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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
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UBS PACE Select Advisors Trust
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(Exact name of registrant as specified in charter)
51 West 52nd Street, New York, New York 10019-6114
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(Address of principal executive offices) (Zip code)
Mark F. Kemper, Esq.
UBS Global Asset Management
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, 2006
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ITEM 1. REPORTS TO STOCKHOLDERS.
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[UBS GLOBAL ASSET MANAGEMENT LOGO]
UBS PACE(SM)
GOING THE DISTANCE TO MEET YOUR FINANCIAL NEEDS
SEMIANNUAL REPORT
JANUARY 31, 2006
<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 17
UBS PACE Municipal Fixed Income Investments 21
UBS PACE Global Fixed Income Investments 25
UBS PACE Large Co Value Equity Investments 30
UBS PACE Large Co Growth Equity Investments 35
UBS PACE Small/Medium Co Value Equity Investments 40
UBS PACE Small/Medium Co Growth Equity Investments 46
UBS PACE International Equity Investments 52
UBS PACE International Emerging Markets Equity Investments 57
Financial Statements 154
Proxy Voting Policies, Procedures and Record 238
Quarterly Form N-Q Portfolio Schedule 238
Shareholder Meeting Results 238
Board Approval of Sub-Advisory Agreements 239
</Table>
UBS PACE SELECT ADVISORS TRUST OFFERS FIVE CLASSES OF SHARES REPRESENTING
INTERESTS IN SEVERAL 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 READ THE PROSPECTUS RELATED TO
THE PORTFOLIO OR CLASS OF SHARES YOU ARE INTERESTED IN CAREFULLY BEFORE YOU
INVEST.
1
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UBS PACE SELECT ADVISORS TRUST
INTRODUCTION
March 15, 2006
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 that
affected Portfolio performance during the six months ended January 31, 2006.
Please note that the opinions of the advisors do not necessarily represent those
of UBS Global Asset Management (US) Inc.
While there was no shortage of obstacles, the U.S. economy continued to expand
at a solid pace for much of the reporting period. However, toward the end of
2005, it appeared that the economy took a step backwards. After a 3.3% advance
in the second quarter of 2005, gross domestic product (GDP) was a strong 4.1% in
the third quarter. The Commerce Department's preliminary estimate for fourth
quarter GDP was 1.6%, somewhat lower than expected. This was largely due to
tepid consumer spending and lower federal government spending.
With generally strong corporate profits, the US stock market generated positive
returns during the reporting period. Despite some investors' preoccupation with
surging energy prices and rising short-term interest rates. During the six-month
period ended January 31, 2006, the S&P 500 Index gained 4.68%. Returns were
better overseas, as the MSCI EAFE Index rose 18.42%. Solid corporate profits and
expectations for improving economic conditions, among other things, are believed
to have fueled the international stock markets.
The global bond markets generated a modest gain over the reporting period. Since
initially raising interest rates on June 30, 2004, the Federal Reserve Board
("Fed") has raised its target for the federal funds rate in 0.25% increments a
total of 14 times through January 2006. All told, the Fed's rate hikes brought
the federal funds rate from 1.00% to 4.50%, the longest tightening cycle since
the 1970s. However, there have been indications that the Fed may be nearing the
end of its measured rate hikes sooner rather than later. Looking at the
six-month reporting period, the overall US bond market, as measured by the
Lehman Brothers Aggregate Bond Index, returned 0.84%. Elsewhere, the J.P. Morgan
Global Government Bond Index (hedged) returned 1.16%.
Looking ahead, there are a number of question marks regarding the economy and
the financial markets. Will GDP rebound after the setback in the fourth quarter?
How will the new Fed Chairman, Ben Bernanke, react to the incoming economic
data? What's in store for corporate profits as the year progresses? Given these
uncertainties, we continue to believe that investors should maintain a
diversified portfolio and a long-term perspective. Your financial advisor can be
instrumental in helping you keep 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.
As always, 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/ W. Douglas Beck
W. DOUGLAS BECK, CFA
PRESIDENT
UBS PACE Select Advisors Trust
EXECUTIVE DIRECTOR
UBS Global Asset Management (US) Inc.
The Standard and Poor's 500 Composite Stock Price Index ('S&P 500 Index') is
composed of 500 common stocks that are selected by Standard and Poor's, a
division of The McGraw-Hill Companies, Inc. It is a widely followed gauge of US
stock market performance. The MSCI Europe, Australasia, and Far East Index
('MSCI EAFE Index') is a widely followed gauge of non-US stock market
performance. The Lehman Brothers Aggregate Bond Index is made up of the Lehman
Brothers Government/Corporate Bond Index, Mortgage-Backed Securities Index, and
Asset-Backed Securities Index, including securities that are of investment-grade
quality or better, have at least one year to maturity, and have an outstanding
par value of at least $100 million. The J.P. Morgan Global Government Bond Index
is a capitalization-weighted index of the total return of the global government
bond markets (including the US) including the effect of currency. Countries and
issues are included in the index based on size and liquidity.
This report is intended to assist investors in understanding how the Portfolios
performed during the six months ended January 31, 2006. The views expressed in
the Advisors' Comments sections are as of the end of the reporting period,
reflect performance results gross of fees and expenses, and are those of the
investment advisors. Advisors' comments on portfolios that have more than one
manager are reflective of their portion of the portfolio only. The views and
opinions in this report were current as of March 15, 2006. 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 securities,
sectors and the markets at any time. As a result, the views expressed should not
be relied upon as a forecast of a Portfolio's future investment intent.
3
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UBS PACE SELECT ADVISORS TRUST
UBS PACE MONEY MARKET INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio returned 1.70% (before
the deduction of the maximum UBS PACE program fee; after the deduction of the
maximum program fee, the Portfolio returned 0.94%). In comparison, the 90-Day US
T-Bill Index and the Lipper Money Market Funds median returned 1.80% and 1.59%,
respectively. (Returns over various time periods are shown in the "Performance
at a Glance" 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
Although the US economy faced a number of challenges during the reporting
period, including high oil prices, rising short-term interest rates, continuing
geopolitical challenges and a devastating hurricane season, it ultimately proved
to be quite resilient. Gross domestic product (GDP) growth rates for the first
three quarters of the year averaged more than 3.7%, although initial estimates
for the fourth quarter came in at 1.1%, which is well below the current trend.
As expected, the Federal Reserve Board (the "Fed") continued to raise interest
rates in an attempt to temper growth and ward off a potential increase in
inflation. After nine rate hikes from June 2004 through July 2005, the Fed
increased the federal funds rate (or "fed funds rate," the rate that banks
charge one another for funds they borrow on an overnight basis) five additional
times during the six-month reporting period. In total, the Fed's 14 rate hikes
have driven the federal funds rate from 1.00% to 4.50%. Also of note, Ben
Bernanke replaced Alan Greenspan as Chairman of the Fed when his term expired in
February 2006. Mr. Bernanke has pledged continuity with the Greenspan era, and
we believe the market generally regards this appointment as positive news.
ADVISOR'S COMMENTS
Throughout the period, we emphasized securities with maturities in the two-week
to six-month range. As the period progressed, however, we moved additional
assets into securities with one- to four-week maturities in an attempt to
capitalize on yield opportunities. We also employed a "bulleted" strategy during
the period, in which we targeted securities with maturities shortly before Fed
meetings. This enabled us to take advantage of changes in market yields as
interest rates rose over the reporting period. A bulleted strategy generally
helps performance in a rising rate environment such as this was. From a
weighted-average-maturity perspective, we remained within a fairly narrow range
through the period, typically between 40 and 44 days. This strategy was
beneficial to performance during the reporting period.
We maintained our strategy of emphasizing quality, liquidity and yield
throughout the past six months. With that said, there were no major shifts in
the Portfolio's composition over the period. We did reduce our exposure to
government agency obligations and increased our allocation to corporate floating
rate securities, which appeared attractively valued in the final months of 2005.
Commercial paper remained a substantial part of the Portfolio--more than 60% of
the Portfolio's net assets at period end--due to the yield advantages the sector
offered. This positioning helped maintain the Portfolio's overall level of
diversification and allowed us to meet our liquidity requirements while seeking
to generate incremental yield.
[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
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PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- -----------------------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments without maximum UBS PACE program fee* 1.70% 2.87% 1.86% 3.57% 3.65%
UBS PACE Money Market Investments with maximum UBS PACE program fee* 0.94 1.33 0.35 2.03 2.10
90-Day U.S. T-Bill Index** 1.80 3.16 2.18 3.71 3.78
Lipper Money Market Funds median 1.59 2.66 1.64 3.38 3.46
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum UBS PACE program fee, were as follows: 1-year period,
1.16%; 5-year period, 0.38%; 10-year period, 2.04%; since inception, 2.10%.
For UBS PACE Money Market Investments, the 7-day current yield for the period
ended January 31, 2006 was 3.85% (without maximum UBS PACE program fee and after
fee waivers/expense reimbursements; the yield was 3.46% before fee
waivers/expense reimbursements). With the maximum UBS PACE program fee, the
7-day current yield was 2.35% after fee waivers/expense reimbursements; the
yield was 1.96% before fee waivers/expense reimbursements. 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 U.S. T-BILLS ARE PROMISSORY NOTES ISSUED BY THE U.S. 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. PERFORMANCE RESULTS ASSUME REINVESTMENT OF ALL DIVIDENDS AND CAPITAL
GAINS DISTRIBUTIONS AT NET ASSET VALUE ON THE PAYABLE DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED.
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
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UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1) ongoing
program fees; and (2) ongoing Portfolio 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, 2005 to January 31,
2006.
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 Portfolio costs only and do not reflect any program fees. Therefore, the
second line in the table is useful in comparing ongoing Portfolio costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these program fees were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- ---------------------------------------------------------------------------------------------------------------------
Class P Actual $ 1,000.00 $ 1,017.00 $ 3.05
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
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PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- ---------------------------------------------------------------------------------------------------
Net Assets (mm) $ 264.9
Number of Securities (excluding U.S. Government Agency Obligations) 64
Weighted Average Maturity 40 days
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- ---------------------------------------------------------------------------------------------------
Commercial Paper 62.7%
Certificates of Deposit 16.6
Short-Term Corporate Obligations 11.5
U.S. Government Agency Obligations 6.4
Bank Note 2.3
Money Market Funds 1.1
Repurchase Agreement 0.0**
Other Assets Less Liabilities (0.6)
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Total 100.0%
- ---------------------------------------------------------------------------------------------------
<Caption>
TOP 10 SECURITIES (EXCLUDING U.S. GOVERNMENT AGENCY OBLIGATIONS)* 1/31/06
- ---------------------------------------------------------------------------------------------------
Scaldis Capital 2.6%
Allied Irish Banks 2.4
HSBC Finance 2.3
General Electric Capital 2.3
Bank of America 2.3
SunTrust Bank 2.3
Washington Mutual 2.3
Bryant Park Funding 2.3
Kitty Hawk Funding 2.3
Chariot Funding 2.3
- ---------------------------------------------------------------------------------------------------
Total 23.4%
- ---------------------------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. 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, 2006.
7
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UBS PACE SELECT ADVISORS TRUST
UBS PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 0.95% (before the deduction of the maximum UBS PACE program fee; 0.19%
after the deduction of the maximum program fee), compared with the Lehman
Brothers Mortgage-Backed Securities Index return of 1.28% and the 0.65% return
of the Lipper Intermediate US Government Funds median. (Returns for all share
classes over various time periods are shown in the "Performance at a Glance"
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
Bonds gained ground during the period, leaning against the headwinds of Federal
Reserve Board (the "Fed") tightening and concerns that higher energy prices
would fuel inflation. The benchmark ten-year Treasury yield ended the period at
4.53%, 0.25% higher than at the start of the six-month reporting period.
The bond markets were dominated during the period by speculation about the pace
and duration of the Fed's tightening cycle. Market expectations of continued Fed
tightening drove short-term rates higher and helped produce a significant
flattening of the yield curve. 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, increasing it from 3.25% to
4.50% through the end of the period. A drop in energy prices, which had soared
after the Gulf Coast hurricanes, calmed fears about inflation. Signs also
emerged that higher mortgage rates and lofty valuations could finally be
pinching affordability in surging property markets, as growth in new home prices
decelerated and inventories of new and existing homes rose.
ADVISOR'S COMMENTS
The mortgage market was unable to withstand the pressures of the dramatic
flattening of the Treasury yield curve during most of the six-month period. The
theme of the period was price deterioration due to lack of demand, which was
weak as many mortgage investors are reliant on short-term rates to finance their
mortgage portfolios. The spread between short- and long-term rates collapsed,
leaving mortgage returns distinctly less attractive for long-term investment
purposes. Additionally, for the first time in a decade, Federal National
Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation
(Freddie Mac) were net (and outright) sellers of mortgages. This occurred as
they sold mortgage-backed securities (MBS) that they held to meet the new higher
capital surplus requirements set by their regulator, amidst a difficult two
years of accounting scandals. Their lack of support for MBS was a major
contributor to spread widening during the year. Their portfolios shrunk and
headlines abounded, but we believe that the credit quality of the MBS that they
do guarantee remains superb--high-quality loans backed by residential real
estate. The results were that, during the last two months of the period, MBS
outperformed due to lower volatility, slower MBS issuance, and a return of
agency and bank buying.
In this environment, the Portfolio's duration was held above that of our
reference Index, which was a negative as interest rates rose. Coupon selection
helped performance, as technical supply and demand factors created pockets of
rich and cheap issues. An emphasis on home equity asset-backed securities also
contributed to performance, as their yield advantage to Treasuries and stable
structures attracted investors. An underweight to Government National Mortgage
Association (Ginnie Mae) securities versus FNMA (Fannie Mae) and FHLMC (Freddie
Mac) was a negative, as Ginnie Mae reached historic highs amidst supply
shortages. An emphasis on 30-year MBS relative to 15-year MBS was slightly
negative, as the 15-year sector benefited from negative net issuance. In
addition, an allocation to asset-backed positions enhanced results. This sector
outperformed other core fixed income sectors as global demand for structured
AAA-rated assets kept these securities attractive to investors.
[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 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- -----------------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 0.83% 1.87% 4.54% N/A 4.54%
Maximum Sales Charge Class B** 0.44 1.08 3.73 N/A 4.17
or UBS PACE Program Fee Class C*** 0.56 1.32 4.00 N/A 4.62
Class Y**** 1.04 2.22 N/A N/A 4.87
Class P***** 0.95 2.02 4.78 5.77% 6.07
After Deducting Class A* -3.69 -2.75 3.58 N/A 3.58
Maximum Sales Charge Class B** -4.44 -3.76 3.39 N/A 4.00
or UBS PACE Program Fee Class C*** -0.17 0.59 4.00 N/A 4.62
Class P***** 0.19 0.49 3.22 4.19 4.49
Lehman Brothers Mortgage-Backed Securities Index 1.28 2.40 5.18 6.13 6.44
Lipper Intermediate US Government Funds median 0.65 1.27 4.31 5.15 5.54
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -2.65%; since inception, 3.57%; Class B--1-year period,
- -3.74%; 5-year period, 3.81%; since inception, 4.02%; Class C--1-year period,
0.62%; 5-year period, 4.42%; since inception, 4.64%; Class Y--1-year period,
2.25%; since inception, 4.89%; Class P--1-year period, 0.60%; 5-year period,
3.64%; 10-year period, 4.22%; since inception, 4.50%.
^ 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
24, 1995, WHICH IS 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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES
OR ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 GAINS
DISTRIBUTIONS AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking current income
who are able to withstand short-term fluctuations in the fixed income markets in
return for potentially higher returns over the long term. The yield and value of
the Portfolio change every day and can be affected by changes in interest rates,
general market conditions and other political, social and economic developments,
as well as specific matters relating to the issuers in which the Portfolio
invests. It is important to note that an investment in the Portfolio is only one
component of a balanced investment plan.
9
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- -------------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,008.30 $ 5.52
Hypothetical (5% annual return before expenses) 1,000.00 1,019.71 5.55
Class B Actual 1,000.00 1,004.40 9.35
Hypothetical (5% annual return before expenses) 1,000.00 1,015.88 9.40
Class C Actual 1,000.00 1,005.60 8.19
Hypothetical (5% annual return before expenses) 1,000.00 1,017.04 8.24
Class Y Actual 1,000.00 1,010.40 3.95
Hypothetical (5% annual return before expenses) 1,000.00 1,021.27 3.97
Class P Actual 1,000.00 1,009.50 4.41
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:
1.09%, Class B: 1.85%, Class C: 1.62%, Class Y: 0.78%, 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 1/31/06
- ---------------------------------------------------------------------------------
Weighted Average Duration 3.8 yrs.
Weighted Average Maturity 4.5 yrs.
Average Coupon 4.5%
Average Quality* AAA
Net Assets (mm) $ 525.7
Number of Securities 384
<Caption>
PORTFOLIO COMPOSITION** 1/31/06
- ---------------------------------------------------------------------------------
Bonds 122.7%
Options, Futures and Swaps 0.0***
Investments Sold Short (4.0)
Cash Equivalents and Other Assets Less Liabilities (18.7)
- ---------------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------------
<Caption>
ASSET ALLOCATION** 1/31/06
- ---------------------------------------------------------------------------------
U.S. Government Agency Mortgage Pass-Through Certificates 115.5%
Collateralized Mortgage Obligations 4.3
Asset-Backed Securities 2.7
Stripped Mortgage-Backed Securities 0.2
Options, Futures and Swaps 0.0***
U.S. Government Agency Mortgage Pass-Through Certificate Sold Short (4.0)
Cash Equivalents and Other Assets Less Liabilities (18.7)
- ---------------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------------
</Table>
* Credit quality rating shown is based on the ratings assigned to portfolio
holdings by Standard & Poor's Ratings Group, an independent rating agency.
** Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The portfolio is actively managed and its composition
will vary over time.
*** Weightings represent less than 0.05% of the Portfolio's net assets as of
January 31, 2006.
11
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 0.86% (before the deduction of the maximum UBS PACE program fee; 0.10%
after the deduction of the maximum program fee), compared with the Lehman
Brothers Intermediate Government/Credit Index (the "Index") return of 0.81% and
the 0.72% return of the Lipper Short-Intermediate Investment Grade Debt Funds
median. (Returns for all share classes over various time periods are shown in
the "Performance at a Glance" table on page 14. 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, the US economy appeared to move firmly back on
track. Effects of the devastating 2005 hurricane season proved to be mostly
localized, and long-term interest rates remained relatively unchanged. Investors
grew increasingly confident that the Federal Reserve Board (the "Fed") was
nearing the end of its campaign of normalizing interest rates, particularly in
light of a recent moderation in measured inflation.
While a stable macroeconomic environment and increased foreign demand for US
Treasuries helped to keep long-term yields in a fairly narrow range, a more
important factor in lower interest rate volatility was the continued discipline
on the part of the Fed. Most recently, the Fed met on January 31, 2006 and voted
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), by 25 basis points (a
basis point is 1/100 of a percentage point) to 4.50%. This marked the 14th
consecutive meeting in which the Fed tightened the rate by 25 basis points, for
a cumulative tightening of 3.50%. The Fed's accompanying statement was little
changed from that of December 13, 2005. It made note of the "solid" economic
expansion and "contained" longer-term inflation expectations. However, in
reference to potential further actions, the Fed stated that further policy
firming "may" be needed, whereas previously such action was characterized as
"likely." The next Fed meeting will be held on March 27 and 28, 2006.
Despite predictions of a recession in 2006, the economic data appears to show
that the US economy lacks meaningful deterioration. In December, the
unemployment rate dropped below 5%, pointing toward a strong labor market. While
housing statistics have softened, they remain high by historical standards, and
there appears to have been little effect thus far on consumer consumption
patterns.
ADVISOR'S COMMENTS
We positioned the Portfolio with a barbell yield curve strategy during the
reporting period, with an overweight in the short and long ends of the curve and
an underweight in intermediate maturities. This bias benefited performance, as
yields on 2-year Treasuries increased 48 basis points (bps) over the first half
of the period while 10-year yields rose by 21 basis points.
The Portfolio's duration underweight was a positive contributor to performance
as yields in the intermediate portion of the curve rose during the period. The
yield on the 10-year Treasury rose 21 basis points from 4.31% in August 2005 to
4.52% in January 2006.
The Portfolio maintained an allocation to mortgages during the period, which
benefited performance as the sector performed well. The allocation was
concentrated in 15-year fixed rate pass through mortgages. We have pared our
mortgage position, given the recent rally in the sector, and expect to continue
to reduce this allocation. Our reasoning behind this strategy is that valuations
are not justified given the very low levels of volatility and the uncertainty
surrounding the Fed. Consequently, we maintain an allocation to floating rate
securities and collateralized mortgage obligations (CMOs).
During the period, the allocation to commercial mortgage-backed securities
(CMBS) detracted from relative performance as the sector's returns lagged.
However, we maintain the allocation to CMBS as the sector continues to offer the
potential for value relative to other sectors.
[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>
The Portfolio maintained an underweight position in the corporate sector
throughout the period. This benefited performance, as the sector's performance
lagged behind Treasuries. We favor shorter-maturity, higher-quality and
financial credits in lieu of longer duration and industrial issues. A number of
factors such as a robust new issue calendar, a flat to inverted yield curve and
a high level of corporate event risk have caused us to remain defensive in the
corporate sector.
