TXU
Corp. climbed 77% over the period. TXU, the largest power producer in Texas,
offered to repurchase $1.54 billion in equity-linked debt securities and
convertible notes to reduce its borrowing costs and avert an increase in its
outstanding shares. On the other hand, not holding Altria Group Inc., owner of
cigarette maker Phillip Morris
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE LARGE CO VALUE EQUITY INVESTMENTS
INVESTMENT ADVISORS:
SSgA Funds Management, Inc. ("SSgA"), Institutional Capital Corporation ("ICAP")
and Westwood Management Corporation ("Westwood")
PORTFOLIO MANAGER:
SSgA: Team; ICAP: Team; Westwood: Susan M. Byrne
OBJECTIVE:
Capital appreciation and dividend income.
INVESTMENT PROCESS:
SSgA uses several independent valuation measures to identify investment
opportunities within a large-cap value universe and combines factors to produce
an overall rank. Comprehensive research determines the optimal weighting of
these perspectives to arrive at strategies that vary by industry. SSgA
constructs the portion of the Portfolio it advises by selecting the
highest-ranked stocks from the investable universe, and manages deviations from
the benchmark to maximize the risk/reward trade-off. The resulting Portfolio has
characteristics similar to the Russell 1000 Value Index. SSgA generally sells
stocks that no longer meet its selection criteria or that it believes otherwise
may adversely affect performance relative to the Index.
ICAP uses its proprietary valuation model to identify large-capitalization
companies that it believes offer the best relative values because they sell
below the price-to-earnings ratio warranted by their prospects. ICAP looks for
companies where there is a catalyst for positive change with potential to
produce stock appreciation of 15% or more relative to the market over the next
12 to 18 months. ICAP also uses internally generated research to evaluate the
financial condition and business prospects of every company it considers. ICAP
monitors each stock purchased and sells the stock when its target price is
achieved, the catalyst becomes inoperative, or ICAP identifies another stock
with greater opportunity for appreciation.
WESTWOOD maintains a list of securities that it believes have proven records and
potential for above-average earnings growth. It considers purchasing a security
on such list if Westwood's forecasted growth rates and earnings estimates exceed
Wall Street expectations, or Westwood's forecasted price/earnings ratio is less
than the forecasted growth rate. Westwood monitors the issuing companies and
sells a stock if Westwood expects limited future price appreciation or if the
projected price/earnings ratio exceeds the three-year growth rate.
31
<Page>
and Kraft Foods, negatively impacted performance in our portion of the
Portfolio. Investors drove its share price up after the firm's CEO announced
prospective plans to separate the company into several units to improve
shareholder returns. Our portion of the Portfolio was also hurt by not holding
Goldman Sachs Group and underweighting Citigroup Inc., which rose +22% and +17%,
respectively.
ICAP
During the reporting period, we continued to seek to invest in large-cap
companies with strong cash flows, solid market share, good management teams, and
profitability. We also favored income-paying stocks with growing earnings and
dividends.
Overall, our portion of the Portfolio slightly underperformed the benchmark over
the period, primarily due to stock selection. In particular, our holdings in the
technology, consumer services, financials, utilities and transportation sectors
lagged the benchmark. However, our holdings in the basic industries, capital
spending, consumer durables, consumer staples, healthcare, retail and
communications sectors enhanced relative results.
Our portion of the Portfolio was overweight in the basic industries, technology,
healthcare, energy, retail, transportation, and communications sectors relative
to the Index during the period. Conversely, our portion of the Portfolio held
underweights in the capital spending, consumer durables, consumer services,
financials and utilities sectors.
The top five positive contributors to performance over the period were Altria
Group Inc., due to the potential spinoff of its Kraft food business; Archer
Daniels Midland Co., which benefited from a worldwide demand for food products;
ConocoPhillips, due to solid operations and higher oil prices; Citigroup Inc.,
because of its strong financial performance; and Goldman Sachs Group Inc., which
benefited from increased merger and acquisition activity. The largest negative
contributors to performance were Pfizer,** due to alleged cardiovascular risks
with its drug Celebrex; Clear Channel Communications,** because of disappointing
advertising revenue; Fannie Mae,** as it suffered due to a restatement of its
earnings; Hewlett-Packard Co., because of disappointing results from its
acquisition of Compaq Computer and missed financial targets; and Corinthian
Colleges,** as it posted disappointing earnings.
ICAP continues to position our portion of the Portfolio with financially strong
large cap value companies with high dividend yields and growing earnings. We
believe that these types of companies will be able to benefit from increased
worldwide demand for goods and services in a rising interest rate environment.
WESTWOOD
Overall, our portion of the Portfolio experienced solid performance from holding
quality companies, but the Index saw periods when companies that we consider to
be lower quality outperformed. Given the divergence between our process and the
temporary areas of Index strength, our portion of the Portfolio lagged the Index
over the period.
During the reporting period, the largest positive contributor to performance was
security selection in the financial services, consumer discretionary, and autos
and transportation sectors. The financial services sector was an interesting one
for us during the period. It was the largest underweight relative to the Index,
because the Russell 1000 Value Index finished the period with a sector weight of
approximately 33%, while our risk control rules prohibit sector allocations
above 25%. As mentioned, our security selection in financial services enhanced
results, in particular our holdings in the securities brokerage, regional banks
and insurance industries. However, our underweight hurt relative performance as
the sector as a whole performed well over the period. Within the consumer
discretionary sector, our portion of the Portfolio benefited from a 30% return
from Starwood Hotels & Resorts Worldwide Inc., as well as double-digit returns
from Federated Department Stores, Inc. and Altria Group Inc. Holdings in the
auto and transportation industries benefited from strength in the industrial
sectors of the economy, as exhibited by strong performance by Burlington
Northern Santa Fe Corp. An overweight in the energy sector also enhanced
results. Strong stock selection from holdings such as ConocoPhillips positively
contributed to results, and most of our energy-related holdings posted
double-digit returns over the reporting period.
The primary detractor from results was found in the healthcare sector, with
performance in the utilities and materials and processing sectors also hurting
returns. Within healthcare, Merck & Co. and Pfizer underperformed after the
announcement that Merck's drug Vioxx was being pulled from the market because of
safety concerns.** Pfizer produces a competing drug and was not directly
involved, but its share price was hurt by fears that its drugs would also be
pulled. Within utilities, underperformance from our holdings in the
telecommunications and electric utilities industries negatively impacted the
Portfolio. Stocks in the materials and processing sector also lagged as
investors began to fear that rising costs would negatively impact these
companies.
Based on what we believe to be true about various economic factors, our
Portfolio is focused on high quality. We are investing in cyclical companies
that have the ability to generate strong levels of free cash flow growth and
leverage to the economic cycle. We are also focusing on companies that offer
attractive yields, expanding payout ratios and high or growing dividends.
** Not held in the Portfolio as of January 31, 2005.
32
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- --------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 10.09% 9.52% N/A 4.08%
Maximum Sales Charge Class B** 9.60 8.61 N/A 3.28
or UBS PACE Program Fee Class C*** 9.68 8.68 N/A 3.32
Class Y**** 10.25 9.88 N/A 3.96
Class P***** 10.22 9.84 4.47% 9.21
After Deducting Class A* 4.04 3.49 N/A 2.67
Maximum Sales Charge Class B** 4.60 3.61 N/A 2.85
or UBS PACE Program Fee Class C*** 8.68 7.68 N/A 3.32
Class P***** 9.39 8.20 2.92 7.58
Russell 1000 Value Index 11.67 12.45 5.59 11.82
Lipper Large Cap Value Funds median 9.21 7.99 3.34 9.40
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 6.66%; since inception, 3.08%; Class B--1-year period,
6.90%; since inception, 3.29%; Class C--1-year period, 10.98%; since inception,
3.76%; Class Y--1-year period, 13.22%; since inception, 4.41%; Class P--1-year
period, 11.45%; 5-year period, 1.77%; since inception, 7.82%.
~ Since inception returns are calculated as of commencement of issuance on
August 24, 1995 for Class P shares, November 27, 2000 for Class A, B and
C shares and January 19, 2001 for Class Y shares. Since inception returns
for the Index and Lipper median are shown as of August 31, 1995, which is
the nearest month-end of the inception date of the oldest share class
(Class P).
* 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% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 1% imposed
on redemptions and is reduced to 0% after one year. Class C shares bear
ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The Russell 1000 Value Index measures the performance of a large universe of
stocks with lower price-to-book ratios and lower forecasted growth values.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
33
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable); including sales charges (loads) or program
fees; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees (if applicable); and other Portfolio expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Portfolio and to compare these costs with the ongoing costs of investing
in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads) or program fees. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- ------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,100.90 $ 6.09
Hypothetical (5% annual return before expenses) 1,000.00 1,019.41 5.85
Class B Actual 1,000.00 1,096.00 10.83
Hypothetical (5% annual return before expenses) 1,000.00 1,014.87 10.41
Class C Actual 1,000.00 1,096.80 10.25
Hypothetical (5% annual return before expenses) 1,000.00 1,015.43 9.86
Class Y Actual 1,000.00 1,102.50 4.45
Hypothetical (5% annual return before expenses) 1,000.00 1,020.97 4.28
Class P Actual 1,000.00 1,102.20 4.93
Hypothetical (5% annual return before expenses) 1,000.00 1,020.52 4.74
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 1.15%, Class B: 2.05%, Class C: 1.94%, Class Y: 0.84%, Class P:
0.93%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
34
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- ----------------------------------------------------------------------------------
Net Assets (mm) $ 1,121.1
Number of Securities 159
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- ----------------------------------------------------------------------------------
Common Stocks 95.8%
ADRs 2.0
Cash Equivalents and Other Assets Less Liabilities 2.2
- ----------------------------------------------------------------------------------
Total 100.0%
- ----------------------------------------------------------------------------------
<Caption>
TOP 5 SECTORS* 1/31/05
- ----------------------------------------------------------------------------------
Financials 27.1%
Industrials 14.6
Energy 13.6
Consumer Discretionary 11.1
Information Technology 7.5
- ----------------------------------------------------------------------------------
Total 73.9%
- ----------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY HOLDINGS* 1/31/05
- ----------------------------------------------------------------------------------
Exxon Mobil 4.0%
Bank of America 3.8
Citigroup 3.3
General Electric 3.1
ChevronTexaco 1.9
J.P. Morgan Chase 1.9
Altria Group 1.9
ConocoPhillips 1.8
Verizon Communications 1.7
Comcast 1.6
- ----------------------------------------------------------------------------------
Total 25.0%
- ----------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
35
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE LARGE CO GROWTH EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 9.91% (before the deduction of the maximum UBS PACE program fee; 9.09%
after the deduction of the maximum program fee), compared with the Russell 1000
Growth Index (the "Index"), which returned 6.01%, and the Lipper Large-Cap
Growth Funds median, which returned 7.13%. (Returns for all share classes over
various time periods are shown in the table on page 38. Please note that the
returns shown do not reflect the deduction of taxes that a shareholder would pay
on Portfolio distributions or the redemption of Portfolio shares.)
MARKET REVIEW
US large capitalization equities performed well during the six-month reporting
period. Over that time, the S&P 500 Index--which is a proxy for the performance
of large capitalization companies--returned 8.16%. The lion's share of the
equity market's gains were achieved in November and December of 2004, when
investor confidence seemed to improve due to a quickly resolved US presidential
election, lower energy prices and generally strong corporate profits. During the
period, the strongest returns were generated by the utilities,
telecommunications services, consumer discretionary and energy sectors.
Conversely, healthcare, information technology, financials and consumer staples
lagged the overall market. There continued to be a significant divergence in
returns across investment styles over the period. Large capitalization value
equities, as represented by the Russell 1000 Value Index, returned 11.67%, while
large capitalization growth equities, as represented by the Russell 1000 Growth
Index, had a return of 6.01%.
ADVISORS' COMMENTS
GEAM
Our bottom-up stock selection process proved beneficial over the reporting
period, as our portion of the Portfolio outperformed the Index. In general,
holdings include those that we have identified as being market leaders with
solid financial characteristics, strong management teams, double-digit growth
and reasonable market valuations. The Portfolio's largest holdings over the
period included Vodafone-Carnival Corp., First Data, UnitedHealth Group and
Liberty Media. Relative weightings in sectors and industry groups are a result
of our stock selection process. Based on this process, the Portfolio was
underweight the consumer staples, industrials, healthcare, materials,
information technology and utility sectors. Conversely, the Portfolio was
overweight the financial, consumer discretionary, telecommunications and energy
sectors.
During the period, holdings in the healthcare, consumer discretionary and
telecommunications sectors enhanced relative results. In healthcare, improved
visibility to changes in Medicare helped UnitedHealth Group and Lincare to
generate very strong performance. In addition, Johnson & Johnson had solid
growth despite increased competition for its drug-eluting stent, a device used
to treat coronary artery disease. In the consumer discretionary sector, Liberty
Media and its recent spin off, Liberty Media International, were solid
performers, as investors rewarded
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE LARGE CO GROWTH EQUITY INVESTMENTS
ADVISORS:
GE Asset Management Incorporated ("GEAM"), Marsico Capital Management
("Marsico") and SSgA Funds Management, Inc. ("SSgA")
PORTFOLIO MANAGERS:
GEAM: David B. Carlson; Marsico: Tom Marsico; SSgA: Team
OBJECTIVE:
Capital appreciation
INVESTMENT PROCESS:
GEAM invests primarily in a limited number of equity securities believed to have
above-average growth histories and/or growth potential. GEAM seeks to identify
companies with characteristics such as: above-average annual growth rates,
financial strength, leadership in their respective industries and high-quality
management focused on generating shareholder value.
MARSICO seeks to identify companies with earnings growth potential that may not
be recognizable by the market at large. Marsico's stock selection process
focuses on factors such as market expertise or dominance, franchise durability
and pricing power, solid company fundamentals, as well as strong management and
reasonable valuations. Marsico's disciplined investment approach combines
top-down analysis with bottom-up stock picking.
SSgA seeks to outperform the Russell 1000 Growth Index (before fees and
expenses). SsgA uses several independent valuation measures to identify
investment opportunities within a large-cap growth universe and combines factors
to produce an overall rank. Comprehensive research helps determine the optimal
weighting of these perspectives to arrive at strategies that vary by industry.
SSgA ranks all companies within the investable universe from top to bottom based
on their relative attractiveness. SSgA constructs its portion of the Portfolio
by selecting the highest-ranked stocks from the universe, and manages deviations
from the benchmark to maximize the risk/reward trade-off. The Portfolio has
characteristics similar to the Index. SSgA generally sells stocks that no longer
meet its selection criteria or that it believes otherwise may adversely affect
performance relative to the Index.
36
<Page>
their efforts to simplify their corporate structure. Bookings and pricing at
Carnival Corp. were strong, and cash flow improved, as capital needs for new
ship capacity slowed. Our sole telecommunications holding, Vodafone, gained over
20% as subscriber growth was positive and investors looked forward to their next
generation of phone offerings.
The primary negative performers during the period were in the information
technology and industrial sectors. In information technology, our holdings
slightly lagged those stocks in the Index. Despite the strengthening of
corporate IT spending and rising earnings estimates, Cisco System's shares fell
14% over the period. Weakness in First Data Corp. and Intel's shares also
negatively impacted performance. Our one industrial sector holding, Dover,
generated disappointing results.
Despite the volatile markets, we maintained our disciplined approach to
identifying stocks with sustainable earnings. In keeping with this philosophy,
Monsanto and Freddie Mac were added to the Portfolio over this time period. We
eliminated Gillette, because of valuation concerns and Cardinal Health, due to
deteriorating fundamentals.
MARSICO CAPITAL
Our portion of the Portfolio significantly outperformed its Index over the
reporting period. This was due to a variety of factors, including the strong
performance of holdings in the information technology sector. For example, in
the technology hardware and equipment industry, Apple Computer,** QUALCOMM and
Dell, boosted returns. In the technology software and services industry, video
game software developer Electronic Arts was a large contributor to performance.
Asset allocation decisions within the sector were positive as well. For example,
the Portfolio had no exposure to the weak semiconductor and semiconductor
equipment industry. Another area of strength for the Portfolio was in the
healthcare sector, as healthcare services company UnitedHealth Group was the
largest individual contributor to results during the period. Performance was
also enhanced by our underweight position in the pharmaceuticals and
biotechnology industry. On an industry level, the largest positive contributor
to results was in the diversified financials area, as we were rewarded for
having an overweight posture. Examples of strong performers included SLM,
Goldman Sachs Group and Citigroup. Select holdings and our investment posture in
the consumer discretionary sector were beneficial as well. In the hotels,
restaurants and leisure industry, a significant overweight position and stock
selection boosted returns. In particular, Portfolio holdings Wynn Resorts, MGM
Mirage and Starbucks contributed to results.
At a sector level, consumer staples was the primary detractor from performance
over the period, with Procter & Gamble generating weak results. At an industry
level, investments in retailing had a negative impact on performance, with
Tiffany & Co.** being a drag on returns.
SSgA
During the six-month reporting period, our portion of the Portfolio handily
outperformed the Index, buoyed by our investment process, which incorporates
perspectives on valuation, quality and investor sentiment. Over the period,
these components were solid predictors of investment returns; specifically, the
earnings-to-price and price reversal (which indicates whether a stock has been
"overbought" or "oversold") perspectives have performed well.
Strong stock selection drove our portion of the Portfolio's outperformance
versus the Index, with technology, materials and healthcare stocks leading the
way. More specifically, overweights to a number of software companies bolstered
performance. McAfee, the world's second largest maker of anti-virus software,
announced that fiscal third quarter profit surged to $118.1 million, reflecting
a gain from the sale of its Sniffer network monitoring business. The largest
maker of graphic design software, Adobe Systems, generated strong results, as
its fourth quarter net income increased by 36% as sales surged for its Creative
Suite publishing and design program. Another software holding, Oracle Systems,
rose over 30% during the period, as it gained control of PeopleSoft. In
addition, VeriSign, the main operator of the Internet address database, rose
nearly 50% when it announced solid third quarter 2004 profits due to increased
sales. While technology stocks comprised some of the Fund's top contributors,
our portion of the Portfolio was hurt by not holding Apple Computer Inc. and
Yahoo Inc. An overweight to Nucor boosted returns as the largest US steel
producer gained momentum from higher prices, as well as improving US demand. An
overweight in UnitedHealth Group, the largest US health insurer, also helped
performance. The company's shares rose after it reported a 36% increase in
quarterly profits. In addition, UnitedHealth Group benefited from improved
control of medical costs. While not sufficient to offset gains, our portion of
the Portfolio was hurt by certain telecommunication and financial holdings. For
example, an overweight in American International Group detracted from results.
Once news broke of widespread bid-rigging among insurance companies, the stock,
along with all other insurance companies in the industry, fell sharply. An
underweight in Nextel Communications also hurt performance as its shares
steadily advanced during the period.
** Not held in the Portfolio as of January 31, 2005.
37
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- ------------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 9.70% 3.49% N/A -8.65%
Maximum Sales Charge Class B** 9.22 2.58 N/A -9.36
or UBS PACE Program Fee Class C*** 9.29 2.72 N/A -9.32
Class Y**** 9.88 3.94 N/A -7.00
Class P***** 9.91 3.81 -9.06% 5.63
After Deducting Class A* 3.64 -2.18 N/A -9.88
Maximum Sales Charge Class B** 4.22 -2.42 N/A -9.80
or UBS PACE Program Fee Class C*** 8.29 1.72 N/A -9.32
Class P***** 9.09 2.27 -10.42 4.06
Russell 1000 Growth Index 6.01 0.70 -9.04 7.21
Lipper Large-Cap Growth Funds median 7.13 1.71 -7.92 6.26
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 2.61%, since inception, -9.28%; Class B--1-year period,
2.60%, since inception, -9.19%; Class C--1-year period, 6.67%, since inception,
- -8.70%; Class Y--1-year period, 8.96%, since inception, -6.30%; Class P--1-year
period, 7.22%, 5-year period, -10.65%, since inception, 4.50%.
~ Since inception returns are calculated as of commencement of issuance on
August 24, 1995 for Class P shares, November 27, 2000 for Class A, B, and
C shares and February 15, 2001 for Class Y shares. Since inception
returns for the Index and Lipper median are shown as of August 31, 1995,
which is the nearest month-end of the inception date of the oldest share
class (Class P).
* 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% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 1% imposed
on redemptions and is reduced to 0% after one year. Class C shares bear
ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The Russell 1000 Growth Index measures the performance of a large universe of
stocks with higher price-to-book ratios and higher forecasted growth values.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
38
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads) or program
fees; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees (if applicable); and other Portfolio expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Portfolio and to compare these costs with the ongoing costs of investing
in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads) or program fees. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- ------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,097.00 $ 6.87
Hypothetical (5% annual return before expenses) 1,000.00 1,018.65 6.61
Class B Actual 1,000.00 1,092.20 11.39
Hypothetical (5% annual return before expenses) 1,000.00 1,014.32 10.97
Class C Actual 1,000.00 1,092.90 11.13
Hypothetical (5% annual return before expenses) 1,000.00 1,014.57 10.71
Class Y Actual 1,000.00 1,098.80 4.55
Hypothetical (5% annual return before expenses) 1,000.00 1,020.87 4.38
Class P Actual 1,000.00 1,099.10 5.13
Hypothetical (5% annual return before expenses) 1,000.00 1,020.32 4.94
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 1.30%, Class B: 2.16%, Class C: 2.11%, Class Y: 0.86%, Class P:
0.97%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
39
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- ----------------------------------------------------------------------------------
Net Assets (mm) $ 796.7
Number of Securities 117
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- ----------------------------------------------------------------------------------
Common Stocks 96.2%
ADRs 1.5
Cash Equivalents and Other Assets Less Liabilities 2.3
- ----------------------------------------------------------------------------------
Total 100.0%
- ----------------------------------------------------------------------------------
<Caption>
TOP 5 SECTORS* 1/31/05
- ----------------------------------------------------------------------------------
Health Care 21.7%
Consumer Discretionary 19.4
Information Technology 17.9
Financials 16.8
Industrials 11.9
- ----------------------------------------------------------------------------------
Total 87.7%
- ----------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY SECURITIES* 1/31/05
- ----------------------------------------------------------------------------------
UnitedHealth Group 5.7%
Procter & Gamble 3.0
SLM 3.0
Johnson & Johnson 2.9
Dell 2.8
Pfizer 2.7
Carnival 2.5
FedEx 2.3
Zimmer Holdings 2.1
Citigroup 1.9
- ----------------------------------------------------------------------------------
Total 28.9%
- ----------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
40
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE SMALL/MEDIUM CO VALUE EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 11.98% (before the deduction of the maximum UBS PACE program fee;
11.13% after the deduction of the maximum program fee), compared with the
Russell 2500 Value Index (the "Index"), which returned 14.88%, and the Lipper
Small-Cap Value Funds median, which returned 13.69%. (Returns for all share
classes over various time periods are shown in the table on page 43. Please note
that the returns shown do not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares.)
MARKET REVIEW
Market returns for the six-month period were very strong across all styles, with
small caps providing the highest returns. The months prior to the US
presidential election could be characterized as a "wait and see" period, as
investors dealt with numerous uncertainties, the largest of which was the
outcome of the election. Subsequent to the election, the markets rose
dramatically through the end of 2004, with small caps leading the way. However,
January 2005 began negatively on the first trading day, and that trend continued
through the end of the month, with small cap stocks underperforming. It appears
that this decline was precipitated by investor concerns about future profit
growth, combined with several disappointing earnings announcements.
ADVISORS' COMMENTS
ARIEL
During the reporting period, our portion of the Portfolio produced strong
absolute returns, but slightly lagged its Index. A closer look at our results
reveals clear and simple themes. As one of our favorite columnists, Alan
Abelson, surmised in the December 20, 2004 issue of BARRON'S, ". . . caution is
conspicuous on the investment landscape by its absence." In keeping with this
thesis, riskier, lower-quality stocks rallied during the fourth quarter of 2004,
similar to what occurred in 2003. Leading this charge were cyclical and
commodity stocks whose earnings move up and down with the economy, and which
are, therefore, much less consistent and predictable than we like. Research
shows there is an inverse correlation between cyclical and consumer stock
returns--when cyclical stocks lead, consumer issues lag and vice versa. Since we
consciously avoid such volatile issues, our high-quality, consumer-biased
Portfolio traditionally lags in this kind of environment.
Looking at the Portfolio in greater detail, holdings in the materials and
processing sector contributed positively to results, while our consumer
discretionary and services, and producer durables positioning detracted from
results. In terms of specific stock contributions, Sybron Dental Specialties
benefited from recent product innovations, improved
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE SMALL/MEDIUM CO VALUE EQUITY
INVESTMENTS
ADVISORS:
Ariel Capital Management, Inc. ("Ariel") and ICM Asset Management, Inc. ("ICM")
PORTFOLIO MANAGERS:
Ariel: John W. Rogers, Jr.; ICM: Team, led by Kevin A. Jones
OBJECTIVE:
Capital appreciation
INVESTMENT PROCESS:
ARIEL invests in stocks of companies that it believes are misunderstood or
undervalued. It seeks to identify companies in consistent industries with
distinct market niches and excellent management teams. It focuses on value
stocks, which it defines as stocks with a low P/E ratio based on forward
earnings and that trade at a significant discount to the private market value
that Ariel calculates for each stock. Ariel generally sells stocks that cease to
meet these criteria or that are at risk for fundamental deterioration.
ICM invests primarily in common stocks of companies believed to offer good
relative value that have either fallen out of favor among investors or are
under-researched. In deciding which stocks to buy for the Portfolio, ICM uses a
top-down analysis to identify broad sectors of the market believed to offer good
relative value, and then seeks to identify individual companies within those
sectors that meet ICM's investment criteria. ICM also performs a bottom-up
analysis to attempt to discover inefficiently priced stocks in a broad range of
sectors, including those not identified in the top-down analysis. These two
approaches are combined in various proportions depending on market conditions.
ICM generally sells stocks that meet price objectives, no longer meet its
selection criteria, are at risk for fundamental deterioration, or when the team
identifies more attractive investment opportunities.
41
<Page>
financials and strategic acquisitions, while shares of Brady Corp. rose due to
continued strong revenue growth, balanced across its various business units.
Conversely, Certegy fell amid a weak retail market, and IMS Health declined,
primarily due to the negative news and poor press generated by the major
pharmaceutical companies.
During the period, we initiated positions in ARAMARK Corp., one of the nation's
largest providers of outsourced food, facilities and uniform services, battery
maker Energizer Holdings, and newspaper publisher Lee Enterprises. We also added
Mattel, the largest toy company in the world, Mohawk Industries the leading
manufacturer of floor covering products for residential and commercial
applications in the US, and Radio One, the nation's seventh largest broadcasting
company. We eliminated our position in Rouse Company on the news of its takeover
by General Growth Properties and in doing so captured a 33% premium.
Additionally, we sold out of management and technology consulting company
Accenture Ltd., healthcare firm Baxter International, spice maker McCormick &
Company and restaurant company Yum! Brands--all to take advantage of more
compelling opportunities.
After two years of back-to-back gains in the market, we are turning bearish. And
yet, our viewpoint is in direct contrast to the euphoria that lifted the stock
market at the end of 2004 when investors were downright giddy--caught up in a
rally in which so many stocks made substantial gains. Recently published
INVESTORS' INTELLIGENCE data show that financial professionals have not
demonstrated this much optimism since January 1987. Take note of that date; the
market crashed later that year.
ICM
During the six-month period, our portion of the Portfolio underperformed the
Index by just under 3%. It is notable that in the first month of the period, the
Portfolio lagged the Index by over 4%, and that it outperformed the Index in the
subsequent five months. A majority of the relative underperformance occurred due
to security selection, with the remaining portion due to sector allocation. An
overweight position in healthcare and an underweight position in financial
services benefited the Portfolio, while overweights in the consumer
discretionary and technology sectors detracted from returns. Security selection
is somewhat more difficult to assess, as there were really two distinct periods.
First is the month of August 2004, and the other is the remaining five months.
Security selection was only negative in the first month, and was positive for
the remainder of the period. From an absolute return perspective, energy was the
strongest performing sector in the Portfolio, while financial services was the
worst performing sector.
In terms of individual securities, the best performing position, Shaw Group,
Inc., was up 69% and the worst, Dot Hills Systems Corp. declined 26%. Obviously,
the month of August was the most difficult, and, as a result, demands further
explanation. Over the years, ICM has been successful at identifying turnarounds
at individual companies that are currently out of favor among the general
investing public. These companies generally are out of favor because they have
performed poorly from an operating perspective and have most likely disappointed
investors when it came to earnings expectations. The issue of operating
turnarounds becomes more risky in an environment that is characterized by low
buying liquidity. The effect on the Portfolio is shown by the following
hypothetical example. Company ABC reports that earnings are going to be 10%
higher that expected, and the stock responds by appreciating 5%. Company DEF
reports that earnings are going to be 10% lower than expected, and the stock
declines by 20%. This is what we saw occur in the month of August. Therefore,
the proverbial 80/20 rule comes into effect, in that 80% of the underperformance
comes from 20% of the portfolio. It is worth mentioning that the markets in the
month of January 2005 exhibited the same characteristics, yet our Portfolio
outperformed the Index.
42
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- --------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 11.86% 11.35% N/A 13.78%
Maximum Sales Charge Class B** 11.44 10.46 N/A 13.04
or UBS PACE Program Fee Class C*** 11.48 10.56 N/A 12.96
Class Y**** 12.08 11.74 N/A 14.76
Class P***** 11.98 11.58 13.86% 10.98
After Deducting Class A* 5.72 5.21 N/A 12.25
Maximum Sales Charge Class B** 6.44 5.46 N/A 12.71
or UBS PACE Program Fee Class C*** 10.48 9.56 N/A 12.96
Class P***** 11.13 9.92 12.17 9.33
Russell 2500 Value Index 14.88 13.97 16.28 14.16
Lipper Small-Cap Value Funds median 13.69 14.65 16.62 12.59
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 11.20%; since inception, 13.38%; Class B--1-year period,
11.73%; since inception, 13.88%; Class C--1-year period, 15.84%; since
inception, 14.12%; Class Y--1-year period, 18.09%; since inception, 15.97%;
Class P--1-year period, 16.17%; 5-year period, 11.58%; since inception, 9.79%.
~ Since inception returns are calculated as of commencement of issuance on
August 24, 1995 for Class P shares, November 27, 2000 for Class A and C
shares, November 28, 2000 for Class B shares, and December 20, 2000 for
Class Y shares. Since inception returns for the Index and Lipper median
are shown as of August 31, 1995, which is the nearest month-end of the
inception date of the oldest share class (Class P).
* 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% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 1% imposed
on redemptions and is reduced to 0% after one year. Class C shares bear
ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The Russell 2500 Value Index measures the performance of those Russell 2500
companies with lower price-to-book ratios and lower forecasted growth values.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
43
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads) or program
fees; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees (if applicable); and other Portfolio expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Portfolio and to compare these costs with the ongoing costs of investing
in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads) or program fees. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- -------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,118.60 $ 7.16
Hypothetical (5% annual return before expenses) 1,000.00 1,018.45 6.82
Class B Actual 1,000.00 1,114.40 11.46
Hypothetical (5% annual return before expenses) 1,000.00 1,014.37 10.92
Class C Actual 1,000.00 1,114.80 11.14
Hypothetical (5% annual return before expenses) 1,000.00 1,014.67 10.61
Class Y Actual 1,000.00 1,120.80 5.29
Hypothetical (5% annual return before expenses) 1,000.00 1,020.21 5.04
Class P Actual 1,000.00 1,119.80 6.20
Hypothetical (5% annual return before expenses) 1,000.00 1,019.36 5.90
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 1.34%, Class B: 2.15%, Class C: 2.09%, Class Y: 0.99%, Class P:
1.16%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
44
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Net Assets (mm) $ 402.5
Number of Securities 109
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Equities (Stocks and Warrants) 94.1%
Convertible Bond 0.0**
Cash Equivalents and Other Assets Less Liabilities 5.9
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
TOP 5 SECTORS* 1/31/05
- --------------------------------------------------------------------------------
Industrials 27.0%
Consumer Discretionary 20.3
Financials 15.5
Health Care 13.0
Information Technology 7.7
- --------------------------------------------------------------------------------
Total 83.5%
- --------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY SECURITIES* 1/31/05
- --------------------------------------------------------------------------------
Omnicare 2.4%
IMS Health 2.0
SunGard Data Systems 1.9
Sybron Dental Specialties 1.9
MBIA 1.8
Fisher Scientific International 1.8
Brady 1.8
Neiman Marcus Group 1.7
Northern Trust 1.7
Markel 1.7
- --------------------------------------------------------------------------------
Total 18.7%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
** Weighting represents less than 0.05% of the Portfolio's net assets as of
January 31, 2005.
45
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE SMALL/MEDIUM CO GROWTH EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 15.27% (before deduction of the maximum UBS PACE program fee; 14.40%
after deduction of the maximum program fee), compared with the Russell 2500
Growth Index (the "Index") and Lipper Mid-Cap Growth Funds median, which
returned 13.53% and 12.73%, respectively. (Returns for all share classes over
various time periods are shown in the table on page 47. Please note that the
returns shown do not reflect the deduction of taxes that a shareholder would pay
on Portfolio distributions or the redemption of Portfolio shares.)
MARKET REVIEW
Stocks posted solid returns during the six-month reporting period, as falling
energy prices as well as a definitive conclusion to the year's political battles
brought about a strong rally in the latter part of 2004. Smaller capitalization
stocks outperformed their large capitalization counterparts, and value stocks
outpaced growth stocks during the period.
ADVISOR'S COMMENTS
During the reporting period, the Portfolio generated solid results and
outperformed its Index. Strong relative performance was largely due to positive
stock selection in the healthcare and consumer sectors. Conversely, poor
performance from our holdings in the technology sector hurt results.
In terms of individual holdings, pharmaceutical company Immucor was the
Portfolio's best performer as it rose more than 100% over the period. Its shares
appreciated on the back of strong acceptance of its high-volume, fully automated
blood typing instrument. Wynn Resorts was also up significantly as it rose more
than 80% due to increased optimism regarding its projects that are currently in
development.
Stocks that did not live up to the market's expectations for sales and earnings
growth were among the Portfolio's worst performers during the period. For
example, semiconductor company O2 Micro detracted from results as its shares
declined more than 30% due to disappointing earnings and sales growth. Chiron
also declined significantly as a result of its much-publicized problems with its
UK flu vaccine plant. We eliminated the stock from the Portfolio as a result of
these developments.
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE SMALL/MEDIUM CO GROWTH EQUITY
INVESTMENTS
ADVISOR:
Delaware Management Company, Inc. ("Delaware Management Company")
PORTFOLIO MANAGER:
Gerald S. Frey
OBJECTIVE:
Capital appreciation
INVESTMENT PROCESS:
The Portfolio invests primarily in stocks of "emerging growth" companies that
are believed to have potential for high future earnings growth relative to the
overall market with market capitalizations of less than $6 billion at the time
of purchase. Up to 5% of the total assets may be invested in US
dollar-denominated foreign securities. The Advisor employs bottom-up,
fundamental analysis to identify companies that have substantially above-average
earnings growth because of management changes, new products, growth of
established products or structural changes in the economy. Management generally
sells stocks that no longer meet its selection criteria or are at risk for
fundamental deterioration, or when it identifies more attractive investment
opportunities.
46
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- --------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 15.21% 5.34% N/A -1.38%
Maximum Sales Charge Class B** 14.63 4.41 N/A -2.17
or UBS PACE Program Fee Class C*** 14.68 4.47 N/A -2.13
Class Y**** 15.36 5.69 N/A 2.38
Class P***** 15.27 5.55 -0.64% 10.08
After Deducting Class A* 8.87 -0.48 N/A -2.70
Maximum Sales Charge Class B** 9.63 -0.59 N/A -2.64
or UBS PACE Program Fee Class C*** 13.68 3.47 N/A -2.13
Class P***** 14.40 3.98 -2.12 8.44
Russell 2500 Growth Index 13.53 6.13 -2.91 6.98
Lipper Mid-Cap Growth Funds median 12.73 6.48 -3.99 7.73
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 4.66%; since inception, -2.06%; Class B--1-year period,
4.81%; since inception, -1.98%; Class C--1-year period, 8.86%; since inception,
- -1.45%; Class Y--1-year period, 11.22%; since inception, 3.22%; Class P--1-year
period, 9.36%; 5-year period, -2.22%; since inception, 8.88%.
~ Since inception returns are calculated as of commencement of issuance on
August 24, 1995 for Class P shares, November 27, 2000 for Class A, B, and
C shares and February 12, 2001 for Class Y shares. Since inception
returns for the Index and Lipper median are shown as of August 31, 1995,
which is the nearest month-end of the inception date of the oldest share
class (Class P).
* 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% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 1% imposed
on redemptions and is reduced to 0% after one year. Class C shares bear
ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The Russell 2500 Growth Index measures the performance of those Russell 2500
companies with higher price-to-book ratios and higher forecasted growth values.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
47
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable); including sales charges (loads) or program
fees; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees (if applicable); and other Portfolio expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Portfolio and to compare these costs with the ongoing costs of investing
in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads) or program fees. Therefore, the second line in the
table for each class of shares is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- -------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,152.10 $ 7.27
Hypothetical (5% annual return before expenses) 1,000.00 1,018.45 6.82
Class B Actual 1,000.00 1,146.30 12.28
Hypothetical (5% annual return before expenses) 1,000.00 1,013.76 11.52
Class C Actual 1,000.00 1,146.80 11.69
Hypothetical (5% annual return before expenses) 1,000.00 1,014.32 10.97
ClassY Actual 1,000.00 1,153.60 5.21
Hypothetical (5% annual return before expenses) 1,000.00 1,020.37 4.89
Class P Actual 1,000.00 1,152.70 6.13
Hypothetical (5% annual return before expenses) 1,000.00 1,019.51 5.75
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 1.34%, Class B: 2.27%, Class C: 2.16%, Class Y: 0.96%, Class P:
1.13%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
48
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Net Assets (mm) $ 394.4
Number of Securities 75
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Common Stocks 94.5%
Cash Equivalents and Other Assets Less Liabilities 5.5
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
TOP FIVE SECTORS* 1/31/05
- --------------------------------------------------------------------------------
Consumer Discretionary 27.8%
Health Care 22.0
Information Technology 19.4
Financials 15.5
Industrials 10.0
- --------------------------------------------------------------------------------
Total 94.7%
- --------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY HOLDINGS* 1/31/05
- --------------------------------------------------------------------------------
Coach 3.5%
PartnerRe 2.8
CV Therapeutics 2.4
PETsMART 2.3
Sovereign Bancorp 2.3
Wynn Resorts 2.2
American Eagle Outfitters 2.2
Barr Pharmaceuticals 2.2
Four Seasons Hotels 2.1
Getty Images 2.0
- --------------------------------------------------------------------------------
Total 24.0%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
49
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERNATIONAL EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 15.19% (before the deduction of the maximum UBS PACE program fee;
14.32% after the deduction of the maximum program fee), compared with the MSCI
Europe, Australasia, Far East Free (net LU) Index (in US dollars), which
returned 16.65%, and the Lipper International Large-Cap Growth Funds median,
which returned 14.40%. (Returns for all share classes over various time periods
are shown in the table on page 53. Please note that the returns shown do not
reflect the deduction of taxes that a shareholder would pay on Portfolio
distributions or the redemption of Portfolio shares.)
MARKET REVIEW
The international equity markets generated strong results over the reporting
period. In addition to positive returns recorded in all markets in local
currency terms, exchange rate movements also boosted US investors' results.
Through extensive trade and investment ties, Spanish businesses have a large
exposure to the economies of South America. Of late, official and anecdotal
reports from the region and, in particular, from Brazil have been positive. This
trend supported the Spanish equity market, which was the best performing among
the larger European economies over the period. Switzerland trailed the Index and
was the weakest market in Europe, despite a double-digit gain. In the Pacific
region, returns were led by Australia, while Japan markedly trailed the Index.
Financials and materials were the strongest sectors over the period. Conversely,
the weakest sectors were healthcare and information technology.
ADVISORS' COMMENTS
MARTIN CURRIE
Our portion of the Portfolio underperformed its benchmark over the period, due
to a combination of negative asset allocation and stock selection. While our
position in emerging markets not held by the Index significantly enhanced
results, stock selection and underweights in Pacific ex-Japan and Europe
detracted from performance, as both of these regions fared well.
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE INTERNATIONAL EQUITY INVESTMENTS
ADVISOR:
Martin Currie Inc. ("Martin Currie"), Mondrian Investment Partners ("Mondrian")
and JP Morgan Fleming Asset Management
PORTFOLIO MANAGER:
Martin Currie: Team, led by James Fairweather; Mondrian: Team; JP Morgan Fleming
Asset Management: Team, led by Bud Kroll.
OBJECTIVE:
Capital appreciation.
INVESTMENT PROCESS:
MARTIN CURRIE is an experienced international equity manager. The firm has a
highly active 'conviction' approach, seeking the best opportunities for growth
across global stockmarkets.
Martin Currie identifies CHANGE as the central dynamic behind stock price
movement. This means recognizing change at company level (management changes,
product strategies, acquisitions etc) and at macro level (legislative changes,
economic prospects, sector dynamics etc). Determining the impact of these
changes may lead to outperformance. Its investment process allows Martin Currie
to identify, evaluate and exploit change at an early stage in clients'
portfolios.
In managing its segment of the portfolio's assets, Martin Currie uses a fully
INTEGRATED international investment process. So rather than running distinct
regional portfolios, it compares and ranks stock opportunities across the whole
investment universe. To help identify and evaluate the best stock ideas, Martin
Currie employs fundamental company and sector research, together with its own
proprietary quantitative screening tool, the Dynamic Stock Matrix(TM).
The result is a committed and distinctive EAFE portfolio that reflects the best
investment opportunities internationally.
MONDRIAN conducts research on a global basis in an effort to identify securities
that have the potential for long-term total return. The center of the research
effort is a value-oriented dividend discount methodology toward individual
securities and market analysis that identifies value across country boundaries.
This approach focuses on future anticipated dividends, and discounts the value
of those dividends back to what they would be worth if they were being paid
today. Comparisons of the values of different possible investments are then
made. In an international portfolio, currency returns can be an integral
component of an investment's total return. Mondrian uses a purchasing power
parity approach to assess the value of individual currencies. Purchasing power
parity attempts to identify the amount of goods and services that a dollar will
buy in the United States, and compares that to the amount of a foreign currency
required to buy the same amount of goods and services in another country.
JP MORGAN FLEMING ASSET MANAGEMENT manages its segment of the Portfolio's assets
using a bottom-up, research driven strategy that seeks to generate risk
characteristics that closely match those of the benchmark, yet at the same time
capitalize on the information advantage created by the firm's proprietary
research capabilities to generate outperformance. The strategy is driven by
valuation-based fundamental analysis, focused on normalized earnings and
earnings growth. The team seeks to maintain regional weights and sector/industry
weights close to those of the benchmark. Stock selection is the focus, being the
expected primary source of added value.
50
<Page>
Within Europe, insurance holdings such as AXA and Zurich Financial were
undermined by US Attorney General Elliot Spitzer's investigation into practices
in the industry. Prudential Financial was hurt when it announced the issuing of
new shares. Additionally, energy stocks, including BP and Norsk Hydro, came
under pressure as oil prices retreated from their record high levels.
From a sector perspective, our overall positioning added value, but this was
more than offset by our stock selection. For example, stock selection was poor
in the financial sector, due in part to our aforementioned overweight in
European insurance stocks. Additionally, HSBC failed to keep pace with the rest
of the sector. Stock selection also detracted from results in the information
technology sector, as Ericsson was undermined by worries about profit margins
and Rohm fell in tandem with other semiconductor-related stocks. Conversely,
Portfolio positioning in telecom services contributed to performance. This
sector generated the best returns across the MSCI EAFE universe, rising 21.5%
over the reporting period. Our portion of the Portfolio benefited from its
overweight position and solid stock selection, as we experienced an average
return of 25.2% from our telecom holdings. The Portfolio's industrials holdings
also did well, and, again, we benefited from both an overweight position and
from positive stock selection. An underweight in consumer staples proved
beneficial as well, as we struggled to identify attractive growth opportunities
at appropriate valuations. Elsewhere, the healthcare and information technology
sectors lagged the overall market, and we benefited by being underweight.
At the stock level, our long-standing investment in Indonesian car assembler and
dealer Astra International proved highly beneficial, as did our holding in Orix,
a Japanese financial services company. In Europe, toll-roads/highway
construction company Vinci, tire/auto-component firm Continental, and
Anglo-Irish Bank performed well. Significant detractors from results were Cairn
Energy, which suffered following a disappointing exploration update to investors
in December 2004, and Nichii Gakkan, a Japanese healthcare company. Following a
review of Nichii Gakkan, we concluded that its management team's strategy was
failing, and we eliminated the position from our portion of the Portfolio.
While most of the Portfolio activity during the period was driven by
stock-specific considerations, the net effect of this was an increased exposure
to emerging markets and Japanese stocks. We also have significant weightings in
the materials, financials and capital expenditure sectors, which is consistent
with our relatively benign view of the global economy.
MONDRIAN INVESTMENT PARTNERS
Note: Delaware International Advisers Ltd. was bought out in 2004 and the name
changed to Mondrian Investment Partners Limited. The portfolio management team
remained the same.
During the reporting period, our portion of the Portfolio slightly lagged the
Index. Overall, market selection was a positive contributor to performance. Of
particular benefit were overweight positions in the outperforming markets of
Australia and Spain and an underweight position in the lagging Japanese market.
Stock selection was positive in Germany, but negative in Australia, Japan and
Hong Kong. Over the period, Electrabel, a utility company in Belgium, was our
portion of the Portfolio's strongest performer, returning 39.4%. Support
services company, Brambles, was another strong performer, up 35.7%. Lloyds TSB,
a UK banking group, also enhanced results. Its shares rose 27.6% as concerns
over the implementation of international financial reporting standards have been
removed. Most of the Portfolio's weakest stocks were in Japan, as they
underperformed the Index.
Overweight positions in the strong materials and utilities sectors were
beneficial, as were underweight positions in the poor performing information
technology and consumer sectors. Portfolio performance, however, was held back
by an overweight in the energy sector, which trailed the Index. In addition, an
underweight in the industrials sector detracted from results, as it outperformed
the Index. The Portfolio's defensive sterling hedge during a period of
appreciation by the UK currency also had an adverse effect on results.
An important aspect of Mondrian's investment process is the emphasis on
researching long-term influences on valuations. For instance, in Germany,
starting in early 2005, a raft of unemployment benefit reforms were being
implemented. Although the impact of these on current and new claimants' benefits
will be felt quickly, the full effect on labor market behavior will take years
to occur. By emphasizing the initial impact in isolation, it would be easy to
over-emphasize the benefit of the changes, with the result likely to exaggerate
the attractiveness of the overall German market. However, by putting the full
effect of the changes in the context of other developments taking place in the
German economy, such as the long-term decline in the number of people of working
age, we find valuations stretched in Germany.
Earlier in 2004, the Bank of Japan (BoJ) intervened in the currency markets to
stop the appreciation of the yen. The appreciation of the yen late in 2004
suggests that the BoJ had been much less involved, if at all. One reason for the
reduction in intervention could be that the BoJ feels that the Japanese economy
is able to deal with a stronger currency. In particular, it might be confident
that export growth
51
<Page>
will not be hurt by yen appreciation. Although many of Japan's well-known
export-oriented businesses have undergone significant restructuring and
efficiency improvements, the majority of the country's businesses derive most of
their revenues from domestic sales. In addition, much of the service sector is
yet to engage in the rationalization necessary to bring its operations in line
with international best practice. This reticence has left valuations stretched,
and we remain underweight Japanese equities.
To conclude, the main highlights of the strategy being implemented for the
Portfolio are an underweight position in the overvalued Japanese market, an
overweight position in the undervalued Australasian markets, an overweight in
selected European markets and a defensive sterling currency hedge.
JP MORGAN FLEMING ASSET MANAGEMENT
While our portion of the Portfolio generated strong absolute returns during the
reporting period, it slightly lagged its Index. Over the period, we experienced
disappointing stock selection in the banking and financial sector. For example,
while holdings such as Credit Agricole and UniCredito Italiano posted
double-digit gains, they failed to keep pace with the overall sector. Another
major detractor was our exposure to the technology-hardware sector, where our
overweight position in Kyocera and not owning Fuji hurt results.
Conversely, the prime contributor to performance was the basic industries
sector, as the Portfolio benefited from overweight positions in a number of
building material producers, such as Aggregate Industries**, Titan Cement and
HeidelbergCement. The prospects of higher prices and continued solid demand
provided strong support for our materials stocks. Additionally, in
transportation and consumer cyclicals, we benefited from being underweight in
Compass and overweight in TUI.
** Not held in the Portfolio as of January 31, 2005.
52
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- --------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 15.05% 14.61% N/A -0.19%
Maximum Sales Charge Class B** 14.40 13.42 N/A -1.13
or UBS PACE Program Fee Class C*** 14.50 13.70 N/A -0.99
Class Y**** 15.30 15.12 N/A 0.62
Class P***** 15.19 14.92 -3.04% 5.02
After Deducting Class A* 8.76 8.29 N/A -1.54
Maximum Sales Charge Class B** 9.40 8.42 N/A -1.61
or UBS PACE Program Fee Class C*** 13.50 12.70 N/A -0.99
Class P***** 14.32 13.21 -4.48 3.46
MSCI EAFE Free (net LU) (in USD) Index 16.65 16.33 -0.20 5.23
Lipper International Large-Cap Growth Funds median 14.40 9.25 -7.23 3.84
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 11.70%; since inception, -1.10%; Class B--1-year period,
11.93%; since inception, -1.14%; Class C--1-year period, 16.22%; since
inception, -0.51%; Class Y--1-year period, 18.74%; since inception, 1.13%; Class
P--1-year period, 16.85%; 5-year period, -5.30%; since inception, 3.73%.
~ Since inception returns are calculated as of commencement of issuance on
August 24, 1995 for Class P shares, November 27, 2000 for Class A, B and
C shares and January 17, 2001 for Class Y shares. Since inception returns
for the Index and Lipper median are shown as of August 31, 1995, which is
the nearest month-end of the inception date of the oldest share class
(Class P).
* 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% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 1% imposed
on redemptions and is reduced to 0% after one year. Class C shares bear
ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The MSCI EAFE Free (net LU) (in USD) Index is an index of stocks from 21
countries designed to measure the investment returns of developed economies
outside of North America.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
53
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), program
fees and redemption fees; and (2) ongoing costs, including management fees;
distribution and/or service (12b-1) fees (if applicable); and other Portfolio
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Portfolio and to compare these costs with the
ongoing costs of investing in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads), program fees or redemption fees. Therefore, the
second line in the table for each class of shares is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your
costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- -------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,150.50 $ 8.40
Hypothetical (5% annual return before expenses) 1,000.00 1,017.39 7.88
Class B Actual 1,000.00 1,144.00 14.16
Hypothetical (5% annual return before expenses) 1,000.00 1,012.00 13.29
Class C Actual 1,000.00 1,145.00 12.87
Hypothetical (5% annual return before expenses) 1,000.00 1,013.21 12.08
Class Y Actual 1,000.00 1,153.00 6.02
Hypothetical (5% annual return before expenses) 1,000.00 1,019.61 5.65
Class P Actual 1,000.00 1,151.90 6.67
Hypothetical (5% annual return before expenses) 1,000.00 1,019.00 6.26
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 1.55%, Class B: 2.62%, Class C: 2.38%, Class Y: 1.11%, Class P:
1.23%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
54
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Net Assets (mm) $ 693.8
Number of Securities 538
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Equities (Common and Preferred Stocks and Warrants) 97.3%
Futures and Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 2.7
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
REGIONAL ALLOCATION* 1/31/05
- --------------------------------------------------------------------------------
Europe 64.7%
Asia 19.7
Emerging Markets 6.9
Australia / New Zealand 6.0
Futures and Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 2.7
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
TOP FIVE COUNTRIES* 1/31/05
- --------------------------------------------------------------------------------
United Kingdom 23.5%
Japan 19.7
France 8.0
Germany 6.3
Australia 5.3
- --------------------------------------------------------------------------------
Total 62.8%
- --------------------------------------------------------------------------------
<Caption>
TOP 5 SECTORS* 1/31/05
- --------------------------------------------------------------------------------
Financials 28.0%
Consumer Discretionary 14.5
Materials 10.4
Energy 9.7
Telecommunication Services 8.1
- --------------------------------------------------------------------------------
Total 70.7%
- --------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY SECURITIES* 1/31/05
- --------------------------------------------------------------------------------
GlaxoSmithKline 2.1%
HSBC Holdings 1.7
Vodafone 1.6
BP 1.6
Telefonica 1.5
Takeda Chemical Industries 1.4
Iberdrola 1.4
Total 1.3
Canon 1.3
Royal Bank of Scotland 1.3
- --------------------------------------------------------------------------------
Total 15.2%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2005. The Portfolio is actively managed and its composition
will vary over time.
** Represents less than 0.05% of the Portfolio's net assets as of January
31, 2005.
55
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2005, the Portfolio's Class P shares
returned 28.41% (before the deduction of the maximum UBS PACE program fee;
27.45% after the deduction of the maximum program fee), compared with the 29.64%
return of the MSCI Emerging Markets Free (EMF) Index (the "Index") and the
28.47% return of the Lipper Emerging Markets Funds median. (Returns for all
share classes over various time periods are shown in the table on page 58.
Please note that those returns shown do not reflect the deduction of taxes that
a shareholder would pay on Portfolio distributions or the redemption of
Portfolio shares.)
MARKET REVIEW
Emerging equity market performance was subdued initially, with investors focused
on the prospect of slowing growth in China, rapidly rising oil prices and higher
US interest rates. However, oil prices began to weaken in October 2004 and fell
sharply in November, giving a boost to emerging markets equities. Further good
news came via the resurgent US economy, which continued to surprise positively.
Meanwhile growth in China was above 9% annualized in the third quarter of 2004,
despite attempts by the government to control the pace of expansion. All
emerging markets regions ended 2004 on a strong note, with the Latin American
market leading the way. Although January 2005 was somewhat subdued, most markets
posted modest gains, reflecting the attractive valuations and robust earnings
growth available in their countries.
ADVISORS' COMMENTS
Gartmore Global Partners (GGP) and Baring International Limited (BIL) each
managed 50% of the Portfolio until September 27, 2004. Beginning on September
28, 2004, Mondrian Investment Partners replaced BIL and assumed management of
50% of the Portfolio. UBS Global Asset Management may change this allocation at
any time. The relative value of each investment advisor's share of the
Portfolio's assets also may change over time.
GGP
During the reporting period, sector allocation contributed positively to the
performance of our portion of the Portfolio. In particular, an underweight in
healthcare enhanced results. In addition, an overweight position and strong
stock selection in financials contributed to performance. Within financials, our
overweight in Mexican bank, Grupo Financiero Banorte and Brazil's Unibanco
boosted returns. This helped offset the impact of our underweight in peer
Bradesco,** as its share price surged after announcing increased dividends.
Over the period, the information technology sector as a whole was hurt by
concerns over the strength and direction of global growth, as well as
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST--UBS PACE INTERNATIONAL EMERGING MARKETS EQUITY
INVESTMENTS
ADVISORS:
Gartmore Global Partners ("GGP") and Mondrian Investment Partners ("Mondrian")
PORTFOLIO MANAGERS:
GGP: Philip Ehrmann and Peter Dalgliesh;
Mondrian: Team
OBJECTIVE:
Capital appreciation
INVESTMENT PROCESS:
GGP seeks to identify and quantify unexpected earnings growth. This process is
driven by a disciplined and consistent investment philosophy that allows GGP to
identify those companies that GGP believes will deliver positive earnings growth
that will likely exceed or be sustained beyond consensus expectations. To find
these opportunities, GGP uses a top-down and bottom-up fundamental analysis. GGP
also uses portfolio monitoring to manage the risk spectrum on the stock, sector,
country and Portfolio level. GGP generally sells a security that it believes no
longer has the potential for above-consensus earnings growth.
MONDRIAN conducts research on a global basis in an effort to identify securities
that have the potential for long-term total return. The center of the research
effort is a value-oriented dividend discount methodology toward individual
securities and market analysis that identifies value across country boundaries.
This approach focuses on future anticipated dividends, and discounts the value
of those dividends back to what they would be worth if they were being paid
today. Comparisons of the values of different possible investments are then
made. In an international portfolio, currency returns can be an integral
component of an investment's total return. Mondrian uses a purchasing power
parity approach to assess the value of individual currencies. Purchasing power
parity attempts to identify the amount of goods and services that a dollar will
buy in the United States, and compares that to the amount of a foreign currency
required to buy the same amount of goods and services in another country.
** Not held in the Portfolio as of January 31, 2005.
56
<Page>
the impact of the weakening dollar. In addition, stock selection within the
sector detracted from results. Specific holdings in this area that contributed
negatively to performance included Taiwan's Ichia Technology, Inc. An overweight
in Taiwanese information technology hardware firm Accton Technology** was also a
negative, but it was partially offset by an overweight in South Korea's LG
Electronics, Inc. Conversely, stock selection within telecom services enhanced
returns through an underweight in China Mobile.** This offset the negative
contribution from an overweight in China Telecom Corp., Ltd. Metals and mining
stocks added value, notably through coal miner PT Bumi Resources of Indonesia
and INI Steel Co. in South Korea. However, an underweight in iron ore miner Cia
Valedo Rio Doce was a drag on performance. Meanwhile, among energy stocks, a
lack of exposure to troubled Russian oil and gas giant Yukos was offset by an
overweight in peer Gazprom.** Significant individual contributions came from an
underweight to Israeli stock Teva Pharmaceutical,** while overweights in China
Resources Power Holdings Co. and Thai Airways** detracted from results.
MONDRIAN INVESTMENT PARTNERS
Note: Delaware International Advisers Ltd. was bought out in 2004 and the name
changed to Mondrian Investment Partners Limited. The portfolio management team
remained the same.
We assumed our role as an investment advisor for a portion of the Portfolio on
September 28, 2004. From that date through January 31, 2005, we outperformed the
Index. In Europe, Africa and the Middle East, our overweight position in Egypt
contributed to performance, as did our underweight position in the Russian
market. Egyptian stock MobiNil was our best performer over the period, returning
65.8%. Egyptian stocks in general reacted positively to the first signs in many
years of a genuinely reform-minded government. South African stock selection was
also positive, as we emphasized holdings that would be defensive in nature. In
particular, we correctly anticipated the country's currency weakness, following
the Rand's remarkable strength during much of 2004. Conversely, we failed to
participate in the strength of Turkey's market and currency, which followed the
European Union's approval of a timetable for talks about the country's possible
inclusion.
In Asia, good stock selection in Taiwan was offset by our holdings in Korea.
During the period, three Asian stocks declined in value. Two of the holdings,
Fountain Set (Holdings) Ltd. and Asia Aluminum Holdings LTd., were Chinese
stocks, where short-term investors were selling due to fears of falling cotton
and aluminum prices.
We experienced very strong stock selection in the largest Latin American markets
of Brazil and Mexico, where we held overweight positions. Brazilian stocks such
as Companhia de Concessoes Rodoviarias (CCR), a toll road operator, and Itausa
Investimentos Itau, which operates one of Brazil's largest private banks, have
benefited from the country's continued economic recovery and have posted strong
performance. In Mexico, steel producer Hylsamex appreciated strongly on the back
of high steel prices, which not only helped its profitability, but also aided
its balance sheet.
BIL
We served as co-manager of the Portfolio from August 1, 2004 through September
27, 2004, responsible for 50% of the Portfolio. During this time, we
underperformed the Index. Our investment strategy maintained a relatively
balanced allocation between the three broad groupings of the cyclical (global
growth), defensive (domestic drivers) and risk (interest rate) sensitive
markets. In the absence of a major clear strategic theme in favor of growth or
interest rates, and given the benign outlook in both cases, we believed it was
appropriate to maintain this approach.
Country selection detracted from performance over the period, primarily as a
result of an underweight to Brazil and, to a lesser extent, due to an overweight
in Taiwan and underweight in South Africa. We believed the scope for ongoing
positive news from Brazil was limited, but we underestimated the appetite for
interest rate sensitive assets and the possibility that Brazil would remain a
major beneficiary of economic and corporate events. Conversely, our overweight
positions in Argentina and Turkey added value, but not enough to make up for our
positioning in Brazil.
Stock selection was a small negative during the period. Within Asia, our
holdings in Taiwan contributed to results, including our holdings in Formosa
Chemical & Fibre and Telecom equipment company Zyxel.** Holdings in Russia,
Mexico, India and Argentina were also positive contributors. Conversely, stock
selection in Korea was a drag on performance. While adding to our position in
Hyundai Motor benefited performance, our holdings in Samsung Fire & Marine and
Cheil Communications did not meet our expectations.**
** Not held in the Portfolio as of January 31, 2005.
57
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION~
- --------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 28.35% 17.75% N/A 8.07%
Maximum Sales Charge Class B** 27.71 16.67 N/A 9.13
or UBS PACE Program Fee Class C*** 27.90 16.95 N/A 9.07
Class Y**** 28.63 18.31 N/A 8.27
Class P***** 28.41 17.88 -0.91% 1.64
After Deducting Class A* 21.33 11.26 N/A 6.61
Maximum Sales Charge Class B** 22.71 11.67 N/A 8.76
or UBS PACE Program Fee Class C*** 26.90 15.95 N/A 9.07
Class P***** 27.45 16.13 -2.38 0.13
MSCI Emerging Markets Free (EMF) Index 29.64 22.02 4.56 3.93
Lipper Emerging Markets Funds median 28.47 20.27 4.44 5.50
</Table>
Average annual total returns for periods ended December 31, 2004, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 12.96%; since inception, 6.54%; Class B--1-year period,
13.31%; since inception, 8.74%; Class C--1-year period, 17.51%; since inception,
9.04%; Class Y--1-year period, 19.86%; since inception, 8.21%; Class P--1-year
period, 17.75%; 5-year period, -2.88%; since inception, 0.05%.
~ Since inception returns are calculated as of commencement of issuance on
August 24, 1995 for Class P shares, December 11, 2000 for Class A shares,
December 22, 2000 for Class B shares, December 1, 2000 for Class C shares
and February 9, 2001 for Class Y shares. Since inception returns for the
Index and Lipper median are shown as of August 31, 1995, which is the
nearest month-end of the inception date of the oldest share class (Class
P).
* 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% imposed
on redemptions and is reduced to 0% after a maximum of six years. Class B
shares bear ongoing 12b-1 distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 1% imposed
on redemptions and is reduced to 0% after one year. Class C shares bear
ongoing 12b-1 distribution and service fees.
**** The Portfolio offers Class Y shares to a limited group of eligible
investors, including certain qualifying retirement plans. Class Y shares
do not bear initial or contingent deferred sales charges or ongoing 12b-1
distribution and service fees.
***** Class P shares do not bear initial or contingent deferred sales charges
or ongoing 12b-1 distribution and service fees, but are subject to a
maximum annual UBS PACE program fee of 1.5% of the value of Class P
shares.
The MSCI Emerging Markets Free (EMF) Index is a market capitalization-weighted
index composed of companies representative of the market structure of 25
emerging market countries in Europe, Latin America, and the Pacific Basin. The
MSCI EMF Index excludes closed markets and those shares in otherwise free
markets that are not purchasable by foreigners.
Past performance does not predict future performance and the performance
information provided does not reflect the deduction of taxes that a shareholder
would pay on Portfolio distributions or the redemption of Portfolio shares. The
return and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Performance results assume reinvestment of all dividends and capital gain
distributions. 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.
58
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable); including sales charges (loads), program
fees, and redemption fees; and (2) ongoing costs, including management fees;
distribution and/or service (12b-1) fees (if applicable); and other Portfolio
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Portfolio and to compare these costs with the
ongoing costs of investing in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line for each class of shares in the table below provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over a period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line for each class of shares under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each class of shares in the table below provides information
about hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratios for each class of shares and an assumed rate
of return of 5% per year before expenses, which is not the Portfolio's actual
return for each class of shares. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs
of investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as sales charges (loads), program fees or redemption fees. Therefore, the
second line in the table for each class of shares is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your
costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04-1/31/05
- -------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,283.50 $ 11.97
Hypothetical (5% annual return before expenses) 1,000.00 1,014.72 10.56
Class B Actual 1,000.00 1,277.10 17.39
Hypothetical (5% annual return before expenses) 1,000.00 1,009.93 15.35
Class C Actual 1,000.00 1,279.00 16.43
Hypothetical (5% annual return before expenses) 1,000.00 1,010.79 14.50
Class Y Actual 1,000.00 1,286.30 9.45
Hypothetical (5% annual return before expenses) 1,000.00 1,016.94 8.34
Class P Actual 1,000.00 1,284.10 11.51
Hypothetical (5% annual return before expenses) 1,000.00 1,015.12 10.16
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios:
Class A: 2.08%, Class B: 3.03%, Class C: 2.86%, Class Y: 1.64%, Class P:
2.00%, multiplied by the average account value over the period,
multiplied by 184 divided by 365 (to reflect the one-half year period).
59
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- --------------------------------------------------------------------------------
Net Assets (mm) $ 193.3
Number of Securities 168
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- --------------------------------------------------------------------------------
Equities (common and preferred stocks and rights) 97.5%
Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 2.5
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
REGIONAL ALLOCATION* 1/31/05
- --------------------------------------------------------------------------------
Asia 47.5%
Europe/Middle East/Africa 28.0
Latin America 22.0
Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 2.5
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
TOP FIVE COUNTRIES (EQUITY INVESTMENTS)* 1/31/05
- --------------------------------------------------------------------------------
South Korea 17.3%
Brazil 12.1
South Africa 11.8
Taiwan 10.0
Mexico 7.0
- --------------------------------------------------------------------------------
Total 58.2%
- --------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY HOLDINGS* 1/31/05
- --------------------------------------------------------------------------------
Samsung Electronics 2.8%
Petroleo Brasileiro 2.4
China Telecom 1.5
Sasol 1.5
Egyptian Co. for Mobile Services (MobiNil) 1.3
Taiwan Semiconductor Manufacturing 1.2
Impala Platinum Holdings 1.2
China Steel 1.2
Malaysia International Shipping 1.1
Cemex 1.1
- --------------------------------------------------------------------------------
Total 15.3%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of net assets as of January 31, 2005.
The Portfolio is actively managed and its composition will vary over
time.
** Weighting represents less than 0.05% of the Portfolio's net assets as of
January 31, 2005.
60
<Page>
UBS PACE MONEY MARKET INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 14.92%
$ 4,000 Federal Farm Credit Bank 02/01/05 2.486%* $ 4,000,814
9,000 Federal Home Loan Bank 03/01/05 to 10/21/05 1.350 to 2.250 8,994,409
3,500 Federal Home Loan Bank 03/07/05 to 04/05/05 2.295 to 2.447* 3,498,881
2,000 Federal Home Loan Mortgage Corp. 08/15/05 1.500@ 1,991,098
8,800 Federal National Mortgage Association 03/29/05 to 09/30/05 1.400 to 2.300 8,800,000
Total U.S. Government Agency Obligations (cost - $27,285,202) 27,285,202
- --------------------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 19.41%
NON-U.S. - 6.83%
2,000 BNP Paribas 02/23/05 2.265* 1,999,375
2,000 BNP Paribas 03/22/05 2.530 2,000,000
1,500 Fortis Bank NV 02/04/05 2.315* 1,499,962
2,000 Royal Bank of Scotland PLC 10/03/05 2.375 1,999,669
2,000 Societe Generale 02/10/05 2.350* 1,999,786
3,000 UniCredito Italiano SpA 03/24/05 2.465* 2,999,610
12,498,402
U.S. - 12.58%
4,000 American Express Centurion Bank 02/16/05 2.410 4,000,000
4,000 Discover Bank 02/15/05 2.390 4,000,000
4,000 First Tennessee Bank N.A. (Memphis) 02/03/05 to 02/15/05 2.310 to 2.380 4,000,000
3,000 Harris Trust & Savings Bank 02/01/05 2.300* 3,000,000
4,000 Washington Mutual Bank 02/17/05 2.380 4,000,000
4,000 Wells Fargo Bank N.A. 02/23/05 2.500 4,000,000
23,000,000
Total Certificates of Deposit (cost - $35,498,402) 35,498,402
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - 63.15%
ASSET BACKED-AUTO & TRUCK - 2.18%
4,000 New Center Asset Trust 02/28/05 2.390 3,992,830
ASSET BACKED-BANKING - 2.19%
4,000 Atlantis One Funding 02/17/05 2.340 3,995,840
ASSET BACKED-MISCELLANEOUS - 19.94%
4,000 Amsterdam Funding Corp. 02/15/05 2.410 3,996,251
2,000 Barton Capital Corp. 02/04/05 2.280 1,999,620
4,000 Falcon Asset Securitization Corp. 02/15/05 2.380 3,996,298
5,000 Giro Multi-Funding Corp. 02/22/05 2.450 4,992,854
4,000 Old Line Funding Corp. 02/22/05 2.360 3,994,493
4,000 Ranger Funding Co. LLC 02/10/05 2.350 3,997,650
1,500 Triple A One Funding 02/11/05 2.350 1,499,021
4,000 Variable Funding Capital Corp. 02/28/05 2.420 3,992,740
4,000 Windmill Funding Corp. 02/08/05 2.330 3,998,188
4,000 Yorktown Capital LLC 02/24/05 2.470 3,993,688
36,460,803
ASSET BACKED-SECURITIES - 13.08%
3,000 Beta Finance, Inc.** 03/14/05 2.430 2,991,697
</Table>
61
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - (CONCLUDED)
ASSET BACKED-SECURITIES - (CONCLUDED)
$ 4,000 CC (USA), Inc.** 04/11/05 2.560% $ 3,980,373
3,000 Dorada Finance, Inc.** 02/01/05 to 02/11/05 2.140 to 2.250 2,999,375
4,000 Galaxy Funding, Inc. 04/04/05 2.580 3,982,227
4,000 Giro Funding US Corp. 02/15/05 to 02/28/05 2.380 to 2.500 3,994,399
2,000 Links Finance LLC** 04/04/05 2.480 1,991,458
4,000 Scaldis Capital LLC 03/29/05 2.440 3,984,818
23,924,347
BANKING-NON-U.S. - 12.65%
2,000 Bank of Ireland 03/10/05 2.450 1,994,964
3,500 Banque et Caisse d'Epargne de L'Etat 02/14/05 2.390 3,496,979
3,660 Caisse Nationale des Caisses d'Epargne et de Prevoyance 03/21/05 2.500 3,647,800
4,000 Depfa Bank PLC 03/02/05 2.380 3,992,331
2,000 DNB NOR Bank ASA 02/08/05 2.340 1,999,090
4,000 Nationwide Building Society 02/22/05 2.370 3,994,470
4,000 Northern Rock PLC 02/02/05 2.145 3,999,762
23,125,396
BANKING-U.S. - 6.01%
3,000 ING (US) Funding LLC 02/25/05 2.370 2,995,260
3,000 KFW International Finance, Inc. 02/04/05 2.270 2,999,432
3,000 National Australia Funding (Delaware), Inc. 02/22/05 2.370 2,995,853
2,000 San Paolo IMI U.S. Financial Co. 02/03/05 2.240 1,999,751
10,990,296
BROKERAGE - 3.28%
4,000 Goldman Sachs Group, Inc. 02/22/05 2.370 3,994,470
2,000 Greenwich Capital Holdings, Inc. 02/28/05 2.504* 2,000,000
5,994,470
FINANCE-NONCAPTIVE DIVERSIFIED - 1.09%
2,000 General Electric Capital Corp. 05/09/05 2.380 1,987,174
PHARMACEUTICALS - 2.73%
4,000 GlaxoSmithKline Finance PLC 03/03/05 2.390 3,992,034
1,000 Novartis Finance Corp. 02/07/05 2.500 999,583
4,991,617
Total Commercial Paper (cost - $115,462,773) 115,462,773
- --------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE OBLIGATIONS - 3.56%
BANKING-U.S. - 0.55%
1,000 KFW International Finance, Inc. 04/18/05 4.250 1,005,730
FINANCE-CAPTIVE AUTOMOTIVE - 1.10%
2,000 Toyota Motor Credit Corp. 02/01/05 2.300* 2,000,000
</Table>
62
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE OBLIGATIONS - (CONCLUDED)
FINANCE-NONCAPTIVE CONSUMER - 0.82%
$ 1,500 HSBC FINANCE CORP. 02/07/05 2.360%* $ 1,500,000
FINANCE-NONCAPTIVE DIVERSIFIED - 1.09%
2,000 GENERAL ELECTRIC CAPITAL CORP. 02/09/05 2.520* 2,000,000
Total Short-Term Corporate Obligations (cost - $6,505,730) 6,505,730
- --------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.14%
255 Repurchase Agreement dated 01/31/05 with State Street
Bank & Trust Co., collateralized by $251,726
U.S. Treasury Notes, 5.750% due 11/15/05;
(value - $260,222); proceeds:
$255,016 (cost - $255,000) 02/01/05 2.280 255,000
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- --------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS+ - 0.90%
1,107 AIM Liquid Assets Portfolio 2.273 1,107,442
527 BLACKROCK PROVIDENT INSTITUTIONAL TEMPFUND 2.217 527,087
Total Money Market Funds (cost - $1,634,529) 1,634,529
- --------------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $186,641,636 which approximates cost for federal
income tax purposes) - 102.08% 186,641,636
Liabilities in excess of other assets - (2.08)% (3,794,744)
Net Assets (applicable to 182,847,136 shares of beneficial
interest outstanding equivalent to $1.00 per share) - 100.00% $ 182,846,892
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Variable rate securities - maturity dates reflect earlier of reset dates
or stated maturity dates. The interest rates shown are the current rates
as of January 31, 2005, and reset periodically.
** Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 6.54% of net assets as of
January 31, 2005, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
@ Interest rates shown are the discount rates at date of purchase.
+ Interest rates shown reflect yield at January 31, 2005.
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- -------------------------------------------------------------------
UNITED STATES 80.9%
UNITED KINGDOM 5.3
FRANCE 5.2
IRELAND 3.2
LUXEMBOURG 1.9
ITALY 1.6
NORWAY 1.1
BELGIUM 0.8
Total 100.0%
- -------------------------------------------------------------------
</Table>
Weighted Average Maturity - 37 days
See accompanying notes to financial statements
63
<Page>
UBS PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION - 0.76%
$ 3,500 U.S. Treasury Notes (3) (cost - $3,729,086) 08/15/11 5.000% $ 3,723,534
- --------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 12.97%
15 GNMA 12/15/07 8.000 15,372
35 GNMA 08/15/09 8.000 36,768
740 GNMA 08/15/09 9.000 786,552
2 GNMA 03/15/13 11.500 1,656
38 GNMA 02/15/19 10.500 42,987
1,045 GNMA 04/15/19 8.250 1,133,513
4 GNMA 05/15/19 11.500 4,835
80 GNMA 06/15/19 10.500 89,469
156 GNMA 07/15/19 10.500 174,300
30 GNMA 08/15/19 10.500 33,740
25 GNMA 09/15/19 10.500 27,724
5 GNMA 07/15/20 10.500 5,155
103 GNMA 08/15/20 10.500 116,787
11 GNMA 09/15/20 10.500 12,727
19 GNMA 08/15/21 7.500 20,636
6 GNMA 02/15/23 8.000 6,291
6 GNMA 09/15/23 7.500 6,073
244 GNMA 12/15/32 5.500 250,295
386 GNMA 02/15/33 5.500 396,118
882 GNMA 03/15/33 5.500 905,601
1,856 GNMA 07/15/33 5.500 1,906,761
973 GNMA 01/15/34 5.500 999,678
5,993 GNMA 03/15/34 5.500 6,153,999
1,506 GNMA 04/15/34 5.500 1,546,762
3,378 GNMA 05/15/34 5.500 3,469,970
97 GNMA II 04/20/25 9.000 108,215
15 GNMA II 12/20/26 9.000 17,193
49 GNMA II 01/20/27 9.000 54,627
31 GNMA II 04/20/30 9.000 33,630
4 GNMA II 05/20/30 9.000 4,023
4 GNMA II 06/20/30 9.000 4,877
29 GNMA II 07/20/30 9.000 31,453
30 GNMA II 09/20/30 9.000 33,283
63 GNMA II 10/20/30 9.000 69,592
79 GNMA II 11/20/30 9.000 87,383
33 GNMA II ARM 07/20/17 3.750 33,666
487 GNMA II ARM 01/20/18 4.000 493,022
50 GNMA II ARM 04/20/18 3.375 50,200
23 GNMA II ARM 05/20/18 4.000 23,273
73 GNMA II ARM 06/20/19 4.000 74,100
62 GNMA II ARM 06/20/19 4.500 60,929
71 GNMA II ARM 05/20/21 3.375 72,404
</Table>
64
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - (CONTINUED)
$ 498 GNMA II ARM 09/20/21 3.750% $ 505,207
83 GNMA II ARM 11/20/21 4.625 84,196
468 GNMA II ARM 06/20/22 3.375 472,886
170 GNMA II ARM 11/20/22 4.625 173,368
377 GNMA II ARM 01/20/23 3.375 380,284
208 GNMA II ARM 03/20/23 3.375 210,398
601 GNMA II ARM 01/20/24 3.375 608,759
391 GNMA II ARM 04/20/24 3.375 395,061
3 GNMA II ARM 12/20/24 4.625 3,356
47 GNMA II ARM 01/20/25 3.375 47,476
138 GNMA II ARM 02/20/25 3.375 139,259
185 GNMA II ARM 03/20/25 3.375 187,200
89 GNMA II ARM 03/20/25 3.500 89,086
397 GNMA II ARM 05/20/25 3.375 404,243
176 GNMA II ARM 06/20/25 3.375 179,510
132 GNMA II ARM 08/20/25 3.750 134,520
146 GNMA II ARM 09/20/25 3.750 148,077
116 GNMA II ARM 10/20/25 4.625 118,180
21 GNMA II ARM 12/20/25 4.625 21,129
103 GNMA II ARM 03/20/26 3.375 104,742
933 GNMA II ARM 04/20/26 3.375 941,054
446 GNMA II ARM 06/20/26 3.375 449,681
171 GNMA II ARM 08/20/26 3.750 174,070
25 GNMA II ARM 09/20/26 3.750 25,622
88 GNMA II ARM 10/20/26 4.625 89,272
115 GNMA II ARM 12/20/26 4.625 116,967
530 GNMA II ARM 01/20/27 3.375 534,581
70 GNMA II ARM 02/20/27 3.375 70,573
340 GNMA II ARM 04/20/27 3.375 343,636
64 GNMA II ARM 07/20/27 3.750 64,857
186 GNMA II ARM 08/20/27 3.750 188,810
336 GNMA II ARM 11/20/27 4.625 341,968
36 GNMA II ARM 12/20/27 4.625 36,525
65 GNMA II ARM 01/20/28 3.375 65,435
18 GNMA II ARM 02/20/28 3.250 18,104
51 GNMA II ARM 02/20/28 3.375 51,484
71 GNMA II ARM 10/20/29 4.625 72,773
335 GNMA II ARM 04/20/30 3.375 338,036
6,187 GNMA II ARM 05/20/30 3.375 6,244,272
81 GNMA II ARM 06/20/30 3.500 81,445
1,409 GNMA II ARM 07/20/30 3.500 1,425,197
1,088 GNMA II ARM 08/20/30 3.500 1,100,483
136 GNMA II ARM 10/20/30 4.500 137,068
157 GNMA II ARM 09/20/31 4.500 158,633
</Table>
65
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - (CONCLUDED)
$ 91 GNMA II ARM 11/20/31 4.500% $ 91,464
19,500 GNMA TBA TBA 5.500 19,938,750
6,000 GNMA TBA TBA 6.000 6,230,628
Total Government National Mortgage Association Certificates
(cost - $62,794,104) 63,133,964
- --------------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES - 14.45%
6 FHLMC 12/01/05 10.500 6,160
736 FHLMC 07/01/08 6.000 748,916
11 FHLMC 07/01/09 9.000 12,096
12 FHLMC 02/01/10 9.000 13,009
19 FHLMC 05/01/10 11.500 21,075
15 FHLMC 08/01/10 11.500 16,939
17 FHLMC 11/01/10 11.500 18,287
18 FHLMC 05/01/11 11.000 19,716
282 FHLMC 03/01/13 8.000 305,757
6 FHLMC 03/01/13 11.000 6,644
28 FHLMC 05/01/14 11.500 30,858
8 FHLMC 09/01/14 11.500 8,565
16 FHLMC 07/01/15 11.000 17,252
20 FHLMC 09/01/15 11.000 21,622
4 FHLMC 10/01/15 11.000 4,762
40 FHLMC 12/01/15 11.000 43,906
39 FHLMC 12/01/15 11.500 43,519
4 FHLMC 01/01/16 11.500 4,556
4 FHLMC 02/01/16 11.500 4,641
219 FHLMC 05/01/16 8.500 221,957
88 FHLMC 11/01/16 9.750 95,296
7 FHLMC 10/01/17 7.500 7,030
45 FHLMC 12/01/17 11.500 50,582
14 FHLMC 01/01/18 11.500 15,453
46 FHLMC 01/01/19 11.000 51,416
16 FHLMC 04/01/19 11.000 18,461
9 FHLMC 05/01/19 11.500 9,629
2 FHLMC 06/01/19 11.000 2,281
26 FHLMC 06/01/19 11.500 29,448
20 FHLMC 07/01/19 11.500 22,510
+ 0 FHLMC 08/01/20 11.000 172
9 FHLMC 09/01/20 11.000 10,567
59 FHLMC 11/01/20 10.500 65,951
11 FHLMC 12/01/20 11.000 12,796
14 FHLMC 11/01/24 7.500 15,305
635 FHLMC 04/01/25 9.000 684,701
5 FHLMC 08/01/25 7.000 5,077
1,001 FHLMC 03/01/34 5.000 999,714
541 FHLMC ARM 10/01/23 3.886 559,178
899 FHLMC ARM 07/01/24 3.730 927,407
</Table>
66
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES - (CONCLUDED)
$ 1,420 FHLMC ARM 11/01/25 3.926% $ 1,464,175
1,089 FHLMC ARM 10/01/27 3.964 1,121,853
1,819 FHLMC ARM 10/01/27 4.240 1,862,882
424 FHLMC ARM 11/01/27 3.674 435,514
336 FHLMC ARM 01/01/28 3.993 345,364
1,848 FHLMC ARM 06/01/28 3.771 1,906,133
1,491 FHLMC ARM 07/01/28 3.900 1,533,559
1,091 FHLMC ARM 01/01/29 3.901 1,127,068
1,123 FHLMC ARM 04/01/29 3.724 1,164,097
51 FHLMC ARM 10/01/29 5.827 53,396
2,168 FHLMC ARM 11/01/29 3.780 2,246,678
1,083 FHLMC ARM 12/01/29 3.801 1,116,610
356 FHLMC ARM 01/01/30 3.781 365,452
26,000 FHLMC TBA TBA 5.000 25,959,388
24,000 FHLMC TBA TBA 5.500 24,457,488
Total Federal Home Loan Mortgage Corporation Certificates
(cost - $69,636,322) 70,312,868
- --------------------------------------------------------------------------------------------------------------------------------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES - 2.23%
391 FHA GMAC 04/01/19 7.480 397,185
2,194 FHA GMAC 02/01/21 7.400 2,193,677
181 FHA GMAC 05/01/21 7.450 181,134
1,548 FHA Project Certificates 02/01/20 8.430 1,548,200
1,567 FHA Reilly 07/01/20 6.896 1,582,413
95 FHA Reilly 08/01/20 7.430 96,618
4,842 FHA Wingate St. Francis 04/01/31 8.375 4,842,400
Total Federal Housing Administration Certificates
(cost - $10,854,708) 10,841,627
- --------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 55.49%
+ 0 FNMA 02/01/05 9.000 122
303 FNMA 05/01/09 9.000 323,141
176 FNMA 07/01/09 7.249 193,100
6 FNMA 12/01/09 9.500 6,772
84 FNMA 04/01/10 9.250 90,469
11 FNMA 03/01/11 10.250 11,932
41 FNMA 04/01/11 10.250 45,163
7 FNMA 02/01/12 10.500 7,958
22 FNMA 09/01/12 6.500 23,033
62 FNMA 12/01/12 6.500 65,544
11 FNMA 01/01/13 6.500 12,136
52 FNMA 02/01/13 6.500 54,696
107 FNMA 03/01/13 6.500 112,871
46 FNMA 04/01/13 6.500 48,496
92 FNMA 04/01/13 9.250 98,486
157 FNMA 06/01/13 6.500 166,329
69 FNMA 07/01/13 6.500 73,026
6 FNMA 07/01/13 10.500 6,193
</Table>
67
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - (CONTINUED)
$ 28 FNMA 07/01/13 11.000% $ 30,841
42 FNMA 08/01/13 6.500 43,941
252 FNMA 09/01/13 6.500 266,064
97 FNMA 10/01/13 6.500 102,626
88 FNMA 11/01/13 6.500 92,571
8 FNMA 04/01/14 10.500 8,674
13 FNMA 05/01/14 5.500 13,671
146 FNMA 05/01/14 9.250 154,223
40 FNMA 09/01/15 10.500 44,056
32 FNMA 10/01/15 11.000 35,413
+ 0 FNMA 11/01/15 10.500 207
55 FNMA 11/01/15 11.000 59,788
79 FNMA 12/01/15 9.250 84,215
26 FNMA 01/01/16 11.000 27,945
21 FNMA 02/01/16 11.000 23,383
22 FNMA 03/01/16 11.000 24,014
467 FNMA 06/01/17 5.500 480,996
3,043 FNMA 10/01/17 5.000 3,095,320
1,991 FNMA 02/01/18 5.000 2,025,603
1,510 FNMA 05/01/18 5.000 1,535,108
34 FNMA 06/01/18 5.000 34,168
690 FNMA 07/01/18 5.000 701,625
769 FNMA 08/01/18 5.000 782,179
4,114 FNMA 10/01/18 5.000 4,184,252
23,130 FNMA 11/01/18 5.000 23,522,447
4,135 FNMA 12/01/18 5.000 4,205,257
12,202 FNMA 02/01/19 5.000 12,405,860
601 FNMA 04/01/19 4.500 600,745
2,873 FNMA 05/01/19 4.500 2,871,285
4,375 FNMA 06/01/19 4.500 4,373,485
1,648 FNMA 07/01/19 4.500 1,646,413
237 FNMA 07/01/19 6.500 249,570
15 FNMA 07/01/19 10.500 16,399
941 FNMA 08/01/19 4.500 940,416
180 FNMA 08/01/19 10.000 195,837
228 FNMA 10/01/19 9.000 253,832
28 FNMA 05/01/20 11.000 30,354
7 FNMA 08/01/20 10.500 7,598
16 FNMA 09/01/21 10.500 17,175
23 FNMA 04/01/22 10.500 25,803
5 FNMA 06/01/24 7.500 5,373
66 FNMA 07/01/24 7.500 71,434
76 FNMA 08/01/24 7.500 82,322
1 FNMA 10/01/24 7.500 1,086
3 FNMA 12/01/24 7.500 3,058
</Table>
68
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - (CONCLUDED)
$ 32 FNMA 06/01/25 7.500% $ 34,090
34 FNMA 07/01/25 7.500 36,088
74 FNMA 07/01/25 8.000 80,634
256 FNMA 09/01/25 8.500 282,335
128 FNMA 02/01/26 9.000 142,215
19 FNMA 04/01/26 6.500 19,435
192 FNMA 10/01/26 7.500 206,925
214 FNMA 11/01/26 7.500 230,429
109 FNMA 11/01/26 8.000 118,290
170 FNMA 03/01/29 6.500 178,303
402 FNMA 05/01/29 6.500 421,581
433 FNMA 07/01/32 6.500 453,186
8 FNMA 08/01/32 6.500 8,224
32 FNMA 03/01/33 6.000 33,271
1,887 FNMA 03/01/33 6.500 1,974,498
13 FNMA 05/01/33 6.500 13,329
12 FNMA 12/01/33 6.500 12,679
361 FNMA 04/01/34 6.500 377,845
154 FNMA 07/01/34 6.500 161,162
493 FNMA 11/01/34 6.500 516,321
33,910 FNMA* 03/01/34 5.000 33,913,911
5,908 FNMA* 07/01/34 5.000 5,897,635
998 FNMA* 11/01/34 5.000 996,268
24,000 FNMA* 01/01/35 5.000 23,958,750
600 FNMA ARM 09/01/15 3.575 601,168
40 FNMA ARM 11/01/23 5.268 41,138
891 FNMA ARM 03/01/25 4.180 909,921
209 FNMA ARM 02/01/26 4.030 215,068
451 FNMA ARM 09/01/26 4.209 463,914
10,227 FNMA ARM 10/01/26 3.096 10,101,476
269 FNMA ARM 12/01/27 4.006 275,883
175 FNMA ARM 02/01/29 3.921 179,587
112 FNMA ARM 09/01/29 6.623 112,705
311 FNMA ARM 02/01/30 4.024 320,986
444 FNMA ARM 05/01/30 3.914 455,425
286 FNMA ARM 07/01/30 4.134 294,505
62,500 FNMA TBA TBA 5.000 63,476,562
34,500 FNMA TBA TBA 5.500 35,125,313
20,000 FNMA TBA TBA 6.000 20,650,000
Total Federal National Mortgage Association Certificates
(cost - $269,052,910) 270,007,154
- --------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 7.46%
4,278 Chevy Chase Funding LLC, Series 2004-1, Class A1 (2) 01/25/35 2.810++ 4,282,027
5,000 Commercial Mortgage Pass-Through Certificates,
Series 2003-FL8, Class A2 (2) 07/15/15 2.680++ 5,006,835
1,321 Federal Agricultural Mortgage Corp., Series 2002,
Class AA1 04/25/11 7.827 1,389,323
</Table>
69
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - (CONCLUDED)
$ 181 FHLMC REMIC, Series 0023, Class KZ 11/25/23 6.500% $ 191,587
65 FHLMC REMIC, Series 0159, Class H 09/15/21 4.500 65,242
8 FHLMC REMIC, Series 0185, Class E 08/15/06 9.000 7,955
325 FHLMC REMIC, SERIES 1003, CLASS H 10/15/20 3.250++ 325,473
12 FHLMC REMIC, SERIES 1349, CLASS PS 08/15/22 7.500 12,408
1,515 FHLMC REMIC, SERIES 1502, CLASS PX 04/15/23 7.000 1,588,895
758 FHLMC REMIC, SERIES 1534, CLASS Z 06/15/23 5.000 757,832
245 FHLMC REMIC, SERIES 1573, CLASS PZ 09/15/23 7.000 263,771
161 FHLMC REMIC, SERIES 1658, CLASS GZ 01/15/24 7.000 170,959
618 FHLMC REMIC, SERIES 1694, CLASS Z 03/15/24 6.500 622,503
34 FHLMC REMIC, SERIES 1775, CLASS Z 03/15/25 8.500 35,284
109 FHLMC REMIC, SERIES 2258, CLASS F 06/15/29 2.830++ 109,179
289 FHLMC REMIC, SERIES 2411, CLASS FJ 12/15/29 2.830++ 289,972
898 FNMA REMIC, TRUST 1987-002, CLASS Z 11/25/17 11.000 1,017,835
674 FNMA REMIC, TRUST 1988-007, CLASS Z 04/25/18 9.250 730,435
9 FNMA REMIC, TRUST 1992-074, CLASS Z 05/25/22 8.000 9,042
45 FNMA REMIC, TRUST 1992-129, CLASS L 07/25/22 6.000 46,672
94 FNMA REMIC, TRUST 1992-158, CLASS ZZ 08/25/22 7.750 100,840
1,713 FNMA REMIC, TRUST 1993-037, CLASS PX 03/25/23 7.000 1,825,081
5 FNMA REMIC, TRUST 1993-240, CLASS Z 12/25/13 6.250 5,347
82 FNMA REMIC, TRUST 1993-250, CLASS Z 12/25/23 7.000 85,118
181 FNMA REMIC, TRUST G92-040, CLASS ZC 07/25/22 7.000 191,774
148 FNMA REMIC, TRUST G94-006, CLASS PJ 05/17/24 8.000 161,365
173 GNMA REMIC, TRUST 2000-009, CLASS FH 02/16/30 2.980++ 174,303
8,000 INDYMAC INDEX MORTGAGE LOAN TRUST, SERIES 2005-AR2,
CLASS 2A1A 02/25/35 2.870++ 8,000,000
3,579 SEQUOIA MORTGAGE TRUST, SERIES 5, CLASS A 10/19/26 2.850++ 3,576,866
35 SMALL BUSINESS ADMINISTRATION, SERIES 1995-10, CLASS B1 03/01/05 7.750 34,987
88 SMALL BUSINESS ADMINISTRATION, SERIES 1997-P10, CLASS B11 05/10/07 7.310 93,287
1,122 SMALL BUSINESS ADMINISTRATION, SERIES 2000-10, CLASS B1 08/01/10 7.449 1,211,210
3,908 WASHINGTON MUTUAL, SERIES 2003-R1, CLASS A1 12/25/27 2.800++ 3,903,721
Total Collateralized Mortgage Obligations (cost - $35,520,811) 36,287,128
- --------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 8.87%
3,000 CITIBANK OMNI-S MASTER TRUST, SERIES 2002-1, CLASS A 02/18/09 2.580++ 2,999,462
2,046 CITIFINANCIAL MORTGAGE SECURITIES, INC., SERIES 2003-2,
CLASS AV2 05/25/33 2.840++ 2,048,863
524 CONSECO FINANCE HOME LOAN TRUST, SERIES 1999-G,
CLASS M2 06/15/24 9.520 524,413
1,000 CONSECO FINANCE SECURITIZATIONS CORP., SERIES 2000-5,
CLASS M1 02/01/32 8.400 205,000
2,628 CREDIT-BASED ASSET SERVICING AND SECURITIZATION,
SERIES 2004-CB5, CLASS AVI 09/25/21 2.660++ 2,627,758
112 CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.,
SERIES 2002-HE4, CLASS A2 08/25/32 2.970++ 112,152
1,839 CWABS, INC., SERIES 2004-4, CLASS 3A1 11/25/23 2.630++ 1,839,024
2,748 CWABS, INC., SERIES 2004-5, CLASS 4A1 08/25/23 2.640++ 2,748,060
4,019 CWABS, INC., SERIES 2004-6, CLASS 2A1 10/25/21 2.720++ 4,018,688
1,638 EMBARCADERO AIRCRAFT SECURITIZATION TRUST,
SERIES 2000-A, CLASS B (2)^ 08/15/25 3.580++ 512
1,357 EMC MORTGAGE LOAN TRUST, SERIES 2003-A, CLASS A2 (2) 08/25/40 3.280++ 1,371,484
1,010 EQUITY ONE ABS, INC., SERIES 2004-1, CLASS AF1 04/25/34 2.680++ 1,010,264
</Table>
70
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - (CONCLUDED)
$ 3,277 FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2003-FF5,
CLASS A2 03/25/34 2.820%++ $ 3,280,514
2,820 FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2004-FFH3,
CLASS 2A2 10/25/34 2.660++ 2,819,703
827 Fremont Home Loan Trust, Series 2003-1, Class A2 02/25/33 2.870++ 827,469
2,432 Fremont Home Loan Trust, Series 2004-2, Class 2A1 07/25/34 2.680++ 2,432,022
135 Green Tree Financial Corp., Series 1998-2, Class A5 11/01/16 6.240 140,634
117 Home Equity Mortgage Trust, Series 2003-3, Class A1 09/25/33 2.930++ 116,961
2,621 Renaissance Home Equity Loan Trust, Series 2003-2,
Class A 08/25/33 2.970++ 2,631,447
2,938 Renaissance Home Equity Loan Trust, Series 2004-2,
Class AV1 07/25/34 2.690++ 2,938,909
1,053 Residential Asset Mortgage Products, Inc.,
Series 2003-RZ4, Class A1 06/25/24 2.680++ 1,052,910
4,247 Residential Asset Mortgage Products, Inc.,
Series 2004-RS8, Class AII1 05/25/26 2.670++ 4,247,087
1,945 Residential Asset Mortgage Products, Inc.,
Series 2004-RZ1, Class AI1 12/25/22 2.640++ 1,944,795
1,230 Specialty Underwriting & Residential Financing,
Series 2003-BC1, Class A 01/25/34 2.870++ 1,233,501
Total Asset-Backed Securities (cost - $45,556,750) 43,171,632
- --------------------------------------------------------------------------------------------------------------------------------
STRIPPED MORTGAGE-BACKED SECURITIES+++ - 0.32%
681 FHLMC REMIC, Series 0013, Class B (1) 06/25/23 7.000 117,825
50 FHLMC REMIC, Series 1554, Class I (1) 08/15/08 6.500 3,546
1,636 FHLMC REMIC, Series 1627, Class PN (1) 09/15/22 6.000 52,504
61 FHLMC REMIC, Series 2136, Class GD (1) 03/15/29 7.000 10,686
292 FHLMC REMIC, Series 2178, Class PI (1) 08/15/29 7.500 49,199
1 FNMA REMIC, Trust 1992-142, Class KB (1) 08/25/07 11.980 7,990
1 FNMA REMIC, Trust 1992-157, Class JA (1) 09/25/07 10.146 7,891
9 FNMA REMIC, Trust 1994-030, Class IA (1) 11/25/22 6.500 38
40,766 Hilton Hotel Pool Trust, Series 2000-HLTA, Class X (2) 10/03/15 0.618 1,324,897
Total Stripped Mortgage-Backed Securities (cost - $1,649,910) 1,574,576
- --------------------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 6.95%
U.S. - 6.95%
12,000 Bank of America N.A. 02/01/05 to 04/20/05 2.000 to 2.610 12,000,000
12,100 Citibank N.A. 03/07/05 to 04/29/05 2.380 to 2.675 12,100,000
9,700 Wells Fargo Bank N.A. 02/14/05 2.510 9,700,000
Total Certificates of Deposit (cost - $33,800,000) 33,800,000
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - 2.98%
FINANCE-NONCAPTIVE DIVERSIFIED - 2.98%
14,500 General Electric Capital Corp. (cost - $14,480,481) 02/04/05 to 03/11/05 2.040 to 2.420 14,480,481
SHORT-TERM U.S. GOVERNMENT AND AGENCY OBLIGATIONS@ - 14.48%
400 Federal Home Loan Bank 03/02/05 5.500 399,262
22,400 Federal Home Loan Mortgage Corp. 02/15/05 to 04/26/05 1.890 to 2.570 22,309,562
47,200 Federal National Mortgage Association 02/16/05 to 06/01/05 2.197 to 2.645 47,035,301
715 U.S. Treasury Bills++++ 03/17/05 2.025 to 2.205 713,089
- --------------------------------------------------------------------------------------------------------------------------------
Total Short-Term U.S. Government and Agency Obligations
(cost - $70,457,214) 70,457,214
- --------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 12.87%
62,603 Repurchase Agreement dated 01/31/05 with State Street
Bank & Trust Co., collateralized by $63,745,000 U.S.
Treasury Notes, 1.625% due 04/30/05; (value -
$63,859,104); proceeds: $62,606,965 (cost -
$62,603,000) 02/01/05 2.280 62,603,000
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
71
<Page>
<Table>
<Caption>
NUMBER OF
SHARES MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 0.80%
MONEY MARKET FUNDS# - 0.80%
3,800 Barclays Prime Money Market Fund LLC 2.363% $ 3,800,003
85 UBS Private Money Market Fund LLC** 2.287 84,998
Total Money Market Funds (cost - $3,885,001) 3,885,001
Total Investments Before Investments Sold Short
(cost - $684,020,297) - 140.63% 684,278,179
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT
(000)
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT SOLD SHORT - (7.59)%
$ (37,000) FNMA TBA (proceeds - $36,776,562) TBA 5.000 (36,907,500)
Liabilities in excess of other assets - (33.04)% (160,788,867)
Net Assets - 100.00% $ 486,581,812
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
@ Interest rates shown are the discount rates at date of purchase.
* Entire of partial amount pledged as collateral for investments sold
short.
++ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2005.
++++ Entire or partial amount pledged as collateral for futures and options
transactions.
+ Principal amount is less than $500.
^ Bond Interest in default.
+++ Interest Only Security. This security entitles the holder to receive
interest payments from an underlying pool of mortgages. The risk
associated with this security is related to the speed of the principal
paydowns. High prepayments would result in a smaller amount of interest
being received and cause the yield to decrease. Low prepayments would
result in a greater amount of interest being received and cause the yield
to increase.
# Interest rates shown reflect yield at January 31, 2005.
(1) Illiquid securities representing 0.05% of net assets as of January 31,
2005.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 2.46% of net assets as of
January 31, 2005, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
(3) Security, or portion thereof, was on loan at January 31, 2005.
ARM Adjustable Rate Mortgage - The interest rates shown are the current rates
as of January 31, 2005.
REMIC Real Estate Mortgage Investment Conduit.
TBA (To Be Assigned) Securities are purchased on a forward commitment basis
with an approximate principal amount (generally +/- 1.0%) and no definite
maturity date. The actual principal amount and maturity date will be
determined upon settlement when the specific mortgage pools are assigned.
** Affiliated issuer. See table below for more information.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
SECURITY VALUE AT ENDED ENDED VALUE AT ENDED
DESCRIPTION 07/31/04 01/31/05 01/31/05 01/31/05 01/31/05
- ----------------------------------------------------------------------------------------------------
UBS Private
Money Market
Fund LLC -- $ 5,618,512 $ 5,533,514 $ 84,998 $ 1,241
- ----------------------------------------------------------------------------------------------------
</Table>
72
<Page>
<Table>
<Caption>
NUMBER OF
CONTRACTS
(000) VALUE
- --------------------------------------------------------------------------------------------------------------------------------
WRITTEN OPTIONS
CALL OPTIONS WRITTEN
15,000 3 Month LIBOR(1) Interest Rate Swap, strike @ 4.00%, expires 10/31/05 $ 91,650
210 U.S. Treasury Note 10 Year Futures, strike @ $114.00, expires 02/18/05 9,844
101,494
- --------------------------------------------------------------------------------------------------------------------------------
PUT OPTIONS WRITTEN
15,000 3 Month LIBOR(1) Interest Rate Swap, strike @ 7.00%, expires 10/31/05 1,200
210 U.S. Treasury Note 10 Year Futures, strike @ $109.00, expires 02/18/05 3,281
4,481
Total Written Options (premiums received - $618,956) $ 105,975
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION
CONTRACTS CONTRACTS TO DELIVER EXCHANGE FOR DATES (DEPRECIATION)
- --------------------------------------------------------------------------------------------------------------------------------
FUTURES CONTRACTS
238 90 Day Euro Dollar Futures $ 57,581,238 June 2005 $ (26,887)
238 90 Day Euro Dollar Futures 57,440,863 September 2005 (29,313)
219 U.S. Treasury Note 10 Year Futures 24,400,703 March 2005 185,469
$ 129,269
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) 3 Month LIBOR (London Interbank Offered Rate) at January 31, 2005 was
2.750%.
See accompanying notes to financial statements
73
<Page>
UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 20.81%
$ 2,215 U.S. Treasury Bonds 05/15/10 10.000% $ 2,260,857
4,950 U.S. Treasury Bonds (1) 11/15/10 12.750 5,322,601
5,400 U.S. Treasury Bonds (1) 11/15/12 10.375 6,384,868
1,025 U.S. Treasury Bonds 11/15/21 8.000 1,434,160
1,040 U.S. Treasury Bonds 08/15/23 6.250 1,247,309
920 U.S. Treasury Notes 11/15/05 5.750 940,161
1,985 U.S. Treasury Notes 11/30/05 1.875 1,968,562
1,065 U.S. Treasury Notes 12/31/05 1.875 1,054,891
25 U.S. Treasury Notes 05/15/06 4.625 25,487
18,975 U.S. Treasury Notes (1) 06/30/06 2.750 18,880,125
2,900 U.S. Treasury Notes (1) 08/31/06 2.375 2,864,655
910 U.S. Treasury Notes 09/30/06 2.500 899,727
3,260 U.S. Treasury Notes 11/30/06 2.875 3,238,862
295 U.S.Treasury Notes 12/31/06 3.000 293,571
2,105 U.S. Treasury Notes (1) 11/15/07 3.000 2,082,799
910 U.S. Treasury Notes 11/15/09 3.500 903,033
190 U.S. Treasury Notes 12/15/09 3.500 188,404
765 U.S. Treasury Notes 01/15/10 3.625 762,550
9,710 U.S. Treasury Notes (1) 02/15/12 4.875 10,268,704
805 U.S. Treasury Notes 11/15/12 4.000 805,755
17,205 U.S. Treasury Notes (1) 11/15/14 4.250 17,363,613
Total U.S. Government Obligations (cost - $79,978,939) 79,190,694
- --------------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES - 2.77%
3,875 FHLMC 04/19/07 3.010 3,834,537
1,125 FHLMC 02/27/09 3.750 1,118,967
2,545 FHLMC 12/08/10 4.750 2,561,756
1,600 FHLMC 10/11/12 4.750 1,600,111
1,430 FHLMC 10/27/14 5.000 1,436,133
Total Federal Home Loan Mortgage Corporation Certificates
(cost - $10,490,129) 10,551,504
- --------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 12.35%
3,025 FNMA 01/06/06 1.790 2,987,257
5,500 FNMA 04/20/06 2.000 5,416,862
1,775 FNMA 06/16/06 1.750 1,738,131
3,775 FNMA 01/30/07 2.710 3,720,172
7,290 FNMA 09/15/09 6.625 8,095,749
5,235 FNMA 01/15/10 7.250 5,982,228
6,765 FNMA 06/15/10 7.125 7,743,043
1,185 FNMA 05/15/11 6.000 1,300,964
1,725 FNMA 11/01/11 5.793 1,845,546
4,480 FNMA 02/21/13 4.750 4,471,708
786 FNMA ARM 08/01/32 5.581 793,687
2,917 FNMA ARM 04/01/34 4.020 2,913,908
Total Federal National Mortgage Association Certificates
(cost - $47,076,797) 47,009,255
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
74
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 12.87%
$ 2,050 Banc of America Commercial Mortgage, Inc.,
Series 2001-1, Class A2 04/15/36 6.503% $ 2,274,535
2,130 Banc of America Commercial Mortgage, Inc.,
Series 2004-5, Class A2 11/10/41 4.176 2,131,199
4,269 Bear Stearns ALT-A Trust, Series 2004-13, Class A1 11/25/34 2.900++ 4,268,884
4,152 Bear Stearns ARM Trust, Series 2004-5, Class 2A 07/25/34 4.041 4,112,629
2,000 Chase Commercial Mortgage Securities Corp.,
Series 1999-2, Class A2 01/15/32 7.198 2,246,668
3,100 Commercial Mortgage Acceptance Corp., Series 1998-C2,
Class A2 09/15/30 6.030 3,236,793
1,530 First Union Lehman Brothers Bank of America,
Series 1998-C2, Class A2 11/18/35 6.560 1,637,284
1,204 FNMA REMIC Trust, Series 2002-63, Class EJ 10/25/32 6.000 1,251,735
3,410 FNMA REMIC Trust, Series 2004-25, Class PA 10/25/30 5.500 3,520,299
2,669 FNMA REMIC Trust, Series 2004-36, Class BS 11/25/30 5.500 2,753,320
1,831 GMAC Commercial Mortgage Securities, Inc.,
Series 1999-C3, Class A2 08/15/36 7.179 2,037,559
1,850 LB Commercial Conduit Mortgage Trust, Series 1998-C4,
Class A1B 10/15/35 6.210 1,979,428
1,258 LB Commercial Conduit Mortgage Trust, Series 1999-C2,
Class A1 10/15/32 7.105 1,317,206
1,044 Nationslink Funding Corp., Series 1999-SL, Class A6 11/10/30 6.608 1,063,016
1,975 Small Business Administration, Series 2004-P10B, Class1 08/10/14 4.754 1,988,046
3,019 Structured ARM Loan Trust, Series 2004-13, Class A2 09/25/34 2.830 3,016,096
1,816 Structured Asset Securities Corp., Series 2003-2,
Class C (2) 01/21/09 2.030++ 1,815,997
1,293 Structured Asset Securities Corp., Series 2003-AL1,
Class A (2) 04/25/31 3.356 1,205,294
3,642 Structured Asset Securities Corp., Series 2004-6,
Class 4A1 ARM 06/25/34 4.901 3,630,005
3,559 Wells Fargo Mortgage Backed Securities Trust,
Series 2004-H, Class A1 06/25/34 4.534++ 3,480,661
Total Collateralized Mortgage Obligations (cost - $49,213,467) 48,966,654
- --------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 9.52%
335 Aames Mortgage Trust, Series 1996-D, Class A1G 03/15/29 7.320 334,520
4,000 American Express Credit Account Master Trust,
Series 2000-1, Class A 09/17/07 7.200 4,006,412
3,585 Capital Auto Receivables Asset Trust, Series 2002-3,
Class A3 10/16/06 3.580 3,590,821
2,800 Chase Issuance Trust, Series 2004-A9, Class A9 06/15/10 3.220 2,763,687
2,890 Citibank Credit Card Issuance Trust, Series 1998-2,
Class A 01/15/10 6.050 3,081,163
3,475 Citibank Credit Card Issuance Trust, Series 2003-A6,
Class A6 05/17/10 2.900 3,373,024
3,325 Citibank Credit Card Issuance Trust, Series 2004-A1,
Class A1 01/20/09 2.550 3,260,435
3,325 Citibank Credit Card Issuance Trust, Series 2004-A4,
Class A4 08/24/09 3.200 3,282,812
2,825 DaimlerChrysler Auto Trust, Series 2004-B, Class A3 09/08/08 3.180 2,813,194
2,000 Epoch 2002 Ltd. (2) 05/30/07 2.190++ 2,020,000
2,925 MBNA Master Credit Card Trust, Series 2004-A4, Class A4 09/15/09 2.700 2,868,202
3,450 Nissan Auto Receivables Owner Trust, Series 2004-B,
Class A4 12/15/09 4.000 3,472,281
1,531 Polaris Securities, Inc., Series 2001-1, Class A1 +(2) 07/17/09 9.370# 1,347,290
Total Asset-Backed Securities (cost - $36,075,629) 36,213,841
- --------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - 34.41%
AEROSPACE & DEFENSE - 0.45%
565 Northrop Grumman Corp. 11/16/06 4.079 568,530
340 Northrop Grumman Corp. 02/15/11 7.125 389,558
689 Raytheon Co. 08/15/07 6.750 736,794
1,694,882
</Table>
75
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONTINUED)
AIRLINES - 0.14%
$ 540 Continental Airlines, Inc. 02/02/19 6.545% $ 531,417
AUTOMOTIVE - 1.06%
725 American Honda Finance (2) 05/26/09 4.500 734,837
1,300 Ford Motor Credit Co. 01/15/10 5.700 1,296,018
1,635 General Motors Acceptance Corp. 09/15/11 6.875 1,641,813
375 General Motors Acceptance Corp. 12/01/14 6.750 367,663
4,040,331
BANKING-NON-U.S. - 1.61%
500 HBOS Treasury Services PLC (2) 09/30/08 3.750 495,832
5,225 L-Bank BW Foerderbank 07/27/06 3.420 5,221,342
425 Swedish Export Credit Corp. 01/15/08 3.500 422,651
6,139,825
BANKING-U.S. - 6.06%
1,450 American Express Bank, Financial Services Board 11/21/07 2.594++ 1,449,474
225 American Express Centurion 07/30/09 4.375 228,092
400 BankBoston N.A. 04/15/08 6.375 429,250
260 Bank of America Corp. 04/15/06 7.200 270,860
295 Bank of America Corp. 02/01/07 5.250 303,998
55 Bank of America Corp. 01/15/08 3.875 55,151
1,315 Bank of America Corp. 02/15/10 7.800 1,523,191
425 Bank One Corp. 06/30/08 2.625 406,820
975 Bank One N.A., Illinois 01/15/08 3.700 971,147
2,050 DEPFA Asset Covered Securities Bank 10/29/08 3.625 2,036,865
675 Firstar Bank N.A. 07/05/10 7.800 687,941
680 Fleet National Bank 01/15/09 5.750 720,298
280 FleetBoston Financial Corp. 02/15/08 3.850 280,161
550 HSBC Bank USA 09/15/09 3.875 543,785
250 Huntington National Bank 10/16/06 2.750 246,428
1,425 National City Bank 06/29/09 2.669++ 1,423,846
100 Rabobank Capital Fund II (2) 12/31/49 5.260 102,549
635 Suntrust Bank 10/15/07 3.625 631,041
430 Suntrust Bank 10/15/08 4.000 430,503
500 Suntrust Bank 06/15/09 4.415 506,050
1,425 U.S. Bank NA 03/12/07 2.400 1,392,417
860 U.S. Bank NA 02/01/08 6.500 922,109
785 U.S. Central Credit Union 05/30/08 2.750 758,826
190 Wachovia Corp. 08/15/08 3.500 187,591
840 Wachovia Corp. 12/15/08 5.625 891,714
925 Wells Fargo & Co. 05/21/06 5.900 954,160
255 Wells Fargo & Co. 09/28/07 2.609++ 254,991
1,150 Wells Fargo & Co. 08/15/08 3.120 1,125,901
1,350 Wells Fargo & Co. 09/15/09 2.590++ 1,348,308
1,900 Wells Fargo & Co. 01/15/10 4.200 1,902,536
65 Wells Fargo & Co. 11/15/14 5.000 66,269
23,052,272
</Table>
76
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONTINUED)
DIVERSIFIED FINANCIALS - 0.36%
$ 670 Nationwide Building Society (2) 01/30/07 2.625% $ 655,663
725 Nationwide Building Society (2) 02/01/10 4.250 725,321
1,380,984
ELECTRIC UTILITIES - 0.30%
380 Ontario Hydro 01/30/08 6.100 404,949
750 SP Powerassets Ltd. (2) 10/22/08 3.800 742,275
1,147,224
ELECTRONICS - 0.04%
115 Loral Corp. 09/15/23 7.000 134,283
ENERGY - 0.58%
675 Anadarko Petroleum Corp. 05/01/08 3.250 661,094
60 Conoco Funding Co. 10/15/06 5.450 61,879
340 Florida Power Corp. 03/01/13 4.800 343,070
400 Occidental Petroleum Corp. 01/15/12 6.750 453,124
675 Ocean Energy, Inc. 10/01/07 4.375 682,165
2,201,332
FINANCE-CONSUMER - 0.33%
1,175 Commercial Credit Co. 07/01/07 6.750 1,257,122
FINANCIAL SERVICES - 10.51%
450 Bank of New York Co., Inc. MTN 09/01/07 3.900 451,971
1,100 Citigroup, Inc. 05/10/06 5.750 1,131,401
1,070 Citigroup, Inc. 03/06/07 5.000 1,098,894
3,145 Citigroup, Inc. 02/09/09 3.625 3,106,512
2,875 Eksportfinans 07/15/09 4.375 2,913,229
1,225 General Electric Capital Corp. 08/15/07 3.500 1,218,179
4,425 General Electric Capital Corp. MTN 01/15/08 3.450 4,422,832
1,980 General Electric Capital Corp. MTN 01/15/08 4.250 2,004,918
5,230 General Electric Capital Corp. MTN 10/15/08 3.600 5,160,990
120 General Electric Capital Corp. MTN 11/21/11 4.375 119,188
690 Goldman Sachs Group, Inc. 01/15/11 6.875 776,918
675 HSBC Finance Corp. 07/15/06 7.200 709,265
350 HSBC Finance Corp. 01/30/07 5.750 363,593
525 HSBC Finance Corp. 12/15/08 4.125 525,683
950 HSBC Finance Corp. 11/16/09 4.125 943,686
50 HSBC Finance Corp. 08/01/10 6.375 54,584
2,765 J.P. Morgan Chase & Co. 05/30/07 5.250 2,860,586
1,530 J.P. Morgan Chase & Co. 02/01/08 4.000 1,532,994
375 Lehman Brothers Holdings, Inc. 02/05/06 6.625 386,897
300 Lehman Brothers Holdings, Inc. 02/01/08 7.000 325,866
800 Massmutual Global Funding (2) 07/15/08 2.550 765,763
1,000 New York Life Global Funding MTN (2) 01/15/09 3.875 992,502
1,600 Principal Life Global Funding (2) 04/30/08 3.625 1,584,552
1,030 SLM Corp. 04/10/07 5.625 1,068,713
</Table>
77
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONTINUED)
FINANCIAL SERVICES - (CONCLUDED)
$ 1,180 SLM Corp. 03/17/08 3.625% $ 1,168,739
825 State Street Bank & Trust Co. 12/11/06 2.410++ 824,580
345 State Street Corp. 06/15/10 7.650 403,770
1,970 TIAA Global Markets (2) 01/22/08 3.875 1,972,013
375 U.S. Bancorp 08/23/07 3.950 376,994
700 Washington Mutual Finance Corp. 05/15/06 6.250 724,624
39,990,436
FOOD & BEVERAGE - 1.44%
460 Cadbury Schweppes US Finance (2) 10/01/08 3.875 457,220
310 Diageo Capital PLC 03/20/08 3.375 305,595
735 General Mills, Inc. 10/15/06 6.449 767,292
1,750 General Mills, Inc. 02/15/07 5.125 1,788,262
200 General Mills, Inc. 11/30/07 3.875 199,683
585 Kraft Foods, Inc. 11/01/11 5.625 620,523
650 Kroger Co. 04/01/11 6.800 729,570
610 Nabisco, Inc. 06/15/05 6.850 618,094
5,486,239
INFORMATION & COMPUTER SERVICES - 0.23%
875 First Data Corp. 10/01/09 3.900 868,948
INSURANCE - 2.62%
450 AIG SunAmerica Global Financing IX (2) 01/17/07 5.100 462,214
2,200 ASIF Global Financing XVIII (2)++++++ 11/26/07 3.850 2,198,273
1,050 ASIF Global Financing XXIII (2) 10/22/08 3.900 1,044,342
1,125 Aspen Insurance Holdings Ltd. (2) 08/15/14 6.000 1,140,154
1,185 Berkshire Hathaway Finance Corp. (2) 01/11/08 2.660++ 1,184,113
1,430 Berkshire Hathaway Finance Corp. (2) 01/15/10 4.125 1,428,799
570 Marsh & McLennan Cos., Inc. 07/13/07 2.770++ 560,512
235 Metropolitan Life Global Funding (2) 07/30/09 4.250 235,910
425 Monumental Global Funding (2) 07/30/09 4.375 425,353
445 Protective Life Second Trust 11/24/08 3.700 442,918
850 Prudential Financial, Inc. 05/01/08 3.750 842,558
9,965,146
MEDIA - 1.44%
745 Comcast Corp. 02/15/08 7.625 815,925
645 Comcast Corp. 03/15/11 5.500 680,037
2,195 Continental Cablevision, Inc. 05/15/06 8.300 2,315,677
1,050 News America, Inc. (2) 12/15/14 5.300 1,068,606
350 Time Warner, Inc. 02/01/24 7.570 419,889
175 Walt Disney Co. 06/20/14 6.200 194,297
5,494,431
MEDICAL PRODUCTS - 0.07%
270 Boston Scientific 06/15/14 5.450 282,062
</Table>
78
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONTINUED)
MEDICAL PROVIDERS - 0.07%
$ 270 UnitedHealth Group, Inc. 08/15/07 3.375% $ 266,857
OIL & GAS - 0.18%
150 Encana Corp. 08/15/09 4.600 152,352
550 Encana Corp. 10/15/13 4.750 549,808
702,160
OIL REFINING - 0.14%
225 Enterprise Products Operating LP (2) 10/15/07 4.000 223,917
300 Tosco Corp. 01/01/07 7.250 318,160
542,077
PHARMACEUTICALS - 0.55%
305 Merck & Co., Inc. 07/01/06 5.250 311,182
460 Merck & Co., Inc. 03/30/07 2.500 448,217
575 Merck & Co., Inc. 02/15/13 4.375 565,170
740 Wyeth 02/01/14 5.500 770,891
2,095,460
RAILROADS - 0.60%
875 Burlington Northern Santa Fe Corp. 04/15/07 7.875 948,532
750 Canadian National Railway Co. 03/15/13 4.400 740,701
555 Union Pacific Corp. 12/01/06 6.700 583,735
2,272,968
REAL ESTATE INVESTMENT TRUSTS - 1.56%
340 Archstone-Smith Operating Trust 08/15/07 5.000 347,650
425 Archstone-Smith Operating Trust 06/15/08 3.000 410,199
555 AvalonBay Communities, Inc. MTN 08/01/07 5.000 567,275
280 AvalonBay Communities, Inc. MTN 11/01/12 6.125 306,007
500 Carramerica Realty Corp. 09/01/11 5.125 509,108
985 EOP Operating LP 03/15/14 4.750 958,951
780 ERP Operating LP 03/15/12 6.625 871,730
175 ERP Operating LP 04/01/13 5.200 179,690
225 Rouse Co. 03/15/09 3.625 211,611
315 Rouse Co. 11/26/13 5.375 304,151
925 Simon Property Group LP 01/30/09 3.750 908,870
340 Simon Property Group LP 03/15/13 5.450 352,651
5,927,893
RETAIL - 0.24%
460 CVS Corp. 09/15/09 4.000 456,539
425 Wal-Mart Stores, Inc. 08/10/09 6.875 474,674
931,213
TELECOMMUNICATIONS - 2.29%
110 Cox Communications, Inc. 11/01/10 7.750 125,845
350 Cox Communications, Inc. 10/01/12 7.125 394,219
925 Deutsche Telekom International Finance BV 06/15/05 7.750 941,987
</Table>
79
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONCLUDED)
TELECOMMUNICATIONS - (CONCLUDED)
$ 1,470 SBC Communications, Inc. 09/15/09 4.125% $ 1,459,516
450 SBC Communications, Inc. 09/15/14 5.100 453,393
100 TCI Communications, Inc. 08/01/13 7.875 120,470
50 TCI Communications, Inc. 08/01/15 8.750 64,222
700 Telecom Italia Capital (2) 01/15/10 4.000 683,517
515 Telecom Italia Capital (2) 09/30/14 4.950 509,363
1,000 Telefonica Europe BV 09/15/10 7.750 1,165,256
505 Turner Broadcasting Systems, Inc. 07/01/13 8.375 622,629
2,030 Verizon New Jersey, Inc. 01/17/12 5.875 2,165,860
8,706,277
UTILITIES - 1.30%
875 Dominion Resources, Inc. 11/15/06 3.660 873,463
650 Dominion Resources, Inc. 12/15/09 5.125 669,663
125 Dominion Resources, Inc. 09/17/12 5.700 133,055
330 Exelon Corp. 05/01/11 6.750 368,403
950 Nisource Finance Corp. 11/23/09 2.915++ 949,773
690 Panhandle Eastern Pipe Line 03/15/07 2.750 673,601
900 TXU Corp. (2) 11/15/09 4.800 896,291
360 Virginia Electric & Power Co. 03/31/06 5.750 369,180
4,933,429
WIRELESS TELECOMMUNICATIONS - 0.24%
900 Vodafone Group PLC 01/30/08 3.950 902,089
25 Vodafone Group PLC 02/15/10 7.750 28,846
930,935
Total Corporate Notes (cost - $130,677,025) 130,976,203
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GOVERNMENT OBLIGATIONS - 1.62%
855 British Columbia Province of Canada 10/29/08 5.375 900,679
NZD 3,850 Government of New Zealand 11/15/11 6.000 2,721,098
955 Quebec Province of Canada 02/15/09 5.750 1,019,012
1,400 United Mexican States 03/03/15 6.625 1,517,600
Total International Government Obligations (cost - $6,016,626) 6,158,389
- --------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATION@ - 5.07%
19,300 Federal Home Loan Bank (cost - $19,300,000) 02/01/05 1.800 19,300,000
- --------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.01%
56 Repurchase Agreement dated 01/31/05 with State Street
Bank & Trust Co., collateralized by $3,775 U.S.
Treasury Bonds, 12.000% due 08/15/13 and $55,651
U.S. Treasury Notes, 1.625% to 5.750% due 03/31/05
to 04/30/06; (value - $60,911); proceeds: $56,004
(cost - $56,000) 02/01/05 2.280 56,000
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
80
<Page>
<Table>
<Caption>
NUMBER OF
SHARES INTEREST
(000) RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 5.18%
MONEY MARKET FUNDS^ - 5.18%
+++ 0 AIM Liquid Assets Portfolio 2.273% $ 44
14,010 Barclays Prime Money Market Fund 2.363 14,009,563
1 Scudder Money Market Series 2.240 881
5,705 UBS Private Money Market Fund LLC** 2.287 5,704,804
Total Money Market Funds (cost - $19,715,292) 19,715,292
- --------------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $398,599,904) - 104.61% 398,137,832
Liabilities in excess of other assets - (4.61)% (17,560,203)
Net Assets - 100.00% $ 380,577,629
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Security, or portion thereof, was on loan at January 31, 2005.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 7.13% of net assets as of
January 31, 2005, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
++ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2005.
@ Interest rate shown is the discount rate at date of purchase.
# Interest rate shown reflects yield to maturity at purchase date for zero
coupon bond.
+ Principal Only Security. This security entitles the holder to receive
principal payments from an underlying pool of assets. High prepayments
return principal faster than expected and cause the yield to increase.
Low prepayments return principal more slowly than expected and cause the
yield to decrease.
^ Interest rates shown reflect yield at January 31, 2005.
+++ Amount represents less than 500 shares.
++++++ Entire or partial amount pledged as collateral for futures transactions.
ARM Adjustable Rate Mortgage - The interest rates shown are the current rates
as of January 31, 2005.
MTN Medium Term Note
NZD New Zealand Dollars
REMIC Real Estate Mortgage Investment Conduit.
** Affiliated Issuer. See table below for more information.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
SECURITY VALUE AT ENDED ENDED VALUE AT ENDED
DESCRIPTION 07/31/04 01/31/05 01/31/05 01/31/05 01/31/05
- --------------------------------------------------------------------------------------------------------------------------
UBS Private
Money Market
Fund LLC $ 1,683 $ 45,683,667 $ 39,980,546 $ 5,704,804 $ 10,036
- --------------------------------------------------------------------------------------------------------------------------
</Table>
81
<Page>
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- -------------------------------------------------------------------
United States 93.2%
Germany 1.3
Canada 1.0
United Kingdom 0.8
New Zealand 0.7
Norway 0.7
Ireland 0.5
Netherlands 0.5
Mexico 0.4
Bermuda 0.3
Luxembourg 0.3
Singapore 0.2
Sweden 0.1
Total 100.0%
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION
CONTRACTS EXCHANGE FOR DATES (DEPRECIATION)
- --------------------------------------------------------------------------------------------------------------------------------
CONTRACTS TO RECEIVE
FUTURES CONTRACTS
69 U.S. Treasury Note 5 Year Futures $ 7,552,097 March 2005 $ 13,847
35 U.S. Treasury Bond 20 Year Futures 3,895,852 March 2005 (123,680)
(109,833)
- --------------------------------------------------------------------------------------------------------------------------------
CONTRACTS TO DELIVER
143 U.S. Treasury Note 2 Year Futures 30,010,241 March 2005 (114,304)
137 U.S. Treasury Note 10 Year Futures 15,295,164 March 2005 85,227
(29,077)
$ (138,910)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
FORWARD FOREIGN CURRENCY CONTRACT
<Table>
<Caption>
CONTRACT TO IN MATURITY UNREALIZED
DELIVER EXCHANGE FOR DATE APPRECIATION
- ------------------------------------------------------------------------------------------------------
New Zealand Dollar 3,852,876 USD 2,717,884 04/27/05 $ 1,889
- ------------------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATION:
USD U.S. Dollars
See accompanying notes to financial statements
82
<Page>
UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 5.63%
$ 1,300 U.S. Treasury Bonds 02/15/21 7.875% $ 1,788,821
1,040 U.S. Treasury Inflation Index Notes (2) 07/15/13 1.875 1,067,868
15,505 U.S. Treasury Inflation Index Notes (2) 01/15/14 2.000 16,041,215
5,370 U.S. Treasury Inflation Index Notes (2) 07/15/14 2.000 5,551,734
Total U.S. Government Obligations (cost - $24,301,447) 24,449,638
- ---------------------------------------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 1.70%
165 GNMA 06/15/17 8.000 179,193
194 GNMA 07/15/17 8.000 212,035
103 GNMA 09/15/17 8.000 111,796
213 GNMA 11/15/17 8.000 232,212
43 GNMA 12/15/31 5.500 44,671
46 GNMA 01/15/32 5.500 47,441
33 GNMA 10/15/32 5.500 33,745
25 GNMA 12/15/32 5.500 26,030
32 GNMA 12/15/33 5.500 32,385
92 GNMA 01/15/34 5.500 94,133
24 GNMA II ARM 11/20/23 4.125 24,764
27 GNMA II ARM 07/20/25 3.750 27,578
73 GNMA II ARM 01/20/26 3.375 73,596
95 GNMA II ARM 05/20/26 3.375 95,713
6,000 GNMA TBA TBA 5.500 6,135,000
Total Government National Mortgage Association Certificates
(cost - $7,347,149) 7,370,292
- ---------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES - 1.90%
6,409 FHLMC 11/01/08 4.500 6,455,460
1,580 FHLMC 05/01/25 7.645 1,790,584
Total Federal Home Loan Mortgage Corporation Certificates
(cost - $8,117,944) 8,246,044
- ---------------------------------------------------------------------------------------------------------------------------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES - 0.11%
253 FHA GMAC 12/01/21 7.430 256,953
88 FHA Reilly 08/01/20 7.430 89,186
117 FHA Reilly 10/01/20 7.430 118,311
Total Federal Housing Administration Certificates
(cost - $476,220) 464,450
- ---------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 4.40%
3,725 FNMA 12/01/09 6.970 4,070,316
7,999 FNMA 01/01/35 5.000 7,985,275
130 FNMA ARM 04/01/27 3.851 134,674
187 FNMA ARM 05/01/27 3.814 194,397
444 FNMA ARM 05/01/30 3.914 455,425
4,595 FNMA ARM 07/01/34 4.609 4,653,540
1,210 FNMA ARM 08/01/40 3.077 1,238,292
366 FNMA ARM COFI 11/01/26 3.287 367,830
Total Federal National Mortgage Association Certificates
(cost - $18,691,753) 19,099,749
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
83
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 53.71%
$ 48 Bank of America Mortgage Securities, Inc.,
Series 2002-G, Class 1A3 07/20/32 6.379%++ $ 49,105
169 Bear Stearns, Series 2002-2, Class 3A 06/25/31 6.936++ 177,419
150 Bear Stearns, Series 2003-1, Class 5A1 04/25/33 5.438++ 150,076
580 Bear Stearns, Series 2003-1, Class 6A1 04/25/33 5.112++ 579,707
2,388 Bear Stearns, Series 2003-3, Class 1A 10/25/33 4.546++ 2,368,352
6,061 Bear Stearns, Series 2004-3, Class 1A2 07/25/34 3.945++ 6,032,370
11,467 Bear Stearns, Series 2004-6, Class 1A1 09/25/34 4.705++ 11,507,956
10,095 Bear Stearns, Series 2004-6, Class 2A1 09/25/34 5.179++ 10,131,086
9,890 Bear Stearns, Series 2004-7, Class 1A1 10/25/34 5.010++ 10,004,973
6,349 Bear Stearns, Series 2004-9, Class 2A1 09/25/34 5.506++ 6,431,694
596 Citicorp Mortgage Securities, Inc.,
Series 2002-12, Class 2A1 12/25/32 5.250 604,556
3,080 Countrywide Alternative Loan Trust,
Series 2003-J3, Class 2A1 12/25/33 6.250 3,138,647
5,127 Countrywide Home Loans, Series 2003-R4,
Class 2A (1) 01/25/34 6.500 5,323,176
5,863 Countrywide Home Loans, Series 2004-12,
Class 11A2 08/25/34 4.372++ 5,898,495
505 FHLMC REMIC, Series 1278, Class K 05/15/22 7.000 505,563
3 FHLMC REMIC, Series 1366, Class H 08/15/07 6.000 3,087
8 FHLMC REMIC, Series 1367, Class KA 09/15/22 6.500 7,911
1,685 FHLMC REMIC, Series 1502, Class PXZ 04/15/23 7.000 1,767,557
706 FHLMC REMIC, Series 1503, Class PZ 05/15/23 7.000 736,436
606 FHLMC REMIC, Series 1534, Class Z 06/15/23 5.000 606,265
614 FHLMC REMIC, Series 1548, Class Z 07/15/23 7.000 641,982
903 FHLMC REMIC, Series 1562, Class Z 07/15/23 7.000 935,667
15 FHLMC REMIC, Series 1611, Class I 02/15/23 6.000 14,941
188 FHLMC REMIC, Series 1694, Class Z 03/15/24 6.500 189,662
1,825 FHLMC REMIC, Series 2061, Class Z 06/15/28 6.500 1,880,850
812 FHLMC REMIC, Series 2400, Class FQ 01/15/32 2.980++ 818,682
5,212 FHLMC REMIC, Series 2759, Class DZ 03/15/34 5.000 4,759,521
3,664 FHLMC REMIC, Series 2764, Class ZG 03/15/34 5.500 3,588,149
9,904 FHLMC REMIC, Series 2849, Class PZ 07/15/33 5.000 9,011,331
8,100 FHLMC REMIC, Series 2870, Class VZ 10/15/34 5.000 7,816,310
412 FHLMC REMIC, Series G23, Class KZ 11/25/23 6.500 435,425
3,560 FHLMC REMIC, Series T-54, Class 2A 02/25/43 6.500 3,710,138
12,173 FHLMC REMIC, Series T-58, Class 2A 09/25/43 6.500 12,725,600
447 FNMA REMIC, Series 1998-66, Class FG 12/25/28 2.718++ 448,015
77 FNMA REMIC, Series 2000-34, Class F 10/25/30 2.868++ 77,129
9,010 FNMA REMIC, Series 2002-78, Class Z 12/25/32 5.500 8,964,092
6,264 FNMA REMIC, Series 2002-80, Class A1 11/25/42 6.500 6,537,660
7,696 FNMA REMIC, Series 2003-64, Class AH 07/25/33 6.000 7,899,431
8,834 FNMA REMIC, Series 2004-W8, Class 2A 06/25/44 6.500 9,220,073
7,277 FNMA REMIC, Series 2004-T1, Class 1A1 01/25/44 6.000 7,453,921
3,400 FNMA REMIC, Series 2005-9, Class ZA 02/25/35 5.000 3,234,373
39 FNMA REMIC, Trust Series 1991-065, Class Z 06/25/21 6.500 40,924
44 FNMA REMIC, Trust Series 1992-129, Class L 07/25/22 6.000 45,258
91 FNMA REMIC, Trust Series 1992-040, Class ZC 07/25/22 7.000 96,167
119 FNMA REMIC, Trust Series 1993-037, Class PX 03/25/23 7.000 126,539
481 FNMA REMIC, Trust Series 1993-060, Class Z 05/25/23 7.000 514,643
</Table>
84
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - (CONCLUDED)
$ 700 FNMA REMIC, Trust Series 1993-065, Class ZZ 06/25/13 7.000% $ 735,415
121 FNMA REMIC, Trust Series 1993-070, Class Z 05/25/23 6.900 124,855
550 FNMA REMIC, Trust Series 1993-096, Class PZ 06/25/23 7.000 588,625
100 FNMA REMIC, Trust Series 1993-160, Class ZB 09/25/23 6.500 100,556
60 FNMA REMIC, Trust Series 1993-163, Class ZA 09/25/23 7.000 63,475
394 FNMA REMIC, Trust Series 1994-023, Class PX 08/25/23 6.000 410,202
4,000 FNMA REMIC, Trust Series 1998-M5, Class B 09/25/07 6.270 4,173,194
2,258 FNMA REMIC, Trust Series 1998-M7, Class Z 05/25/36 6.390 2,384,854
2,500 FNMA REMIC, Trust Series 1999-W4, Class A9 02/25/29 6.250 2,596,495
485 GNMA REMIC, Trust Series 2000-009, Class FG 02/16/30 3.007++ 488,815
568 GNMA REMIC, Trust Series 2002-031, Class FW 06/16/31 2.807++ 571,247
10,723 GNMA REMIC, Trust Series 2003-098, Class Z 11/20/33 6.000 10,838,488
1,119 Housing Security, Inc., Series 1992-8, Class B 06/25/24 3.745++ 1,118,603
252 Irwin Home Equity, Series 2002-1, Class 2A1 06/25/29 2.820++ 252,724
750 Keycorp Student Loan Trust, Series 1996-A,
Class A2 08/27/25 3.057++ 753,938
1,756 Lehman Brothers Mortgage Trust, Series 1991-2,
Class A3 01/20/17 8.395 1,952,741
780 Residential Asset Securities Corp.,
Series 2004-KS3, Class AI1 11/25/20 2.620++ 779,850
3,094 Residential Funding Mortgage Security I,
Series 2004-S2, Class A1 03/25/34 5.250 3,092,582
1,656 Small Business Administration, Series 1999-20K,
Class 1 11/01/19 7.060 1,803,596
2,062 Small Business Administration, Series 2000-20K,
Class 1 11/01/20 7.220 2,271,131
5,780 Small Business Administration, Series 2001-P10B,
Class 1 08/01/11 6.344 6,092,590
5,411 Small Business Administration, Series 2002-20K,
Class 1 11/01/22 5.080 5,554,613
2,768 Small Business Administration, Series 2003-20E,
Class 1 05/01/23 4.640 2,781,932
954 Small Business Administration, Series 2003-20I,
Class 1 09/01/23 5.130 981,216
2,653 Small Business Administration, Series 2003-20L,
Class 1 12/01/23 4.890 2,694,411
9,802 Small Business Administration, Series 2004-P10A,
Class 1 02/10/14 4.504 9,807,333
4,124 Structured Asset Mortgage Investments, Inc.,
Series 2002-AR3, Class A1 09/19/32 2.830++ 4,125,345
5,595 Structured Asset Securities Corp., Series 2001-SB1,
Class A2 08/25/31 3.375 5,287,956
307 Washington Mutual Mortgage Securities Corp.,
Series 2002-AR11, Class A1 10/25/32 5.136++ 310,920
110 Washington Mutual Mortgage Securities Corp.,
Series 2002-AR2, Class 1A1 07/25/32 6.307++ 110,146
955 Washington Mutual Mortgage Securities Corp.,
Series 2002-AR6, Class A 06/25/42 2.995++ 964,713
1,000 Washington Mutual Mortgage Securities Corp.,
Series 2005-AR1, Class A1A 01/25/45 2.800++ 999,122
1,200 Washington Mutual Mortgage Securities Corp.,
Series 2005-AR2, Class 2A1A 01/25/45 2.854++ 1,200,000
Total Collateralized Mortgage Obligations (cost - $229,160,380) 233,222,597
- ---------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 1.77%
733 Bear Stearns, Series 2004-HE9, Class 1A1 04/25/23 2.598++ 732,952
57 C-Bass Trust, Series 2000-CB4, Class A1A 02/25/30 2.850++ 57,384
1,200 Citibank Omni-S Master Trust, Series 2002-5,
Class A 11/17/09 2.860++ 1,200,702
944 Countrywide Home Loans, Series 2004-11, Class A1 09/25/21 2.608++ 944,655
207 Delta Funding Home Equity Loan Trust,
Series 1999-003, Class A1A 09/15/29 2.890++ 207,048
951 Mid-State Trust, Series 4, Class A 04/01/30 8.330 1,030,645
1,899 Morgan Stanley Capital I, Series 2004-HE9,
Class A3A 11/25/34 2.680++ 1,899,389
142 Morgan Stanley Capital I, Series 2004-NC4,
Class A2 04/25/34 2.660++ 142,368
1,030 Spirit Collateralized Bond Obligation,
Series 2003-1A, Class A +++* 06/03/09 3.008++ 1,030,350
455 Structured Asset Investment Loan Trust,
Series 2004-2, Class 3A1 03/25/34 2.640++ 455,183
Total Asset-Backed Securities (cost - $7,670,664) 7,700,676
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
85
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
STRIPPED MORTGAGE-BACKED SECURITIES^ - 0.00%
$ 59 FHLMC REMIC, Trust Series 1680, Class PE + 01/15/23 6.500% $ 1,284
44 FNMA REMIC, Trust Series 1993-40, Class P + 04/25/08 7.000 3,391
Total Stripped Mortgage-Backed Securities (cost - $5,466) 4,675
- ---------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - 7.85%
AIRLINE - 0.05%
500 United Airlines, Inc. (a)+ 11/27/12 10.360 235,000
AUTOMOBILES - 0.13%
500 Daimler Chrysler N.A. Holding 11/15/13 6.500 544,949
BANKING - 0.58%
700 Delphi Corp. 08/15/13 6.500 676,467
700 Republic NY Corp. 05/15/21 9.125 967,754
800 Riggs Capital Trust 12/31/26 8.625 872,000
2,516,221
DIVERSIFIED FINANCIALS - 0.10%
400 Goldman Sachs Group, Inc. 10/15/13 5.250 411,842
ELECTRIC UTILITIES - 0.47%
1,800 PSE&G Power LLC 04/01/14 5.000 1,801,977
229 Southern California Edison 02/15/07 8.000 247,738
2,049,715
ENERGY EQUIPMENT & SERVICES - 0.19%
800 Panhandle Eastern Pipeline 08/15/08 4.800 814,388
FINANCE-NONCAPTIVE DIVERSIFIED - 0.33%
1,420 Ford Motor Credit Corp. 03/15/05 7.500 1,427,154
FINANCIAL SERVICES - 2.81%
1,400 Devon Financing Corp. 09/30/31 7.875 1,816,966
3,300 General Motors Acceptance Corp. 10/20/05 3.920++ 3,314,580
3,200 General Motors Acceptance Corp. 03/20/07 3.189++ 3,147,731
4,000 Infrastructure Finance Corp. 03/26/09 2.120++ 3,920,000
12,199,277
HOTELS/GAMING - 0.54%
700 Cesars Entertainment, Inc. 09/01/09 7.500 777,000
1,400 MGM Mirage, Inc. 09/15/10 8.500 1,585,500
2,362,500
MEDIA - 0.81%
2,000 Cox Enterprises, Inc. (1) 02/15/07 8.000 2,134,762
1,300 Time Warner, Inc. 08/15/06 8.110 1,383,868
3,518,630
OIL REFINING - 0.23%
1,000 Enterprise Products Operating L.P. (1) 10/15/09 4.625 997,626
OIL SERVICES - 0.77%
3,000 Pemex Project Funding Master Trust 12/15/14 7.375 3,352,500
PAPER & PACKAGING - 0.21%
900 Packaging Corp. of America 08/01/13 5.750 931,765
</Table>
86
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONCLUDED)
TELECOMMUNICATION SERVICES - 0.63%
EUR 1,200 France Telecom 03/14/08 7.500% $ 1,753,678
1,000 Verizon North, Inc.* 01/01/21 5.634 993,970
2,747,648
Total Corporate Notes (cost - $33,336,576) 34,109,215
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GOVERNMENT OBLIGATIONS - 7.22%
1,224 Federal Republic of Brazil 04/15/06 3.063++ 1,228,529
200 Federal Republic of Brazil 03/12/08 11.500 233,700
371 Federal Republic of Brazil 04/15/09 3.125++ 366,605
700 Federal Republic of Brazil 06/29/09 7.720++ 840,000
1,235 Federal Republic of Brazil 04/15/12 3.125++ 1,180,456
457 Federal Republic of Brazil 04/15/14 8.000 467,620
EUR 2,700 Federal Republic of Germany 07/04/27 6.500 4,821,525
EUR 1,500 Federal Republic of Germany 01/04/28 5.625 2,433,181
1,500 Federal Republic of Panama 07/23/12 9.375 1,762,500
600 Federal Republic of Panama 09/30/27 8.875 666,000
2,250 Federal Republic of Peru 02/21/12 9.125 2,587,500
EUR 3,300 Government of Spain 01/31/37 4.200 4,416,269
JPY 484,000 Republic of Italy 03/27/08 3.800 5,196,210
2,000 Russian Federation 06/26/07 10.000 2,247,400
1,975 Russian Federation 03/31/30 5.000 2,073,355
500 United Mexican States 09/24/22 8.000 591,750
200 United Mexican States 08/15/31 8.300 242,700
Total International Government Obligations (cost - $29,910,696) 31,355,300
- ---------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - 2.78%
EDUCATION - 0.64%
600 Akron Ohio Income Tax, Revenue Community
Learning Centers, Series A 12/01/33 5.000 625,620
1,300 Clark County Nevada School District, Series C 06/15/13 5.375 1,477,281
650 Detroit City School District, School Building
& Site Improvement, Series A 05/01/32 5.000 677,593
2,780,494
TOBACCO - 1.10%
200 Golden State Tobacco Securitization Corp. 06/01/39 6.750 204,190
600 Golden State Tobacco Securitization Corp.,
Series 2003 A-1 06/01/33 6.250 603,048
3,100 Tobacco Settlement Funding Corp. 06/01/39 6.750 3,150,964
200 Tobacco Settlement Funding Corp., Rhode Island,
Series A 06/01/42 6.250 192,742
475 Tobacco Settlement Funding Corp., Series 2001-B 05/15/39 5.875 446,129
167 Tobacco Settlement Revenue Management Authority,
South Carolina Tobacco Settlement Revenue,
Series A 05/15/16 7.666 167,900
4,764,973
TRANSPORTATION - 0.22%
400 California Infrastructure & Economic
Development Revenue 07/01/36 5.000 419,920
500 Harris County Texas, Refunding Toll Road
Senior Lien 08/15/33 5.000 520,775
940,695
</Table>
87
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONCLUDED)
UTILITIES - 0.82%
$ 1,300 Energy Northwest Washington Electric Revenue 07/01/15 5.500% $ 1,496,976
500 Lower Colorado River Authority Revenue 05/15/28 5.000 522,015
1,500 New York City Municipal Water Finance Authority 06/15/34 5.000 1,557,030
3,576,021
Total Municipal Bonds and Notes (cost - $11,583,411) 12,062,183
- ---------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - 0.07%
BANKING-U.S. - 0.07%
300 Barclays U.S. Funding Corp. (cost - $300,000) 02/01/05 1.985 300,000
SHORT-TERM CORPORATE OBLIGATIONS - 1.56%
FINANCE-NONCAPTIVE DIVERSIFIED - 1.56%
2,900 General Electric Capital Corp. 02/04/05 to 03/11/05 2.040 to 2.420 2,893,069
3,900 General Motors Acceptance Corp. 03/21/05 2.362 3,887,717
Total Short-Term Corporate Obligations (cost - $6,780,787) 6,780,786
- ---------------------------------------------------------------------------------------------------------------------------
SHORT-TERM GLOBAL DEBT SECURITIES - 0.47%
EUR 1,100 Federal Republic of Germany 02/18/05 4.250 1,435,131
JPY 62,000 Republic of Italy 06/08/05 3.750 606,987
Total Short-Term Global Debt Securities (cost - $2,007,289) 2,042,118
- ---------------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AND AGENCY OBLIGATIONS@ - 10.06%
2,600 Federal Home Loan Mortgage Corp. 03/08/05 2.183 2,594,135
38,900 Federal National Mortgage Association 03/02/05 to 06/01/05 2.248 to 2.645 38,715,110
2,365 U.S. Treasury Bills++++ 03/03/05 to 03/17/05 2.172 to 2.205 2,359,850
Total Short-Term U.S. Government and Agency Obligations
(cost - $43,669,095) 43,669,095
- ---------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.82%
7,884 Repurchase Agreement dated 01/31/05 with
State Street Bank & Trust Co., collateralized
by $7,780,000 U.S. Treasury Notes, 5.750% due
11/15/05; (value - $8,042,575); proceeds:
$7,884,499 (cost - $7,884,000) 02/01/05 2.280 7,884,000
- ---------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $431,242,877) - 101.05% 438,760,818
Liabilities in excess of other assets - (1.05)% (4,550,807)
Net Assets - 100.00% $ 434,210,011
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
+ Illiquid securities representing 0.06% of net assets as of January 31,
2005.