The Portfolio's allocation to asset-backed securities (ABS) was relatively
neutral in terms of performance. We favor non-prepayment sensitive auto and
credit card issues. We recently added floating rate asset-backed securities
comprised mainly of home equity loans.
The Portfolio's position in non-US dollar securities benefited performance. We
maintain a small allocation in Europe.
We feel that continued economic expansion, dollar weakness, and deterioration of
the current account deficit all signal higher interest rates. Against this
backdrop, the Portfolio is positioned with a shorter duration and a barbelled
yield curve relative to the benchmark. As always, we expect to actively manage
the Portfolio and rotate sectors as they move in and out of our favor.
13
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- ------------------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 0.73% 1.01% 2.46% N/A 2.46%
Maximum Sales Charge Class B** 0.33 0.23 1.69 N/A 2.06
or UBS PACE Program Fee Class C*** 0.47 0.50 1.96 N/A 2.49
Class Y**** 0.85 1.26 N/A N/A 2.75
Class P***** 0.86 1.27 2.75 4.18% 4.40
After Deducting Class A* -3.82 -3.57 1.53 N/A 1.53
Maximum Sales Charge Class B** -4.62 -4.67 1.34 N/A 1.89
or UBS PACE Program Fee Class C*** -0.27 -0.24 1.96 N/A 2.49
Class P***** 0.10 -0.23 1.22 2.63 2.85
Lehman Brothers Intermediate Government/Credit Index 0.81 1.37 5.15 5.71 6.04
Lipper Short-Intermediate Investment Grade Debt Funds median 0.72 1.13 4.27 4.96 5.29
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -3.52%; since inception, 1.55%; Class B--1-year period,
- -4.53%; 5-year period, 1.68%; since inception, 1.95%; Class C--1-year period,
- -0.18%; 5-year period, 2.28%; since inception, 2.55%; Class Y--1-year period,
1.33%; since inception, 2.79%; Class P--1-year period, -0.18%; 5-year period,
1.54%; 10-year period, 2.64%; since inception, 2.88%.
^ 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
24, 1995, WHICH IS 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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES
OR ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 10 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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking current income
and a reasonable stability of principal. Investors should be able to withstand
short-term fluctuations in the fixed income markets. The value of the Portfolio
changes every day and can be affected by changes in interest rates, general
market conditions and other political, social and economic developments, as well
as specific matters relating to the companies in whose securities the Portfolio
invests. It is important to note that an investment in the Portfolio is only one
component of a balanced investment plan.
14
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- -------------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,007.30 $ 5.36
Hypothetical (5% annual return before expenses) 1,000.00 1,019.86 5.40
Class B Actual 1,000.00 1,003.30 9.14
Hypothetical (5% annual return before expenses) 1,000.00 1,016.08 9.20
Class C Actual 1,000.00 1,004.70 7.88
Hypothetical (5% annual return before expenses) 1,000.00 1,017.34 7.93
Class Y Actual 1,000.00 1,008.50 4.10
Hypothetical (5% annual return before expenses) 1,000.00 1,021.12 4.13
Class P Actual 1,000.00 1,008.60 4.05
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:
1.06%, 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).
15
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- ---------------------------------------------------------------------------------
Weighted Average Duration 3.2 yrs.
Weighted Average Maturity 3.3 yrs.
Average Coupon 4.45%
Net Assets (mm) $ 406.1
Number of Securities 238
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- ---------------------------------------------------------------------------------
Long-Term Debt Securities (Bonds and Notes) 100.1%
Investments Sold Short (1.7)
Futures and Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 1.6
- ---------------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------------
<Caption>
QUALITY DIVERSIFICATION* 1/31/06
- ---------------------------------------------------------------------------------
U.S. Government and Agency Securities 45.4%
AAA 25.6
AA 5.5
A 10.2
BBB and Below/Non-rated 13.4
Investments Sold Short (1.7)
Futures and Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 1.6
- ---------------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------------
<Caption>
ASSET ALLOCATION* 1/31/06
- ---------------------------------------------------------------------------------
Corporate Notes 30.1%
U.S. Government Agency Mortgage Pass-Through Certificates 20.6
U.S. Government Obligations 20.1
Collateralized Mortgage Obligations 16.6
Asset-Backed Securities 11.4
International Government Obligations 1.3
U.S. Government Agency Mortgage Pass-Through Certificate Sold Short (1.7)
Futures and Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 1.6
- ---------------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time. Credit quality ratings shown are based on the ratings
assigned to portfolio holdings by Standard & Poor's Ratings Group, an
independent rating agency.
** Weightings represent less than 0.05% of the Portfolio's net assets as of
January 31, 2006.
16
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 0.10% (before the deduction of the maximum UBS PACE program fee; -0.65%
after the deduction of the maximum program fee), compared with the Lehman
Brothers Government/Credit Index (the "Index") return of 0.58% and the 0.62%
return of the Lipper Intermediate Investment Grade Debt Funds median. (Returns
for all share classes over various time periods are shown in the "Performance at
a Glance" 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
Bonds gained ground during the period, leaning against the headwinds of Federal
Reserve Board (the "Fed") tightening and concerns that higher energy prices
would fuel inflation. The benchmark 10-year Treasury yield ended the period at
4.53%, 0.25% higher than at the start of the six-month reporting period.
The bond markets were dominated during the period by speculation about the pace
and duration of the Fed's tightening cycle. Market expectations of continued Fed
tightening drove short-term rates higher and helped produce a significant
flattening of the yield curve. 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, increasing it from 3.25% to
4.50% through the end of the period. A drop in energy prices, which had soared
after the Gulf Coast hurricanes, calmed fears about inflation. Signs also
emerged that higher mortgage rates and lofty valuations could finally be
pinching affordability in surging property markets, as growth in new home prices
decelerated and inventories of new and existing homes rose.
ADVISOR'S COMMENTS
Broad diversification helped the Portfolio's returns for the six-month period
amid a challenging environment. Mortgage-backed securities underperformed
like-duration Treasuries for the period as yield premiums widened, while a flat
yield curve, which reduces the "carry" (the difference between bond yields and
short-term borrowing rates), sidelined some important mortgage investors.
Corporate bonds lagged Treasuries of similar duration for the period as a
decline in consumer confidence associated with the lingering effects of
Hurricanes Rita and Katrina weighed on the sector. Non-investment-grade
corporates fared better than their high-grade counterparts due to their yield
advantage in a rising interest rate environment. Real return bonds lagged during
the period as inflationary concerns declined, while municipal securities, which
usually outperform as rates rise, performed near Treasuries. Emerging market
bonds was one of the best performing fixed income sectors as it was supported by
a stable global monetary system, continued improvement in credit quality and a
growing institutional perception of emerging markets as a strategic allocation.
Most government bond markets outside the US outperformed Treasuries as economic
growth was generally slower and interest rate increases were milder outside the
US.
The Portfolio's above-Index duration detracted from performance as interest
rates rose during the period. An overweight to shorter maturities also hurt
returns, as the yield curve continued to flatten when short-term rates rose.
Most of the Portfolio's real return bond holdings hurt performance due to
declining inflation expectations. Elsewhere, mortgage security selection helped
returns, which eased the negative impact of a sector overweight as mortgages
lagged Treasuries. An underweight to corporates was positive, as they trailed
Treasuries as credit premiums widened. Municipal securities also helped returns
by adding high-quality income to the Portfolio. Finally, emerging market bonds
helped performance, as investors continued to be drawn to their improving credit
fundamentals.
[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.
17
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- ------------------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* -0.12% 1.54% 5.69% N/A 6.11%
Maximum Sales Charge Class B** -0.43 0.80 4.91 N/A 5.07
or UBS PACE Program Fee Class C*** -0.36 1.07 5.17 N/A 5.72
Class Y**** 0.14 1.98 N/A N/A 5.97
Class P***** 0.10 1.84 6.00 6.05% 6.85
After Deducting Class A* -4.59 -3.00 4.72 N/A 5.17
Maximum Sales Charge Class B** -5.29 -4.06 4.58 N/A 4.91
or UBS PACE Program Fee Class C*** -1.09 0.34 5.17 N/A 5.72
Class P***** -0.65 0.33 4.42 4.47 5.26
Lehman Brothers Government/Credit Index 0.58 1.48 5.72 6.09 6.56
Lipper Intermediate Investment Grade Debt Funds median 0.62 1.40 4.92 5.29 5.73
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -2.53%; 5-year period, 5.00%; since inception, 5.26%;
Class B--1-year period, -3.51%; since inception, 4.84%; Class C--1-year period,
0.90%; 5-year period, 5.44%; since inception, 5.83%; Class Y--1-year period,
2.42%; since inception, 6.06%; Class P--1-year period, 0.90%; 5-year period,
4.70%; 10-year period, 4.54%; since inception, 5.32%.
^ 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 24, 1995,
WHICH IS 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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES
OR ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking total return
consisting of income and capital appreciation and who are able to withstand
short-term fluctuations in the fixed income markets in return for potentially
higher returns over the long term. The value of the Portfolio changes every day
and can be affected by changes in interest rates, general market conditions and
other political, social and economic developments, as well as specific matters
relating to the companies in whose securities the Portfolio invests. In
addition, investments in foreign bonds involve special risks. It is important to
note that an investment in the Portfolio is only one component of a balanced
investment plan.
18
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- -------------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 998.80 $ 6.10
Hypothetical (5% annual return before expenses) 1,000.00 1,019.11 6.16
Class B Actual 1,000.00 995.70 9.76
Hypothetical (5% annual return before expenses) 1,000.00 1,015.43 9.86
Class C Actual 1,000.00 996.40 8.50
Hypothetical (5% annual return before expenses) 1,000.00 1,016.69 8.59
Class Y Actual 1,000.00 1,001.40 4.34
Hypothetical (5% annual return before expenses) 1,000.00 1,020.87 4.38
Class P Actual 1,000.00 1,001.00 4.69
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:
1.21%, Class B: 1.94%, Class C: 1.69%, Class Y: 0.86%, 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 1/31/06
- ---------------------------------------------------------------------------------
Weighted Average Duration 5.5 yrs.
Weighted Average Maturity 8.7 yrs.
Average Coupon 5.2%
Net Assets (mm) $ 509.9
Number of Securities 234
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- ---------------------------------------------------------------------------------
Long-Term Debt Securities (Bond and Notes) 89.5%
Options, Futures, Swaps and Forward Foreign Currency Contracts (0.2)
Cash Equivalents and Other Assets Less Liabilities 10.7
- ---------------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------------
<Caption>
QUALITY DIVERSIFICATION* 1/31/06
- ---------------------------------------------------------------------------------
U.S. Government and Agency Securities 50.8%
AAA 18.0
AA 2.0
A 4.0
BBB 7.1
BB 4.9
B 0.7
Below B/Non-rated 2.0
Options, Futures, Swaps and Forward Foreign Currency Contracts (0.2)
Cash Equivalents and Other Assets Less Liabilities 10.7
- ---------------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------------
<Caption>
SECTOR ALLOCATION* 1/31/06
- ---------------------------------------------------------------------------------
Collateralized Mortgage Obligations 53.2%
Corporate Notes 13.0
U.S. Government Agency Mortgage Pass-Through Certificates 9.9
Municipal Bonds and Notes 4.0
International Government Obligations 3.6
U.S. Government Obligations 3.0
Asset-Backed Securities 2.8
Stripped Mortgage-Backed Securities 0.0**
Options, Futures, Swaps and Forward Foreign Currency Contracts (0.2)
Cash Equivalents and Other Assets Less Liabilities 10.7
- ---------------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time. Credit quality ratings shown are based on the ratings
assigned to portfolio holdings by Standard & Poor's Ratings Group, an
independent rating agency.
** Weighting represents less than 0.05% of the Portfolio's net assets as of
January 31, 2006.
20
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE MUNICIPAL FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Fund's Class P shares returned
0.90% (before the deduction of the maximum UBS PACE program fee; 0.14% after the
deduction of the maximum program fee), compared with 0.98% for the Lehman
Brothers Municipal Five-Year Index (the "Index") and 0.99% for the Lipper
Intermediate Municipal Debt Funds median. (Returns for all share classes over
various time periods are shown in the "Performance at a Glance" table on page
22. 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
Municipal securities outperformed Treasuries during the reporting period amidst
a backdrop of heavy issuance and rising short-term interest rates. The Federal
Reserve Board continued a tightening monetary policy, pushing the federal funds
rate (or "fed funds" rate, the rate that banks charge one another for funds they
borrow on an overnight basis) from 3.25% to 4.50%. Both Treasury and municipal
rates followed suit and increased across the yield curve. However, municipals
behaved defensively, experiencing approximately 75% of the upward yield movement
in Treasuries.
Municipal bond credit quality advanced further over the period, as many state
and local governments were awash in tax revenues and ratings upgrades for many
tax-backed credits proliferated throughout the period.
Heavy issuance among municipalities was driven by low interest rates, rising
infrastructure needs and a flatter yield curve, which made the "refinancing" of
existing higher cost debt advantageous. While demand for shorter municipals was
sporadic, maturities beyond 10 years witnessed steady buying throughout the year
from property and casualty insurers and hedge funds. The strongest performing
sectors of the municipal market were income-oriented revenue bonds, such as
hospital, housing and tobacco securitization bonds. Investors seeking higher
yields from investment grade municipals gravitated to these sectors.
ADVISOR'S COMMENTS
During the reporting period, the Portfolio benefited from targeted sector
selection, such as an overweight to revenue and underweight to pre-refunded
bonds. In particular, housing bonds performed well during the rising rate
environment, driven by market anticipation of slower prepayment activity.
Elsewhere, hospital bonds benefited from demand from investors in search of
higher yields. Our underweight to low yielding pre-refunded bonds was a positive
due to the sector's interest rate sensitivity and weak retail demand. Tobacco
bonds were strong performers, supported by a more favorable litigation
environment and light supply.
Tax-exempt interest rates rose and the yield differential between short and
longer maturity bonds narrowed to historically low levels. The slope between
two- and 10-year municipal bonds declined by approximately 35 basis points and
ended the period nearly 70 basis points below the long-term historical average
(a basis point is 1/100 of a percentage point). The Portfolio benefited from
broad exposure to maturities generally ranging from one to 12 years, as
longer-duration bonds outperformed shorter-dated bonds. The Lehman Brothers
Municipal Five-Year Index is concentrated in maturities ranging from four to six
years. The Portfolio's duration was maintained within a tight band around the
benchmark.
State exposure contributed positively to relative performance, with emphasis on
California as well as New York City. Both regions benefited from robust tax
revenue growth and strengthening economies, as well as light issuance. Delays in
balancing the budget and uncertainty surrounding tax and fiscal reform drove
Puerto Rico bonds to lag the national market. This was a modest drag for the
Portfolio.
[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>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- ----------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 0.71% 0.87% 3.49% N/A 3.44%
Maximum Sales Charge Class B** 0.40 0.17 N/A N/A 2.69
or UBS PACE Program Fee Class C*** 0.45 0.34 2.94 N/A 3.36
Class Y**** 0.90 1.09 N/A N/A 3.70
Class P***** 0.90 1.16 3.71 4.25% 4.57
After Deducting Class A* -3.83 -3.69 2.55 N/A 2.49
Maximum Sales Charge Class B** -4.56 -4.72 N/A N/A 2.32
or UBS PACE Program Fee Class C*** -0.29 -0.39 2.94 N/A 3.36
Class P***** 0.14 -0.34 2.17 2.70 3.02
Lehman Brothers Municipal Five-Year Index 0.98 1.21 4.31 4.70 4.84
Lipper Intermediate Municipal Debt Funds median 0.99 1.45 4.18 4.49 4.71
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -3.77%; since inception, 2.50%; Class B--1-year period,
- -4.88%; since inception, 2.32%; Class C--1-year period, -0.40%; 5-year period,
3.08%; since inception, 3.38%; Class Y--1-year period, 1.00%; since inception,
3.71%; Class P--1-year period, -0.52%; 5-year period, 2.31%; 10-year period,
2.68%; since inception, 3.02%.
^ 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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES
OR ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking high current
income exempt from federal income taxes. Investors should be able to withstand
short-term fluctuations in the fixed income markets in return for potentially
higher returns over the long term. The yield and value of the Portfolio change
every day and can be affected by changes in interest rates, general market
conditions and other political, social and economic developments, as well as
specific matters relating to the issuers in which the Portfolio invests. It is
important to note that an investment in the Portfolio is only one component of a
balanced investment plan.
22
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- ---------------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,007.10 $ 4.96
Hypothetical (5% annual return before expenses) 1,000.00 1,020.27 4.99
Class B Actual 1,000.00 1,004.00 8.69
Hypothetical (5% annual return before expenses) 1,000.00 1,016.53 8.74
Class C Actual 1,000.00 1,004.50 7.53
Hypothetical (5% annual return before expenses) 1,000.00 1,017.69 7.58
Class Y Actual 1,000.00 1,009.00 3.80
Hypothetical (5% annual return before expenses) 1,000.00 1,021.42 3.82
Class P Actual 1,000.00 1,009.00 3.85
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: 0.98%, Class B: 1.72%, Class C: 1.49%, Class Y: 0.75%, 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).
23
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- --------------------------------------------------------------------------------------------------
Weighted Average Duration 3.9 yrs.
Weighted Average Maturity 4.5 yrs.
Average Coupon 5.29%
Net Assets (mm) $ 249.6
Number of Securities 151
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- --------------------------------------------------------------------------------------------------
Municipal Bonds and Notes 98.5%
Short-Term Municipal Variable Notes 0.4
Tax-Free Money Market Fund 0.0**
Other Assets Less Liabilities 1.1
- --------------------------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------------------------
<Caption>
TOP FIVE SECTORS* 1/31/06
- --------------------------------------------------------------------------------------------------
Insured 34.5%
Revenue 23.6
General Obligations 20.8
Pre-Refunded 8.0
Housing 3.5
- --------------------------------------------------------------------------------------------------
Total 90.4%
- --------------------------------------------------------------------------------------------------
<Caption>
TOP FIVE STATES* 1/31/06
- --------------------------------------------------------------------------------------------------
New York 11.5%
California 10.0
Illinois 8.6
Massachusetts 7.7
Texas 7.5
- --------------------------------------------------------------------------------------------------
Total 45.3%
- --------------------------------------------------------------------------------------------------
<Caption>
QUALITY DIVERSIFICATION* 1/31/06
- --------------------------------------------------------------------------------------------------
AAA and Agency Backed Securities 46.9%
AA 17.2
A 12.7
BBB 17.7
A-1+/VMIG1 0.4
Non-rated 4.0
Tax-Free Money Market Fund 0.0**
Other Assets Less Liabilities 1.1
- --------------------------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time. Credit quality ratings shown are based on the ratings
assigned to portfolio holdings by Standard & Poor's Ratings Group, an
independent rating agency.
** Weighting represents less than 0.05% of the Portfolio's net assets as of
January 31, 2006.
24
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE GLOBAL FIXED INCOME INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 0.44% (before deduction of the maximum UBS PACE program fee; -0.32%
after deduction of the maximum program fee), compared with a -0.80% return for
the Citigroup World Government Bond Index (in US dollars or "USD"), a -0.48%
return for the Lehman Brothers Global Aggregate Ex U.S. Index (in USD), a 0.05%
return for the Lehman Brothers Global Aggregate Index (in USD) and a 0.40%
return for the Lipper Global Income Funds median. (Returns for all share classes
over various time periods are shown in the "Performance at a Glance" table on
page 27. 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
From the second half of 2005, it seemed clear that the so-called "soft patch" in
global economic activity was over. A degree of pessimism did descend over the
financial markets in August 2005, in part due to the uncertainty over the
potential impact of Hurricane Katrina. However, economic data still showed that
the global economy continued to power ahead. Not surprisingly, therefore,
central bankers began to talk up the inflation threat, and 10-year US Treasury
yields rose to their highest level since late March 2005. Toward the end of
2005, data began to suggest that the underlying inflationary pressures
throughout much of the developed world were tamer than many had previously
feared. Bond yields declined into year-end before rising again from mid-January
2006 as optimism grew about the global growth outlook. In the currency markets,
despite worsening fundamentals, the US dollar remained supported given strong US
growth numbers. In addition, the interest rate differential in the US versus
other developed markets and capital inflows supported the dollar. In 2006, talk
of China reducing its US dollar holdings in its foreign exchange reserves and
more flexible language from the Federal Reserve Board regarding future rate
rises slowed some of the US dollar's momentum, and Asian currencies appreciated.
ADVISORS' COMMENTS
ROGGE GLOBAL PARTNERS
In terms of our country allocations, we took the view that the US, Euroland and
Japan were likely to offer less value on a relative basis versus some of the
peripheral markets. During the reporting period, our overweight position in
Australia and underweight in Japan enhanced returns. However, given that the UK
economy slowed faster than we had expected, an underweight in UK bonds
subtracted value. Long-duration positions in Canada and Denmark also detracted
over the period.