^ Interest Only Security. This security entitles the holder to receive
interest payments from an underlying pool of mortgages. The risk
associated with this security is related to the speed of the principal
paydowns. High prepayments would result in a smaller amount of interest
being received and cause the yield to decrease. Low prepayments would
result in a greater amount of interest being received and cause the yield
to increase.
+++ Security is being fair valued by a Valuation Committee under the
direction of the board of trustees.
++ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2005.
++++ Entire or partial amount pledged as collateral for futures transactions.
@ Interest rates shown are the discount rates at date of purchase.
# In U.S. Dollars unless otherwise indicated.
(1) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 1.95% of net assets as of
January 31, 2005, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
(2) Principal amount for accrual purposes is adjusted based on changes in the
Consumer Price Index.
(a) Bond interest in default.
ARM Adjustable Rate Mortgage - The interest rates shown are the current rates
as of January 31, 2005.
COFI Cost of Funds Index
EUR Euro Dollars
JPY Japanese Yen
88
<Page>
REMIC Real Estate Mortgage Investment Conduit
TBA (To Be Assigned) Security is purchased on a forward commitment basis with
an approximate principal amount (generally +/- 1.0%) and no definite
maturity date. The actual principal amount and maturity date will be
determined upon settlement when the specific mortgage pools are assigned.
* Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 0.47% of net assets as of
January 31, 2005, are considered illiquid and restricted (see table below
for more information).
<Table>
<Caption>
ACQUISITION COST MARKET VALUE
AS A AS A
PERCENTAGE OF PERCENTAGE OF
RESTRICTED ACQUISITION ACQUISITION PORTFOLIO'S NET PORTFOLIO'S NET
SECURITIES DATE COST ASSETS MARKET VALUE ASSETS
- ----------------------------------------------------------------------------------------------------------------------
Spirit Collateralized
Bond Obligation
3.008%, 06/03/09 12/16/04 $ 1,030,350 0.24% $ 1,030,350 0.24%
Verizon North, Inc.
5.634%, 01/01/21 04/25/03 1,000,000 0.23 993,970 0.23
$ 2,030,350 0.47% $ 2,024,320 0.47%
- ----------------------------------------------------------------------------------------------------------------------
</Table>
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- -----------------------------------------------------------
United States 92.0%
Germany 2.0
Italy 1.3
Spain 1.0
Brazil 1.0
Russia 1.0
Peru 0.6
Panama 0.5
France 0.4
Mexico 0.2
Total 100.0%
- -----------------------------------------------------------
</Table>
<Table>
<Caption>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION
CONTRACTS EXCHANGE FOR DATES (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------
CONTRACTS TO RECEIVE
FUTURES CONTRACTS
41 U.S. Treasury Bond 20 Year Futures $ 4,572,461 March 2005 $ (136,133)
CONTRACTS TO DELIVER
105 90 Day Euro Dollar Futures 25,505,775 March 2005 (38,025)
380 90 Day Euro Dollar Futures 92,302,563 June 2005 (409,062)
105 90 Day Euro Dollar Futures 25,390,263 September 2005 (61,638)
31 90 Day Euro Dollar Futures 9,731,749 December 2005 (2,526)
3 Euro Bond 10 Year Futures 466,932 March 2005 2,073
24 Japan Bond 10 Year Futures 32,129,784 March 2005 255,183
1,278 U.S. Treasury Note 10 Year Futures 142,988,375 March 2005 487,094
233,099
$ 96,966
- -----------------------------------------------------------------------------------------------------
</Table>
89
<Page>
FORWARD FOREIGN CURRENCY CONTRACTS
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN MATURITY APPRECIATION
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
- ---------------------------------------------------------------------------------------------
Euro Dollar 3,304,000 USD 4,296,968 02/10/05 $ (15,925)
Euro Dollar 3,073,000 USD 4,068,056 02/10/05 56,701
Euro Dollar 252,000 USD 334,734 02/10/05 5,785
Euro Dollar 1,836,000 USD 2,404,514 02/10/05 7,882
Euro Dollar 576,000 USD 747,237 02/10/05 (4,647)
Euro Dollar 3,778,000 USD 4,900,006 02/17/05 (32,034)
Japanese Yen 160,744,000 USD 1,571,300 03/10/05 15,951
Swedish Krona 2,650,338 USD 379,993 02/01/05 237
Swedish Krona 4,661,000 USD 680,205 03/09/05 11,979
United States Dollar 380,160 SEK 2,650,000 03/09/05 (242)
$ 45,687
- ---------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
SEK Swedish Krona
USD U.S. Dollars
See accompanying notes to financial statements
90
<Page>
UBS PACE MUNICIPAL FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - 98.48%
ALABAMA - 0.57%
$ 20 Birmingham Medical Clinic Board Revenue
Baptist Medical Centers (Escrowed to
Maturity) 07/01/05 7.300% $ 20,431
1,500 Montgomery Special Care Facilities Financing
Authority Revenue Capital Appreciation
Refunding Series B-2 (FSA Insured) 11/15/10 5.000 1,435,905
1,456,336
- --------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.25%
970 Alaska Housing Finance Corp. AMT Mortgage
Series A-2* 12/01/10 5.650 1,013,407
900 Alaska Student Loan Corp. Revenue Series A
(AMBAC Insured)* 07/01/06 5.350 934,641
1,155 Alaska Student Loan Corp. Revenue Series A
(AMBAC Insured)* 07/01/09 5.550 1,265,037
3,213,085
- --------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.95%
35 Pima County Hospital Revenue St. Joseph
Hospital Project (Escrowed to Maturity) 01/01/09 7.500 38,622
1,800 San Manuel Entertainment Series 04-C** 12/01/16 4.500 1,818,378
570 Show Low Industrial Development Authority
Revenue Navapache Regional Medical Center
Series A (ACA Insured) 12/01/06 5.125 591,706
2,448,706
- --------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.01%
20 Springdale Residential Housing Mortgage
Series A (FNMA Collateralized) 09/01/11 7.650 20,736
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.98%
75 California Pollution Control Financing Kaiser
Steel Corp. Project (Escrowed to Maturity) 10/01/08 7.250 81,371
1,465 California State 10/01/08 6.100 1,632,830
2,000 California State 02/01/10 5.000 2,177,760
1,000 California State 04/01/10 5.000 1,090,770
2,000 California State 10/01/10 5.250 2,217,960
1,000 California State 10/01/11 5.000 1,101,260
1,000 California State 02/01/12 5.000 1,101,540
2,000 California State 02/01/13 5.000 2,211,140
3,000 California State (FGIC Insured) 10/01/11 5.000 3,342,720
2,550 California State (MBIA Insured) 10/01/12 5.000 2,851,486
1,000 California State Department Water Resources
Power Supply Revenue Series A 05/01/10 5.500 1,112,180
3,000 California State Economic Recovery Series A 07/01/08 5.000 3,228,780
4,000 California State Economic Recovery Series B
(Mandatory Put 07/01/08 @ $100) 07/01/23 3.500@ 4,094,520
3,000 California State Economic Recovery Series B
(Mandatory Put 07/01/08 @ $100) 07/01/23 5.000 3,216,600
1,000 California Statewide Communities Development
Authority Revenue Kaiser Permanent Series D
(Mandatory Put 03/01/07 @ $100) 11/01/36 4.350 1,027,800
2,000 California Statewide Communities Development
Authority Revenue Kaiser Permanent Series H
(Mandatory Put 05/01/08 @ $100) 04/01/34 2.625@ 1,970,920
5,070 Golden State Tobacco Securitization Corp.
Tobacco Settlement Revenue Series A-1 06/01/21 5.000 5,124,756
85 Los Angeles Multi-Family Revenue Housing
Earthquake Rehabilitation Project Series C
(FNMA Collateralized)* 07/01/07 5.150 88,618
490 Sacramento Utility District Electric Revenue,
White Rock Project (Escrowed to Maturity) 03/01/10 6.750 539,132
230 Sacramento Utility District Electric Revenue,
White Rock Project (Escrowed to Maturity) 05/01/10 6.800 254,104
38,466,247
- --------------------------------------------------------------------------------------------------------------------------
</Table>
91
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
DISTRICT OF COLUMBIA - 0.74%
$ 275 District of Columbia Housing Finance
Authority Certificates of Participation
(Asset Guaranty Insured) 06/01/08 4.850% $ 275,363
515 District of Columbia Series A (MBIA Insured)
(Escrowed to Maturity) 06/01/08 5.250 557,771
985 District of Columbia Unrefunded Balance 2001
Series A (MBIA Insured) 06/01/08 5.250 1,063,534
1,896,668
- --------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.30%
500 Escambia County Health Facilities Authority
Revenue Ascension Health Credit Series A 11/15/11 5.250 553,330
3,505 Hialeah Housing Authority Municipal Housing
Revenue (Escrowed to Maturity) 11/01/21 9.500 4,023,319
2,000 JEA St. Johns River Power Park Systems
Revenue Refunding Issue Series 2-17 10/01/09 5.250 2,206,440
2,625 Lakeland Electric & Water Revenue Refunding
First Lien Series B (FSA Insured) 10/01/07 6.550 2,893,643
1,915 Leon County Educational Facilities Authority
Certificates of Participation 09/01/14 9.000 2,564,147
1,260 North Miami Educational Facilities Revenue
Johnston & Wales University Project
Series A (XL Capital Insured) 04/01/09 5.000 1,366,709
13,607,588
- --------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.29%
2,000 Georgia State Series D 10/01/10 6.000 2,312,140
1,250 Henry County School District Series A 08/01/11 6.450 1,432,175
2,000 Municipal Electric Authority Project One
Subseries B (Mandatory Put 01/01/09 @ $100)
(AMBAC Insured) 01/01/26 5.000 2,146,720
5,891,035
- --------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.41%
1,000 Hawaii State Department Budget & Finance
Special Purpose Revenue Hawaiian Electric
Co., Inc. Series A (MBIA Insured)* 05/01/26 6.200 1,051,800
- --------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.60%
975 Idaho Housing & Finance Association
Single-Family Mortgage Series G-2, Class III* 07/01/19 5.950 1,037,078
500 Idaho Housing & Finance Association
Single-Family Mortgage Subseries D-3* 07/01/13 5.150 508,500
1,545,578
- --------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.57%
200 Belleville St. Clair County (Escrowed to
Maturity) (MGIC Insured) 11/01/09 7.250 224,426
2,000 Chicago School Finance Authority Refunding
Series A (FGIC Insured) 06/01/09 6.250 2,252,660
4,340 Cook County Community Consolidated School
District Number 15 Palatine Capital
Appreciation (FGIC Insured) 12/01/15 5.440~ 2,741,968
4,890 Cook County Community Consolidated School
District Number 15 Palatine Capital
Appreciation (FGIC Insured) 12/01/16 5.510~ 2,935,614
1,000 Granite City Madison County Disposal
Revenue Waste Management, Inc. Project
(Mandatory Put 05/01/05 @ $100)* 05/01/27 5.000 1,004,690
350 Greater Peoria Airport Authority
(AMBAC Insured)* 12/01/07 6.700 354,830
1,570 Hodgkins Environmental Improvement Revenue
Metropolitan Biosolids Management Project* 11/01/05 5.500 1,580,786
1,000 Illinois Development Finance Authority
Revenue DePaul University Series C 10/01/13 5.500 1,113,930
1,625 Illinois Development Finance Authority
Revenue Refunding Community Rehabilitation
Providers Series A 07/01/09 5.900 1,704,934
660 Illinois Educational Facilities Authority
Revenue Evangelical Series A
(Escrowed to Maturity) 04/15/17 6.750 812,757
700 Illinois Finance Authority Student Housing
Revenue MJH Education Assistance IV Senior
Series A 06/01/08 5.000 735,882
810 Illinois Finance Authority Student Housing
Revenue MJH Education Assistance IV Senior
Series A 06/01/10 5.000 856,081
- --------------------------------------------------------------------------------------------------------------------------
</Table>
92
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
ILLINOIS - (CONCLUDED)
$ 5,990 Illinois Health Facilities Authority
Revenue Advocate Network Health Care 11/15/10 6.000% $ 6,775,888
240 Illinois Health Facilities Authority Revenue
Ravenswood Hospital Medical Center
(Escrowed to Maturity) 08/01/06 7.250 250,265
1,000 Lake County Illinois Forest Preservation
District 12/01/07 7.200~ 927,010
285 St. Clair County Certificates of
Participation Series A (FSA Insured) 10/01/08 5.000 305,366
24,577,087
- --------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.70%
1,000 Indiana Health Facility Financing Authority
Revenue Ascension Health Series F 11/15/07 5.500 1,069,270
5,000 Indiana Health Facility Financing Authority
Revenue Ascension Health Subordinated
Credit Series A 04/01/10 5.000 5,390,650
1,345 Indiana Health Facility Financing Authority
Revenue Health Systems Sisters of
St. Francis 11/01/08 5.500 1,453,582
1,500 Indianapolis Airport Authority Revenue
Refunding Special Facilities Federal
Express Corp. Project (Federal Express
Co. Insured)* 01/15/17 5.100 1,579,215
9,492,717
- --------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.17%
1,000 Burlington Pollution Control Revenue
Refunding Kansas Gas & Electric Co.
Project B (Mandatory Put 06/01/06 @
$100) (MBIA Insured) 06/01/31 2.650@ 1,002,710
1,710 Kansas State Development Finance Authority
Revenue Water Pollution Control Revolving
Fund II 05/01/13 5.500 1,969,407
25 Wichita Hospital Revenue St. Francis Hospital
& Nursing Series A (Escrowed to Maturity) 10/01/07 6.750 26,536
2,998,653
- --------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.14%
215 East Baton Rouge Parish Womans Hospital
Foundation (Escrowed to Maturity) 10/01/08 7.200 234,786
15 East Baton Rouge Single-Family Mortgage
Series C (FNMA/GNMA Collateralized) 04/01/32 7.000 15,018
100 Jefferson Parish Home Mortgage Authority
Single-Family Housing Revenue Refunding
Series D-1 (Mandatory Put 06/01/10 @ $100)
(FNMA/GNMA Collateralized)* 06/01/10 5.600 101,005
350,809
- --------------------------------------------------------------------------------------------------------------------------
MAINE - 0.18%
450 Maine State Housing Authority Mortgage
Purchase Series D-1 11/15/16 5.050 456,840
- --------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.40%
1,000 Maryland State Community Development
Administration Department Housing &
Community Development AMT Single Family
Program Third Series* 04/01/07 4.400 1,032,100
- --------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.69%
2,000 Massachusetts Bay Transportation Authority
Sales Tax Revenue Series A 07/01/10 5.000 2,198,560
3,100 Massachusetts State Consolidated Loan
Series B (Pre-refunded with U.S.
Government Securities to 03/01/12 @ $100)
(FSA Insured) 03/01/16 5.500 3,506,038
2,000 Massachusetts State Development Finance
Agency Solid Waste Disposal Revenue Waste
Management Income Project (XL Capital
Insured)* 06/01/14 5.450 2,145,260
1,000 Massachusetts State Health & Educational
Facilities Authority Revenue Caritas
Christi Obligation Series B 07/01/05 5.500 1,010,860
5,000 Massachusetts State Refunding Series A 11/01/10 6.000 5,745,550
14,606,268
- --------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.72%
1,000 Michigan State Strategic Fund Solid Waste
Disposal Revenue Refunding Waste Management
Income Project (Mandatory Put 12/01/05
@ $100)* 12/01/12 4.200 1,008,290
- --------------------------------------------------------------------------------------------------------------------------
</Table>
93
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
MICHIGAN - (CONCLUDED)
$ 800 Michigan State Strategic Fund Waste Management
Income Project (Mandatory Put 08/01/07 @
$100)* 08/01/27 3.750%@ $ 803,224
40 Michigan State Strategic Limited Obligation
(Escrowed to Maturity) 08/15/05 7.875 40,809
1,852,323
- --------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.03%
26 Eden Prairie Multi-Family Housing (GNMA
Collateralized) 01/20/06 5.500 26,092
40 Moorhead Residential Mortgage (Escrowed to
Maturity) (FHA/VA Insured) 08/01/11 7.100 45,782
71,874
- --------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.29%
3,000 St. Louis Airport Revenue Airport Development
Program Series A (MBIA Insured) 07/01/09 5.500 3,297,570
10 St. Louis County Single-Family Housing (AMBAC
Insured) 10/01/16 9.250 10,093
3,307,663
- --------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.05%
135 Nebraska Investment Finance Authority
Single-Family Housing Revenue Series A
(FNMA/GNMA Collateralized)* 03/01/21 5.200 135,300
- --------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.77%
2,000 Clark County Pollution Control Revenue
Refunding Series C (Mandatory Put
03/02/09 @ $100)* 06/01/31 3.250@ 1,979,040
- --------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.09%
1,000 New Jersey Economic Development Authority
Revenue School Facilities Construction
Series I 09/01/14 5.000 1,100,070
1,500 New Jersey State Transportation Trust Fund
Transportation System Series A (MBIA Insured) 12/15/14 5.250 1,708,770
2,808,840
- --------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.89%
2,000 New Mexico State Highway Commission Revenue
Senior Subordinated Lien Tax Series A 06/15/10 5.250 2,214,760
2,500 New Mexico State Severance Tax Refunding
Series A 07/01/08 5.000 2,634,800
4,849,560
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.12%
1,000 Nassau Health Care Corp. Health Systems Revenue
(FSA Insured) 08/01/11 6.000 1,152,990
1,000 New York City Municipal Water Finance Authority
Water & Sewer Systems Revenue Series D 06/15/10 5.500 1,119,150
1,500 New York City Municipal Water Finance Authority
Water & Sewer Systems Revenue Series D 06/15/11 5.000 1,652,295
1,000 New York City Refunding Series B 08/01/11 5.500 1,118,270
2,000 New York City Series A 11/01/08 5.250 2,165,040
1,500 New York City Series C 08/01/07 5.000 1,583,310
750 New York City Series C 08/01/09 5.250 818,235
3,000 New York City Series C 08/01/11 5.250 3,315,150
615 New York City Series E (Pre-refunded with U.S.
Government Securities to 08/01/06 @ $101.50) 08/01/16 6.000 657,183
2,500 New York City Series G 08/01/07 5.250 2,653,875
2,000 New York City Transitional Finance Authority
Revenue Future Tax Secured Series A 11/01/26 5.500@ 2,241,320
1,330 New York City Transitional Finance Authority
Revenue Future Tax Secured Series C 02/01/09 5.500 1,462,668
385 New York City Unrefunded Balance Series E 08/01/16 6.000 408,808
1,500 New York State Dorm Authority Lease Revenue,
Series B (Mandatory Put 07/01/13 @ $100)
(XL Capital Insured) 07/01/32 5.250 1,660,500
</Table>
94
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
NEW YORK - (CONCLUDED)
$ 2,000 New York State Dorm Authority Revenue Series B
(Mandatory Put 05/15/12 @ $100) 11/15/23 5.250% $ 2,206,560
3,000 New York State Housing Finance Agency Service
Contract Revenue Refunding Series K 03/15/08 5.000 3,199,260
1,500 Tobacco Settlement Financing Corp. Series C-1 06/01/09 5.500 1,516,485
2,000 Triborough Bridge & Tunnel Authority Refunding
Series B 11/15/09 5.000 2,182,240
31,113,339
- --------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.14%
2,650 North Carolina Municipal Power Agency No. 1
Catawba Electric Revenue Series A (MBIA Insured) 01/01/09 5.750 2,938,028
- --------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.04%
100 North Dakota State Housing Finance Agency Revenue
Housing Finance Home Mortgage Series D* 07/01/16 6.300 104,022
- --------------------------------------------------------------------------------------------------------------------------
OHIO - 1.10%
1,145 Butler County Transportation Improvement
District Series A (FSA Insured) 04/01/11 6.000 1,276,217
1,530 Ohio Housing Finance Agency Mortgage Revenue
Residential Series B-2 (GNMA Collateralized)* 09/01/18 5.350 1,546,142
2,822,359
- --------------------------------------------------------------------------------------------------------------------------
OREGON - 0.65%
1,500 Oregon State Department Transportation Highway
Usertax Revenue Refunding Series B 11/15/13 5.000 1,676,115
- --------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.43%
400 Blair County Hospital Authority Revenue Hospital
Altoona Hospital Project A (AMBAC Insured) 07/01/06 5.375 416,012
30 Chester County Hospital Authority Revenue (Escrowed
to Maturity) 07/01/09 7.500 33,111
55 Lancaster Sewer Authority (Escrowed to Maturity) 04/01/12 6.000 60,551
3,000 Pennsylvania State Higher Educational Facilities
Authority Revenue Waynesburg Series J-4
(Mandatory Put 05/01/09 @ $100) (PNC Bank
N.A. Insured) 05/01/32 3.300@ 3,022,920
125 Philadelphia Hospital & Higher Education Health
Systems Jefferson Health Systems A (MBIA Insured) 05/15/07 5.250 132,284
3,664,878
- --------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 4.21%
1,000 Puerto Rico Commonwealth Refunding Series A
(Mandatory Put 07/01/12 @ $100) 07/01/30 5.000 1,076,890
2,000 Puerto Rico Commonwealth Refunding Series C
(Mandatory Put 07/01/08 @ $100) 07/01/13 6.000 2,192,040
1,000 Puerto Rico Electric Power Authority Revenue
Series QQ (XL Capital Insured) 07/01/17 5.500 1,164,870
2,000 Puerto Rico Public Buildings Authority Revenue
Guaranteed Refunding Government Facilities
Series J (Mandatory Put 07/01/12 @ $100)
(Commonwealth/GTD Insured) 07/01/28 5.000 2,153,780
3,750 Puerto Rico Public Finance Corp. Refunding
Commonwealth Appropriations Series A (Mandatory
Put 02/01/12 @ $100) (Government Development
Bank For Puerto Rico Insured) 08/01/27 5.750 4,217,812
10,805,392
- --------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.93%
2,000 Richland County Environmental Improvement
Revenue Refunding International Paper Co. Projects
Series A 10/01/07 4.250 2,059,700
5,070 South Carolina Transportation Infrastructure
Bank Revenue Series A (MBIA Insured) 10/01/09 6.000 5,753,537
2,000 South Carolina Transportation Infrastructure
Bank Revenue Series B (AMBAC Insured) 10/01/15 5.250 2,285,300
10,098,537
- --------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.33%
3,030 South Dakota Health & Educational Facilities
Authority Revenue Refunding Prairie Lakes Healthcare
(ACA/CBI Insured) 04/01/13 5.450 3,205,740
205 South Dakota State Health & Educational Revenue
St. Lukes Hospital Project (Escrowed to Maturity) 10/01/07 6.800 217,610
3,423,350
- --------------------------------------------------------------------------------------------------------------------------
</Table>
95
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONCLUDED)
TENNESSEE - 5.20%
$ 3,000 Metropolitan Government Nashville & Davidson
County Health & Educational Facilities Board
Revenue Vanderbilt University Series B-2
(Mandatory Put 04/01/09 @ $100) (MBIA Insured) 10/01/44 5.000%@ $ 3,243,990
8,300 Metropolitan Government Nashville & Davidson
County Water Sewer Revenue Cab Converter
Refunding (FGIC/TCRs) 01/01/12 7.700 10,123,759
13,367,749
- --------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.28%
3,400 Austin Texas Utility Systems Revenue Refunding
(AMBAC Insured) 11/15/09 6.750 3,963,788
1,000 Canutillo Independent School District Refunding
(PSF/GTD Insured) 08/15/10 5.000 1,098,570
1,000 Dallas Texas Refunding Series A 02/15/10 5.000 1,094,730
2,700 El Paso Texas Independent School District
Refunding 08/15/09 5.375 2,981,043
2,480 Fort Bend Independent School District
(PSF/GTD Insured) 08/15/07 7.000 2,743,153
160 Harlington Housing Finance Corp. Single-Family
Mortgage Revenue Series A (FNMA/GNMA
Collateralized)* 09/01/22 5.250 163,198
5,000 Harris County Refunding Tax & Subordinated
Lien Series B (Mandatory Put 08/15/12
@ $100) (FSA Insured) 08/15/32 5.000 5,481,000
1,500 Harris County Refunding Toll Road B-2
(Mandatory Put 08/15/09 @ $100) (FGIC
Insured) 08/15/21 5.000@ 1,632,645
185 Houston Texas Airport Systems Revenue
(Escrowed to Maturity) 07/01/10 7.600 212,558
2,000 Katy Independent School District School
Building Series A (PSF/GTD Insured) 02/15/14 5.000 2,201,980
2,000 North East Independent School District
(PSF/GTD Insured) 08/01/14 5.000 2,229,900
25 Texas Municipal Power Agency Revenue
(Escrowed to Maturity) (MBIA Insured) 09/01/13 6.100~ 17,971
23,820,536
- --------------------------------------------------------------------------------------------------------------------------
UTAH - 0.63%
10 Utah State Housing Finance Agency Single-Family
Mortgage Senior Issue Series D-2 (FHA/VA
Insured)* 01/01/11 6.450 10,091
1,505 Utah State Housing Finance Agency Single-Family
Mortgage Series G-3, Class III* 07/01/15 5.700 1,574,682
40 Utah State Housing Finance Agency Single-Family
Mortgage Subseries A-1 (AMBAC Insured) 07/01/08 5.900 41,586
5 Utah State Housing Finance Agency Single-Family
Mortgage Subseries G (AMBAC Insured) 07/01/07 5.650 5,044
1,631,403
- --------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.39%
1,000 Amelia County Industrial Development Authority
Solid Waste Disposal Revenue Refunding Waste
Management Project (Mandatory Put 04/01/05 @ $100)* 04/01/27 4.900@ 1,003,090
- --------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.24%
20 Washington State Series 93-A (Pre-refunded
with U.S. Government Securities to
10/01/08 @ $100) 10/01/12 5.750 22,832
6,000 Washington State Public Power Supply Systems
Nuclear Project Number 1 Revenue Refunding
Series A 07/01/08 6.000 6,625,440
1,480 Washington State Unrefunded Balance Series 93-A
(FSA Insured) 10/01/12 5.750 1,671,571
8,319,843
- --------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds and Notes (cost - $246,032,938) 252,905,494
- --------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL NOTES++ - 3.50%
IDAHO - 0.27%
700 Idaho Health Facilities Authority Revenue
St. Luke's Medical Center (FSA Insured) 02/01/05 1.820 700,000
INDIANA - 0.82%
2,100 Indiana Health Facility Financing Authority
Hospital Revenue Clarian Health Obligation
Series B 02/01/05 1.870 2,100,000
- --------------------------------------------------------------------------------------------------------------------------
</Table>
96
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL NOTES++- (CONCLUDED)
KANSAS - 1.56%
$ 500 Kansas State Department Transportation Highway
Revenue Series B-1 02/01/05 1.820% $ 500,000
3,500 Kansas State Department Transportation Highway
Revenue Series B-2 02/01/05 1.820 3,500,000
4,000,000
- --------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.58%
1,500 University of North Carolina Hospital Chapel
Hill Revenue Series A (Landesbank
Hessen-Thuringen Insured) 02/01/05 1.820 1,500,000
- --------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.27%
700 Grand Forks Hospital Facilities Revenue
United Hospital Obligation Group Project 02/01/05 1.870 700,000
Total Short-Term Municipal Notes (cost - $9,000,000) 9,000,000
- --------------------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- --------------------------------------------------------------------------------------------------------------------------
TAX-FREE MONEY MARKET FUND - 0.03%
69 Seven Seas Money Market Fund (cost - $69,193) 1.270+ 69,193
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $255,102,131) - 102.01% 261,974,687
Liabilities in excess of other assets - (2.01)% (5,168,102)
Net Assets - 100.00% $ 256,806,585
- --------------------------------------------------------------------------------------------------------------------------
</Table>
~ Zero coupon bond; interest rate represents annualized yield at date of
purchase.
@ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2005.
* Security subject to Alternative Minimum Tax.
** Security exempt from registration under Rule 144A of the Securities Act
of 1933. This security, which represents 0.71% of net assets as of
January 31, 2005, is considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
+ Interest rate shown reflects yield at January 31, 2005.
++ Variable rate demand notes are payable on demand. The maturity dates
shown are the next interest rate reset dates. The interest rates shown
are the current rates as of January 31, 2005.
ACA American Capital Access
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CBI Certificates of Bond Insurance
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GTD Guaranteed
MBIA Municipal Bond Investors Assurance
MGIC Mortgage Guarantee Insurance Corporation
PSF Permanent School Fund
TCRs Transferable Custodial Receipts
VA Veterans Association
See accompanying notes to financial statements
97
<Page>
UBS PACE GLOBAL FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - 87.20%
AUSTRALIA - 4.81%
EUR 450 Australia & New Zealand Banking Group Ltd. 02/05/15 4.450% $ 617,196
9,110 Government of Australia 05/15/13 6.500 7,578,752
15,217 Government of Australia 04/15/15 6.250 12,563,872
20,759,820
- --------------------------------------------------------------------------------------------------------------------------
BELGIUM - 1.08%
250 Kingdom of Belgium 03/28/15 8.000 448,681
2,640 Kingdom of Belgium 03/28/28 5.500 4,208,983
4,657,664
- --------------------------------------------------------------------------------------------------------------------------
CANADA - 0.97%
4,550 Government of Canada 06/01/29 5.750 4,195,681
- --------------------------------------------------------------------------------------------------------------------------
CHANNEL ISLANDS - 0.35%
EUR 430 Credit Suisse Group Capital V 11/07/11 5.437+ 663,159
EUR 550 Credit Suisse Group Finance 06/07/13 6.375 851,597
1,514,756
- --------------------------------------------------------------------------------------------------------------------------
DENMARK - 2.78%
920 Danske Bank A/S 11/12/12 5.125+ 1,295,687
1 Kingdom of Denmark 11/15/07 7.000 98
1 Kingdom of Denmark 11/15/09 6.000 99
3,110 Kingdom of Denmark 11/15/11 6.000 634,942
51,620 Kingdom of Denmark 11/15/13 5.000 10,052,540
11,983,366
- --------------------------------------------------------------------------------------------------------------------------
FRANCE - 4.94%
1,500 BNP Paribas 01/23/14 5.250+ 2,111,956
USD 1,290 France Telecom 03/01/31 9.250+ 1,793,429
110 France Telecom 01/28/33 8.125 212,720
200 Republic of France 04/25/09 4.000 272,544
7,093 Republic of France 07/25/09 3.000 10,119,576
4,060 Republic of France 10/25/32 5.750 6,794,595
21,304,820
- --------------------------------------------------------------------------------------------------------------------------
GERMANY - 3.54%
350 Allianz AG 01/15/14 5.500+ 499,163
655 Continental AG 12/05/08 6.875 968,232
3,151 Federal Republic of Germany 02/18/05 4.250 4,110,997
850 Federal Republic of Germany 02/16/07 4.000 1,142,178
1,690 Federal Republic of Germany 01/04/08 5.250 2,362,673
900 Federal Republic of Germany 02/15/08 4.250 1,226,946
660 Federal Republic of Germany 07/04/08 4.125 899,531
900 Federal Republic of Germany 01/04/11 5.250 1,308,369
1,727 Federal Republic of Germany 01/04/31 5.500 2,781,753
15,299,842
- --------------------------------------------------------------------------------------------------------------------------
ICELAND - 1.53%
60,000 Housing Finance Fund Series 2 04/15/34 3.750 1,001,259
</Table>
98
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - (CONTINUED)
ICELAND - (CONCLUDED)
331,700 Housing Finance Fund Series 3 06/15/44 3.750% $ 5,590,696
6,591,955
- --------------------------------------------------------------------------------------------------------------------------
IRELAND - 1.26%
140 Allied Irish Banks PLC 02/28/11 7.500+ 220,053
GBP 900 European Loan Conduit 11/01/07 5.300+ 1,699,356
2,500 GE Capital Euro Funding 10/29/13 4.625 3,501,368
5,420,777
- --------------------------------------------------------------------------------------------------------------------------
ITALY - 2.02%
917 Argo Mortgage SRL 10/28/36 2.403+ 1,200,221
1,600 Banca Intesa SpA Euro MTN 05/08/14 5.850+ 2,299,499
JPY 111,100 Republic of Italy 03/20/09 0.650 1,086,107
580 Sanpaolo IMI SpA 04/06/10 6.375 863,896
1,350 Siena Mortgages, Series 2003-4 Class A2 12/16/38 2.405+ 1,769,119
1,000 UniCredito Italiano SpA 02/28/12 6.100 1,499,215
8,718,057
- --------------------------------------------------------------------------------------------------------------------------
JAPAN - 11.22%
77,000 Development Bank of Japan (2) 09/20/22 1.700 724,339
1,073,000 Government of Japan 06/20/06 0.400 10,421,474
905,800 Government of Japan 09/20/06 0.500 8,816,821
1,202,400 Government of Japan 06/20/08 1.800 12,216,340
110,100 Government of Japan 12/21/20 2.500 1,182,156
633,000 Government of Japan 09/20/24 2.100 6,279,760
310,000 Japan Finance Corp. for Municipal Entities 02/21/12 1.550 3,118,746
570,000 Japan Government Bond 06/20/11 1.200 5,664,165
48,423,801
- --------------------------------------------------------------------------------------------------------------------------
KOREA - 0.11%
USD 500 Industrial Bank of Korea (1) 05/19/14 4.000+ 489,049
- --------------------------------------------------------------------------------------------------------------------------
LUXEMBOURG - 0.48%
450 Sogerim SA 04/20/06 6.125 612,569
USD 70 Telecom Italia Capital (1) 01/15/10 4.000 68,352
1,000 Tyco International Group SA 11/19/08 5.500 1,407,834
2,088,755
- --------------------------------------------------------------------------------------------------------------------------
MALAYSIA - 0.07%
EUR 200 Petronas Capital Ltd. 05/22/09 6.375 292,853
- --------------------------------------------------------------------------------------------------------------------------
MEXICO - 0.14%
USD 500 United Mexican States 02/17/09 10.375 607,500
- --------------------------------------------------------------------------------------------------------------------------
NETHERLANDS - 4.01%
1,200 BMW Finance NV 08/06/18 5.000 1,689,261
500 Deutsche Telekom International Finance BV 07/06/05 6.625 663,433
420 EADS Finance BV 03/03/10 4.625 580,448
1 Government of the Netherlands 07/15/08 5.250 2,048
3,830 Government of the Netherlands 07/15/12 5.000 5,536,919
</Table>
99
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - (CONTINUED)
NETHERLANDS - (CONCLUDED)
2,020 Government of the Netherlands 01/15/23 7.500% $ 3,854,024
1 Government of the Netherlands 01/15/28 5.500 799
700 Koninklijke (Royal) Philips Electronics NV 05/16/11 6.125 1,038,499
210 Linde Finance BV 07/03/13 6.000+ 307,772
330 Munich Re Finance BV 06/21/23 6.750+ 508,118
1,000 Repsol International Finance BV 07/22/13 5.000 1,401,457
1,200 RWE Finance BV 07/23/18 5.125 1,720,913
17,303,691
- --------------------------------------------------------------------------------------------------------------------------
NEW ZEALAND - 0.75%
770 Government of New Zealand 04/15/13 6.500 561,850
2,910 Government of New Zealand 02/15/16 4.500 2,694,792
3,256,642
- --------------------------------------------------------------------------------------------------------------------------
NORWAY - 0.98%
24,400 Government of Norway 05/15/15 5.000 4,210,730
- --------------------------------------------------------------------------------------------------------------------------
PERU - 0.18%
USD 300 Republic of Peru 05/03/16 8.375 325,500
USD 500 Republic of Peru 03/07/17 4.500+ 463,750
789,250
- --------------------------------------------------------------------------------------------------------------------------
PHILIPPINES - 0.14%
USD 600 Republic of Philippines 02/15/11 8.375 615,750
- --------------------------------------------------------------------------------------------------------------------------
RUSSIA - 0.20%
USD 900 Russian Federation 05/14/08 3.000 839,520
- --------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA - 0.64%
700,000 Republic of South Korea 04/10/07 7.170 726,385
2,000,000 Republic of South Korea 07/10/07 6.150 2,042,214
2,768,599
- --------------------------------------------------------------------------------------------------------------------------
SPAIN - 0.80%
2,627 Kingdom of Spain 07/30/05 4.950 3,470,244
- --------------------------------------------------------------------------------------------------------------------------
SWEDEN - 7.58%
28,800 Kingdom of Sweden 08/15/07 8.000 4,667,095
71,620 Kingdom of Sweden 12/01/09 4.000 10,664,093
55,400 Kingdom of Sweden 03/15/11 5.250 8,774,683
47,700 Kingdom of Sweden 10/08/12 5.500 7,731,242
650 Nordbanken AB 12/13/10 6.000+ 871,857
32,708,970
- --------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM - 6.52%
550 Barclays Bank PLC 03/08/11 5.750 807,163
900 BAT International Finance PLC 02/25/09 4.875 1,238,942
USD 1,460 HBOS PLC (1) 11/01/13 5.375+ 1,512,623
250 Hilton Group Finance PLC 07/17/09 6.500 367,724
600 HSBC Bank PLC 03/18/16 4.250 813,698
310 Imperial Tobacco Finance 06/06/07 6.250 434,688
</Table>
100
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - (CONTINUED)
UNITED KINGDOM - (CONCLUDED)
650 Kingfisher PLC Euro MTN 10/21/10 4.500% $ 889,120
900 MMO2 PLC 01/25/07 6.375 1,254,088
USD 370 Pearson Dollar Finance PLC (1) 06/01/09 4.700 375,826
180 RBS Capital Trust I 06/30/12 6.467+ 274,504
1,100 Rolls-Royce Group PLC Euro MTN 03/16/11 4.500 1,501,449
1,100 Royal Bank of Scotland PLC 09/22/21 4.625+ 1,513,915
105 United Kingdom Treasury Bonds 12/07/09 5.750 208,259
7,100 United Kingdom Treasury Bonds 09/07/14 5.000 13,798,395
1,590 United Kingdom Treasury Bonds 12/07/38 4.750 3,144,508
28,134,902
- --------------------------------------------------------------------------------------------------------------------------
UNITED STATES - 30.10%
3,500 American Express Credit Account, Series 2001-1,
Class A 09/15/08 2.620+ 3,504,934
1,800 American Honda Finance Corp. (1) 05/26/09 4.500 1,824,422
EUR 800 Bank of America Corp. 05/06/19 4.750+ 1,113,709
649 Bank of America Mortgage Securities,
Series 2003-10, Class 1A6 01/25/34 2.980+ 649,701
2,000 Bank One Issuance Trust, Series 2002-A2,
Class A2 01/15/08 4.160 2,007,383
130 Boston Scientific Corp. 06/15/14 5.450 135,808
4,000 Capital Auto Receivables Asset Trust,
Series 2003-2, Class A-4B 01/15/09 2.540+ 4,003,376
1,826 Citifinancial Mortgage Securities, Inc.
Series 2003-4, Class AV1 10/25/33 2.718+ 1,828,743
1,790 Core Investment Grade Trust 11/30/07 4.727 1,822,417
878 Countrywide Alternative Loan Trust
Series 2004-18CB, Class 2A5 09/25/34 2.980+ 879,233
199 Credit Suisse First Boston Mortgage
Securities Corp. Series 2003-1, Class 2A4 01/25/33 3.130+ 199,778
620 CVS Corp. (1) 01/11/27 5.298 626,944
1,300 Dominion Resources, Inc. 07/15/05 7.625 1,326,281
320 Dominion Resources, Inc. 01/15/16 5.200 321,743
888 Federal Home Loan Mortgage Corp. Certificates 08/01/18 5.000 903,198
154 Federal Home Loan Mortgage Corp. Certificates 04/01/32 7.000 163,001
1,000 Federal Home Loan Mortgage Corp. Certificates 05/01/33 5.000 1,001,878
626 Federal Home Loan Mortgage Corp. Certificates 05/01/33 6.000 646,728
904 Federal Home Loan Mortgage Corp. Certificates 08/01/33 5.500 922,469
26 Federal Home Loan Mortgage Corp. Certificates 09/01/33 6.500 27,731
411 Federal Home Loan Mortgage Corp. Certificates 10/01/33 6.000 424,456
39 Federal Home Loan Mortgage Corp. Certificates 11/01/33 6.500 40,348
135 Federal Home Loan Mortgage Corp. Certificates,
Series 1630, Class FC 10/15/22 3.000+ 135,497
685 Federal Home Loan Mortgage Corp. Certificates,
Series 1633, Class PL 03/15/23 6.500 695,686
32 Federal Home Loan Mortgage Corp. Certificates,
Series 1686, Class FA 02/15/24 3.400+ 31,960
371 Federal Home Loan Mortgage Corp. Certificates,
Series 2157, Class F 05/15/29 2.830+ 372,610
277 Federal Home Loan Mortgage Corp. Certificates,
Series 2326, Class FC 06/15/29 2.980+ 278,952
93 Federal Home Loan Mortgage Corp. Certificates,
Series 2334, Class FA 07/15/31 2.980+ 93,805
533 Federal Home Loan Mortgage Corp. Certificates,
Series 2372, Class F 10/15/31 2.980+ 535,347
848 Federal Home Loan Mortgage Corp. Certificates,
Series 2385, Class FB 05/15/29 3.080+ 856,371
1,293 Federal Home Loan Mortgage Corp. Certificates,
Series 2388, Class FB 01/15/29 3.080+ 1,306,475
742 Federal Home Loan Mortgage Corp. Certificates,
Series 2389, Class EH 05/15/30 6.000 753,364
</Table>
101
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - (CONTINUED)
UNITED STATES - (CONTINUED)
394 Federal Home Loan Mortgage Corp. Certificates,
Series 2394, Class FX 12/15/31 3.190%+ $ 397,436
110 Federal Home Loan Mortgage Corp. Certificates,
Series 2396, Class FM 12/15/31 2.930+ 111,026
3,609 Federal Home Loan Mortgage Corp. Certificates,
Series 2562, Class PC 02/15/13 4.500 3,629,643
661 Federal Home Loan Mortgage Corp. Certificates,
Series 2589, Class F 03/17/33 2.680+ 661,177
379 Federal Home Loan Mortgage Corp. Certificates,
Series 2603, Class F 04/15/33 2.780+ 379,888
40 Federal National Mortgage Association
Certificates 10/01/28 6.500 42,402
159 Federal National Mortgage Association
Certificates 02/01/31 7.500 170,276
181 Federal National Mortgage Association
Certificates 06/01/33 4.500 176,521
2,455 Federal National Mortgage Association
Certificates 09/01/33 6.000 2,534,838
279 Federal National Mortgage Association
Certificates 10/01/33 4.500 273,007
86 Federal National Mortgage Association
Certificates 11/01/33 6.500 89,783
937 Federal National Mortgage Association
Certificates 12/01/33 5.500 955,558
9,905 Federal National Mortgage Association
Certificates 03/01/34 5.000 9,906,426
2,000 Federal National Mortgage Association
Certificates TBA TBA 4.500 1,996,250
10,000 Federal National Mortgage Association
Certificates TBA TBA 5.000 9,975,000
5,000 Federal National Mortgage Association
Certificates TBA TBA 5.500 5,090,625
2,000 Federal National Mortgage Association
Certificates TBA TBA 6.000 2,065,000
2,000 Federal National Mortgage Association
Certificates TBA TBA 6.500 2,092,500
689 Federal National Mortgage Association REMIC,
Trust Series 1994-61, Class FG 04/25/24 4.031+ 710,279
184 Federal National Mortgage Association REMIC,
Trust Series 1997-68, Class FC 05/18/27 2.938+ 185,317
874 Federal National Mortgage Association REMIC,
Trust Series 2001-46, Class F 09/18/31 2.810+ 878,721
271 Federal National Mortgage Association REMIC,
Trust Series 2001-61, Class FM 10/18/16 2.660+ 272,322
160 Federal National Mortgage Association REMIC,
Trust Series 2002-60, Class FH 08/25/32 3.418+ 162,481
127 Federal National Mortgage Association REMIC,
Trust Series 2002-66, Class FG 09/25/32 3.418+ 130,109
877 Federal National Mortgage Association REMIC,
Trust Series 2003-16, Class NF 03/25/18 2.868+ 883,461
1,455 Federal National Mortgage Association REMIC,
Trust Series 2003-67, Class TF 08/25/17 2.818+ 1,464,781
822 Federal National Mortgage Association REMIC,
Trust Series G93-27, Class FC 08/25/23 3.338+ 834,625
347 First Horizon Mortgage Trust, Series 2004-FL1,
Class 3A1 02/25/35 3.320+ 347,094
190 Ford Motor Co. 02/01/29 6.375 170,233
150 Ford Motor Credit Co. 03/15/05 7.750 150,833
390 General Motors Acceptance Corp. 05/16/05 5.250 392,620
300 Goldman Sachs Group, Inc. 02/15/34 6.345 321,336
103 Government National Mortgage Association
Certificates 06/15/31 7.500 110,418
65 Government National Mortgage Association
Certificates 07/15/31 7.500 70,005
254 Government National Mortgage Association
Certificates 09/15/31 7.000 269,692
328 Government National Mortgage Association
Certificates 10/15/31 7.000 347,811
1,194 Government National Mortgage Association
Certificates 08/15/32 6.500 1,258,184
259 Government National Mortgage Association
Certificates 11/15/33 6.000 269,477
385 Government National Mortgage Association REMIC,
Series 1997-7, Class FA 03/16/29 2.707+ 385,436
533 Government National Mortgage Association REMIC,
Series 2000-16, Class FH 04/16/19 2.857+ 533,704
205 Government National Mortgage Association REMIC,
Series 2000-30, Class F 12/16/22 2.957+ 206,400
930 HSBC Finance Corp. 11/16/09 4.125 923,819
EUR 1,800 JP Morgan Chase & Co. 12/03/08 3.875 2,418,081
</Table>
102
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - (CONCLUDED)
UNITED STATES - (CONCLUDED)
560 JP Morgan Chase & Co. 09/15/14 5.125% $ 570,474
EUR 1,000 Lehman Brothers Holdings 01/16/14 4.750 1,379,351
1,622 Long Beach Mortgage Loan Trust Series 2004-1,
Class A3 02/25/34 2.830+ 1,625,289
4,060 Morgan Stanley & Co. 01/15/10 4.000 4,004,922
360 Morgan Stanley & Co. 04/01/14 4.750 354,385
433 Nisource Finance Corp. 11/15/10 7.875 507,854
676 Novastar Home Equity Loan Series 2003-1,
Class A1 05/25/33 2.910+ 678,153
570 Option One Trust 02/25/32 2.820+ 570,578
1,940 Rabobank Capital Funding Trust III (1) 12/13/16 5.254+ 1,943,350
250 RBS Capital Trust I 07/01/13 4.709+ 245,481
282 Residential Accredit Loans, Inc.,
Series 2003-QS5, Class A1 03/25/18 2.980+ 283,329
1,614 Residential Asset Securities Corp.
Series 2003-KS6, Class A2 08/25/33 2.830+ 1,615,670
864 Residential Asset Securities Corp.
Series 2003-KS7, Class AIIB 09/25/33 2.850+ 866,382
1,723 Residential Asset Securities Corp.
Series 2003-KS8, Class A2B3 10/25/33 2.840+ 1,726,173
2,486 Residential Asset Securities Corp.
Series 2003-RS4, Class AIIB 05/25/33 2.860+ 2,491,915
333 Residential Asset Securities Corp.
Series 2003-RS10, Class AI1 09/25/22 2.720+ 332,685
4,000 Residential Asset Securities Corp.
Series 2004-KS6, Class A2B2 12/25/33 2.790+ 4,000,400
2,283 Residential Asset Securities Corp.
Series 2004-RS4, Class A2B1 04/25/34 2.790+ 2,284,811
1,165 SMHL Global Fund, Series 6, Class A 11/09/35 1.870+ 1,163,939
670 Southern Power Co. 07/15/15 4.875 663,015
400 U.S. Treasury Bonds 06/15/09 4.000 405,953
9,920 U.S. Treasury Bonds 08/15/14 4.250 9,994,013
5 U.S. Treasury Bonds 05/15/30 6.250 6,176
3,891 U.S. Treasury Inflation Index Bonds (3) 01/15/25 2.375 4,186,080
1,280 U.S. Treasury Notes (2) 02/15/08 3.000 1,264,000
180 U.S. Treasury Stripped Principal Payment Bonds # 02/15/19 8.875@ 94,278
3,000 Wells Fargo & Co. 03/23/07 2.590+ 3,000,711
129,938,310
Total Long-Term Global Debt Securities (cost - $349,102,114) 376,385,304
- --------------------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
WARRANTS
(000)
- --------------------------------------------------------------------------------------------------------------------------
WARRANTS - 0.00%
VENEZUELA - 0.00%
4 Republic of Venezuela, strike @ $0, expires 04/15/20++++** (cost - $0) 0
<Caption>
PRINCIPAL
AMOUNT
(000)*
- --------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - 4.38%
BANKING-U.S. - 4.38%
15,000 Anz Delaware, Inc. 04/20/05 2.580 14,916,150
4,000 CBA (Delaware) Finance, Inc. 02/17/05 2.260 3,995,982
Total Commercial Paper (cost - $18,912,132) 18,912,132
- --------------------------------------------------------------------------------------------------------------------------
</Table>
103
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------------
SHORT-TERM GLOBAL DEBT SECURITIES - 0.58%
FRANCE - 0.58%
USD 2,500 Societe Generale N.A., Inc. (cost - $2,500,000) 02/01/05 2.250% $ 2,500,000
SHORT-TERM U.S. GOVERNMENT AND AGENCY OBLIGATIONS@ - 5.26%
8,000 Federal Home Loan Bank 03/30/05 2.440 7,968,966
5,000 Federal Home Loan Mortgage Corp. 04/19/05 2.250 4,972,729
9,000 Federal National Mortgage Association 02/07/05 to 02/23/05 2.145 to 2.270 8,992,865
800 U. S. Treasury Bills++ 06/09/05 2.396 793,185
Total Short-Term U.S. Government and Agency Obligations
(cost - $22,727,745) 22,727,745
- --------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 5.27%
22,730 Repurchase Agreement dated 01/31/05 with State
Street Bank & Trust Co., collateralized by
$1,532,382 U.S. Treasury Bonds, 12.000%
due 08/15/13 and $22,588,098 U.S. Treasury
Notes, 1.625% to 5.750% due 03/31/05 to
04/30/06; (value - $24,723,397); proceeds;
$22,731,440 (cost - $22,730,000) 02/01/05 2.280 22,730,000
- --------------------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 0.14%
MONEY MARKET FUNDS^ - 0.14%
505 Barclays Prime Money Market Fund 2.363 505,203
107 UBS Private Money Market Fund LLC*** 2.287 107,482
Total Money Market Funds (cost - $612,685) 612,685
Total Investments (cost - $416,584,676) - 102.83% 443,867,866
Liabilities in excess of other assets - (2.83)% (12,215,386)
Net Assets - 100.00% $ 431,652,480
- --------------------------------------------------------------------------------------------------------------------------
</Table>
Note: The Portfolio of Investments is listed by the issuer's country of origin.
* In local currency unless otherwise indicated.
** Security is being fair valued by a valuation committee under the
direction of the board of trustees.
+ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2005.
^ Interest rates shown reflect yield at January 31, 2005.
++ Entire or partial amount pledged as collateral for futures transactions.
++++ Illiquid security representing 0.00% of net assets as of January 31,
2005.
@ Annualized yield at date of purchase.
# Principal Only Security. This security entitles the holder to receive
principal payments from an underlying pool of assets. High prepayments
return principal faster than expected and cause the yield to increase.
Low prepayments return principal more slowly than expected and cause the
yield to decrease.
(1) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 1.58% of net assets as of
January 31, 2005, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
(2) Security, or portion thereof, was on loan at January 31, 2005.
(3) Principal amount for accrual purposes is adjusted based on changes in the
Consumer Price Index.
MTN Medium Term Note.
REMIC Real Estate Mortgage Investment Conduit
TBA (To Be Assigned) Security is purchased on a forward commitment basis with
an approximate principal amount (generally +/- 1.0%) and no definite
maturity date. The actual principal amount and maturity date will be
determined upon settlement when the specific mortgage pools are assigned.