As global growth remained healthy over the review period, the US dollar was well
supported, while the euro underperformed, not just against the US dollar, but
also versus other developed market currencies. In this environment, commodity
currencies benefited as countries like India and China continued to feed their
insatiable appetites for natural resources. We maintained long positions in the
Australian and Canadian dollars and the Norwegian krone. Our long Canadian
dollar
[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 Richard Williams
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 (the Americas,
Eurozone and Asia) plus emerging markets 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.
25
<Page>
position was a positive contributor to performance, as were our exposures to the
Polish zloty and Korean won. During the first half of the reporting period, the
long Norwegian krone versus euro position added to returns. This occurred as the
Norwegian economy benefited from rising oil prices and the expectation of
impending interest rate hikes as the economy strengthened. However, in the
second half of the period, the krone depreciated and the position detracted from
returns.
A steady stream of news headlines kept the investment grade credit market
active. However, the overall tone of the market was cautious. Heightened concern
over merger and acquisition risks and the sustainability of business models
created selling pressure in certain sectors. Investors were also busy trying to
identify potential leveraged buyout (LBO) candidates. On average, approximately
15% of our portion of the Portfolio was invested in a diversified group of
non-government securities. There was a modest addition to returns from these
holdings.
Strong economic fundamentals, constructive investor positioning and strong flows
into emerging markets saw our allocation to that sector make a positive
contribution to returns. Over the review period, approximately 2% of our portion
of the Portfolio was invested in emerging market debt.
FISCHER FRANCIS TREES & WATTS
The major contributors to our portion of the Portfolio's incremental returns
were primarily our spread and yield curve trades. In the third quarter of 2005,
we were overweight Europe interest rate exposure, relative to the benchmark,
versus the US and Japan. Toward the end of 2005 and into 2006, our European
overweight was expressed as UK duration versus Europe and Japan. The UK was seen
as a relatively attractive market due to its sluggish economy. Also, of the
major central banks, we viewed the Bank of England as the most likely to ease
interest rates near term. Additionally, we saw value in being long against
Europe and Japan as their central banks were considering the removal of policy
accommodation, or, policies favoring lower interest rates. Given slower growth
and falling inflation expectations, we held an exposure in Mexico, which had a
positive impact. Iceland, Japan, New Zealand and US inflation-linked securities
were held as inflation hedges, but contributed minimally to performance over the
period. In terms of yield curve exposures, we maintained flattening positions in
the US and Japan. This was done with the hope that short-term rates would rise
while long-term rates would fall. Both positions added incrementally. Early in
2006, we initiated a trade to seek and capitalize on what we felt would be a
flattening yield curve in Europe. However, thus far its effect has been nominal
on performance.
In non-government sectors, we remained strategically underweight the US and more
so European credit as we believed the high valuations were unjustified and tight
spreads left little room for opportunities. We also maintained an overweight
mortgage position through the end of November 2005. Neither sector position had
a significant impact on performance.
Our US dollar trades early in the period were tactical, as steady themes and
trends failed to emerge until early to mid-September 2005. The phenomenon
created a difficult environment for currency trading. In the third quarter, we
established a positive US dollar bias held against the Japanese yen and euro,
driven by interest rate differentials. We took profits on a short euro versus
sterling position in August after opening the trade in July, as we considered
the market to be overly bearish on the UK economy. Early in the fourth quarter,
we favored commodity currencies, including the Canadian, Australian and New
Zealand dollars and the Mexican peso over UK sterling, the euro and Japanese
yen. While these positions detracted slightly from returns, overall currency
trading did not add or detract much value from our portion of the Portfolio over
the reporting period.
26
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- ----------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 0.31% -3.38% 6.57% N/A 7.08%
Maximum Sales Charge Class B** -0.07 -4.11 N/A N/A 5.63
or UBS PACE Program Fee Class C*** 0.06 -3.86 6.04 N/A 6.65
Class Y**** 0.48 -3.08 6.87 N/A 6.89
Class P***** 0.44 -3.15 6.84 4.73% 5.09
After Deducting Class A* -4.17 -7.71 5.58 N/A 6.13
Maximum Sales Charge Class B** -4.82 -8.63 N/A N/A 5.31
or UBS PACE Program Fee Class C*** -0.65 -4.54 6.04 N/A 6.65
Class P***** -0.32 -4.60 5.25 3.17 3.53
Citigroup World Government Bond Index (in USD) -0.80 -4.33 7.22 5.26 5.43
Lehman Brothers Global Aggregate Ex U.S. Index (in USD) -0.48 -4.78 8.17 4.80 5.06
Lehman Brothers Global Aggregate Index (in USD) 0.05 -2.25 6.97 5.52 5.83
Lipper Global Income Funds median 0.40 -1.25 6.27 5.54 5.89
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -10.42%; 5-year period, 5.27%; since inception, 5.89%;
Class B--1-year period, -11.37%; since inception, 5.06%; Class C--1-year period,
- -7.33%; 5-year period, 5.71%; since inception, 6.43%; Class Y--1-year period,
- -5.92%; since inception, 6.65%; Class P--1-year period, -7.39%; 5-year period,
4.94%; 10-year period, 2.94%; since inception, 3.40%.
^ 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
INDICES 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).
THE FUND'S BENCHMARK INDEX CHANGED FROM THE CITIGROUP WORLD GOVERNMENT
BOND INDEX (IN USD) TO THE LEHMAN BROTHERS GLOBAL AGGREGATE EX U.S. INDEX
ON DECEMBER 1, 2005.
* 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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES
OR ONGOING 12b-1 SERVICE AND DISTRIBUTION 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.
The Lehman Brothers Global Aggregate Ex U.S. Index (in USD) provides a
broad-based measure of the global investment-grade fixed income markets
excluding the U.S. market. The two major components of this Index are the
Pan-European Aggregate and the Asian-Pacific Aggregate Indices. The Index also
includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency
and corporate securities.
The Lehman Brothers Global Aggregate Index (in USD) provides a broad-based
measure of the global investment-grade fixed income markets. The three major
components of this Index are the U.S. Aggregate, the Pan-European Aggregate, and
the Asian-Pacific Aggregate Indices. The Index also includes Eurodollar and
Euro-Yen corporate bonds, Canadian government securities, and USD investment
grade 144A securities.
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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking high total
return and who are able to withstand short-term fluctuations in the fixed income
markets in return for potentially higher returns over the long term. The yield
and value of the Portfolio change every day and can be affected by changes in
interest rates, general market conditions and other political, social and
economic developments, as well as specific matters relating to the issuers in
which the Portfolio invests. It is important to note that an investment in the
Portfolio is only one component of a balanced investment plan. The value of the
Portfolio's investments in foreign securities may fall due to adverse political,
social and economic developments abroad and due to decreases in foreign currency
values relative to the US dollar. These risks are greater for investments in
emerging markets than in more developed countries.
27
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- ---------------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,003.10 $ 6.92
Hypothetical (5% annual return before expenses) 1,000.00 1,018.30 6.97
Class B Actual 1,000.00 999.30 10.68
Hypothetical (5% annual return before expenses) 1,000.00 1,014.52 10.76
Class C Actual 1,000.00 1,000.60 9.38
Hypothetical (5% annual return before expenses) 1,000.00 1,015.83 9.45
Class Y Actual 1,000.00 1,004.80 5.26
Hypothetical (5% annual return before expenses) 1,000.00 1,019.96 5.30
Class P Actual 1,000.00 1,004.40 5.71
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: 1.37%, Class B: 2.12%, Class C: 1.86%, Class Y: 1.04%, 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).
28
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- --------------------------------------------------------------------------------------------------
Net Assets (mm) $ 455.7
Number of Securities 129
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- --------------------------------------------------------------------------------------------------
Long-Term Global Debt Securities 87.7%
Futures and Forward Foreign Currency Contracts 0.4
Cash Equivalents and Other Assets Less Liabilities 11.9
- --------------------------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------------------------
<Caption>
QUALITY DIVERSIFICATION* 1/31/06
- --------------------------------------------------------------------------------------------------
U.S. Government and Agency Securities 3.2%
AAA 45.8
AA 12.6
A 5.0
BBB 4.6
Non-Rated 16.5
Futures and Forward Foreign Currency Contracts 0.4
Cash Equivalents and Other Assets Less Liabilities 11.9
- --------------------------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------------------------
<Caption>
TOP 5 COUNTRIES* 1/31/06
- --------------------------------------------------------------------------------------------------
United States 14.2%
France 12.2
United Kingdom 11.0
Japan 10.5
Germany 7.1
- --------------------------------------------------------------------------------------------------
Total 55.0%
- --------------------------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time. Credit quality ratings shown are based on the ratings
assigned to portfolio holdings by Standard & Poor's Ratings Group, an
independent rating agency.
29
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE LARGE CO VALUE EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 8.37% (before the deduction of the maximum UBS PACE program fee; 7.55%
after the deduction of the maximum program fee), compared with a 6.23% return of
the Russell 1000 Value Index (the "Index") and 4.96% return of the Lipper Large
Cap Value Funds median. (Returns for all share classes over various time periods
are shown in the "Performance at a Glance" table on page 32. 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 market's expectation for continued Federal Reserve Board (the "Fed") rate
hikes was a running theme throughout 2005 and into 2006, resulting in volatile
swings in investor optimism and subsequent moves in the broad stock market.
Although the Russell 1000 Value Index produced a good return during the
reporting period, much of the gains occurred in mid-to-late summer as investor
optimism over the potential for a moderate growth, low inflation environment
carried markets higher. However, the mix of hurricane damage on the Gulf Coast,
rising oil prices and rising short-term interest rates resulted in fear over an
impending recession and deteriorating investor confidence. The period ended with
a rally for large cap stocks in the fall. However, unlike previous years, the
rally did not last into the end of December as investor anxiety over the
inversion of the yield curve (when short-term interest rate surpass long-term
rates) caused a year-end selloff. The final move higher in early 2006 ended the
period with a low-quality rally as investors once again became optimistic about
the strength in the economy and a likely near term end to the Fed rate hike
cycle.
ADVISORS' COMMENTS
SSgA
Our portion of the Portfolio generated strong results during the reporting
period and outperformed the Index. Our investment process incorporates
perspectives on valuation, quality and sentiment. For this six-month period
these perspectives offered strong results among large cap value stocks. Our
estimate revision model, a proxy for earnings growth, and our price reversal
model, which assesses whether or not a stock has been "overbought" or
"oversold," served as strong predictors of stock returns.
During the reporting period, solid stock selection drove our portfolio's
outperformance. Stocks in seven of 10 sectors had a positive overall impact on
performance, with our energy and healthcare holdings leading the way. While
crude oil prices started to stabilize going into the third quarter, those for
natural gas, gasoline and heating oil remained firm, reinforcing profits. Not
surprisingly, overweight positions in Valero Energy Corp., Sunoco, Inc.,
Kerr-McGee Corp. and Occidental Petroleum Corp. were among the top contributors
to performance. Overweights to healthcare companies like AmerisourceBergen Co.,
Merck & Co. and Humana, Inc. also bolstered performance. Shares of
AmerisourceBergen, the third largest drug wholesaler, steadily rose, and its
fiscal first quarter income beat analysts' estimates. Apple Computer, Inc. was
the largest single positive contributor to performance for the period. Shares of
the
[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 MANAGERS:
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.
30
<Page>
company soared as it was expected to report annual profits topping $1 billion
for the first time as sales of the iPod music player fueled revenue and buoyed
demand for the company's computers.
In contrast, the largest stock level detraction resulted from an overweight to
McAfee, Inc. The maker of antivirus software fell on news that fourth quarter
profit lagged analysts' estimates. An overweight position in Lear Corp. also
detracted from performance. The world's number-one maker of automotive interiors
announced sagging profits. In addition, negative news relating to US automakers
weighed heavily on the stock.
ICAP
During the reporting period, our portion of the Portfolio generated strong
results and outperformed its Index. This was primarily attributed to favorable
stock selection, especially among our energy, financial and materials stocks.
Sector weighting had a less significant but still important impact, with an
overweight in information technology enhancing results.
A significant management focus of the past six months was to position our
portion of the Portfolio more defensively. We believed this approach was prudent
in light of a potentially slower economy in 2006. Continued rising energy
prices, due in large part to the destruction caused by Hurricanes Rita and
Katrina, was a major reason for this view. Another risk to the economy came in
the form of higher interest rates. At each meeting during the period, the
Federal Reserve Board raised the federal funds rate by a quarter-percentage
point, bringing it to 4.50% by the end of January 2006. A decline in housing and
automobile sales was further evidence that the economy could be losing steam. As
a case in point, the advance estimate for fourth quarter GDP growth was a
disappointing annualized rate of 1.1%.
In response, we lowered our exposure to companies whose earnings depend on
increased capital investments, and also reduced our holdings in basic materials
stocks. We also sold some of our consumer services stocks but added to our
weighting in consumer staples, which do not tend to be overly sensitive to a
slowing economy.
Another strategic theme was to continue to invest in companies that we believed
were likely to benefit from an imbalance of supply and demand for their products
and services. This led us to emphasize two market areas in particular--energy
and transportation. In energy, the demand for oil continues to be strong and
rapidly increasing, in large measure because of strong growth from emerging
markets, especially China and India. What's more, we believe that the
fundamentals are in place for continued high oil prices. Although we remain
optimistic about energy, we did reduce our exposure to the sector to lock in
recent gains and to reduce our segment of the Portfolio's overall volatility.
Our transportation investments were focused on the railroad industry. As
congestion and supply/demand dynamics have driven up trucking costs, railroad
companies have emerged as an efficient, cost-effective way to move goods from
point A to point B. In this environment, railroads have been able to raise their
prices and cut costs, becoming more profitable. Many have seen their stock
prices increase, and our emphasis on this industry contributed greatly to our
recent performance.
Not surprisingly, three of the top five best performing stocks in our portion of
the Portfolio were oil companies. The top stocks during the time period were
Halliburton, Norfolk Southern, Marathon Oil, Goldman Sachs and Weatherford
International. In contrast, the worst performing stocks were Cendant, Sprint,
Deere, Tyco International and Intel. All of these stocks, except for Sprint, are
no longer in our portion of the Portfolio.
WESTWOOD
Our exposure to high-quality, attractively valued securities with strong
fundamentals allowed our portion of the Portfolio to outperform the benchmark
during the reporting period. Our continued belief in the sustainability of the
global industrial cycle, fueled by demand from emerging economies such as India
and China, led us to find value in the industrial segment of the market.
Strong security selection in the energy, autos and transportation, and materials
and processing sectors was the primary contributor to our outperformance. Our
exposure to financial services stocks also enhanced results. Additional positive
performance was generated from our overweight to the energy, autos and
transportation, and materials and processing sectors. Top contributing holdings
included Baker Hughes, Burlington Resources and Marathon Oil Corp., which
responded well to both the rise in oil and gas prices, a decline in refining
capacity and an increase in capital spending. We continue to believe these
companies' stocks remain at very attractive valuation levels.
Within financial services, asset management and brokerage firms such as Lehman
Brothers and Legg Mason performed well as their results continued to beat
expectations. Within materials and processing, Phelps Dodge rose, as the demand
for copper remained stronger than expected. Other top contributors to
performance included Burlington Northern Santa Fe in the autos and
transportation sector.
On the downside, positions in consumer discretionary and utilities were
detrimental to performance during the period. Within consumer discretionary,
Sears Holdings Corp. and Best Buy both sold off after their earnings results
disappointed investors. We subsequently sold Best Buy but remain holders of
Sears Holdings. Other detractors included Alltel Corp. and Comcast Corp. Comcast
continues to be pressured by competitive threats, which resulted in poor
performance for this company. Strong subscriber growth for Alltel has led higher
than expected costs for the company. As a result, both companies underperformed
during the period. However, our underweight position relative to the Index in
both sectors mitigated a portion of the negative impact.
31
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- ---------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 8.22% 16.76% 5.51% N/A 6.42%
Maximum Sales Charge Class B** 7.70 15.78 4.66 N/A 5.59
or UBS PACE Program Fee Class C*** 7.78 15.83 4.71 N/A 5.63
Class Y**** 8.45 17.23 5.83 N/A 6.47
Class P***** 8.37 17.03 5.74 8.74% 9.93
After Deducting Class A* 2.27 10.36 4.32 N/A 5.26
Maximum Sales Charge Class B** 2.70 10.78 4.33 N/A 5.43
or UBS PACE Program Fee Class C*** 6.78 14.83 4.71 N/A 5.63
Class P***** 7.55 15.29 4.17 7.12 8.29
Russell 1000 Value Index 6.23 13.24 6.01 11.03 12.09
Lipper Large Cap Value Funds median 4.96 10.42 3.31 8.68 9.62
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 4.32%; 5-year period, 3.49%; since inception, 4.48%;
Class B--1-year period, 4.44%; 5-year period, 3.50%; since inception, 4.66%;
Class C--1-year period, 8.52%; 5-year period, 3.89%; since inception, 4.86%;
Class Y--1-year period, 10.75%; since inception, 5.66%; Class P--1-year period,
9.01%; 5-year period, 3.34%; 10-year period, 7.09%; since inception, 7.94%.
^ 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 24, 1995, WHICH IS
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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES
OR ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking capital
appreciation who are able to withstand short-term fluctuations in the equity
markets in return for potentially higher returns over the long term. The value
of the Portfolio changes every day and can be affected by changes in interest
rates, general market conditions and other political, social and economic
developments, as well as specific matters relating to the companies in whose
securities the Portfolio invests. It is important to note that an investment in
the Portfolio is only one component of a balanced investment plan.
32
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- ---------------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,082.20 $ 5.93
Hypothetical (5% annual return before expenses) 1,000.00 1,019.51 5.75
Class B Actual 1,000.00 1,077.00 10.68
Hypothetical (5% annual return before expenses) 1,000.00 1,014.92 10.36
Class C Actual 1,000.00 1,077.80 10.06
Hypothetical (5% annual return before expenses) 1,000.00 1,015.53 9.75
Class Y Actual 1,000.00 1,084.50 4.05
Hypothetical (5% annual return before expenses) 1,000.00 1,021.32 3.92
Class P Actual 1,000.00 1,083.70 4.52
Hypothetical (5% annual return before expenses) 1,000.00 1,020.87 4.38
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios: Class
A: 1.13%, Class B: 2.04%, Class C: 1.92%, Class Y: 0.77%, Class P: 0.86%,
multiplied by the average account value over the period, multiplied by 184
divided by 365 (to reflect the one-half year period).
33
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- ----------------------------------------------------------------------------------------------------
Net Assets (mm) $ 1,374.2
Number of Securities 155
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- ----------------------------------------------------------------------------------------------------
Common Stocks 95.4%
ADRs 1.9
Cash Equivalents and Other Assets Less Liabilities 2.7
- ----------------------------------------------------------------------------------------------------
Total 100.0%
- ----------------------------------------------------------------------------------------------------
<Caption>
TOP 5 SECTORS* 1/31/06
- ----------------------------------------------------------------------------------------------------
Financials 29.5%
Energy 15.7
Industrials 10.7
Consumer Discretionary 8.8
Information Technology 8.0
- ----------------------------------------------------------------------------------------------------
Total 72.7%
- ----------------------------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY SECURITIES* 1/31/06
- ----------------------------------------------------------------------------------------------------
Exxon Mobil 5.5%
Bank of America 3.4
Citigroup 2.9
International Business Machines 2.0
J.P. Morgan Chase 1.9
Verizon Communications 1.8
Lehman Brothers Holdings 1.7
Occidental Petroleum 1.6
Bear Stearns 1.5
Burlington Northern Santa Fe 1.5
- ----------------------------------------------------------------------------------------------------
Total 23.8%
- ----------------------------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time.
34
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE LARGE CO GROWTH EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 5.43% (before the deduction of the maximum UBS PACE program fee; 4.63%
after the deduction of the maximum program fee), compared with the 3.91% return
of the Russell 1000 Growth Index (the "Index") and the 6.16% return of the
Lipper Large-Cap Growth Funds median. (Returns for all share classes over
various time periods are shown in the "Performance at a Glance" table on page
37. 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
U.S. large capitalization equities, as measured by the Russell 1000 Growth
Index, posted a return of 3.91% for the six-month period ended January 31, 2006.
From a sector perspective, energy, utilities, telecommunication services and
financials posted the strongest returns in the Index. Conversely, consumer
discretionary and consumer staples were the only sectors to post negative
returns. At an industry level, the top-performing groups included diversified
financials, transportation, and software and services. Industry groups that
struggled during the six-month period included consumer durables and apparel,
food and staples retailing, semiconductors and semiconductor equipment and
retailing.
ADVISORS' COMMENTS
GEAM
Our portion of the Portfolio underperformed the Index during the reporting
period. Nine of the 10 sectors in the Index posted positive returns during the
period, whereas, for our segment of the Portfolio, seven of the 10 sectors
achieved positive returns. Energy, materials and industrials showed the best
absolute returns for our segment during the period. Three sectors (consumer
discretionary, telecom services and healthcare) contributed negative returns and
represented the primary source of relative underperformance. The consumer
discretionary sector was the single largest detractor from performance, as an
overweight in this lagging sector and stock selection weighed on returns. The
underperformance was driven by declines in media companies Liberty Global
(-18%), Comcast (-8%) and Liberty Media (-5%), specialty retailers Bed Bath &
Beyond (-19%) and Home Depot (-6%) and Internet company IAC InterActiveCorp
(-13%), which was eliminated from our portion of the Portfolio during the
period. Within the healthcare sector, our results were helped by strong
performance from UnitedHealth (+14%), but this was not enough to offset declines
from Zimmer (-16%), Amgen (-9%) and Pfizer (-2%). Vodafone, our only telecom
services holding, declined 17% as it faced increased competition in Europe and
continued work to stabilize its struggling Japanese unit.
The primary positive contributors to performance were the energy, materials and
consumer staples sectors. Strong security selection and an overweight position
in energy versus the benchmark added to performance. The strong returns in
energy were driven by Schlumberger (+53%) and Baker Hughes (+28%), our two
positions in the sector.
[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: Thomas F. 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.
35
<Page>
Materials benefited from the strong performance of our sole holding, Monsanto
(+26%), which significantly outperformed the sector return of +9%. The company
continued to report solid results and provided positive guidance for future
results. Not owning consumer staples benefited performance during the six-month
period as the sector return of +0.2% trailed the overall Index. Historically,
our investment process has led to an underweight in this sector, as many of the
companies do not possess the investment criteria required for inclusion in our
portion of the Portfolio.
Despite the challenging environment, our investment strategy, which has provided
strong historical returns, remains unchanged. We continue to focus our efforts
on fundamental, bottom-up stock selection and believe that our segment of the
Portfolio remains well positioned over the long term.
MARSICO CAPITAL
Our portion of the Portfolio significantly outperformed its Index during the
reporting period. There were several contributing factors to our outperformance.
For example, our positions in the information technology sector had a positive
impact on results. Holdings in the technology hardware and equipment industry
(Apple Computer +41% and QUALCOMM +22%) and the technology software and services
industry (Google +39%, prior to being sold) were among our portfolio's largest
contributors to positive performance on an individual stock level for the
period. Another area of strength was in the industrials sector, with FedEx Corp.
(+21%), Burlington Northern Santa Fe (+48%) and Caterpillar (+27%) being top
contributors to performance. On an industry level, the largest positive
contributor to performance was in diversified financials. Chicago Mercantile
Exchange (+41%), Goldman Sachs Group (+32%), Lehman Brothers Holdings (+21%) and
SLM ("Sallie Mae") Corporation (+10%) benefited results. Performance was also
enhanced by an overweight to diversified financial companies as this industry
group had an absolute return of +17%. A select holding and investment posture in
the utilities sector was another area of strength. As of period end, our segment
of the Portfolio's sole utility holding was Schlumberger (+68%), which emerged
as the largest individual contributor to performance for the period. Performance
was aided by our overweight in utilities, as this sector had an absolute return
of +14% for the Index.
Conversely, stock selection in the healthcare sector was a material detractor
from performance. Positions in medical device manufacturer Zimmer Holdings
(-16%), and biotechnology companies Amgen (-11% prior to being sold from our
segment of the Portfolio) and Genentech (-4%) had a significant negative impact
on performance. Additionally, investments in the consumer services industry had
a negative impact on results. Positions in hotel operators MGM Mirage (-18%) and
Four Seasons Hotel (-13%) were the main culprits.
As of January 31, 2006, our Portfolio's economic sector allocations emphasized
consumer discretionary, health care, financials and information technology. Our
segment of the Portfolio had little or no exposure to materials and
telecommunication services.
SSgA
Our portion of the Portfolio generated positive results during the reporting
period, but underperformed the Index. Our investment process incorporates
perspectives on valuation, quality and sentiment. For this six-month period,
these perspectives offered mixed results. Our estimate revision model, a proxy
for earnings growth, served as a strong predictor of stock returns. However, our
earnings-to-price and changes in net operating assets models, which assess the
strength of a company's balance sheet, offered weak performance.
Lackluster stock selection caused our segment of the Portfolio to underperform.
The largest negative performance resided among our technology and consumer
discretionary stocks. For example, an overweight position in Symantec Corp.
detracted from results. Shares of the company plummeted for the final three
months of the reporting period. Symantec, the world's biggest maker of antivirus
software, declined after its profit and sales forecasts missed analysts'
estimates. As a result of this news, McAfee, Inc., the world's number-two
antivirus software provider (also an overweight position), also fell.
Performance detractions among our consumer-related stocks included Michael's
Stores and Coca Cola Enterprises. The stock for Michael's Stores fell despite
second quarter sales rising 9.2% over the past year. Coca Cola Enterprises, the
world's number one soft-drink distributor, dropped sharply after the company's
forecasted earnings fell short of analysts' estimates. As a result, an
overweight to Coca Cola Enterprises dampened performance. At the stock level, an
overweight position in Kos Pharmaceuticals Inc. served as the largest single
detractor from performance. Shares of the drug maker plunged after Merck & Co.
announced plans to seek US approval of rival drugs to fight heart disease by
raising levels of "good" cholesterol.
In contrast, an overweight in USG Corp. positively contributed toward
performance over the reporting period. This provider of building materials
rallied after its third quarter profits increased by $25 million. Adobe Systems,
Inc. was one technology stock that helped to soften losses, as its shares
powered higher after issuing an upbeat financial outlook for 2006 following its
$3.7 billion acquisition of Macromedia Inc.
36
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- ---------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 5.24% 12.49% -4.85% N/A -4.90%
Maximum Sales Charge Class B** 4.79 11.51 -5.61 N/A -5.66
or UBS PACE Program Fee Class C*** 4.85 11.49 -5.58 N/A -5.63
Class Y**** 5.51 13.02 N/A N/A -3.27
Class P***** 5.43 12.82 -4.60 5.60% 6.30
After Deducting Class A* -0.54 6.32 -5.92 N/A -5.94
Maximum Sales Charge Class B** -0.21 6.51 -5.99 N/A -5.85
or UBS PACE Program Fee Class C*** 3.85 10.49 -5.58 N/A -5.63
Class P***** 4.63 11.14 -6.02 4.03 4.71
Russell 1000 Growth Index 3.91 10.81 -4.53 6.56 7.58
Lipper Large-Cap Growth Funds median 6.16 12.44 -3.99 7.04 7.27
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -0.62%, 5-year period, -5.47%; since inception, -6.61%;
Class B--1-year period, -0.83%, 5-year period, -5.55%; since inception, -6.52%;
Class C--1-year period, 3.23%, 5-year period, -5.12%; since inception, -6.29%;
Class Y--1-year period, 5.56%, since inception, -3.98%; Class P--1-year period,
3.84%, 5-year period, -5.57%; 10-year period, 3.98%; since inception, 4.44%.
^ 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 24, 1995,
WHICH IS 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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES
OR ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking capital
appreciation who are able to withstand short-term fluctuations in the equity
markets in return for potentially higher returns over the long term. The value
of the Portfolio changes every day and can be affected by changes in interest
rates, general market conditions and other political, social and economic
developments, as well as specific matters relating to the companies in whose
securities the Portfolio invests. Also, to the extent the Portfolio invests a
large portion of its assets in technology companies, the Portfolio may
experience greater volatility and risk of loss due to unfavorable developments
in the technology sector. It is important to note that an investment in the
Portfolio is only one component of a balanced investment plan.
37
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- ---------------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,052.40 $ 6.47
Hypothetical (5% annual return before expenses) 1,000.00 1,018.90 6.36
Class B Actual 1,000.00 1,047.90 10.99
Hypothetical (5% annual return before expenses) 1,000.00 1,014.47 10.82
Class C Actual 1,000.00 1,048.50 10.84
Hypothetical (5% annual return before expenses) 1,000.00 1,014.62 10.66
Class Y Actual 1,000.00 1,055.10 4.40
Hypothetical (5% annual return before expenses) 1,000.00 1,020.92 4.33
Class P Actual 1,000.00 1,054.30 4.92
Hypothetical (5% annual return before expenses) 1,000.00 1,020.42 4.84
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios: Class
A: 1.25%, Class B: 2.13%, Class C: 2.10%, Class Y: 0.85%, Class P: 0.95%,
multiplied by the average account value over the period, multiplied by 184
divided by 365 (to reflect the one-half year period).
38
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- ----------------------------------------------------------------------------------------------------
Net Assets (mm) $ 1,037.3
Number of Securities 145
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- ----------------------------------------------------------------------------------------------------
Common Stocks 94.7%
ADRs 1.9
Cash Equivalents and Other Assets Less Liabilities 3.4
- ----------------------------------------------------------------------------------------------------
Total 100.0%
- ----------------------------------------------------------------------------------------------------
<Caption>
TOP 5 SECTORS* 1/31/06
- ----------------------------------------------------------------------------------------------------
Information Technology 19.6%
Consumer Discretionary 18.8
Health Care 18.7
Industrials 14.3
Financials 12.2
- ----------------------------------------------------------------------------------------------------
Total 83.6%
- ----------------------------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY SECURITIES* 1/31/06
- ----------------------------------------------------------------------------------------------------
UnitedHealth Group 4.5%
Schlumberger 2.8
SLM 2.8
Apple Computer 2.4
Genentech 2.3
Procter & Gamble 2.3
Microsoft 2.2
Home Depot 2.2
Goldman Sachs 2.0
Zimmer Holdings 2.0
- ----------------------------------------------------------------------------------------------------
Total 25.5%
- ----------------------------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time.
39
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE SMALL/MEDIUM CO VALUE EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 1.87% (before the deduction of the maximum UBS PACE program fee; 1.11%
after the deduction of the maximum program fee), versus the 5.73% return of the
Russell 2500 Value Index (the "Index") and the 7.01% return of the Lipper
Small-Cap Value Funds median. (Returns for all share classes over various time
periods are shown in the "Performance at a Glance" 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 during the six months ended January 31, 2006 were strong,
especially in the small-cap and international arenas. The market was buoyed by
generally solid corporate earnings, as small cap and large cap stocks continued
to post earnings growth rates in the mid-to-high teens. The market was able to
shrug off several factors that weighed against the strong earnings growth,
including the following: inflation continued to reach higher levels, spurred by
high oil prices; the Federal Reserve Board continued to raise short-term
interest rates; an unprecedented level of severe hurricanes wreaked havoc in the
Gulf Coast with repercussions throughout the nation; and the terrorist threats
remained in the back of people's minds as the situation in the Middle East
continues to cause unease. The market's ability to focus on solid corporate
earnings growth likely allowed for positive returns during the reporting period.
ADVISORS' COMMENTS
ARIEL
During the reporting period, our portion of the Portfolio underperformed the
Index. Although we benefited from strong performance in some of our most
contrarian picks--particularly our financial services issues--we were not able
to overcome difficulties in the consumer area which was the second worst
performer of all of the market sectors for the six-month period. For most of
2005, the high-quality consumer companies we favor were in the doldrums. This
was especially true of our media-related holdings. Meanwhile, the volatile and
unpredictable energy-related sectors that we consciously avoid shot the lights
out, significantly contributing to the return of the Index over the period. In
such red hot markets, our conservatively positioned segment of the Portfolio
does not keep up when aggressive issues boom. Conversely, if these same sizzlers
go cold in the bear markets that seem to inevitably follow, our high-quality,
slow and steady eddies are generally insulated from the wreckage--including the
tough market we see ahead. So, despite our relatively sluggish short-term
results, we feel our patient approach is oriented to outperform over the long
haul.
Looking at our segment of the Portfolio in greater detail, in the consumer
discretionary and services sector, Interpublic Group was down 19.2% due to lower
earnings resulting from account losses and costs connected with Sarbanes-Oxley
compliance. We remain optimistic
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE SMALL/MEDIUM CO VALUE EQUITY
INVESTMENTS
ADVISORS:
Ariel Capital Management, LLC ("Ariel"), Opus Capital Management, Inc. ("Opus")
and Metropolitan West Capital Management, LLC ("MetWest Capital")
PORTFOLIO MANAGERS:
Ariel: John W. Rogers;
Opus: Team;
MetWest Capital: Gary W. Lisenbee
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.
OPUS uses quantitative and qualitative analysis to construct a value-oriented
portfolio of stocks that are believed to be fundamentally undervalued,
financially strong, and exhibit strong earnings growth and positive earnings
momentum.
METWEST CAPITAL directly researches smaller capitalization businesses it views
as "high-quality" from an objective perspective. MetWest Capital attempts to
identify companies selling below intrinsic value with clear catalysts to realize
full value within their investment time horizon (typically three years), and
constructs a portfolio of highest conviction ideas. MetWest Capital utilizes a
bottom-up, fundamental, research-driven style that it believes is ideally suited
to the small cap market segment.
40
<Page>
on the turnaround of Interpublic and continue to buy shares of the company.
Additionally, Valassis Communications declined 29.5% on lower earnings guidance
for 2006. This resulted from price concessions on their renegotiated contract
with Procter & Gamble. Nonetheless, we believe Valassis should continue to
deliver strong earnings long term. The company's operating units are performing
well and management continues to signal confidence in the business by
aggressively repurchasing stock.
On a positive note, we had strong performance in several key holdings, including
Janus Capital Group (+39.1%) and Brady Corporation (+17.2%). Janus' shares rose
as a result of strong asset growth and rumors of a management buyout. We are
pleased to see Janus rebound as we have patiently invested in the company since
October 2002. Brady Corporation was up due to strong earnings, driven by revenue
growth and margin improvement in its identification solutions and specialty
materials businesses. We are excited about the company's ability to further
improve operational efficiencies, and we continue to hold the stock.
Over the last six months, we initiated positions in the following companies:
Career Education Corporation, a leader in for-profit higher education; Investors
Financial Services Corp., an asset management services provider; McCormick &
Co., Inc., a global leader in spices, seasonings and flavors; and J.M. Smucker
Company, market leader in fruit spreads, peanut butter and baking goods.
Conversely, we exited our positions in Certegy, Horace Mann Educators, Northern
Trust Corp., Popular, Inc. and Waddell & Reed. Horace Mann and Waddell & Reed
were sold to pursue more compelling investment ideas, while we parted ways with
Northern Trust Corp. as it neared our market cap guidelines. Our position in
Certegy was eliminated on the good news of the company's pending merger with
Fidelity National Financial, Inc. Lastly, we exited Popular, Inc. due to a loss
of faith in management.
As value investors and perennially patient ones, we are strong believers in
regressions to the mean. It is for precisely this reason that we are placing our
bets on what we believe are the tried-and-true, quality companies that have sat
out this rally. We believe these holdings are well-equipped to deliver
consistent, predictable earnings, which will be increasingly important in the
inflationary environment that we expect lies ahead.
OPUS CAPITAL MANAGEMENT
Opus assumed management of a portion of the Portfolio in October 2005. From that
date through January 31, 2006, we slightly trailed the benchmark. Our portion of
the Portfolio was helped by several factors, including favorable stock selection
in the energy, consumer discretionary and financial services sectors. Maverick
Tube was the top contributor to returns during the period, as demand for its
products increased in the wake of increased oil and gas exploration and drilling
efforts. Men's Wearhouse, a retailer of men's dress apparel, was the second
strongest performer for us, riding a continued string of positive earnings
surprises, revisions and same store sales increases. First Cash Financial was
the third best performer. The consumer finance company rose on strong forecasted
growth due to continued expansion.
There were some notable detractors from performance during the period, most
notably investments in homebuilding stocks. These stocks have suffered from
negative sentiment surrounding their ability to continue delivering the strong
earnings growth that they have exhibited over the past five years. We believe
that projected 10%-20% increases in earnings for 2006 and strong backlogs make
homebuilding stocks attractive options for the foreseeable future. MDC Holdings,
a homebuilder with operations mainly in the western US, was the worst performing
homebuilding stock in our portion of the Portfolio. Its shares fell even though
the company easily outpaced earnings estimates for the fourth quarter and full
year, 2005. Additional detractors included poor stock selection in health care
and an overweight in auto and transportation stocks. SFBC International, which
runs drug trials for pharmaceutical companies, was the biggest detractor from
our segment's performance on an individual stock level. Negative publicity
stemming from alleged mishandling of patients in its trials was the main
culprit. However, the company has recently made a strong comeback after
reorganizing its management team and reaffirming strong trial backlog. CNF, a
truck transport and logistics management firm, was the worst performer in auto
and transportation due to a weaker than expected earnings release in the
company's fourth quarter. Our outlook on the company's earnings potential and
its current valuation make us want to be long-term holders of the stock.
METROPOLITAN WEST CAPITAL MANAGEMENT
Metropolitan West Capital Management assumed management of a portion of the
Portfolio in October 2005. From that date through January 31, 2006, our portion
of the Portfolio posted strong absolute returns, but lagged the Index.
On the positive side, stock selection and an underweight in the weak utilities
sector contributed positively to relative performance over the reporting period.
Stock selection was also strong in the energy sector, as each one of our energy
investments (Veritas DGC, Oceaneering International and Quicksilver Resources)
appreciated more than 25%. Within an industry framework, stock selection was
41
<Page>
particularly strong in transportation, led by AMR Corporation, the parent
company of American Airlines (up 94%). Elsewhere, our automotive holdings
performed well, with Aftermarket Technology and Thor Industries being notable
contributors. In the media industry, Central European Media Enterprises rose
over 25%.
On the negative side, stock selection decisions in the materials and information
technology sectors detracted from relative performance over the reporting
period. During a very strong market, relatively flat returns of a few holdings,
including Neenah Paper in materials and Manhattan Associates in information
technology, stymied the performance of our portion of the Portfolio relative to
the Index. Stock selection decisions in the consumer staples sector also
detracted from results. Troubled stocks in this sector included Fresh Del Monte
Produce, Performance Food Group and Delta & Pine Land Company. We believe these
stocks' recent weakness represents an overreaction by the market to short-term
news, while their fundamentals appear intact, and we remain confident in these
holdings' potential over the long term.
Our sector over- and underweights are a byproduct of our bottom-up stock
selection decisions. That said, certain industry exposures negatively impacted
performance. These included our overweight positions in the underperforming
media, automotive and healthcare equipment industries. Strong stock selection in
both media and automotive, however, counteracted much of the negative impact
over the reporting period.
Importantly, higher-risk and lower-quality stocks appeared to drive market
performance during the reporting period. To attempt to control risk, we
generally invest in companies of higher quality than those of the Index, which
puts a drag on performance in times of small cap market strength. Over the long
term, however, we believe our focus on quality should enable us to add value
with lower volatility, relative to the Index.
Over the coming quarters, we believe the US equity market will continue to
benefit modestly from steady global economic growth within a framework of low
and relatively stable inflation. Nonetheless, as we saw over the reporting
period, the tide will not raise all boats equally. This highlights the
importance of diligent fundamental research on individual companies and
INVESTING in companies (a hallmark of our investment style) versus merely
TRADING stocks.
42
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- ---------------------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 1.80% 11.35% 10.70% N/A 13.31%
Maximum Sales Charge Class B** 1.37 10.42 9.85 N/A 12.53
or UBS PACE Program Fee Class C*** 1.37 10.46 9.88 N/A 12.47
Class Y**** 1.98 11.75 11.01 N/A 14.16
Class P***** 1.87 11.49 10.94 11.50% 11.03
After Deducting Class A* -3.80 5.23 9.46 N/A 12.08
Maximum Sales Charge Class B** -2.73 5.95 9.57 N/A 12.41
or UBS PACE Program Fee Class C*** 0.55 9.56 9.88 N/A 12.47
Class P***** 1.11 9.84 9.28 9.84 9.37
Russell 2500 Value Index 5.73 18.65 14.56 14.49 14.70
Lipper Small-Cap Value Funds median 7.01 17.57 14.30 13.34 13.14
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -2.74%; 5-year period, 9.95%; since inception, 11.25%;
Class B--1-year period, -2.00%; 5-year period, 10.09%; since inception, 11.60%;
Class C--1-year period, 1.35%; 5-year period, 10.39%; since inception, 11.67%;
Class Y--1-year period, 3.30%; 5-year period, 11.52%; since inception, 13.34%;
Class P--1-year period, 1.57%; 5-year period, 9.79%; 10-year period, 9.37%;
since inception, 8.97%.
^ 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 24, 1995, WHICH IS 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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES
OR ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking capital
appreciation who are able to withstand short-term fluctuations in the equity
markets in return for potentially higher returns over the long term. The value
of the Portfolio changes every day and can be affected by changes in interest
rates, general market conditions and other political, social and economic
developments, as well as specific matters relating to the companies in whose
securities the Portfolio invests. It is important to note that an investment in
the Portfolio is only one component of a balanced investment plan. In addition,
small- and mid-cap companies are typically subject to a greater degree of change
in earnings and business prospects than are larger, more established companies.
Therefore, they are considered to have a higher level of volatility and risk.