EUR Euro Dollars
USD U.S. Dollars
GBP Great Britain Pounds
JPY Japanese Yen
104
<Page>
*** Affiliated issuer. See table below for more information.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
SECURITY VALUE AT ENDED ENDED VALUE AT ENDED
DESCRIPTION 07/31/04 01/31/05 01/31/05 01/31/05 01/31/05
- -----------------------------------------------------------------------------------------
UBS Private
Money Market
Fund LLC $ 3,600,185 $ 13,546,869 $ 17,039,572 $ 107,482 $ 3,742
- -----------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION
CONTRACTS CURRENCY CONTRACTS TO RECEIVE EXCHANGE FOR DATES (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------------------
FUTURES CONTRACTS
2 JPY Japan Bond 10 Year Futures $ 2,701,802 March 2005 $ 3,054
81 USD U.S. Treasury Note 5 Year Futures 8,855,808 March 2005 6,558
239 USD U.S. Treasury Note 10 Year Futures 26,727,141 March 2005 (104,343)
(94,731)
- -----------------------------------------------------------------------------------------------------------------------------
<Caption>
CONTRACTS TO DELIVER
- -----------------------------------------------------------------------------------------------------------------------------
35 EUR Euro Bond 2 Year Futures 4,853,199 March 2005 (6,079)
186 EUR Euro Bond 5 Year Futures 27,508,922 March 2005 7,895
175 EUR Euro Bond 10 Year Futures 27,275,006 March 2005 83,572
110 USD U.S. Treasury Bond 20 Year Futures 12,405,232 March 2005 227,580
312,968
$ 218,237
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
EUR Euro Dollars
JPY Japanese Yen
USD U.S. Dollars
105
<Page>
FORWARD FOREIGN CURRENCY CONTRACTS
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN APPRECIATION
DELIVER EXCHANGE FOR MATURITY DATES (DEPRECIATION)
----------------------------------------------------------------------------------
Australian Dollar 448,370 USD 342,068 02/23/05 $ (5,296)
Australian Dollar 2,197,452 USD 1,676,232 02/23/05 (26,190)
Australian Dollar 189,164 USD 144,231 02/23/05 (2,319)
Australian Dollar 16,854,672 EUR 10,015,850 03/02/05 14,362
Australian Dollar 5,938,667 USD 4,499,728 03/02/05 (98,049)
Australian Dollar 5,896,696 USD 4,603,433 03/02/05 38,150
Canadian Dollar 653,808 USD 530,000 02/23/05 1,651
Canadian Dollar 922,275 USD 750,000 02/23/05 4,699
Canadian Dollar 5,619,040 USD 4,570,000 02/23/05 29,193
Canadian Dollar 750,051 USD 610,000 02/23/05 3,876
Canadian Dollar 84,503,339 EUR 53,852,874 03/02/05 1,014,023
Canadian Dollar 1,592,512 USD 1,280,000 05/18/05 (7,607)
Canadian Dollar 1,547,650 USD 1,250,000 05/18/05 (1,334)
Canadian Dollar 123,850 USD 100,000 05/18/05 (137)
Canadian Dollar 1,120,824 USD 900,000 05/18/05 (6,229)
Canadian Dollar 447,693 USD 360,000 05/18/05 (1,977)
Danish Krone 88,797,150 USD 15,721,875 03/02/05 140,603
Euro Dollar 4,210,976 GBP 2,960,000 02/23/05 35,743
Euro Dollar 313,757 GBP 220,000 02/23/05 2,148
Euro Dollar 2,193,867 GBP 1,540,000 02/23/05 16,624
Euro Dollar 8,471,291 GBP 5,900,000 02/23/05 20,463
Euro Dollar 1,025,524 GBP 720,000 02/23/05 7,889
Euro Dollar 1,260,000 ISK 105,596,400 02/23/05 27,901
Euro Dollar 2,200,000 JPY 303,426,200 02/23/05 29,970
Euro Dollar 3,300,000 JPY 448,645,560 02/23/05 13,578
Euro Dollar 9,200,000 JPY 1,247,699,600 02/23/05 23,022
Euro Dollar 7,160,000 JPY 969,301,200 02/23/05 9,536
Euro Dollar 3,620,000 JPY 493,365,740 02/23/05 20,766
Euro Dollar 1,960,000 JPY 268,772,840 02/23/05 19,200
Euro Dollar 2,000,000 SEK 17,951,766 02/23/05 (19,068)
Euro Dollar 800,000 SEK 7,185,779 02/23/05 (7,263)
Euro Dollar 7,320,000 SEK 65,675,333 02/23/05 (71,803)
Euro Dollar 6,600,000 SEK 59,285,026 02/23/05 (59,755)
Euro Dollar 3,110,000 USD 4,138,150 02/23/05 77,872
Euro Dollar 3,290,000 USD 4,365,644 02/23/05 70,365
Euro Dollar 13,942,232 USD 18,243,748 02/23/05 54,440
Euro Dollar 22,121,082 USD 28,920,491 02/23/05 40,182
Euro Dollar 5,891,102 USD 7,692,669 02/23/05 1,505
Euro Dollar 1,138,730 USD 1,462,317 02/23/05 (24,359)
Euro Dollar 2,749,575 USD 3,517,188 02/23/05 (72,536)
Euro Dollar 16,094,390 CAD 25,352,688 03/02/05 (263,393)
Euro Dollar 10,887,605 DKK 80,890,548 03/02/05 (11,073)
Euro Dollar 9,628,598 DKK 71,594,885 03/02/05 (4,682)
Euro Dollar 6,739,217 DKK 50,069,015 03/02/05 (6,913)
Euro Dollar 34,655,632 GBP 24,411,774 03/02/05 328,044
</Table>
106
<Page>
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN APPRECIATION
DELIVER EXCHANGE FOR MATURITY DATES (DEPRECIATION)
----------------------------------------------------------------------------------
Euro Dollar 15,888,726 JPY 2,158,149,762 03/02/05 $ 61,182
Euro Dollar 9,587,246 SEK 86,726,224 03/02/05 (43,150)
Euro Dollar 21,061,437 USD 27,714,744 03/02/05 214,637
Euro Dollar 478,472 USD 636,368 03/02/05 11,623
Euro Dollar 1,915,928 GBP 1,340,000 05/18/05 2,085
Euro Dollar 114,392 GBP 80,000 05/18/05 119
Euro Dollar 140,000 JPY 18,769,660 05/18/05 (236)
Euro Dollar 5,240,000 JPY 700,227,820 05/18/05 (19,982)
Euro Dollar 2,210,000 USD 2,878,501 05/18/05 (11,508)
Euro Dollar 1,330,000 USD 1,730,968 05/18/05 (8,268)
Euro Dollar 2,540,000 USD 3,309,687 05/18/05 (11,862)
Euro Dollar 1,010,000 USD 1,315,112 05/18/05 (5,661)
Euro Dollar 1,379,310 HUF 360,000,000 12/06/05 9,054
Euro Dollar 1,048,553 PLN 4,600,000 12/06/05 31,129
Euro Dollar 2,013,592 SKK 80,000,000 12/06/05 48,557
Great Britain Pounds 2,340,000 EUR 3,336,898 02/23/05 (23,065)
Great Britain Pounds 314,126 EUR 447,600 02/23/05 (3,325)
Great Britain Pounds 3,023,816 EUR 4,299,856 02/23/05 (37,757)
Great Britain Pounds 1,090,000 USD 2,105,073 02/23/05 54,272
Great Britain Pounds 9,093,630 USD 16,817,531 02/23/05 (291,855)
Great Britain Pounds 1,570,000 USD 3,035,124 02/23/05 81,217
Great Britain Pounds 6,170,380 USD 11,820,167 02/23/05 210,786
Great Britain Pounds 6,661,048 AUD 16,520,265 03/02/05 132,040
Great Britain Pounds 11,355,520 USD 21,234,823 03/02/05 (119,195)
Great Britain Pounds 1,682,396 USD 3,139,351 05/18/05 (11,528)
Iceland Krona 61,677,102 USD 971,216 02/23/05 (22,194)
Japanese Yen 443,471,280 EUR 3,280,000 02/23/05 (1,971)
Japanese Yen 502,888,200 EUR 3,720,000 02/23/05 (1,499)
Japanese Yen 243,446,400 EUR 1,800,000 02/23/05 (1,273)
Japanese Yen 571,629,660 USD 5,580,000 02/23/05 56,051
Japanese Yen 1,007,327,967 USD 9,700,000 02/23/05 (34,324)
Japanese Yen 1,455,363,351 USD 14,008,820 02/23/05 (55,099)
Japanese Yen 802,834,340 USD 7,760,000 02/23/05 1,802
Japanese Yen 249,593,700 USD 2,440,000 02/23/05 28,049
Japanese Yen 216,413,840 USD 2,120,000 02/23/05 28,683
Japanese Yen 859,128,880 AUD 10,739,111 03/02/05 3,455
Japanese Yen 897,886,976 CAD 10,380,196 03/02/05 (146,919)
Japanese Yen 2,093,416,960 EUR 15,440,000 03/02/05 (41,165)
Japanese Yen 5,384,624,890 EUR 40,024,223 03/02/05 96,445
Japanese Yen 127,708,800 EUR 960,000 05/18/05 6,469
Japanese Yen 202,158,480 EUR 1,520,000 05/18/05 10,471
Japanese Yen 21,296,960 EUR 160,000 05/18/05 1,019
New Zealand Dollar 4,450,596 USD 3,002,840 02/23/05 (156,401)
Norwegian Krone 12,933,917 GBP 1,080,528 03/02/05 (2,268)
Polish Zloty 4,890,146 USD 1,568,863 02/23/05 (444)
</Table>
107
<Page>
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN APPRECIATION
DELIVER EXCHANGE FOR MATURITY DATES (DEPRECIATION)
----------------------------------------------------------------------------------
Swedish Krona 2,883,490 EUR 320,000 02/23/05 $ 2,248
Swedish Krona 14,978,871 EUR 1,660,000 02/23/05 10,171
Swedish Krona 78,112,705 EUR 8,720,000 02/23/05 94,385
Swedish Krona 35,115,495 USD 5,026,912 02/23/05 (6,094)
Swedish Krona 127,305,661 EUR 14,270,335 03/02/05 192,077
Swedish Krona 74,573,289 USD 10,982,811 03/02/05 293,032
Swedish Krona 181,090 EUR 20,000 05/18/05 74
Swedish Krona 52,163,136 EUR 5,760,000 05/18/05 20,702
Swiss Franc 30,576 EUR 20,000 02/23/05 160
Swiss Franc 7,205,859 EUR 4,720,000 02/23/05 42,156
Swiss Franc 61,058 EUR 40,000 02/23/05 361
Swiss Franc 5,720,087 EUR 3,740,000 02/23/05 29,034
Swiss Franc 2,299,488 USD 1,920,000 02/23/05 (19,545)
Swiss Franc 634,876 USD 530,000 02/23/05 (5,498)
United States Dollar 1,310,000 AUD 1,734,801 02/23/05 33,995
United States Dollar 873,412 AUD 1,184,023 02/23/05 43,881
United States Dollar 2,130,000 CAD 2,545,265 02/23/05 (73,144)
United States Dollar 550,000 CAD 659,904 02/23/05 (16,725)
United States Dollar 1,250,000 CAD 1,501,413 02/23/05 (36,692)
United States Dollar 6,726,783 CAD 8,225,682 02/23/05 (79,520)
United States Dollar 1,190,000 CHF 1,445,588 02/23/05 29,307
United States Dollar 2,950,000 CHF 3,460,948 02/23/05 (30,801)
United States Dollar 940,000 CHF 1,141,348 02/23/05 22,691
United States Dollar 2,900,000 CHF 3,418,750 02/23/05 (16,394)
United States Dollar 1,937,370 EUR 1,500,000 02/23/05 20,964
United States Dollar 7,297,449 EUR 5,500,000 02/23/05 (116,892)
United States Dollar 7,577,171 EUR 5,790,000 02/23/05 (18,002)
United States Dollar 16,147,529 EUR 12,212,885 02/23/05 (202,926)
United States Dollar 4,840,380 EUR 3,700,000 02/23/05 (9,823)
United States Dollar 47,538,057 EUR 36,598,185 02/23/05 242,919
United States Dollar 657,730 EUR 495,779 02/23/05 (10,463)
United States Dollar 1,372,824 GBP 720,000 02/23/05 (18,166)
United States Dollar 1,442,469 GBP 755,819 02/23/05 (20,418)
United States Dollar 22,332,531 GBP 12,010,274 02/23/05 264,431
United States Dollar 190,720 GBP 100,000 02/23/05 (2,573)
United States Dollar 2,079,527 GBP 1,090,000 02/23/05 (28,726)
United States Dollar 6,160,000 JPY 646,777,920 02/23/05 90,145
United States Dollar 840,000 JPY 88,793,880 02/23/05 18,061
United States Dollar 9,820,000 JPY 1,018,823,010 02/23/05 25,406
United States Dollar 6,130,000 JPY 632,240,030 02/23/05 (20,342)
United States Dollar 7,698,278 JPY 818,024,991 02/23/05 206,715
United States Dollar 5,550,000 JPY 582,181,715 02/23/05 75,919
United States Dollar 30,309,038 JPY 3,181,238,767 02/23/05 432,895
United States Dollar 2,437,995 KRW 2,548,679,645 02/23/05 41,177
United States Dollar 197,428 NZD 280,000 02/23/05 1,329
</Table>
108
<Page>
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN APPRECIATION
DELIVER EXCHANGE FOR MATURITY DATES (DEPRECIATION)
----------------------------------------------------------------------------------
United States Dollar 1,044,209 PLN 3,600,746 02/23/05 $ 111,314
United States Dollar 420,000 PLN 1,289,400 02/23/05 (6,216)
United States Dollar 1,135,080 SEK 8,054,076 02/23/05 19,288
United States Dollar 4,242,182 CAD 5,095,030 03/02/05 (124,828)
United States Dollar 15,996,822 CAD 18,900,085 03/02/05 (723,442)
United States Dollar 15,040,000 EUR 11,237,718 03/02/05 (366,810)
United States Dollar 39,935,004 JPY 4,083,068,778 03/02/05 (453,416)
United States Dollar 190,000 AUD 249,717 05/18/05 2,263
United States Dollar 610,000 AUD 801,682 05/18/05 7,233
United States Dollar 40,000 AUD 52,560 05/18/05 467
United States Dollar 1,001,585 EUR 770,000 05/18/05 5,341
United States Dollar 4,791,507 EUR 3,680,000 05/18/05 20,815
United States Dollar 12,999,852 EUR 9,962,336 05/18/05 27,857
United States Dollar 1,296,583 EUR 993,594 05/18/05 2,736
United States Dollar 3,120,024 EUR 2,400,000 05/18/05 18,447
United States Dollar 730,000 JPY 74,328,600 05/18/05 (6,873)
United States Dollar 8,846,186 JPY 896,080,278 05/18/05 (128,417)
United States Dollar 5,807,229 JPY 595,647,277 05/18/05 (12,307)
United States Dollar 870,000 JPY 88,535,550 05/18/05 (8,657)
United States Dollar 1,556,083 PLN 4,890,146 05/18/05 20
United States Dollar 5,036,285 SEK 35,115,495 05/18/05 6,502
United States Dollar 960,000 SGD 1,560,787 05/18/05 (3,735)
United States Dollar 1,550,000 SGD 2,519,200 05/18/05 (6,534)
United States Dollar 40,000 SGD 65,019 05/18/05 (164)
United States Dollar 760,000 ZAR 4,571,780 05/18/05 (2,540)
United States Dollar 1,436,782 KRW 1,500,000,000 06/07/05 20,661
$ 1,294,514
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
AUD Australian Dollars
CAD Canadian Dollars
CHF Swiss Francs
DKK Danish Krone
EUR Euro Dollars
GBP Great Britain Pounds
HUF Hungarian Forints
ISK Iceland Krona
JPY Japanese Yen
KRW South Korean Won
NZD New Zealand Dollars
PLN Polish Zloties
SEK Swedish Krona
SGD Singapore Dollar
SKK Slovakian Koruna
USD U.S. Dollars
ZAR South African Rand
109
<Page>
INVESTMENTS BY TYPE OF ISSUER
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
---------------------------------
LONG-TERM SHORT-TERM
- -------------------------------------------------------------------------------------
Government and other public issuers 60.79% 5.12%
Repurchase agreement -- 5.12
Banks and other financial institutions 20.74 4.82
Industrials 3.27 --
Money market funds -- 0.14
84.80% 15.20%
- -------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
110
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE LARGE CO VALUE EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
COMMON STOCKS - 97.82%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
AEROSPACE & DEFENSE - 1.89%
Boeing Co. 133,100 $ 6,734,860
Lockheed Martin Corp. (1) 130,600 7,549,986
United Technologies Corp. 68,699 6,916,615
21,201,461
- -----------------------------------------------------------------------------------------
AIR FREIGHT & COURIERS - 0.38%
CNF, Inc. 90,400 4,240,664
- -----------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.33%
American Axle & Manufacturing Holdings, Inc. 139,700 3,750,945
- -----------------------------------------------------------------------------------------
AUTOMOBILES - 0.59%
Ford Motor Co. (1) 506,100 6,665,337
- -----------------------------------------------------------------------------------------
BANKS - 10.21%
Astoria Financial Corp. 36,000 1,355,040
Bank of America Corp. 908,200 42,113,234
BB&T Corp. 152,900 6,034,963
Comerica, Inc. 52,900 3,060,794
Golden West Financial Corp. 104,400 6,746,328
KeyCorp (1) 180,100 6,018,942
National City Corp. (1) 110,400 3,924,720
Sovereign Bancorp, Inc. 220,200 5,007,348
SunTrust Banks, Inc. 97,300 7,007,546
U.S. Bancorp 289,500 8,699,475
Wachovia Corp. 213,900 11,732,415
Wells Fargo & Co. 208,000 12,750,400
114,451,205
- -----------------------------------------------------------------------------------------
BEVERAGES - 0.72%
Pepsi Bottling Group, Inc. (1) 134,500 3,678,575
PepsiCo, Inc. (1) 82,450 4,427,565
8,106,140
- -----------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.24%
Masco Corp. (1) 74,250 2,732,400
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.99%
E.I. du Pont de Nemours and Co. 141,050 6,708,338
Scotts Co., Class A* 48,800 3,316,448
Valspar Corp. 22,800 1,117,200
11,141,986
- -----------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 2.59%
Cendant Corp. 660,350 15,551,242
Donnelley, R.R. & Sons Co. 111,800 3,739,710
Republic Services, Inc. 118,400 3,903,648
Waste Management, Inc. 201,900 5,855,100
29,049,700
- -----------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 2.03%
Cisco Systems, Inc.* 228,700 $ 4,125,748
Harris Corp. 113,500 7,351,395
Motorola, Inc. 440,800 6,938,192
Scientific-Atlanta, Inc. 143,300 4,343,423
22,758,758
- -----------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 2.66%
Apple Computer, Inc.* 70,400 5,413,760
Hewlett-Packard Co. (1) 327,200 6,409,848
International Business Machines Corp. 192,950 18,025,389
29,848,997
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 11.12%
American Express Co. (1) 131,081 6,993,171
Bear Stearns Cos., Inc. 68,700 6,942,822
Capital One Financial Corp. (1) 88,300 6,912,124
CIT Group, Inc. 173,300 6,996,121
Citigroup, Inc. 745,262 36,555,101
Countrywide Financial Corp. 181,230 6,705,510
Franklin Resources, Inc. 53,900 3,657,654
Freddie Mac 36,800 2,402,672
Goldman Sachs Group, Inc. 64,950 7,004,858
J.P. Morgan Chase & Co. 572,970 21,388,970
Lehman Brothers Holdings, Inc. (1) 124,200 11,325,798
Merrill Lynch & Co., Inc. 38,900 2,336,723
Morgan Stanley & Co. 20,000 1,119,200
Providian Financial Corp. (1)* 257,000 4,286,760
124,627,484
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 4.54%
ALLTEL Corp. (1) 127,000 6,990,080
AT&T Corp. (1) 313,000 6,006,470
BellSouth Corp. (1) 311,400 8,171,136
CenturyTel, Inc. (1) 138,500 4,515,100
MCI, Inc. 121,400 2,341,806
SBC Communications, Inc. 174,100 4,136,616
Verizon Communications, Inc. 527,601 18,777,320
50,938,528
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 4.31%
Constellation Energy Group, Inc. 112,000 5,600,000
Dominion Resources, Inc. (1) 80,500 5,585,090
DTE Energy Co. 47,000 2,059,070
Entergy Corp. (1) 196,400 13,653,728
Exelon Corp. 191,000 8,451,750
PPL Corp. 108,400 5,853,600
TXU Corp. 102,200 7,072,240
48,275,478
- -----------------------------------------------------------------------------------------
</Table>
111
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.51%
Halliburton Co. 138,550 $ 5,698,562
- -----------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.46%
SUPERVALU, INC. (1) 163,200 5,158,752
- -----------------------------------------------------------------------------------------
FOOD PRODUCTS - 2.19%
General Mills, Inc. (1) 136,800 7,249,032
McDonald's Corp. 399,050 12,925,230
Tyson Foods, Inc., Class A (1) 253,500 4,352,595
24,526,857
- -----------------------------------------------------------------------------------------
GAS UTILITIES - 0.51%
Sempra Energy (1) 152,700 5,683,494
- -----------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 1.03%
Applera Corp. - Applied Biosystems Group 54,100 1,084,705
Baxter International, Inc. 157,900 5,330,704
Beckman Coulter, Inc. 29,000 1,943,000
Dade Behring Holdings, Inc.* 56,400 3,223,260
11,581,669
- -----------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 1.42%
CIGNA Corp. (1) 67,300 5,400,825
Humana, Inc.* 167,000 5,723,090
Laboratory Corp. of America Holdings (1)* 99,200 4,746,720
15,870,635
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.97%
Darden Restaurants, Inc. 137,200 4,055,632
Starwood Hotels & Resorts Worldwide, Inc. (1) 118,000 6,831,020
10,886,652
- -----------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 1.13%
Colgate-Palmolive Co. 115,700 6,078,878
Estee Lauder Cos., Inc., Class A 17,500 789,950
Kimberly-Clark Corp. 71,900 4,710,169
Procter & Gamble Co. 20,400 1,085,892
12,664,889
- -----------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 4.84%
CP Railway Ltd. 62,400 2,101,632
General Electric Co. 951,900 34,392,147
Siemens AG, ADR (1) 66,150 5,252,971
Textron, Inc. 65,000 4,678,700
Tyco International Ltd. 217,850 7,873,099
54,298,549
- -----------------------------------------------------------------------------------------
INSURANCE - 5.39%
Allstate Corp. 41,300 2,083,172
American International Group, Inc. 102,450 6,791,410
Chubb Corp. (1) 104,500 7,783,160
First American Corp. 126,500 $ 4,677,970
MetLife, Inc. 190,800 7,584,300
PMI Group, Inc. 170,000 6,760,900
Prudential Financial, Inc. 175,500 9,461,205
SAFECO Corp. (1) 95,000 4,398,500
St. Paul Cos., Inc. 179,122 6,724,240
W.R. Berkley Corp. 87,100 4,154,670
60,419,527
- -----------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.63%
McAfee, Inc.* 191,900 4,960,615
VeriSign, Inc.* 82,300 2,126,632
7,087,247
- -----------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.25%
Mattel, Inc. 142,000 2,761,900
- -----------------------------------------------------------------------------------------
MACHINERY - 2.85%
Deere & Co. 197,150 13,688,124
Eaton Corp. (1) 104,700 7,118,553
ITT Industries, Inc. 78,800 6,720,852
Parker-Hannifin Corp. 68,300 4,450,428
31,977,957
- -----------------------------------------------------------------------------------------
MARINE - 0.34%
Overseas Shipholding Group, Inc. 67,300 3,756,013
- -----------------------------------------------------------------------------------------
MEDIA - 3.93%
Comcast Corp., Class A* 351,172 11,304,227
Comcast Corp., Class A-Special (1)* 214,600 6,783,506
News Corp., Inc., Class A (1) 319,100 5,424,700
Time Warner, Inc.* 511,000 9,198,000
Viacom, Inc., Class B 54,500 2,035,030
Walt Disney Co. (1) 326,200 9,339,106
44,084,569
- -----------------------------------------------------------------------------------------
METALS & MINING - 2.29%
Alcoa, Inc. 239,894 7,079,272
Freeport-McMoRan Copper & Gold, Inc., Class B 116,100 4,273,641
Phelps Dodge Corp. (1) 114,000 10,978,200
United States Steel Corp. (1) 63,800 3,304,840
25,635,953
- -----------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 1.17%
Dillard's, Inc., Class A (1) 102,550 2,690,912
Federated Department Stores, Inc. 123,400 7,009,120
Sears, Roebuck & Co. (1) 67,400 3,386,850
13,086,882
- -----------------------------------------------------------------------------------------
</Table>
112
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.52%
NiSource, Inc. 253,500 $ 5,805,150
- -----------------------------------------------------------------------------------------
OFFICE ELECTRONICS - 0.55%
Xerox Corp. (1)* 387,000 6,145,560
- -----------------------------------------------------------------------------------------
OIL & GAS - 13.08%
Apache Corp. (1) 142,202 7,738,633
Burlington Resources, Inc. 159,400 6,967,374
ChevronTexaco Corp. 395,200 21,498,880
ConocoPhillips 214,107 19,866,988
Exxon Mobil Corp. 873,312 45,062,899
Kerr-McGee Corp. 60,200 3,717,350
Marathon Oil Corp. 399,500 15,472,635
Murphy Oil Corp. 79,303 7,080,172
Occidental Petroleum Corp. 222,750 13,004,145
Sunoco, Inc. (1) 71,800 6,281,782
146,690,858
- -----------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 2.13%
Archer Daniels Midland Co. (1) 226,600 5,483,720
Georgia-Pacific Corp. 144,000 4,622,400
International Paper Co. 177,350 6,943,253
Louisiana-Pacific Corp. 147,600 3,778,560
Rayonier, Inc. 68,618 3,053,501
23,881,434
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.94%
GlaxoSmithKline PLC, ADR (1) 84,600 3,770,622
Sanofi-Aventis, ADR (1) 181,713 6,763,358
10,533,980
- -----------------------------------------------------------------------------------------
REAL ESTATE - 0.38%
Health Care REIT, Inc. (1) 62,000 $ 2,077,000
Heritage Property Investment Trust 73,400 2,160,896
4,237,896
- -----------------------------------------------------------------------------------------
ROAD & RAIL - 1.49%
Burlington Northern Santa Fe Corp. 290,300 13,986,654
CSX Corp. 66,800 2,669,996
16,656,650
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR - 0.60%
Koninklijke (Royal) Philips Electronics N.V., ADR 257,274 6,709,706
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.43%
Freescale Semiconductor, Inc., Class B* 170,130 2,972,171
QLogic Corp. (1)* 47,200 1,806,816
4,778,987
- -----------------------------------------------------------------------------------------
SOFTWARE - 1.23%
Microsoft Corp. 526,500 13,836,420
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 2.05%
American Eagle Outfitters, Inc. 94,800 4,815,840
Circuit City Stores-Circuit City Group (1) 337,700 4,835,864
Lowe's Cos., Inc. 93,400 5,322,866
Sherwin-Williams Co. 105,400 4,553,280
Staples, Inc. 106,750 3,494,995
23,022,845
- -----------------------------------------------------------------------------------------
TOBACCO - 1.91%
Altria Group, Inc. 335,050 21,386,241
Total Common Stocks (cost - $930,051,229) 1,096,654,917
- -----------------------------------------------------------------------------------------
</Table>
113
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATES VALUE
- -------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.02%
$ 22,674 Repurchase Agreement dated 01/31/05 with State
Street Bank & Trust Co., collateralized by $1,139,343
U.S. Treasury Bonds, 12.000% due 08/15/13, $16,794,494
U.S. Treasury Notes, 1.625% to 5.750% due 03/31/05 to
04/30/06 and $5,900,000 Federal National Mortgage
Association obligations, 2.750% due 02/06/07;
(value - $24,274,737); proceeds: $22,675,436
(cost - $22,674,000) 02/01/05 2.280% $ 22,674,000
- -------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- -------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 13.64%
MONEY MARKET FUNDS+ - 13.64%
1 AIM Liquid Assets Portfolio 2.273 801
7 AIM Prime Portfolio 2.353 6,635
48,454 Barclays Prime Money Market Fund 2.363 48,454,429
19 BlackRock Provident Institutional Tempfund 2.217 18,598
431 Dreyfus Institutional Cash Advantage Fund 2.327 431,250
19 Scudder Money Market Series 2.240 18,556
103,991 UBS Private Money Market Fund LLC** 2.287 103,991,357
Total Money Market Funds (cost - $152,921,626) 152,921,626
- -------------------------------------------------------------------------------------------------------------
Total Investments (cost - $1,105,646,855) - 113.48% 1,272,250,543
Liabilities in excess of other assets - (13.48)% (151,101,711)
Net Assets - 100.00% $ 1,121,148,832
- -------------------------------------------------------------------------------------------------------------
</Table>
* Non-income Producing Security.
(1) Security, or portion thereof, was on loan at January 31, 2005.
ADR American Depositary Receipt.
REIT Real Estate Investment Trust.
+ Interest rates shown reflect yield at January 31, 2005.
** Affiliated issuer. See table below for more information.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
SECURITY VALUE AT ENDED ENDED VALUE AT ENDED
DESCRIPTION 07/31/04 01/31/05 01/31/05 01/31/05 01/31/05
- ----------------------------------------------------------------------------------------------
UBS Private
Money Market
Fund LLC $ 33,204,432 $ 815,712,393 $ 744,925,468 $ 103,991,357 $ 21,918
- ----------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
114
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE LARGE CO GROWTH EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
COMMON STOCKS - 97.65%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
AEROSPACE & DEFENSE - 0.68%
General Dynamics Corp. (1) 37,500 $ 3,871,875
United Defense Industries, Inc. 32,300 1,548,139
5,420,014
- -----------------------------------------------------------------------------------------
AIR FREIGHT & COURIERS - 2.34%
FedEx Corp. (1) 194,731 18,626,020
- -----------------------------------------------------------------------------------------
BANKS - 0.68%
Golden West Financial Corp. (1) 75,500 4,878,810
New York Community Bancorp, Inc. (1) 30,003 534,953
5,413,763
- -----------------------------------------------------------------------------------------
BEVERAGES - 0.76%
Coca-Cola Co. (1) 116,600 2,559,370
Pepsi Bottling Group, Inc. (1) 128,000 3,500,800
6,060,170
- -----------------------------------------------------------------------------------------
BIOTECHNOLOGY - 3.23%
Amgen, Inc.* 132,131 8,223,833
Cephalon, Inc. (1)* 54,300 2,671,560
Genentech, Inc.* 262,524 12,525,020
MedImmune, Inc.* 98,700 2,334,749
25,755,162
- -----------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.70%
Lennar Corp., Class A 99,263 5,605,382
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.40%
Monsanto Co. 59,459 3,218,516
- -----------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 3.09%
Cendant Corp. 177,000 4,168,350
Certegy, Inc. (1) 123,872 4,335,520
First Data Corp. 268,391 10,934,249
Paychex, Inc. 169,293 5,161,744
24,599,863
- -----------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 3.90%
Cisco Systems, Inc.* 816,730 14,733,809
Motorola, Inc. 248,800 3,916,112
QUALCOMM, Inc. 333,786 12,430,191
31,080,112
- -----------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 3.96%
Dell, Inc.* 528,488 22,069,659
International Business Machines Corp. 55,300 5,166,126
Lexmark International, Inc.* 44,200 3,684,070
Network Appliance, Inc.* 20,700 659,088
31,578,943
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 12.35%
American Express Co. (1) 127,114 6,781,532
Capital One Financial Corp. (1) 60,100 4,704,628
Chicago Mercantile Exchange Holdings, Inc. (1) 26,734 $ 5,734,443
Citigroup, Inc. 313,698 15,386,887
Countrywide Financial Corp. 355,236 13,143,732
Fannie Mae 157,669 10,182,264
Freddie Mac 41,290 2,695,824
Goldman Sachs Group, Inc. (1) 134,256 14,479,509
Providian Financial Corp. (1)* 94,000 1,567,920
SLM Corp. (1) 472,909 23,735,303
98,412,042
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.09%
Sprint Corp. - Fon Group 30,300 722,049
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.24%
AES Corp.* 162,500 2,283,125
TXU Corp. (1) 109,366 7,568,127
9,851,252
- -----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.75%
Energizer Holdings, Inc. (1)* 72,700 4,115,547
Molex, Inc., Class A (1) 384,004 9,799,782
13,915,329
- -----------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 1.51%
BJ Services Co. 51,200 2,460,160
Schlumberger Ltd. 140,389 9,552,068
12,012,228
- -----------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.30%
Whole Foods Market, Inc. (1) 26,588 2,377,499
- -----------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 5.15%
Becton, Dickinson and Co. 85,500 4,843,575
Biomet, Inc. 81,700 3,470,616
Dade Behring Holdings, Inc.* 41,800 2,388,870
DENTSPLY International, Inc. 70,195 3,935,834
Medtronic, Inc. 179,744 9,434,763
Zimmer Holdings, Inc.* 215,578 16,998,325
41,071,983
- -----------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 7.09%
Lincare Holdings, Inc. (1)* 156,905 6,511,557
UnitedHealth Group, Inc. 511,374 45,461,149
WellPoint, Inc.* 37,500 4,556,250
56,528,956
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 5.27%
Carnival Corp. (1) 347,927 20,040,595
MGM Mirage (1) 80,252 5,762,896
Starbucks Corp. (1)* 135,316 7,307,064
Wynn Resorts, Ltd. (1)* 135,157 8,860,893
41,971,448
- -----------------------------------------------------------------------------------------
</Table>
115
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.06%
Harman International Industries, Inc. 4,178 $ 508,254
- -----------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 3.00%
Procter & Gamble Co. 449,002 23,900,376
- -----------------------------------------------------------------------------------------
INSURANCE - 3.17%
AFLAC, Inc. 201,499 7,961,226
American International Group, Inc. 180,266 11,949,833
Progressive Corp. 39,600 3,312,540
W.R. Berkley Corp. 42,100 2,008,170
25,231,769
- -----------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 2.40%
IAC/InterActiveCorp (1)* 214,712 5,202,472
McAfee, Inc.* 112,000 2,895,200
Symantec Corp.* 144,100 3,364,735
VeriSign, Inc.* 104,400 2,697,696
Yahoo!, Inc.* 140,389 4,943,096
19,103,199
- -----------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.19%
Marvel Enterprises, Inc.* 82,800 1,478,808
- -----------------------------------------------------------------------------------------
MACHINERY - 3.71%
Caterpillar, Inc. 100,944 8,994,110
Danaher Corp. (1) 81,700 4,483,696
Deere & Co. 63,100 4,381,033
Dover Corp. 256,003 9,804,915
ITT Industries, Inc. 21,900 1,867,851
29,531,605
- -----------------------------------------------------------------------------------------
MARINE - 0.32%
Overseas Shipholding Group, Inc. 45,800 2,556,098
- -----------------------------------------------------------------------------------------
MEDIA - 3.64%
Comcast Corp., Class A (1)* 297,294 9,397,463
Liberty Media Corp., Class A* 1,073,561 11,207,977
Liberty Media International, Inc., Class A* 115,615 5,235,030
Walt Disney Co. (1) 111,800 3,200,834
29,041,304
- -----------------------------------------------------------------------------------------
METALS & MINING - 1.03%
Nucor Corp. 74,000 4,155,840
Phelps Dodge Corp. (1) 24,600 2,368,980
United States Steel Corp. (1) 32,500 1,683,500
8,208,320
- -----------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 1.41%
Target Corp. 75,773 3,846,995
Wal-Mart Stores, Inc. 141,200 7,398,880
11,245,875
- -----------------------------------------------------------------------------------------
OFFICE ELECTRONICS - 0.36%
Xerox Corp.* 180,900 $ 2,872,692
- -----------------------------------------------------------------------------------------
OIL & GAS - 0.85%
Burlington Resources, Inc. 58,700 2,565,777
Pogo Producing Co. 35,000 1,488,550
Sunoco, Inc. (1) 30,800 2,694,692
6,749,019
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 6.81%
Forest Laboratories, Inc. (1)* 86,700 3,600,651
Johnson & Johnson (1) 355,876 23,025,177
MGI Pharma, Inc.* 66,900 1,517,961
Pfizer, Inc. 889,724 21,495,732
Wyeth 115,614 4,581,783
54,221,304
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 1.74%
Intel Corp. 531,360 11,929,032
Microchip Technology, Inc. (1) 73,000 1,901,650
13,830,682
- -----------------------------------------------------------------------------------------
SOFTWARE - 5.51%
Adobe Systems, Inc. 83,500 4,751,150
Electronic Arts, Inc. (1)* 144,130 9,273,324
Intuit, Inc. (1)* 216,364 8,438,196
Microsoft Corp. 567,372 14,910,536
Oracle Corp.* 425,500 5,859,135
Reynolds and Reynolds Co., Class A 23,100 629,937
43,862,278
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 4.57%
Abercrombie & Fitch Co., Class A 56,000 2,806,720
AutoZone, Inc. (1)* 20,400 1,820,700
Home Depot, Inc. 359,829 14,846,545
Lowe's Cos., Inc. (1) 199,947 11,394,979
Michaels Stores, Inc. 18,500 568,875
Staples, Inc. (1) 152,000 4,976,480
36,414,299
- -----------------------------------------------------------------------------------------
TEXTILES & APPAREL - 1.99%
Coach, Inc.* 53,400 2,995,740
Nike, Inc., Class B 148,468 12,861,783
15,857,523
- -----------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 2.40%
Crown Castle International Corp.* 123,300 2,022,120
Nextel Communications, Inc., Class A* 170,600 4,894,514
Vodafone Group PLC, ADR (1) 470,715 12,229,176
19,145,810
- -----------------------------------------------------------------------------------------
Total Common Stocks (cost - $668,602,943) 777,979,946
- -----------------------------------------------------------------------------------------
</Table>
116
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATES VALUE
- -------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 3.14%
$ 25,024 Repurchase Agreement dated 01/31/05 with State Street
Bank & Trust Co., collateralized by $1,355,000 Federal
National Mortgage Association obligations, 2.750% due
02/06/07, $1,616,918 U.S. Treasury Bonds, 12.000% due
08/15/13 and $23,551,940 U.S. Treasury Notes, 1.625% to
2.250% due 03/31/05 to 04/30/06; (value - $27,148,815);
proceeds: $25,025,585 (cost - $25,024,000) 02/01/05 2.280% $ 25,024,000
- -------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- -------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 19.01%
MONEY MARKET FUNDS+ - 19.01%
++ 0 AIM Liquid Assets Portfolio 2.273 99
40,130 Barclays Prime Money Market Fund 2.363 40,129,827
314 BlackRock Provident Institutional TempFund 2.217 314,432
25,587 Dreyfus Institutional Cash Advantage 2.327 25,586,789
10 Scudder Money Market Series 2.240 9,740
85,402 UBS Private Money Market Fund LLC** 2.287 85,402,025
Total Money Market Funds (cost - $151,442,912) 151,442,912
- -------------------------------------------------------------------------------------------------------------
Total Investments (cost - $845,069,855) - 119.80% 954,446,858
Liabilities in excess of other assets - (19.80)% (157,746,819)
Net Assets - 100.00% $ 796,700,039
- -------------------------------------------------------------------------------------------------------------
</Table>
* Non-Income producing security.
(1) Security, or portion thereof, was on loan at January 31, 2005.
+ Interest rates shown reflect yield at January 31, 2005.
++ Amount represents less than 500 shares.
ADR American Depositary Receipt.
** Affiliated issuer. See table below for more information.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
SECURITY VALUE AT ENDED ENDED VALUE AT ENDED
DESCRIPTION 07/31/04 01/31/05 01/31/05 01/31/05 01/31/05
- ----------------------------------------------------------------------------------------------
UBS Private
Money Market
Fund LLC $ 36,851,223 $ 608,343,060 $ 559,792,258 $ 85,402,025 $ 13,745
- ----------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
117
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE SMALL/MEDIUM CO VALUE EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
COMMON STOCKS - 94.12%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
AEROSPACE & DEFENSE - 1.09%
Aeroflex, Inc.* 163,200 $ 1,569,984
Goodrich Corp. (1) 82,350 2,824,605
4,394,589
- -----------------------------------------------------------------------------------------
BANKS - 4.18%
Banknorth Group, Inc. (1) 115,800 4,152,588
Brookline Bancorp, Inc. 222,050 3,550,579
Commercial Federal Corp. 79,950 2,244,996
Northern Trust Corp. 157,800 6,886,392
16,834,555
- -----------------------------------------------------------------------------------------
CHEMICALS - 2.55%
Cambrex Corp. 160,400 3,578,524
Engelhard Corp. 73,350 2,204,168
RPM International, Inc. 253,400 4,467,442
10,250,134
- -----------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 11.69%
ARAMARK Corp., Class B 154,000 4,002,460
BISYS Group, Inc.* 282,800 4,346,636
Cendant Corp. 86,700 2,041,785
Certegy, Inc. (1) 66,750 2,336,250
Convergys Corp.* 380,050 5,430,914
Dun & Bradstreet Corp.* 52,600 3,056,060
Equifax, Inc. 174,900 4,949,670
Herman Miller, Inc. 190,100 5,079,472
Pitney Bowes, Inc. 123,200 5,511,968
ServiceMaster Co. 216,700 2,793,263
Steelcase, Inc., Class A 216,900 2,954,178
Valassis Communications, Inc. (1)* 134,100 4,552,695
47,055,351
- -----------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 1.20%
Andrew Corp.* 184,800 2,413,488
Emulex Corp.* 146,500 2,398,205
4,811,693
- -----------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.93%
Dot Hill Systems Corp. (1)* 592,200 3,730,860
- -----------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 1.02%
Shaw Group, Inc. (1)* 244,700 4,113,407
- -----------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.42%
Pactiv Corp.* 75,400 1,674,634
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 3.70%
Janus Capital Group, Inc. 339,500 5,034,785
Raymond James Financial, Inc. 98,250 3,062,452
T. Rowe Price Group, Inc. (1) 74,300 4,446,855
Waddell & Reed Financial, Inc., Class A 106,600 2,331,342
14,875,434
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.12%
CenturyTel, Inc. 138,300 $ 4,508,580
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 2.66%
IDACORP, Inc. (1) 106,200 3,216,798
Puget Energy, Inc. 232,750 5,590,655
WPS Resources Corp. 37,500 1,916,250
10,723,703
- -----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 3.92%
Brady Corp., Class A 250,600 7,114,534
Energizer Holdings, Inc.* 108,600 6,147,846
Paxar Corp.* 105,050 2,505,442
15,767,822
- -----------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.39%
Symbol Technologies, Inc. 191,700 3,508,110
Vishay Intertechnology, Inc. (1)* 160,300 2,095,121
5,603,231
- -----------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.57%
Superior Energy Services, Inc.* 143,100 2,278,152
- -----------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.34%
Casey's General Stores, Inc. 78,800 1,388,456
- -----------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.03%
Brooklyn Cheesecake & Desserts Co., Inc. (2)* 882,000 114,660
- -----------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 4.69%
Fisher Scientific International, Inc. (1)* 113,960 7,196,574
Invacare Corp. 89,300 4,156,022
Sybron Dental Specialties, Inc.* 199,199 7,521,754
18,874,350
- -----------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 8.28%
Accredo Health, Inc.* 139,550 4,155,799
Beverly Enterprises, Inc. (1)* 426,150 5,211,814
Health Management Associates, Inc., Class A (1) 177,400 3,916,992
IMS Health, Inc. 348,600 8,150,268
Manor Care, Inc. 65,100 2,249,205
Omnicare, Inc. (1) 313,000 9,624,750
33,308,828
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.41%
Hilton Hotels Corp. (1) 73,850 1,643,163
- -----------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 3.49%
American Greetings Corp., Class A 148,400 3,582,376
Black & Decker Corp. 75,200 6,196,480
Mohawk Industries, Inc.* 48,200 4,266,182
14,045,038
- -----------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.78%
Clorox Co. 52,800 3,137,376
- -----------------------------------------------------------------------------------------
</Table>
118
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
INSURANCE - 7.58%
American Financial Group, Inc. (1) 127,200 $ 3,916,488
HCC Insurance Holdings, Inc. (1) 158,900 5,223,043
Horace Mann Educators Corp. 108,100 1,991,202
Markel Corp. (1)* 19,500 6,649,500
MBIA, Inc. (1) 122,000 7,288,280
SAFECO Corp. (1) 38,850 1,798,755
XL Capital Ltd., Class A (1) 48,700 3,641,786
30,509,054
- -----------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.95%
Insight Enterprises, Inc.* 198,250 3,836,138
- -----------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.38%
iPass, Inc.* 261,200 1,548,916
- -----------------------------------------------------------------------------------------
IT CONSULTING & SERVICES - 1.88%
SunGard Data Systems, Inc.* 281,600 7,572,224
- -----------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 2.46%
Hasbro, Inc. 151,600 2,971,360
K2, Inc.* 298,800 4,201,128
Mattel, Inc. 140,050 2,723,973
9,896,461
- -----------------------------------------------------------------------------------------
MACHINERY - 6.88%
AGCO Corp. (1)* 185,350 3,805,236
Harsco Corp. 73,250 3,998,717
IDEX Corp. 152,800 5,890,440
Mueller Industries, Inc. (1) 131,400 4,165,380
Stewart & Stevenson Services, Inc. 153,250 3,132,430
Terex Corp. (1)* 45,900 1,975,995
Timken Co. 183,750 4,733,400
27,701,598
- -----------------------------------------------------------------------------------------
MEDIA - 4.64%
Harte-Hanks, Inc. 155,950 4,124,877
Interpublic Group of Cos., Inc. (1)* 307,000 4,006,350
Lee Enterprises, Inc. 38,600 1,719,630
McClatchy Co., Class A 76,800 5,370,624
Radio One, Inc., Class D* 158,000 2,480,600
Tribune Co. 24,100 963,518
18,665,599
- -----------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 1.72%
Neiman Marcus Group, Inc., Class A 103,500 $ 6,924,150
- -----------------------------------------------------------------------------------------
MULTI-UTILITIES - 1.07%
Avista Corp. 143,500 2,535,645
Vectren Corp. 63,800 1,761,518
4,297,163
- -----------------------------------------------------------------------------------------
OIL & GAS - 1.10%
Chesapeake Energy Corp. 252,650 4,439,061
- -----------------------------------------------------------------------------------------
ROAD & RAIL - 2.43%
CSX Corp. (1) 103,050 4,118,909
Swift Transportation Co., Inc. (1)* 254,450 5,674,235
9,793,144
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.44%
MKS Instruments, Inc. (1)* 113,800 1,780,970
- -----------------------------------------------------------------------------------------
SOFTWARE - 1.50%
Cadence Design Systems, Inc. (1)* 300,200 4,001,666
Sybase, Inc.* 104,450 2,033,642
6,035,308
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 5.44%
Men's Wearhouse, Inc.* 195,500 6,504,285
RadioShack Corp. 127,600 4,226,112
Regis Corp. 42,400 1,691,760
Sports Authority, Inc. (1)* 174,450 4,425,797
United Rentals, Inc. (1)* 296,050 5,035,810
21,883,764
- -----------------------------------------------------------------------------------------
TEXTILES & APPAREL - 1.19%
Russell Corp. 265,700 4,782,600
Total Common Stocks (cost - $296,271,178) 378,800,166
- -----------------------------------------------------------------------------------------
</Table>
119
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATES VALUE
- -------------------------------------------------------------------------------------------------------------
CONVERTIBLE BOND - 0.00%
AEROSPACE & DEFENSE - 0.00%
$ 0 Timco Aviation Services, Inc. (2)^^ (cost - $0) 01/02/07 8.000% $ 0
<Caption>
NUMBER OF
WARRANTS
- -------------------------------------------------------------------------------------------------------------
WARRANTS - 0.00%
CONSUMER PRODUCTS - 0.00%
American Banknote Corp., strike price $10.00, expires
10/01/07 (2)^^ 122 0
American Banknote Corp., strike price $12.50, expires
10/01/07 (2)^^ 122 0
0
- -------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.00%
Imperial Credit Industries, Inc., strike price $2.15,
expires 01/31/08 (2)^^ 4,914 0
Total Warrants (cost - $0) 0
- -------------------------------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT MATURITY
(000) DATE
- -------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 7.01%
$ 28,228 Repurchase Agreement dated 01/31/05 with State Street
Bank & Trust Co., collateralized by $1,926,000
U.S. Treasury Bonds, 12.000% due 08/15/13 and
$28,054,019 U.S. Treasury Notes, 1.625% to 2.250% due
03/31/05 to 04/30/06; (value - $30,726,459); proceeds;
$28,229,788 (cost - $28,228,000) 02/01/05 2.280 28,228,000
- -------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- -------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 14.28%
MONEY MARKET FUNDS^ - 14.28%
+ 0 AIM Liquid Assets Portfolio 2.273 325
18,645 Barclays Prime Money Market Fund 2.363 18,644,650
3,003 BlackRock Provident Institutional TempFund 2.217 3,002,937
+ 0 Deutsche Cash Reserve Institutional Fund 2.230 133
19,296 Dreyfus Institutional Cash Advantage Fund 2.327 19,296,276
7 Scudder Money Market Series 2.240 7,202
16,512 UBS Private Money Market Fund LLC** 2.287 16,512,031
Total Money Market Funds (cost - $57,463,554) 57,463,554
- -------------------------------------------------------------------------------------------------------------
Total Investments (cost - $381,962,732) - 115.41% 464,491,720
Liabilities in excess of other assets - (15.41)% (62,012,644)
Net Assets - 100.00% $ 402,479,076
- -------------------------------------------------------------------------------------------------------------
</Table>
* Non-Income producing security.
^ Interest rates shown reflect yield at January 31, 2005.
^^ Security is being fair valued by a valuation committee under the
direction of the board of trustees.
+ Amount represents less than 500 shares.
(1) Security, or portion thereof, was on loan at January 31, 2005.
(2) Illiquid securities representing 0.03% of net assets as of January 31,
2005.
120
<Page>
** Affiliated issuer. See table below for more information.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
SECURITY VALUE AT ENDED ENDED VALUE AT ENDED
DESCRIPTION 07/31/04 01/31/05 01/31/05 01/31/05 01/31/05
- ----------------------------------------------------------------------------------------------
UBS Private
Money Market
Fund LLC $ 18,809,139 $ 258,300,012 $ 260,597,120 $ 16,512,031 $ 5,631
- ----------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
121
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE SMALL/MEDIUM CO GROWTH EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
COMMON STOCKS - 94.52%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
AEROSPACE & DEFENSE - 1.14%
Engineered Support Systems, Inc. 77,300 $ 4,484,173
- -----------------------------------------------------------------------------------------
AIR FREIGHT & COURIERS - 1.44%
UTI Worldwide, Inc. (1) 82,700 5,696,376
- -----------------------------------------------------------------------------------------
AUTO COMPONENTS - 1.28%
Gentex Corp. (1) 149,600 5,060,968
- -----------------------------------------------------------------------------------------
BANKS - 7.36%
City National Corp. 81,600 5,694,864
Cullen/Frost Bankers, Inc. (1) 124,700 5,855,912
Downey Financial Corp. 93,400 5,958,920
Investors Financial Services Corp. (1) 51,200 2,580,992
Sovereign Bancorp, Inc. (1) 393,100 8,939,094
29,029,782
- -----------------------------------------------------------------------------------------
BIOTECHNOLOGY - 9.08%
Amylin Pharmaceuticals, Inc. (1)* 239,500 5,367,195
CV Therapeutics, Inc. (1)* 451,200 9,299,232
Invitrogen Corp. (1)* 98,400 6,761,064
Protein Design Labs, Inc. (1)* 314,700 6,347,499
Rigel Pharmaceuticals, Inc.* 191,600 3,676,804
Telik, Inc. (1)* 229,000 4,355,580
35,807,374
- -----------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 4.39%
Bright Horizons Family Solutions, Inc.* 88,700 5,197,820
Resources Connection, Inc. (1)* 129,700 6,615,997
Senomyx, Inc.* 614,200 5,497,090
17,310,907
- -----------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.97%
C-COR.net Corp. (1)* 478,500 3,813,645
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 2.31%
Affiliated Managers Group, Inc. (1)* 82,200 5,212,302
Eaton Vance Corp. 156,000 3,904,680
9,116,982
- -----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.52%
Paxar Corp.* 251,600 6,000,660
- -----------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.84%
TTM Technologies, Inc. (1)* 353,900 3,326,660
- -----------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 3.81%
Animas Corp. (1)* 250,400 4,542,256
Fisher Scientific International, Inc.* 58,000 3,662,700
Immucor, Inc. (1)* 222,950 6,824,500
15,029,456
- -----------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 2.60%
Advisory Board Co.* 50,600 $ 1,803,890
Coventry Health Care, Inc. (1)* 74,050 4,213,445
Express Scripts, Inc. (1)* 57,300 4,251,087
10,268,422
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 10.54%
Cheesecake Factory, Inc. (1)* 187,705 6,076,011
Four Seasons Hotels, Inc. (1) 106,200 8,173,152
P.F. Chang's China Bistro, Inc.* 88,000 4,891,920
Royal Caribbean Cruises Ltd. (1) 127,400 6,752,200
Sonic Corp. (1)* 219,693 6,995,025
Wynn Resorts, Ltd. (1)* 132,200 8,667,032
41,555,340
- -----------------------------------------------------------------------------------------
INSURANCE - 2.77%
PartnerRe Ltd. (1) 172,700 10,943,999
- -----------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 3.57%
Akamai Technologies, Inc. (1)* 304,900 3,994,190
Ask Jeeves, Inc. (1)* 153,100 4,341,916
Audible, Inc.* 205,700 5,732,859
14,068,965
- -----------------------------------------------------------------------------------------
IT CONSULTING & SERVICES - 0.92%
Lionbridge Technologies, Inc.* 575,800 3,616,024
- -----------------------------------------------------------------------------------------
MEDIA - 5.00%
ADVO, Inc. 118,700 4,365,786
Getty Images, Inc. (1)* 111,400 7,764,580
Mediacom Communications Corp., Class A* 351,100 2,099,578
XM Satellite Radio Holdings, Inc., Class A (1)* 171,800 5,482,138
19,712,082
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 6.46%
Barr Pharmaceuticals, Inc.* 179,250 8,523,337
Inspire Pharmaceuticals, Inc.* 229,800 3,401,040
Medicis Pharmaceutical Corp., Class A 197,500 7,129,750
MGI Pharma, Inc. (1)* 173,200 3,929,908
POZEN, Inc.* 322,900 2,489,559
25,473,594
- -----------------------------------------------------------------------------------------
REAL ESTATE - 3.01%
CB Richard Ellis Group, Inc., Class A* 216,900 7,589,331
Host Marriott Corp. (1) 266,800 4,268,800
11,858,131
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 5.86%
Cymer, Inc. (1)* 169,300 4,489,836
Lam Research Corp. (1)* 264,800 7,086,048
Micrel, Inc.* 314,700 2,719,008
- -----------------------------------------------------------------------------------------
</Table>
122
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - (CONCLUDED)
O2Micro International Ltd.* 406,700 $ 3,607,429
PMC-Sierra, Inc. (1)* 505,500 5,196,540
23,098,861
- -----------------------------------------------------------------------------------------
SOFTWARE - 7.23%
Citrix Systems, Inc.* 307,900 6,604,455
Informatica Corp.* 118,800 919,512
Jack Henry & Associates, Inc. 280,400 5,829,516
Mercury Interactive Corp. (1)* 146,500 6,412,305
Red Hat, Inc. (1)* 435,800 4,728,430
SafeNet, Inc* 119,100 4,042,254
28,536,472
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 7.41%
American Eagle Outfitters, Inc. (1) 169,800 $ 8,625,840
Cost Plus, Inc. (1)* 119,500 3,134,485
Design Within Reach, Inc. (1)* 224,000 3,563,840
PETsMART, Inc. 297,500 8,993,425
Williams-Sonoma, Inc. (1)* 142,200 4,920,120
29,237,710
- -----------------------------------------------------------------------------------------
TEXTILES & APPAREL - 3.52%
Coach, Inc.* 247,400 13,879,140
- -----------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 1.49%
MSC Industrial Direct Co., Inc., Class A 169,800 5,878,476
Total Common Stocks (cost - $302,448,754) 372,804,199
- -----------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATES
- ----------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 5.66%
$ 22,333 Repurchase Agreement dated 01/31/05 with
State Street Bank & Trust Co.,
collateralized by $1,505,618 U.S. Treasury
Bonds, 12.000% due 08/15/13 and
$22,193,576 U.S. Treasury Notes 1.625% to
5.750% due 03/31/05 to 04/30/06; (value -
$24,291,580); proceeds: $22,334,414 (cost
- $22,333,000) 02/01/05 2.280% 22,333,000
- ----------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- ------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 31.97%
MONEY MARKET FUNDS+ - 31.97%
# 0 AIM Liquid Assets Portfolio 2.273 197
23,647 Barclays Prime Money Market Fund 2.363 23,647,441
2 BlackRock Provident Institutional TempFund 2.217 1,645
25,020 Dreyfus Institutional Cash Advantage Fund 2.327 25,019,654
31 Scudder Money Market Series 2.240 30,564
77,405 UBS Private Money Market Fund LLC** 2.287 77,405,052
Total Money Market Funds (cost - $126,104,553) 126,104,553
- ------------------------------------------------------------------------------------------------------
Total Investments (cost - $450,886,307) - 132.15% 521,241,752
Liabilities in excess of other assets - (32.15)% (126,813,696)
Net Assets - 100.00% $ 394,428,056
- ------------------------------------------------------------------------------------------------------
</Table>
* Non-Income producing security.
(1) Security, or portion thereof, was on loan at January 31, 2005.
+ Interest rates shown reflect yield at January 31, 2005.
# Amount represents less than 500 shares.
** Affiliated issuer. See table below for more information.
<Table>
<Caption>
PURCHASES SALES INCOME FROM
DURING THE DURING THE AFFILIATE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS
SECURITY VALUE AT ENDED ENDED VALUE AT ENDED
DESCRIPTION 07/31/04 01/31/05 01/31/05 01/31/05 01/31/05
- -----------------------------------------------------------------------------------------------
UBS Private
Money Market
Fund LLC $ 80,045,105 $ 290,275,723 $ 292,915,776 $ 77,405,052 $ 16,925
</Table>
See accompanying notes to financial statements
123
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERNATIONAL EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
COMMON STOCKS - 97.07%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
AUSTRALIA - 5.27%
AIR FREIGHT & COURIERS - 0.01%
Toll Holdings Ltd. 7,300 $ 74,731
- -----------------------------------------------------------------------------------------
BANKS - 1.47%
Australia & New Zealand Banking Group Ltd. 59,298 946,172
Commonwealth Bank of Australia 34,125 886,442
Macquarie Bank Ltd. 6,900 261,208
National Australia Bank Ltd. 303,386 6,966,278
Suncorp-Metway Ltd. 19,974 288,681
Westpac Banking Corp. 59,173 880,437
10,229,218
- -----------------------------------------------------------------------------------------
BEVERAGES - 0.83%
Coca-Cola Amatil Ltd. 10,313 62,738
Foster's Group Ltd. 1,345,188 5,431,182
Lion Nathan Ltd. 29,360 186,076
Southcorp Ltd.* 18,056 61,847
5,741,843
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.02%
Orica Ltd. 11,600 172,687
- -----------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.05%
Brambles Industries Ltd. (1) 48,063 273,016
Computershare Ltd. 23,400 107,352
380,368
- -----------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.02%
Leighton Holdings Ltd. 15,300 143,941
- -----------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.06%
CSR Ltd. 41,500 80,722
Rinker Group Ltd. 37,697 327,189
407,911
- -----------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.46%
Amcor Ltd. 575,300 3,165,384
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.53%
Telstra Corp. Ltd. (1) 952,971 3,648,214
- -----------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.56%
Coles Myer Ltd. 507,317 3,648,388
Woolworths Ltd. 19,400 219,346
3,867,734
- -----------------------------------------------------------------------------------------
GAS UTILITIES - 0.02%
Australian Gas Light Co. Ltd. 11,000 117,211
- -----------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.00%
Cochlear Ltd. 1,900 38,209
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.05%
Aristocrat Leisure Ltd. 10,000 $ 84,857
TABCORP Holdings Ltd. 17,760 243,882
328,739
- -----------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.07%
Wesfarmers Ltd. 15,857 482,933
- -----------------------------------------------------------------------------------------
INSURANCE - 0.11%
AMP Ltd. 49,530 292,865
Insurance Australia Group Ltd. 55,799 281,069
QBE Insurance Group Ltd. 18,300 216,269
790,203
- -----------------------------------------------------------------------------------------
MEDIA - 0.01%
John Fairfax Holdings Ltd. 20,400 69,718
- -----------------------------------------------------------------------------------------
METALS & MINING - 0.71%
Alumina Ltd. 33,983 160,381
BHP Billiton Ltd. 116,378 1,467,344
BlueScope Steel Ltd. 20,300 145,674
Newcrest Mining Ltd. (1) 182,021 2,403,614
Rio Tinto Ltd. (1) 11,784 391,763
WMC Resources Ltd. 61,552 341,053
4,909,829
- -----------------------------------------------------------------------------------------
OIL & GAS - 0.06%
Origin Energy Ltd. 18,000 97,225
Santos Ltd. 23,600 169,721
Woodside Petroleum Ltd. 8,864 141,848
408,794
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.05%
CSL Ltd. 9,036 216,726
Mayne Group Ltd. 36,300 129,120
345,846
- -----------------------------------------------------------------------------------------
REAL ESTATE - 0.16%
General Property Trust 80,400 241,124
Lend Lease Corp. Ltd. 15,600 165,018
Mirvac Group 32,200 117,530
Stockland 38,100 173,315
Westfield Group* 32,264 426,051
1,123,038
- -----------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.02%
Patrick Corp. Ltd. 18,200 87,868
Transurban Group 8,300 53,065
140,933
- -----------------------------------------------------------------------------------------
Total Australia Common Stocks 36,587,484
- -----------------------------------------------------------------------------------------
</Table>
124
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------------------------------------------------
AUSTRIA - 0.04%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.04%
Telekom Austria AG 16,882 $ 316,894
- -----------------------------------------------------------------------------------------
BELGIUM - 1.22%
BANKS - 0.04%
Dexia 2,721 60,795
KBC Bancassurance Holding 2,600 200,812
261,607
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.80%
Fortis (1) 188,662 5,098,135
Fortis 16,300 439,831
5,537,966
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.38%
Electrabel SA 6,084 2,680,609
Total Belgium Common Stocks 8,480,182
- -----------------------------------------------------------------------------------------
BRAZIL - 0.73%
METALS & MINING - 0.33%
Companhia Siderurgica Nacional SA (CSN) 112,500 2,251,289
- -----------------------------------------------------------------------------------------
OIL & GAS - 0.40%
Petroleo Brasileiro SA, ADR (1) 78,260 2,805,621
Total Brazil Common Stocks 5,056,910
- -----------------------------------------------------------------------------------------
DENMARK - 0.16%
BANKS - 0.08%
Danske Bank AS 19,600 572,532
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.08%
Novo-Nordisk AS 9,901 527,267
Total Denmark Common Stocks 1,099,799
- -----------------------------------------------------------------------------------------
FINLAND - 0.90%
COMMUNICATIONS EQUIPMENT - 0.32%
Nokia Oyj 142,824 2,187,594
- -----------------------------------------------------------------------------------------
IT CONSULTING & SERVICES - 0.07%
Tietoenator Oyj 17,178 502,709
- -----------------------------------------------------------------------------------------
MACHINERY - 0.03%
Metso Oyj 16,052 242,725
- -----------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.48%
Stora Enso Oyj (1) 27,400 394,676
UPM-Kymmene Oyj 138,200 2,925,645
3,320,321
- -----------------------------------------------------------------------------------------
Total Finland Common Stocks 6,253,349
- -----------------------------------------------------------------------------------------
FRANCE - 7.97%
AEROSPACE & DEFENSE - 0.13%
European Aeronautic Defense and Space Co. 9,551 $ 291,957
Thales SA 13,225 603,036
894,993
- -----------------------------------------------------------------------------------------
AIRLINES - 0.01%
Air France-KLM 3,673 67,271
- -----------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.08%
Compagnie Generale des Etablissements Michelin 5,400 349,354
Valeo SA 5,548 226,075
575,429
- -----------------------------------------------------------------------------------------
AUTOMOBILES - 0.29%
Peugeot SA 15,707 977,265
Renault SA 12,298 1,005,147
1,982,412
- -----------------------------------------------------------------------------------------
BANKS - 2.20%
BNP Paribas SA 104,410 7,533,336
Credit Agricole SA* (1) 46,812 1,394,348
Societe Generale 63,798 6,353,720
15,281,404
- -----------------------------------------------------------------------------------------
BEVERAGES - 0.10%
Pernod-Ricard (1) 4,884 691,406
- -----------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.65%
Cie de Saint-Gobain 72,796 4,495,091
- -----------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.04%
Alcatel SA* 19,105 274,197
- -----------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.57%
Vinci SA 27,760 3,980,520
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.30%
France Telecom 65,412 2,052,396
- -----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.02%
Schneider Electric SA* 1,420 108,471
- -----------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.13%
Carrefour SA* 17,562 905,416
- -----------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.04%
Groupe Danone 2,690 250,718
- -----------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.04%
Thomson 11,584 293,852
- -----------------------------------------------------------------------------------------
INSURANCE - 0.16%
Axa 44,469 1,079,356
- -----------------------------------------------------------------------------------------
</Table>
125
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------------------------------------------------
FRANCE - (CONCLUDED)
IT CONSULTING & SERVICES - 0.09%
Altran Technologies SA 10,835 $ 118,782
Cap Gemini SA* 15,619 505,950
624,732
- -----------------------------------------------------------------------------------------
MEDIA - 0.50%
Lagardere S.C.A. 42,709 3,223,485
Societe Television Francaise 1 2,400 78,088
Vivendi Universal SA* 6,429 203,395
3,504,968
- -----------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.20%
Suez SA 30,804 828,790
Veolia Environnement 15,596 557,453
1,386,243
- -----------------------------------------------------------------------------------------
OIL & GAS - 1.33%
Total SA 43,155 9,253,897
- -----------------------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.12%
L'Oreal SA 10,815 809,924
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.42%
Sanofi-Synthelabo SA 39,090 2,917,217
- -----------------------------------------------------------------------------------------
TEXTILES & APPAREL - 0.55%
LVMH Moet Hennessy Louis Vuitton SA 55,472 3,854,150
Total France Common Stocks 55,284,063
- -----------------------------------------------------------------------------------------
GERMANY - 6.18%
AIRLINES - 0.01%
Deutsche Lufthansa AG* 4,884 68,249
- -----------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.43%
Continental AG 42,788 2,970,087
- -----------------------------------------------------------------------------------------
AUTOMOBILES - 0.19%
Bayerische Motoren Werke (BMW) AG 6,547 274,550
DaimlerChrysler AG 22,588 1,027,027
1,301,577
- -----------------------------------------------------------------------------------------
BANKS - 0.86%
Bayerische Hypo-und Vereinsbank AG* 139,482 3,067,333
Commerzbank AG* 44,983 956,965
Deutsche Bank AG 22,549 1,917,942
5,942,240
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.86%
BASF AG 16,629 1,135,644
Bayer AG (1) 144,004 4,578,403
Lanxess* 14,400 278,571
5,992,618
- -----------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.10%
HeidelbergCement AG 10,459 $ 703,506
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.03%
Deutsche Boerse AG 3,300 205,192
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.98%
Deutsche Telekom AG* (1) 313,025 6,765,364
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.33%
E.ON AG 25,592 2,292,530
- -----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.31%
Siemens AG (1) 26,702 2,117,681
- -----------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.09%
Celesio AG 7,900 613,043
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.13%
TUI AG* (1) 37,817 882,898
- -----------------------------------------------------------------------------------------
INSURANCE - 0.25%
Allianz AG 9,660 1,145,269
Muenchener Rueckversicherungs AG 5,241 598,953
1,744,222
- -----------------------------------------------------------------------------------------
METALS & MINING - 0.07%
ThyssenKrupp AG (1) 24,159 516,161
- -----------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.96%
RWE AG 115,586 6,664,227
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.43%
Schering AG 44,481 3,009,328
- -----------------------------------------------------------------------------------------
SOFTWARE - 0.14%
SAP AG 6,146 955,706
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.01%
Douglas Holding AG 2,903 102,930
Total Germany Common Stocks 42,847,559
- -----------------------------------------------------------------------------------------
GREECE - 0.65%
BANKS - 0.46%
National Bank of Greece SA 94,015 3,174,129
- -----------------------------------------------------------------------------------------
BUILDING PRODUCTS--CEMENT - 0.14%
Titan Cement Co. 29,680 965,686
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.00%
Hellenic Telecommunications Organization SA 1,000 17,885
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.03%
Public Power Corp. 7,314 212,993
- -----------------------------------------------------------------------------------------
GAMING - 0.02%
OPAP SA 6,430 171,828
Total Greece Common Stocks 4,542,521
- -----------------------------------------------------------------------------------------
</Table>
126
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------------------------------------------------
HONG KONG - 1.66%
AIRLINES - 0.01%
Cathay Pacific Airways Ltd. 33,000 $ 59,443
- -----------------------------------------------------------------------------------------
BANKS - 0.07%
Bank of East Asia Ltd. 66,200 197,329
BOC Hong Kong Holdings Ltd. (1) 61,000 112,226
Hang Seng Bank Ltd. 15,600 211,003
520,558
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.31%
Hong Kong Exchanges & Clearing Ltd. 821,000 2,047,263
Swire Pacific Ltd. 13,500 106,011
2,153,274
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.00%
PCCW Ltd. 38,000 21,436
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.47%
CLP Holdings Ltd. 71,500 406,089
Hong Kong Electric Holdings 632,000 2,827,831
3,233,920
- -----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.01%
Johnson Electric Holdings Ltd. 39,500 37,728
- -----------------------------------------------------------------------------------------
GAS UTILITIES - 0.01%
Hong Kong & China Gas 50,000 103,847
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.02%
Li & Fung Ltd. 58,000 95,552
Shangri-La Asia Ltd. (1) 44,000 59,514
155,066
- -----------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.10%
Hutchison Whampoa Ltd. 75,000 682,701
- -----------------------------------------------------------------------------------------
MEDIA - 0.01%
Television Broadcasts Ltd. 12,000 57,078
- -----------------------------------------------------------------------------------------
REAL ESTATE - 0.59%
Cheung Kong Holdings Ltd. 48,500 444,589
Hang Lung Properties Ltd. 34,000 50,783
Henderson Land Development 33,000 156,117
Hysan Development Co. Ltd. 22,000 42,026
Sun Hung Kai Properties Ltd. 37,000 343,915
Wharf Holdings Ltd. 939,000 3,027,712
4,065,142
- -----------------------------------------------------------------------------------------
ROAD & RAIL - 0.01%
MTR Corp. 25,500 40,049
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.04%
Esprit Holdings Ltd. 39,000 226,003
Yue Yuen Industrial Holdings 14,500 37,831
263,834
- -----------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.01%
SmarTone Telecommunications Holdings Ltd. 91,500 $ 105,578
Total Hong Kong Common Stocks 11,499,654
- -----------------------------------------------------------------------------------------
INDONESIA - 0.21%
AUTOMOBILES - 0.21%
PT Astra International Tbk 1,363,500 1,495,001
- -----------------------------------------------------------------------------------------
IRELAND - 0.77%
BANKS - 0.66%
Allied Irish Banks PLC 68,214 1,356,035
Anglo Irish Bank Corp PLC 124,838 3,039,844
Bank of Ireland 10,400 165,395
4,561,274
- -----------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.11%
CRH PLC 28,451 753,985
Total Ireland Common Stocks 5,315,259
- -----------------------------------------------------------------------------------------
ITALY - 4.49%
AUTOMOBILES - 0.00%
Fiat SpA* 2,100 17,410
- -----------------------------------------------------------------------------------------
BANKS - 1.88%
Banca Intesa SpA 1,835,714 8,524,865
Banca Nazionale del Lavoro SpA* (1) 46,515 125,059
Banco Popolare di Verona e Novara 11,300 216,975
UniCredito Italiano SpA 760,713 4,184,667
13,051,566
- -----------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.14%
Buzzi Unicem SpA 57,465 937,105
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.76%
Telecom Italia SpA 1,601,062 5,284,915
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.02%
Enel SpA 17,920 168,423
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.35%
Autogrill SpA* 151,001 2,409,289
- -----------------------------------------------------------------------------------------
INSURANCE - 0.09%
Assicurazioni Generali SpA 19,318 639,370
- -----------------------------------------------------------------------------------------
MEDIA - 0.12%
Mediaset SpA 56,937 793,414
Seat Pagine Gialle SpA* 33,593 14,670
808,084
- -----------------------------------------------------------------------------------------
OIL & GAS - 0.96%
ENI SpA* 275,007 6,682,166
- -----------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.17%
Autostrade SpA* 40,765 1,177,565
Total Italy Common Stocks 31,175,893
- -----------------------------------------------------------------------------------------
</Table>
127
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
JAPAN - 19.71%
AIR FREIGHT & COURIERS - 0.06%
Yamato Transport Co. Ltd. 30,000 $ 449,761
- -----------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.47%
Denso Corp. 125,000 3,250,205
- -----------------------------------------------------------------------------------------
AUTOMOBILES - 1.51%
Honda Motor Co. Ltd. 31,200 1,637,582
Nissan Motor Co. Ltd. 88,400 935,653
Suzuki Motor Corp. 5,700 104,353
Toyota Motor Corp. 200,600 7,814,199
10,491,787
- -----------------------------------------------------------------------------------------
BANKS - 1.26%
77 Bank Ltd. 7,000 50,747
Bank of Fukuoka Ltd. (1) 20,000 127,785
Bank of Kyoto Ltd. (1) 40,000 345,657
Bank of Yokohama Ltd. 285,000 1,798,898
Chiba Bank Ltd. 39,000 258,605
Chugoku Bank Ltd. 22,000 278,788
Joyo Bank Ltd. 47,000 246,687
Mitsubishi Tokyo Financial Group, Inc. 130 1,227,683
Sumitomo Mitsui Financial Group, Inc. 110 771,930
Sumitomo Trust & Banking Co. Ltd. 390,000 2,650,138
Suruga Bank Ltd. 3,000 24,764
UFJ Holdings, Inc.* 164 981,258
8,762,940
- -----------------------------------------------------------------------------------------
BEVERAGES - 0.11%
Asahi Breweries Ltd. 32,300 403,691
ITO EN Ltd. 2,400 127,128
Kirin Brewery Co. Ltd. 25,000 253,250
784,069
- -----------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.10%
Asahi Glass Co. Ltd. 20,000 211,106
Nippon Sheet Glass Co. Ltd. 12,000 51,965
PanaHome Corp. 14,000 77,270
Tostem Inax Holding Corp. 13,000 236,992
TOTO Ltd. 11,000 100,053
677,386
- -----------------------------------------------------------------------------------------
CHEMICALS - 1.18%
Asahi Kasei Corp. 105,000 519,646
Daicel Chemical Industries Ltd. 18,000 96,564
Dainippon Ink and Chemicals, Inc. 49,000 123,145
JSR Corp. 150,000 3,189,793
Kuraray Co. Ltd. 21,000 193,650
Mitsubishi Chemical Corp. 145,000 461,118
Mitsui Chemicals, Inc. 90,000 $ 521,096
Shin-Etsu Chemical Co. Ltd. 1,200 47,557
Showa Denko K.K. 1,005,000 2,399,449
Sumitomo Chemical Co. Ltd. 29,000 150,249
Tokuyama Corp. 5,000 31,173
Ube Industries Ltd. 41,000 74,902
Zeon Corp. (1) 41,900 346,686
8,155,028
- -----------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.06%
Benesse Corp. 7,400 264,656
Nichii Gakkan Co. 2,300 78,701
Secom Co. Ltd. 1,300 51,771
395,128
- -----------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.23%
Fujitsu Ltd. 119,000 692,455
NEC Electronics Corp. 78,000 447,847
Toshiba Corp. 110,000 445,508
1,585,810
- -----------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.11%
COMSYS Holdings Corp. 10,000 94,534
JGC Corp. 4,000 38,355
Kurita Water Industries Ltd. 20,700 313,536
Nishimatsu Construction Co. Ltd. (1) 43,000 157,528
Obayashi Corp. 26,000 166,623
770,576
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 1.59%
ACOM Co. Ltd. 910 64,036
Aeon Credit Service Co. Ltd. 500 35,184
Aiful Corp. 4,900 556,996
Daiwa Securities Group Inc. 96,000 651,414
Hitachi Capital Corp. 2,100 41,409
Hokuhoku Financial Group, Inc. 56,000 151,564
Mizuho Financial Group, Inc. 1,130 5,450,389
Nomura Holdings Co. Ltd. 57,400 755,124
Orix Corp. 24,200 3,202,339
Promise Co. Ltd. 1,950 137,408
11,045,863
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.16%
Nippon Telegraph & Telephone Corp. (NTT) 257 1,085,583
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.35%
Chubu Electric Power Co., Inc. 7,300 172,877
Kansai Electric Power Co., Inc. 14,800 287,546
Kyushu Electric Power Co., Inc. 33,100 655,889
- -----------------------------------------------------------------------------------------
</Table>
128
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------
JAPAN - (CONTINUED)
Electric Utilities - (concluded)
Tohoku Electric Power Co., Inc. 11,600 $ 206,536
Tokyo Electric Power Co., Inc. 47,700 1,138,843
2,461,691
- -----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.57%
Fanuc Ltd. 7,600 513,499
Fujikura Ltd. 200 893
Mitsubishi Electric Corp. 135,000 665,507
Nitto Denko Corp. 3,900 207,713
Sumitomo Electric Industries Ltd. 233,700 2,557,135
3,944,747
- -----------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.92%
Alps Electric Co. Ltd. (1) 34,000 466,019
Casio Computer Co. Ltd. 2,200 30,856
Citizen Watch Co. Ltd. 28,000 254,410
Hirose Electric Co. Ltd. 1,000 106,230
Hitachi Chemical Co. Ltd. 4,800 82,169
Hitachi Ltd. 490,000 3,258,615
Hoya Corp. 3,300 340,351
Keyence Corp. 800 183,809
Kyocera Corp. 10,300 742,719
Mabuchi Motor Co. Ltd. 2,200 150,771
Omron Corp. 4,100 99,077
Rohm Co. Ltd. 4,400 401,063
TDK Corp. 3,500 243,584
6,359,673
- -----------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.06%
FamilyMart Co. Ltd. 1,900 61,157
Seven-Eleven Japan Co. Ltd. 7,000 212,459
York-Benimaru Co. Ltd. 5,500 170,654
444,270
- -----------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.06%
Ajinomoto Co., Inc. 25,000 303,030
Katokichi Co. Ltd. 2,500 51,593
Nissin Food Products Co. Ltd. 1,500 40,017
Yamazaki Baking Co. Ltd. 3,000 28,679
423,319
- -----------------------------------------------------------------------------------------
GAS UTILITIES - 0.08%
Tokyo Gas Co. Ltd. (1) 131,000 541,955
- -----------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.06%
Terumo Corp. 15,200 440,037
- -----------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.06%
Kuraya Sanseido, Inc. 7,300 91,378
Suzuken Co. Ltd. 12,100 321,637
413,015
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.02%
Namco Ltd. 8,600 $ 109,563
- -----------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 1.00%
Daito Trust Construction Co. Ltd. 1,200 55,560
Daiwa House Industry Co. Ltd. 16,000 185,124
Matsushita Electric Industrial Co. Ltd. 269,000 3,996,453
Matsushita Electric Works, Ltd. 10,000 89,218
Nintendo Co. Ltd. 5,000 567,397
Sanyo Electric Co. Ltd. 16,000 51,655
Sekisui House Ltd. 4,000 46,397
Sharp Corp. 15,000 230,100
Sony Corp. 39,300 1,458,721
Sumitomo Forestry Co. Ltd. 27,000 274,032
6,954,657
- -----------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.06%
Kao Corp. 18,000 419,313
Uni-Charm Corp. 600 27,084
446,397
- -----------------------------------------------------------------------------------------
INSURANCE - 0.65%
Millea Holdings, Inc. 235 3,248,272
Mitsui Sumitomo Insurance Co. Ltd. 52,000 456,894
NIPPONKOA Insurance Co. Ltd. 44,000 291,760
Sompo Japan Insurance, Inc. 53,000 520,497
4,517,423
- -----------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.02%
Softbank Corp. 3,100 146,827
- -----------------------------------------------------------------------------------------
IT CONSULTING & SERVICES - 0.04%
CSK Corp. 2,300 104,934
Itochu Techno-Science Corp. 3,900 152,675
NET One Systems Co. Ltd. 8 31,473
289,082
- -----------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.07%
Fuji Photo Film Co. Ltd. 3,100 111,469
Konica Minolta Holdings, Inc. 26,000 326,712
Sega Sammy Holdings, Inc. 300 19,342
457,523
- -----------------------------------------------------------------------------------------
MACHINERY - 0.63%
Daikin Industries Ltd. 16,300 439,582
Kubota Corp. 111,000 594,403
Minebea Co. Ltd. 58,000 252,844
NSK Ltd. 16,000 83,051
SMC Corp. 1,300 152,047
THK Co. Ltd. 142,200 2,838,365
4,360,292
- -----------------------------------------------------------------------------------------
</Table>
129
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------
JAPAN - (CONTINUED)
MARINE - 0.21%
Mitsubishi Logistics Corp. 27,000 $ 289,430
Mitsui OSK Lines Ltd. (1) 96,000 600,377
Nippon Yusen Kabushiki Kaisha 103,000 572,471
1,462,278
- -----------------------------------------------------------------------------------------
MEDIA - 0.02%
Nippon Television Network Corp. 700 108,463
- -----------------------------------------------------------------------------------------
METALS & MINING - 0.27%
Dowa Mining Co. Ltd. 6,000 41,293
Hitachi Metals Ltd. 19,000 125,436
JFE Holdings, Inc. 21,600 598,173
Kobe Steel Ltd. 54,000 86,125
Mitsui Mining & Smelting Co. Ltd. 50,000 235,851
Nippon Steel Corp. 241,000 587,038
Nisshin Steel Co., Ltd. 32,000 76,091
Tokyo Steel Manufacturing Co. Ltd. (1) 6,800 100,894
1,850,901
- -----------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 0.23%
Aeon Co. Ltd. 6,600 111,005
Daimaru, Inc. 22,000 192,238
Hankyu Department Stores (1) 51,000 385,008
Isetan Co. Ltd. 11,700 138,991
Ito-Yokado Co. Ltd. 1,800 72,205
Marui Co. Ltd. 16,900 225,922
Ryohin Keikaku Co. Ltd. 200 10,265
Takashimaya Co. Ltd. 41,000 393,930
UNY Co. Ltd. 4,000 46,977
1,576,541
- -----------------------------------------------------------------------------------------
OFFICE ELECTRONICS - 1.37%
Canon, Inc. 175,100 9,139,626
Ricoh Co. Ltd. 20,000 353,584
9,493,210
- -----------------------------------------------------------------------------------------
OIL & GAS - 0.63%
Inpex Corp. 708 3,538,118
Nippon Mining Holdings, Inc. 77,500 392,538
Nippon Oil Corp. 62,000 425,499
4,356,155
- -----------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.04%
OJI Paper Co. Ltd. 46,000 259,668
- -----------------------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.02%
Aderans Co. Ltd. 7,000 162,389
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 1.93%
Chugai Pharmaceutical Co. Ltd. 18,500 292,195
Dainippon Pharmaceutical Co. Ltd. 27,000 $ 260,722
Eisai Co. Ltd. 61,600 2,000,638
Fujisawa Pharmaceutical Co. Ltd. 10,000 258,083
Sankyo Co. Ltd. 30,200 672,862
Shionogi & Co. Ltd. 10,000 126,142
Takeda Chemical Industries Ltd. 202,400 9,625,518
Yamanouchi Pharmaceutical Co. Ltd. 4,800 174,917
13,411,077
- -----------------------------------------------------------------------------------------
REAL ESTATE - 0.12%
Mitsubishi Estate Co. Ltd. 43,000 544,072
Mitsui Fudosan Co. Ltd. 17,000 211,648
Sumitomo Realty & Development Co. Ltd. 4,000 55,986
811,706
- -----------------------------------------------------------------------------------------
ROAD & RAIL - 0.91%
Central Japan Railway Co. 54 437,930
East Japan Railway Co. 461 2,490,928
Tokyu Corp. 312,000 1,722,024
West Japan Railway Co. 427 1,688,106
6,338,988
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.10%
Advantest. Corp. 1,800 150,674
NEC Electronics Corp. 900 45,585
Seiko Epson Corp. 12,000 497,608
693,867
- -----------------------------------------------------------------------------------------
SOFTWARE - 0.06%
Capcom Co. Ltd. (1) 12,800 123,725
Fuji Soft ABC, Inc. 4,500 147,891
Trend Micro, Inc. 3,000 134,841
406,457
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.30%
Autobacs Seven Co. Ltd. (1) 2,900 86,898
Fast Retailing Co. Ltd. 2,200 149,920
Shimamura Co. Ltd. 1,900 137,374
Yamada Denki Co. Ltd. (1) 41,300 1,740,544
2,114,736
- -----------------------------------------------------------------------------------------
TEXTILES & APPAREL - 0.27%
Onward Kashiyama Co. Ltd. 121,000 1,864,328
- -----------------------------------------------------------------------------------------
TOBACCO - 0.06%
Japan Tobacco, Inc. 36 382,775
- -----------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.91%
Itochu Corp. 130,000 615,726
Mitsubishi Corp. 16,600 195,115
- -----------------------------------------------------------------------------------------
</Table>
130
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
JAPAN - (CONCLUDED)
TRADING COMPANIES & DISTRIBUTORS - (CONCLUDED)
Mitsui & Co. Ltd. 549,700 $ 5,106,198
Sumitomo Corp. 50,000 429,172
6,346,211
- -----------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.77%
KDDI Corp. 754 3,855,454
NTT DoCoMo, Inc. 858 1,492,823
5,348,277
- -----------------------------------------------------------------------------------------
Total Japan Common Stocks 136,752,634
- -----------------------------------------------------------------------------------------
LUXEMBOURG - 0.53%
METALS & MINING - 0.53%
Arcelor 163,675 3,652,698
- -----------------------------------------------------------------------------------------
MALAYSIA - 0.72%
DIVERSIFIED FINANCIALS - 0.43%
Public Bank Berhad 1,427,700 3,024,470
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.29%
Telekom Malaysia Berhad 686,600 1,987,526
Total Malaysia Common Stocks 5,011,996
- -----------------------------------------------------------------------------------------
NETHERLANDS - 5.26%
AIR FREIGHT & COURIERS - 0.37%
TPG N.V. 94,306 2,586,501
- -----------------------------------------------------------------------------------------
BANKS - 0.32%
ABN AMRO Holdings N.V. 81,663 2,209,939
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.24%
Akzo Nobel N.V. 21,355 891,629
DSM N.V. 11,899 739,407
1,631,036
- -----------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.07%
Buhrmann N.V. 44,661 459,921
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 1.20%
ING Groep N.V. 287,970 8,288,462
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.20%
Koninklijke (Royal) KPN N.V. 144,893 1,392,011
- -----------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.23%
Koninklijke Wessanen N.V. 39,012 562,446
Unilever N.V. 15,987 1,041,993
1,604,439
- -----------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.57%
Koninklijke (Royal) Philips Electronics N.V. 151,862 3,971,071
- -----------------------------------------------------------------------------------------
INSURANCE - 0.05%
Aegon N.V. 26,236 355,679
- -----------------------------------------------------------------------------------------
MARINE - 0.05%
Koninklijke (Royal) P&O Nedlloyd NV 6,338 $ 317,257
- -----------------------------------------------------------------------------------------
MEDIA - 0.59%
Reed Elsevier N.V. 284,258 3,835,135
VNU N.V. 9,316 272,144
4,107,279
- -----------------------------------------------------------------------------------------
OIL & GAS - 1.24%
Royal Dutch Petroleum Co. (1) 148,366 8,616,080
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.07%
STMicroelectronics N.V. 30,106 502,332
- -----------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.06%
Hagemeyer N.V.* (1) 180,739 438,220
Total Netherlands Common Stocks 36,480,227
- -----------------------------------------------------------------------------------------
NEW ZEALAND - 0.72%
CONSTRUCTION MATERIALS - 0.02%
Fletcher Building Ltd. 22,700 105,737
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.70%
Telecom Corp. of New Zealand Ltd. 1,112,839 4,874,997
Total New Zealand Common Stocks 4,980,734
- -----------------------------------------------------------------------------------------
NORWAY - 0.53%
OIL & GAS - 0.53%
Norsk Hydro ASA 34,450 2,621,741
Statoil ASA 68,767 1,044,507
Total Norway Common Stocks 3,666,248
- -----------------------------------------------------------------------------------------
PORTUGAL - 0.23%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.09%
Portugal Telecom SGPS SA 52,079 644,932
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.14%
Electricidade de Portugal SA 315,198 928,580
Total Portugal Common Stocks 1,573,512
- -----------------------------------------------------------------------------------------
SINGAPORE - 1.26%
AEROSPACE & DEFENSE - 0.01%
Singapore Technologies Engineering Ltd. 48,000 70,390
- -----------------------------------------------------------------------------------------
AIRLINES - 0.02%
Singapore Airlines Ltd. 22,000 157,277
- -----------------------------------------------------------------------------------------
BANKS - 1.06%
DBS Group Holdings Ltd. 271,000 2,616,278
Overseas-Chinese Banking Corp. 526,000 4,403,153
United Overseas Bank Ltd. 41,000 348,222
7,367,653
- -----------------------------------------------------------------------------------------
BEVERAGES - 0.01%
Fraser and Neave Ltd. 4,000 40,816
- -----------------------------------------------------------------------------------------
</Table>
131
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
SINGAPORE - (CONCLUDED)
COMPUTERS & PERIPHERALS - 0.01%
Creative Technology Ltd. 2,100 $ 28,486
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.02%
Keppel Corp. Ltd. 20,000 112,428
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.05%
Singapore Telecommunications Ltd. 235,860 367,495
- -----------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.01%
Venture Corp. Ltd. 9,000 86,338
- -----------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.01%
SembCorp Industries Ltd. 57,000 64,432
- -----------------------------------------------------------------------------------------
MEDIA - 0.02%
Singapore Press Holdings Ltd. 46,750 127,401
- -----------------------------------------------------------------------------------------
REAL ESTATE - 0.04%
Allgreen Properties Ltd. 28,000 18,477
CapitaLand Ltd. (1) 77,000 107,742
City Developments Ltd. 23,000 96,267
Keppel Land Ltd. 58,000 81,510
303,996
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.00%
STATS ChipPAC Ltd.* 27,000 15,343
Total Singapore Common Stocks 8,742,055
- -----------------------------------------------------------------------------------------
SOUTH AFRICA - 0.46%
OIL & GAS - 0.46%
Sasol Ltd. 156,761 3,170,477
- -----------------------------------------------------------------------------------------
SOUTH KOREA - 0.55%
METALS & MINING - 0.55%
POSCO ADR 84,900 3,820,500
- -----------------------------------------------------------------------------------------
SPAIN - 5.22%
BANKS - 1.67%
Banco Bilbao Vizcaya Argentaria SA (1) 316,408 5,328,900
Banco Santander Central Hispano SA (1) 526,508 6,252,461
11,581,361
- -----------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.15%
ACS Actividades de Contruccion y Servicios SA 41,787 1,047,486
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.50%
Telefonica SA 570,160 10,375,518
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.40%
Iberdrola SA (1) 379,352 9,395,580
Union Fenosa SA 10,284 277,230
9,672,810
- -----------------------------------------------------------------------------------------
IT CONSULTING & SERVICES - 0.02%
Indra Sistemas SA* 9,600 164,310
- -----------------------------------------------------------------------------------------
METALS & MINING - 0.03%
Acerinox SA 15,460 $ 235,386
- -----------------------------------------------------------------------------------------
OIL & GAS - 0.22%
Repsol YPF SA 60,478 1,545,187
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.15%
Inditex SA* 35,594 1,007,777
- -----------------------------------------------------------------------------------------
TOBACCO - 0.08%
Altadis SA 13,048 569,452
Total Spain Common Stocks 36,199,287
- -----------------------------------------------------------------------------------------
SWEDEN - 2.59%
AUTOMOBILES - 0.03%
Volvo AB, B Shares 5,775 234,334
- -----------------------------------------------------------------------------------------
BANKS - 0.47%
Nordea Bank AB (1) 326,929 3,029,872
Svenska Handelsbanken, Series A 10,586 250,761
3,280,633
- -----------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.42%
Assa Abloy AB, Series B 182,613 2,888,185
- -----------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.81%
Telefonaktiebolaget LM Ericsson* (1) 1,922,828 5,641,899
- -----------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.06%
Electrolux AB, Series B 19,425 414,265
- -----------------------------------------------------------------------------------------
INSURANCE - 0.01%
Skandia Forsakrings AB 14,433 74,782
- -----------------------------------------------------------------------------------------
MACHINERY - 0.61%
Atlas Copco AB 12,519 583,246
Sandvik AB (1) 64,908 2,647,733
SKF AB, Series B 22,255 1,024,093
4,255,072
- -----------------------------------------------------------------------------------------
MEDIA - 0.07%
Eniro AB 44,800 447,253
- -----------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.04%
Svenska Cellulosa AB 6,600 252,696
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.07%
Hennes & Mauritz AB 13,700 451,984
Total Sweden Common Stocks 17,941,103
- -----------------------------------------------------------------------------------------
SWITZERLAND - 4.83%
BANKS - 1.03%
Credit Suisse Group* 177,438 7,143,802
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.19%
Ciba Specialty Chemicals AG* 9,410 680,117
Syngenta AG* 5,969 642,352
1,322,469
- -----------------------------------------------------------------------------------------
</Table>
132
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
SWITZERLAND - (CONCLUDED)
ELECTRICAL EQUIPMENT - 0.01%
ABB Ltd.* 12,600 $ 69,334
- -----------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.55%
Nestle SA 14,403 3,781,015
- -----------------------------------------------------------------------------------------
INSURANCE - 0.09%
Swiss Reinsurance* 9,323 637,745
- -----------------------------------------------------------------------------------------
INSURANCE--MULTILINE - 1.27%
Baloise Holding AG 66,983 3,153,301
Zurich Financial Services AG 34,006 5,656,699
8,810,000
- -----------------------------------------------------------------------------------------
MEDICAL PRODUCTS - 0.05%
Synthes, Inc.* 3,030 347,233
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 1.44%
Novartis AG (1) 60,470 2,900,118
Roche Holdings AG 800 97,467
Roche Holding Genussehein AG* 65,884 7,018,018
10,015,603
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.20%
Compagnie Financiere Richemont AG* 44,947 1,406,839
Total Switzerland Common Stocks 33,534,040
- -----------------------------------------------------------------------------------------
TAIWAN - 0.25%
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.25%
Vanguard International Semiconductor Corp.* 2,365,000 1,709,191
- -----------------------------------------------------------------------------------------
THAILAND - 0.49%
BANKS - 0.26%
Bangkok Bank PCL Public Co. (1) 611,700 1,840,176
- -----------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.23%
TPI Polene Public Co. Ltd.* 1,810,100 1,584,307
Total Thailand Common Stocks 3,424,483
- -----------------------------------------------------------------------------------------
UNITED KINGDOM - 23.47%
AEROSPACE & DEFENSE - 0.14%
BAE Systems PLC 178,059 824,479
Cobham PLC 5,687 143,303
967,782
- -----------------------------------------------------------------------------------------
AIR FREIGHT & COURIERS - 0.01%
Exel PLC 2,992 45,202
- -----------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.37%
GKN PLC 566,104 2,597,248
- -----------------------------------------------------------------------------------------
BANKS - 5.31%
Barclays PLC 210,258 2,308,022
HBOS PLC 427,627 6,827,417
HSBC Holdings PLC 727,747 12,058,313
Lloyds TSB Group PLC 731,023 $ 6,842,203
Royal Bank of Scotland Group PLC 264,190 8,774,858
36,810,813
- -----------------------------------------------------------------------------------------
BEVERAGES - 0.20%
Diageo PLC 68,287 931,839
SABMiller PLC 31,814 488,135
1,419,974
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.49%
BOC Group PLC 156,118 2,891,538
Imperial Chemical Industries PLC 115,186 512,715
3,404,253
- -----------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.49%
Brambles Industries PLC 545,100 2,822,168
Bunzl PLC 40,600 339,613
Rentokil Initial PLC 79,957 229,226
3,391,007
- -----------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.32%
Marconi Corp. PLC* 183,862 2,233,183
- -----------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.14%
BPB PLC 57,300 559,550
Hanson PLC 46,100 430,616
990,166
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.13%
3i Group PLC 43,614 575,000
Amvescap PLC 18,679 122,602
Man Group PLC 8,852 227,062
924,664
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.12%
BT Group PLC 211,728 830,627
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.34%
International Power PLC* 43,016 136,302
National Grid Transco PLC 99,118 965,110
Scottish & Southern Energy PLC 34,135 572,678
Scottish Power PLC 87,099 692,429
2,366,519
- -----------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 1.52%
Boots Group PLC 428,735 5,389,562
Tesco PLC 881,189 5,123,143
10,512,705
- -----------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.67%
Cadbury Schweppes PLC 91,812 823,406
Unilever PLC 401,048 3,812,337
4,635,743
- -----------------------------------------------------------------------------------------
</Table>
133
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
UNITED KINGDOM - (CONTINUED)
GAS UTILITIES - 0.08%
Centrica PLC 123,058 $ 541,372
- -----------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.03%
Alliance Unichem PLC 13,542 191,562
- -----------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.95%
Carnival PLC 2,542 152,656
Compass Group PLC 18,532 84,237
Enterprise Inns PLC 22,303 313,600
Hilton Group PLC 50,091 279,178
Intercontinental Hotels Group PLC 186,450 2,347,349
Mitchells & Butlers PLC 321,752 1,973,799
Punch Taverns PLC 19,064 240,729
Rank Group PLC 71,984 363,861
Whitbread PLC 26,982 448,347
William Hill PLC 34,019 372,467
6,576,223
- -----------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.13%
Reckitt Benckiser PLC 29,915 889,785
- -----------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.04%
Cookson Group PLC* 131,991 88,999
Tomkins PLC 39,592 201,994
290,993
- -----------------------------------------------------------------------------------------
INSURANCE - 0.65%
Aviva PLC 273,929 3,280,772
Legal & General Group PLC 242,582 526,164
Prudential PLC 42,953 372,663
Royal & Sun Alliance Insurance Group 209,802 339,319
4,518,918
- -----------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.11%
Gus PLC 40,290 732,552
- -----------------------------------------------------------------------------------------
IT CONSULTING & SERVICES - 0.02%
LogicaCMG PLC 34,662 115,389
- -----------------------------------------------------------------------------------------
MARINE - 0.08%
Peninsular and Oriental Steam Navigation Co. 93,429 541,865
- -----------------------------------------------------------------------------------------
MEDIA - 0.71%
British Sky Broadcasting Group PLC 39,100 416,668
Emap PLC 27,756 445,503
ITV PLC 197,467 434,826
Pearson PLC 6,700 77,843
Reed Elsevier PLC 31,300 284,843
Reuters Group 69,900 525,046
United Business Media PLC 13,530 138,057
WPP Group PLC 239,825 2,612,227
4,935,013
- -----------------------------------------------------------------------------------------
METALS & MINING - 1.80%
Anglo American PLC 44,709 $ 1,038,891
BHP Billiton PLC 245,431 3,041,299
Rio Tinto PLC 161,680 5,031,583
Xstrata PLC 194,522 3,393,711
12,505,484
- -----------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 0.11%
Marks & Spencer Group PLC 53,063 361,296
Next PLC 14,020 415,421
776,717
- -----------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.03%
AWG PLC 14,668 232,388
- -----------------------------------------------------------------------------------------
OIL & GAS - 3.83%
BG Group PLC 754,893 5,150,606
BP PLC 1,134,530 11,191,339
Cairn Energy PLC* 83,435 1,749,917
Shell Transportation & Trading Co. PLC 973,034 8,506,328
26,598,190
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 2.45%
Astra Zeneca PLC 59,946 2,249,975
GlaxoSmithKline PLC 664,934 14,736,039
16,986,014
- -----------------------------------------------------------------------------------------
REAL ESTATE - 0.05%
Berkeley Group Holdings PLC 1,913 29,983
British Land Co. PLC 10,314 167,492
Hammerson PLC 6,811 108,872
Slough Estates PLC 6,875 66,294
372,641
- -----------------------------------------------------------------------------------------
SOFTWARE - 0.04%
Sage Group PLC 82,000 305,454
- -----------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.17%
Dixons Group PLC 119,655 357,705
Kingfisher PLC 98,174 564,756
Travis Perkins PLC 7,872 286,554
1,209,015
- -----------------------------------------------------------------------------------------
TOBACCO - 0.18%
British America Tobacco PLC 44,558 773,175
Imperial Tobacco Group PLC 16,775 440,419
1,213,594
- -----------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.11%
Wolseley PLC 37,688 780,850
- -----------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.01%
BAA PLC 3,859 45,418
- -----------------------------------------------------------------------------------------
</Table>
134
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------
UNITED KINGDOM - (CONCLUDED)
WIRELESS TELECOMMUNICATION SERVICES - 1.64%
Vodafone Group PLC 4,398,809 $ 11,366,324
Total United Kingdom Common Stocks 162,855,647
- -----------------------------------------------------------------------------------------
Total Common Stocks (cost - $577,748,196) 673,469,400
- -----------------------------------------------------------------------------------------
PREFERRED STOCKS - 0.15%
GERMANY - 0.15%
HEALTH CARE PROVIDERS & SERVICES - 0.03%
Fresenius AG 2,020 204,992
- -----------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.08%
Henkel KGaA 6,057 543,218
- -----------------------------------------------------------------------------------------
MEDIA - 0.04%
ProSieben SAT.1 Media AG 17,642 324,491
Total Preferred Stocks (cost - $973,969) 1,072,701
- -----------------------------------------------------------------------------------------
INVESTMENT COMPANY - 0.03%
AUSTRALIA - 0.03%
REAL ESTATE - 0.03%
Macquarie Infrastructure Group
(cost - $132,603) 58,300 $ 172,134
- -----------------------------------------------------------------------------------------
<Caption>
NUMBER OF
WARRANTS
- -----------------------------------------------------------------------------------------
WARRANT - 0.00%
SINGAPORE - 0.00%
REAL ESTATE - 0.00%
City Developments Ltd.,
strike price $2.50, expires 05/10/06*
(cost - $0) 2,300 6,183
- -----------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATES VALUE
- ------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATION@ - 0.07%
$ 480 U.S. Treasury Bill++(cost - $479,376) 02/24/05 2.040% 479,376
REPURCHASE AGREEMENT - 3.19%
22,117 Repurchase Agreement dated 01/31/05 with State
Street Bank & Trust Co., collateralized by
$1,509,046 U.S Treasury Bond, 12.000% due
08/15/13 and $21,980,684 U.S. Treasury Notes,
1.625% to 2.250% due 03/31/05 to 04/30/06
(value - $24,056,637); proceeds: $22,118,401
(cost - $22,117,000) 02/01/05 2.280 22,117,000
- ------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- ------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 8.70%
MONEY MARKET FUNDS+ - 8.70%
1 AIM Liquid Assets Portfolio 2.273 887
30,559 Barclays Prime Money Market Fund 2.363 30,559,138
105 BlackRock Provident Institutional TempFund 2.217 104,602
18,228 Dreyfus Institutional Cash Advantage Fund 2.327 18,227,965
4 Scudder Money Market Series 2.240 3,616
11,434 UBS Private Money Market Fund LLC** 2.287 11,434,091
Total Money Market Funds (cost - $60,330,299) 60,330,299
- ------------------------------------------------------------------------------------------------------
Total Investments (cost - $661,781,443) - 109.21% 757,647,093
Liabilities in excess of other assets - (9.21)% (63,880,825)
Net Assets - 100.00% $ 693,766,268
- ------------------------------------------------------------------------------------------------------
</Table>
* Non-income producing security.
(1) Security, or portion thereof, was on loan at January 31, 2005.
+ Interest rates shown reflect yield at January 31, 2005.
++ Entire or partial amount pledged as collateral for futures transactions.
@ Interest rate shown is discount rate at date of purchase.
ADR American Depositary Receipt.
135
<Page>
** Affiliated issuer. See table below for more information.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
SECURITY VALUE AT ENDED ENDED VALUE AT ENDED
DESCRIPTION 07/31/04 01/31/05 01/31/05 01/31/05 01/31/05
- ----------------------------------------------------------------------------------------------
UBS Private
Money Market
Fund LLC $ 29,689,204 $ 173,615,167 $ 191,870,280 $ 11,434,091 $ 27,724
- ----------------------------------------------------------------------------------------------
<Caption>
NUMBER OF IN EXPIRATION UNREALIZED
CONTRACTS CURRENCY CONTRACTS TO RECEIVE EXCHANGE FOR DATES APPRECIATION
- ------------------------------------------------------------------------------------------------------------------------
FUTURES CONTRACTS
21 EUR Dow Jones Euro STOXX 50 Futures $ 620,123 March 2005 $ 11,233
45 GBP Financial Times Stock Exchange 100 Index Futures 2,167,850 March 2005 7,261
8 HKD Hang Seng Stock Index Futures 5,436,520 February 2005 5,933
14 AUD SPI 200 Index Futures 1,413,384 March 2005 12,683
$ 37,110
- ------------------------------------------------------------------------------------------------------------------------
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN MATURITY APPRECIATION
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
- -------------------------------------------------------------------------------------------------------------------
Euro Dollar 1,981,015 USD 2,614,891 04/11/05 $ 26,482
Japanese Yen 198,926,028 USD 1,932,672 04/11/05 3,134
Pound Sterling 985,167 USD 1,846,874 04/11/05 (1,479)
Pound Sterling 10,058,500 USD 18,867,935 04/29/05 13,445
United States Dollar 1,231,922 CHF 1,441,928 04/11/05 (12,343)
United States Dollar 2,798,586 GBP 1,503,016 04/11/05 21,345
United States Dollar 893,517 JPY 93,084,830 04/11/05 9,385
$ 59,969
- -------------------------------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
AUD Australian Dollar
CHF Swiss Franc
EUR Euro Dollar
GBP Great Britain Pounds
HKD Hong Kong Dollar
JPY Japanese Yen
USD U.S. Dollars
See accompanying notes to financial statements
136
<Page>
UBS PACE SELECT ADVISORS TRUST
PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2005 (UNAUDITED)
COMMON STOCKS - 88.62%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
ARGENTINA - 1.00%
ENERGY EQUIPMENT - 1.00%
Tenaris SA, ADR (1) 39,183 $ 1,931,722
- -----------------------------------------------------------------------------------------
BRAZIL - 5.35%
BANKS - 0.76%
Banco Itau Holding Financiera SA, ADR 9,800 733,432
Unibanco - Uniao de Bancos Brasileiros SA, GDR 24,100 742,039
1,475,471
- -----------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.37%
Companhia Brasileira de Distribuicao Grupo Pao
de Acucar, ADR 32,300 712,861
- -----------------------------------------------------------------------------------------
INSURANCE - 0.14%
Porto Seguro SA 32,500 261,266
- -----------------------------------------------------------------------------------------
METALS & MINING - 1.28%
Companhia Siderurgica Nacional SA 86,500 1,730,991
Companhia Vale do Rio Doce (CVRD), ADR 29,900 752,284
2,483,275
- -----------------------------------------------------------------------------------------
OIL & GAS - 0.79%
Petroleo Brasileiro SA - Petrobras (1) 37,422 1,521,204
- -----------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.99%
Votorantim Celulose e Papel SA, ADR (1) 130,250 1,905,557
- -----------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.34%
Companhia de Concessoes Rodoviarias (CCR) 32,900 660,262
- -----------------------------------------------------------------------------------------
WATER UTILITIES - 0.68%
Companhia de Saneamento Basico do
Estado de Sao Paulo-SABESP 2,140,000 112,946
Companhia de Saneamento Basico do
Estado de Sao Paulo-SABESP, ADR (1)* 91,400 1,205,566
1,318,512
- -----------------------------------------------------------------------------------------
Total Brazil Common Stocks 10,338,408
- -----------------------------------------------------------------------------------------
CHILE - 0.99%
BANKS - 0.60%
Banco Santander Chile SA, ADR 35,700 1,154,895
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.39%
Administradora de Fondos de Pensiones
Provida SA 430,457 761,936
Total Chile Common Stocks 1,916,831
- -----------------------------------------------------------------------------------------
CHINA - 5.99%
BUILDING PRODUCTS - 0.37%
Asia Aluminum Holdings Ltd. 7,046,000 713,642
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.55%
China Telecom Corp. Ltd. 8,040,000 2,989,269
- -----------------------------------------------------------------------------------------
METALS & MINING - 1.00%
Jiangxi Copper Co. Ltd. 2,238,000 $ 1,197,919
Yanzhou Coal Mining Co. Ltd. (1) 514,000 728,176
1,926,095
- -----------------------------------------------------------------------------------------
OIL & GAS - 0.49%
CNOOC Ltd. 1,811,000 957,753
- -----------------------------------------------------------------------------------------
ROAD & RAIL - 0.47%
Guangshen Railway Co. Ltd. 2,280,000 913,473
- -----------------------------------------------------------------------------------------
TEXTILES & APPAREL - 0.87%
Fountain Set (Holdings) Ltd. (1) 1,404,000 886,511
Texwinca Holdings Ltd. 908,000 797,421
1,683,932
- -----------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 1.24%
Beijing Capital International Airport Co. Ltd. 1,054,000 449,307
China Merchants Holdings International Co. Ltd. 254,000 499,865
Zhejiang Expressway Co. Ltd. 2,030,000 1,444,442
2,393,614
- -----------------------------------------------------------------------------------------
Total China Common Stocks 11,577,778
- -----------------------------------------------------------------------------------------
CROATIA - 0.66%
PHARMACEUTICALS - 0.66%
Pliva d.d., GDR 99,308 1,266,177
- -----------------------------------------------------------------------------------------
CZECH REPUBLIC - 0.51%
TOBACCO - 0.51%
Philip Morris CR A.S 1,229 982,810
- -----------------------------------------------------------------------------------------
EGYPT - 1.26%
WIRELESS TELECOMMUNICATION SERVICES - 1.26%
Egyptian Co. for Mobile Services (MobiNil) 84,312 2,429,515
- -----------------------------------------------------------------------------------------
ESTONIA - 1.28%
BANKS - 0.37%
Hansabank Ltd. 54,056 705,351
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.91%
AS Eesti Telekom 180,551 1,767,533
Total Estonia Common Stocks 2,472,884
- -----------------------------------------------------------------------------------------
HONG KONG - 0.91%
OIL & GAS - 0.24%
China Resources Power Holdings Co. Ltd. 954,000 461,718
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.67%
Solomon Systech International Ltd. 4,760,000 1,296,812
- -----------------------------------------------------------------------------------------
Total Hong Kong Common Stocks 1,758,530
- -----------------------------------------------------------------------------------------
</Table>
137
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
HUNGARY - 1.96%
BANKS - 0.39%
OTP Bank Rt. 11,671 $ 377,633
OTP Bank Rt., ADR (1)(2) 5,800 374,100
751,733
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.67%
Magyar Tavkozlesi Rt. (Matav) 278,038 1,291,516
- -----------------------------------------------------------------------------------------
OIL & GAS - 0.35%
MOL Magyar Olaj-es Gazipari Rt 10,102 674,646
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.55%
Gedeon Richter Ltd. 3,177 416,668
Gedeon Richter Ltd., ADR (2) 4,814 643,872
1,060,540
- -----------------------------------------------------------------------------------------
Total Hungary Common Stocks 3,778,435
- -----------------------------------------------------------------------------------------
INDIA - 3.55%
CONSTRUCTION & ENGINEERING - 0.45%
Larsen & Toubro Ltd., GDR (1) 39,300 880,320
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.42%
ICICI Bank Ltd. 15,000 123,903
ICICI Bank Ltd., ADR 34,750 683,533
807,436
- -----------------------------------------------------------------------------------------
GAS UTILITIES - 0.70%
Gail India Ltd., GDR 42,800 1,353,764
- -----------------------------------------------------------------------------------------
METALS & MINING - 0.59%
Vedanta Resources PLC 147,067 1,136,576
- -----------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.80%
Ranbaxy Laboratories Ltd. 19,700 489,601
Ranbaxy Laboratories Ltd., GDR 43,297 1,062,941
1,552,542
- -----------------------------------------------------------------------------------------
TOBACCO - 0.59%
ITC Ltd. (1) 36,900 1,139,856
Total India Common Stocks 6,870,494
- -----------------------------------------------------------------------------------------
INDONESIA - 2.43%
BANKS - 0.35%
PT Bank Danamon Indonesia TBK 1,505,000 685,509
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.78%
PT Telekomunikasi Indonesia, Series B 2,880,661 1,508,529
- -----------------------------------------------------------------------------------------
METALS & MINING - 0.41%
PT Bumi Resources TBK 7,833,500 786,256
- -----------------------------------------------------------------------------------------
TOBACCO - 0.89%
PT Hanjaya Mandala Sampoerna TBK 2,112,500 1,717,011
Total Indonesia Common Stocks 4,697,305
- -----------------------------------------------------------------------------------------
ISRAEL - 1.95%
BANKS - 1.04%
Bank Hapoalim Ltd. 555,417 $ 2,004,617
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.10%
Israel Chemicals Ltd. 82,862 192,514
- -----------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.33%
Orbotech Ltd.* 31,100 649,990
- -----------------------------------------------------------------------------------------
SOFTWARE - 0.48%
Retalix Ltd. (1)* 41,300 921,403
Total Israel Common Stocks 3,768,524
- -----------------------------------------------------------------------------------------
MALAYSIA - 5.99%
BANKS - 2.03%
CIMB Berhad 661,000 991,500
Hong Leong Bank Berhad 926,200 1,340,553
Public Bank Berhad 774,600 1,586,502
3,918,555
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.61%
Telekom Malaysia Berhad 407,200 1,178,737
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.27%
Tenaga Nasional Berhad 188,000 529,368
- -----------------------------------------------------------------------------------------
GAMING - 0.73%
Tanjong Public Co. Ltd. 370,700 1,424,269
- -----------------------------------------------------------------------------------------
MARINE - 1.13%
Malaysia International Shipping Co. Berhad 536,600 2,185,411
- -----------------------------------------------------------------------------------------
REAL ESTATE - 0.51%
SP Setia Berhad 846,300 979,926
- -----------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.71%
PLUS (Projek Lebuhraya Utara Selatan)
Expressways Berhad 1,890,600 1,368,197
Total Malaysia Common Stocks 11,584,463
- -----------------------------------------------------------------------------------------
MEXICO - 7.03%
BANKS - 0.78%
Grupo Financiero Banorte SA de C.V., Series O 235,662 1,512,674
- -----------------------------------------------------------------------------------------
BEVERAGES - 0.49%
Grupo Continential SA (1) 519,700 947,478
- -----------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 1.09%
Cemex SA de C.V., ADR (1) 56,319 2,110,836
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.92%
Telefonos de Mexico SA de C.V., ADR (1) 47,600 1,773,100
- -----------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.62%
Kimberly-Clark de Mexico SA de C.V., Series A 367,100 1,196,503
- -----------------------------------------------------------------------------------------
</Table>
138
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
MEXICO - (CONCLUDED)
INDUSTRIAL CONGLOMERATES - 0.71%
Grupo Carso SA de C.V., Series A1 (1) 246,432 $ 1,375,291
- -----------------------------------------------------------------------------------------
MEDIA - 0.43%
TV Azteca SA de C.V., ADR (1) 90,000 832,500
- -----------------------------------------------------------------------------------------
METALS & MINING - 0.46%
Hylsamex SA de C.V., Class L* 294,500 890,038
- -----------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 0.46%
Wal-Mart de Mexico SA de C.V., Series V 257,400 886,914
- -----------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.24%
Grupo Aeroportuario del Sureste SA de C.V., ADR 17,600 468,336
- -----------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.83%
America Movil SA de C.V., ADR, Series L (1) 30,096 1,596,894
Total Mexico Common Stocks 13,590,564
- -----------------------------------------------------------------------------------------
MOROCCO - 0.01%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.01%
Maroc Telecom* 2,360 23,923
- -----------------------------------------------------------------------------------------
NETHERLANDS - 0.65%
BEVERAGES - 0.65%
Efes Breweries International, GDR (1)* 39,000 1,253,070
- -----------------------------------------------------------------------------------------
PANAMA - 0.82%
BANKS - 0.82%
Banco Latinoamericano de Exportaciones SA,
Class E 71,800 1,582,472
- -----------------------------------------------------------------------------------------
POLAND - 1.09%
BANKS - 0.96%
Bank Pekao SA 43,181 1,851,893
- -----------------------------------------------------------------------------------------
REAL ESTATE - 0.13%
Globe Trade Centre SA* 8,000 262,139
Total Poland Common Stocks 2,114,032
- -----------------------------------------------------------------------------------------
RUSSIA - 1.81%
OIL & GAS - 1.19%
LUKOIL, ADR 7,753 961,372
Surgutneftegaz, ADR (1) 36,000 1,346,400
2,307,772
- -----------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.62%
AO VimpelCom, ADR* 33,100 1,198,220
Total Russia Common Stocks 3,505,992
- -----------------------------------------------------------------------------------------
SOUTH AFRICA - 11.80%
BANKS - 2.09%
ABSA Group Ltd. 162,321 2,081,185
African Bank Investments Ltd. 697,544 1,966,892
4,048,077
- -----------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.56%
Nampak Ltd. 423,237 $ 1,086,862
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.85%
Alexander Forbes Ltd. 877,641 1,649,812
- -----------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.37%
Tiger Brands Ltd. 43,891 707,206
- -----------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.80%
Aspen Pharmacare Holdings Ltd. 413,043 1,552,897
- -----------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 1.87%
Lewis Group Ltd.* 251,881 1,572,671
Steinhoff International Holdings Ltd. 921,300 2,048,880
3,621,551
- -----------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.90%
Barloworld Ltd. 59,900 1,043,072
Remgro Ltd. 43,752 690,280
1,733,352
- -----------------------------------------------------------------------------------------
METALS & MINING - 2.18%
AngloGold Ashanti Ltd. 20,700 679,890
BHP Billiton PLC 100,800 1,233,523
Impala Platinum Holdings Ltd. 27,401 2,297,673
4,211,086
- -----------------------------------------------------------------------------------------
OIL & GAS - 1.47%
Sasol Ltd. 139,950 2,830,476
- -----------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.71%
MTN Group Ltd. 180,545 1,363,330
Total South Africa Common Stocks 22,804,649
- -----------------------------------------------------------------------------------------
SOUTH KOREA - 15.19%
AIRLINES - 0.41%
Korean Air Co. Ltd.* 44,850 791,599
- -----------------------------------------------------------------------------------------
AUTOMOBILES - 1.02%
Hyundai Motor Co.* 11,630 660,035
Kia Motors Corp.* 106,720 1,311,236
1,971,271
- -----------------------------------------------------------------------------------------
BANKS - 1.48%
Hana Bank 44,170 1,173,703
Kookmin Bank* 18,528 794,961
Woori Finance Holdings Co. Ltd.* 98,650 889,822
2,858,486
- -----------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.69%
Hyundai Development Co.* 74,400 1,331,292
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.28%
Dongwon Financial Holding Co. Ltd. 43,800 531,750
- -----------------------------------------------------------------------------------------
</Table>
139
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
SOUTH KOREA - (CONCLUDED)
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.86%
KT Corp., ADR (1) 76,500 $ 1,656,990
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.03%
Korea Electric Power Corp. (KEPCO)* 73,260 1,985,985
- -----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.31%
KH Vatec Co. Ltd.* 26,120 603,651
- -----------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.67%
Samsung SDI Co. Ltd. 11,900 1,299,659
- -----------------------------------------------------------------------------------------
GAS UTILITIES - 0.98%
Korea Gas Corp. 65,360 1,892,923
- -----------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.32%
LG Electronics, Inc. (1)* 9,100 626,485
- -----------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.94%
GS Holdings Corp.* 44,760 995,151
Seoul Semiconductor Co. Ltd.* 43,400 812,560
1,807,711
- -----------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.70%
CJ Home Shopping* 23,477 1,348,411
- -----------------------------------------------------------------------------------------
METALS & MINING - 1.06%
INI Steel Co.* 113,650 1,407,465
Pohang Iron & Steel Co. Ltd. (POSCO) 3,570 649,249
2,056,714
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 2.81%
Samsung Electronics Co. Ltd. 11,258 5,434,139
- -----------------------------------------------------------------------------------------
TOBACCO - 0.92%
KT&G Corp. 58,090 1,784,334
- -----------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.71%
SK Telecom Co. Ltd. 7,100 1,239,298
SK Telecom Co. Ltd., ADR 6,600 131,736
1,371,034
Total South Korea Common Stocks 29,352,434
- -----------------------------------------------------------------------------------------
TAIWAN - 9.97%
BANKS - 1.39%
E. Sun Financial Holding Co. Ltd. 2,304,000 1,838,856
Ta Chong Bank Ltd.* 2,409,000 847,786
2,686,642
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.51%
Taiwan Fertilizer Co. Ltd. 863,000 995,196
- -----------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 1.06%
Asustek Computer, Inc. 525,000 1,418,696
Ichia Technology, Inc. 514,424 622,320
2,041,016
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.24%
Yuanta Core Pacific Securities Co. 625,591 $ 459,979
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.94%
Chunghwa Telecom Co. Ltd. 330,000 663,629
Chunghwa Telecom Co. Ltd., ADR (1) 53,200 1,151,780
1,815,409
- -----------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.75%
AU Optronics Corp. 793,000 1,203,516
Optimax Technology Corp. 97,000 238,680
1,442,196
- -----------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.55%
President Chain Store Corp. 670,000 1,073,684
- -----------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.50%
Pihsiang Machinery Mfg. Co. Ltd. 435,000 963,629
- -----------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.91%
Far Eastern Textile Ltd. 1,917,181 1,385,551
Far Eastern Textile Ltd., GDR (1) 51,763 374,092
1,759,643
- -----------------------------------------------------------------------------------------
INSURANCE - 0.71%
Cathay Financial Holding Co. Ltd. 545,000 1,070,307
Cathay Financial Holding Co. Ltd., GDR (1) 15,917 312,928
1,383,235
- -----------------------------------------------------------------------------------------
METALS & MINING - 1.19%
China Steel Corp. 2,054,000 2,297,640
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 1.22%
Taiwan Semiconductor Manufacturing Co. Ltd. 1,207,867 1,973,577
Taiwan Semiconductor Manufacturing
Co. Ltd., ADR 43,937 384,449
2,358,026
- -----------------------------------------------------------------------------------------
Total Taiwan Common Stocks 19,276,295
- -----------------------------------------------------------------------------------------
THAILAND - 4.93%
BANKS - 1.19%
Kasikornbank Public Co. Ltd. (1)* 931,700 1,401,416
Siam City Bank Public Co. Ltd. 1,346,900 908,180
2,309,596
- -----------------------------------------------------------------------------------------
CHEMICALS - 0.44%
Aromatics Thailand PC, NVDR* 499,200 860,913
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.70%
Shin Corp., NVDR 1,196,000 1,349,222
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.44%
Ratchaburi Electricity Generating Holding
Public Co. Ltd. 813,400 843,776
- -----------------------------------------------------------------------------------------
</Table>
140
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
THAILAND - (CONCLUDED)
FOOD PRODUCTS - 0.74%
Thai Union Frozen Products Public
Co. Ltd, NVDR (3) 2,013,700 $ 1,423,063
- -----------------------------------------------------------------------------------------
HOMEBUILDING - 0.74%
Land & Houses Public Co. Ltd, NVDR 5,543,600 1,423,279
- -----------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.68%
Advanced Information Services Public Co. Ltd. 474,700 1,317,243
Total Thailand Common Stocks 9,527,092
- -----------------------------------------------------------------------------------------
TURKEY - 1.49%
BANKS - 0.97%
Denizbank A.S.* 625,370 1,873,066
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.52%
Haci Omer Sabanci Holding AS 238,160 1,007,566
Total Turkey Common Stocks 2,880,632
Total Common Stocks (cost - $146,475,652) 171,285,031
- -----------------------------------------------------------------------------------------
PREFERRED STOCKS - 8.90%
BRAZIL - 6.76%
BANKS - 1.02%
Itausa - Investimentos Itau SA 1,150,000 1,980,714
- -----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.57%
Tele Norte Leste Participacoes SA, ADR (1) 76,000 1,095,160
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.64%
Companhia Energetica de Minas
Gerais (CEMIG) 56,361,731 1,244,112
- -----------------------------------------------------------------------------------------
METALS & MINING - 1.48%
Caemi Mineracao e Metalurgia SA* 1,510,000 1,389,765
Companhia Vale do Rio Doce (CVRD), Class A 58,700 1,480,670
2,870,435
- -----------------------------------------------------------------------------------------
OIL & GAS - 2.33%
Petroleo Brasileiro SA - Petrobras 47,130 $ 1,679,293
Petroleo Brasileiro SA - Petrobras, ADR (1) 39,628 1,420,664
Ultrapar Participacoes SA 71,600,000 1,394,539
4,494,496
- -----------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.72%
Klabin SA 736,340 1,386,350
Total Brazil Preferred Stocks 13,071,267
- -----------------------------------------------------------------------------------------
SOUTH KOREA - 2.14%
AUTOMOBILES - 0.68%
Hyundai Motor Co.* 40,250 1,316,809
- -----------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.38%
LG Electronics, Inc.* 20,300 740,341
- -----------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 1.08%
Samsung Electronics Co. Ltd. 6,670 2,081,326
Total South Korea Preferred Stocks 4,138,476
- -----------------------------------------------------------------------------------------
Total Preferred Stocks (cost - $13,657,007) 17,209,743
- -----------------------------------------------------------------------------------------
<Caption>
NUMBER OF
RIGHTS
- -------------------------------------------------------------------------------------------
RIGHTS - 0.00%
THAILAND - 0.00%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.00%
True Corporation Public Company Ltd.
exercise price $0.351, expires 04/03/08*#(3)
(cost - $0) 218,684 0
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATES
- ------------------------------------------------------------------------------------------------------
CORPORATE BOND - 0.00%
BRAZIL - 0.00%
METALS & MINING - 0.00%
$ 10 Companhia Vale do Rio Doce*(a)#(3) (cost - $0) 09/29/49 1.000% 0
REPURCHASE AGREEMENT - 1.90%
3,680 Repurchase Agreement dated 01/31/05 with State
Street Bank & Trust Co., collateralized by
$248,094 U.S. Treasury Bonds, 12.000% due
08/15/13 and $3,657,025 U.S. Treasury Notes,
1.625% to 5.750% due 03/31/05 to 04/30/06;
(value - $4,002,732); proceeds: $3,680,233
(cost - $3,680,000) 02/01/05 2.280 3,680,000
- ------------------------------------------------------------------------------------------------------
</Table>
141
<Page>
<Table>
<Caption>
NUMBER OF
SHARES INTEREST
(000) RATES VALUE
- ------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 10.81%
MONEY MARKET FUNDS+ - 10.81%
++ 0 AIM Liquid Assets Portfolio 2.273% $ 103
4,049 Barclays Prime Money Market Fund 2.363 4,049,268
9,006 Dreyfus Institutional Cash Advantage Fund 2.327 9,005,501
7,835 UBS Private Money Market Fund LLC** 2.287 7,835,351
Total Money Market Funds (cost - $20,890,223) 20,890,223
- ------------------------------------------------------------------------------------------------------
Total Investments (cost - $184,702,882) - 110.23% 213,064,997
Liabilities in excess of other assets - (10.23)% (19,774,355)
Net Assets - 100.00% $ 193,290,642
- ------------------------------------------------------------------------------------------------------
</Table>
* Non-Income producing security.
ADR American Depositary Receipt
GDR Global Depositary Receipt
NVDR Non Voting Depositary Receipt
(a) Bond interest in default.
(1) Security, or portion thereof, was on loan at January 31, 2005.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 0.53% of net assets as of
January 31, 2005, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
(3) Illiquid security representing 0.74% of net assets.
+ Interest rates shown reflect yields at January 31, 2005
++ Amount represents less than 500 shares.
# Security is being fair valued by a valuation committee under the
direction of the board of trustees.
** Affiliated issuer. See table below for more information.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
SECURITY VALUE AT ENDED ENDED VALUE AT ENDED
DESCRIPTION 07/31/04 01/31/05 01/31/05 01/31/05 01/31/05
- ---------------------------------------------------------------------------------------------
UBS Private
Money Market
Fund LLC $ 9,580,128 $ 57,698,354 $ 59,443,131 $ 7,835,351 $ 15,770
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS
<Table>
<Caption>
CONTRACTS TO IN MATURITY UNREALIZED
DELIVER EXCHANGE FOR DATES DEPRECIATION
- -------------------------------------------------------------------------------------------
Czech Koruna 29,050,500 USD 1,244,719 02/28/05 $ (16,755)
United States Dollar 1,270,523 CZK 29,050,500 02/28/05 (9,048)
$ (25,803)
- -------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
CZK Czech Koruna
USD U.S. Dollars
See accompanying notes to financial statements
142
<Page>
(This page intentionally left blank)
143
<Page>
UBS PACE SELECT ADVISORS TRUST
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 2005 (UNAUDITED)
<Table>
<Caption>
UBS PACE
GOVERNMENT UBS PACE UBS PACE
UBS PACE SECURITIES INTERMEDIATE STRATEGIC
MONEY MARKET FIXED INCOME FIXED INCOME FIXED INCOME
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- --------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value
(cost - $186,641,636; $683,935,299; $392,895,100;
$431,242,877; $255,102,131; $416,477,194;
$1,001,655,498; $759,667,830; $365,450,701;
$373,481,255; $650,347,352; $176,867,531,
respectively)* $ 186,641,636 $ 684,193,181 392,433,028 $ 438,760,818
Investments in an affiliated security, at value
(cost - $0; $84,998; $5,704,804; $0; $0; $107,482;
$103,991,357; $85,402,025; $16,512,031;
$77,405,052; $11,434,091; $7,835,351, respectively) -- 84,998 5,704,804 --
Cash 588 -- -- 33,635
Foreign currency, at value (cost - $0; $0; $396;
$2,678,209; $0; $5,067,669; $0; $0;
$0; $0; $1,883,737; $1,298,950, respectively) -- -- 396 2,673,182
Receivable for investments sold -- 115,507,207 9,340,141 6,534,734
Receivable for shares of beneficial interest sold 807,977 648,386 552,757 741,653
Receivable for dividends and interest 216,915 2,100,815 3,278,158 2,850,301
Unrealized appreciation of forward foreign currency
contracts -- -- 1,889 98,535
Receivable for variation margin -- -- -- --
Other assets 21,396 52,894 50,033 50,917
- --------------------------------------------------------------------------------------------------------------------
Total assets 187,688,512 802,587,481 411,361,206 451,743,775
- --------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased 3,000,000 273,637,344 10,023,730 12,498,273
Payable for shares of beneficial interest repurchased 1,452,169 499,215 513,551 320,401
Dividends payable to shareholders 127,524 -- -- --
Payable to custodian 3,124 49,245 93,090 43,048
Payable to affiliates 1,427 311,807 228,088 254,398
Investments sold short, at value (proceeds - $0;
$36,776,562; $0; $0; $0; $0; $0;
$0; $0; $0; $0; $0, respectively) -- 36,907,500 -- --
Payable for cash collateral from securities loaned -- 3,885,001 19,715,292 --
Payable for interest rate swaps, net (proceeds - $0;
$127,170; $0; $1,240,038; $0; $0; $0; $0; $0; $0;
$0; $0, respectively) -- 257,544 -- 4,038,761
Payable for options written, at value (premium
received - $0; $618,956; $0; $0; $0; $0; $0; $0;
$0; $0; $0; $0, respectively) -- 105,975 -- --
Payable for variation margin -- 44,178 19,141 77,562
Payable for foreign withholding taxes -- -- 339 --
Unrealized depreciation of forward foreign currency
contracts -- -- -- 52,848
Accrued expenses and other liabilities 257,376 307,860 190,346 248,473
- --------------------------------------------------------------------------------------------------------------------
Total liabilities 4,841,620 316,005,669 30,783,577 17,533,764
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beneficial interest shares of $0.001 par value
(unlimited amount authorized) 182,847,136 480,239,422 421,517,316 433,624,758
Accumulated undistributed (distributions in excess
of) net investment income (loss) -- (381,814) (565,011) 676,019
Accumulated net realized gains (losses) from
investments, futures, options written, short sales,
swaps, forward foreign currency contracts and
foreign currency transactions (244) 6,085,384 (39,775,620) (4,954,437)
Net unrealized appreciation (depreciation) of
investments, other assets and liabilities
denominated in foreign currency, futures, options
written, short sales, swaps, and forward foreign
currency contracts -- 638,820 (599,056) 4,863,671
- --------------------------------------------------------------------------------------------------------------------
Net assets $ 182,846,892 $ 486,581,812 $ 380,577,629 $ 434,210,011
- --------------------------------------------------------------------------------------------------------------------
</Table>
* Includes $0; $3,723,535; $55,153,337; $0; $0; $1,922,490; $148,893,930;
$148,958,667; $55,876,511; $123,384,973; $56,422,830; $19,451,892,
respectively, of investments in securities on loan, at value.
+ Includes restricted cash of $3,768,110 on deposit as initial margin for
futures contracts on UBS PACE Global Fixed Income Investments.
144
<Page>
<Table>
<Caption>
UBS PACE UBS PACE UBS PACE UBS PACE
MUNICIPAL GLOBAL FIXED LARGE CO LARGE CO
FIXED INCOME INCOME VALUE EQUITY GROWTH EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value
(cost - $186,641,636; $683,935,299; $392,895,100;
$431,242,877; $255,102,131; $416,477,194;
$1,001,655,498; $759,667,830; $365,450,701;
$373,481,255; $650,347,352; $176,867,531,
respectively)* $ 261,974,687 $ 443,760,384 $ 1,168,259,186 $ 869,044,833
Investments in an affiliated security, at value
(cost - $0; $84,998; $5,704,804; $0; $0; $107,482;
$103,991,357; $85,402,025; $16,512,031;
$77,405,052; $11,434,091; $7,835,351, respectively) -- 107,482 103,991,357 85,402,025
Cash -- 3,769,032+ 353 1,863
Foreign currency, at value (cost - $0; $0; $396;
$2,678,209; $0; $5,067,669; $0; $0;
$0; $0; $1,883,737; $1,298,950, respectively) -- 5,083,480 -- --
Receivable for investments sold -- 25,864,493 10,988,976 10,166,859
Receivable for shares of beneficial interest sold 265,398 560,713 1,041,105 1,014,486
Receivable for dividends and interest 3,179,615 4,420,817 985,910 471,494
Unrealized appreciation of forward foreign currency
contracts -- 5,612,129 -- --
Receivable for variation margin -- -- -- --
Other assets 38,539 47,446 84,775 65,383
- ----------------------------------------------------------------------------------------------------------------------
Total assets 265,458,239 489,225,976 1,285,351,662 966,166,943
- ----------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased 8,172,810 51,357,052 8,721,592 16,223,759
Payable for shares of beneficial interest repurchased 163,685 528,765 1,089,300 761,715
Dividends payable to shareholders -- -- -- --
Payable to custodian 26,104 108,658 112,717 80,807
Payable to affiliates 161,498 299,039 783,703 544,203
Investments sold short, at value (proceeds - $0;
$36,776,562; $0; $0; $0; $0; $0;
$0; $0; $0; $0; $0, respectively) -- -- -- --
Payable for cash collateral from securities loaned -- 612,685 152,921,626 151,442,912
Payable for interest rate swaps, net (proceeds - $0;
$127,170; $0; $1,240,038; $0; $0; $0; $0; $0; $0;
$0; $0, respectively) -- -- -- --
Payable for options written, at value (premium
received - $0; $618,956; $0; $0; $0; $0; $0; $0;
$0; $0; $0; $0, respectively) -- -- -- --
Payable for variation margin -- -- -- --
Payable for foreign withholding taxes -- 1,349 12,122 18,105
Unrealized depreciation of forward foreign currency
contracts -- 4,317,615 -- --
Accrued expenses and other liabilities 127,557 348,333 561,770 395,403
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities 8,651,654 57,573,496 164,202,830 169,466,904
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beneficial interest shares of $0.001 par value
(unlimited amount authorized) 251,629,747 391,384,122 1,013,122,758 892,104,973
Accumulated undistributed (distributions in excess
of) net investment income (loss) 1,287 (3,355,428) 273,247 878,056
Accumulated net realized gains (losses) from
investments, futures, options written, short sales,
swaps, forward foreign currency contracts and
foreign currency transactions (1,697,005) 14,752,464 (58,850,844) (205,659,993)
Net unrealized appreciation (depreciation) of
investments, other assets and liabilities
denominated in foreign currency, futures, options
written, short sales, swaps, and forward foreign
currency contracts 6,872,556 28,871,322 166,603,671 109,377,003
- ----------------------------------------------------------------------------------------------------------------------
Net assets $ 256,806,585 $ 431,652,480 $ 1,121,148,832 $ 796,700,039
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
UBS PACE
UBS PACE UBS PACE UBS PACE INTERNATIONAL
SMALL/MEDIUM CO SMALL/MEDIUM CO INTERNATIONAL EMERGING MARKETS
VALUE EQUITY GROWTH EQUITY EQUITY EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in unaffiliated securities, at value
(cost - $186,641,636; $683,935,299; $392,895,100;
$431,242,877; $255,102,131; $416,477,194;
$1,001,655,498; $759,667,830; $365,450,701;
$373,481,255; $650,347,352; $176,867,531,
respectively)* $ 447,979,689 $ 443,836,700 $ 746,213,002 $ 205,229,646
Investments in an affiliated security, at value
(cost - $0; $84,998; $5,704,804; $0; $0; $107,482;
$103,991,357; $85,402,025; $16,512,031;
$77,405,052; $11,434,091; $7,835,351, respectively) 16,512,031 77,405,052 11,434,091 7,835,351
Cash 1,563 456 1,532 1,410
Foreign currency, at value (cost - $0; $0; $396;
$2,678,209; $0; $5,067,669; $0; $0;
$0; $0; $1,883,737; $1,298,950, respectively) -- -- 1,884,086 1,299,126
Receivable for investments sold 1,532,239 189,416 2,683,881 1,348,620
Receivable for shares of beneficial interest sold 379,418 325,684 804,852 225,935
Receivable for dividends and interest 217,490 69,135 661,290 665,498
Unrealized appreciation of forward foreign currency
contracts -- -- 73,791 --
Receivable for variation margin -- -- 23,474 --
Other assets 47,795 48,150 58,641 29,845
- ---------------------------------------------------------------------------------------------------------------------
Total assets 466,670,225 521,874,593 763,838,640 216,635,431
- ---------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased 5,618,635 433,287 7,950,882 1,684,790
Payable for shares of beneficial interest repurchased 467,816 291,766 671,949 183,511
Dividends payable to shareholders -- -- -- --
Payable to custodian 40,354 39,918 172,454 108,734
Payable to affiliates 301,418 281,406 559,526 184,250
Investments sold short, at value (proceeds - $0;
$36,776,562; $0; $0; $0; $0; $0;
$0; $0; $0; $0; $0, respectively) -- -- -- --
Payable for cash collateral from securities loaned 57,463,554 126,104,553 60,330,299 20,890,223
Payable for interest rate swaps, net (proceeds - $0;
$127,170; $0; $1,240,038; $0; $0; $0; $0; $0; $0;
$0; $0, respectively) -- -- -- --
Payable for options written, at value (premium
received - $0; $618,956; $0; $0; $0; $0; $0; $0;
$0; $0; $0; $0, respectively) -- -- -- --
Payable for variation margin -- -- -- --
Payable for foreign withholding taxes -- -- 60,275 91,196
Unrealized depreciation of forward foreign currency
contracts -- -- 13,822 25,803
Accrued expenses and other liabilities 299,372 295,607 313,165 176,282
- ---------------------------------------------------------------------------------------------------------------------
Total liabilities 64,191,149 127,446,537 70,072,372 23,344,789
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beneficial interest shares of $0.001 par value
(unlimited amount authorized) 305,246,997 320,033,609 664,776,925 183,315,061
Accumulated undistributed (distributions in excess
of) net investment income (loss) (329,892) (1,448,689) (879,842) 181,410
Accumulated net realized gains (losses) from
investments, futures, options written, short sales,
swaps, forward foreign currency contracts and
foreign currency transactions 15,032,983 5,487,691 (66,065,467) (18,453,780)
Net unrealized appreciation (depreciation) of
investments, other assets and liabilities
denominated in foreign currency, futures, options
written, short sales, swaps, and forward foreign
currency contracts 82,528,988 70,355,445 95,934,652 28,247,951
- ---------------------------------------------------------------------------------------------------------------------
Net assets $ 402,479,076 $ 394,428,056 $ 693,766,268 $ 193,290,642
- ---------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
145
<Page>
<Table>
<Caption>
UBS PACE
GOVERNMENT UBS PACE UBS PACE
UBS PACE SECURITIES INTERMEDIATE STRATEGIC
MONEY MARKET FIXED INCOME FIXED INCOME FIXED INCOME
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Net assets $ -- $ 148,262,321 $ 83,261,404 $ 23,089,898
Shares outstanding -- 11,161,529 7,190,246 1,661,823
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per share $ -- $ 13.28 $ 11.58 $ 13.89
- -----------------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share $ -- $ 13.91 $ 12.13 $ 14.54
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B:
Net assets $ -- $ 6,367,542 $ 2,658,178 $ 3,551,527
Shares outstanding -- 479,342 229,197 255,700
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ -- $ 13.28 $ 11.60 $ 13.89
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C:
Net assets $ -- $ 39,169,429 $ 8,892,047 $ 8,399,330
Shares outstanding -- 2,947,379 766,782 604,580
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ -- $ 13.29 $ 11.60 $ 13.89
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Net assets $ -- $ 10,128,207 $ 1,214,977 $ 679,985
Shares outstanding -- 762,471 104,852 48,976
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ -- $ 13.28 $ 11.59 $ 13.88
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS P:
Net assets $ 182,846,892 $ 282,654,313 $ 284,551,023 $ 398,489,271
Shares outstanding 182,847,136 21,270,940 24,558,760 28,692,063
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 1.00 $ 13.29 $ 11.59 $ 13.89
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
146
<Page>
<Table>
<Caption>
UBS PACE UBS PACE UBS PACE UBS PACE
MUNICIPAL GLOBAL FIXED LARGE CO LARGE CO
FIXED INCOME INCOME VALUE EQUITY GROWTH EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Net assets $ 125,398,710 $ 161,167,338 $ 309,535,197 $ 95,994,656
Shares outstanding 9,897,316 13,032,797 16,181,003 6,481,003
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per share $ 12.67 $ 12.37 $ 19.13 $ 14.81
- -----------------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share $ 13.27 $ 12.95 $ 20.24 $ 15.67
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B:
Net assets $ 3,751,611 $ 1,874,629 $ 13,029,239 $ 4,553,886
Shares outstanding 296,045 151,319 679,181 317,745
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ 12.67 $ 12.39 $ 19.18 $ 14.33
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C:
Net assets $ 23,373,483 $ 9,118,131 $ 41,000,427 $ 10,855,272
Shares outstanding 1,844,842 737,326 2,141,309 756,159
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ 12.67 $ 12.37 $ 19.15 $ 14.36
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Net assets $ 191,911 $ 10,050,307 $ 39,142,975 $ 23,252,445
Shares outstanding 15,140 813,333 2,043,606 1,547,598
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 12.68 $ 12.36 $ 19.15 $ 15.02
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS P:
Net assets $ 104,090,870 $ 249,442,075 $ 718,440,994 $ 662,043,780
Shares outstanding 8,214,496 20,172,720 37,565,076 44,225,469
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 12.67 $ 12.37 $ 19.13 $ 14.97
- -----------------------------------------------------------------------------------------------------------------------------------
<Caption>
UBS PACE
UBS PACE UBS PACE UBS PACE INTERNATIONAL
SMALL/MEDIUM CO SMALL/MEDIUM CO INTERNATIONAL EMERGING MARKETS
VALUE EQUITY GROWTH EQUITY EQUITY EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Net assets $ 53,985,005 $ 62,432,930 $ 97,912,165 $ 14,127,870
Shares outstanding 2,708,396 3,864,511 6,595,371 1,043,210
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per share $ 19.93 $ 16.16 $ 14.85 $ 13.54
- -----------------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share $ 21.09 $ 17.10 $ 15.71 $ 14.33
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B:
Net assets $ 5,714,199 $ 2,577,198 $ 1,008,025 $ 871,205
Shares outstanding 296,396 164,999 69,311 66,575
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ 19.28 $ 15.62 $ 14.54 $ 13.09
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C:
Net assets $ 14,317,695 $ 9,027,146 $ 8,374,556 $ 4,392,649
Shares outstanding 741,978 576,736 573,170 335,166
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ 19.30 $ 15.65 $ 14.61 $ 13.11
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Net assets $ 4,222,353 $ 3,702,076 $ 43,207,719 $ 7,812,653
Shares outstanding 209,653 226,636 2,912,191 571,368
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 20.14 $ 16.33 $ 14.84 $ 13.67
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS P:
Net assets $ 324,239,824 $ 316,688,706 $ 543,263,803 $ 166,086,265
Shares outstanding 16,116,292 19,394,932 36,648,333 12,168,968
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 20.12 $ 16.33 $ 14.82 $ 13.65
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
147
<Page>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005 (UNAUDITED)
<Table>
<Caption>
UBS PACE
GOVERNMENT UBS PACE UBS PACE
UBS PACE SECURITIES INTERMEDIATE STRATEGIC
MONEY MARKET FIXED INCOME FIXED INCOME FIXED INCOME
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest (net of foreign withholding taxes of $0;
$0; $0; $95; $0; $10,406; $0; $0; $0; $0; $0;
$2, respectively) $ 1,700,951 $ 7,599,166 $ 7,476,476 $ 8,926,492
Dividends (net of foreign withholding taxes of $0;
$0; $0; $0; $0; $0; $45,963; $18,105; $0; $787;
$604,555; $261,203, respectively) -- -- -- --
Securities lending income (includes $0; $1,241;
$10,036; $0; $0; $3,742; $21,918; $13,745;
$5,631; $16,925; $27,724; $15,770, respectively,
earned from an affiliated entity) -- 2,420 18,758 --
- -------------------------------------------------------------------------------------------------------------------------------
1,700,951 7,601,586 7,495,234 8,926,492
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management and administration fees 314,373 1,689,581 1,138,626 1,448,425
Service fees--Class A -- 194,803 110,803 30,476
Service and distribution fees--Class B -- 36,369 18,178 21,283
Service and distribution fees--Class C -- 153,806 35,293 32,898
Transfer agency and related services fees 364,421 324,265 181,054 312,943
Reports and notices to shareholders 82,200 48,140 25,789 36,971
Professional fees 24,747 39,752 36,362 40,352
Federal and state registration fees 14,539 30,393 31,540 31,683
Custody and accounting 8,982 144,821 113,863 123,986
Trustees' fees 6,790 8,336 7,851 7,880
Interest expense -- -- -- 622
Other expenses 9,553 18,113 14,894 15,421
- -------------------------------------------------------------------------------------------------------------------------------
825,605 2,688,379 1,714,253 2,102,940
- -------------------------------------------------------------------------------------------------------------------------------
Less: Fee waivers and expense reimbursements by
investment manager and administrator (286,685) (241,524) (22,282) (85,707)
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses 538,920 2,446,855 1,691,971 2,017,233
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1,162,031 5,154,731 5,803,263 6,909,259
- -------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENT ACTIVITIES:
Net realized gains (losses) from:
Investments (net of foreign tax expense of $0;
$0;$0;$0;$0;$0;$0;$0;$0;$0;$0; $25,118) (83) 6,258,956 1,265,861 (308,580)
Futures -- 740,558 251,951 6,378,131
Options written -- 302,451 28,693 91,451
Swaps -- (406,514) -- 2,479,056
Forward foreign currency contracts and foreign
currency transactions -- -- 265,991 669,400
- -------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation of:
Investments -- 1,394,213 1,060,824 5,339,643
Futures -- 79,667 (229,207) (2,132,541)
Options written -- 275,912 -- (345,864)
Short sales -- 156,484 -- --
Swaps -- (132,293) -- (1,986,917)
Other assets and liabilities denominated in
foreign currency and forward foreign
currency contracts -- -- (471,824) (70,952)
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investment activities (83) 8,669,434 2,172,289 10,112,827
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 1,161,948 $ 13,824,165 $ 7,975,552 $ 17,022,086
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
148
<Page>
<Table>
<Caption>
UBS PACE UBS PACE UBS PACE UBS PACE
MUNICIPAL GLOBAL FIXED LARGE CO LARGE CO
FIXED INCOME INCOME VALUE EQUITY GROWTH EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest (net of foreign withholding taxes of $0;
$0; $0; $95; $0; $10,406; $0; $0; $0; $0; $0;
$2, respectively) $ 5,223,078 $ 6,609,943 $ 121,427 $ 199,242
Dividends (net of foreign withholding taxes of $0;
$0; $0; $0; $0; $0; $45,963; $18,105; $0; $787;
$604,555; $261,203, respectively) -- -- 12,633,845 4,528,230
Securities lending income (includes $0; $1,241;
$10,036; $0; $0; $3,742; $21,918; $13,745;
$5,631; $16,925; $27,724; $15,770, respectively,
earned from an affiliated entity) -- 7,372 41,493 24,849
- -------------------------------------------------------------------------------------------------------------------------------
5,223,078 6,617,315 12,796,765 4,752,321
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management and administration fees 778,232 1,647,414 4,394,365 2,970,411
Service fees--Class A 163,797 204,439 389,207 125,015
Service and distribution fees--Class B 21,475 9,560 89,071 26,273
Service and distribution fees--Class C 91,515 34,130 208,435 56,775
Transfer agency and related services fees 83,759 411,322 598,108 477,237
Reports and notices to shareholders 13,595 56,649 89,555 61,874
Professional fees 37,716 41,354 38,825 37,712
Federal and state registration fees 27,953 31,054 37,397 36,846
Custody and accounting 77,823 308,817 319,342 223,833
Trustees' fees 7,325 7,941 10,960 9,426
Interest expense -- 309 -- --
Other expenses 12,402 14,371 19,117 20,618
- -------------------------------------------------------------------------------------------------------------------------------
1,315,592 2,767,360 6,194,382 4,046,020
- -------------------------------------------------------------------------------------------------------------------------------
Less: Fee waivers and expense reimbursements by
investment manager and administrator (90,559) (214,623) (617,650) (171,755)
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,225,033 2,552,737 5,576,732 3,874,265
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 3,998,045 4,064,578 7,220,033 878,056
- -------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENT ACTIVITIES:
Net realized gains (losses) from:
Investments (net of foreign tax expense of $0;
$0;$0;$0;$0;$0;$0;$0;$0;$0;$0; $25,118) 948,943 6,235,336 34,471,874 12,944,028
Futures -- 1,658,596 -- --
Options written -- 8,044 -- --
Swaps -- -- -- --
Forward foreign currency contracts and foreign
currency transactions -- 11,217,612 -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation of:
Investments 1,387,975 15,719,170 60,160,584 54,112,972
Futures -- (81,238) -- --
Options written -- 5,478 -- --
Short sales -- -- -- --
Swaps -- -- -- --
Other assets and liabilities denominated in
foreign currency and forward foreign
currency contracts -- 1,278,967 (17) --
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investment activities 2,336,918 36,041,965 94,632,441 67,057,000
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 6,334,963 $ 40,106,543 $ 101,852,474 $ 67,935,056
- -------------------------------------------------------------------------------------------------------------------------------
<Caption>
UBS PACE
UBS PACE UBS PACE UBS PACE INTERNATIONAL
SMALL/MEDIUM CO SMALL/MEDIUM CO INTERNATIONAL EMERGING MARKETS
VALUE EQUITY GROWTH EQUITY EQUITY EQUITY
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest (net of foreign withholding taxes of $0;
$0; $0; $95; $0; $10,406; $0; $0; $0; $0; $0;
$2, respectively) $ 183,907 $ 117,621 $ 186,012 $ 13,175
Dividends (net of foreign withholding taxes of $0;
$0; $0; $0; $0; $0; $45,963; $18,105; $0; $787;
$604,555; $261,203, respectively) 1,804,091 605,668 5,818,936 2,090,355
Securities lending income (includes $0; $1,241;
$10,036; $0; $0; $3,742; $21,918; $13,745;
$5,631; $16,925; $27,724; $15,770, respectively,
earned from an affiliated entity) 10,042 23,278 134,849 36,756
- --------------------------------------------------------------------------------------------------------------------------------
1,998,040 746,567 6,139,797 2,140,286
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management and administration fees 1,515,572 1,468,472 2,829,667 909,381
Service fees--Class A 66,467 77,780 120,970 16,411
Service and distribution fees--Class B 30,797 13,583 5,040 4,310
Service and distribution fees--Class C 70,149 45,276 40,159 20,757
Transfer agency and related services fees 398,613 404,702 427,206 311,616
Reports and notices to shareholders 45,741 50,144 61,291 40,938
Professional fees 38,424 36,145 39,886 38,302
Federal and state registration fees 29,320 29,529 33,615 26,667
Custody and accounting 113,160 109,990 472,164 289,106
Trustees' fees 7,785 7,784 8,762 6,762
Interest expense -- -- -- 274
Other expenses 16,033 14,468 24,601 19,040
- --------------------------------------------------------------------------------------------------------------------------------
2,332,061 2,257,873 4,063,361 1,683,564
- --------------------------------------------------------------------------------------------------------------------------------
Less: Fee waivers and expense reimbursements by
investment manager and administrator (4,129) (62,617) -- (15,113)
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,327,932 2,195,256 4,063,361 1,668,451
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (329,892) (1,448,689) 2,076,436 471,835
- --------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENT ACTIVITIES:
Net realized gains (losses) from:
Investments (net of foreign tax expense of $0;
$0;$0;$0;$0;$0;$0;$0;$0;$0;$0;$25,118) 30,070,444 11,003,725 9,068,449 17,443,531
Futures -- -- (16,534) --
Options written -- -- -- --
Swaps -- -- -- --
Forward foreign currency contracts and foreign
currency transactions -- -- (1,076,197) (422,407)
- --------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation of:
Investments 12,195,092 41,695,876 77,315,418 23,216,574
Futures -- -- 37,110 --
Options written -- -- -- --
Short sales -- -- -- --
Swaps -- -- -- --
Other assets and liabilities denominated in
foreign currency and forward foreign
currency contracts -- -- 30,199 (28,055)
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investment activities 42,265,536 52,699,601 85,358,445 40,209,643
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 41,935,644 $ 51,250,912 $ 87,434,881 $ 40,681,478
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
149
<Page>
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
UBS PACE UBS PACE
MONEY MARKET GOVERNMENT SECURITIES
INVESTMENTS FIXED INCOME INVESTMENTS
----------------------------------- -----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JANUARY 31, 2005 YEAR ENDED JANUARY 31, 2005 YEAR ENDED
(UNAUDITED) JULY 31, 2004 (UNAUDITED) JULY 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,162,031 $ 729,903 $ 5,154,731 $ 10,038,359
Net realized gains (losses) from:
Investments, futures, options written, short sales
and swaps (83) 31 6,895,451 5,690,303
Forward foreign currency contracts and foreign
currency transactions -- -- -- --
Net change in unrealized appreciation/depreciation of:
Investments, futures, options written, short sales
and swaps -- -- 1,773,983 6,678,030
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,161,948 729,934 13,824,165 22,406,692
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income--Class A -- -- (1,723,114) (4,904,702)
Net investment income--Class B -- -- (51,939) (220,926)
Net investment income--Class C -- -- (342,034) (1,039,169)
Net investment income--Class Y -- -- (130,158) (398,926)
Net investment income--Class P (1,162,031) (729,903) (3,289,988) (6,852,093)
Net realized gains from investment activities--Class A -- -- -- --
Net realized gains from investment activities--Class B -- -- -- --
Net realized gains from investment activities--Class C -- -- -- --
Net realized gains from investment activities--Class Y -- -- -- --
Net realized gains from investment activities--Class P -- -- -- --
(1,162,031) (729,903) (5,537,233) (13,415,816)
- -----------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 98,801,521 186,974,819 52,330,187 99,043,140
Cost of shares repurchased (83,084,842) (145,496,890) (51,317,717) (127,053,979)
Proceeds from dividends reinvested 1,063,678 674,006 4,818,125 11,318,608
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from beneficial
interest transactions 16,780,357 42,151,935 5,830,595 (16,692,231)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 16,780,274 42,151,966 14,117,527 (7,701,355)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 166,066,618 123,914,652 472,464,285 480,165,640
End of period $ 182,846,892 $ 166,066,618 $ 486,581,812 $ 472,464,285
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of)
net investment income (loss) $ -- $ -- $ (381,814) $ 688
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
150
<Page>
<Table>
<Caption>
UBS PACE UBS PACE
INTERMEDIATE FIXED INCOME STRATEGIC FIXED INCOME
INVESTMENTS INVESTMENTS
----------------------------------- -----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JANUARY 31, 2005 YEAR ENDED JANUARY 31, 2005 YEAR ENDED
(UNAUDITED) JULY 31, 2004 (UNAUDITED) JULY 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 5,803,263 $ 9,481,357 $ 6,909,259 $ 9,517,141
Net realized gains (losses) from:
Investments, futures, options written, short sales
and swaps 1,546,505 1,764,218 8,640,058 1,893,624
Forward foreign currency contracts and foreign
currency transactions 265,991 (448,236) 669,400 408,386
Net change in unrealized appreciation/depreciation of:
Investments, futures, options written, short sales
and swaps 831,617 (115,978) 883,419 7,456,923
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts (471,824) 354,781 (80,050) 68,434
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 7,975,552 11,036,142 17,022,086 19,344,508
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income--Class A (1,288,889) (2,618,777) (395,196) (667,408)
Net investment income--Class B (39,271) (132,165) (53,678) (146,766)
Net investment income--Class C (113,721) (224,390) (121,316) (217,930)
Net investment income--Class Y (19,994) (43,314) (12,227) (15,503)
Net investment income--Class P (4,429,250) (6,692,645) (6,760,021) (8,673,790)
Net realized gains from investment activities--Class A -- -- (548,443) --
Net realized gains from investment activities--Class B -- -- (90,297) --
Net realized gains from investment activities--Class C -- -- (198,165) --
Net realized gains from investment activities--Class Y -- -- (16,511) --
Net realized gains from investment activities--Class P -- -- (8,912,241) --
(5,891,125) (9,711,291) (17,108,095) (9,721,397)
- -----------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 60,816,777 127,537,085 75,281,392 146,166,803
Cost of shares repurchased (55,344,019) (118,091,613) (43,949,351) (80,409,067)
Proceeds from dividends reinvested 5,358,087 8,650,080 16,608,291 9,336,822
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from beneficial
interest transactions 10,830,845 18,095,552 47,940,332 75,094,558
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 12,915,272 19,420,403 47,854,323 84,717,669
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 367,662,357 348,241,954 386,355,688 301,638,019
End of period $ 380,577,629 $ 367,662,357 $ 434,210,011 $ 386,355,688
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of)
net investment income (loss) $ (565,011) $ (477,149) $ 676,019 $ 1,109,198
- -----------------------------------------------------------------------------------------------------------------------------------
<Caption>
UBS PACE UBS PACE
MUNICIPAL FIXED INCOME GLOBAL FIXED INCOME
INVESTMENTS INVESTMENTS
----------------------------------- -----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JANUARY 31, 2005 YEAR ENDED JANUARY 31, 2005 YEAR ENDED
(UNAUDITED) JULY 31, 2004 (UNAUDITED) JULY 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 3,998,045 $ 7,913,888 $ 4,064,578 $ 7,135,651
Net realized gains (losses) from:
Investments, futures, options written, short sales
and swaps 948,943 153,359 7,901,976 1,831,699
Forward foreign currency contracts and foreign
currency transactions -- -- 11,217,612 20,106,543
Net change in unrealized appreciation/depreciation of:
Investments, futures, options written, short sales
and swaps 1,387,975 (250,107) 15,643,410 (2,675,489)
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts -- -- 1,278,967 (139,249)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 6,334,963 7,817,140 40,106,543 26,259,155
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income--Class A (2,003,284) (4,424,753) (7,307,000) (13,669,899)
Net investment income--Class B (49,335) (137,089) (78,813) (154,920)
Net investment income--Class C (309,496) (688,788) (389,438) (712,046)
Net investment income--Class Y (3,337) (6,455) (465,155) (898,805)
Net investment income--Class P (1,631,306) (2,663,161) (10,857,267) (13,414,768)
Net realized gains from investment activities--Class A -- -- (275,150) --
Net realized gains from investment activities--Class B -- -- (3,248) --
Net realized gains from investment activities--Class C -- -- (15,545) --
Net realized gains from investment activities--Class Y -- -- (17,006) --
Net realized gains from investment activities--Class P -- -- (402,680) --
(3,996,758) (7,920,246) (19,811,302) (28,850,438)
- -----------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 22,145,263 53,861,807 48,996,899 94,881,164
Cost of shares repurchased (27,468,613) (64,127,480) (38,442,137) (72,757,636)
Proceeds from dividends reinvested 3,207,638 6,102,782 17,348,502 24,202,466
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from beneficial
interest transactions (2,115,712) (4,162,891) 27,903,264 46,325,994
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 222,493 (4,265,997) 48,198,505 43,734,711
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 256,584,092 260,850,089 383,453,975 339,719,264
End of period $ 256,806,585 $ 256,584,092 $ 431,652,480 $ 383,453,975
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of)
net investment income (loss) $ 1,287 $ -- $ (3,355,428) $ 11,677,667
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
151
<Page>
<Table>
<Caption>
UBS PACE UBS PACE
LARGE CO VALUE LARGE CO GROWTH
EQUITY INVESTMENTS EQUITY INVESTMENTS
----------------------------------- -----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JANUARY 31, 2005 YEAR ENDED JANUARY 31, 2005 YEAR ENDED
(UNAUDITED) JULY 31, 2004 (UNAUDITED) JULY 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 7,220,033 $ 9,902,918 $ 878,056 $ (1,703,493)
Net realized gains (losses) from:
Investments and futures 34,471,874 76,384,954 12,944,028 22,669,619
Forward foreign currency contracts and foreign
currency transactions -- 89 -- --
Net change in unrealized appreciation/depreciation of:
Investments and futures 60,160,584 40,562,037 54,112,972 8,233,606
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts (17) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 101,852,474 126,849,998 67,935,056 29,199,732
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income--Class A (3,302,952) (2,636,816) -- --
Net investment income--Class B -- -- -- --
Net investment income--Class C (94,894) (24,248) -- --
Net investment income--Class Y (518,871) (422,153) -- --
Net investment income--Class P (8,802,035) (5,319,468) -- --
Net realized gains from investment activities--Class A -- -- -- --
Net realized gains from investment activities--Class B -- -- -- --
Net realized gains from investment activities--Class C -- -- -- --
Net realized gains from investment activities--Class Y -- -- -- --
Net realized gains from investment activities--Class P -- -- -- --
(12,718,752) (8,402,685) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 124,312,108 241,882,686 122,095,124 240,268,084
Cost of shares repurchased (111,183,441) (200,340,890) (78,249,349) (130,610,222)
Proceeds from dividends reinvested 12,283,719 8,081,204 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from beneficial interest
transactions 25,412,386 49,623,000 43,845,775 109,657,862
- -----------------------------------------------------------------------------------------------------------------------------------
Redemption fees -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 114,546,108 168,070,313 111,780,831 138,857,594
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,006,602,724 838,532,411 684,919,208 546,061,614
End of period $ 1,121,148,832 $ 1,006,602,724 $ 796,700,039 $ 684,919,208
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of)
net investment income (loss) $ 273,247 $ 5,771,966 $ 878,056 $ --
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
152
<Page>
<Table>
<Caption>
UBS PACE UBS PACE
SMALL/MEDIUM CO VALUE SMALL/MEDIUM CO GROWTH
EQUITY INVESTMENTS EQUITY INVESTMENTS
----------------------------------- -----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JANUARY 31, 2005 YEAR ENDED JANUARY 31, 2005 YEAR ENDED
(UNAUDITED) JULY 31, 2004 (UNAUDITED) JULY 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ (329,892) $ (893,912) $ (1,448,689) $ (2,527,639)
Net realized gains (losses) from:
Investments and futures 30,070,444 37,381,862 11,003,725 37,587,834
Forward foreign currency contracts and foreign
currency transactions -- -- -- 208
Net change in unrealized appreciation/depreciation of:
Investments and futures 12,195,092 16,769,243 41,695,876 (12,814,369)
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 41,935,644 53,257,193 51,250,912 22,246,034
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income--Class A -- -- -- --
Net investment income--Class B -- -- -- --
Net investment income--Class C -- -- -- --
Net investment income--Class Y -- -- -- --
Net investment income--Class P -- -- -- --
Net realized gains from investment activities--Class A (5,167,752) -- (246,264) --
Net realized gains from investment activities--Class B (576,683) -- (10,739) --
Net realized gains from investment activities--Class C (1,406,140) -- (37,275) --
Net realized gains from investment activities--Class Y (394,662) -- (13,563) --
Net realized gains from investment activities--Class P (29,368,285) -- (1,173,764) --
(36,913,522) -- (1,481,605) --
- -----------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 48,370,077 94,456,197 45,939,709 91,626,888
Cost of shares repurchased (39,160,453) (69,923,549) (40,153,145) (72,961,980)
Proceeds from dividends reinvested 36,222,475 -- 1,451,003 --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from beneficial interest
transactions 45,432,099 24,532,648 7,237,567 18,664,908
- -----------------------------------------------------------------------------------------------------------------------------------
Redemption fees -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 50,454,221 77,789,841 57,006,874 40,910,942
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 352,024,855 274,235,014 337,421,182 296,510,240
End of period $ 402,479,076 $ 352,024,855 $ 394,428,056 $ 337,421,182
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of)
net investment income (loss) $ (329,892) $ -- $ (1,448,689) $ --
- -----------------------------------------------------------------------------------------------------------------------------------
<Caption>
UBS PACE UBS PACE
INTERNATIONAL INTERNATIONAL EMERGING
EQUITY INVESTMENTS MARKETS EQUITY INVESTMENTS
----------------------------------- -----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JANUARY 31, 2005 YEAR ENDED JANUARY 31, 2005 YEAR ENDED
(UNAUDITED) JULY 31, 2004 (UNAUDITED) JULY 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 2,076,436 $ 3,155,611 $ 471,835 $ 411,748
Net realized gains (losses) from:
Investments and futures 9,051,915 95,950,926 17,443,531 27,599,156
Forward foreign currency contracts and foreign
currency transactions (1,076,197) (1,154,361) (422,407) (433,641)
Net change in unrealized appreciation/depreciation of:
Investments and futures 77,352,528 2,710,472 23,216,574 (10,339,267)
Other assets and liabilities denominated in foreign
currency and forward foreign currency contracts 30,199 (29,149) (28,055) 42,680
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 87,434,881 100,633,499 40,681,478 17,280,676
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income--Class A (407,951) (381,401) (743) --
Net investment income--Class B -- -- -- --
Net investment income--Class C -- -- -- --
Net investment income--Class Y (366,534) (295,152) (22,732) --
Net investment income--Class P (3,759,337) (2,237,058) (144,071) --
Net realized gains from investment activities--Class A -- -- -- --
Net realized gains from investment activities--Class B -- -- -- --
Net realized gains from investment activities--Class C -- -- -- --
Net realized gains from investment activities--Class Y -- -- -- --
Net realized gains from investment activities--Class P -- -- -- --
(4,533,822) (2,913,611) (167,546) --
- -----------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 100,873,104 191,329,958 30,386,923 58,806,549
Cost of shares repurchased (61,023,273) (108,994,710) (17,128,943) (32,389,561)
Proceeds from dividends reinvested 4,442,258 2,844,335 165,695 --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from beneficial interest
transactions 44,292,089 85,179,583 13,423,675 26,416,988
- -----------------------------------------------------------------------------------------------------------------------------------
Redemption fees 4 173,977 499 16,243
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 127,193,152 183,073,448 53,938,106 43,713,907
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 566,573,116 383,499,668 139,352,536 95,638,629
End of period $ 693,766,268 $ 566,573,116 $ 193,290,642 $ 139,352,536
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of)
net investment income (loss) $ (879,842) $ 1,577,544 $ 181,410 $ (122,879)
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
153
<Page>
UBS PACE SELECT ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
UBS PACE Select Advisors Trust (the "Trust") is registered with the Securities
and Exchange Commission under the Investment Company Act of 1940, as amended, as
an open-end management investment company currently composed of twelve separate
investment portfolios and 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 thereafter. The trustees of the Trust have authority
to issue an unlimited number of shares of beneficial interest, par value $0.001
per share.