43
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- ---------------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,018.00 $ 6.56
Hypothetical (5% annual return before expenses) 1,000.00 1,018.70 6.56
Class B Actual 1,000.00 1,013.70 10.91
Hypothetical (5% annual return before expenses) 1,000.00 1,014.37 10.92
Class C Actual 1,000.00 1,013.70 10.51
Hypothetical (5% annual return before expenses) 1,000.00 1,014.77 10.51
Class Y Actual 1,000.00 1,019.80 4.94
Hypothetical (5% annual return before expenses) 1,000.00 1,020.32 4.94
Class P Actual 1,000.00 1,018.70 5.90
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: 1.29%, Class B: 2.15%, Class C: 2.07%, Class Y: 0.97%, 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 1/31/06
- ----------------------------------------------------------------------------------------------------
Net Assets (mm) $ 464.2
Number of Securities 189
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- ----------------------------------------------------------------------------------------------------
Common Stocks and Warrants 96.8%
ADR 0.6
Cash Equivalents and Other Assets Less Liabilities 2.6
- ----------------------------------------------------------------------------------------------------
Total 100.0%
- ----------------------------------------------------------------------------------------------------
<Caption>
TOP 5 SECTORS* 1/31/06
- ----------------------------------------------------------------------------------------------------
Financials 25.4%
Industrials 24.4
Consumer Discretionary 20.5
Information Technology 7.9
Health Care 7.5
- ----------------------------------------------------------------------------------------------------
Total 85.7%
- ----------------------------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY SECURITIES* 1/31/06
- ----------------------------------------------------------------------------------------------------
HCC Insurance Holdings 2.1%
Ambac Financial Group 1.9
MBIA 1.8
Markel 1.7
Investors Financial Services 1.7
Pitney Bowes 1.7
Black & Decker 1.6
IDEX Corp. 1.6
Mohawk Industries 1.6
Career Education 1.4
- ----------------------------------------------------------------------------------------------------
Total 17.1%
- ----------------------------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time.
45
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE SMALL/MEDIUM CO GROWTH EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 5.37% (before deduction of the maximum UBS PACE program fee; 4.58%
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 10.29% and 10.46%, respectively. (Returns for all share classes over
various time periods are shown in the "Performance at a Glance" table on page
49. 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
Despite the effects of rising energy prices, a continuation of interest rate
hikes by the Federal Reserve Board and the largest natural disaster in US
history, stocks rose across the capitalization and style spectrums during the
reporting period. August saw weak returns followed by a rise in the markets
during September, even in the wake of Hurricanes Katrina and Rita. The fourth
quarter saw a solid rally in November, flanked by down months, but the strength
of November helped take most indices to mid-to-high single-digit gains for the
period. Over the six months ended January 31, 2006, the Russell 2000 Index rose
8.50%, the Russell 2000 Growth Index gained 10.71%, while the Russell Midcap
Index posted an 8.27% return. In a reversal of the first half of 2005, growth
strongly outperformed value across all capitalizations. Within the Russell 2500
Growth Index, the Energy sector returned 27% and, in inverse relation due in
part to the effects of rising energy prices, the consumer-related sectors were
the worst performers, declining low single digits.
ADVISORS' COMMENTS
DELAWARE MANAGEMENT COMPANY
Our portion of the Portfolio generated positive results during the reporting
period, but underperformed the Index. Overall, both stock selection and sector
positioning detracted from performance.
Amylin Pharmaceuticals was the top contributor to performance over the period,
jumping 108%. This was largely in response to positive results regarding its
diabetes drug. Salesforce.com returned 101% during the same period, and was our
second-biggest contributor to performance.
Sector selection hindered performance, driven primarily by an underweight in
energy. We were proven correct in the fourth quarter of 2005 that energy stocks
had gotten ahead of themselves. We continue to believe that a secular
demand-driven shift in the energy sector is creating opportunities for select
energy-related companies to sustain growth independent of short-term oil-price
volatility. Accordingly, we took advantage of the decline in energy stocks
during the fourth quarter to reduce our underweight in the sector.
Despite the success of several healthcare stocks, two of our holdings in the
sector detracted from results late in the reporting period. Encysive
Pharmaceuticals fell almost 26% over the reporting period, largely as a
[SIDENOTE]
UBS PACE SELECT ADVISORS TRUST - UBS PACE SMALL/MEDIUM CO GROWTH EQUITY
INVESTMENTS
ADVISOR:
Delaware Management Company, Inc. ("Delaware Management Company"),
Forstmann-Leff Associates, LLC ("Forstmann-Leff") and Riverbridge Partners, LLC
("Riverbridge")
PORTFOLIO MANAGERS:
Delaware Management Company: Team, led by Marshall T. Bassett;
Forstmann-Leff: Team;
Riverbridge: Team, led by Mark Thompson
OBJECTIVE:
Capital appreciation.
INVESTMENT PROCESS:
DELAWARE MANAGEMENT COMPANY 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.
FORSTMANN-LEFF seeks fundamentally strong and dynamic small and mid cap
companies that are trading at a discount to their growth rates. Forstmann-Leff's
goal is to ascertain a dynamic of growth before it manifests in consensus
estimates. Forstmann-Leff believes that it can be successful because the small
and mid cap market is inherently less efficient than the large cap market.
RIVERBRIDGE believes that earnings power determines the value of a franchise.
Riverbridge focuses on companies that are viewed as building their earnings
power and building the intrinsic value of the company over long periods of time.
Riverbridge looks to invest in high-quality growth companies that demonstrate
the ability to sustain strong secular earnings growth, regardless of overall
economic conditions.
46
<Page>
result of positive developments regarding a competing drug. Since Encysive's own
drug should reach market 18 months ahead of its competitor and the competitor
still has approval hurdles, we believe the market overreacted, and we continue
to hold the stock. Rigel Pharmaceutical was our portion of the Portfolio's worst
performer, falling over 60% over the period after its allergy-related drug
failed. Given the quality of Rigel's drug discovery platform and its
partnerships with major pharmaceutical firms, we believe the market overreacted
again, and we bought more of the stock at extremely depressed levels.
We enter 2006 fairly optimistic about the overall economy and the potential for
positive stock performance. An end to Federal Reserve Board rate increases and a
leveling in energy prices may represent a favorable economic environment for
U.S. businesses. We are comfortable with our current weights and believe that we
will be able to participate in a strong market environment. Changes in portfolio
positioning throughout the past year have reduced our segment of the Portfolio's
sensitivity to the over- or underperformance of any particular sector. Still, we
continue to focus on stock selection--finding and holding individual companies
that have delivered, and that we believe will be able to continue to deliver
strong sales and profit growth.
RIVERBRIDGE
Riverbridge assumed management of a portion of the Portfolio in October 2005.
From that date through January 31, 2006, we performed largely in line with the
benchmark. The primary contributor to our performance during this time was stock
selection. The most significant contributor to performance was Intuitive
Surgical, which is well-known for its da Vinci, a robotically controlled
surgical system. We eliminated the stock from our holdings as its market
capitalization exceeded our size threshold. W-H Energy Services also made a
significant contribution to performance as it increased approximately 50% over
the period. A sterling earnings report, coupled with the strong investor
interest in the energy sector, propelled this stock higher.
The most significant detracting stock position was Performance Food Group. The
company lowered internal sales growth targets for 2006 after making the decision
to rationalize some lower-margin business. Profitability was dampened by
start-up costs associated with capacity expansion in its segment serving chain
restaurants. In addition, higher health care, fuel and insurance costs
challenged most foodservice distributors in general. Verint Systems also
struggled as it announced 2006 earnings guidance, which fell modestly short of
Wall Street analyst expectations.
From a sector perspective, the consumer discretionary sector benefited
performance the most relative to the benchmark. We also benefited from stock
selection in the energy sector. Conversely, our stock picking hindered
performance in the consumer staples sector. Our significant underweight of the
financials sector also detracted from relative performance.
Riverbridge does not expect positioning to change meaningfully at this time. We
have historically been mindful of turnover in our portion of the Portfolio. The
Portfolio segment we advise remains positioned with many companies that have
very little debt on their balance sheets and who should capable of internally
financing their future growth. Consequently, we do not believe the holdings in
our segment of the Portfolio will be very vulnerable to borrowing or raising
capital to grow their businesses.
FORSTMANN-LEFF
Forstmann Leff assumed management of a portion of the Portfolio in October 2005.
From that date through January 31, 2006, we lagged the Index. Early in the
period, underperformance was primarily attributable to two unrelated,
company-specific occurrences within the health care services industry.
Additionally, our energy related holdings were particularly sensitive to the
pullback in energy prices. However, during January 2006, our portion of the
Portfolio rebounded and outpaced the Index
SFBC International is a contracted research outsourcer (CRO) that conducts Phase
I-IV clinical trials for pharmaceutical, biotech and generic drug companies. In
November 2005, the CRO industry was the subject of a critical article published
by BLOOMBERG NEWS. Although we believed the majority of those allegations to be
unfair and unsubstantiated, investor sentiment became so negative that we
liquidated the position. Apria Healthcare provides home-based health care
services such as respiratory therapy, infusion services and home medical
equipment. The company reduced its near-term growth expectations and undertook a
restructuring to address the shortcomings that had developed while it considered
selling certain or all of its assets. We are pleased with the changes and
believe the company's longer-term growth prospects are not fully reflected in
the current share price.
47
<Page>
Holdings in the energy sector also detracted from performance even though we are
only neutrally allocated to the sector. Because the energy companies in our
segment of the Portfolio are more geared for growth, the fourth quarter oil and
gas price retreats were amplified in our companies' share prices. Thus far in
the new year, several have rebounded in concert with rising crude oil prices.
Within the three largest sectors in the Index, our segment's holdings
outperformed in the consumer discretionary and technology sectors, and would
have outperformed in healthcare except for the two events described above. The
strong advance in consumer discretionary holdings was led by retailers such as
Coldwater Creek, Barnes & Noble and AnnTaylor. Elsewhere, an improved outlook on
capital expenditures by telecommunications companies led to very good
performance in Redback Networks, Syniverse Holdings and Akamai Technologies.
We continue to believe investment success will be derived more from the early
identification of small and dynamic companies that are growing as opposed to
positioning for macroeconomic themes, as they can be very difficult to predict
accurately. As always, we are devoting our efforts to identifying those
companies that appear poised to achieve growth in excess of the consensus. Our
portion of the Portfolio remains broadly diversified at the sector level as well
as in its individual holdings.
We continue to place an emphasis on companies that have good visibility in their
growth prospects and that actually have earnings in their growth projections. To
a much lesser degree, we hold a few small and selective positions in companies
that are in the biotech and technology areas where market potential seems to
drive valuation rather than current cash flow generation.
48
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- -----------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 5.19% 14.04% 2.59% N/A 1.43%
Maximum Sales Charge Class B** 4.72 13.04 1.73 N/A 0.59
or UBS PACE Program Fee Class C*** 4.84 13.21 1.81 N/A 0.66
Class Y**** 5.48 14.59 N/A N/A 4.73
Class P***** 5.37 14.34 2.84 11.57% 10.48
After Deducting Class A* -0.60 7.77 1.43 N/A 0.33
Maximum Sales Charge Class B** 0.24 8.20 1.38 N/A 0.43
or UBS PACE Program Fee Class C*** 3.94 12.24 1.81 N/A 0.66
Class P***** 4.58 12.63 1.31 9.91 8.84
Russell 2500 Growth Index 10.29 20.62 2.99 8.13 8.18
Lipper Mid-Cap Growth Funds median 10.46 20.87 1.13 9.41 9.20
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, -2.60%; 5-year period, 0.22%; since inception, -1.07%;
Class B--1-year period, -2.25%; 5-year period, 0.18%;since inception, -0.96%;
Class C--1-year period, 1.36%; 5-year period, 0.58%;since inception, -0.74%;
Class Y--1-year period, 3.47%; since inception, 3.27%; Class P--1-year period,
1.74%; 5-year period, 0.08%; 10-year period, 8.67%; since inception, 8.17%.
^ 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 24, 1995, WHICH IS
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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES OR
ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking capital
appreciation who are able to withstand short-term fluctuations in the equity
markets in return for potentially higher returns over the long term. The value
of the Portfolio changes every day and can be affected by changes in interest
rates, general market conditions and other political, social and economic
developments, as well as specific matters relating to the companies in whose
securities the Portfolio invests. It is important to note that an investment in
the Portfolio is only one component of a balanced investment plan. In addition,
small- and mid-cap companies are typically subject to a greater degree of change
in earnings and business prospects than are larger, more established companies.
Therefore, they are considered to have a higher level of volatility and risk.
Also, to the extent the Portfolio invests a large portion of its assets in
technology companies, the Portfolio may experience greater volatility and risk
of loss due to unfavorable developments in the technology sector.
49
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- -------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,051.90 $ 6.83
Hypothetical (5% annual return before expenses) 1,000.00 1,018.55 6.72
Class B Actual 1,000.00 1,047.20 11.51
Hypothetical (5% annual return before expenses) 1,000.00 1,013.96 11.32
Class C Actual 1,000.00 1,048.40 10.89
Hypothetical (5% annual return before expenses) 1,000.00 1,014.57 10.71
Class Y Actual 1,000.00 1,054.80 4.87
Hypothetical (5% annual return before expenses) 1,000.00 1,020.47 4.79
Class P Actual 1,000.00 1,053.70 5.85
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: 1.32%, Class B: 2.23%, Class C: 2.11%, Class Y: 0.94%, 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).
50
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- --------------------------------------------------------------------------------
Net Assets (mm) $ 468.4
Number of Securities 199
</Table>
<Table>
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- --------------------------------------------------------------------------------
Common Stocks 95.3%
ADRs 0.3
Cash Equivalents and Other Assets Less Liabilities 4.4
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
TOP FIVE SECTORS* 1/31/06
- --------------------------------------------------------------------------------
Information Technology 28.4%
Health Care 22.0
Industrials 13.4
Consumer Discretionary 12.8
Financials 8.2
- --------------------------------------------------------------------------------
Total 84.8%
- --------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
TOP TEN EQUITY SECURITIES* 1/31/06
- --------------------------------------------------------------------------------
Microsemi 2.3%
W-H Energy Services 1.6
Pediatrix Medical Group 1.3
Chemed 1.2
Corporate Executive Board 1.2
Stericycle 1.1
Informatica 1.1
Covance 1.0
F5 Networks 1.0
ADC Telecommunications 1.0
- --------------------------------------------------------------------------------
Total 12.8%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time.
51
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERNATIONAL EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 18.33% (before the deduction of the maximum UBS PACE program fee;
17.44% 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 18.29%, and the Lipper International Large-Cap Growth Funds median,
which returned 20.29%. (Returns for all share classes over various time periods
are shown in the "Performance at a Glance" table on page 54. 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 returns in the six months
ending January 2006. This was in spite of higher interest rates in the US and
Europe. The Japanese equity market, having promised much but delivered little in
early 2005, sparked into life in the second half of the year. Japan registered
among the best performances of the period. Emerging markets continued to do
well, with the commodity-rich markets such as Brazil leading the way. In
contrast, the developed markets of Asia and Europe were relatively dull,
although they did generate double-digit gains over the reporting period.
The best performing sectors were materials and industrials, reflecting commodity
price strength and robust global growth. Financials and information technology
also did well. Telecom services was the only sector that declined, falling 8.7%
over the period. Traditionally defensive sectors such as consumer staples,
health care and utilities all lagged the market, while energy also failed to
keep pace, as earnings momentum began to moderate and investors took profits.
ADVISORS' COMMENTS
MARTIN CURRIE
Our portion of the Portfolio significantly outperformed its Index over the
reporting period. Stock selection was the main driver, and asset allocation was
also favorable. Our perseverance in Japan paid off handsomely, and the emphasis
on domestic stocks and reflation assets was a highly successful strategy. Mizuho
Financial and Orix Corporation (another financial) were outstanding performers,
as was Aeon, a Japanese retailer, all generating very positive returns. Our
non-Index investments in emerging markets were rewarding, including Petrobras, a
Brazilian oil company, as it rose more than 80%.
We were right to be underweight in Europe during the period. Stock selection in
Europe was positive. Vallourec was the top-performing stock in our portion of
the Portfolio, rising more than 90% over the six months. Its shares benefited
from record orders as sales to the energy industry accelerated to new levels.
Although energy companies were mostly lackluster performers during the period,
our choice of OMV, an Austrian integrated oil group, did well, aided by its
exposure to the emerging economies of Central and Eastern Europe.
[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 MANAGERS:
Martin Currie: Team, led by James Fairweather;
Mondrian: Team;
JP Morgan Fleming Asset Management: Beltran Lastra and Jaco Venter
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 stock markets.
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 (i.e., Europe, Australasia, Far
East) portfolio that reflects what Martin Currie believes are 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.
52
<Page>
Our telecommunications holdings continued to detract from returns with Deutsche
Telecom, Telecom Italia and Vodafone each underperforming. Following a further
review, all three holdings were sold.
True to our philosophy and process, we continued to emphasize quality companies
undergoing positive change, with above-average growth prospects and trading on
attractive valuations. At present, that leads us to be overweight in financials,
with a continued emphasis on Japanese banks. We are also overweight in
industrials, although this is highly stock-specific and reflects a continuation
of our positive assessment on stocks such as Vallourec, ABB and Safran. We find
few opportunities among consumer staples stocks, and Aeon remains our sole
investment in that sector. Emerging markets remain a source of attractive
investments in our view, and we recently purchased PT Telekom in Indonesia.
JP MORGAN FLEMING ASSET MANAGEMENT INC.
During the reporting period, our portion of the Portfolio generated strong
results and performed in line with its benchmark.
Our segment is diversified by both sector and region, with stock selection as
the primary source of performance. At the regional level, we added value in
Europe ex-UK and the Pacific Rim, but our focus on fundamentals failed to
capture the sentiment-led rally in Japan. However, in Japan, our overweight in
Daiwa Securities, the country's second largest securities company, aided returns
as it benefited from the rally in the domestic stock market. Better than
expected second quarter 2005 results announced during November confirmed Daiwa
Securities' relative strength versus other securities companies. The company's
earnings sources continue to diversify and management is showing a growing
confidence in the company's outlook. Within the wholesale business, the company
has benefited from its partnership with Sumitomo Mitsui Banking Corp, especially
in its trading division. Daiwa Securities is also aiming to strengthen its
investment banking division going forward. Within the retail business during the
second quarter of 2005, Daiwa Securities' sales of stock-type investment trusts
reached their highest amount in three years. We believe that when households
move their financial assets from bank deposits to more market-oriented assets,
the company's share price should benefit.
From a sector perspective, exposure to retail, insurance and property companies
aided returns. In contrast, our media, autos and telecom stocks detracted from
performance overall. In media, an underweight position in Softbank (Japan) held
back performance as the stock surged given its approval to enter the Japanese
mobile phone market. The news was welcomed by market participants, especially
since the permission came on the back of the company's long campaign for entry
into the market. Toward the end of the period, the company's stock rose further
as retail investors rushed to buy its shares following a three-for-one stock
split on December 27, 2005, which made its shares more accessible. Our
underweight positioning on Softbank remains unchanged since we believe the
valuation of its stock is extremely expensive.
MONDRIAN INVESTMENT PARTNERS
During the six-month reporting period, our portion of the Portfolio generated a
strong absolute return, but it lagged the Index on a relative basis.
Over the period, market selection was mainly hurt by an underweight position in
Japan, as it rose 38.7%. As of January 31, 2006, our segment of the Portfolio
had a weighting of 15.4% in Japan versus a 25.5% weighting in the MSCI EAFE
index. Over the last few years, Japan has benefited from the strength of the
global economy, especially activity levels in the US and China. This, in turn,
has supported demand for Japanese products. We recognize the recent economic
developments, but believe the overall market is relatively more expensive than
most other world markets. Elsewhere, our overweight position in Spain (+12.2)
and underweight position in New Zealand (-2.8) also negatively affected
performance.
In terms of stock selection, it was positive in the larger European markets,
such as France, Germany, Italy and the UK. This was offset, however, in the
Pacific region, notably in Australia and Japan.
The negative stock and market selection was partially offset by positive
currency selection. With most international currencies weakening against the
dollar, our underweight position in the Japanese yen helped relative
performance.
53
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- -----------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 18.08% 22.93% 4.14% N/A 3.91%
Maximum Sales Charge Class B** 17.55 21.83 3.08 N/A 2.94
or UBS PACE Program Fee Class C*** 17.58 22.01 3.26 N/A 3.09
Class Y**** 18.28 23.46 4.45 N/A 4.79
Class P***** 18.33 23.44 4.35 6.25% 6.66
After Deducting Class A* 11.59 16.20 2.98 N/A 2.77
Maximum Sales Charge Class B** 12.55 16.83 2.73 N/A 2.76
or UBS PACE Program Fee Class C*** 16.58 21.01 3.26 N/A 3.09
Class P***** 17.44 21.60 2.79 4.67 5.07
MSCI EAFE Free (net LU) (in USD) Index 18.29 22.67 5.79 6.41 6.79
Lipper International Large-Cap Growth Funds median 20.29 23.46 2.21 5.54 5.35
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 7.44%; 5-year period, 1.85%; since inception, 1.64%;
Class B--1-year period, 7.55%; 5-year period, 1.67%; since inception, 1.63%;
Class C--1-year period, 11.81%; 5-year period, 2.20%; since inception, 1.97%;
Class Y--1-year period, 14.17%; since inception, 3.64%; Class P--1-year period,
12.30%; 5-year period, 1.74%; 10-year period, 4.38%; since inception, 4.53%.
^ 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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES OR
ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking capital
appreciation who are able to withstand short-term fluctuations in the equity
markets in return for potentially higher returns over the long term. The value
of the Portfolio changes every day and can be affected by changes in interest
rates, general market conditions and other political, social and economic
developments, as well as specific matters relating to the companies in whose
securities the Portfolio invests. It is important to note that an investment in
the Portfolio is only one component of a balanced investment plan. The value of
the Portfolio's investments in foreign securities may fall due to adverse
political, social, and economic developments abroad and due to decreases in
foreign currency values relative to the US dollar. These risks are greater for
investments in emerging market issuers than for issuers in more developed
countries.