The Trust has twelve Portfolios available for investment, each having its own
investment objectives and policies: UBS PACE Money Market Investments, UBS PACE
Government Securities Fixed Income Investments, UBS PACE Intermediate Fixed
Income Investments, UBS PACE Strategic Fixed Income Investments, UBS PACE
Municipal Fixed Income Investments, UBS PACE Global Fixed Income Investments,
UBS PACE Large Co Value Equity Investments, UBS PACE Large Co Growth Equity
Investments, UBS PACE Small/Medium Co Value Equity Investments, UBS PACE
Small/Medium Co Growth Equity Investments, UBS PACE International Equity
Investments and UBS PACE International Emerging Markets Equity Investments
(collectively, the "Portfolios").
Each of the Portfolios is classified as a diversified investment company with
the exception of UBS PACE Intermediate Fixed Income Investments and UBS PACE
Global Fixed Income Investments. With the exception of UBS PACE Money Market
Investments (which currently offers Class P shares only), each Portfolio
currently offers Class A, Class B, Class C, Class Y and Class P shares. Each
class represents interests in the same assets of the applicable Portfolio and
the classes are identical except for differences in their sales charge
structures, ongoing service and distribution charges and certain transfer agency
and related services expenses. 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 each
class has exclusive voting rights with respect to its service and/or
distribution plan, if any. Class Y and Class P shares have no service or
distribution plan. The Portfolios' Class P shares currently are available only
to participants in the UBS PACE(SM) Select Advisors Program. UBS PACE Money
Market Investments shares are also available to participants in the UBS PACE(SM)
Multi Advisor Program.
In the normal course of business the Portfolios may enter into contracts that
contain a variety of representations or that provide indemnification for certain
liabilities. The Portfolios' maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the
Portfolios that have not yet occurred. However, the Portfolios have not had
prior claims or losses pursuant to these contracts and expect the risk of loss
to be remote.
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires Trust management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies:
VALUATION OF INVESTMENTS - Each Portfolio (except UBS PACE Money Market
Investments) calculates its net asset value based on the current market value
for its portfolio securities. The Portfolios normally obtain market values for
their 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.
Securities listed on foreign stock exchanges may be fair valued based on
significant events that have occurred subsequent to the close of the foreign
markets. In cases where 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 manager,
administrator and principal underwriter of the Portfolios, or by the relevant
Portfolio investment sub-advisor, where applicable. 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 Trust's Board of Trustees (the "Board"). The amortized cost
method of valuation, which approximates market value, generally is used to value
short-term debt instruments with sixty days or less remaining to maturity,
unless the Board determines that this does not represent fair value. Investments
of the UBS PACE Money Market Investments portfolio are valued using the
amortized cost method of valuation. All investments quoted in foreign currencies
154
<Page>
will be valued daily in U.S. dollars on the basis of the foreign currency
exchange rates prevailing at the time such valuation is determined by the
Portfolios' custodian.
Foreign currency exchange rates are generally determined prior to the close of
the New York Stock Exchange ("NYSE"). Occasionally, events affecting the value
of foreign investments and such exchange rates occur between the time at which
they are determined and the close of the NYSE, which will not be reflected in
the computation of the Portfolios' net asset value. If events materially
affecting the value of such securities or currency exchange rates occur during
such time periods, the securities will be valued at their fair value as
determined in good faith by or under the direction of the Board.
REPURCHASE AGREEMENTS - The Portfolios may purchase securities or other
obligations from a bank or securities dealer (or its affiliate), subject to the
seller's agreement to repurchase them at an agreed upon date (or upon demand)
and price. The Portfolios maintain custody of the underlying obligations prior
to their repurchase, either through its regular custodian or through a special
"tri-party" custodian or sub-custodian that maintains a separate account for
both the Portfolios and their counterparty. The underlying collateral is valued
daily 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 Portfolios generally have 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 Portfolios may suffer delays, costs
and possible losses in connection with the disposition or retention of the
collateral. Under certain circumstances, in the event of default or bankruptcy
by the other party to the agreement, realization and/or retention of the
collateral may be subject to legal proceedings. Each Portfolio (with the
exception of UBS PACE Municipal Fixed Income Investments) 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 and foreign exchange transactions are calculated using
the identified cost method. Dividend income is recorded on the ex-dividend date
("ex-date") (except in the case of certain dividends from foreign securities
which are recorded as soon after the ex-date as the respective Portfolio, using
reasonable diligence, becomes aware of such dividends). Interest income is
recorded on an accrual basis. Discounts are accreted and premiums are amortized
as adjustments to interest income and the identified cost of investments.
Income, expenses (excluding class-specific expenses) and realized/unrealized
gains/losses are allocated proportionately to each class of shares based upon
the relative net asset value of outstanding shares (or the value of
dividend-eligible shares, as appropriate) of each class at the beginning of the
day (after adjusting for current capital share activity of the respective
classes). Class-specific expenses are charged directly to the applicable class
of shares.
FOREIGN CURRENCY TRANSLATION - The books and records of the Portfolios are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars as follows: (1) the foreign currency market value of investment
securities and other assets and liabilities stated in foreign currencies are
translated using the Reuters/WM Company spot rates at 11:00 a.m. Eastern
Standard Time as of the close of the London Exchange; and (2) purchases, sales,
income and expenses are translated at the rate of exchange prevailing on the
respective dates of such transactions. The resulting exchange gains and losses
are included in the Statement of Operations.
The Portfolios do not generally isolate the effects of fluctuations in foreign
exchange rates from the effects of fluctuations in the market prices of
securities. However, the Portfolios do isolate the effect of fluctuations in
foreign exchange rates when determining the realized gain or loss upon the sale
or maturity of foreign currency-denominated debt obligations pursuant to U.S.
federal income tax regulations; such amount is categorized as realized foreign
currency transaction gain or loss for both financial reporting and income tax
purposes. Net realized foreign currency transaction gain (loss) is treated as
ordinary income (loss) for income tax reporting purposes.
FORWARD FOREIGN CURRENCY CONTRACTS - Certain Portfolios may enter into forward
foreign currency contracts ("forward contracts") in connection with planned
purchases or sales of securities or to hedge the U.S. dollar value of portfolio
securities denominated in a particular currency. The Portfolios may also engage
in cross-hedging by using forward contracts in one currency to hedge
fluctuations in the value of securities denominated in a different currency if
the applicable investment sub-advisor anticipates that there is a correlation
between the two currencies. Forward contracts may also be used to shift a
Portfolio's exposure to foreign currency fluctuations from one country to
another.
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<Page>
The Portfolios have no specific limitation on the percentage of assets which may
be committed to such contracts; however, the value of all forward contracts will
not exceed the value of a Portfolio's total assets. The Portfolios may enter
into forward contracts or maintain a net exposure to forward contracts only if
(1) the consummation of the contracts would not obligate the Portfolios to
deliver an amount of foreign currency in excess of the value of the positions
being hedged by such contracts or (2) the Portfolios maintain cash or liquid
securities in a segregated account in an amount not less than the value of a
Portfolio's total assets committed to the consummation of the forward contracts
and not covered as provided in (1) above, as marked-to-market daily.
Risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar.
Fluctuations in the value of open forward contracts are recorded for book
purposes as unrealized gains or losses on forward foreign currency contracts by
the Portfolios. Realized gains and losses on forward foreign currency contracts
include net gains or losses recognized by the Portfolios on contracts which have
matured.
OPTION WRITING - Certain Portfolios may write (sell) put and call options on
securities or derivative instruments in order to gain exposure to or protect
against changes in the markets. When a Portfolio writes a call or a put option,
an amount equal to the premium received by the Portfolio is included in the
Portfolio's Statement of Assets and Liabilities as an asset and as an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market value of the option written. If an option which the
Portfolio has written either expires on its stipulated expiration date or the
Portfolio enters into a closing purchase transaction, the Portfolio realizes a
gain (or loss if the cost of a closing purchase transaction exceeds the premium
received when the option was written) without regard to any unrealized gain or
loss on the underlying security or derivative instrument, and the liability
related to such option is extinguished. If a call option which the Portfolio has
written is exercised, the Portfolio recognizes a realized capital gain or loss
(long-term or short-term, depending on the holding period of the underlying
security) from the sale of the underlying security or derivative instrument and
the proceeds from the sale are increased by the premium originally received. If
a put option which the Portfolio has written is exercised, the amount of the
premium originally received reduces the cost of the security or derivative
instrument which the Portfolio purchases upon exercise of the option.
In writing an option, the Portfolios bear the market risk of an unfavorable
change in the price of the derivative instrument, security or currency
underlying the written option. Exercise of an option written by a Portfolio
could result in the Portfolio selling or buying a derivative instrument,
security or currency at a price different from current market value.
Written option activity for the six months ended January 31, 2005 for UBS PACE
Government Securities Fixed Income Investments, UBS PACE Intermediate Fixed
Income Investments, UBS PACE Strategic Fixed Income Investments and UBS PACE
Global Fixed Income Investments was as follows:
<Table>
<Caption>
UBS PACE GOVERNMENT UBS PACE INTERMEDIATE UBS PACE STRATEGIC UBS PACE GLOBAL
SECURITIES FIXED INCOME FIXED INCOME FIXED INCOME FIXED INCOME
INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF AMOUNT OF
CONTRACTS PREMIUMS CONTRACTS PREMIUMS CONTRACTS PREMIUMS NUMBER OF PREMIUMS
(000) RECEIVED (000) RECEIVED (000) RECEIVED CONTRACTS RECEIVED
- ----------------------------------------------------------------------------------------------------------------------------------
Options outstanding at July 31, 2004 60,000 $ 795,015 -- -- 67,000 $ 1,222,915 38 $ 14,116
Options written 421 536,725 66 $ 33,586 -- 3,470 -- --
Options terminated in closing
purchase transactions (26,701) (580,289) (46) (27,626) (8,200) (378,635) (38) (14,116)
Options expired prior to exercise (3,300) (132,495) (20) (5,960) (58,800) (847,750) -- --
Options exercised -- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Options outstanding at January 31, 2005 30,420 $ 618,956 -- $ -- -- $ -- -- $ --
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
WRITTEN CALL OPTIONS - In the event that the counterparty to the written options
contracts defaults on its obligation under the contracts, the maximum loss
related to these contracts is limited to the market value of the securities
subject to the written call options outstanding, which aggregated $101,494 at
January 31, 2005.
WRITTEN PUT OPTIONS - In the event that the counterparty to the written options
contracts defaults on its obligation under the contracts, the maximum loss
related to these contracts is limited to the notional amount of the written put
options outstanding, which aggregated $15,210,000 at January 31, 2005.
156
<Page>
PURCHASED OPTIONS - Certain Portfolios may also purchase put and call options.
Purchasing call options tends to increase exposure to the underlying instrument.
Purchasing put options tends to decrease exposure to the underlying instrument.
The Portfolio pays a premium which is included in the Statement of Assets and
Liabilities as an investment and subsequently marked to market to reflect the
current value of the option. Premiums paid for purchasing options which expire
are treated as realized losses. The risk associated with purchasing put and call
options is limited to the premium paid. Premiums paid for purchasing options
which are exercised or closed are added to the amounts paid or offset against
the proceeds on the underlying future, security or currency transaction to
determine the realized gain or loss.
FUTURES CONTRACTS - Certain Portfolios may use financial futures contracts for
hedging purposes and to adjust exposure to U.S. and foreign equity markets in
connection with a reallocation of the Portfolios' assets or to manage the
average duration of a Portfolio. Using financial futures contracts involves
various market risks. However, imperfect correlations between futures contracts
and the related securities or markets, or market disruptions, do not normally
permit full control of these risks at all times. The maximum amount at risk from
the purchase of a futures contract is the contract value.
Upon entering into a financial futures contract, a Portfolio is required to
pledge to a broker an amount of cash and/or government securities equal to a
certain percentage of the contract amount. This amount is known as the "initial
margin". Subsequent payments, known as "variation margin", are made or received
by the Portfolio each day, except UBS PACE Global Fixed Income Investments which
is made or received at settlement, depending on the daily fluctuations in the
value of the underlying financial futures contracts. Such variation margin is
recorded for financial statement purposes on a daily basis as an unrealized gain
or loss on futures until the financial futures contract is closed, at which time
the net gain or loss is reclassified to realized gain or loss on futures.
SHORT SALES "AGAINST THE BOX" - Each Portfolio (other than UBS Pace Money Market
Investments and UBS PACE Municipal Fixed Income Investments) may engage in short
sales of securities it owns or has the right to acquire at no added cost through
conversion or exchange of other securities it owns (short sales "against the
box"). To make delivery to the purchaser in a short sale, the executing broker
borrows the securities being sold short on behalf of a Portfolio, and that
Portfolio is obligated to replace the securities borrowed at a date in the
future. When a Portfolio sells short, it establishes a margin account with the
broker effecting the short sale and deposits collateral with the broker. In
addition, the Portfolio maintains, in a segregated account with is custodian,
the securities that could be used to cover the short sale. Each Portfolio incurs
transaction costs, including interest expense, in connection with opening,
maintaining and closing short sales "against the box".
A Portfolio might make a short sale "against the box" to hedge against market
risks when its investment manager or sub-advisor believes that the price of a
security may decline, thereby causing a decline in the value of a security owned
by the Portfolio or a security convertible into or exchangeable for a security
owned by the Portfolio. In such case, any loss in the Portfolio's long position
after the short sale should be reduced by a corresponding gain in the short
position. Conversely, any gain in the long position after the short sale should
be reduced by a corresponding loss in the short position. The extent to which
gains or losses in the long position are reduced will depend upon the amount of
the securities sold short relative to the amount of the securities a Portfolio
owns, either directly or indirectly, and in the case where the Portfolio owns
convertible securities, changes in the investment values or conversion premiums
of such securities.
REVERSE REPURCHASE AGREEMENTS - Certain Portfolios may enter into reverse
repurchase agreements with qualified third party broker-dealers as determined
by, and under the direction of, the Board. Interest on the value of reverse
repurchase agreements issued and outstanding is based upon competitive market
rates at the time of issuance. At the time the Portfolio enters into reverse
repurchase agreements, the Portfolio establishes and maintains a segregated
account with the Portfolio's custodian containing liquid securities having a
value not less than the repurchase price, including accrued interest, of the
reverse repurchase agreement. The Portfolios did not enter into any reverse
repurchase agreements during the six months ended January 31, 2005.
INTEREST RATE SWAP AGREEMENTS - Certain Portfolios may enter into interest rate
swap agreements to protect themselves from interest rate fluctuations. This type
of swap is an agreement that obligates two parties to exchange a series of cash
flows at specified intervals based upon or calculated by reference to a
specified interest rate(s) for a specified amount. The payment flows are usually
netted against each other, with the difference being paid by one party to the
other.
Risks may arise as a result of the failure of the counterparty to the swap
contract to comply with the terms of the contract. The loss incurred by the
failure of a counterparty is generally limited to the net interest payment to be
received by the Portfolio. Therefore, the Portfolio considers the
creditworthiness of the counterparty to a swap contract in evaluating potential
credit risk.
157
<Page>
The Portfolio accrues for interim payments on swap contracts on a daily basis,
with the net amount recorded within unrealized appreciation/depreciation of swap
contracts on the Statement of Assets and Liabilities. Once interim payments are
settled in cash, the net amount is recorded as realized gain/loss on swaps, in
addition to realized gain/loss recorded upon the termination of swap contracts
on the Statement of Operations. Fluctuations in the value of swap contracts are
recorded for financial statement purposes as unrealized appreciation or
depreciation of swaps.
At January 31, 2005, UBS PACE Government Securities Fixed Income Investments and
UBS PACE Strategic Fixed Income Investments had outstanding interest rate swap
contracts with the following terms:
UBS PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
<Table>
<Caption>
RATE TYPE
NOTIONAL ------------------------------------------
AMOUNT TERMINATION PAYMENTS MADE PAYMENTS RECEIVED UNREALIZED
(000) DATE BY THE FUND BY THE FUND DEPRECIATION
- -------------------------------------------------------------------------------------------------------------------
USD 8,400 06/15/15 5.000% 2.750%++ $ (130,374)
- -------------------------------------------------------------------------------------------------------------------
</Table>
UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
<Table>
<Caption>
RATE TYPE
NOTIONAL ------------------------------------------ UNREALIZED
AMOUNT TERMINATION PAYMENTS MADE PAYMENTS RECEIVED APPRECIATION
(000) DATES BY THE FUND BY THE FUND (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------------
EUR 1,800 06/17/10 2.179%+++ 4.000% $ (3,257)
EUR 2,400 06/17/10 2.179+++ 4.000 14,282
EUR 5,200 06/17/10 2.179+++ 4.000 28,515
EUR 5,600 06/17/10 2.179+++ 4.000 (7,666)
EUR 5,500 12/15/14 2.179+++ 4.000 398,522
EUR 4,000 06/17/15 2.179+++ 5.000 241,389
GBP 4,700 03/15/32 5.000 4.899++++ (100,882)
JPY 3,000,000 06/15/12 2.000 0.066+++++ (1,349,349)
USD 2,000 03/31/05 2.590+ 4.000* 5,428
USD 8,700 06/15/10 4.000 2.750++ (5,481)
USD 17,000 06/15/10 4.000 2.750++ (75,370)
USD 4,300 06/15/15 5.000 2.750++ (81,098)
USD 21,200 06/15/15 5.000 2.750++ (370,754)
USD 35,100 06/15/15 5.000 2.750++ (354,234)
USD 9,300 06/15/25 6.000 2.750++ (282,906)
USD 1,700 06/15/31 6.000 2.750++ (378,437)
USD 2,500 12/17/31 6.000 2.750++ (477,425)
- ---------------------------------------------------------------------------------------------------------------------
$ (2,798,723)
- ---------------------------------------------------------------------------------------------------------------------
</Table>
+ Rate based on 1 Month LIBOR (London Interbank Offered Rate).
++ Rate based on 3 Month LIBOR (London Interbank Offered Rate).
+++ Rate based on 6 Month LIBOR (EUR on Interbank Offered Rate).
++++ Rate based on 6 Month LIBOR (GBP on Interbank Offered Rate).
+++++ Rate based on 6 Month LIBOR (JPY on Interbank Offered Rate).
* Rate based on Lehman Brothers ERISA - eligible CMBS Index.
EUR Euro Dollars.
GBP Great Britain Pounds.
JPY Japanese Yen.
USD U.S. Dollars.
158
<Page>
DIVIDENDS AND DISTRIBUTIONS - Dividends and distributions to shareholders are
recorded on the ex-date. The amounts of dividends and distributions are
determined in accordance with federal income tax regulations, which may differ
from U.S. generally accepted accounting principles. These "book/tax" differences
are either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.
CONCENTRATION OF RISK
Investing in securities of foreign issuers and currency transactions may involve
certain considerations and risks not typically associated with investments in
the United States. These risks include revaluation of currencies, adverse
fluctuations in foreign currency values and possible adverse political, social
and economic developments, including those particular to a specific industry,
country or region, which could cause the securities and their markets to be less
liquid and prices more volatile than those of comparable U.S. companies and U.S.
government securities. These risks are greater with respect to securities of
issuers located in emerging market countries in which the UBS PACE Global Fixed
Income Investments, UBS PACE International Equity Investments and UBS PACE
International Emerging Markets Equity Investments Portfolios are authorized to
invest.
Small capitalization ("small cap") companies may be more vulnerable than larger
capitalization companies to adverse business or economic developments. Small cap
companies may also have limited product lines, markets or financial resources,
and may be dependent on a relatively small management group. Securities of such
companies may be less liquid and more volatile than securities of larger
capitalization companies or the market averages in general and therefore may
involve greater risk than investing in larger capitalization companies. In
addition, small cap companies may not be well-known to the investing public, may
not have institutional ownership and may have only cyclical, static or moderate
growth prospects. These risks are greater with respect to the securities in
which the UBS PACE Small/Medium Co Value Equity Investments and UBS PACE
Small/Medium Co Growth Equity Investments Portfolios tend to invest.
The ability of the issuers of debt securities held by the Portfolios to meet
their obligations may be affected by economic and political developments
particular to a specific industry, country, state or region.
INVESTMENT MANAGER AND ADMINISTRATOR
The Trust has entered into an investment management and administration contract
("Management Contract") with UBS Global AM. In accordance with the Management
Contract, each Portfolio pays UBS Global AM investment management and
administration fees, which are accrued daily and paid monthly, in accordance
with the following schedule:
<Table>
<Caption>
ANNUAL RATE
AS A PERCENTAGE OF
EACH PORTFOLIO'S
PORTFOLIO AVERAGE DAILY NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments 0.350%
UBS PACE Government Securities Fixed Income Investments 0.700% up to $500 million
0.650% above $500 million
up to $1 billion
0.625% above $1 billion
up to $1.5 billion
0.600% above $1.5 billion
up to $2 billion
0.575% above $2 billion
UBS PACE Intermediate Fixed Income Investments 0.600% up to $500 million
0.550% above $500 million
up to $1 billion
0.525% above $1 billion
up to $1.5 billion
0.500% above $1.5 billion
up to $2 billion
0.475% above $2 billion
</Table>
159
<Page>
<Table>
<Caption>
ANNUAL RATE
AS A PERCENTAGE OF
EACH PORTFOLIO'S
PORTFOLIO AVERAGE DAILY NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------------
UBS PACE Strategic Fixed Income Investments 0.700% up to $500 million
0.650% above $500 million
up to $1 billion
0.625% above $1 billion
up to $1.5 billion
0.600% above $1.5 billion
up to $2 billion
0.575% above $2 billion
UBS PACE Municipal Fixed Income Investments 0.600% up to $500 million
0.550% above $500 million
up to $1 billion
0.525% above $1 billion
up to $1.5 billion
0.500% above $1.5 billion
up to $2 billion
0.475% above $2 billion
UBS PACE Global Fixed Income Investments 0.800% up to $1 billion
0.775% above $1 billion
up to $2 billion
0.750% above $2 billion
UBS PACE Large Co Value Equity Investments 0.800%*
UBS PACE Large Co Growth Equity Investments 0.800% up to $500 million
0.775% above $500 million
up to $1 billion
0.750% above $1 billion
up to $2 billion
0.725% above $2 billion
UBS PACE Small/Medium Co Value Equity Investments 0.800% up to $750 million
0.775% above $750 million
UBS PACE Small/Medium Co Growth Equity Investments 0.800% up to $750 million
0.775% above $750 million
UBS PACE International Equity Investments 0.900% up to $500 million
0.875% above $500 million
up to $1 billion
0.850% above $1 billion
up to $2 billion
0.825% above $2 billion
UBS PACE International Emerging Markets Equity Investments 1.100% up to $500 million
1.075% above $500 million
up to $1 billion
1.050% above $1 billion
up to $2 billion
1.025% above $2 billion
</Table>
* See page 162 for additional information.
160
<Page>
Under separate Sub-Advisory Agreements, with the exception of UBS PACE Money
Market Investments, UBS Global AM (not the Portfolios) pays each investment
sub-advisor a fee from the investment management and administration fees which
UBS Global AM receives, which is accrued daily and paid monthly, in accordance
with the following schedule:
<Table>
<Caption>
ANNUAL RATE
AS A PERCENTAGE OF
EACH PORTFOLIO'S
PORTFOLIO INVESTMENT SUB-ADVISOR AVERAGE DAILY NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Pacific Investment Management Company LLC 0.225%
Income Investments
UBS PACE Intermediate Fixed Income BlackRock Financial Management, Inc. 0.200% up to $120 million
Investments 0.100% above $120 million
UBS PACE Strategic Fixed Income Investments Pacific Investment Management Company LLC 0.250%
UBS PACE Municipal Fixed Income Investments Standish Mellon Asset Management Company LLC 0.200% up to $60 million
0.150% above $60 million
UBS PACE Global Fixed Income Investments Fischer Francis Trees & Watts, Inc. 0.250% up to $400 million
(and affiliates)
0.200% above $400 million
Rogge Global Partners plc 0.250%
UBS PACE Large Co Value Equity Investments Institutional Capital Corp. 0.300%
SSgA Funds Management, Inc. 0.150%
Westwood Management Corp. 0.300%
UBS PACE Large Co Growth Equity Investments GE Asset Management, Inc. 0.300%
Marsico Capital Management, LLC 0.300%
SSgA Funds Management, Inc. 0.150%
UBS PACE Small/Medium Co Value Equity Ariel Capital Management LLC 0.300%
Investments ICM Asset Management, Inc. 0.300%
UBS PACE Small/Medium Co Growth Equity Delaware Management Company 0.400%
Investments
UBS PACE International Equity J.P. Morgan Asset Management Inc. 0.200%
Investments Martin Currie Inc. 0.350% up to $150 million
0.300% above $150 million
up to $250 million
0.250% above $250 million
up to $350 million
0.200% above $350 million
Mondrian Investment Partners Ltd.** 0.350% up to $150 million
0.300% above $150 million
UBS PACE International Emerging Markets Mondrian Investment Partners Ltd.* 0.650% up to $150 million
Equity Investments 0.550% above $150 million
up to $250 million
0.500% above $250 million
Baring International Investment Limited* 0.500%
Gartmore Global Partners 0.500%
</Table>
* Mondrian Investment Partners Ltd. replaced Baring International
Investment Limited effective September 28, 2004
** Delaware International Advisers Ltd. changed its name to Mondrian
Investment Partners Ltd. on September 24, 2004.
161
<Page>
At January 31, 2005, certain Portfolios owed UBS Global AM for investment
management and administration fees as follows:
<Table>
<Caption>
AMOUNTS
PORTFOLIO OWED
- ---------------------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 55,872
UBS PACE Government Securities Fixed Income Investments 287,092
UBS PACE Intermediate Fixed Income Investments 192,311
UBS PACE Strategic Fixed Income Investments 254,813
UBS PACE Municipal Fixed Income Investments 130,487
UBS PACE Global Fixed Income Investments 291,656
UBS PACE Large Co Value Equity Investments 642,250
UBS PACE Large Co Growth Equity Investments 504,373
UBS PACE Small/Medium Co Value Equity Investments 270,803
UBS PACE Small/Medium Co Growth Equity Investments 265,418
UBS PACE International Equity Investments 521,594
UBS PACE International Emerging Markets Equity Investments 174,636
</Table>
UBS Global AM has entered into a written agreement with each of UBS PACE Large
Co Value Equity Investments and UBS PACE Large Co Growth Equity Investments
under which UBS Global AM is contractually obligated to waive its management
fees to the extent necessary to reflect the lower overall fees paid to the
Portfolios' investment advisors as a result of the lower sub-advisory fees paid
by UBS Global AM to SSgA. Additionally, UBS PACE Large Co Value Equity
Investments and UBS Global AM have entered into additional fee waivers,
effective December 1, 2003, whereby, UBS Global AM has agreed to permanently
reduce its management fees based on the Portfolio's average daily net assets of
the Portfolio as follows: $0 to $250 million-0.60%; in excess of $250 million up
to $500 million-0.57%; in excess of $500 million up to $1 billion-0.53%; and
over $1 billion-0.50%.
For the six months ended January 31, 2005, UBS Global AM was contractually
obligated to waive $615,165 and $167,875 in investment management and
administration fees for UBS PACE Large Co Value Equity Investments and UBS PACE
Large Co Growth Equity Investments, respectively. Additionally, for the six
months ended January 31, 2005, UBS Global AM had the following voluntary fee
waivers, reimbursements, and recoupments. The recoupments are included in the
investment management and administration fees on the Statements of Operations.
The fee waivers and reimbursements for the six months ended January 31, 2005,
which are subject to repayment by the Portfolios through July 31, 2008, were as
follows:
<Table>
<Caption>
FEE
WAIVERS
AND
EXPENSE
PORTFOLIO REIMBURSEMENTS RECOUPMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 286,685 --
UBS PACE Government Securities Fixed Income Investments 241,524 --
UBS PACE Intermediate Fixed Income Investments 22,282 --
UBS PACE Strategic Fixed Income Investments 85,707 $ 1,918
UBS PACE Municipal Fixed Income Investments 90,559 --
UBS PACE Global Fixed Income Investments 214,623 392
UBS PACE Large Co Value Equity Investments 2,485 136,475
UBS PACE Large Co Growth Equity Investments 3,880 16,286
UBS PACE Small/Medium Co Value Equity Investments 4,129 6,772
UBS PACE Small/Medium Co Growth Equity Investments 62,617 1,811
UBS PACE International Equity Investments -- 12,364
UBS PACE International Emerging Markets Equity Investments 15,113 764
</Table>
162
<Page>
UBS Global AM is contractually obligated to waive all or a portion of its
investment management and administration fees and to reimburse certain operating
expenses for the six months ended January 31, 2005 to maintain the total annual
operating expenses at a level not to exceed the following:
<Table>
<Caption>
PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments 0.60%
UBS PACE Government Securities Fixed Income Investments--Class A 1.08
UBS PACE Government Securities Fixed Income Investments--Class B 1.84
UBS PACE Government Securities Fixed Income Investments--Class C 1.62
UBS PACE Government Securities Fixed Income Investments--Class Y 0.76
UBS PACE Government Securities Fixed Income Investments--Class P 0.87
UBS PACE Intermediate Fixed Income Investments--Class A 1.07
UBS PACE Intermediate Fixed Income Investments--Class B 1.81
UBS PACE Intermediate Fixed Income Investments--Class C 1.56
UBS PACE Intermediate Fixed Income Investments--Class Y 0.81
UBS PACE Intermediate Fixed Income Investments--Class P 0.80
UBS PACE Strategic Fixed Income Investments--Class A 1.23
UBS PACE Strategic Fixed Income Investments--Class B 1.94
UBS PACE Strategic Fixed Income Investments--Class C 1.72
UBS PACE Strategic Fixed Income Investments--Class Y 1.03
UBS PACE Strategic Fixed Income Investments--Class P 0.93
UBS PACE Municipal Fixed Income Investments--Class A 0.96
UBS PACE Municipal Fixed Income Investments--Class B 1.71
UBS PACE Municipal Fixed Income Investments--Class C 1.48
UBS PACE Municipal Fixed Income Investments--Class Y 0.74
UBS PACE Municipal Fixed Income Investments--Class P 0.76
UBS PACE Global Fixed Income Investments--Class A 1.36
UBS PACE Global Fixed Income Investments--Class B 2.11
UBS PACE Global Fixed Income Investments--Class C 1.85
UBS PACE Global Fixed Income Investments--Class Y 1.05
UBS PACE Global Fixed Income Investments--Class P 1.13
UBS PACE Large Co Value Equity Investments--Class A 1.25
UBS PACE Large Co Value Equity Investments--Class B 2.05
UBS PACE Large Co Value Equity Investments--Class C 2.04
UBS PACE Large Co Value Equity Investments--Class Y 0.91
UBS PACE Large Co Value Equity Investments--Class P 1.02
UBS PACE Large Co Growth Equity Investments--Class A 1.30
UBS PACE Large Co Growth Equity Investments--Class B 2.16
UBS PACE Large Co Growth Equity Investments--Class C 2.11
UBS PACE Large Co Growth Equity Investments--Class Y 0.93
UBS PACE Large Co Growth Equity Investments--Class P 1.05
UBS PACE Small/Medium Co Value Equity Investments--Class A 1.42
UBS PACE Small/Medium Co Value Equity Investments--Class B 2.21
UBS PACE Small/Medium Co Value Equity Investments--Class C 2.19
UBS PACE Small/Medium Co Value Equity Investments--Class Y 1.19
UBS PACE Small/Medium Co Value Equity Investments--Class P 1.16
</Table>
163
<Page>
<Table>
<Caption>
PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------------
UBS PACE Small/Medium Co Growth Equity Investments--Class A 1.41%
UBS PACE Small/Medium Co Growth Equity Investments--Class B 2.27
UBS PACE Small/Medium Co Growth Equity Investments--Class C 2.20
UBS PACE Small/Medium Co Growth Equity Investments--Class Y 1.29
UBS PACE Small/Medium Co Growth Equity Investments--Class P 1.13
UBS PACE International Equity Investments--Class A 1.65
UBS PACE International Equity Investments--Class B 2.65
UBS PACE International Equity Investments--Class C 2.47
UBS PACE International Equity Investments--Class Y 1.22
UBS PACE International Equity Investments--Class P 1.40
UBS PACE International Emerging Markets Equity Investments--Class A 2.26
UBS PACE International Emerging Markets Equity Investments--Class B 3.03
UBS PACE International Emerging Markets Equity Investments--Class C 3.05
UBS PACE International Emerging Markets Equity Investments--Class Y 2.07
UBS PACE International Emerging Markets Equity Investments--Class P 2.00
</Table>
Each 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.
At January 31, 2005, the following Portfolios had remaining fee waivers and
expense reimbursements subject to repayment to UBS Global AM and respective
dates of expiration as follows:
<Table>
<Caption>
FEE WAIVERS/
EXPENSE
REIMBURSEMENTS EXPIRES EXPIRES EXPIRES EXPIRES
SUBJECT TO JULY 31, JULY 31, JULY 31, JULY 31,
PORTFOLIO REPAYMENT 2005 2006 2007 2008
- ----------------------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 2,354,873 $ 854,351 $ 703,657 $ 510,180 $ 286,685
UBS PACE Government Securities Fixed Income Investments--Class A 1,032,711 411,547 329,289 216,241 75,634
UBS PACE Government Securities Fixed Income Investments--Class B 55,945 18,143 21,806 12,369 3,627
UBS PACE Government Securities Fixed Income Investments--Class C 357,817 144,546 108,668 75,838 28,765
UBS PACE Government Securities Fixed Income Investments--Class Y 178,255 125,580 32,896 15,212 4,567
UBS PACE Government Securities Fixed Income Investments--Class P 1,187,135 451,489 311,241 295,474 128,931
UBS PACE Intermediate Fixed Income Investments--Class A 407,665 201,946 135,304 62,979 7,436
UBS PACE Intermediate Fixed Income Investments--Class B 22,601 9,806 9,127 3,162 506
UBS PACE Intermediate Fixed Income Investments--Class C 39,193 18,614 14,091 5,375 1,113
UBS PACE Intermediate Fixed Income Investments--Class Y 8,059 4,297 2,534 941 287
UBS PACE Intermediate Fixed Income Investments--Class P 482,573 175,698 188,707 105,228 12,940
UBS PACE Strategic Fixed Income Investments--Class A 54,090 33,683 9,761 10,646 --
UBS PACE Strategic Fixed Income Investments--Class B 8,388 4,145 2,614 977 652
UBS PACE Strategic Fixed Income Investments--Class C 8,959 6,150 2,809 -- --
UBS PACE Strategic Fixed Income Investments--Class Y 176 176 -- -- --
UBS PACE Strategic Fixed Income Investments--Class P 748,460 244,498 231,947 186,960 85,055
UBS PACE Municipal Fixed Income Investments--Class A 746,568 315,097 207,083 175,866 48,522
UBS PACE Municipal Fixed Income Investments--Class B 40,732 19,479 12,234 7,322 1,697
UBS PACE Municipal Fixed Income Investments--Class C 128,305 55,212 34,944 30,233 7,916
UBS PACE Municipal Fixed Income Investments--Class Y 1,573 774 380 313 106
UBS PACE Municipal Fixed Income Investments--Class P 322,922 112,387 80,057 98,160 32,318
</Table>
164
<Page>
<Table>
<Caption>
FEE WAIVERS/
EXPENSE
REIMBURSEMENTS EXPIRES EXPIRES EXPIRES EXPIRES
SUBJECT TO JULY 31, JULY 31, JULY 31, JULY 31,
PORTFOLIO REPAYMENT 2005 2006 2007 2008
- ---------------------------------------------------------------------------------------------------------------------------------
UBS PACE Global Fixed Income Investments--Class A $ 732,251 $ 327,977 $ 209,982 $ 150,181 $ 44,111
UBS PACE Global Fixed Income Investments--Class B 10,494 5,154 2,650 2,095 595
UBS PACE Global Fixed Income Investments--Class C 44,923 18,775 14,917 7,929 3,302
UBS PACE Global Fixed Income Investments--Class Y 14,896 5,369 6,563 2,964 --
UBS PACE Global Fixed Income Investments--Class P 1,108,378 321,052 286,377 334,334 166,615
UBS PACE Large Co Value Equity Investments--Class A 441,083 289,771 151,312 -- --
UBS PACE Large Co Value Equity Investments--Class B 99,250 62,074 32,093 2,598 2,485
UBS PACE Large Co Value Equity Investments--Class C 69,461 45,332 24,129 -- --
UBS PACE Large Co Value Equity Investments--Class Y 6,664 -- 6,664 -- --
UBS PACE Large Co Value Equity Investments--Class P 176,887 82,951 93,936 -- --
UBS PACE Large Co Growth Equity Investments--Class A 291,083 186,548 102,529 2,006 --
UBS PACE Large Co Growth Equity Investments--Class B 68,859 41,115 18,937 5,487 3,320
UBS PACE Large Co Growth Equity Investments--Class C 57,953 34,220 19,064 4,109 560
UBS PACE Large Co Growth Equity Investments--Class Y 17,662 9,449 8,213 -- --
UBS PACE Large Co Growth Equity Investments--Class P 421,327 275,077 146,250 -- --
UBS PACE Small/Medium Co Value Equity Investments--Class A 18,245 3,388 14,857 -- --
UBS PACE Small/Medium Co Value Equity Investments--Class B 4,206 2,117 2,089 -- --
UBS PACE Small/Medium Co Value Equity Investments--Class C 1,912 1,731 -- 181 --
UBS PACE Small/Medium Co Value Equity Investments--Class Y 38 38 -- -- --
UBS PACE Small/Medium Co Value Equity Investments--Class P 573,709 249,183 226,693 93,704 4,129
UBS PACE Small/Medium Co Growth Equity Investments--Class A 23,322 23,322 -- -- --
UBS PACE Small/Medium Co Growth Equity Investments--Class B 19,230 14,467 3,499 590 674
UBS PACE Small/Medium Co Growth Equity Investments--Class C 6,214 5,219 995 -- --
UBS PACE Small/Medium Co Growth Equity Investments--Class P 654,144 274,519 216,010 101,672 61,943
UBS PACE International Equity Investments--Class A 105,745 71,957 33,788 -- --
UBS PACE International Equity Investments--Class B 7,696 6,903 793 -- --
UBS PACE International Equity Investments--Class C 16,616 11,432 5,184 -- --
UBS PACE International Equity Investments--Class P 6,254 6,254 -- -- --
UBS PACE International Emerging Markets Equity Investments--Class A 40,036 31,012 9,024 -- --
UBS PACE International Emerging Markets Equity Investments--Class B 34,965 26,092 8,754 23 96
UBS PACE International Emerging Markets Equity Investments--Class C 20,941 16,065 4,876 -- --
UBS PACE International Emerging Markets Equity Investments--Class Y 1,225 1,225 -- -- --
UBS PACE International Emerging Markets Equity Investments--Class P 844,034 465,898 280,937 82,182 15,017
</Table>
UBS PACE Small/Medium Co Growth Equity Investments Class Y and UBS PACE
International Equity Investments Class Y have no remaining fee waivers and
reimbursements subject to repayment.
165
<Page>
At January 31, 2005, UBS Global AM owed (was owed by) certain Portfolios for fee
waivers and reimbursements (recouped fee waivers and reimbursements) as follows:
<Table>
<Caption>
AMOUNTS DUE
PORTFOLIO (OWED)
- -------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 54,445
UBS PACE Government Securities Fixed Income Investments 37,609
UBS PACE Intermediate Fixed Income Investments (7,816)
UBS PACE Strategic Fixed Income Investments 13,766
UBS PACE Municipal Fixed Income Investments 13,868
UBS PACE Global Fixed Income Investments 34,726
UBS PACE Large Co Value Equity Investments (25,294)
UBS PACE Large Co Growth Equity Investments (3,469)
UBS PACE Small/Medium Co Value Equity Investments (1,534)
UBS PACE Small/Medium Co Growth Equity Investments 8,218
UBS PACE International Equity Investments (3,714)
UBS PACE International Emerging Markets Equity Investments (18)
</Table>
During the six months ended January 31, 2005, UBS PACE Large Co Value Equity
Investments, UBS PACE Large Co Growth Equity Investments, and UBS PACE
International Emerging Markets Equity Investments paid $35,913, $19,986 and
$800, respectively, in brokerage commissions to UBS Financial Services Inc., an
indirect wholly owned subsidiary of UBS AG, and UBS PACE International Emerging
Markets Equity Investments paid $16,174 in brokerage commissions to UBS AG, for
transactions executed on behalf of the respective Portfolios.
SERVICE AND DISTRIBUTION PLANS
UBS Global AM is the principal underwriter of each Portfolios' shares. Under
separate plans of service and/or distribution pertaining to Class A, Class B and
Class C shares, the Portfolios (with the exception of UBS PACE Money Market
Investments) pay UBS Global AM monthly service fees at the annual rate of 0.25%
of the average daily net assets of Class A, Class B and Class C shares and
monthly distribution fees (1) at the annual rate of 0.75% of the average daily
net assets on Class B and Class C shares for UBS PACE Large Co Value Equity
Investments, UBS PACE Large Co Growth Equity Investments, UBS PACE Small/Medium
Co Value Equity Investments, UBS PACE Small/Medium Co Growth Equity Investments,
UBS PACE International Equity Investments and UBS PACE International Emerging
Markets Equity Investments Portfolios and (2) at the annual rate of 0.75% and
0.50% of the average daily net assets of Class B and Class C shares,
respectively, for UBS PACE Government Securities Fixed Income Investments, UBS
PACE Intermediate Fixed Income Investments, UBS PACE Strategic Fixed Income
Investments, UBS PACE Municipal Fixed Income Investments and UBS PACE Global
Fixed Income Investments Portfolios.
UBS Global AM also receives the proceeds of the initial sales charges paid upon
the purchase of Class A and the contingent deferred sales charges paid by
shareholders upon certain redemptions of Class A, Class B and Class C shares.
166
<Page>
At January 31, 2005, certain Portfolios owed UBS Global AM service and
distribution fees, and for the six months ended January 31, 2005, certain
Portfolios were informed by UBS Global AM that it had earned sales charges as
follows:
<Table>
<Caption>
SERVICE AND
DISTRIBUTION FEES SALES CHARGES
PORTFOLIO OWED EARNED
- -------------------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments--Class A $ 31,658 $ 3,717
UBS PACE Government Securities Fixed Income Investments--Class B 5,482 12,265
UBS PACE Government Securities Fixed Income Investments--Class C 25,155 336
UBS PACE Intermediate Fixed Income Investments--Class A 17,842 2,512
UBS PACE Intermediate Fixed Income Investments--Class B 2,301 3,246
UBS PACE Intermediate Fixed Income Investments--Class C 5,681 1
UBS PACE Strategic Fixed Income Investments--Class A 4,940 3,992
UBS PACE Strategic Fixed Income Investments--Class B 3,072 3,667
UBS PACE Strategic Fixed Income Investments--Class C 5,339 19
UBS PACE Municipal Fixed Income Investments--Class A 26,773 11,892
UBS PACE Municipal Fixed Income Investments--Class B 3,200 5,879
UBS PACE Municipal Fixed Income Investments--Class C 14,906 --
UBS PACE Global Fixed Income Investments--Class A 34,418 1,584
UBS PACE Global Fixed Income Investments--Class B 1,600 574
UBS PACE Global Fixed Income Investments--Class C 5,852 4
UBS PACE Large Co Value Equity Investments--Class A 65,847 29,042
UBS PACE Large Co Value Equity Investments--Class B 11,213 15,039
UBS PACE Large Co Value Equity Investments--Class C 34,813 327
UBS PACE Large Co Growth Equity Investments--Class A 20,793 10,296
UBS PACE Large Co Growth Equity Investments--Class B 3,962 6,054
UBS PACE Large Co Growth Equity Investments--Class C 9,383 17
UBS PACE Small/Medium Co Value Equity Investments--Class A 11,481 15,688
UBS PACE Small/Medium Co Value Equity Investments--Class B 4,937 4,552
UBS PACE Small/Medium Co Value Equity Investments--Class C 12,153 63
UBS PACE Small/Medium Co Growth Equity Investments--Class A 13,280 10,341
UBS PACE Small/Medium Co Growth Equity Investments--Class B 2,214 1,900
UBS PACE Small/Medium Co Growth Equity Investments--Class C 7,687 51
UBS PACE International Equity Investments--Class A 20,906 8,492
UBS PACE International Equity Investments--Class B 875 1,226
UBS PACE International Equity Investments--Class C 7,148 33
UBS PACE International Emerging Markets Equity Investments--Class A 2,947 3,056
UBS PACE International Emerging Markets Equity Investments--Class B 723 208
UBS PACE International Emerging Markets Equity Investments--Class C 3,671 8
</Table>
REDEMPTION FEES
UBS PACE International Equity Investments and UBS PACE International Emerging
Markets Equity Investments charge a 1.00% redemption fee if you sell or exchange
Class A shares or sell Class Y shares less than 90 days after you purchase them.
This amount will be paid to the applicable Portfolio not to UBS Global AM. For
the six months ended January 31, 2005, the redemption fees paid to UBS PACE
International Equity Investments and UBS PACE International Emerging Markets
Equity Investments were $4 and $499, respectively.
167
<Page>
TRANSFER AGENCY AND RELATED SERVICES FEES
UBS Financial Services Inc. provides transfer agency related services to the
Portfolios pursuant to a delegation of authority from PFPC Inc. ("PFPC"), the
Portfolios transfer agent, and is compensated for these services by PFPC, not
the Portfolios.
For the six months ended January 31, 2005, UBS Financial Services Inc. received
from PFPC, not the Portfolios, total transfer agency related services fees paid
by the Portfolios to PFPC as follows:
<Table>
<Caption>
TRANSFER AGENCY
RELATED
SERVICES FEES
PORTFOLIO EARNED
- --------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 175,057
UBS PACE Government Securities Fixed Income Investments 187,782
UBS PACE Intermediate Fixed Income Investments 110,427
UBS PACE Strategic Fixed Income Investments 182,148
UBS PACE Municipal Fixed Income Investments 48,719
UBS PACE Global Fixed Income Investments 244,091
UBS PACE Large Co Value Equity Investments 360,024
UBS PACE Large Co Growth Equity Investments 281,630
UBS PACE Small/Medium Co Value Equity Investments 234,422
UBS PACE Small/Medium Co Growth Equity Investments 241,170
UBS PACE International Equity Investments 254,877
UBS PACE International Emerging Markets Equity Investments 190,590
</Table>
For the six months ended January 31, 2005, each Portfolio accrued transfer
agency and related services fees on each class as follows:
<Table>
<Caption>
TRANSFER
AGENCY AND
RELATED
PORTFOLIO SERVICES FEES
- --------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments--Class A $ 83,916
UBS PACE Government Securities Fixed Income Investments--Class B 4,410
UBS PACE Government Securities Fixed Income Investments--Class C 39,142
UBS PACE Government Securities Fixed Income Investments--Class Y 1,436
UBS PACE Government Securities Fixed Income Investments--Class P 195,361
UBS PACE Intermediate Fixed Income Investments--Class A 51,321
UBS PACE Intermediate Fixed Income Investments--Class B 2,165
UBS PACE Intermediate Fixed Income Investments--Class C 5,305
UBS PACE Intermediate Fixed Income Investments--Class Y 776
UBS PACE Intermediate Fixed Income Investments--Class P 121,487
UBS PACE Strategic Fixed Income Investments--Class A 18,221
UBS PACE Strategic Fixed Income Investments--Class B 3,181
UBS PACE Strategic Fixed Income Investments--Class C 5,332
UBS PACE Strategic Fixed Income Investments--Class Y 201
UBS PACE Strategic Fixed Income Investments--Class P 286,008
UBS PACE Municipal Fixed Income Investments--Class A 31,459
UBS PACE Municipal Fixed Income Investments--Class B 1,153
UBS PACE Municipal Fixed Income Investments--Class C 7,192
UBS PACE Municipal Fixed Income Investments--Class Y 110
UBS PACE Municipal Fixed Income Investments--Class P 43,845
</Table>
168
<Page>
<Table>
<Caption>
TRANSFER
AGENCY AND
RELATED
PORTFOLIO SERVICES FEES
- --------------------------------------------------------------------------------
UBS PACE Global Fixed Income Investments--Class A $ 115,500
UBS PACE Global Fixed Income Investments--Class B 1,428
UBS PACE Global Fixed Income Investments--Class C 6,812
UBS PACE Global Fixed Income Investments--Class Y 959
UBS PACE Global Fixed Income Investments--Class P 286,623
UBS PACE Large Co Value Equity Investments--Class A 181,249
UBS PACE Large Co Value Equity Investments--Class B 26,442
UBS PACE Large Co Value Equity Investments--Class C 32,623
UBS PACE Large Co Value Equity Investments--Class Y 1,674
UBS PACE Large Co Value Equity Investments--Class P 356,120
UBS PACE Large Co Growth Equity Investments--Class A 90,873
UBS PACE Large Co Growth Equity Investments--Class B 11,494
UBS PACE Large Co Growth Equity Investments--Class C 15,323
UBS PACE Large Co Growth Equity Investments--Class Y 494
UBS PACE Large Co Growth Equity Investments--Class P 359,053
UBS PACE Small/Medium Co Value Equity Investments--Class A 35,682
UBS PACE Small/Medium Co Value Equity Investments--Class B 6,372
UBS PACE Small/Medium Co Value Equity Investments--Class C 10,838
UBS PACE Small/Medium Co Value Equity Investments--Class Y 863
UBS PACE Small/Medium Co Value Equity Investments--Class P 344,858
UBS PACE Small/Medium Co Growth Equity Investments--Class A 46,770
UBS PACE Small/Medium Co Growth Equity Investments--Class B 5,167
UBS PACE Small/Medium Co Growth Equity Investments--Class C 9,090
UBS PACE Small/Medium Co Growth Equity Investments--Class Y 327
UBS PACE Small/Medium Co Growth Equity Investments--Class P 343,348
UBS PACE International Equity Investments--Class A 87,382
UBS PACE International Equity Investments--Class B 2,388
UBS PACE International Equity Investments--Class C 10,791
UBS PACE International Equity Investments--Class Y 1,627
UBS PACE International Equity Investments--Class P 325,018
UBS PACE International Emerging Markets Equity Investments--Class A 14,152
UBS PACE International Emerging Markets Equity Investments--Class B 1,926
UBS PACE International Emerging Markets Equity Investments--Class C 5,197
UBS PACE International Emerging Markets Equity Investments--Class Y 777
UBS PACE International Emerging Markets Equity Investments--Class P 289,564
</Table>
SECURITIES LENDING
Each Portfolio 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, U.S. government securities or irrevocable letters of credit
in an amount at least equal to the market value of the securities loaned, plus
accrued interest and dividends, determined on a daily basis and adjusted
accordingly. The Portfolio will regain ownership of loaned securities to
exercise certain beneficial rights; however, each Portfolio may bear the risk of
delay in recovery of, or even loss of rights in, the securities loaned should
the borrower fail financially. Each Portfolio receives compensation for lending
its securities from interest or dividends earned on the cash, U.S. government
securities or irrevocable letters of credit held as collateral, net of fee
rebates paid to the borrower plus reasonable administrative and custody fees.
UBS Financial Services Inc. an indirect wholly
169
<Page>
owned subsidiary of UBS AG, and other affiliated broker-dealers have been
approved as borrowers under the Portfolios' securities lending program. UBS
Securities LLC is each Portfolios lending agent.
For the six months ended January 31, 2005, UBS Securities LLC earned
compensation from certain Portfolios as the Portfolios' lending agent as
follows:
<Table>
<Caption>
PORTFOLIO COMPENSATION
- -------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments $ 584
UBS PACE Intermediate Fixed Income Investments 6,686
UBS PACE Global Fixed Income Investments 1,981
UBS PACE Large Co Value Equity Investments 25,431
UBS PACE Large Co Growth Equity Investments 12,370
UBS PACE Small/Medium Co Value Equity Investments 4,901
UBS PACE Small/Medium Co Growth Equity Investments 8,413
UBS PACE International Equity Investments 27,329
UBS PACE International Emerging Markets Equity Investments 11,957
</Table>
At January 31, 2005, certain Portfolios owed UBS Securities LLC in compensation
as the Portfolios' lending agent as follows:
<Table>
<Caption>
AMOUNTS
PORTFOLIO OWED
- --------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments $ 29
UBS PACE Intermediate Fixed Income Investments 2,137
UBS PACE Global Fixed Income Investments 239
UBS PACE Large Co Value Equity Investments 4,286
UBS PACE Large Co Growth Equity Investments 2,223
UBS PACE Small/Medium Co Value Equity Investments 510
UBS PACE Small/Medium Co Growth Equity Investments 1,025
UBS PACE International Equity Investments 5,289
UBS PACE International Emerging Markets Equity Investments 2,255
</Table>
At January 31, 2005 UBS PACE Intermediate Fixed Income Investments and UBS
Global Fixed Income Investments had securities on loan having a market value of
$55,153,337 and $1,922,490, respectively. The custodian for UBS PACE
Intermediate Fixed Income Investments and UBS Global Fixed Income Investments
held cash and cash equivalents as collateral for securities loaned of
$19,715,292 and $612,685, respectively. In addition, UBS PACE Intermediate Fixed
Income Investments and UBS Global Fixed Income Investments held U.S. Government
agency securities having an aggregate value of $37,290,658 and $1,380,363,
respectively, as collateral for portfolio securities loaned as follows:
<Table>
<Caption>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ----------------------------------------------------------------------------------------------------------
UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS
$ 2,800 Federal Home Loan Mortgage Corp. 07/15/06 5.500% $ 2,893,475
12,250 Federal Home Loan Mortgage Corp. 01/15/12 5.750 13,372,296
4,475 Federal Home Loan Mortgage Corp. 04/15/13 4.500 4,525,926
12,685 Federal National Mortgage Association 01/15/30 7.125 16,498,961
$ 37,290,658
- ----------------------------------------------------------------------------------------------------------
UBS PACE GLOBAL FIXED INCOME INVESTMENTS
$ 1,350 Federal National Mortgage Association 07/15/05 7.000% $ 1,380,363
- ----------------------------------------------------------------------------------------------------------
</Table>
170
<Page>
BANK LINE OF CREDIT
Each Portfolio, other than UBS PACE Money Market Investments, UBS PACE Large Co
Value Equity Investments and UBS PACE Large Co Growth Equity Investments,
participate with other funds managed, advised or sub-advised by UBS Global AM in
a $100 million committed credit facility with State Street Bank and Trust
Company ("Committed Credit Facility"), to be utilized for temporary financing
until the settlement of sales or purchases of portfolio securities, the
repurchase or redemption of shares of each Portfolio at the request of
shareholders and other temporary or emergency purposes. Under the Committed
Credit Facility arrangement, each Portfolio has agreed to pay a commitment fee,
pro rata, based on the relative asset size of the funds in the Committed Credit
Facility. Interest will be charged to each Portfolio at the overnight federal
funds rate in effect at the time of borrowings, plus 0.50%. For the six months
ended January 31, 2005, the following Portfolios had borrowings:
<Table>
<Caption>
AVERAGE DAILY WEIGHTED AVERAGE
AMOUNT OF BORROWING DAYS ANNUALIZED INTEREST
PORTFOLIO OUTSTANDING OUTSTANDING RATE EXPENSE
- ------------------------------------------------------------------------------------------------------------------------
UBS PACE Strategic Fixed Income Investments $ 11,948,000 1 1.875% $ 622
UBS PACE Global Fixed Income Investments 1,225,750 4 2.266 309
UBS PACE International Emerging Markets Equity
Investments 481,755 9 2.278 274
</Table>
UBS PACE Large Co Value Equity Investments and UBS PACE Large Co Growth Equity
Investments participate with other funds advised by UBS Global Asset Management
(Americas) Inc., an affiliate of UBS Global AM, in a $50 million committed
credit facility with JP Morgan Chase Bank ("JPMorgan Chase Bank Facility"), to
be utilized for temporary financing until the settlement of sales or purchases
of portfolio securities, the repurchase or redemption of shares of each
Portfolio at the request of shareholders and other temporary or emergency
purposes. Under the JPMorgan Chase Bank Facility arrangement, each Portfolio has
agreed to pay a commitment fee, pro rata, based on the relative asset size of
the funds in the JPMorgan Chase Bank Facility. Interest will be charged to each
Portfolio at the overnight federal funds rate in effect at the time of
borrowings, plus 0.50%. For the six months ended January 31, 2005, neither
Portfolio borrowed under the JPMorgan Chase Bank Facility.
PURCHASES AND SALES OF SECURITIES
For the six months ended January 31, 2005, aggregate purchases and sales of
portfolio securities, excluding short-term securities and U.S. Government
securities, were as follows:
<Table>
<Caption>
PORTFOLIO PURCHASES SALES
- --------------------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments $ 49,709,159 $ 32,050,066
UBS PACE Intermediate Fixed Income Investments 111,354,304 102,265,817
UBS PACE Strategic Fixed Income Investments 46,752,746 42,173,804
UBS PACE Municipal Fixed Income Investments 38,651,151 35,828,293
UBS PACE Global Fixed Income Investments 257,436,833 275,637,135
UBS PACE Large Co Value Equity Investments 429,506,320 419,254,599
UBS PACE Large Co Growth Equity Investments 316,089,189 272,000,924
UBS PACE Small/Medium Co Value Equity Investments 96,510,433 90,897,256
UBS PACE Small/Medium Co Growth Equity Investments 68,557,124 82,391,309
UBS PACE International Equity Investments 161,513,779 122,807,826
UBS PACE International Emerging Markets Equity Investments 150,037,089 135,080,765
</Table>
171
<Page>
For the six months ended January 31, 2005, aggregate purchases and sales of U.S.
Government securities, excluding short-term securities, were as follows:
<Table>
<Caption>
PORTFOLIO PURCHASES SALES
- ----------------------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments $ 1,897,307,607 $ 1,927,579,597
UBS PACE Intermediate Fixed Income Investments 424,758,930 423,484,411
UBS PACE Strategic Fixed Income Investments 158,460,019 180,863,785
UBS PACE Global Fixed Income Investments 212,687,624 210,480,327
UBS PACE Large Co Value Equity Investments 3,596,821 6,402,982
UBS PACE Large Co Growth Equity Investments 3,803,982 3,955,270
</Table>
FEDERAL TAX STATUS
Each of the Portfolios intends to distribute substantially all of its income and
to comply with the other requirements of the Internal Revenue Code applicable to
regulated investment companies. Accordingly, no provision for federal income
taxes is required. In addition, by distributing during each calendar year
substantially all of its net investment income, net realized capital gains and
certain other amounts, if any, each Portfolio intends not to be subject to a
federal excise tax.
The tax character of distributions paid during the fiscal year ended July 31,
2004 was as follows:
<Table>
<Caption>
TAX-EXEMPT ORDINARY
PORTFOLIO INCOME INCOME
- ------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments -- $ 729,903
UBS PACE Government Securities Fixed Income Investments -- 13,415,816
UBS PACE Intermediate Fixed Income Investments -- 9,711,291
UBS PACE Strategic Fixed Income Investments -- 9,721,397
UBS PACE Municipal Fixed Income Investments $ 7,920,246 --
UBS PACE Global Fixed Income Investments -- 28,850,438
UBS PACE Large Co Value Equity Investments -- 8,402,685
UBS PACE International Equity Investments -- 2,913,611
</Table>
The tax character of distributions paid and the components of accumulated
earnings (deficit) on a tax basis for the current fiscal year will be determined
after the Trust's fiscal year ending July 31, 2005.
At July 31, 2004, the following Portfolios had net capital loss carryforwards
available as reductions, to the extent provided in the regulations, of future
net realized capital gains. These losses expire as follows:
<Table>
<Caption>
UBS PACE
GOVERNMENT UBS PACE UBS PACE UBS PACE UBS PACE
UBS PACE SECURITIES INTERMEDIATE STRATEGIC MUNICIPAL GLOBAL UBS PACE
FISCAL MONEY FIXED FIXED FIXED FIXED FIXED LARGE CO
YEAR MARKET INCOME INCOME INCOME INCOME INCOME VALUE EQUITY
ENDING INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------
2006 -- -- $ 1,199,794 -- -- -- --
2007 $ 161 $ 413,310 19,336,984 $ 6,787,298 -- $ 1,887,459 --
2008 -- -- 3,620,638 -- $ 1,991,852 1,235,103 --
2009 -- -- -- -- -- 20,824 --
2010 -- -- -- -- -- -- $ 10,040,949
2011 -- -- 9,353,216 -- -- -- 73,462,150
2012 -- -- 7,849,781 -- -- -- --
Total $ 161 $ 413,310 $ 41,360,413 $ 6,787,298 $ 1,991,852 $ 3,143,386 $ 83,503,099
<Caption>
UBS PACE UBS PACE
UBS PACE SMALL/ INTERNATIONAL
LARGE CO MEDIUM CO UBS PACE EMERGING
FISCAL GROWTH GROWTH INTERNATIONAL MARKETS
YEAR EQUITY EQUITY EQUITY EQUITY
ENDING INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- -----------------------------------------------------------------------
2006 -- -- -- --
2007 -- -- -- --
2008 -- -- -- --
2009 -- -- -- $ 1,885,687
2010 $ 86,130,692 -- -- 20,071,109
2011 122,048,908 $ 3,246,028 $ 71,684,663 12,786,380
2012 -- -- -- --
Total $ 208,179,600 $ 3,246,028 $ 71,684,663 $ 34,743,176
</Table>
172
<Page>
Except for UBS PACE Money Market and UBS PACE Large Co Value Equity Investments,
the capital loss carryforwards for the other Portfolios include realized capital
losses from the acquisition of certain other funds. Utilization of these losses
may be subject to annual limitations imposed by the Internal Revenue Code.
During the fiscal year ended July 31, 2004, the following Portfolios utilized
capital loss carryforwards to offset realized gains:
<Table>
<Caption>
CAPITAL LOSS
CARRYFORWARDS
PORTFOLIO UTILIZED
- -------------------------------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments $ 2,426,717
UBS PACE Strategic Fixed Income Investments 4,622,114
UBS PACE Municipal Fixed Income Investments 796,492
UBS PACE Global Fixed Income Investments 2,468,765
UBS PACE Large Co Value Equity Investments 43,450,818
UBS PACE Large Co Growth Equity Investments 3,183,339
UBS PACE Small/Medium Co Value Equity Investments 7,525,612
UBS PACE Small/Medium Co Growth Equity Investments 25,202,998
UBS PACE International Equity Investments 62,264,662
UBS PACE International Emerging Markets Equity Investments 26,724,988
</Table>
In accordance with U.S. Treasury regulations, the following Portfolios have
elected to defer realized capital losses and foreign currency losses arising
after October 31, 2003. Such losses are treated for tax purposes as arising on
August 1, 2004:
<Table>
<Caption>
FOREIGN
CAPITAL CURRENCY
PORTFOLIO LOSSES LOSSES
- --------------------------------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income investments $ 16,410 --
UBS PACE Municipal Fixed Income Investments 646,134 --
UBS PACE International Emerging Markets Equity Investments -- $ 122,879
</Table>
For federal income tax purposes, which was substantially the same for book
purposes, the tax cost of investments and the components of net unrealized
appreciation (depreciation) of investments at January 31, 2005, were as follows:
<Table>
<Caption>
NET
TAX GROSS GROSS UNREALIZED
COST OF UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO INVESTMENTS APPRECIATION DEPRECIATION (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments $ 684,020,297 $ 3,604,157 $ (3,346,275) $ 257,882
UBS PACE Intermediate Fixed Income Investments 398,599,904 2,176,425 (2,638,497) (462,072)
UBS PACE Strategic Fixed Income Investments 431,242,877 9,407,468 (1,889,527) 7,517,941
UBS PACE Municipal Fixed Income Investments 255,102,131 7,549,151 (676,595) 6,872,556
UBS PACE Global Fixed Income Investments 416,584,676 27,965,049 (681,859) 27,283,190
UBS PACE Large Co Value Equity Investments 1,105,646,855 179,131,471 (12,527,783) 166,603,688
UBS PACE Large Co Growth Equity Investments 845,069,855 124,595,250 (15,218,247) 109,377,003
UBS PACE Small/Medium Co Value Equity Investments 381,962,732 89,558,692 (7,029,704) 82,528,988
UBS PACE Small/Medium Co Growth Equity Investments 450,886,307 96,100,796 (25,745,351) 70,355,445
UBS PACE International Equity Investments 661,781,443 102,119,316 (6,253,666) 95,865,650
UBS PACE International Emerging Markets Equity Investments 184,702,882 29,962,435 (1,600,320) 28,362,115
</Table>
173
<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 for each of the
Portfolios, except UBS PACE Money Market Investments, about which similar
information is provided in the Statement of Changes in Net Assets, were as
follows:
UBS PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 32,259 $ 427,550 5,181 $ 68,621 4,645 $ 61,559
Shares repurchased (1,236,104) (16,360,953) (89,056) (1,177,977) (271,546) (3,594,534)
Shares converted from
Class B to Class A 80,883 1,065,194 (80,883) (1,065,194) -- --
Dividends reinvested 87,325 1,156,499 2,761 36,580 20,789 275,501
Net increase (decrease) (1,035,637) $ (13,711,710) (161,997) $ (2,137,970) (246,112) $ (3,257,474)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 50,301 $ 666,619 3,857,516 $ 51,105,838
Shares repurchased (97,503) (1,290,844) (2,181,698) (28,893,409)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 9,599 127,113 243,228 3,222,432
Net increase (decrease) (37,603) $ (497,112) 1,919,046 $ 25,434,861
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 214,321 $ 2,783,306 43,163 $ 561,034 20,222 $ 262,210
Shares repurchased (3,375,810) (43,933,473) (385,377) (5,008,093) (809,118) (10,536,407)
Shares converted from
Class B to Class A 204,343 2,647,691 (204,380) (2,647,691) -- --
Dividends reinvested 249,997 3,251,766 12,526 162,942 61,902 805,703
Net increase (decrease) (2,707,149) $ (35,250,710) (534,068) $ (6,931,808) (726,994) $ (9,468,494)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 116,134 $ 1,518,631 7,208,512 $ 93,917,959
Shares repurchased (632,433) (8,247,685) (4,560,537) (59,328,321)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 30,098 391,148 515,440 6,707,049
Net increase (decrease) (486,201) $ (6,337,906) 3,163,415 $ 41,296,687
</Table>
UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 71,136 $ 826,545 7,868 $ 91,503 111,049 $ 1,290,039
Shares repurchased (973,493) (11,309,702) (54,810) (637,431) (181,861) (2,113,944)
Shares converted from
Class B to Class A 135,072 1,567,907 (134,903) (1,567,907) -- --
Dividends reinvested 77,380 899,472 2,402 27,975 6,469 75,311
Net increase (decrease) (689,905) $ (8,015,778) (179,443) $ (2,085,860) (64,343) $ (748,594)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 14,325 $ 166,434 5,027,201 $ 58,442,256
Shares repurchased (19,309) (224,399) (3,529,697) (41,058,543)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 1,717 19,967 372,819 4,335,362
Net increase (decrease) (3,267) $ (37,998) 1,870,323 $ 21,719,075
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 326,083 $ 3,785,583 32,993 $ 384,432 12,904 $ 148,644
Shares repurchased (2,745,758) (31,796,979) (254,723) (2,957,631) (264,580) (3,071,142)
Shares converted from
Class B to Class A 238,436 2,765,376 (238,093) (2,765,376) -- --
Dividends reinvested 157,702 1,827,102 8,233 95,580 12,624 146,464
Net increase (decrease) (2,023,537) $ (23,418,918) (451,590) $ (5,242,995) (239,052) $ (2,776,034)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 324,240 $ 3,760,443 10,283,978 $ 119,457,983
Shares repurchased (370,666) (4,303,028) (6,547,196) (75,962,833)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 3,701 42,923 564,279 6,538,011
Net increase (decrease) (42,725) $ (499,662) 4,301,061 $ 50,033,161
</Table>
174
<Page>
UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 92,129 $ 1,297,637 7,819 $ 108,956 2,568 $ 36,282
Shares repurchased (333,088) (4,687,711) (54,623) (767,383) (62,021) (873,592)
Shares converted from
Class B to Class A 79,116 1,110,123 (79,161) (1,110,123) -- --
Dividends reinvested 52,657 734,067 7,688 107,058 18,515 257,946
Net increase (decrease) (109,186) $ (1,545,884) (118,277) $ (1,661,492) (40,938) $ (579,364)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 22,169 $ 312,278 5,228,274 $ 73,526,239
Shares repurchased (13,277) (186,324) (2,659,029) (37,434,341)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 2,064 28,738 1,111,009 15,480,482
Net increase (decrease) 10,956 $ 154,692 3,680,254 $ 51,572,380
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 250,153 $ 3,472,171 26,038 $ 361,145 19,620 $ 275,269
Shares repurchased (804,613) (11,152,947) (200,944) (2,782,421) (192,129) (2,666,309)
Shares converted from
Class B to Class A 294,696 4,068,732 (294,861) (4,068,732) -- --
Dividends reinvested 35,658 494,486 8,148 112,888 12,425 172,338
Net increase (decrease) (224,106) $ (3,117,558) (461,619) $ (6,377,120) (160,084) $ (2,218,702)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 43,458 $ 599,468 10,178,644 $ 141,458,750
Shares repurchased (47,607) (657,279) (4,553,090) (63,150,111)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 1,118 15,503 615,855 8,541,607
Net increase (decrease) (3,031) $ (42,308) 6,241,409 $ 86,850,246
</Table>
UBS PACE MUNICIPAL FIXED INCOME INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 85,017 $ 1,079,680 6,045 $ 76,751 5,544 $ 70,651
Shares repurchased (850,973) (10,810,867) (47,285) (600,172) (186,275) (2,363,221)
Shares converted from
Class B to Class A 51,671 653,969 (51,671) (653,969) -- --
Dividends reinvested 107,505 1,365,904 1,906 24,221 19,244 244,543
Net increase (decrease) (606,780) $ (7,711,314) (91,005) $ (1,153,169) (161,487) $ (2,048,027)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 18 $ 231 1,647,114 $ 20,917,950
Shares repurchased (939) (11,922) (1,077,419) (13,682,431)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 161 2,046 123,635 1,570,924
Net increase (decrease) (760) $ (9,645) 693,330 $ 8,806,443
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 258,034 $ 3,280,679 5,443 $ 69,542 11,213 $ 143,309
Shares repurchased (2,380,680) (30,247,360) (113,691) (1,446,943) (346,112) (4,395,078)
Shares converted from
Class B to Class A 136,719 1,738,708 (136,695) (1,738,708) -- --
Dividends reinvested 231,375 2,941,823 5,465 69,523 41,539 528,193
Net increase (decrease) (1,754,552) $ (22,286,150) (239,478) $ (3,046,586) (293,360) $ (3,723,576)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold -- -- 3,960,576 $ 50,368,277
Shares repurchased (12) $ (149) (2,209,172) (28,037,950)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 481 6,116 201,282 2,557,127
Net increase (decrease) 469 $ 5,967 1,952,686 $ 24,887,454
</Table>
175
<Page>
UBS PACE GLOBAL FIXED INCOME INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 116,921 $ 1,441,257 2,234 $ 28,239 30,749 $ 385,180
Shares repurchased (1,131,243) (13,945,517) (11,476) (140,264) (63,847) (785,828)
Shares converted from
Class B to Class A 4,735 57,511 (4,727) (57,511) -- --
Dividends reinvested 441,103 5,474,891 3,115 38,759 24,767 307,552
Net increase (decrease) (568,484) $ (6,971,858) (10,854) $ (130,777) (8,331) $ (93,096)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 34,767 $ 429,384 3,780,129 $ 46,712,839
Shares repurchased (84,085) (1,024,083) (1,828,695) (22,546,445)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 38,090 472,323 890,608 11,054,977
Net increase (decrease) (11,228) $ (122,376) 2,842,042 $ 35,221,371
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 378,240 $ 4,603,422 15,598 $ 191,621 28,548 $ 343,869
Shares repurchased (2,536,833) (30,529,832) (32,260) (391,154) (144,693) (1,731,235)
Shares converted from
Class B to Class A 16,385 197,004 (16,363) (197,004) -- --
Dividends reinvested 797,885 9,590,023 5,948 71,632 44,353 533,206
Net increase (decrease) (1,344,323) $ (16,139,383) (27,077) $ (324,905) (71,792) $ (854,160)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 114,266 $ 1,388,150 7,330,270 $ 88,354,102
Shares repurchased (418,331) (5,037,372) (2,912,619 (35,068,043)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 73,541 883,319 1,092,678 13,124,286
Net increase (decrease) (230,524) $ (2,765,903) 5,510,329 $ 66,410,345
</Table>
UBS PACE LARGE CO VALUE EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 123,692 $ 2,278,521 8,626 $ 159,406 17,018 $ 309,200
Shares repurchased (2,003,842) (36,963,137) (145,986) (2,662,483) (263,479) (4,816,252)
Shares converted from
Class B to Class A 511,112 9,472,870 (513,159) (9,472,870) -- --
Dividends reinvested 157,941 3,021,411 -- -- 4,610 88,379
Net increase (decrease) (1,211,097) $ (22,190,335) (650,519) $ (11,975,94) (241,851) $ (4,418,673)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 57,887 $ 1,068,857 6,492,398 $ 120,496,124
Shares repurchased (162,466) (2,967,820) (3,458,912) (63,773,749)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 26,899 515,123 452,866 8,658,806
Net increase (decrease) (77,680) $ (1,383,840) 3,486,352 $ 65,381,181
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 388,900 $ 6,589,065 63,260 $ 1,058,650 63,032 $ 1,088,339
Shares repurchased (4,388,164) (74,345,787) (592,591) (9,976,459) (709,134) (11,988,675)
Shares converted from
Class B to Class A 1,952,730 33,362,222 (1,956,617) (33,362,222) -- --
Dividends reinvested 142,366 2,423,067 -- -- 1,315 22,414
Net increase (decrease) (1,904,168) $ (31,971,433) (2,485,948) $ (42,280,03) (644,787) $ (10,877,92)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 249,683 $ 4,321,575 13,356,727 $ 228,825,057
Shares repurchased (517,886) (8,812,034) (5,566,339) (95,217,935)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 24,599 418,676 306,705 5,217,047
Net increase (decrease) (243,604) $ (4,071,783) 8,097,093 $ 138,824,169
</Table>
176
<Page>
UBS PACE LARGE CO GROWTH EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 96,164 $ 1,355,353 3,232 $ 45,066 17,914 $ 247,994
Shares repurchased (1,000,490) (14,390,261) (68,126) (943,207) (110,378) (1,558,992)
Shares converted from
Class B to Class A 75,213 1,064,543 (77,511) (1,064,543) -- --
Net increase (decrease) (829,113) $ (11,970,365) (142,405) $ (1,962,684) (92,464) $ (1,310,998)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 55,565 $ 804,607 8,202,720 $ 119,642,104
Shares repurchased (165,039) (2,359,014) (4,079,844) (58,997,875)
Shares converted from
Class B to Class A -- -- -- --
Net increase (decrease) (109,474) $ (1,554,407) 4,122,876 $ 60,644,229
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 571,982 $ 7,807,266 26,821 $ 358,961 49,819 $ 675,348
Shares repurchased (2,028,931) (28,019,646) (189,257) (2,555,020) (206,158) (2,800,907)
Shares converted from
Class B to Class A 210,849 2,936,551 (215,992) (2,936,551) -- --
Net increase (decrease) (1,246,100) $ (17,275,829) (378,428) $ (5,132,610) (156,339) $ (2,125,559)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 250,461 $ 3,515,893 16,302,156 $ 227,910,616
Shares repurchased (443,489) (6,181,709) (6,525,216) (91,052,940)
Shares converted from
Class B to Class A -- -- -- --
Net increase (decrease) (193,028) $ (2,665,816) 9,776,940 $ 136,857,676
</Table>
UBS PACE SMALL/MEDIUM CO VALUE EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 83,000 $ 1,723,086 24,599 $ 474,474 26,526 $ 537,031
Shares repurchased (267,199) (5,466,292) (41,645) (805,396) (62,493) (1,227,987)
Shares converted from
Class B to Class A 61,291 1,251,130 (63,041) (1,251,130) -- --
Dividends reinvested 244,381 4,929,159 27,036 527,738 69,868 1,365,226
Net increase (decrease) 121,473 $ 2,437,083 (53,051) $ (1,054,314) 33,901 $ 674,270
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 49,029 $ 1,009,373 2,170,926 $ 44,626,113
Shares repurchased (48,312) (981,126) (1,496,008) (30,679,652)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 19,175 390,589 1,425,541 29,009,763
Net increase (decrease) 19,892 $ 418,836 2,100,459 $ 42,956,224
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 298,611 $ 5,536,988 48,372 $ 891,848 63,380 $ 1,184,881
Shares repurchased (689,230) (12,971,514) (101,621) (1,871,787) (143,185) (2,682,057)
Shares converted from
Class B to Class A 263,311 4,952,284 (269,011) (4,952,284) -- --
Net increase (decrease) (127,308) $ (2,482,242) (322,260) $ (5,932,223) (79,805) $ (1,497,176)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 126,052 $ 2,387,877 4,404,602 $ 84,454,603
Shares repurchased (45,756) (877,289) (2,692,559) (51,520,902)
Shares converted from
Class B to Class A -- -- -- --
Net increase (decrease) 80,296 $ 1,510,588 1,712,043 $ 32,933,701
</Table>
177
<Page>
UBS PACE SMALL/MEDIUM CO GROWTH EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 64,081 $ 977,886 15,051 $ 229,066 10,526 $ 156,966
Shares repurchased (521,811) (7,961,818) (27,628) (409,853) (82,037) (1,216,082)
Shares converted from
Class B to Class A 29,448 448,624 (30,373) (448,624) -- --
Dividends reinvested 14,301 232,681 593 9,331 2,291 36,155
Net increase (decrease) (413,981) $ (6,302,627) (42,357) $ (620,080) (69,220) $ (1,022,961)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 72,640 $ 1,140,295 2,795,645 $ 43,435,496
Shares repurchased (56,536) (851,765) (1,937,624) (29,713,627)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 824 13,539 70,517 1,159,297
Net increase (decrease) 16,928 $ 302,069 928,538 $ 14,881,166
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 290,928 $ 4,230,684 45,924 $ 642,184 33,675 $ 485,273
Shares repurchased (1,015,222) (14,820,486) (96,807) (1,395,510) (124,824) (1,807,998)
Shares converted from
Class B to Class A 154,000 2,271,438 (157,827) (2,271,438) -- --
Net increase (decrease) (570,294) $ (8,318,364) (208,710) $ (3,024,764) (91,149) $ (1,322,725)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 237,341 $ 3,478,438 5,577,141 $ 82,790,309
Shares repurchased (131,968) (1,952,864) (3,570,845) (52,985,122)
Shares converted from
Class B to Class A -- -- -- --
Net increase (decrease) 105,373 $ 1,525,574 2,006,296 $ 29,805,187
</Table>
UBS PACE INTERNATIONAL EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 81,138 $ 1,133,741 5,406 $ 75,628 35,737 $ 497,053
Shares repurchased (659,126) (9,298,653) (8,217) (114,377) (56,433) (777,098)
Shares converted from
Class B to Class A 4,571 64,081 (4,666) (64,081) -- --
Dividends reinvested 25,176 372,605 -- -- -- --
Net increase (decrease) (548,241) $ (7,728,226) (7,477) $ (102,830) (20,696) $ (280,045)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 170,106 $ 2,400,486 6,846,941 $ 96,766,196
Shares repurchased (323,476) (4,521,956) (3,308,958) (46,311,189)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 24,728 365,478 250,791 3,704,175
Net increase (decrease) (128,642) $ (1,755,992) 3,788,774 $ 54,159,182
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 877,573 $ 9,755,161 12,585 $ 155,696 13,600 $ 169,366
Shares repurchased (2,544,526) (29,697,697) (16,783) (204,688) (161,170) (2,005,644)
Shares converted from
Class B to Class A 39,054 481,325 (39,680) (481,325) -- --
Dividends reinvested 28,230 349,771 -- -- -- --
Net increase (decrease) (1,599,669) $ (19,111,440) (43,878) $ (530,317) (147,570) $ (1,836,278)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 875,060 $ 10,624,664 13,608,569 $ 170,625,071
Shares repurchased (1,117,865) (13,587,309) (5,069,598) (63,499,372)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 23,808 294,738 177,836 2,199,826
Net increase (decrease) (218,997) $ (2,667,907) 8,716,807 $ 109,325,525
</Table>
178
<Page>
UBS PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 49,458 $ 594,450 854 $ 10,662 4,631 $ 53,171
Shares repurchased (153,410) (1,828,923) (3,913) (46,536) (37,017) (434,850)
Shares converted from
Class B to Class A 13,561 160,937 (13,993) (160,937) -- --
Dividends reinvested 54 706 -- -- -- --
Net increase (decrease) (90,337) $ (1,072,830) (17,052) $ (196,811) (32,386) $ (381,679)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 208,614 $ 2,525,169 2,198,480 $ 27,203,471
Shares repurchased (109,411) (1,305,748) (1,105,608) (13,512,886)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 1,728 22,725 10,835 142,264
Net increase (decrease) 100,931 $ 1,242,146 1,103,707 $ 13,832,849
</Table>
FOR THE YEAR ENDED JULY 31, 2004:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------ ------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Shares sold 345,342 $ 3,657,679 9,871 $ 102,508 114,284 $ 1,167,742
Shares repurchased (476,663) (5,152,768) (19,372) (205,253) (178,416) (1,947,607)
Shares converted from
Class B to Class A 159.958 1,747,179 (163,878) (1,747,179) -- --
Net increase (decrease) 28,637 $ 252,090 (173,379) $ (1,849,924) (64,132) $ (779,865)
<Caption>
CLASS Y CLASS P
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
Shares sold 774,700 $ 8,574,767 4,107,154 $ 45,303,853
Shares repurchased (458,717) (5,041,071) (1,820,762) (20,042,862)
Shares converted from
Class B to Class A -- -- -- --
Net increase (decrease) 315,983 $ 3,533,696 2,286,392 $ 25,260,991
</Table>
179
<Page>
(This page intentionally left blank)
180
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
UBS PACE MONEY MARKET INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 ------------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.006 0.005 0.009 0.021 0.053 0.054
Dividends from net investment
income (0.006) (0.005) (0.009) (0.021) (0.053) (0.054)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.65% 0.51% 0.96% 2.10% 5.44% 5.53%
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 182,847 $ 166,067 $ 123,915 $ 112,001 $ 76,657 $ 65,521
Expenses to average net assets, net
of fee waivers and expense
reimbursements by manager 0.60%* 0.60% 0.57% 0.50% 0.50% 0.50%
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 0.92%* 0.96% 1.13% 1.43% 1.00% 0.95%
Net investment income to average
net assets, net of fee waivers
and expense reimbursements by
manager 1.29%* 0.51% 0.94% 2.03% 5.26% 5.46%
Net investment income to average
net assets, before fee waivers
and expense reimbursements
by manager 0.97%* 0.15% 0.38% 1.10% 4.76% 5.01%
- --------------------------------------------------------------------------------------------------------------------------
</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 the 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.
181
<Page>
UBS PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
---------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------------- JULY 31,
(UNAUDITED) 2004+ 2003 2002 2001(a)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.05 $ 12.81 $ 13.08 $ 12.84 $ 12.65
Net investment income 0.14@ 0.26 0.33 0.64 0.39
Net realized and unrealized gains
(losses) from investment activities 0.24 0.34 (0.18) 0.29 0.18
Net increase from operations 0.38 0.60 0.15 0.93 0.57
Dividends from net investment income (0.15) (0.36) (0.42) (0.64) (0.38)
Distributions from net realized
gains from investment activities -- -- -- (0.05) --
Total dividends and distributions (0.15) (0.36) (0.42) (0.69) (0.38)
NET ASSET VALUE, END OF PERIOD $ 13.28 $ 13.05 $ 12.81 $ 13.08 $ 12.84
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.91% 4.75% 1.13% 7.47% 4.61%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 148,262 $ 159,227 $ 190,933 $ 213,835 $ 224,837
Expenses to average net assets, net
of fee waivers and expense
reimbursements by manager 1.08%* 1.08% 1.04% 0.96% 0.98%^*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 1.18%* 1.20% 1.20% 1.15% 1.14%^*
Net investment income to average net
assets, net of fee waivers and
expense reimbursements by manager 2.06%* 2.08% 2.57% 4.92% 6.09%*
Net investment income to average net
assets, before fee waivers and
expense reimbursements by manager 1.96%* 1.96% 2.41% 4.73% 5.93%*
Portfolio turnover 388% 805% 741% 369% 631%
- -------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
+ As of August 1, 2003, the Portfolio has adopted the method of accounting
for interim payments on swap contracts in accordance with Financial
Accounting Standards Board Statement No. 133. These interim payments are
reflected within net realized and unrealized gain (loss) from investment
activities, however, prior to August 1, 2003, these interim payments were
reflected within interest income (or as an offset to interest income) on
the Statement of Operations. The effect of this change for the year ended
July 31, 2004 was to decrease net investment income per share by $0.01 on
all share classes and increase net realized and unrealized gain (loss)
from investment activities per share by $0.01 on all share classes, and
decrease the ratio of net investment income by 0.05%, 0.04% and 0.05% on
Class A, Class B and Class C, respectively.
^ Includes 0.01% of interest expense related to reverse repurchase
agreements during the period ended July 31, 2001.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period January 31, 2001 (reissuance of shares) through July 31,
2001.
(b) For the period December 18, 2000 (commencement of issuance) through July
31, 2001.
(c) For the period December 4, 2000 (commencement of issuance) through July
31, 2001.
182
<Page>
<Table>
<Caption>
CLASS B
---------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------------- JULY 31,
(UNAUDITED) 2004+ 2003 2002 2001(b)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.05 $ 12.81 $ 13.08 $ 12.83 $ 12.47
Net investment income 0.09@ 0.14 0.23 0.53 0.47
Net realized and unrealized gains
(losses) from investment activities 0.24 0.36 (0.18) 0.31 0.37
Net increase from operations 0.33 0.50 0.05 0.84 0.84
Dividends from net investment income (0.10) (0.26) (0.32) (0.54) (0.48)
Distributions from net realized
gains from investment activities -- -- -- (0.05) --
Total dividends and distributions (0.10) (0.26) (0.32) (0.59) (0.48)
NET ASSET VALUE, END OF PERIOD $ 13.28 $ 13.05 $ 12.81 $ 13.08 $ 12.83
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.51% 3.94% 0.34% 6.63% 6.96%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 6,368 $ 8,373 $ 15,056 $ 16,966 $ 13,175
Expenses to average net assets, net
of fee waivers and expense
reimbursements by manager 1.84%* 1.84% 1.82% 1.76% 1.75%^*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 1.94%* 1.95% 1.94% 1.90% 1.90%^*
Net investment income to average net
assets, net of fee waivers and
expense reimbursements by manager 1.29%* 1.33% 1.79% 4.12% 5.31%*
Net investment income to average net
assets, before fee waivers and
expense reimbursements by manager 1.19%* 1.22% 1.67% 3.99% 5.16%*
Portfolio turnover 388% 805% 741% 369% 631%
- -------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
---------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------------- JULY 31,
(UNAUDITED) 2004+ 2003 2002 2001(c)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.06 $ 12.82 $ 13.09 $ 12.84 $ 12.33
Net investment income 0.10@ 0.19 0.26 0.57 0.49
Net realized and unrealized gains
(losses) from investment activities 0.24 0.34 (0.18) 0.30 0.51
Net increase from operations 0.34 0.53 0.08 0.87 1.00
Dividends from net investment income (0.11) (0.29) (0.35) (0.57) (0.49)
Distributions from net realized
gains from investment activities -- -- -- (0.05) --
Total dividends and distributions (0.11) (0.29) (0.35) (0.62) (0.49)
NET ASSET VALUE, END OF PERIOD $ 13.29 $ 13.06 $ 12.82 $ 13.09 $ 12.84
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.63% 4.18% 0.59% 6.99% 8.26%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 39,169 $ 41,707 $ 50,245 $ 56,849 $ 57,745
Expenses to average net assets, net
of fee waivers and expense
reimbursements by manager 1.62%* 1.62% 1.57% 1.48% 1.49%^*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 1.76%* 1.78% 1.77% 1.73% 1.70%^*
Net investment income to average net
assets, net of fee waivers and
expense reimbursements by manager 1.52%* 1.54% 2.04% 4.40% 5.59%*
Net investment income to average net
assets, before fee waivers and
expense reimbursements by manager 1.38%* 1.38% 1.84% 4.15% 5.38%*
Portfolio turnover 388% 805% 741% 369% 631%
- -------------------------------------------------------------------------------------------------------------------------
</Table>
183
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
---------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------------- JULY 31,
(UNAUDITED) 2004+ 2003 2002 2001(a)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.05 $ 12.80 $ 13.07 $ 12.84 $ 12.65
Net investment income 0.16@ 0.29 0.37 0.68 0.39
Net realized and unrealized gains
(losses) from investment activities 0.24 0.36 (0.18) 0.29 0.20
Net increase from operations 0.40 0.65 0.19 0.97 0.59
Dividends from net investment income (0.17) (0.40) (0.46) (0.69) (0.40)
Distributions from net realized gains
from investment activities -- -- -- (0.05) --
Total dividends and distributions (0.17) (0.40) (0.46) (0.74) (0.40)
NET ASSET VALUE, END OF PERIOD $ 13.28 $ 13.05 $ 12.80 $ 13.07 $ 12.84
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 3.04% 5.12% 1.46% 7.77% 4.77%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 10,128 $ 10,441 $ 16,466 $ 19,250 $ 133,649
Expenses to average net assets, net
of fee waivers and expense
reimbursements by manager 0.76%* 0.76% 0.72% 0.64% 0.66%^*
Expenses to average net assets, before
fee waivers and expense
reimbursements by manager 0.85%* 0.88% 0.88% 0.80% 0.84%^*
Net investment income to average net
assets, net of fee waivers and
expense reimbursements by manager 2.39%* 2.41% 2.89% 5.32% 6.50%*
Net investment income to average net
assets, before fee waivers and
expense reimbursements by manager 2.30%* 2.30% 2.73% 5.16% 6.32%*
Portfolio turnover 388% 805% 741% 369% 631%
- -------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
+ As of August 1, 2003, the Portfolio has adopted the method of accounting
for interim payments on swap contracts in accordance with Financial
Accounting Standards Board Statement No. 133. These interim payments are
reflected within net realized and unrealized gain (loss) from investment
activities, however, prior to August 1, 2003, these interim payments were
reflected within interest income (or as an offset to interest income) on
the Statement of Operations. The effect of this change for the year ended
July 31, 2004 was to decrease net investment income per share by $0.01 on
all share classes and increase net realized and unrealized gain (loss)
from investment activities per share by $0.01 on all share classes, and
decrease the ratio of net investment income by 0.04% and 0.05% on Class Y
and Class P, respectively.
^ Includes 0.01% of interest expense related to reverse repurchase
agreements during the period ended July 31, 2001.
^^ Includes 0.03% and 0.02% of interest expense related to reverse
repurchase agreements during the years ended July 31, 2001 and July 31,
2000, respectively.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable program fees; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period February 2, 2001 (commencement of issuance) through July
31, 2001.
184
<Page>
<Table>
<Caption>
CLASS P
-----------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -----------------------------------------------------------------------
(UNAUDITED) 2004+ 2003 2002 2001 2000
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.06 $ 12.82 $ 13.09 $ 12.84 $ 12.09 $ 12.10
Net investment income 0.15@ 0.30 0.36 0.67 0.84 0.73
Net realized and unrealized gains
(losses) from investment activities 0.24 0.33 (0.18) 0.31 0.82 0.01
Net increase from operations 0.39 0.63 0.18 0.98 1.66 0.74
Dividends from net investment income (0.16) (0.39) (0.45) (0.68) (0.91) (0.75)
Distributions from net realized gains
from investment activities -- -- -- (0.05) -- --
Total dividends and distributions (0.16) (0.39) (0.45) (0.73) (0.91) (0.75)
NET ASSET VALUE, END OF PERIOD $ 13.29 $ 13.06 $ 12.82 $ 13.09 $ 12.84 $ 12.09
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 3.02% 4.97% 1.35% 7.84% 14.21% 6.36%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 282,654 $ 252,716 $ 207,466 $ 201,378 $ 195,546 $ 198,918
Expenses to average net assets, net
of fee waivers and expense
reimbursements by manager 0.87%* 0.87% 0.83% 0.70% 0.78%^^ 0.87%^^
Expenses to average net assets, before
fee waivers and expense
reimbursements by manager 0.97%* 1.00% 0.98% 0.93% 0.87%^^ 0.91%^^
Net investment income to average net
assets, net of fee waivers and
expense reimbursements by manager 2.29%* 2.27% 2.76% 5.18% 6.69% 6.12%
Net investment income to average net
assets, before fee waivers and
expense reimbursements by manager 2.19%* 2.14% 2.61% 4.95% 6.60% 6.08%
Portfolio turnover 388% 805% 741% 369% 631% 585%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
185
<Page>
UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
---------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002~ 2001(a)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.51 $ 11.46 $ 11.13 $ 12.32 $ 12.16
Net investment income 0.17@ 0.29 0.33 0.75 0.35
Net realized and unrealized gains
(losses) from investment activities 0.07 0.06 0.34 (1.19) 0.16
Net increase (decrease) from operations 0.24 0.35 0.67 (0.44) 0.51
Dividends from net investment income (0.17) (0.30) (0.34) (0.75) (0.35)
NET ASSET VALUE, END OF PERIOD $ 11.58 $ 11.51 $ 11.46 $ 11.13 $ 12.32
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.10% 3.08% 6.05% (3.90)% 4.24%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 83,262 $ 90,732 $ 113,500 $ 129,520 $ 157,341
Expenses to average net assets, net of
fee waivers and expense
reimbursements by manager 1.07%* 1.07% 1.03% 0.96% 0.97%*
Expenses to average net assets, before
fee waivers and expense
reimbursements by manager 1.09%* 1.13% 1.14% 1.10% 1.03%*
Net investment income to average net
assets, net of fee waivers and
expense reimbursements by manager 2.88%* 2.52% 2.86% 6.14% 5.77%*
Net investment income to average net
assets, before fee waivers and
expense reimbursements by manager 2.86%* 2.46% 2.75% 6.00% 5.71%*
Portfolio turnover 147% 299% 294% 121% 82%
- -------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
~ Investment advisory functions for this Portfolio were transferred from
Pacific Income Advisors, Inc. to Metropolitan West Asset Management, LLC
on October 10, 2000. BlackRock Financial Management, Inc. assumed
investment advisory functions on July 29, 2002.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period January 31, 2001 (reissuance of shares) through July 31,
2001.
(b) For the period December 14, 2000 (commencement of issuance) through July
31, 2001.
(c) For the period December 1, 2000 (commencement of issuance) through July
31, 2001.
186
<Page>
<Table>
<Caption>
CLASS B
---------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002~ 2001(b)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.53 $ 11.47 $ 11.15 $ 12.33 $ 12.03
Net investment income 0.12@ 0.21 0.24 0.65 0.41
Net realized and unrealized gains
(losses) from investment activities 0.08 0.06 0.33 (1.18) 0.30
Net increase (decrease) from operations 0.20 0.27 0.57 (0.53) 0.71
Dividends from net investment income (0.13) (0.21) (0.25) (0.65) (0.41)
NET ASSET VALUE, END OF PERIOD $ 11.60 $ 11.53 $ 11.47 $ 11.15 $ 12.33
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.70% 2.37% 5.13% (4.57)% 6.04%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 2,658 $ 4,712 $ 9,871 $ 11,626 $ 15,168
Expenses to average net assets, net of
fee waivers and expense
reimbursements by manager 1.81%* 1.81% 1.79% 1.74% 1.74%*
Expenses to average net assets, before
fee waivers and expense
reimbursements by manager 1.84%* 1.85% 1.87% 1.82% 1.78%*
Net investment income to average net
assets, net of fee waivers and
expense reimbursements by manager 2.12%* 1.75% 2.10% 5.35% 4.99%*
Net investment income to average net
assets, before fee waivers and
expense reimbursements by manager 2.09%* 1.71% 2.02% 5.27% 4.95%*
Portfolio turnover 147% 299% 294% 121% 82%
- -------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
---------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002~ 2001(c)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.53 $ 11.48 $ 11.15 $ 12.33 $ 11.92
Net investment income 0.14@ 0.24 0.27 0.69 0.44
Net realized and unrealized gains
(losses) from investment activities 0.07 0.05 0.34 (1.19) 0.41
Net increase (decrease) from operations 0.21 0.29 0.61 (0.50) 0.85
Dividends from net investment income (0.14) (0.24) (0.28) (0.68) (0.44)
NET ASSET VALUE, END OF PERIOD $ 11.60 $ 11.53 $ 11.48 $ 11.15 $ 12.33
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.84% 2.56% 5.49% (4.31)% 7.20%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 8,892 $ 9,583 $ 12,281 $ 15,508 $ 19,529
Expenses to average net assets, net of
fee waivers and expense
reimbursements by manager 1.56%* 1.56% 1.53% 1.47% 1.48%*
Expenses to average net assets, before
fee waivers and expense
reimbursements by manager 1.58%* 1.61% 1.63% 1.58% 1.54%*
Net investment income to average net
assets, net of fee waivers and
expense reimbursements by manager 2.39%* 2.03% 2.37% 5.63% 5.26%*
Net investment income to average net
assets, before fee waivers and
expense reimbursements by manager 2.37%* 1.98% 2.27% 5.52% 5.20%*
Portfolio turnover 147% 299% 294% 121% 82%
- -------------------------------------------------------------------------------------------------------------------------
</Table>
187
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 -------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002~ 2001(a)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.52 $ 11.47 $ 11.14 $ 12.33 $ 12.16
Net investment income 0.19@ 0.34 0.36 0.78 0.36
Net realized and unrealized gains (losses) from
investment activities 0.07 0.04 0.34 (1.19) 0.17
Net increase (decrease) from operations 0.26 0.38 0.70 (0.41) 0.53
Dividends from net investment income (0.19) (0.33) (0.37) (0.78) (0.36)
Distributions from net realized gains from investment
activities -- -- -- -- --
Total dividends and distributions (0.19) (0.33) (0.37) (0.78) (0.36)
NET ASSET VALUE, END OF PERIOD $ 11.59 $ 11.52 $ 11.47 $ 11.14 $ 12.33
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.24% 3.34% 6.32% (3.64)% 4.45%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 1,215 $ 1,246 $ 1,730 $ 2,589 $ 3,613
Expenses to average net assets, net of fee waivers and
expense reimbursements by manager 0.81%* 0.81% 0.77% 0.71% 0.71%*
Expenses to average net assets, before fee waivers and
expense reimbursements by manager 0.85%* 0.87% 0.89% 0.84% 0.79%*
Net investment income to average net assets, net of fee
waivers and expense reimbursements by manager 3.14%* 2.79% 3.15% 6.39% 5.96%*
Net investment income to average net assets, before fee
waivers and expense reimbursements by manager 3.10%* 2.73% 3.03% 6.26% 5.88%*
Portfolio turnover 147% 299% 294% 121% 82%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
^ The Portfolio made a distribution of less than $0.005 per share.
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
~ Investment advisory functions for this Portfolio were transferred from
Pacific Income Advisors, Inc. to Metropolitan West Asset Management, LLC
on October 10, 2000. BlackRock Financial Management, Inc. assumed
investment advisory functions on July 29, 2002.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable program fees; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period February 2, 2001 (commencement of issuance) through July
31, 2001.
188
<Page>
<Table>
<Caption>
CLASS P
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -------------------------------------------------------------
(UNAUDITED) 2004 2003 2002~ 2001~ 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.52 $ 11.47 $ 11.14 $ 12.33 $ 11.82 $ 11.98
Net investment income 0.18@ 0.33 0.36 0.77 0.74 0.70
Net realized and unrealized gains (losses) from
investment activities 0.08 0.05 0.34 (1.18) 0.56 (0.16)
Net increase (decrease) from operations 0.26 0.38 0.70 (0.41) 1.30 0.54
Dividends from net investment income (0.19) (0.33) (0.37) (0.78) (0.79) (0.70)
Distributions from net realized gains from
investment activities -- -- -- -- -- (0.00)^
Total dividends and distributions (0.19) (0.33) (0.37) (0.78) (0.79) (0.70)
NET ASSET VALUE, END OF PERIOD $ 11.59 $ 11.52 $ 11.47 $ 11.14 $ 12.33 $ 11.82
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.24% 3.36% 6.34% (3.64)% 11.39% 4.74%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 284,551 $ 261,390 $ 210,860 $ 161,702 $ 127,718 $ 134,102
Expenses to average net assets, net of fee
waivers and expense reimbursements by manager 0.80%* 0.80% 0.77% 0.70% 0.75% 0.78%
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 0.81%* 0.84% 0.87% 0.82% 0.77% 0.79%
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
manager 3.15%* 2.81% 3.10% 6.45% 6.07% 5.95%
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 3.14%* 2.77% 3.00% 6.33% 6.05% 5.94%
Portfolio turnover 147% 299% 294% 121% 82% 88%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
189
<Page>
UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
-----------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 -------------------------------------- JULY 31,
(UNAUDITED) 2004** 2003 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.88 $ 13.44 $ 13.16 $ 12.91 $ 12.53
Net investment income 0.22@ 0.36@ 0.57@ 0.58@ 0.47
Net realized and unrealized gains from investment
activities 0.35 0.44 0.25 0.25 0.38
Net increase from operations 0.57 0.80 0.82 0.83 0.85
Dividends from net investment income (0.23) (0.36) (0.54) (0.58) (0.47)
Distributions from net realized gains from investment
activities (0.33) -- -- -- --
Total dividends and distributions (0.56) (0.36) (0.54) (0.58) (0.47)
NET ASSET VALUE, END OF PERIOD $ 13.89 $ 13.88 $ 13.44 $ 13.16 $ 12.91
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 4.15% 6.00% 6.22% 6.55% 6.93%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 23,090 $ 24,587 $ 26,814 $ 26,242 $ 29,899
Expenses to average net assets, net of fee waivers and
expense reimbursements by and recoupments to manager 1.23%*+ 1.21% 1.21% 1.14% 1.14%^*
Expenses to average net assets, before fee waivers and
expense reimbursements by manager 1.23%* 1.25% 1.25% 1.27% 1.21%^*
Net investment income to average net assets, net of fee
waivers and expense reimbursements by and recoupments
to manager 3.09%*+ 2.56% 4.13% 4.41% 5.52%*
Net investment income to average net assets, before fee
waivers and expense reimbursements by manager 3.09%* 2.52% 4.09% 4.28% 5.45%*
Portfolio turnover 56% 185% 357% 375% 519%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized
@ Calculated using the average month-end shares outstanding for the period.
+ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
^ Includes 0.03% of interest expense related to reverse repurchase
agreements during the period ended July 31, 2001.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
** As of August 1, 2003, the Portfolio has adopted the method of accounting
for interim payments on swap contracts in accordance with Financial
Accounting Standards Board Statement No. 133. These interim payments are
reflected within net realized and unrealized gain (loss) from investment
activities, however, prior to August 1, 2003, these interim payments were
reflected within interest income (or as an offset to interest income) on
the Statement of Operations. The effect of this change for the year ended
July 31, 2004 was to increase net investment income per share by $0.02 on
all share classes and decrease net realized and unrealized gain (loss)
from investment activities per share by $0.02 on all share classes, and
increase the ratio of net investment income by 0.16%, 0.15%, and 0.16% on
Class A, Class B and Class C, respectively.
(a) For the period December 11, 2000 (commencement of issuance) through July
31, 2001.
(b) For the period January 30, 2001 (reissuance of shares) through July 31,
2001.
(c) For the period December 1, 2000 (commencement of issuance) through July
31, 2001.
190
<Page>
<Table>
<Caption>
CLASS B
-----------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 -------------------------------------- JULY 31,
(UNAUDITED) 2004** 2003 2002 2001(b)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.88 $ 13.44 $ 13.15 $ 12.91 $ 12.66
Net investment income 0.17@ 0.25@ 0.48@ 0.48@ 0.30
Net realized and unrealized gains from investment
activities 0.35 0.45 0.25 0.24 0.25
Net increase from operations 0.52 0.70 0.73 0.72 0.55
Dividends from net investment income (0.18) (0.26) (0.44) (0.48) (0.30)
Distributions from net realized gains from investment
activities (0.33) -- -- -- --
Total dividends and distributions (0.51) (0.26) (0.44) (0.48) (0.30)
NET ASSET VALUE, END OF PERIOD $ 13.89 $ 13.88 $ 13.44 $ 13.15 $ 12.91
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 3.78% 5.22% 5.52% 5.66% 4.38%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 3,552 $ 5,190 $ 11,227 $ 16,337 $ 17,078
Expenses to average net assets, net of fee waivers and
expense reimbursements by and recoupments to manager 1.94%* 1.94% 1.93% 1.90% 1.91%^*
Expenses to average net assets, before fee waivers and
expense reimbursements by manager 1.97%* 1.95% 1.95% 1.93% 1.96%^*
Net investment income to average net assets, net of fee
waivers and expense reimbursements by and recoupments
to manager 2.38%* 1.83% 3.49% 3.64% 4.73%*
Net investment income to average net assets, before fee
waivers and expense reimbursements by manager 2.35%* 1.82% 3.47% 3.61% 4.68%*
Portfolio turnover 56% 185% 357% 375% 519%
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
-----------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 -------------------------------------- JULY 31,
(UNAUDITED) 2004** 2003 2002 2001(c)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.88 $ 13.44 $ 13.16 $ 12.91 $ 12.43
Net investment income 0.18@ 0.29@ 0.50@ 0.51@ 0.43
Net realized and unrealized gains from investment
activities 0.36 0.44 0.25 0.25 0.48
Net increase from operations 0.54 0.73 0.75 0.76 0.91
Dividends from net investment income (0.20) (0.29) (0.47) (0.51) (0.43)
Distributions from net realized gains from investment
activities (0.33) -- -- -- --
Total dividends and distributions (0.53) (0.29) (0.47) (0.51) (0.43)
NET ASSET VALUE, END OF PERIOD $ 13.89 $ 13.88 $ 13.44 $ 13.16 $ 12.91
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 3.90% 5.49% 5.69% 6.01% 7.43%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 8,399 $ 8,960 $ 10,827 $ 13,325 $ 16,743
Expenses to average net assets, net of fee waivers and
expense reimbursements by and recoupments to manager 1.72%*+ 1.70% 1.70% 1.65% 1.65%^*
Expenses to average net assets, before fee waivers and
expense reimbursements by manager 1.72%* 1.71% 1.72% 1.70% 1.71%^*
Net investment income to average net assets, net of fee
waivers and expense reimbursements by and recoupments
to manager 2.60%*+ 2.08% 3.67% 3.90% 5.00%*
Net investment income to average net assets, before fee
waivers and expense reimbursements by manager 2.60%* 2.07% 3.65% 3.85% 4.94%*
Portfolio turnover 56% 185% 357% 375% 519%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
191
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004** 2003 2002 2001(a)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.87 $ 13.43 $ 13.16 $ 12.91 $ 12.77
Net investment income 0.25@ 0.40@ 0.61@ 0.61@ 0.36
Net realized and unrealized gains (losses) from
investment activities 0.35 0.44 0.23 0.25 0.14
Net increase from operations 0.60 0.84 0.84 0.86 0.50
Dividends from net investment income (0.26) (0.40) (0.57) (0.61) (0.36)
Distributions from net realized gains from
investment activities (0.33) -- -- -- --
Total dividends and distributions (0.59) (0.40) (0.57) (0.61) (0.36)
NET ASSET VALUE, END OF PERIOD $ 13.88 $ 13.87 $ 13.43 $ 13.16 $ 12.91
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 4.32% 6.27% 6.39% 6.80% 3.98%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 680 $ 527 $ 551 $ 342 $ 613
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 0.91%*+ 0.96%+ 0.98% 0.89% 0.88%^^*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 0.91%* 0.96% 0.98% 0.99% 0.97%^^*
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
and recoupments to manager 3.42%*+ 2.81%+ 4.19% 4.65% 5.74%*
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 3.42%* 2.81% 4.19% 4.55% 5.65%*
Portfolio turnover 56% 185% 357% 375% 519%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
+ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
^ Includes 0.06% of interest expense related to reverse repurchase
agreements during the year ended July 31, 2001.
^^ Includes 0.03% of interest expense related to reverse repurchase
agreements during the period ended July 31, 2001.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable program fees; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
** As of August 1, 2004, the Portfolio has adopted the method of accounting
for interim payments on swap contracts in accordance with Financial
Accounting Standards Board Statement No. 133. These interim payments are
reflected within net realized and unrealized gain (loss) from investment
activities, however, prior to August 1, 2003, these interim payments were
reflected within interest income (or as an offset to interest income) on
the Statement of Operations. The effect of this change for the year ended
July 31, 2004 was to increase net investment income per share by $0.02 on
all share classes and decrease net realized and unrealized gain (loss)
from investment activities per share by $0.02 on all share classes, and
increase the ratio of net investment income by 0.16% and 0.17% on Class Y
and Class P, respectively.
(a) For the period February 2, 2001 (commencement of issuance) through July
31, 2001.
192
<Page>
<Table>
<Caption>
CLASS P
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -------------------------------------------------------------
(UNAUDITED) 2004** 2003 2002 2001 2000
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.88 $ 13.44 $ 13.16 $ 12.91 $ 12.21 $ 12.33
Net investment income 0.24@ 0.42@ 0.61@ 0.61@ 0.73 0.73
Net realized and unrealized gains (losses) from
investment activities 0.35 0.42 0.25 0.26 0.78 (0.13)
Net increase from operations 0.59 0.84 0.86 0.87 1.51 0.60
Dividends from net investment income (0.25) (0.40) (0.58) (0.62) (0.81) (0.72)
Distributions from net realized gains from
investment activities (0.33) -- -- -- -- --
Total dividends and distributions (0.58) (0.40) (0.58) (0.62) (0.81) (0.72)
NET ASSET VALUE, END OF PERIOD $ 13.89 $ 13.88 $ 13.44 $ 13.16 $ 12.91 $ 12.21
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 4.32% 6.31% 6.54% 6.86% 12.74% 5.08%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 398,489 $ 347,091 $ 252,219 $ 241,140 $ 210,444 $ 234,748
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 0.93%* 0.93% 0.90% 0.85% 0.91%^ 0.85%
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 0.98%* 0.99% 1.00% 0.96% 0.93%^ 0.89%
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
and recoupments to manager 3.39%* 2.85% 4.44% 4.70% 6.09% 6.04%
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 3.34%* 2.79% 4.34% 4.59% 6.07% 6.00%
Portfolio turnover 56% 185% 357% 375% 519% 391%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
193
<Page>
UBS PACE MUNICIPAL FIXED INCOME INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.43
Net investment income 0.20 0.39 0.45 0.51 0.26
Net realized and unrealized gains (losses) from
investment activities 0.11 0.00^ (0.14) 0.18 0.09
Net increase from operations 0.31 0.39 0.31 0.69 0.35
Dividends from net investment income (0.20) (0.39) (0.45) (0.51) (0.26)
NET ASSET VALUE, END OF PERIOD $ 12.67 $ 12.56 $ 12.56 $ 12.70 $ 12.52
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.44% 3.09% 2.42% 5.62% 2.86%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 125,399 $ 131,888 $ 153,966 $ 167,685 $ 178,299
Expenses to average net assets, net of fee
waivers and expense reimbursements by manager 0.96%* 0.96% 0.93% 0.87% 0.88%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.03%* 1.08% 1.06% 1.05% 1.01%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
manager 3.06%* 3.03% 3.49% 4.01% 4.16%*
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 2.99%* 2.91% 3.36% 3.83% 4.03%*
Portfolio turnover 14% 46% 42% 20% 68%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
^ Amount represents less than $0.005 per share.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 could pay on Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period January 23, 2001 (commencement of issuance) through July
31, 2001.
(b) For the period February 23, 2001 (commencement of issuance) through July
31, 2001.
(c) For the period December 4, 2000 (commencement of issuance) through July
31, 2001.
194
<Page>
<Table>
<Caption>
CLASS B
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(b)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.42
Net investment income 0.15 0.30 0.35 0.41 0.19
Net realized and unrealized gains (losses) from
investment activities 0.11 (0.01) (0.14) 0.18 0.10
Net increase from operations 0.26 0.29 0.21 0.59 0.29
Dividends from net investment income (0.15) (0.29) (0.35) (0.41) (0.19)
NET ASSET VALUE, END OF PERIOD $ 12.67 $ 12.56 $ 12.56 $ 12.70 $ 12.52
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.06% 2.31% 1.65% 4.81% 2.32%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 3,752 $ 4,861 $ 7,870 $ 10,949 $ 14,518
Expenses to average net assets, net of fee
waivers and expense reimbursements by manager 1.71%* 1.71% 1.68% 1.62% 1.63%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.79%* 1.83% 1.80% 1.80% 1.76%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
manager 2.32%* 2.28% 2.75% 3.26% 3.41%*
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 2.24%* 2.16% 2.63% 3.08% 3.28%*
Portfolio turnover 14% 46% 42% 20% 68%
- -----------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(c)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.19
Net investment income 0.16 0.32 0.38 0.44 0.31
Net realized and unrealized gains (losses) from
investment activities 0.11 0.00^ (0.14) 0.18 0.33
Net increase from operations 0.27 0.32 0.24 0.62 0.64
Dividends from net investment income (0.16) (0.32) (0.38) (0.44) (0.31)
NET ASSET VALUE, END OF PERIOD $ 12.67 $ 12.56 $ 12.56 $ 12.70 $ 12.52
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.18% 2.56% 1.88% 5.07% 5.33%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 23,373 $ 25,191 $ 28,882 $ 30,776 $ 32,075
Expenses to average net assets, net of fee
waivers and expense reimbursements by manager 1.48%* 1.48% 1.45% 1.39% 1.40%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.54%* 1.59% 1.56% 1.57% 1.53%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
manager 2.54%* 2.51% 2.96% 3.50% 3.65%*
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 2.48%* 2.40% 2.85% 3.32% 3.52%*
Portfolio turnover 14% 46% 42% 20% 68%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
195
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.42
Net investment income 0.21 0.41 0.48 0.54 0.24
Net realized and unrealized gains (losses) from
investment activities 0.12 0.00^ (0.14) 0.18 0.10
Net increase from operations 0.33 0.41 0.34 0.72 0.34
Dividends from net investment income (0.21) (0.41) (0.48) (0.54) (0.24)
NET ASSET VALUE, END OF PERIOD $ 12.68 $ 12.56 $ 12.56 $ 12.70 $ 12.52
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.64% 3.29% 2.65% 5.87% 2.72%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 192 $ 200 $ 194 $ 316 $ 399
Expenses to average net assets, net of fee
waivers and expense reimbursements by manager 0.74%* 0.74% 0.69% 0.63% 0.64%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 0.84%* 0.90% 0.85% 0.84% 0.83%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
manager 3.28%* 3.26% 3.73% 4.25% 4.40%*
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 3.18%* 3.10% 3.57% 4.04% 4.21%*
Portfolio turnover 14% 46% 42% 20% 68%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
^ Amount represents less than $0.005 per share.
~ Investment advisory functions for this Portfolio were transferred from
Deutsche Asset Management, Inc. to Standish Mellon Asset Management
Company LLC's predecessor on June 1, 2000.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable program fees; results would be
lower if they 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 could pay on Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period February 23, 2001 (commencement of issuance) through July
31, 2001.
196
<Page>
<Table>
<Caption>
CLASS P
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000~
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.15 $ 12.44
Net investment income 0.21 0.41 0.47 0.54 0.55 0.57
Net realized and unrealized gains (losses) from
investment activities 0.11 0.00^ (0.14) 0.18 0.42 (0.29)
Net increase from operations 0.32 0.41 0.33 0.72 0.97 0.28
Dividends from net investment income (0.21) (0.41) (0.47) (0.54) (0.60) (0.57)
NET ASSET VALUE, END OF PERIOD $ 12.67 $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.15
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 2.55% 3.29% 2.64% 5.86% 8.20% 2.37%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 104,091 $ 94,445 $ 69,938 $ 61,739 $ 49,110 $ 53,594
Expenses to average net assets, net of fee
waivers and expense reimbursements by manager 0.76%* 0.76% 0.72% 0.64% 0.76% 0.85%
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 0.82%* 0.88% 0.84% 0.85% 0.82% 0.89%
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
manager 3.27%* 3.24% 3.69% 4.24% 4.44% 4.68%
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 3.21%* 3.12% 3.57% 4.03% 4.38% 4.64%
Portfolio turnover 14% 46% 42% 20% 68% 33%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
197
<Page>
UBS PACE GLOBAL FIXED INCOME INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002+ 2001(a)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.74 $ 11.78 $ 10.91 $ 10.27 $ 10.45
Net investment income 0.11@ 0.22@ 0.27@ 0.35@ 0.30
Net realized and unrealized gains (losses) from
investment activities 1.11 0.70 0.92 0.67 (0.18)
Net increase (decrease) from operations 1.22 0.92 1.19 1.02 0.12
Dividends from net investment income (0.57) (0.96) (0.32) -- --
Distributions from net realized gains from
investment activities (0.02) -- -- -- --
Distributions from paid in capital -- -- -- (0.38) (0.30)
Total dividends and distributions (0.59) (0.96) (0.32) (0.38) (0.30)
NET ASSET VALUE, END OF PERIOD $ 12.37 $ 11.74 $ 11.78 $ 10.91 $ 10.27
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.41% 7.76% 11.01% 10.20% 1.09%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 161,167 $ 159,669 $ 176,124 $ 177,870 $ 190,838
Expenses to average net assets, net of fee
waivers and expense reimbursements by manager 1.36%* 1.36% 1.33% 1.24% 1.21%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.41%* 1.45% 1.45% 1.42% 1.41%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
manager 1.85%* 1.83% 2.32% 3.40% 4.42%*
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 1.80%* 1.74% 2.20% 3.22% 4.22%*
Portfolio turnover 121% 244% 274% 328% 270%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period December 11, 2000 (commencement of issuance) through July
31, 2001.
(b) For the period February 5, 2001 (commencement of issuance) through July
31, 2001.
(c) For the period December 1, 2000 (commencement of issuance) through July
31, 2001.
+ As required, effective August 1, 2001, the UBS PACE Global Fixed Income
Investments Portfolio has adopted the provisions of the AICPA Audit and
Accounting Guide, Audits of Investment Companies, and began amortizing
premium on debt securities for financial statement reporting purposes
only. The effect of this change for the year ended July 31, 2002 was to
decrease net investment income per share by $0.03, increase net realized
and unrealized gains from investment activities per share by $0.03, and
decrease the ratio of net investment income to average net assets, net of
fee waivers and expense reimbursements from 3.67% to 3.40% for Class A,
from 2.91% to 2.65% for Class B and from 3.15% to 2.89% for Class C. Per
share ratios and supplemental data for periods prior to August 1, 2001
have not been restated to reflect this change in presentation.
198
<Page>
<Table>
<Caption>
CLASS B
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002+ 2001(b)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.76 $ 11.80 $ 10.93 $ 10.28 $ 10.81
Net investment income 0.07@ 0.13@ 0.18@ 0.27@ 0.18
Net realized and unrealized gains (losses) from
investment activities 1.10 0.70 0.92 0.68 (0.54)
Net increase (decrease) from operations 1.17 0.83 1.10 0.95 (0.36)
Dividends from net investment income (0.52) (0.87) (0.23) -- --
Distributions from net realized gains from
investment activities (0.02) -- -- -- --
Distributions from paid in capital -- -- -- (0.30) (0.17)
Total dividends and distributions (0.54) (0.87) (0.23) (0.30) (0.17)
NET ASSET VALUE, END OF PERIOD $ 12.39 $ 11.76 $ 11.80 $ 10.93 $ 10.28
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 9.97% 6.94% 10.16% 9.44% (3.34)%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 1,875 $ 1,907 $ 2,233 $ 1,863 $ 2,381
Expenses to average net assets, net of fee
waivers and expense reimbursements by manager 2.11%* 2.11% 2.09% 2.01% 1.98%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 2.17%* 2.21% 2.21% 2.29% 2.55%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
manager 1.10%* 1.08% 1.56% 2.65% 3.61%*
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 1.04%* 0.98% 1.44% 2.37% 3.04%*
Portfolio turnover 121% 244% 274% 328% 270%
- -----------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002+ 2001(c)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.74 $ 11.78 $ 10.91 $ 10.27 $ 10.38
Net investment income 0.08@ 0.16@ 0.21@ 0.30@ 0.26
Net realized and unrealized gains (losses) from
investment activities 1.11 0.70 0.92 0.67 (0.11)
Net increase (decrease) from operations 1.19 0.86 1.13 0.97 0.15
Dividends from net investment income (0.54) (0.90) (0.26) -- --
Distributions from net realized gains from
investment activities (0.02) -- -- -- --
Distributions from paid in capital -- -- -- (0.33) (0.26)
Total dividends and distributions (0.56) (0.90) (0.26) (0.33) (0.26)
NET ASSET VALUE, END OF PERIOD $ 12.37 $ 11.74 $ 11.78 $ 10.91 $ 10.27
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.14% 7.24% 10.43% 9.63% 1.45%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 9,118 $ 8,754 $ 9,633 $ 13,025 $ 13,632
Expenses to average net assets, net of fee
waivers and expense reimbursements by manager 1.85%* 1.85% 1.83% 1.76% 1.72%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.92%* 1.93% 1.97% 1.90% 1.90%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements by
manager 1.36%* 1.34% 1.84% 2.89% 3.91%*
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 1.29%* 1.26% 1.70% 2.75% 3.73%*
Portfolio turnover 121% 244% 274% 328% 270%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
199
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 -------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002+ 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.73 $ 11.78 $ 10.91 $ 10.27 $ 10.73
Net investment income 0.13@ 0.26@ 0.30@ 0.36@ 0.27
Net realized and unrealized gains (losses) from
investment activities 1.11 0.69 0.92 0.69 (0.46)
Net increase (decrease) from operations 1.24 0.95 1.22 1.05 (0.19)
Dividends from net investment income (0.59) (1.00) (0.35) -- --
Distributions from net realized gains from
investment activities (0.02) -- -- -- --
Distributions from paid in capital -- -- -- (0.41) (0.27)
Total dividends and distributions (0.61) (1.00) (0.35) (0.41) (0.27)
NET ASSET VALUE, END OF PERIOD $ 12.36 $ 11.73 $ 11.78 $ 10.91 $ 10.27
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.59% 8.01% 11.34% 10.49% (1.76)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 10,050 $ 9,673 $ 12,429 $ 10,360 $ 4,825
Expenses to average net assets, net of fee waivers
and expense reimbursements by and recoupments to
manager 1.05%*^ 1.05% 1.04% 0.99% 0.95%*
Expenses to average net assets, before fee waivers
and expense reimbursements by manager 1.05%* 1.08% 1.09% 1.08% 1.08%*
Net investment income to average net assets, net
of fee waivers and expense reimbursements by and
recoupments to manager 2.16%*^ 2.14% 2.61% 3.62% 4.69%*
Net investment income to average net assets,
before fee waivers and expense reimbursements by
manager 2.16%* 2.11% 2.56% 3.53% 4.56%*
Portfolio turnover 121% 244% 274% 328% 270%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
~ A portion of the investment advisory function for this Portfolio was
transferred from Rogge Global Partners plc to Fischer Francis Trees &
Watts, Inc. (and its affiliates) on October 10, 2000.
@ Calculated using the average month-end shares outstanding for the period.
^ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable program fees; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period January 16, 2001 (commencement of issuance) through July
31, 2001.
+ As required, effective August 1, 2001, the UBS PACE Global Fixed Income
Investments Portfolio has adopted the provisions of the AICPA Audit and
Accounting Guide, Audits of Investment Companies, and began amortizing
premium on debt securities for financial statement reporting purposes
only. The effect of this change for the year ended July 31, 2002 was to
decrease net investment income per share by $0.03, increase net realized
and unrealized gains from investment activities per share by $0.03, and
decrease the ratio of net investment income to average net assets, net of
fee waivers and expense reimbursements from 3.88% to 3.62% for Class Y
and from 3.95% to 3.68% for Class P. Per share ratios and supplemental
data for periods prior to August 1, 2001 have not been restated to
reflect this change in presentation.
200
<Page>
<Table>
<Caption>
CLASS P
---------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 ---------------------------------------------------------
(UNAUDITED) 2004 2003 2002+ 2001~ 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.74 $ 11.78 $ 10.91 $ 10.27 $ 10.68 $ 11.82
Net investment income 0.13@ 0.25@ 0.30@ 0.38@ 0.43 0.53
Net realized and unrealized gains (losses) from
investment activities 1.10 0.70 0.92 0.67 (0.35) (1.10)
Net increase (decrease) from operations 1.23 0.95 1.22 1.05 0.08 (0.57)
Dividends from net investment income (0.58) (0.99) (0.35) -- -- (0.42)
Distributions from net realized gains from
investment activities (0.02) -- -- -- -- (0.09)
Distributions from paid in capital -- -- -- (0.41) (0.49) (0.06)
Total dividends and distributions (0.60) (0.99) (0.35) (0.41) (0.49) (0.57)
NET ASSET VALUE, END OF PERIOD $ 12.37 $ 11.74 $ 11.78 $ 10.91 $ 10.27 $ 10.68
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.54% 8.02% 11.31% 10.52% 0.71% (4.97)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 249,442 $ 203,450 $ 139,300 $ 114,790 $ 94,085 $ 100,831
Expenses to average net assets, net of fee waivers
and expense reimbursements by and recoupments to
manager 1.13%* 1.13% 1.07% 0.95% 0.95% 0.95%
Expenses to average net assets, before fee waivers
and expense reimbursements by manager 1.28%* 1.32% 1.30% 1.27% 1.17% 1.18%
Net investment income to average net assets, net
of fee waivers and expense reimbursements by and
recoupments to manager 2.09%* 2.07% 2.57% 3.68% 4.23% 4.50%
Net investment income to average net assets,
before fee waivers and expense reimbursements by
manager 1.94%* 1.88% 2.34% 3.36% 4.01% 4.27%
Portfolio turnover 121% 244% 274% 328% 270% 170%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
201
<Page>
UBS PACE LARGE CO VALUE EQUITY INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
---------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.56 $ 15.39 $ 14.83 $ 17.52 $ 16.76
Net investment income (loss) 0.12@ 0.18 0.15 0.12 0.04
Net realized and unrealized gains (losses) from
investment activities 1.65 2.13 0.55 (2.71) 0.72
Net increase (decrease) from operations 1.77 2.31 0.70 (2.59) 0.76
Dividends from net investment income (0.20) (0.14) (0.14) (0.10) --
NET ASSET VALUE, END OF PERIOD $ 19.13 $ 17.56 $ 15.39 $ 14.83 $ 17.52
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.09% 15.06% 4.82% (14.85)% 4.53%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 309,535 $ 305,359 $ 296,936 $ 325,252 $ 447,486
Expenses to average net assets, net of fee waivers
and expense reimbursements by and recoupments to
manager 1.15%* 1.21% 1.21% 1.14% 1.13%*
Expenses to average net assets, before fee waivers
and expense reimbursements by manager 1.26%* 1.31% 1.33% 1.28% 1.25%*
Net investment income (loss) to average net assets,
net of fee waivers and expense reimbursements by
and recoupments to manager 1.26%* 0.98% 1.01% 0.71% 0.54%*
Net investment income (loss) to average net assets,
before fee waivers and expense reimbursements by
manager 1.15%* 0.88% 0.89% 0.57% 0.42%*
Portfolio turnover 41% 73% 72% 79% 148%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
~~ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period November 27, 2000 (commencement of issuance) through July
31, 2001.