54
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- -------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,180.80 $ 8.41
Hypothetical (5% annual return before expenses) 1,000.00 1,017.49 7.78
Class B Actual 1,000.00 1,175.50 13.71
Hypothetical (5% annual return before expenses) 1,000.00 1,012.60 12.68
Class C Actual 1,000.00 1,175.80 12.78
Hypothetical (5% annual return before expenses) 1,000.00 1,013.46 11.82
Class Y Actual 1,000.00 1,182.80 5.89
Hypothetical (5% annual return before expenses) 1,000.00 1,019.81 5.45
Class P Actual 1,000.00 1,183.30 6.49
Hypothetical (5% annual return before expenses) 1,000.00 1,019.26 6.01
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios: Class
A: 1.53%, Class B: 2.50%, Class C: 2.33%, Class Y: 1.07%, Class P: 1.18%,
multiplied by the average account value over the period, multiplied by 184
divided by 365 (to reflect the one-half year period).
55
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- --------------------------------------------------------------------------------
Net Assets (mm) $ 981.1
Number of Securities 531
</Table>
<Table>
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- --------------------------------------------------------------------------------
Equities (common and preferred stocks, warrants and rights) 98.4%
Futures and Forward Foreign Currency Contracts 0.0**
Cash Equivalents and Other Assets Less Liabilities 1.6
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
REGIONAL ALLOCATION* 1/31/06
- --------------------------------------------------------------------------------
Europe 63.0%
Asia 27.7
Australia/New Zealand 6.0
Emerging Markets 1.7
Futures and Forward Foreign Currency Contracts 0 0**
Cash Equivalents and Other Assets Less Liabilities 1.6
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
TOP FIVE COUNTRIES (EQUITY INVESTMENTS)* 1/31/06
- --------------------------------------------------------------------------------
Japan 22.8%
United Kingdom 22.7
France 8.8
Germany 6.2
Australia 5.5
- --------------------------------------------------------------------------------
Total 66.0%
- --------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
TOP 5 SECTORS* 1/31/06
- --------------------------------------------------------------------------------
Financials 30.4%
Consumer Discretionary 13.0
Materials 10.3
Energy 9.8
Industrials 7.4
- --------------------------------------------------------------------------------
Total 70.9%
- --------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
TOP TEN EQUITY SECURITIES* 1/31/06
- --------------------------------------------------------------------------------
BP 2.9%
GlaxoSmithKline 2.4
Royal Dutch Shell 1.8
RWE AG 1.7
Toyota Motor 1.6
Total SA 1.5
Takeda Pharmaceutical 1.5
Royal Bank of Scotland Group 1.4
UniCredito Italiano 1.4
Telefonica SA 1.3
- --------------------------------------------------------------------------------
Total 17.5%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time.
** Weightings represent less than 0.05% of the Portfolio's net assets as of
January 31, 2006.
56
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio's Class P shares
returned 27.34% (before the deduction of the maximum UBS PACE program fee;
26.38% after the deduction of the maximum program fee), compared with the 31.53%
return of the MSCI Emerging Markets Free (EMF) Index (the "Index") and the
31.74% return of the Lipper Emerging Markets Funds median. (Returns for all
share classes over various time periods are shown in the "Performance at a
Glance" table on page 59. 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
The six-month period ended January 31, 2006, was characterized by yet more
strength in the price of oil, which spelled mixed fortunes for the emerging
markets. Oil-rich markets, such as Russia and Mexico, benefited, but net oil
importers like Thailand were hurt. Nevertheless, the emerging markets asset
class managed to sustain its record of outperformance against the developed
world as emerging markets were buoyed by a supportive global backdrop.
Meanwhile, a number of Latin American countries, as well as South Africa, were
propped up by the global appetite for raw materials. US growth remained on a
stable upward path, with the Federal Reserve Board enacting a series of interest
rate hikes to moderate the pace of economic growth. In addition, improving
economic conditions in Japan gave further reason for optimism, while indications
suggested that Europe's economy could provide further impetus to global growth
in 2006.
ADVISORS' COMMENTS
GARTMORE GLOBAL PARTNERS
Our portion of the Portfolio generated strong results during the reporting
period and outperformed the Index. Our country allocation strategy made a
significant positive contribution to performance. Our most successful positions
were overweights in Brazil and Russia, two of the top-performing emerging
markets during the reporting period. The Brazilian market gained strength as
investors began to anticipate further monetary easing. This scenario led to an
expected pickup in economic activity following a 75-basis-point cut in interest
rates in January 2006. An underweight in Chile also enhanced results, as its
market was a relative laggard. We have avoided taking an exposure to Chile
because we have felt that the market has been relatively expensive and has been
affected by political uncertainty.
Sector allocation was somewhat detrimental to performance during the period.
This was largely attributable to residual cash holdings. These typically hinder
performance in rising markets. While our underweight in the telecommunications
sector generated positive returns, this was counteracted by an overweight in the
poorly performing information technology sector.
At the stock level, our selection added value. As was true during the previous
six-month period, our particular strength was identifying
[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.
57
<Page>
top-performing stocks in the financial and consumer discretionary sectors. Our
above-Index exposure to retailers Lojas Renner S.A. (Brazil) and Hyundai
Department Store Co., Ltd. (Korea) added considerably to performance. This lends
credence to our view that domestic consumption in both countries is likely to
make a greater contribution to overall growth. In financials, our out-of-Index
position in Turkish stock DenizBank was among our top performers, as was our
overweight in Korean financial bank Hana Financial Holdings. The avoidance of
certain stocks also served to boost our relative returns. For example, we had no
exposure to Indonesian car maker PT Astra International, which declined more
than 16% during the reporting period due to poor conditions in the sector as
well as earnings downgrades.
Among our segment's least-successful stock positions were overweights in a
number of underperforming Taiwanese technology stocks, including Compal
Electronics, Inc., Powerchip Semiconductor Corp. and Waffer Technology Corp. The
Taiwanese market was a laggard throughout the year, hindered by its exposure to
expensive oil imports, deteriorating asset quality in the financial sector and
continued political uncertainty involving the Chinese mainland. These factors,
however, appear to be increasingly priced in and/or expected to improve during
the next 12 to 18 months.
MONDRIAN INVESTMENT PARTNERS
During the reporting period, our portion of the Portfolio lagged the Index after
being hurt by an overweight position in the weak-performing Malaysian market.
However, this was partially offset by strong stock selection in the country, as
well as our underweight position in Taiwan. In terms of stock selection, there
were other bright spots as well, including Thailand. However, this was not
enough to offset the poor performance by holdings in China and Korea. During the
period, some of our Asian stocks declined, including Maxis Communications and
Plus Expressways in Malaysia, as investors sold shares due to the relatively
slower growth prospects in the country compared to other markets. However, as
mentioned, stock selection as a whole in the country was positive, and we
continue to view Malaysia as an attractively valued market, particularly on a
risk-adjusted basis.
In the European, African and Middle Eastern emerging market regions, our stock
selection in Israel was strong as Bank Hapoalim rose 42.4%. The Egyptian stock
market performed very strongly, but our stock selection, particularly Mobinil,
detracted from relative returns despite rising more than 20% over the period. In
Russia, we held an underweight position, based on a cautious long term view of
the price of oil. This was a drag on performance as its market, led by energy
stocks, excelled. That said, our holding in Russian oil stock Lukoil was an
outstanding performer, returning 86% over the period. Our investment process is
based on balancing the expected return against the return that would result if a
'worst case' scenario came to pass. Therefore, we continue to believe that
valuations in Russia on a risk-adjusted basis are not compelling enough, and we
remain underweight.
Elsewhere, our overweight position in Brazil helped performance, although our
stock selection lagged the Index somewhat. Nevertheless our strongest performing
stocks over the period, Itausa and Petrobras, were in Brazil, the former being
the holding company for one of Brazil's largest private banks. Itausa benefited
from the country's continued economic recovery, and Petrobras, the national oil
company, also performed well. In contrast Ultrapar, a petrochemical company,
fell 6.3%, and VCP, a paper and pulp manufacturer, rose only 8.2%, which
detracted from relative returns. Both companies suffered from high input costs
and a weak pricing environment. We believe both companies remain attractive for
their long-term potential. In Mexico, as in Brazil, our security selection hurt
relative returns. For example, Grupo Aeroportuario del Sureste fell 9.2% during
the period as tourist arrivals slumped after Hurricane Wilma destroyed vacation
facilities in the Yucatan peninsula.
58
<Page>
PERFORMANCE AT A GLANCE (UNAUDITED)
<Table>
<Caption>
SINCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06 6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- -----------------------------------------------------------------------------------------------------------------
Before Deducting Class A* 27.24% 42.18% 13.06% N/A 13.99%
Maximum Sales Charge Class B** 26.67 40.79 12.10 N/A 14.71
or UBS PACE Program Fee Class C*** 26.83 41.05 12.18 N/A 14.64
Class Y**** 27.62 42.83 N/A N/A 14.47
Class P***** 27.34 42.27 13.28 4.42% 4.97
After Deducting Class A* 20.25 34.34 11.78 N/A 12.75
Maximum Sales Charge or Class B** 21.67 35.79 11.85 N/A 14.60
UBS PACE Program Fee Class C*** 25.83 40.05 12.18 N/A 14.64
Class P***** 26.38 40.15 11.59 2.86 3.41
MSCI Emerging Markets Free (EMF) Index 31.53 49.18 18.90 7.39 7.60
Lipper Emerging Markets Funds median 31.74 47.66 18.54 8.29 8.10
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum sales charge or UBS PACE program fee, were as follows:
Class A--1-year period, 21.78%; 5-year period, 12.09%; since inception, 10.62%;
Class B--1-year period, 22.56%; 5-year period, 12.14%; since inception, 12.45%;
Class C--1-year period, 26.91%; 5-year period, 12.49%; since inception, 12.52%;
Class Y--1-year period, 29.39%; since inception, 12.24%; Class P--1-year period,
27.00%; 5-year period, 11.88%; 10-year period, 2.71%; since inception, 2.38%.
^ 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 SERVICE AND DISTRIBUTION 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 SERVICE AND DISTRIBUTION 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
SERVICE AND DISTRIBUTION FEES.
***** CLASS P SHARES DO NOT BEAR INITIAL OR CONTINGENT DEFERRED SALES CHARGES OR
ONGOING 12b-1 SERVICE AND DISTRIBUTION 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 AT NET ASSET VALUE ON THE EX-DIVIDEND DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED. FOR MONTH-END PERFORMANCE
FIGURES, PLEASE VISIT http://www.ubs.com.
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.
SPECIAL CONSIDERATIONS
The Portfolio may be appropriate for long-term investors seeking capital
appreciation who are able to withstand short-term fluctuations in the equity
markets in return for potentially higher returns over the long term. The value
of the Portfolio changes every day and can be affected by changes in interest
rates, general market conditions and other political, social and economic
developments, as well as specific matters relating to the companies in whose
securities the Portfolio invests. It is important to note that an investment in
the Portfolio is only one component of a balanced investment plan. The value of
the Portfolio's investments in foreign securities may fall due to adverse
political, social, and economic developments abroad and due to decreases in
foreign currency values relative to the US dollar. These risks are greater for
investments in emerging market issuers than for issuers in more developed
countries.
59
<Page>
UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1)
transactional costs (as applicable), including sales charges (loads), or ongoing
program fees; and (2) ongoing Portfolio costs, including management fees;
service and/or distribution (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, 2005 to January 31,
2006.
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 Portfolio 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
Portfolio costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs or program
fees were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 08/01/05 TO 01/31/06
- -------------------------------------------------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,272.40 $ 11.23
Hypothetical (5% annual return before expenses) 1,000.00 1,015.32 9.96
Class B Actual 1,000.00 1,266.70 16.85
Hypothetical (5% annual return before expenses) 1,000.00 1,010.33 14.95
Class C Actual 1,000.00 1,268.30 15.78
Hypothetical (5% annual return before expenses) 1,000.00 1,011.29 13.99
Class Y Actual 1,000.00 1,276.20 9.01
Hypothetical (5% annual return before expenses) 1,000.00 1,017.29 7.98
Class P Actual 1,000.00 1,273.40 11.29
Hypothetical (5% annual return before expenses) 1,000.00 1,015.27 10.01
</Table>
* Expenses are equal to the Portfolio's annualized net expense ratios: Class
A: 1.96%, Class B: 2.95%, Class C: 2.76%, Class Y: 1.57%, Class P: 1.97%,
multiplied by the average account value over the period, multiplied by 184
divided by 365 (to reflect the one-half year period).
60
<Page>
PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- --------------------------------------------------------------------------------
Net Assets (mm) $ 320.8
Number of Securities 180
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- --------------------------------------------------------------------------------
Equities (common and preferred stocks and rights) 97.7%
Cash Equivalents and Other Assets Less Liabilities 2.3
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
REGIONAL ALLOCATION* 1/31/06
- --------------------------------------------------------------------------------
Asia 48.6%
Europe/Middle East/Africa 25.3
Latin America 23.8
Cash Equivalents and Other Assets Less Liabilities 2.3
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
<Caption>
TOP FIVE COUNTRIES (EQUITY INVESTMENTS)* 1/31/06
- --------------------------------------------------------------------------------
South Korea 17.6%
Brazil 15.0
South Africa 11.8
Taiwan 10.5
Mexico 6.8
- --------------------------------------------------------------------------------
Total 61.7%
- --------------------------------------------------------------------------------
<Caption>
TOP TEN EQUITY SECURITIES* 1/31/06
- --------------------------------------------------------------------------------
Samsung Electronics 3.9%
Petroleo Brasileiro SA-Petrobras 3.2
Cemex SA de C.V. 1.7
Asustek Computer 1.6
LUKOIL 1.6
ABSA Group 1.6
Companhia Vale do Rio Doce (CVRD) 1.6
Chunghwa Telecom 1.3
Sasol 1.3
Maxis Communications Berhad 1.2
- --------------------------------------------------------------------------------
Total 19.0%
- --------------------------------------------------------------------------------
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. The Portfolio is actively managed and its composition
will vary over time.
61
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE MONEY MARKET INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 6.42%
$ 9,000 Federal Farm Credit Bank 02/01/06 to 02/07/06 4.240 to 4.605%* $ 8,999,182
5,500 Federal Home Loan Bank 03/01/06 to 03/12/06 4.290 to 4.360* 5,499,364
2,500 Federal Home Loan Mortgage Corp. 10/23/06 4.250 2,500,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations (cost - $16,998,546) 16,998,546
- ----------------------------------------------------------------------------------------------------------------------------------
BANK NOTE - 2.26%
BANKING--U.S. - 2.26%
6,000 Bank of America N.A. (cost - $6,000,000) 03/07/06 4.560* 6,000,000
CERTIFICATES OF DEPOSIT - 16.61%
NON-U.S. - 7.55%
1,000 Abbey National Treasury Services PLC 03/06/06 4.415 1,000,005
3,500 ABN AMRO Bank NV 01/24/07 4.850 3,500,000
5,000 Barclays Bank PLC 03/13/06 4.455 4,999,954
3,000 BNP Paribas 02/13/06 3.965 3,000,000
2,000 Deutsche Bank AG 08/03/06 4.170 2,000,000
3,000 Fortis Bank NV-SA 07/07/06 3.930 3,000,000
2,500 Svenska Handelsbanken 11/08/06 4.750 2,500,000
- ----------------------------------------------------------------------------------------------------------------------------------
19,999,959
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. - 9.06%
5,000 American Express Centurion Bank 02/13/06 4.380 5,000,000
2,000 First Tennessee Bank N.A. (Memphis) 03/27/06 4.450 2,000,000
6,000 SunTrust Bank 04/24/06 4.550 6,000,000
6,000 Washington Mutual Bank Federal Association 02/16/06 4.390 6,000,000
5,000 Wells Fargo Bank N.A. 02/21/06 4.420 5,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
24,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit (cost - $43,999,959) 43,999,959
- ----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - 62.74%
ASSET BACKED-BANKING - 1.87%
5,000 Atlantis One Funding 03/30/06 4.530 4,964,138
ASSET BACKED-MISCELLANEOUS - 21.78%
5,000 Amsterdam Funding Corp. 02/08/06 4.340 4,995,781
6,000 Barton Capital LLC 03/02/06 4.430 5,978,588
6,000 Bryant Park Funding LLC 02/09/06 to 02/17/06 4.350 to 4.440 5,992,187
6,000 Chariot Funding LLC 02/15/06 4.410 5,989,710
4,000 Falcon Asset Securitization Corp. 02/07/06 4.330 3,997,113
6,000 Kitty Hawk Funding Corp. 02/15/06 4.400 5,989,733
5,000 Old Line Funding Corp. 02/07/06 4.330 4,996,392
6,000 Preferred Receivables Funding Corp. 02/27/06 4.490 5,980,543
4,000 Thunderbay Funding 04/10/06 4.450 3,966,378
6,000 Windmill Funding Corp. 02/16/06 to 03/24/06 4.390 to 4.490 5,975,430
3,839 Yorktown Capital LLC 02/07/06 to 02/24/06 4.320 to 4.480 3,830,154
- ----------------------------------------------------------------------------------------------------------------------------------
57,692,009
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
62
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - (CONCLUDED)
ASSET BACKED-SECURITIES - 15.03%
$ 6,000 Beta Finance, Inc. 02/28/06 to 04/12/06 4.370 to 4.450% $ 5,969,585
5,000 Cancara Asset Securitization LLC 02/02/06 4.310 4,999,401
3,000 CC (USA), Inc. (Centauri) 03/20/06 4.380 2,982,845
6,000 Galaxy Funding, Inc. 03/06/06 to 03/22/06 4.410 5,969,865
3,500 Grampian Funding LLC 03/29/06 4.100 3,477,678
4,500 K2 (USA) LLC 02/13/06 to 03/09/06 4.220 to 4.380 4,486,237
1,000 Links Finance LLC 02/09/06 4.230 999,060
7,000 Scaldis Capital LLC 02/27/06 to 04/20/06 4.500 to 4.510 6,954,406
4,000 Solitaire Funding LLC 02/10/06 to 02/17/06 4.260 to 4.350 3,994,038
- ----------------------------------------------------------------------------------------------------------------------------------
39,833,115
- ----------------------------------------------------------------------------------------------------------------------------------
BANKING-NON-U.S. - 11.26%
2,000 Alliance & Leicester PLC 02/21/06 4.300 1,995,222
6,500 Allied Irish Banks N.A., Inc. 02/16/06 to 04/05/06 4.390 to 4.425 6,458,538
2,500 Bank of Ireland 02/27/06 4.305 2,492,227
4,000 DNB NOR ASA 03/28/06 4.410 3,973,050
5,000 HBOS Treasury Services PLC 03/09/06 4.370 4,978,150
6,000 KBC Financial Products International, Ltd. 03/29/06 4.350 5,959,400
1,000 Natexis Banques Populaires U.S. Finance Co. LLC 04/19/06 4.490 990,396
3,000 Nationwide Building Society 04/12/06 4.470 2,973,925
- ----------------------------------------------------------------------------------------------------------------------------------
29,820,908
- ----------------------------------------------------------------------------------------------------------------------------------
BANKING-U.S. - 5.08%
4,000 ING (US) Funding LLC 02/06/06 to 03/24/06 4.300 to 4.510 3,991,819
6,000 Nordea N.A., Inc. 02/09/06 to 04/06/06 4.225 to 4.420 5,980,529
3,500 Stadshypotek (Delaware), Inc. 03/21/06 4.470 3,479,140
- ----------------------------------------------------------------------------------------------------------------------------------
13,451,488
- ----------------------------------------------------------------------------------------------------------------------------------
BROKERAGE - 6.40%
5,000 Bear Stearns Cos., Inc. 03/13/06 4.390 4,975,611
4,000 Credit Suisse First Boston USA, Inc. 02/16/06 to 03/14/06 4.260 to 4.380 3,984,867
5,000 Goldman Sachs Group, Inc. 02/23/06 4.280 4,986,922
3,000 Morgan Stanley 02/01/06 4.580* 3,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
16,947,400
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCE-NONCAPTIVE DIVERSIFIED - 1.32%
3,500 International Lease Finance Corp. 02/06/06 4.190 3,497,963
- ----------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper (cost - $166,207,021) 166,207,021
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE OBLIGATIONS - 11.53%
ASSET BACKED-SECURITIES - 1.79%
1,000 Dorada Finance, Inc.** 03/10/06 3.500 999,995
1,750 K2 (USA) LLC** 02/21/06 4.445* 1,749,963
2,000 Links Finance LLC** 04/13/06 4.590* 2,000,096
- ----------------------------------------------------------------------------------------------------------------------------------
4,750,054
- ----------------------------------------------------------------------------------------------------------------------------------
AUTOMOBILE OEM - 0.75%
2,000 American Honda Finance Corp.** 03/13/06 4.440* 2,000,000
</Table>
63
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE OBLIGATIONS - (CONCLUDED)
BANKING-NON-U.S. - 1.89%
$ 2,000 Nationwide Building Society** 03/13/06 4.600%* $ 2,002,439
3,000 Societe Generale** 02/02/06 4.355* 3,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
5,002,439
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCE-CAPTIVE AUTOMOTIVE - 2.19%
1,790 American Honda Finance Corp.** 04/11/06 4.730* 1,791,331
4,000 Toyota Motor Credit Corp. 02/07/06 to 02/09/06 4.349 to 4.550* 3,999,924
- ----------------------------------------------------------------------------------------------------------------------------------
5,791,255
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCE-NONCAPTIVE CONSUMER - 2.64%
1,000 CIT Group, Inc. 04/19/06 4.702* 1,000,104
6,000 HSBC Finance Corp. 02/01/06 4.645* 6,004,008
- ----------------------------------------------------------------------------------------------------------------------------------
7,004,112
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCE-NONCAPTIVE DIVERSIFIED - 2.27%
6,000 General Electric Capital Corp. 02/01/06 to 02/13/06 4.502 to 4.640* 6,000,897
- ----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Corporate Obligations (cost - $30,548,757) 30,548,757
- ----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.04%
99 Repurchase Agreement dated 01/31/06 with State Street
Bank & Trust Co., collateralized by $17,069
U.S. Treasury Bills, zero coupon due 04/13/06 and
$84,688 U.S. Treasury Notes, 2.500% due 05/31/06;
(value - $101,400); proceeds: $99,011 (cost - $99,000) 02/01/06 4.000 99,000
<Caption>
NUMBER OF
SHARES
(000)
- ----------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS+ - 1.05%
1,779 AIM Liquid Assets Portfolio 4.350 1,778,649
991 BlackRock Provident Institutional TempFund 4.318 991,205
- ----------------------------------------------------------------------------------------------------------------------------------
Total Money Market Funds (cost - $2,769,854) 2,769,854
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $266,623,137 which approximates cost for
federal income tax purposes) - 100.65% 266,623,137
Liabilities in excess of other assets - (0.65)% (1,730,373)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets (applicable to 264,893,361 shares of beneficial interest
outstanding equivalent to $1.00 per share) - 100.00% $ 264,892,764
- ----------------------------------------------------------------------------------------------------------------------------------
</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, 2006, and reset periodically.
** Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities, which represent 5.11% of net assets as of January
31, 2006, 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, 2006.
OEM Original Equipment Manufacturer
64
<Page>
<Table>
<Caption>
ISSUER BREAKDOWN BY COUNTRY PERCENTAGE OF PORTFOLIO ASSETS
- --------------------------------------------------------------------------------
United States 79.4%
United Kingdom 6.7
Belgium 3.4
Ireland 3.4
France 2.6
Norway 1.5
Netherlands 1.3
Sweden 0.9
Germany 0.8
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
Weighted average maturity - 40 days
See accompanying notes to financial statements
65
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE GOVERNMENT SECURITIES FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 5.15%
$ 5 GNMA 12/15/07 8.000% $ 5,086
28 GNMA 08/15/09 8.000 29,217
429 GNMA 08/15/09 9.000 443,770
1 GNMA 03/15/13 11.500 1,165
37 GNMA 02/15/19 10.500 41,649
827 GNMA 04/15/19 8.250 891,005
4 GNMA 05/15/19 11.500 4,571
45 GNMA 06/15/19 10.500 50,107
151 GNMA 07/15/19 10.500 169,040
24 GNMA 08/15/19 10.500 26,931
7 GNMA 09/15/19 10.500 8,093
4 GNMA 07/15/20 10.500 4,923
66 GNMA 08/15/20 10.500 73,923
11 GNMA 09/15/20 10.500 12,409
18 GNMA 08/15/21 7.500 19,341
4 GNMA 02/15/23 8.000 4,592
4 GNMA 09/15/23 7.500 4,270
176 GNMA 12/15/32 5.500 177,527
273 GNMA 02/15/33 5.500 275,010
754 GNMA 03/15/33 5.500 758,183
1,472 GNMA 07/15/33 5.500 1,480,258
920 GNMA 01/15/34 5.500 924,752
948 GNMA 03/15/34 5.500 952,209
990 GNMA 04/15/34 5.500 995,177
1,024 GNMA 05/15/34 5.500 1,029,090
499 GNMA 12/15/35 5.500 501,844
60 GNMA II 04/20/25 9.000 65,137
13 GNMA II 12/20/26 9.000 14,028
42 GNMA II 01/20/27 9.000 45,510
23 GNMA II 04/20/30 9.000 25,586
3 GNMA II 06/20/30 9.000 3,677
28 GNMA II 07/20/30 9.000 30,942
6 GNMA II 09/20/30 9.000 6,544
41 GNMA II 10/20/30 9.000 45,077
61 GNMA II 11/20/30 9.000 66,712
30 GNMA II ARM 07/20/17 4.750 30,151
390 GNMA II ARM 01/20/18 4.625 393,440
32 GNMA II ARM 04/20/18 4.375 32,466
16 GNMA II ARM 05/20/18 4.875 15,574
114 GNMA II ARM 06/20/19 4.875 115,114
38 GNMA II ARM 05/20/21 4.375 37,687
392 GNMA II ARM 09/20/21 4.750 393,785
64 GNMA II ARM 11/20/21 4.125 64,764
382 GNMA II ARM 06/20/22 4.375 381,290
</Table>
66
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - (CONCLUDED)
$ 134 GNMA II ARM 11/20/22 4.125% $ 135,508
285 GNMA II ARM 01/20/23 4.375 285,380
158 GNMA II ARM 03/20/23 4.375 158,803
453 GNMA II ARM 01/20/24 4.375 454,049
377 GNMA II ARM 04/20/24 4.375 376,906
2 GNMA II ARM 12/20/24 4.125 2,521
34 GNMA II ARM 01/20/25 4.375 33,972
96 GNMA II ARM 02/20/25 4.375 95,843
130 GNMA II ARM 03/20/25 4.375 130,381
85 GNMA II ARM 03/20/25 4.500 85,241
320 GNMA II ARM 05/20/25 4.375 321,330
134 GNMA II ARM 06/20/25 4.375 134,554
95 GNMA II ARM 08/20/25 4.750 95,585
105 GNMA II ARM 09/20/25 4.750 105,785
81 GNMA II ARM 10/20/25 4.125 81,931
15 GNMA II ARM 12/20/25 4.125 15,558
70 GNMA II ARM 03/20/26 4.375 70,029
673 GNMA II ARM 04/20/26 4.375 672,349
318 GNMA II ARM 06/20/26 4.375 317,540
128 GNMA II ARM 08/20/26 4.750 129,056
17 GNMA II ARM 09/20/26 4.750 17,523
58 GNMA II ARM 10/20/26 4.125 58,709
81 GNMA II ARM 12/20/26 4.125 81,768
454 GNMA II ARM 01/20/27 4.375 455,120
51 GNMA II ARM 02/20/27 4.375 51,074
233 GNMA II ARM 04/20/27 4.375 233,117
46 GNMA II ARM 07/20/27 4.750 46,605
127 GNMA II ARM 08/20/27 4.750 128,045
226 GNMA II ARM 11/20/27 4.125 227,734
24 GNMA II ARM 12/20/27 4.125 24,335
46 GNMA II ARM 01/20/28 4.375 46,230
13 GNMA II ARM 02/20/28 4.250 12,787
32 GNMA II ARM 02/20/28 4.375 31,919
57 GNMA II ARM 10/20/29 4.125 57,349
220 GNMA II ARM 04/20/30 4.375 220,630
3,921 GNMA II ARM 05/20/30 4.375 3,938,132
79 GNMA II ARM 06/20/30 4.500 79,360
923 GNMA II ARM 07/20/30 4.500 920,996
739 GNMA II ARM 08/20/30 4.500 739,102
112 GNMA II ARM 10/20/30 4.125 112,818
124 GNMA II ARM 09/20/31 4.125 124,417
87 GNMA II ARM 11/20/31 4.125 87,798
5,000 GNMA TBA TBA 5.500 5,020,310
- ----------------------------------------------------------------------------------------------------------------------------------
Total Government National Mortgage Association Certificates
(cost - $27,157,790) 27,069,825
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
67
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES - 18.61%
$ 448 FHLMC 07/01/08 6.000% $ 451,379
4 FHLMC 07/01/09 9.000 3,874
10 FHLMC 02/01/10 9.000 10,368
16 FHLMC 05/01/10 11.500 17,308
12 FHLMC 08/01/10 11.500 12,647
14 FHLMC 11/01/10 11.500 15,490
16 FHLMC 05/01/11 11.000 16,817
253 FHLMC 03/01/13 8.000 270,710
5 FHLMC 03/01/13 11.000 5,294
7 FHLMC 09/01/14 11.500 7,382
9 FHLMC 07/01/15 11.000 10,484
14 FHLMC 09/01/15 11.000 15,049
3 FHLMC 10/01/15 11.000 3,024
20 FHLMC 12/01/15 11.000 22,523
37 FHLMC 12/01/15 11.500 40,509
4 FHLMC 01/01/16 11.500 4,231
121 FHLMC 05/01/16 8.500 124,921
59 FHLMC 11/01/16 9.750 62,294
6 FHLMC 10/01/17 7.500 6,178
43 FHLMC 12/01/17 11.500 46,879
13 FHLMC 01/01/18 11.500 14,294
6 FHLMC 04/01/19 11.000 6,562
8 FHLMC 05/01/19 11.500 8,717
1 FHLMC 06/01/19 11.000 583
24 FHLMC 06/01/19 11.500 26,383
+ 0 FHLMC 08/01/20 11.000 94
5 FHLMC 09/01/20 11.000 5,685
53 FHLMC 11/01/20 10.500 58,940
14 FHLMC 11/01/24 7.500 14,555
314 FHLMC 04/01/25 9.000 329,791
3 FHLMC 08/01/25 7.000 3,457
2,044 FHLMC 02/01/33 5.500 2,027,52
763 FHLMC 03/01/33 5.500 757,306
908 FHLMC 04/01/33 5.500 900,677
953 FHLMC 05/01/33 5.500 945,206
4,442 FHLMC 06/01/33 5.500 4,406,928
1,009 FHLMC 10/01/33 5.500 1,001,074
490 FHLMC 12/01/33 5.500 486,009
175 FHLMC 03/01/34 5.500 173,841
1,421 FHLMC 10/01/34 5.500 1,409,475
1,006 FHLMC 12/01/34 5.500 997,188
9,041 FHLMC 02/01/35 5.500 8,958,290
280 FHLMC 05/01/35 5.500 277,592
1,700 FHLMC 06/01/35 5.500 1,683,000
</Table>
68
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES - (CONCLUDED)
$ 18,722 FHLMC 08/01/35 5.000% $ 18,083,165
23,704 FHLMC 09/01/35 5.000 22,894,440
3,988 FHLMC 11/01/35 5.000 3,851,730
3,955 FHLMC 12/01/35 5.000 3,819,499
426 FHLMC ARM 10/01/23 5.596 434,405
654 FHLMC ARM 07/01/24 5.741 669,486
1,024 FHLMC ARM 11/01/25 5.616 1,050,367
888 FHLMC ARM 10/01/27 5.614 912,217
1,369 FHLMC ARM 10/01/27 5.913 1,403,470
332 FHLMC ARM 11/01/27 5.424 339,292
235 FHLMC ARM 01/01/28 5.994 239,991
1,430 FHLMC ARM 06/01/28 5.592 1,466,772
1,004 FHLMC ARM 07/01/28 5.560 1,028,023
683 FHLMC ARM 01/01/29 5.636 701,519
942 FHLMC ARM 04/01/29 5.434 965,148
48 FHLMC ARM 10/01/29 6.954 49,394
1,646 FHLMC ARM 11/01/29 5.556 1,694,791
712 FHLMC ARM 12/01/29 5.576 731,908
190 FHLMC ARM 01/01/30 5.903 194,503
10,000 FHLMC TBA TBA 5.000 9,653,120
2,000 FHLMC TBA TBA 6.000 2,020,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total Federal Home Loan Mortgage Corporation Certificates
(cost - $99,055,375) 97,843,770
- ----------------------------------------------------------------------------------------------------------------------------------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES - 1.59%
290 FHA GMAC 04/01/19 7.480 293,163
1,568 FHA GMAC 02/01/21 7.400 1,568,243
96 FHA GMAC 05/01/21 7.450 95,919
1,498 FHA Reilly 07/01/20 6.896 1,505,560
91 FHA Reilly 08/01/20 7.430 92,104
4,790 FHA Wingate St. Francis 04/01/31 8.375 4,790,446
- ----------------------------------------------------------------------------------------------------------------------------------
Total Federal Housing Administration Certificates (cost - $8,368,208) 8,345,435
- ----------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 90.13%
188 FNMA 05/01/09 9.000 195,871
172 FNMA 07/01/09 7.249 180,153
5 FNMA 12/01/09 9.500 5,516
34 FNMA 04/01/10 9.250 35,049
8 FNMA 03/01/11 10.250 8,146
36 FNMA 04/01/11 10.250 38,348
4 FNMA 02/01/12 10.500 4,048
19 FNMA 09/01/12 6.500 19,463
43 FNMA 12/01/12 6.500 44,469
6 FNMA 01/01/13 6.500 5,881
40 FNMA 02/01/13 6.500 40,691
74 FNMA 03/01/13 6.500 76,014
</Table>
69
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - (CONTINUED)
$ 39 FNMA 04/01/13 6.500% $ 40,140
71 FNMA 04/01/13 9.250 74,424
126 FNMA 06/01/13 6.500 129,543
40 FNMA 07/01/13 6.500 41,304
3 FNMA 07/01/13 10.500 3,421
24 FNMA 07/01/13 11.000 26,093
30 FNMA 08/01/13 6.500 30,958
184 FNMA 09/01/13 6.500 189,124
60 FNMA 10/01/13 6.500 61,129
76 FNMA 11/01/13 6.500 77,728
2 FNMA 04/01/14 10.500 1,979
12 FNMA 05/01/14 5.500 11,794
67 FNMA 05/01/14 9.250 69,208
33 FNMA 09/01/15 10.500 35,926
22 FNMA 10/01/15 11.000 24,123
+ 0 FNMA 11/01/15 10.500 156
46 FNMA 11/01/15 11.000 49,859
28 FNMA 12/01/15 9.250 29,299
8 FNMA 01/01/16 11.000 8,716
13 FNMA 02/01/16 11.000 13,435
15 FNMA 03/01/16 11.000 15,578
402 FNMA 06/01/17 5.500 403,355
2,394 FNMA 10/01/17 5.000 2,370,879
1,260 FNMA 05/01/18 5.000 1,246,464
36 FNMA 07/01/18 5.000 35,598
628 FNMA 08/01/18 5.000 621,739
1,994 FNMA 10/01/18 5.000 1,973,723
8,092 FNMA 11/01/18 5.000 8,008,104
2,374 FNMA 12/01/18 5.000 2,348,897
10,073 FNMA 02/01/19 5.000 9,958,359
2,371 FNMA 04/01/19 5.000 2,343,831
825 FNMA 05/01/19 5.000 815,457
2,110 FNMA 06/01/19 5.000 2,085,912
13,474 FNMA 07/01/19 5.000 13,320,810
157 FNMA 07/01/19 6.500 162,796
12 FNMA 07/01/19 10.500 13,499
3,437 FNMA 08/01/19 5.000 3,397,459
89 FNMA 08/01/19 10.000 95,418
36 FNMA 09/01/19 5.000 35,536
1,850 FNMA 10/01/19 5.000 1,829,078
128 FNMA 10/01/19 9.000 138,907
2,461 FNMA 12/01/19 5.000 2,432,669
4,156 FNMA 01/01/20 5.000 4,106,824
4,993 FNMA 02/01/20 5.000 4,933,370
</Table>
70
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - (CONTINUED)
$ 1,502 FNMA 03/01/20 5.000% $ 1,484,466
4,914 FNMA 04/01/20 5.000 4,855,781
1,723 FNMA 05/01/20 5.000 1,702,430
13 FNMA 05/01/20 11.000 13,918
55 FNMA 06/01/20 5.000 54,239
1,384 FNMA* 07/01/20 4.500 1,344,309
5 FNMA 08/01/20 10.500 5,918
3,451 FNMA 09/01/20 5.000 3,410,121
1,873 FNMA 10/01/20 5.000 1,851,000
82 FNMA 11/01/20 5.000 81,465
8,922 FNMA* 12/01/20 4.500 8,664,065
736 FNMA 12/01/20 5.000 726,735
467 FNMA 01/01/21 5.000 461,878
233 FNMA 02/01/21 5.000 229,954
9 FNMA 09/01/21 10.500 9,373
16 FNMA 04/01/22 10.500 16,931
2 FNMA 06/01/24 7.500 2,577
47 FNMA 07/01/24 7.500 49,625
74 FNMA 08/01/24 7.500 78,176
3 FNMA 12/01/24 7.500 2,895
13 FNMA 06/01/25 7.500 13,328
22 FNMA 07/01/25 7.500 23,503
248 FNMA 09/01/25 8.500 268,962
67 FNMA 02/01/26 9.000 72,855
12 FNMA 04/01/26 6.500 12,255
134 FNMA 10/01/26 7.500 140,196
94 FNMA 11/01/26 7.500 98,206
88 FNMA 11/01/26 8.000 93,212
116 FNMA 03/01/29 6.500 119,276
290 FNMA 05/01/29 6.500 298,391
343 FNMA 01/01/32 6.000 346,558
108 FNMA 02/01/32 5.500 107,661
234 FNMA 04/01/32 6.000 236,266
274 FNMA 07/01/32 6.500 281,452
4 FNMA 08/01/32 6.500 4,519
219 FNMA 09/01/32 6.000 221,453
296 FNMA 10/01/32 6.000 299,860
2,328 FNMA 11/01/32 5.500 2,308,088
343 FNMA 12/01/32 6.000 346,858
1,149 FNMA 01/01/33 5.500 1,138,575
580 FNMA 01/01/33 6.000 586,917
693 FNMA 02/01/33 5.500 686,905
403 FNMA 02/01/33 6.000 407,200
1,134 FNMA 03/01/33 6.500 1,162,839
</Table>
71
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - (CONTINUED)
$ 7 FNMA 05/01/33 6.500% $ 7,601
218 FNMA 06/01/33 5.500 216,587
383 FNMA 06/01/33 6.000 387,252
302 FNMA 07/01/33 6.000 305,235
813 FNMA 09/01/33 5.500 805,555
1,232 FNMA 10/01/33 5.500 1,221,771
295 FNMA 10/01/33 6.000 298,577
301 FNMA 11/01/33 5.500 298,274
998 FNMA 11/01/33 6.000 1,008,392
1,174 FNMA 12/01/33 5.500 1,164,243
8 FNMA 12/01/33 6.500 8,167
1,880 FNMA 01/01/34 5.500 1,863,542
307 FNMA 02/01/34 5.500 304,364
3,268 FNMA 02/01/34 6.000 3,303,353
775 FNMA 03/01/34 5.500 767,350
1,667 FNMA 04/01/34 5.500 1,650,871
158 FNMA 04/01/34 6.500 162,172
254 FNMA 05/01/34 6.000 256,983
4,647 FNMA 06/01/34 5.500 4,601,481
2,222 FNMA 07/01/34 5.500 2,200,706
96 FNMA 07/01/34 6.500 98,193
5,967 FNMA 08/01/34 6.000 6,032,077
9,039 FNMA 09/01/34 5.500 8,950,258
4,176 FNMA 09/01/34 6.000 4,219,201
2,330 FNMA 10/01/34 6.000 2,354,269
8,161 FNMA 11/01/34 5.500 8,081,060
12,040 FNMA 11/01/34 6.000 12,164,945
335 FNMA 11/01/34 6.500 343,800
203 FNMA 12/01/34 6.000 204,689
521 FNMA 01/01/35 5.500 515,449
2,387 FNMA 01/01/35 6.000 2,411,790
15,921 FNMA 02/01/35 5.500 15,767,089
1,406 FNMA 02/01/35 6.000 1,420,549
6,169 FNMA 04/01/35 5.500 6,104,771
6,807 FNMA 04/01/35 6.000 6,878,209
4,767 FNMA 05/01/35 5.500 4,717,645
1,550 FNMA 05/01/35 6.000 1,566,032
2,558 FNMA 06/01/35 5.500 2,531,696
347 FNMA 06/01/35 6.000 350,613
719 FNMA 07/01/35 5.500 711,302
2,546 FNMA 07/01/35 6.000 2,571,594
973 FNMA 08/01/35 5.000 939,976
1,954 FNMA 08/01/35 5.500 1,934,073
998 FNMA 08/01/35 6.000 1,008,039
</Table>
72
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - (CONCLUDED)
$ 326 FNMA 09/01/35 5.000% $ 314,837
1,362 FNMA 09/01/35 6.000 1,376,247
1,188 FNMA 10/01/35 5.000 1,147,957
405 FNMA 10/01/35 6.000 408,736
2,104 FNMA 11/01/35 5.000 2,033,905
89 FNMA 11/01/35 6.000 90,085
1,383 FNMA 12/01/35 5.000 1,336,370
493 FNMA ARM 09/01/15 5.210 494,440
20 FNMA ARM 11/01/23 5.226 20,621
727 FNMA ARM 03/01/25 5.095 741,093
204 FNMA ARM 02/01/26 5.659 207,474
267 FNMA ARM 09/01/26 5.409 272,795
4,745 FNMA ARM 10/01/26 5.112 4,884,004
204 FNMA ARM 12/01/27 6.534 206,132
132 FNMA ARM 02/01/29 5.503 135,326
235 FNMA ARM 02/01/30 5.556 239,373
302 FNMA ARM 05/01/30 5.173 305,553
142 FNMA ARM 07/01/30 5.107 143,811
3,938 FNMA ARM 03/01/44 4.678 3,951,015
12,000 FNMA TBA* TBA 4.500 11,643,744
10,000 FNMA TBA TBA 4.500 9,696,880
54,000 FNMA TBA TBA 5.000 52,591,868
141,000 FNMA TBA TBA 5.500 139,457,742
30,500 FNMA TBA TBA 6.000 30,761,880
- ----------------------------------------------------------------------------------------------------------------------------------
Total Federal National Mortgage Association Certificates
(cost - $477,814,542) 473,759,144
- ----------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 4.32%
2,231 Chevy Chase Funding LLC, Series 2004-1, Class A1 (2) 01/25/35 4.000++ 2,232,522
1,261 Federal Agricultural 2002, Mortgage Corp.,
Series Class AA1 04/25/11 7.827 1,297,421
173 FHLMC REMIC, Series 0023, Class KZ 11/25/23 6.500 175,947
52 FHLMC REMIC, Series 0159, Class H 09/15/21 4.500 51,497
230 FHLMC REMIC, Series 1003, Class H 10/15/20 5.250++ 230,236
9 FHLMC REMIC, Series 1349, Class PS 08/15/22 7.500 9,263
1,359 FHLMC REMIC, Series 1502, Class PX 04/15/23 7.000 1,394,693
734 FHLMC REMIC, Series 1534, Class Z 06/15/23 5.000 727,103
255 FHLMC REMIC, Series 1573, Class PZ 09/15/23 7.000 267,068
117 FHLMC REMIC, Series 1658, Class GZ 01/15/24 7.000 121,074
488 FHLMC REMIC, Series 1694, Class Z 03/15/24 6.500 488,878
22 FHLMC REMIC, Series 1775, Class Z 03/15/25 8.500 22,403
36 FHLMC REMIC, Series 2258, Class F 06/15/29 4.820++ 35,751
196 FHLMC REMIC, Series 2411, Class FJ 12/15/29 4.820++ 196,050
659 FNMA REMIC, Trust 1987-002, Class Z 11/25/17 11.000 734,487
554 FNMA REMIC, Trust 1988-007, Class Z 04/25/18 9.250 588,393
6 FNMA REMIC, Trust 1992-074, Class Z 05/25/22 8.000 6,343
34 FNMA REMIC, Trust 1992-129, Class L 07/25/22 6.000 34,409
</Table>
73
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - (CONCLUDED)
$ 103 FNMA REMIC, Trust 1992-158, Class ZZ 08/25/22 7.750% $ 111,718
1,329 FNMA REMIC, Trust 1993-037, Class PX 03/25/23 7.000 1,383,602
4 FNMA REMIC, Trust 1993-240, Class Z 12/25/13 6.250 4,134
57 FNMA REMIC, Trust 1993-250, Class Z 12/25/23 7.000 59,135
130 FNMA REMIC, Trust G92-040, Class ZC 07/25/22 7.000 134,547
148 FNMA REMIC, Trust G94-006, Class PJ 05/17/24 8.000 155,799
129 GNMA REMIC, Trust 2000-009, Class FH 02/16/30 4.970++ 130,509
6,445 Indymac Index Mortgage Loan Trust, Series 2005-AR2,
Class 2A1A 02/25/35 4.850++ 6,441,014