202
<Page>
<Table>
<Caption>
CLASS B
---------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.50 $ 15.34 $ 14.75 $ 17.46 $ 16.76
Net investment income (loss) 0.04@ 0.02 0.02 (0.02) (0.02)
Net realized and unrealized gains (losses) from
investment activities 1.64 2.14 0.57 (2.69) 0.72
Net increase (decrease) from operations 1.68 2.16 0.59 (2.71) 0.70
Dividends from net investment income -- -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 19.18 $ 17.50 $ 15.34 $ 14.75 $ 17.46
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 9.60% 14.08% 4.00% (15.52)% 4.18%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 13,029 $ 23,273 $ 58,523 $ 77,722 $ 131,700
Expenses to average net assets, net of fee waivers
and expense reimbursements by and recoupments to
manager 2.05%* 2.04%~~ 2.01% 1.92% 1.90%*
Expenses to average net assets, before fee waivers
and expense reimbursements by manager 2.19%* 2.14% 2.13% 2.06% 2.04%*
Net investment income (loss) to average net assets,
net of fee waivers and expense reimbursements by
and recoupments to manager 0.41%* 0.16%~~ 0.21% (0.07)% (0.22)%*
Net investment income (loss) to average net assets,
before fee waivers and expense reimbursements by
manager 0.27%* 0.06% 0.09% (0.21)% (0.38)%*
Portfolio turnover 41% 73% 72% 79% 148%
- ---------------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
---------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ---------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.50 $ 15.34 $ 14.75 $ 17.46 $ 16.76
Net investment income (loss) 0.04@ 0.03 0.03 (0.02) (0.02)
Net realized and unrealized gains (losses) from
investment activities 1.65 2.14 0.57 (2.69) 0.72
Net increase (decrease) from operations 1.69 2.17 0.60 (2.71) 0.70
Dividends from net investment income (0.04) (0.01) (0.01) -- --
NET ASSET VALUE, END OF PERIOD $ 19.15 $ 17.50 $ 15.34 $ 14.75 $ 17.46
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 9.68% 14.14% 4.04% (15.52)% 4.18%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 41,001 $ 41,701 $ 46,437 $ 52,912 $ 76,977
Expenses to average net assets, net of fee waivers
and expense reimbursements by and recoupments to
manager 1.94%*^ 2.00%~~ 2.00% 1.92% 1.89%*
Expenses to average net assets, before fee waivers
and expense reimbursements by manager 2.06%* 2.10% 2.12% 2.06% 2.04%*
Net investment income (loss) to average net assets,
net of fee waivers and expense reimbursements by
and recoupments to manager 0.47%*^ 0.19%~~ 0.22% (0.07)% (0.21)%*
Net investment income (loss) to average net assets,
before fee waivers and expense reimbursements by
manager 0.35%* 0.09% 0.10% (0.21)% (0.38)%*
Portfolio turnover 41% 73% 72% 79% 148%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
203
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
----------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.60 $ 15.41 $ 14.85 $ 17.54 $ 17.15
Net investment income 0.15@ 0.24 0.20 0.16 0.06
Net realized and unrealized gains
(losses) from investment activities 1.65 2.14 0.55 (2.71) 0.33
Net increase (decrease) from operations 1.80 2.38 0.75 (2.55) 0.39
Dividends from net investment income (0.25) (0.19) (0.19) (0.14) --
Distributions from net realized gains
from investment activities -- -- -- -- --
Total dividends and distributions (0.25) (0.19) (0.19) (0.14) --
NET ASSET VALUE, END OF PERIOD $ 19.15 $ 17.60 $ 15.41 $ 14.85 $ 17.54
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.25% 15.49% 5.19% (14.63)% 2.27%
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 39,143 $ 37,336 $ 36,448 $ 41,046 $ 39,612
Expenses to average net assets, net of
fee waivers and expense reimbursements
by and recoupments to manager 0.84%*~~ 0.85%~~ 0.87% 0.84% 0.85%*
Expenses to average net assets, before
fee waivers and expense reimbursements
by manager 0.95%* 0.95% 0.97% 0.93% 0.93%*
Net investment income to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to
manager 1.57%*~~ 1.33%~~ 1.35% 0.99% 0.80%*
Net investment income to average net
assets, before fee waivers and expense
reimbursements by manager 1.46%* 1.23% 1.25% 0.90% 0.72%*
Portfolio turnover 41% 73% 72% 79% 148%
- -----------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
~ Investment advisory functions for this Portfolio were transferred from
Brinson Partners, Inc. to Institutional Capital Corp. and Westwood
Management Corp. on July 1, 2000. SSgA Funds Management, Inc. assumed
investment advisory functions with respect to a portion of the Portfolio
on October 10, 2000.
~~ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable program fees; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period January 19, 2001 (commencement of issuance) through July
31, 2001.
204
<Page>
<Table>
<Caption>
CLASS P
------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -------------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001~ 2000~
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.58 $ 15.40 $ 14.84 $ 17.54 $ 16.35 $ 21.14
Net investment income 0.14@ 0.19 0.17 0.15 0.17 0.15
Net realized and unrealized gains
(losses) from investment activities 1.66 2.18 0.57 (2.71) 1.18 (3.17)
Net increase (decrease) from operations 1.80 2.37 0.74 (2.56) 1.35 (3.02)
Dividends from net investment income (0.25) (0.19) (0.18) (0.14) (0.16) (0.14)
Distributions from net realized gains
from investment activities -- -- -- -- -- (1.63)
Total dividends and distributions (0.25) (0.19) (0.18) (0.14) (0.16) (1.77)
NET ASSET VALUE, END OF PERIOD $ 19.13 $ 17.58 $ 15.40 $ 14.84 $ 17.54 $ 16.35
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 10.22% 15.40% 5.09% (14.68)% 8.32% (14.74)%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 718,441 $ 598,934 $ 400,188 $ 338,732 $ 348,068 $ 335,294
Expenses to average net assets, net of
fee waivers and expense reimbursements
by and recoupments to manager 0.93%*~~ 0.96% 0.97% 0.89% 0.88% 0.96%
Expenses to average net assets, before
fee waivers and expense reimbursements
by manager 1.04%* 1.06% 1.07% 1.03% 0.94% 0.96%
Net investment income to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to
manager 1.47%*~~ 1.21% 1.24% 0.96% 0.99% 0.85%
Net investment income to average net
assets, before fee waivers and expense
reimbursements by manager 1.36%* 1.11% 1.14% 0.82% 0.93% 0.85%
Portfolio turnover 41% 73% 72% 79% 148% 195%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
205
<Page>
UBS PACE LARGE CO GROWTH EQUITY INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
-----------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED) 2004 2003+ 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.50 $ 12.78 $ 11.49 $ 16.86 $ 21.61
Net investment loss (0.00)@# (0.07)@ (0.05)@ (0.08)@ (0.05)
Net realized and unrealized gains
(losses) from investment activities 1.31 0.79 1.34 (5.29) (4.70)
Net increase (decrease) from
operations 1.31 0.72 1.29 (5.37) (4.75)
NET ASSET VALUE, END OF PERIOD $ 14.81 $ 13.50 $ 12.78 $ 11.49 $ 16.86
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 9.70% 5.63% 11.23% (31.85)% (21.98)%
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 95,995 $ 98,710 $ 109,326 $ 115,625 $ 208,102
Expenses to average net assets,
net of fee waivers and expense
reimbursements by and recoupments
to manager 1.30%*^ 1.30%^ 1.25% 1.14% 1.11%*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 1.35%* 1.36% 1.40% 1.31% 1.25%*
Net investment loss to average net
asets, net of fee waivers and
expense reimbursements by and
recoupments to manager (0.02)%*^ (0.48)%^ (0.46)% (0.52)% (0.54)%*
Net investment loss to average net
assets before fee waiver and
expense reimbursements by manager (0.07)%* (0.54)% (0.61)% (0.69)% (0.68)%*
Portfolio turnover 38% 0.82% 107% 57% 64%
- --------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
+ A portion of the investment advisory function for this portfolio was
transferred from Alliance Capital Management L.P. to GE Asset Management,
Inc. and Marsico Capital Management, LLC on September 16, 2002. SSGA
Funds Management, Inc. continues to provide a portion of the investment
advisory function.
@ Calculated using the average month-end shares outstanding for the period.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period November 27, 2000 (commencement of issuance) through July
31, 2001.
^ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
# Amount represents less than $0.005 per share.
206
<Page>
<Table>
<Caption>
CLASS B
-----------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED) 2004 2003+ 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.12 $ 12.53 $ 11.36 $ 16.80 $ 21.61
Net investment loss (0.06)@ (0.18)@ (0.15)@ (0.19)@ (0.15)
Net realized and unrealized gains
(losses) from investment activities 1.27 0.77 1.32 (5.25) (4.66)
Net increase (decrease) from
operations 1.21 0.59 1.17 (5.44) (4.81)
NET ASSET VALUE, END OF PERIOD $ 14.33 $ 13.12 $ 12.53 $ 11.36 $ 16.80
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 9.22% 4.71% 10.30% (32.38)% (22.26)%
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 4,554 $ 6,038 $ 10,503 $ 12,853 $ 29,814
Expenses to average net assets,
net of fee waivers and expense
reimbursements by and recoupments
to manager 2.16%* 2.16% 2.09% 1.94% 1.88%*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 2.33%* 2.27% 2.31% 2.20% 2.09%*
Net investment loss to average net
asets, net of fee waivers and
expense reimbursements by and
recoupments to manager (0.88)%* (1.35)% (1.29)% (1.32)% (1.32)%*
Net investment loss to average net
assets before fee waiver and
expense reimbursements by manager (1.05)%* (1.46)% (1.51)% (1.58)% (1.53)%*
Portfolio turnover 38% 82% 107% 57% 64%
- --------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED) 2004 2003+ 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.14 $ 12.54 $ 11.36 $ 16.81 $ 21.61
Net investment loss (0.06)@ (0.17)@ (0.14)@ (0.19)@ (0.14)
Net realized and unrealized gains
(losses) from investment activities 1.28 0.77 1.32 (5.26) (4.66)
Net increase (decrease) from
operations 1.22 0.60 1.18 (5.45) (4.80)
NET ASSET VALUE, END OF PERIOD $ 14.36 $ 13.14 $ 12.54 $ 11.36 $ 16.81
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 9.29% 4.78% 10.39% (32.42)% (22.21)%
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 10,855 $ 11,152 $ 12,598 $ 13,845 $ 25,005
Expenses to average net assets,
net of fee waivers and expense
reimbursements by and recoupments
to manager 2.11%* 2.11% 2.05% 1.92% 1.87%*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 2.17%* 2.19% 2.24% 2.15% 2.07%*
Net investment loss to average net
asets, net of fee waivers and
expense reimbursements by and
recoupments to manager (0.83)%* (1.29)% (1.26)% (1.29)% (1.31)%*
Net investment loss to average net
assets before fee waiver and
expense reimbursements by manager (0.89)%* (1.37)% (1.45)% (1.52)% (1.51)%*
Portfolio turnover 38% 82% 107% 57% 64%
- --------------------------------------------------------------------------------------------------------------------
</Table>
207
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------------ JULY 31,
(UNAUDITED) 2004 2003++ 2002 2001(a)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.67 $ 12.88 $ 11.54 $ 16.88 $ 20.02
Net investment income (loss) 0.03@ (0.01)@ (0.01)@ (0.03)@ (0.02)
Net realized and unrealized gains
(losses) from investment activities 1.32 0.80 1.35 (5.31) (3.12)
Net increase (decrease) from
operations 1.35 0.79 1.34 (5.34) (3.14)
Distributions from net realized
gains from investment activities -- -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 15.02 $ 13.67 $ 12.88 $ 11.54 $ 16.88
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 9.88% 6.13% 11.61% (31.64)% (15.63)%
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 23,252 $ 22,647 $ 23,829 $ 20,990 $ 29,634
Expenses to average net assets, net
of fee waivers and expense
reimbursements by and recoupments
to manager 0.86%* 0.89% 0.90% 0.85% 0.85%*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 0.90%* 0.93% 0.98% 0.95% 0.91%*
Net investment income (loss) to
average net asets, net of fee
waivers and expense reimbursements
by and recoupments to manager 0.42%* (0.07)% (0.11)% (0.23)% (0.27)%*
Net investment income (loss) to
average net assets before fee
waiver and expense reimbursements
by manager 0.38%* (0.11)% (0.19)% (0.33)% (0.33)%*
Portfolio turnover 38% 82% 107% 57% 64%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
+ A portion of the investment advisory function for this portfolio was
transferred from Alliance Capital Management L.P. to SSgA Funds
Management, Inc. on October 10, 2000.
++ A portion of the investment advisory function for this portfolio was
transferred from Alliance Capital Management L.P. to GE Asset Management,
Inc. and Marsico Capital Management, LLC on September 16, 2002. SSGA
Funds Management, Inc. continues to provide a portion of the investment
advisory function.
@ Calculated using the average month-end shares outstanding for the period.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable program fees; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period February 15, 2001 (commencement of issuance) through July
31, 2001.
^ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
208
<Page>
<Table>
<Caption>
CLASS P
------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -------------------------------------------------------------------------
(UNAUDITED) 2004 2003^^ 2002 2001+ 2000
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.62 $ 12.85 $ 11.53 $ 16.88 $ 29.70 $ 25.88
Net investment income (loss) 0.02@ (0.02)@ (0.03)@ (0.04)@ (0.07) (0.12)
Net realized and unrealized gains
(losses) from investment activities 1.33 0.79 1.35 (5.31) (9.42) 4.69
Net increase (decrease) from
operations 1.35 0.77 1.32 (5.35) (9.49) 4.57
Distributions from net realized
gains from investment activities -- -- -- -- (3.33) (0.75)
NET ASSET VALUE, END OF PERIOD $ 14.97 $ 13.62 $ 12.85 $ 11.53 $ 16.88 $ 29.70
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 9.91% 5.99% 11.45% (31.69)% (34.17)% 17.76%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 662,044 $ 546,373 $ 389,805 $ 299,959 $ 333,003 $ 436,806
Expenses to average net assets, net
of fee waivers and expense
reimbursements by and recoupments
to manager 0.97%*^ 1.00% 1.01% 0.91% 0.89% 0.94%
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 1.02%* 1.05% 1.10% 1.05% 0.94% 0.94%
Net investment income (loss) to
average net asets, net of fee
waivers and expense reimbursements
by and recoupments to manager 0.30%*^ (0.18)% (0.22)% (0.28)% (0.36)% (0.42)%
Net investment income (loss) to
average net assets before fee
waiver and expense reimbursements
by manager 0.25%* (0.23)% (0.31)% (0.42)% (0.41)% (0.42)%
Portfolio turnover 38% 82% 107% 57% 64% 59%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
209
<Page>
UBS PACE SMALL/MEDIUM CO VALUE EQUITY INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
-------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------------ JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.63 $ 16.49 $ 16.10 $ 17.00 $ 13.91
Net investment income (loss) (0.03)@ (0.07)@ (0.04)@ (0.05) 0.03
Net realized and unrealized gains
(losses) from investment
activities 2.38 3.21 1.57 (0.79) 3.06
Net increase (decrease) from
operations 2.35 3.14 1.53 (0.84) 3.09
Dividends from net investment income -- -- -- (0.04) --
Distributions from net realized
gains from investment activities (2.05) -- (1.14) (0.02) --
Total dividends and distributions (2.05) -- (1.14) (0.06) --
NET ASSET VALUE, END OF PERIOD $ 19.93 $ 19.63 $ 16.49 $ 16.10 $ 17.00
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 11.86% 19.04% 10.88% (4.95)% 22.21%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 53,985 $ 50,786 $ 44,758 $ 44,464 $ 46,241
Expenses to average net assets, net
of fee waivers and expense
reimbursements by and recoupments
to manager 1.34%*^ 1.36%^ 1.36% 1.30% 1.26%*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 1.34%* 1.36% 1.40% 1.32% 1.28%*
Net investment income (loss) to
average net assets, net of fee
waivers and expense reimbursements
by and recoupments to manager (0.28)%*^ (0.38)%^ (0.27)% (0.19)% 0.41%*
Net investment income (loss) to
average net assets, before fee
waivers and expense reimbursements
by manager (0.28)%* (0.38)% (0.31)% (0.21)% 0.39%*
Portfolio turnover 26% 36% 32% 44% 72%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period November 27, 2000 (commencement of issuance) through July
31, 2001.
(b) For the period November 28, 2000 (commencement of issuance) through July
31, 2001.
^ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
210
<Page>
<Table>
<Caption>
CLASS B
-------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------------ JULY 31,
(UNAUDITED) 2004 2003 2002 2001(b)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.12 $ 16.19 $ 15.95 $ 16.94 $ 13.86
Net investment income (loss) (0.11)@ (0.21)@ (0.16)@ (0.16) (0.03)
Net realized and unrealized gains
(losses) from investment
activities 2.32 3.14 1.54 (0.81) 3.11
Net increase (decrease) from
operations 2.21 2.93 1.38 (0.97) 3.08
Dividends from net investment income -- -- -- -- --
Distributions from net realized
gains from investment activities (2.05) -- (1.14) (0.02) --
Total dividends and distributions (2.05) -- (1.14) (0.02) --
NET ASSET VALUE, END OF PERIOD $ 19.28 $ 19.12 $ 16.19 $ 15.95 $ 16.94
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 11.44% 18.10% 10.00% (5.72)% 22.22%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 5,714 $ 6,683 $ 10,877 $ 12,953 $ 12,811
Expenses to average net assets, net
of fee waivers and expense
reimbursements by and recoupments
to manager 2.15%*^ 2.16%^ 2.17% 2.09% 2.03%*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 2.15%* 2.16% 2.20% 2.11% 2.05%*
Net investment income (loss) to
average net assets, net of fee
waivers and expense reimbursements
by and recoupments to manager (1.10)%*^ (1.19)%^ (1.08)% (0.98)% (0.37)%*
Net investment income (loss) to
average net assets, before fee
waivers and expense reimbursements
by manager (1.10)%* (1.19)% (1.11)% (1.00)% (0.39)%*
Portfolio turnover 26% 36% 32% 44% 72%
- -----------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
-------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------------ JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.13 $ 16.19 $ 15.95 $ 16.94 $ 13.91
Net investment income (loss) (0.10)@ (0.21)@ (0.15)@ (0.17) (0.03)
Net realized and unrealized gains
(losses) from investment
activities 2.32 3.15 1.53 (0.80) 3.06
Net increase (decrease) from
operations 2.22 2.94 1.38 (0.97) 3.03
Dividends from net investment income -- -- -- -- --
Distributions from net realized
gains from investment activities (2.05) -- (1.14) (0.02) --
Total dividends and distributions (2.05) -- (1.14) (0.02) --
NET ASSET VALUE, END OF PERIOD $ 19.30 $ 19.13 $ 16.19 $ 15.95 $ 16.94
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 11.48% 18.16% 10.00% (5.72)% 21.78%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 14,318 $ 13,548 $ 12,759 $ 13,450 $ 13,741
Expenses to average net assets, net
of fee waivers and expense
reimbursements by and recoupments
to manager 2.09%*^ 2.13%^ 2.16% 2.09% 2.02%*
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 2.09%* 2.13% 2.19% 2.10% 2.06%*
Net investment income (loss) to
average net assets, net of fee
waivers and expense reimbursements
by and recoupments to manager (1.03)%*^ (1.15)%^ (1.07)% (0.98)% (0.36)%*
Net investment income (loss) to
average net assets, before fee
waivers and expense reimbursements
by manager (1.03)%* (1.15)% (1.10)% (0.99)% (0.40)%*
Portfolio turnover 26% 36% 32% 44% 72%
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
211
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
-------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.78 $ 16.56 $ 16.13 $ 17.02 $ 13.69
Net investment income (loss) 0.01@ (0.01)@ (0.01)@ 0.01 0.05
Net realized and unrealized gains (losses) from
investment activities 2.40 3.23 1.58 (0.81) 3.28
Net increase (decrease) from operations 2.41 3.22 1.57 (0.80) 3.33
Dividends from net investment income -- -- -- (0.07) --
Distributions from net realized gains from
investment activities (2.05) -- (1.14) (0.02) --
Total dividends and distributions (2.05) -- (1.14) (0.09) --
NET ASSET VALUE, END OF PERIOD $ 20.14 $ 19.78 $ 16.56 $ 16.13 $ 17.02
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 12.08% 19.44% 11.12% (4.73)% 24.32%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 4,222 $ 3,754 $ 1,813 $ 1,481 $ 1,699
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 0.99%*^ 1.04%^ 1.14% 1.06% 1.00%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 0.99%* 1.04% 1.16% 1.08% 1.03%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager 0.07%*^ (0.05)%^ (0.05)% 0.07% 0.67%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager 0.07%* (0.05)% (0.07)% 0.05% 0.64%*
Portfolio turnover 26% 36% 32% 44% 72%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
~ Prior to October 4, 1999, Brandywine Asset Management, Inc.
("Brandywine") served as investment advisor. From October 4, 1999 to
October 9, 2000, Brandywine and Ariel Capital Management, Inc. ("Ariel")
served as investment advisors. On October 10, 2000, ICM Asset Management,
Inc. joined Ariel as an investment advisor, replacing Brandywine.
+ Amount is less than $0.005 per share.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable program fees; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period December 20, 2000 (commencement of issuance) through July
31, 2001.
^ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
212
<Page>
<Table>
<Caption>
CLASS P
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001~ 2000~
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.78 $ 16.58 $ 16.14 $ 17.02 $ 13.33 $ 15.75
Net investment income (loss) (0.01)@ (0.03)@ (0.00)+@ 0.02 0.14 0.10
Net realized and unrealized gains (losses) from
investment activities 2.40 3.23 1.58 (0.81) 3.71 (1.79)
Net increase (decrease) from operations 2.39 3.20 1.58 (0.79) 3.85 (1.69)
Dividends from net investment income -- -- -- (0.07) (0.16) (0.06)
Distributions from net realized gains from
investment activities (2.05) -- (1.14) (0.02) -- (0.67)
Total dividends and distributions (2.05) -- (1.14) (0.09) (0.16) (0.73)
NET ASSET VALUE, END OF PERIOD $ 20.12 $ 19.78 $ 16.58 $ 16.14 $ 17.02 $ 13.33
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 11.98% 19.30% 11.18% (4.67)% 29.20% (10.59)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 324,240 $ 277,254 $ 204,028 $ 179,315 $ 224,026 $ 213,749
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 1.16%* 1.16% 1.11% 0.99% 0.97% 1.00%
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.16%* 1.20% 1.25% 1.10% 0.99% 1.01%
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager (0.10)%* (0.17)% (0.01)% 0.12% 0.98% 0.77%
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager (0.10)%* (0.21)% (0.15)% 0.01% 0.96% 0.76%
Portfolio turnover 26% 36% 32% 44% 72% 83%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
213
<Page>
UBS PACE SMALL/MEDIUM CO GROWTH EQUITY INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
---------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.08 $ 13.08 $ 10.84 $ 13.65 $ 17.19
Net investment loss (0.07)@ (0.13)@ (0.10)@ (0.11)@ (0.04)
Net realized and unrealized gains (losses) from
investment activities 2.21 1.13 2.34 (2.70) (3.50)
Net increase (decrease) from operations 2.14 1.00 2.24 (2.81) (3.54)
Distributions from net realized gains from
investment activities (0.06) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 16.16 $ 14.08 $ 13.08 $ 10.84 $ 13.65
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 15.21% 7.65% 20.66% (20.59)% (20.59)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 62,433 $ 60,239 $ 63,435 $ 61,535 $ 89,283
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 1.34%*^ 1.37%^ 1.38% 1.30% 1.21%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.34%* 1.37% 1.41% 1.34% 1.29%*
Net investment loss to average net assets, net
of fee waivers and expense reimbursements by
and recoupments to manager (0.93)%*^ (0.88)%^ (0.87)% (0.88)% (0.56)%*
Net investment loss to average net assets,
before fee waivers and expense reimbursements
by manager (0.93)%* (0.88)% (0.90)% (0.92)% (0.64)%*
Portfolio turnover 19% 85% 50% 48% 68%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
^ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
(a) For the period November 27, 2000 (commencement of issuance) through July
31, 2001.
214
<Page>
<Table>
<Caption>
CLASS B
---------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.68 $ 12.82 $ 10.71 $ 13.60 $ 17.19
Net investment loss (0.14)@ (0.24)@ (0.19)@ (0.20)@ (0.09)
Net realized and unrealized gains (losses) from
investment activities 2.14 1.10 2.30 (2.69) (3.50)
Net increase (decrease) from operations 2.00 0.86 2.11 (2.89) (3.59)
Distributions from net realized gains from
investment activities (0.06) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 15.62 $ 13.68 $ 12.82 $ 10.71 $ 13.60
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 14.63% 6.71% 19.70% (21.25)% (20.88)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 2,577 $ 2,836 $ 5,334 $ 6,795 $ 16,620
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 2.27%* 2.23% 2.24% 2.08% 1.98%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 2.31%* 2.24% 2.30% 2.22% 2.12%*
Net investment loss to average net assets, net
of fee waivers and expense reimbursements by
and recoupments to manager (1.86)%* (1.74)% (1.72)% (1.63)% (1.24)%*
Net investment loss to average net assets,
before fee waivers and expense reimbursements
by manager (1.90)%* (1.75)% (1.78)% (1.77)% (1.38)%*
Portfolio turnover 19% 85% 50% 48% 68%
- ------------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
---------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 --------------------------------------- JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.70 $ 12.83 $ 10.71 $ 13.60 $ 17.19
Net investment loss (0.13)@ (0.24)@ (0.18)@ (0.21)@ (0.09)
Net realized and unrealized gains (losses) from
investment activities 2.14 1.11 2.30 (2.68) (3.50)
Net increase (decrease) from operations 2.01 0.87 2.12 (2.89) (3.59)
Distributions from net realized gains from
investment activities (0.06) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 15.65 $ 13.70 $ 12.83 $ 10.71 $ 13.60
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 14.68% 6.78% 19.79% (21.25)% (20.88)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 9,027 $ 8,850 $ 9,459 $ 9,380 $ 13,654
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 2.16%*^ 2.16%^ 2.18% 2.08% 1.97%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 2.16%* 2.16% 2.22% 2.14% 2.09%*
Net investment loss to average net assets, net
of fee waivers and expense reimbursements by
and recoupments to manager (1.76)%*^ (1.68)%^ (1.67)% (1.65)% (1.24)%*
Net investment loss to average net assets,
before fee waivers and expense reimbursements
by manager (1.76)%* (1.68)% (1.71)% (1.71)% (1.36)%*
Portfolio turnover 19% 85% 50% 48% 68%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
215
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED) 2004 2003 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.21 $ 13.15 $ 10.87 $ 13.68 $ 14.93
Net investment loss (0.04)@ (0.07)@ (0.08)@ (0.02)@ (0.02)
Net realized and unrealized gains (losses) from
investment activities 2.22 1.13 2.36 (2.79) (1.23)
Net increase (decrease) from operations 2.18 1.06 2.28 (2.81) (1.25)
Distributions from net realized gains from
investment activities (0.06) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 16.33 $ 14.21 $ 13.15 $ 10.87 $ 13.68
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 15.36% 8.06% 20.97% (20.54)% (8.37)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 3,702 $ 2,980 $ 1,372 $ 284 $ 390
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 0.96%* 0.97%^ 1.22%^ 1.04%^ 0.95%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 0.96%* 0.97% 1.16% 1.00% 1.13%*
Net investment loss to average net assets, net
of fee waivers and expense reimbursements by
and recoupments to manager (0.55)%* (0.50)%^ (0.69)%^ (0.21)%^ (0.26)%*
Net investment loss to average net assets,
before fee waivers and expense reimbursements
by manager (0.55)%* (0.50)% (0.63)% (0.17)% (0.44)%*
Portfolio turnover 19% 85% 50% 48% 68%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
(1) Total investment return is calculated assuming a $10,000 investment on the
first day of each period 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 period reported. The
figures do not include any applicable program fees; results would be lower
if they 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 Portfolio distributions or the redemption
of Portfolio shares.
^ The investment manager was reimbursed for expenses previously waived by the
investment manager on behalf of the Portfolio, not to exceed the expense
cap.
(a) For the period February 12, 2001 (commencement of issuance) through July
31, 2001.
216
<Page>
<Table>
<Caption>
CLASS P
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.22 $ 13.18 $ 10.88 $ 13.67 $ 30.27 $ 20.62
Net investment loss (0.06)@ (0.10)@ (0.06)@ (0.07)@ (0.07) (0.19)
Net realized and unrealized gains (losses) from
investment activities 2.23 1.14 2.36 (2.72) (8.06) 12.58
Net increase (decrease) from operations 2.17 1.04 2.30 (2.79) (8.13) 12.39
Distributions from net realized gains from
investment activities (0.06) -- -- -- (8.47) (2.74)
NET ASSET VALUE, END OF PERIOD $ 16.33 $ 14.22 $ 13.18 $ 10.88 $ 13.67 $ 30.27
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 15.27% 7.89% 21.14% (20.41)% (30.93)% 62.30%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 316,689 $ 262,516 $ 216,911 $ 177,119 $ 244,247 $ 319,571
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 1.13%* 1.13% 1.09% 0.98% 0.94% 0.95%
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.17%* 1.17% 1.22% 1.11% 0.97% 0.96%
Net investment loss to average net assets, net
of fee waivers and expense reimbursements by
and recoupments to manager (0.72)%* (0.65)% (0.57)% (0.56)% (0.48)% (0.64)%
Net investment loss to average net assets,
before fee waivers and expense reimbursements
by manager (0.76)%* (0.69)% (0.70)% (0.69)% (0.51)% (0.65)%
Portfolio turnover 19% 85% 50% 48% 68% 81%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
217
<Page>
UBS PACE INTERNATIONAL EQUITY INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED)~ 2004~ 2003 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.96 $ 10.37 $ 10.08 $ 12.58 $ 15.25
Net investment income (loss) 0.03@ 0.04@ 0.09 0.04 0.08
Net realized and unrealized gains (losses) from
investment activities 1.92 2.60 0.21 (2.43) (2.75)
Net increase (decrease) from operations 1.95 2.64 0.30 (2.39) (2.67)
Dividends from net investment income (0.06) (0.05) (0.01) (0.11) --
NET ASSET VALUE, END OF PERIOD $ 14.85 $ 12.96 $ 10.37 $ 10.08 $ 12.58
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 15.05% 25.47% 2.95% (19.09)% (17.51)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 97,912 $ 92,590 $ 90,630 $ 94,785 $ 143,163
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 1.55%*+ 1.59%+ 1.58% 1.52% 1.40%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.55%* 1.59% 1.62% 1.60% 1.50%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager 0.42%*+ 0.33%+ 0.92% 0.20% 1.10%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager 0.42%* 0.33% 0.88% 0.12% 1.00%*
Portfolio turnover 20% 117% 88% 109% 60%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
~ A portion of the investment advisory function for this Portfolio was
transferred to J.P. Morgan Investment Management Inc. and Delaware
International Advisers Ltd. on April 1, 2004. Delaware International
Advisers Ltd. changed its name to Mondrian Investment Partners Ltd. on
September 24, 2004. Martin Currie Inc. continues to provide a portion of
the investment advisory function.
@ Calculated using the average month-end shares outstanding for the period.
+ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
^ Amount represents less than $0.005 per share.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period November 27, 2000 (commencement of issuance) through July
31, 2001.
218
<Page>
<Table>
<Caption>
CLASS B
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED)~ 2004~ 2003 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.71 $ 10.23 $ 10.05 $ 12.53 $ 15.25
Net investment income (loss) (0.04)@ (0.09)@ (0.03) (0.03) 0.02
Net realized and unrealized gains (losses) from
investment activities 1.87 2.57 0.21 (2.45) (2.74)
Net increase (decrease) from operations 1.83 2.48 0.18 (2.48) (2.72)
Dividends from net investment income -- -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 14.54 $ 12.71 $ 10.23 $ 10.05 $ 12.53
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 14.40% 24.24% 1.79% (19.79)% (17.84)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 1,008 $ 976 $ 1,235 $ 2,023 $ 4,630
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 2.62%*+ 2.63% 2.58% 2.37% 2.17%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 2.62%* 2.64% 2.65% 2.62% 2.43%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager (0.63)%*+ (0.73)% (0.18)% (0.73)% 0.29%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager (0.63)%* (0.74)% (0.25)% (0.98)% 0.03%*
Portfolio turnover 20% 117% 88% 109% 60%
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED)~ 2004~ 2003 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.76 $ 10.25 $ 10.04 $ 12.53 $ 15.25
Net investment income (loss) (0.03)@ (0.06)@ 0.00++ (0.05) 0.02
Net realized and unrealized gains (losses) from
investment activities 1.88 2.57 0.21 (2.42) (2.74)
Net increase (decrease) from operations 1.85 2.51 0.21 (2.47) (2.72)
Dividends from net investment income -- -- -- (0.02) --
NET ASSET VALUE, END OF PERIOD $ 14.61 $ 12.76 $ 10.25 $ 10.04 $ 12.53
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 14.50% 24.49% 2.09% (19.75)% (17.84)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 8,375 $ 7,576 $ 7,598 $ 8,972 $ 13,304
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 2.38%*+ 2.44%+ 2.41% 2.30% 2.16%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 2.38%* 2.44% 2.48% 2.42% 2.31%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager (0.42)%*+ (0.53)%+ 0.05% (0.59)% 0.34%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager (0.42)%* (0.53)% (0.02)% (0.71)% 0.19%*
Portfolio turnover 20% 117% 88% 109% 60%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
219
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED)~ 2004~ 2003 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.98 $ 10.37 $ 10.09 $ 12.59 $ 14.96
Net investment income 0.06@ 0.10@ 0.13 0.07 0.04
Net realized and unrealized gains (losses) from
investment activities 1.93 2.60 0.19 (2.43) (2.41)
Net increase from payments by advisor -- -- -- -- --
Net increase (decrease) from operations 1.99 2.70 0.32 (2.36) (2.37)
Dividends from net investment income (0.13) (0.09) (0.04) (0.14) --
Distributions from net realized gains from
investment activities -- -- -- -- --
Total dividends and distributions (0.13) (0.09) (0.04) (0.14) --
NET ASSET VALUE, END OF PERIOD $ 14.84 $ 12.98 $ 10.37 $ 10.09 $ 12.59
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 15.30% 26.12% 3.24% (18.84)% (15.84)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 43,208 $ 39,474 $ 33,813 $ 45,674 $ 45,414
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 1.11%* 1.15% 1.21%+ 1.20% 1.14%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.11%* 1.15% 1.19% 1.20% 1.19%*
Net investment income to average net assets,
net of fee waivers and expense reimbursements
by and recoupments to manager 0.86%* 0.80% 1.25%+ 0.61% 1.11%*
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 0.86%* 0.80% 1.27% 0.61% 1.06%*
Portfolio turnover 20% 117% 88% 109% 60%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
~ A portion of the investment advisory function for this Portfolio was
transferred to J.P. Morgan Investment Management Inc. and Delaware
International Advisers Ltd. on April 1, 2004. Delaware International
Advisers Ltd. changed its name to Mondrian Investment Partners Ltd. on
September 24, 2004. Martin Currie Inc. continues to provide a portion of
the investment advisory function.
@ Calculated using the average month-end shares outstanding for the period.
^ Amount represents less than $0.005 per share.
+ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period reported, reinvestment of all dividends and
other distributions, if any, at net asset value on the ex-dividend dates,
and a sale at net asset value on the last day of each period reported.
The figures do not include any applicable program fees; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period January 17, 2001 (commencement of issuance) through July
31, 2001.
220
<Page>
<Table>
<Caption>
CLASS P
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -------------------------------------------------------------
(UNAUDITED)~ 2004~ 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.96 $ 10.36 $ 10.08 $ 12.59 $ 18.67 $ 17.18
Net investment income 0.05@ 0.09@ 0.11 0.06 0.06 0.07
Net realized and unrealized gains (losses) from
investment activities 1.92 2.59 0.20 (2.43) (4.88) 2.51
Net increase from payments by advisor -- -- -- -- 0.00++ 0.05
Net increase (decrease) from operations 1.97 2.68 0.31 (2.37) (4.82) 2.63
Dividends from net investment income (0.11) (0.08) (0.03) (0.14) (0.04) (0.12)
Distributions from net realized gains from
investment activities -- -- -- -- (1.22) (1.02)
Total dividends and distributions (0.11) (0.08) (0.03) (0.14) (1.26) (1.14)
NET ASSET VALUE, END OF PERIOD $ 14.82 $ 12.96 $ 10.36 $ 10.08 $ 12.59 $ 18.67
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 15.19% 25.93% 3.10% (18.93)% (26.97)% 14.91%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 543,264 $ 425,956 $ 250,224 $ 203,148 $ 198,643 $ 246,452
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 1.23%*+ 1.30% 1.35%+ 1.30% 1.13% 1.16%
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.23%* 1.30% 1.31% 1.34% 1.17% 1.16%
Net investment income to average net assets,
net of fee waivers and expense reimbursements
by and recoupments to manager 0.71%*+ 0.73% 1.21%+ 0.52% 0.36% 0.37%
Net investment income to average net assets,
before fee waivers and expense reimbursements
by manager 0.71%* 0.73% 1.25% 0.48% 0.32% 0.37%
Portfolio turnover 20% 117% 88% 109% 60% 72%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
221
<Page>
UBS PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS A
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED)~ 2004 2003~ 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.55 $ 8.88 $ 7.74 $ 8.01 $ 9.82
Net investment income (loss) 0.03@ 0.02@ 0.07@ (0.03) 0.04
Net realized and unrealized gains (losses) from
investment activities 2.96 1.65 1.07 (0.24) (1.85)
Net increase (decrease) from operations 2.99 1.67 1.14 (0.27) (1.81)
Dividends from net investment income (0.00)# -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 13.54 $ 10.55 $ 8.88 $ 7.74 $ 8.01
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 28.35% 18.81% 14.73% (3.37)% (18.43)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 14,128 $ 11,965 $ 9,810 $ 5,566 $ 8,219
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 2.08%*+ 2.13%+ 2.18% 1.87% 1.76%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 2.08%* 2.13% 2.36% 2.27% 2.06%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager 0.48%*+ 0.20%+ 0.91% (0.23)% 0.87%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager 0.48%* 0.20% 0.73% (0.63)% 0.57%*
Portfolio turnover 0.85% 128% 214% 129% 121%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
# Amount is less than $0.005 per share.
~ Investment advisory functions for this Portfolio were transferred from
Schroder Investment Management North America Inc. to Baring International
Investment Limited and Gartmore Global Partners on August 2, 2002.
Mondrian Investment Partners Ltd. replaced Baring International
Investments Ltd. on September 28, 2004. Gartmore Global partners
continues to provide a portion of the investment advisory function.
@ Calculated using the average month-end shares outstanding for the period.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period 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 period reported. The
figures do not include any applicable sales charges; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
+ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
expense cap.
(a) For the period December 11, 2000 (commencement of issuance) through July
31, 2001.
(b) For the period December 22, 2000 (commencement of issuance) through July
31, 2001.
(c) For the period December 1, 2000 (commencement of issuance) through July
31, 2001.
222
<Page>
<Table>
<Caption>
CLASS B
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED)~ 2004 2003~ 2002 2001(b)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.25 $ 8.70 $ 7.66 $ 7.98 $ 9.14
Net investment income (loss) (0.03)@ (0.09)@ (0.04)@ (0.11) 0.01
Net realized and unrealized gains (losses) from
investment activities 2.87 1.64 1.08 (0.21) (1.17)
Net increase (decrease) from operations 2.84 1.55 1.04 (0.32) (1.16)
Dividends from net investment income -- -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 13.09 $ 10.25 $ 8.70 $ 7.66 $ 7.98
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 27.71% 17.82% 13.58% (4.01)% (12.69)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 871 $ 857 $ 2,235 $ 5,426 $ 7,310
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 3.03%* 3.03%+ 2.91% 2.66% 2.53%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 3.05%* 3.03% 3.18% 3.05% 2.85%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager (0.50)%* (0.90)%+ (0.51)% (1.05)% 0.11%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager (0.52)%* (0.90)% (0.78)% (1.44)% (0.21)%*
Portfolio turnover 85% 128% 214% 129% 121%
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
CLASS C
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED)~ 2004 2003~ 2002 2001(c)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.25 $ 8.69 $ 7.66 $ 7.98 $ 9.13
Net investment income (loss) (0.02)@ (0.07)@ (0.01)@ (0.10) 0.01
Net realized and unrealized gains (losses) from
investment activities 2.88 1.63 1.04 (0.22) (1.16)
Net increase (decrease) from operations 2.86 1.56 1.03 (0.32) (1.15)
Dividends from net investment income -- -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 13.11 $ 10.25 $ 8.69 $ 7.66 $ 7.98
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 27.90% 17.95% 13.45% (4.01)% (12.60)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 4,393 $ 3,768 $ 3,752 $ 3,497 $ 4,105
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 2.86%*+ 2.91%+ 2.96% 2.67% 2.52%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 2.86%* 2.91% 3.15% 3.07% 2.92%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager (0.30)%*+ (0.64)%+ (0.17)% (1.05)% 0.16%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager (0.30)%* (0.64)% (0.36)% (1.45)% (0.24)%*
Portfolio turnover 85% 128% 214% 129% 121%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
223
<Page>
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<Table>
<Caption>
CLASS Y
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2005 ------------------------------------------ JULY 31,
(UNAUDITED)~ 2004 2003~ 2002 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.66 $ 8.94 $ 7.77 $ 8.02 $ 10.00
Net investment income (loss) 0.06@ 0.09@ 0.16@ (0.01) 0.05
Net realized and unrealized gains (losses) from
investment activities 2.99 1.63 1.01 (0.24) (2.03)
Net increase (decrease) from operations 3.05 1.72 1.17 (0.25) (1.98)
Dividends from net investment income (0.04) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 13.67 $ 10.66 $ 8.94 $ 7.77 $ 8.02
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 28.63% 19.24% 15.06% (3.12)% (19.80)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 7,813 $ 5,017 $ 1,380 $ 462 $ 549
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 1.64%* 1.71%+ 1.96% 1.67% 1.50%*
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 1.64%* 1.71% 2.01% 2.07% 1.93%*
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager 0.98%* 0.78%+ 2.03% (0.05)% 1.11%*
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager 0.98%* 0.78% 1.98% (0.45)% 0.68%*
Portfolio turnover 85% 128% 214% 129% 121%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
* Annualized.
~ Investment advisory functions for this Portfolio were transferred from
Schroder Investment Management North America Inc. to Baring International
Investment Limited and Gartmore Global Partners on August 2, 2002.
Mondrian Investment Partners Ltd. replaced Baring International
Investments Ltd. on September 28, 2004. Gartmore Global partners
continues to provide a portion of the investment advisory function.
@ Calculated using the average month-end shares outstanding for the period.
(1) Total investment return is calculated assuming a $10,000 investment on
the first day of each period 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 period reported. The
figures do not include any applicable program fees; results would be
lower if they 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 Portfolio
distributions or the redemption of Portfolio shares.
(a) For the period February 9, 2001 (commencement of issuance) through July
31, 2001.
+ The investment manager was reimbursed for expenses previously waived by
the investment manager on behalf of the Portfolio, not to exceed the
Portfolio's expense cap.
224
<Page>
<Table>
<Caption>
CLASS P
------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2005 -------------------------------------------------------------
(UNAUDITED)~ 2004 2003~ 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.64 $ 8.94 $ 7.79 $ 8.02 $ 11.96 $ 12.05
Net investment income (loss) 0.04@ 0.04@ 0.07@ 0.01 0.02 (0.01)
Net realized and unrealized gains (losses) from
investment activities 2.98 1.66 1.08 (0.24) (3.96) 0.02
Net increase (decrease) from operations 3.02 1.70 1.15 (0.23) (3.94) 0.01
Dividends from net investment income (0.01) -- -- -- -- (0.10)
NET ASSET VALUE, END OF PERIOD $ 13.65 $ 10.64 $ 8.94 $ 7.79 $ 8.02 $ 11.96
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 28.41% 19.02% 14.76% (2.87)% (32.94)% (0.02)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 166,086 $ 117,746 $ 78,462 $ 62,376 $ 65,703 $ 82,179
Expenses to average net assets, net of fee
waivers and expense reimbursements by and
recoupments to manager 2.00%* 2.00% 1.84% 1.50% 1.50% 1.50%
Expenses to average net assets, before fee
waivers and expense reimbursements by manager 2.02%* 2.08% 2.30% 2.18% 1.82% 1.75%
Net investment income (loss) to average net
assets, net of fee waivers and expense
reimbursements by and recoupments to manager 0.59%* 0.37% 0.98% 0.13% 0.24% (0.08)%
Net investment income (loss) to average net
assets, before fee waivers and expense
reimbursements by manager 0.57%* 0.29% 0.52% (0.55)% (0.08)% (0.33)%
Portfolio turnover 85% 128% 214% 129% 121% 115%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
225
<Page>
UBS PACE ADVISORS TRUST
GENERAL INFORMATION (UNAUDITED)
PROXY VOTING POLICIES AND PROCEDURES
You may obtain a description of the Portfolios' proxy voting policies,
procedures and voting records, without charge, upon request by contacting the
Portfolios directly at 1-800-647-1568, online on the Portfolios' website
www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's website
(http://www.sec.gov).
QUARTERLY FORM N-Q PORTFOLIO SCHEDULE
Each Portfolio will file its complete schedule of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters of
each fiscal year on Form N-Q. The Portfolios' Forms N-Q are available on the
SEC's website at http://www.sec.gov. The Portfolios' Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC. Information on
the operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330. Additionally, you may obtain copies of Forms N-Q from the
Portfolios upon request by calling 1-800-647-1568.
226
<Page>
[UBS GLOBAL ASSET MANAGEMENT LOGO]
(C)2005 UBS Global Asset Management (US) Inc.
UBS Global Asset Management (US) Inc. is a subsidiary of UBS AG.
All Rights Reserved
www.ubs.com
<Page>
[UBS LOGO] Presorted
Standard
U.S. Postage
PAID
UBS GLOBAL ASSET MANAGEMENT (US) INC. Smithtown, NY
51 West 52nd Street Permit 700
New York, New York 10019-6114
<Page>
[UBS GLOBAL ASSET MANAGEMENT LOGO]
UBS PACE MONEY MARKET INVESTMENTS
SEMIANNUAL REPORT
JANUARY 31, 2005
<Page>
UBS PACE MONEY MARKET INVESTMENTS
March 15, 2005
DEAR SHAREHOLDER,
We present you with the semiannual report for UBS PACE Money Market Investments
for the six months ended January 31, 2005.
For the six months ended January 31, 2005, the Portfolio returned 0.65% (before
the deduction of the maximum UBS PACE program fee; after the deduction of the
maximum program fee, the Portfolio declined 0.10%). In comparison, the 90-Day US
T-Bill Index and the Lipper Money Market Funds median returned 0.85% and 0.54%,
respectively. (Returns over various time periods are shown in the table on page
3. Please note that the returns shown do not reflect the deduction of taxes that
a shareholder would pay on Portfolio distributions.)
MARKET REVIEW
The US economy continued to expand over the reporting period. Following a 3.3%
annualized gain in the second quarter of 2004, gross domestic product (GDP) was
a robust 4.0% in the third quarter. The preliminary number for fourth quarter
GDP was 3.8%, another solid gain.
After many months of speculation, the Federal Reserve Board (the "Fed") raised
the federal funds rate (or "fed funds" rate)--the rate that banks charge one
another for funds they borrow on an overnight basis--from 1.00% to 1.25% at the
end of June 2004. During the reporting period, the Fed again raised rates in
August, September, November and December 2004, bringing the fed funds rate to
2.25%. Coinciding with the December rate hike, the Fed stated: "Output appears
to be growing at a moderate pace despite the earlier rise in energy prices, and
labor market conditions continue to improve gradually. Inflation and longer-term
inflation expectations remain well contained." This served to reassure market
participants that the Fed would stay on its course of increasing interest rates
"at a pace that is likely to be measured" to stave off inflation and remove
excess liquidity from the economy, which they did at their February 2 meeting,
raising rates to 2.50%.
ADVISOR'S COMMENTS
For the first half of the reporting period, we continued to employ a "barbell"
strategy for much of the period, meaning we purchased securities at both ends of
the maturity spectrum. Our longer-term securities, with maturities up to
thirteen months, were used to lock in higher rates. Callable agency securities
(those issued by US government agencies) in par-
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - 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
<Page>
ticular added significant yield. Shorter-term securities, with maturities of
three months or less, provided liquidity and gave us the ability to reinvest at
higher rates when the Fed increased interest rates. Toward the middle of the
reporting period, we shortened Portfolio duration and moved to more of a
"bulleted" strategy, adding three- and six-month securities as short-term yields
began to move up as the market anticipated more Fed rate increases. Throughout
the period, the Portfolio maintained a significant position in corporate and
agency floating-rate securities, which enabled the Portfolio to capture yield as
rates steadily increased.
In terms of security selection, we maintained our strategy of emphasizing
quality and liquidity. Thus, we continued to concentrate a large portion of the
Portfolio's holdings in traditional and asset-backed commercial paper, which, in
the healthier credit environment that characterized the period, offered a yield
advantage. We also held positions in other high-quality sectors, including US
government and agency securities, certificates of deposit and short-term
corporate debt. This strategy helped maintain the Portfolio's overall level of
diversification and allowed us to meet our liquidity requirements.
At this point, it appears clear that the Fed will continue to raise interest
rates in the months to come. In anticipation of the higher interest rate
environment, we have let the Portfolio's weighted average maturity drift
shorter, in order to take advantage of higher yields. Maintaining a high-quality
Portfolio continues to be of paramount importance.
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, 2005, 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.
2
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS SINCE
FOR PERIODS ENDED 1/31/05 6 MONTHS 1 YEAR 5 YEARS INCEPTION^
- ----------------------------------------------------------------------------------------
UBS PACE Money Market Investments
without maximum UBS PACE program fee* 0.65% 0.92% 2.50% 3.73%
- ----------------------------------------------------------------------------------------
UBS PACE Money Market Investments with
maximum UBS PACE program fee* -0.10 -0.59 0.97 2.18
- ----------------------------------------------------------------------------------------
90-Day U.S. T-Bill Index** 0.85 1.34 2.74 3.85
- ----------------------------------------------------------------------------------------
Lipper Money Market Funds median 0.54 0.74 2.25 3.54
- ----------------------------------------------------------------------------------------
</Table>
Average annual total returns for UBS PACE Money Market Investments, for periods
ended December 31, 2004, after deduction of the maximum UBS PACE program fee,
were as follows: 1-year period, -0.69%; 5-year period, 1.04%; since inception,
2.20%.
For UBS PACE Money Market Investments, the 7-day current yield for the period
ended January 31, 2005 was 1.78%, without maximum UBS PACE program fee. With the
maximum UBS PACE program fee, the 7-day current yield was 0.28%. The Portfolio's
yield quotation more closely reflects the current earnings of the Portfolio than
the total return quotation. Yields will fluctuate and reflect 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 of an investment will fluctuate
and the principal value of an investment could 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.
MUTUAL FUNDS ARE SOLD BY PROSPECTUS ONLY. YOU SHOULD CAREFULLY CONSIDER A FUND'S
INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES BEFORE INVESTING. THIS AND
OTHER IMPORTANT INFORMATION IS INCLUDED IN THE FUND'S PROSPECTUS, WHICH SHOULD
BE READ CAREFULLY BEFORE INVESTING. PROSPECTUSES CAN BE OBTAINED FROM YOUR
INVESTMENT PROFESSIONAL, BY CALLING UBS FUNDS AT 800-647-1568 OR BY VISITING OUR
WEB SITE AT www.ubs.com/globalam-us.
3
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs, including program fees; and (2) ongoing costs, including
management fees and other Portfolio expenses. This example is intended to help
you understand your ongoing costs (in dollars) of investing in the Portfolio and
to compare these costs with the ongoing costs of investing in other mutual
funds.
The example below is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period, August 1, 2004 to January 31,
2005.
ACTUAL EXPENSES
The first line in the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over a
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below provides information about hypothetical
account values and hypothetical expenses based on the Portfolio's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Portfolio's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs (as applicable),
such as program fees. Therefore, the second line in the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2004 JANUARY 31, 2005 8/1/04 - 1/31/05
- -----------------------------------------------------------------------------------------
Class P Actual $ 1,000.00 $ 1,006.50 $ 3.03
Hypothetical
(5% annual return before
expenses) 1,000.00 1,022.18 3.06
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratio of
0.60%, multiplied by the average account value over the period, multiplied
by 184 divided by 365 (to reflect the one-half year period).
4
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/05
- -----------------------------------------------------------------------------
Net Assets (mm) $ 182.8
Number of Securities (excluding U.S. Government Agency Obligations) 55
Weighted Average Maturity 37 days
<Caption>
PORTFOLIO COMPOSITION* 1/31/05
- -----------------------------------------------------------------------------
Commercial Paper 63.2%
Certificates of Deposit 19.4
U.S. Government Agency Obligations 14.9
Short-Term Corporate Obligations 3.6
Money Market Funds 0.9
Repurchase Agreements 0.1
Other Assets Less Liabilities (2.1)
Total 100.0%
- -----------------------------------------------------------------------------
<Caption>
TOP 10 HOLDINGS (EXCLUDING U.S. GOVERNMENT AGENCY OBLIGATIONS)* 1/31/05
- -----------------------------------------------------------------------------
Giro Multi-Funding 2.7%
American Express Centurion 2.2
Discover 2.2
First Tennessee 2.2
Washington Mutual 2.2
Wells Fargo 2.2
Northern Rock 2.2
Windmill Funding 2.2
Ranger Funding 2.2
Falcon Asset Securitization 2.2
Total 22.5%
- -----------------------------------------------------------------------------
</Table>
* Weightings represent percentages of net assets as of January 31, 2005. The
Portfolio is actively managed and its composition will vary over time.
5
<Page>
UBS PACE MONEY MARKET INVESTMENTS
Statement of Net Assets -- January 31, 2005 (Unaudited)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--14.92%
$ 4,000 Federal Farm Credit Bank 02/01/05 2.486%* $ 4,000,814
9,000 Federal Home Loan Bank 03/01/05 to 1.350 to
10/21/05 2.250 8,994,409
3,500 Federal Home Loan Bank 03/07/05 to 2.295 to
04/05/05 2.447* 3,498,881
2,000 Federal Home Loan Mortgage Corp. 08/15/05 1.500@ 1,991,098
8,800 Federal National Mortgage Association 03/29/05 to 1.400 to
09/30/05 2.300 8,800,000
Total U.S. Government Agency Obligations (cost--$27,285,202) 27,285,202
- ------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--19.41%
NON-U.S.--6.83%
2,000 BNP Paribas 02/23/05 2.265* 1,999,375
2,000 BNP Paribas 03/22/05 2.530 2,000,000
1,500 Fortis Bank NV 02/04/05 2.315* 1,499,962
2,000 Royal Bank of Scotland PLC 10/03/05 2.375 1,999,669
2,000 Societe Generale 02/10/05 2.350* 1,999,786
3,000 UniCredito Italiano SpA 03/24/05 2.465* 2,999,610
12,498,402
U.S.--12.58%
4,000 American Express Centurion Bank 02/16/05 2.410 4,000,000
4,000 Discover Bank 02/15/05 2.390 4,000,000
4,000 First Tennessee Bank N.A. (Memphis) 02/03/05 to 2.310 to
02/15/05 2.380 4,000,000
3,000 Harris Trust & Savings Bank 02/01/05 2.300* 3,000,000
4,000 Washington Mutual Bank 02/17/05 2.380 4,000,000
4,000 Wells Fargo Bank N.A. 02/23/05 2.500 4,000,000
23,000,000
Total Certificates of Deposit (cost--$35,498,402) 35,498,402
COMMERCIAL PAPER@--63.15%
ASSET BACKED-AUTO & TRUCK--2.18%
4,000 New Center Asset Trust 02/28/05 2.390 3,992,830
ASSET BACKED-BANKING--2.19%
4,000 Atlantis One Funding 02/17/05 2.340 3,995,840
</Table>
6
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@--(CONTINUED)
ASSET BACKED-MISCELLANEOUS--19.94%
$ 4,000 Amsterdam Funding Corp. 02/15/05 2.410% $ 3,996,251
2,000 Barton Capital Corp. 02/04/05 2.280 1,999,620
4,000 Falcon Asset Securitization Corp. 02/15/05 2.380 3,996,298
5,000 Giro Multi-Funding Corp. 02/22/05 2.450 4,992,854
4,000 Old Line Funding Corp. 02/22/05 2.360 3,994,493
4,000 Ranger Funding Co. LLC 02/10/05 2.350 3,997,650
1,500 Triple A One Funding 02/11/05 2.350 1,499,021
4,000 Variable Funding Capital Corp. 02/28/05 2.420 3,992,740
4,000 Windmill Funding Corp. 02/08/05 2.330 3,998,188
4,000 Yorktown Capital LLC 02/24/05 2.470 3,993,688
36,460,803
ASSET BACKED-SECURITIES--13.08%
3,000 Beta Finance, Inc.** 03/14/05 2.430 2,991,697
4,000 CC (USA), Inc.** 04/11/05 2.560 3,980,373
3,000 Dorada Finance, Inc.** 02/01/05 to 2.140 to
02/11/05 2.250 2,999,375
4,000 Galaxy Funding, Inc. 04/04/05 2.580 3,982,227
02/15/05 to 2.380 to
4,000 Giro Funding US Corp. 02/28/05 2.500 3,994,399
2,000 Links Finance LLC** 04/04/05 2.480 1,991,458
4,000 Scaldis Capital LLC 03/29/05 2.440 3,984,818
23,924,347
BANKING-NON-U.S.--12.65%
2,000 Bank of Ireland 03/10/05 2.450 1,994,964
3,500 Banque et Caisse d'Epargne de L'Etat 02/14/05 2.390 3,496,979
3,660 Caisse Nationale des Caisses d'Epargne
et de Prevoyance 03/21/05 2.500 3,647,800
4,000 Depfa Bank PLC 03/02/05 2.380 3,992,331
2,000 DNB NOR Bank ASA 02/08/05 2.340 1,999,090
4,000 Nationwide Building Society 02/22/05 2.370 3,994,470
4,000 Northern Rock PLC 02/02/05 2.145 3,999,762
23,125,396
BANKING-U.S.--6.01%
3,000 ING (US) Funding LLC 02/25/05 2.370 2,995,260
3,000 KFW International Finance, Inc. 02/04/05 2.270 2,999,432
</Table>
7
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@--(CONCLUDED)
BANKING-U.S.--(CONCLUDED)
$ 3,000 National Australia Funding
(Delaware), Inc. 02/22/05 2.370% $ 2,995,853
2,000 San Paolo IMI U.S. Financial Co. 02/03/05 2.240 1,999,751
10,990,296
BROKERAGE--3.28%
4,000 Goldman Sachs Group, Inc. 02/22/05 2.370 3,994,470
2,000 Greenwich Capital Holdings, Inc. 02/28/05 2.504* 2,000,000
5,994,470
FINANCE-NONCAPTIVE DIVERSIFIED--1.09%
2,000 General Electric Capital Corp. 05/09/05 2.380 1,987,174
PHARMACEUTICALS--2.73%
4,000 GlaxoSmithKline Finance PLC 03/03/05 2.390 3,992,034
1,000 Novartis Finance Corp. 02/07/05 2.500 999,583
4,991,617
Total Commercial Paper (cost--$115,462,773) 115,462,773
- ------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE OBLIGATIONS--3.56%
BANKING-U.S.--0.55%
1,000 KFW International Finance, Inc. 04/18/05 4.250 1,005,730
FINANCE-CAPTIVE AUTOMOTIVE--1.10%
2,000 Toyota Motor Credit Corp. 02/01/05 2.300* 2,000,000
FINANCE-NONCAPTIVE CONSUMER--0.82%
1,500 HSBC Finance Corp. 02/07/05 2.360* 1,500,000
FINANCE-NONCAPTIVE DIVERSIFIED--1.09%
2,000 General Electric Capital Corp. 02/09/05 2.520* 2,000,000
Total Short-Term Corporate Obligations (cost--$6,505,730) 6,505,730
- ------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--0.14%
255 Repurchase Agreement dated 01/31/05
with State Street Bank & Trust Co.,
collateralized by $251,726
U.S. Treasury Notes,
5.750% due 11/15/05;
(value--$260,222); proceeds:
$255,016 (cost--$255,000) 02/01/05 2.280 255,000
</Table>
8
<Page>
<Table>
<Caption>
NUMBER OF
SHARES INTEREST
(000) RATES VALUE
- ------------------------------------------------------------------------------------------
MONEY MARKET FUNDS+--0.90%
1,107 AIM Liquid Assets Portfolio 2.273% $ 1,107,442
527 BlackRock Provident Institutional TempFund 2.217 527,087
Total Money Market Funds (cost--$1,634,529) 1,634,529
- ------------------------------------------------------------------------------------------
Total Investments (cost--$186,641,636 which approximates
cost for federal income tax purposes)--102.08% 186,641,636
Liabilities in excess of other assets--(2.08)% (3,794,744)
Net Assets (applicable to 182,847,136 shares of beneficial
interest outstanding equivalent to $1.00 per share)--100.00% $ 182,846,892
- ------------------------------------------------------------------------------------------
</Table>
* Variable rate securities--maturity dates reflect earlier of reset dates or
stated maturity dates. The interest rates shown are the current rates as of
January 31, 2005, and reset periodically.
** Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 6.54% of net assets as of
January 31, 2005, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
@ Interest rates shown are the discount rates at date of purchase.
+ Interest rates shown reflect yield at January 31, 2005.
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- --------------------------------------------------------------------------------
United States 80.9%
United Kingdom 5.3
France 5.2
Ireland 3.2
Luxembourg 1.9
Italy 1.6
Norway 1.1
Belgium 0.8
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
Weighted average maturity -- 37 days
See accompanying notes to financial statements
9
<Page>
Statement of Operations
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED
JANUARY 31, 2005
(UNAUDITED)
- ------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 1,700,951
EXPENSES:
Transfer agency and related services fees 364,421
Investment management and administration fees 314,373
Reports and notices to shareholders 82,200
Professional fees 24,747
Federal and state registration fees 14,539
Custody and accounting 8,982
Trustees' fees 6,790
Other expenses 9,553
825,605
Less: Fee waivers and expense reimbursements by investment manager and
administrator (286,685)
Net expenses 538,920
Net investment income 1,162,031
Net realized loss from investment activities (83)
Net increase in net assets resulting from operations $ 1,161,948
</Table>
Statement of Changes in Net Assets
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, 2005 YEAR ENDED
(UNAUDITED) JULY 31, 2004
- ------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,162,031 $ 729,903
Net realized gain (loss) from investment activities (83) 31
Net increase in net assets resulting from operations 1,161,948 729,934
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,162,031) (729,903)
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net increase in net assets from beneficial interest
transactions 16,780,357 42,151,935
Net increase in net assets 16,780,274 42,151,966
NET ASSETS:
Beginning of period 166,066,618 123,914,652
End of period $ 182,846,892 $ 166,066,618
Accumulated undistributed net investment income $ -- $ --
</Table>
See accompanying notes to financial statements
10
<Page>
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.
In the normal course of business the Portfolio may enter into contracts that
contain a variety of representations or that provide indemnification for certain
liabilities. The Portfolio's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the
Portfolio that have not yet occurred. However, the Portfolio has not had prior
claims or losses pursuant to these contracts and expects the risk of loss to be
remote.
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires 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. Premiums are amortized
and discounts are accreted 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
11
<Page>
repurchase, either through its regular custodian or through a special
"tri-party" custodian or sub-custodian that maintains a separate account for
both the Portfolio and its counterparty. The underlying collateral is valued
daily on a mark-to-market basis to ensure that the value, including accrued
interest, is at least equal to the repurchase price. In the event of default of
the obligation to repurchase, the Portfolio generally has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation.
Repurchase agreements involving obligations other than U.S. government
securities (such as commercial paper, corporate bonds and mortgage loans) may be
subject to special risks and may not have the benefit of certain protections in
the event of 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"). 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.
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 U.S. generally accepted accounting principles. These "book/tax" differences
are either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.
CONCENTRATION OF RISK
The ability of the issuers of debt securities held by the Portfolio to meet
their obligations may be affected by economic developments, including those
particular to a specific industry, country or region.
INVESTMENT 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, 2005, the
Portfolio owed UBS Global AM $55,872 for investment management and
administration fees.
12
<Page>
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, 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, 2005, UBS Global AM agreed to waive $286,685 of its investment
management and administration fees. At January 31, 2005, UBS Global AM owed the
Portfolio $54,445 for fee waivers and expense reimbursements.
At January 31, 2005, 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 2005 2006 2007 2008
- ---------------------------------------------------------------------------
$ 2,354,873 $ 854,351 $ 703,657 $ 510,180 $ 286,685
</Table>
TRANSFER AGENCY AND RELATED SERVICES FEES
UBS Financial Services Inc. provides transfer agency related services to the
Portfolio pursuant to a delegation of authority from PFPC Inc. ("PFPC"), the
Portfolio's transfer agent, and was compensated for these services by PFPC, not
the Portfolio.
For the six months ended January 31, 2005, UBS Financial Services Inc. received
from PFPC, not the Portfolio, $175,057 of the total transfer agency and related
services fees paid by the Portfolio to PFPC.
OTHER LIABILITIES AND COMPONENTS OF NET ASSETS
At January 31, 2005, payable for investments purchased, payable for shares of
beneficial interest repurchased, dividends payable and other accrued expenses
(excluding investment management and administration fees) were $3,000,000,
$1,452,169, $127,524 and $260,500, respectively.
At January 31, 2005, the Portfolio had the following components of net assets:
paid in capital of $182,847,136 and an accumulated net realized loss of $244 for
total net assets of $182,846,892.
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 of its net investment income, realized capital gains and certain other
amounts, if any, the Portfolio intends not to be subject to federal excise tax.
13
<Page>
The tax character of distributions paid to shareholders by the Portfolio during
the six months ended January 31, 2005 and the fiscal year ended July 31, 2004
was ordinary income.
The components of accumulated earnings (deficit) on a tax basis for the current
fiscal year will be determined after the Portfolio's fiscal year ending July 31,
2005.
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, 2005 JULY 31, 2004
- --------------------------------------------------------------------------------
Shares sold 98,801,521 186,974,819
Shares repurchased (83,084,842) (145,496,890)
Dividends reinvested 1,063,678 674,006
Net increase in shares outstanding 16,780,357 42,151,935
</Table>
14
<Page>
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, 2005 ------------------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.006 0.005 0.009 0.021 0.053 0.054
Dividends from net investment income (0.006) (0.005) (0.009) (0.021) (0.053) (0.054)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL INVESTMENT RETURN(1) 0.65% 0.51% 0.96% 2.10% 5.44% 5.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 182,847 $ 166,067 $ 123,915 $ 112,001 $ 76,657 $ 65,521
Expenses to average net assets, net
of fee waivers and expense
reimbursements by manager 0.60%* 0.60% 0.57% 0.50% 0.50% 0.50%
Expenses to average net assets,
before fee waivers and expense
reimbursements by manager 0.92%* 0.96% 1.13% 1.43% 1.00% 0.95%
Net investment income to average net
assets, net of fee waivers and
expense reimbursements by manager 1.29%* 0.51% 0.94% 2.03% 5.26% 5.46%
Net investment income to average net
assets, before fee waivers and
expense reimbursements by manager 0.97%* 0.15% 0.38% 1.10% 4.76% 5.01%
</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 the 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.
15
<Page>
UBS PACE MONEY MARKET INVESTMENTS
Supplemental Information (unaudited)
QUARTERLY FORM N-Q PORTFOLIO SCHEDULE
The Portfolio will file its complete schedule of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters of
each fiscal year on Form N-Q. The Portfolio's Forms N-Q are available on the
SEC's website at http://www.sec.gov. The Portfolio's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, D.C. Information on
the operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330. Additionally, you may obtain copies of Forms N-Q from the
Portfolio upon request by calling 1-800-647-1568.
16
<Page>
TRUSTEES
Richard Q. Armstrong Meyer Feldberg
CHAIRMAN
Margo N. Alexander Carl W. Schafer
David J. Beaubien William D. White
Richard R. Burt
PRINCIPAL OFFICERS
Joseph A. Varnas W. Douglas Beck
PRESIDENT VICE PRESIDENT
Mark F. Kemper Michael H. Markowitz
VICE PRESIDENT AND SECRETARY VICE PRESIDENT
Thomas Disbrow
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) 2005 UBS Global Asset Management (US) Inc. All rights reserved.
17
<Page>
[UBS LOGO] Presorted
Standard
US Postage
PAID
UBS GLOBAL ASSET MANAGEMENT (US) INC. Smithtown, NY
51 West 52nd Street Permit 700
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. SCHEDULE OF INVESTMENTS.
Included as part of the report to shareholders filed under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant's Board has established a Nominating and Corporate Governance
Committee. The Nominating and Corporate Governance Committee will consider
nominees recommended by shareholders if a vacancy occurs among those board
members who are not "interested persons" as defined in Section 2(a)(19) of the
Investment Company Act of 1940, as amended. In order to recommend a nominee, a
shareholder should send a letter to the chairperson of the Nominating and
Corporate Governance Committee, Professor Meyer Feldberg, care of the Secretary
of the registrant at UBS Global Asset Management (US) Inc., 51 West 52nd Street,
New York, New York 10019-6114, and indicate on the envelope "Nominating and
Corporate Governance Committee." The shareholder's letter should state the
<Page>
nominee's name and should include the nominee's resume or curriculum vitae, and
must be accompanied by a written consent of the individual to stand for election
if nominated for the Board and to serve if elected by shareholders.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940, as amended) are effective based on their evaluation of
these controls and procedures as of a date within 90 days of the
filing date of this document.
(b) The registrant's principal executive officer and principal financial
officer are aware of no changes in the registrant's internal control
over financial reporting that occurred during the registrant's most
recent fiscal half-year that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
(a) (1) Code of Ethics - Form N-CSR disclosure requirement not applicable
to this filing of a semi-annual report.
(a) (2) Certifications of principal executive officer and principal
financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 is attached hereto as Exhibit EX-99.CERT.
(a) (3) Written solicitation to purchase securities under Rule 23c-1 under
the Investment Company Act of 1940 sent or given during the period
covered by the report by or on behalf of the registrant to 10 or more
persons - not applicable to the registrant.
(b) Certifications of principal executive officer and principal financial
officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is
attached hereto as Exhibit EX-99.906CERT.
<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, 2005
-------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Joseph A. Varnas
--------------------
Joseph A. Varnas
President
Date: April 8, 2005
-------------
By: /s/ Thomas Disbrow
------------------
Thomas Disbrow
Treasurer
Date: April 8, 2005
-------------