1,961 Sequoia Mortgage Trust, Series 5, Class A 10/19/26 4.833++ 1,966,706
52 Small Business Administration, Series 1997-P10, Class B11 05/01/07 7.310 53,336
558 Small Business Administration, Series 2000-10, Class B1 08/01/10 7.449 592,809
3,092 Washington Mutual, Series 2003-R1, Class A1 12/25/27 4.800++ 3,089,719
- ----------------------------------------------------------------------------------------------------------------------------------
Total Collateralized Mortgage Obligations (cost - $22,305,966) 22,736,566
- ----------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 2.70%
1,643 Centex Home Equity Loan Trust, Series 2005-C, Class AV1 06/25/35 4.620++ 1,642,595
735 Conseco Finance Securitizations Corp., Series 2000-5,
Class M1 02/01/32 8.400 79,286
1,638 Embarcadero Aircraft Securitization Trust, Series
2000-A, Class B (2)~ 08/15/25 5.570++ 16,381
757 EMC Mortgage Loan Trust, Series 2003-A, Class A2 (2) 08/25/40 5.280++ 768,023
851 First Franklin Mortgage Loan Trust, Series 2003-FF5,
Class A2 03/25/34 5.180++ 850,036
114 Green Tree Financial Corp., Series 1998-2, Class A5 11/01/16 6.240 113,241
6,000 Long Beach Mortgage Loan Trust, Series 2006-WL1,
Class 2A1 01/25/36 4.660++ 6,000,000
1,175 Renaissance Home Equity Loan Trust, Series 2003-2,
Class A 08/25/33 4.970++ 1,178,837
423 Residential Asset Mortgage Products, Inc.,
Series2004-RS8, Class AII1 05/25/26 4.670++ 423,158
130 Specialty Underwriting & Residential Financing,
Series 2003-BC1, Class A 01/25/34 4.870++ 130,077
3,000 Specialty Underwriting & Residential Financing,
Series 2006-BC1, Class A2A 12/25/36 4.677++ 3,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities (cost - $16,458,285) 14,201,634
- ----------------------------------------------------------------------------------------------------------------------------------
STRIPPED MORTGAGE-BACKED SECURITIES+++ - 0.24%
491 FHLMC REMIC, Series 0013, Class B (1) 06/25/23 7.000 96,571
28 FHLMC REMIC, Series 1554, Class I (1) 08/15/08 6.500 1,550
652 FHLMC REMIC, Series 1627, Class PN (1) 09/15/22 6.000 16,673
40 FHLMC REMIC, Series 2136, Class GD (1) 03/15/29 7.000 7,867
200 FHLMC REMIC, Series 2178, Class PI (1) 08/15/29 7.500 39,934
+ 0 FNMA REMIC, Trust 1992-142, Class KB (1) 08/25/07 11.980 2,708
+ 0 FNMA REMIC, Trust 1992-157, Class JA (1) 09/25/07 10.146 2,578
40,033 Hilton Hotel Pool Trust, Series 2000-HLTA, Class X (2) 10/03/15 0.614++ 1,084,153
- ----------------------------------------------------------------------------------------------------------------------------------
Total Stripped Mortgage-Backed Securities (cost - $1,252,123) 1,252,034
- ----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - 0.34%
FINANCE-NONCAPTIVE DIVERSIFIED - 0.34%
1,800 General Electric Capital Corp. (cost - $1,800,000) 02/01/06 4.170 1,800,000
SHORT-TERM U.S. GOVERNMENT AND AGENCY OBLIGATIONS@ - 15.72%
41,600 Federal Home Loan Bank 02/01/06 4.063 41,600,000
2,900 Federal Home Loan Mortgage Corp. 02/28/06 4.160 2,890,811
37,500 Federal National Mortgage Association 02/01/06 to 04/26/06 4.064 to 4.435 37,306,651
815 U.S. Treasury Bills++++ 03/02/06 to 03/16/06 3.830 to 3.895 812,169
- ----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term U.S. Government and Agency Obligations
(cost - $82,609,631) 82,609,631
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
74
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 9.36%
$ 47,000 Repurchase Agreement dated 01/31/06 with Credit Suisse,
collateralized by $46,102,000 U.S. Treasury Notes,
4.875% due 02/15/12 (value - $47,940,912);
proceeds: $47,005,692 02/01/06 4.360% $ 47,000,000
2,207 Repurchase Agreement dated 01/31/06 with
State Street Bank & Trust Co., collateralized by
$2,260,000 U.S. Treasury Notes, 2.500% due 05/31/06;
(value - $2,254,350); proceeds: $2,207,245 02/01/06 4.000 2,207,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost - $49,207,000) 49,207,000
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
CONTRACTS
(000)
- ----------------------------------------------------------------------------------------------------------------------------------
OPTIONS - 0.02%
CALL OPTIONS PURCHASED - 0.02%
100,000 3 Month LIBOR(3) Interest Rate Swap, strike @ 4.50%,
expires 10/18/06 91,000
1 90 Day Euro Dollar Futures(4), strike @ $95.25,
expires 03/13/06 25,000
Total Options (cost - $511,625) 116,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investments Before Investments Sold Short
(cost - $786,540,545) - 148.18% 778,941,039
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT
(000)
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT SOLD SHORT - (4.06)%
(22,000) FNMA TBA (proceeds - $21,370,703) TBA 4.500 (21,346,864)
Liablilities in excess of other assets - (44.12)% (231,935,142)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% 525,659,033
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
@ Interest rates shown are the discount rates at date of purchase.
* Partial amount pledged as collateral for investments sold short.
++ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2006.
++++ Partial amount pledged as collateral for futures 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.
(1) Illiquid securities representing 0.03% of net assets as of January 31,
2006.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 0.78% of net assets as of
January 31, 2006, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
(3) 3 Month LIBOR (London Interbank Offered Rate) at January 31, 2006 was
4.680%.
(4) 90 Day Euro Dollar Future rate at January 31, 2006 was 4.825%.
ARM Adjustable Rate Mortgage - The interest rates shown are the current rates
as of January 31, 2006.
FHA Federal Housing Administration.
FHLMC Federal Home Loan Mortgage Corporation.
FNMA Federal National Mortgage Association
GMAC General Motors Acceptance Corporation.
GNMA Government National Mortgage Association.
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.
75
<Page>
WRITTEN OPTIONS
<Table>
<Caption>
NUMBER OF
CONTRACTS
(000) VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN
43,000 3 Month LIBOR(3) Interest Rate Swap, strike @ 4.56%,
expires 10/18/06 $ 146,200
1 90 Day Euro Dollar Futures(4), strike @ $95.50,
expires 03/13/06 --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Written Options (premiums received - $508,550) $ 146,200
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(3) 3 Month LIBOR (London Interbank Offered Rate) at January 31, 2006 was
4.680%.
(4) 90 Day Euro Dollar Future rate at January 31, 2006 was 4.825%.
FUTURES CONTRACTS
<Table>
<Caption>
NUMBER OF IN EXPIRATION UNREALIZED
CONTRACTS CONTRACTS TO RECEIVE EXCHANGE FOR DATE DEPRECIATION
- ----------------------------------------------------------------------------------------------------------------------------------
100 90 Day Euro Dollar Futures $ 23,802,500 September 2006 $ 33,750
</Table>
See accompanying notes to financial statements
76
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 20.13%
1,720 U.S. Treasury Bonds 02/15/20 8.500% $ 2,382,267
4,257 U.S. Treasury Inflation Index Notes 04/15/10 0.875 4,078,600
18,285 U.S. Treasury Notes (1) 09/30/07 4.000 18,122,867
25,385 U.S. Treasury Notes (1) 10/31/07 4.250 25,261,045
9,590 U.S. Treasury Notes (1) 12/31/07 4.375 9,562,275
21,145 U.S. Treasury Notes 11/15/08 4.375 21,082,221
795 U.S. Treasury Notes 01/15/11 4.250 787,485
500 U.S. Treasury Notes 11/15/15 4.500 498,848
- ----------------------------------------------------------------------------------------------------------------------------------
Total U.S. Government Obligations (cost - $81,850,979) 81,775,608
- ----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATE - 0.40%
1,680 GNMA II ARM (cost - $1,647,793) 06/20/34 3.750 1,638,942
FEDERAL HOME LOAN BANK CERTIFICATES - 5.08%
4,485 FHLB 03/07/07 3.050 4,391,259
7,400 FHLB 03/07/07 3.750 7,313,302
9,000 FHLB 05/08/07 4.250 8,934,624
- ----------------------------------------------------------------------------------------------------------------------------------
Total Federal Home Loan Bank Certificates (cost - $20,686,711) 20,639,185
- ----------------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES - 9.69%
4,200 FHLMC 03/16/07 2.700 4,100,242
3,875 FHLMC 04/19/07 3.010 3,791,614
4,175 FHLMC 09/14/07 3.300 4,077,230
1,125 FHLMC 02/27/09 3.750 1,086,644
1,430 FHLMC 10/27/14 5.000 1,410,744
11,772 FHLMC ## 09/01/20 5.000 11,631,231
598 FHLMC ## 11/01/20 5.000 590,749
9,245 FHLMC ## 12/01/20 5.000 9,134,954
2,134 FHLMC ## 01/01/21 5.000 2,108,376
1,477 FHLMC ARM 12/01/34 4.206 1,431,650
- ----------------------------------------------------------------------------------------------------------------------------------
Total Federal Home Loan Mortgage Corporation Certificates
(cost - $39,447,563) 39,363,434
- ----------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 5.38%
1,775 FNMA 06/16/06 1.750 1,756,091
3,775 FNMA 01/30/07 2.710 3,696,941
1,915 FNMA 01/26/09 4.000 1,872,704
1,667 FNMA 11/01/11 5.793 1,714,799
845 FNMA 05/01/13 4.625 818,378
2,050 FNMA 03/02/15 5.000 2,011,429
599 FNMA ARM 08/01/32 5.551 600,164
2,229 FNMA ARM 04/01/34 4.002 2,173,598
1,396 FNMA ARM 06/01/34 3.871 1,350,466
5,930 FNMA ARM 07/01/35 4.660 5,841,702
- ----------------------------------------------------------------------------------------------------------------------------------
Total Federal National Mortgage Association Certificates
(cost - $22,212,222) 21,836,272
- ----------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 16.61%
2,041 Banc of America Commercial Mortgage, Inc., Series 2001-1,
Class A2 04/15/36 6.503 2,137,069
2,145 Banc of America Commercial Mortgage, Inc.,
Series 2002-PB2, Class A4 06/11/35 6.186 2,246,015
</Table>
77
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - (CONCLUDED)
2,530 Bear Stearns Alternative Loan Trust-A Trust,
Series 2004-13, Class A1 11/25/34 4.900%++ $ 2,534,303
3,455 Bear Stearns ARM Trust, Series 2004-5, Class 2A 07/25/34 4.014 3,346,843
2,000 Chase Commercial Mortgage Securities Corp.,
Series 1999-2, Class A2 01/15/32 7.198 2,133,846
1,873 Commercial Mortgage Acceptance Corp., Series 1998-C2,
Class A2 09/15/30 6.030 1,898,221
3,702 Countrywide Alternative Loan Trust, Series 2005-56,
Class 1A1 11/25/35 5.260++ 3,750,746
2,010 FHLMC REMIC Trust, Series 2626, Class NA 06/15/23 5.000 2,002,763
1,364 First Union - Lehman Brothers - Bank of America,
Series 1998-C2, Class A2 11/18/35 6.560 1,398,493
3,125 First Union National Bank Commercial Mortgage Trust,
Series 2001-C3, Class A3 08/15/33 6.423 3,294,305
246 FNMA REMIC Trust, Series 2002-63, Class EJ 10/25/32 6.000 245,832
2,822 FNMA REMIC Trust, Series 2004-25, Class PA 10/25/30 5.500 2,824,579
2,606 FNMA REMIC Trust, Series 2004-36, Class BS 11/25/30 5.500 2,620,463
1,970 FNMA REMIC Trust, Series 2005-57, Class PA 05/25/27 5.500 1,979,896
2,368 FNMA REMIC Trust, Series 2005-70, Class KB 05/25/35 5.500 2,381,987
2,562 FNMA REMIC Trust, Series 2005-83, Class LA 10/25/35 5.500 2,575,689
2,652 FNMA REMIC Trust, Series 2005-109, Class PV 10/25/32 6.000 2,705,341
1,670 GMAC Commercial Mortgage Securities, Inc.,
Series 1999-C3, Class A2 08/15/36 7.179 1,763,820
1,650 GMAC Commercial Mortgage Securities, Inc.,
Series 2005-C1, Class AM 05/10/43 4.754 1,583,926
1,900 Goldman Sachs Mortgage Securities Corp. II,
Series 2005-GG4, Class A4A 07/10/39 4.751 1,830,931
2,090 J.P. Morgan Chase Commercial Mortgage Securities,
Series 2004-CBX, Class A4 01/12/37 4.529 2,022,480
1,850 Lehman Brothers Commercial Conduit Mortgage Trust,
Series 1998-C4, Class A1B 10/15/35 6.210 1,896,809
1,115 Lehman Brothers Commercial Conduit Mortgage Trust,
Series 1999-C2, Class A1 10/15/32 7.105 1,124,985
2,600 Morgan Stanley Capital I, Series 2005-HQ6, Class A2A 08/13/42 4.882 2,572,185
245 Nationslink Funding Corp., Series 1999-SL, Class A6 11/10/30 6.608 245,256
1,868 Small Business Administration, Series 2004-P10B, Class 1 08/10/14 4.754 1,824,212
1,216 Structured ARM Loan Trust, Series 2004-13, Class A2 09/25/34 4.830 1,216,715
1,669 Structured Asset Securities Corp., Series 2003-2,
Class C (2) 01/21/09 4.000++ 1,668,290
1,077 Structured Asset Securities Corp., Series 2003-AL1,
Class A (2) 04/25/31 3.356 971,451
2,943 Structured Asset Securities Corp., Series 2004-6,
Class 4A1 ARM 06/25/34 4.847 2,856,719
2,860 Washington Mutual Asset Securities Corp.,
Series 2005-C1A, Class A2 (2) 05/25/36 5.150 2,855,049
3,046 Wells Fargo Mortgage Backed Securities Trust,
Series 2004-H, Class A1 06/25/34 4.526++ 2,967,834
- ----------------------------------------------------------------------------------------------------------------------------------
Total Collateralized Mortgage Obligations (cost - $68,748,584) 67,477,053
- ----------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 11.39%
3,000 American Express Master Credit Card Trust, Series 2005-5,
Class A 02/15/13 4.510++ 3,000,359
155 Capital Auto Receivables Asset Trust, Series 2002-3,
Class A3 10/16/06 3.580 155,107
2,800 Chase Issuance Trust, Series 2004-A9, Class A9 06/15/10 3.220 2,723,535
2,890 Citibank Credit Card Issuance Trust, Series 1998-2,
Class A 01/15/10 6.050 2,957,439
3,475 Citibank Credit Card Issuance Trust, Series 2003-A6,
Class A6 05/17/10 2.900 3,324,842
3,325 Citibank Credit Card Issuance Trust, Series 2004-A1,
Class A1 01/20/09 2.550 3,250,054
3,325 Citibank Credit Card Issuance Trust, Series 2004-A4,
Class A4 08/24/09 3.200 3,238,498
2,759 Countrywide Asset-Backed Certificates, Series 2005-4,
Class AF1 10/25/35 4.660++ 2,759,494
3,167 Countrywide Asset-Backed Certificates, Series 2005-13,
Class 3AV1 04/25/36 4.620++ 3,166,946
3,831 Countrywide Asset-Backed Certificates, Series 2005-IM3,
Class A1 03/25/36 4.650++ 3,831,145
2,900 Countrywide Asset-Backed Certificates, Series 2006-IM1,
Class A1 04/25/36 4.650++ 2,899,698
2,693 DaimlerChrysler Auto Trust, Series 2004-B, Class A3 09/08/08 3.180 2,666,609
</Table>
78
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - (CONCLUDED)
2,000 Epoch 2002 Ltd. (2) 05/30/07 5.006%~ $ 2,015,000
2,925 MBNA Master Credit Card Trust, Series 2004-A4, Class A4 09/15/09 2.700 2,849,297
3,450 Nissan Auto Receivables Owner Trust, Series 2004-B,
Class A4 12/15/09 4.000 3,391,596
884 Polaris Securities, Inc., Series 2001-1, Class A1 +(2) 07/17/09 9.370# 777,512
3,300 Sallie Mae Student Loan Trust, Series 2005-8, Class A4 01/25/28 4.250 3,244,032
- ----------------------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities (cost - $46,767,926) 46,251,163
- ----------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - 30.06%
AEROSPACE & DEFENSE - 0.31%
565 Northrop Grumman Corp. 11/16/06 4.079 561,311
689 Raytheon Co. 08/15/07 6.750 703,460
- ----------------------------------------------------------------------------------------------------------------------------------
1,264,771
- ----------------------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.13%
527 Continental Airlines, Inc. 02/02/19 6.545 528,365
AUTOMOTIVE - 0.41%
800 DaimlerChrysler N.A. Holding 06/15/10 4.875 779,260
200 DaimlerChrysler N.A. Holding 11/15/13 6.500 207,633
660 Johnson Controls, Inc. 01/15/11 5.250 657,996
- ----------------------------------------------------------------------------------------------------------------------------------
1,644,889
- ----------------------------------------------------------------------------------------------------------------------------------
BANKING-NON-U.S. - 2.25%
390 HBOS Treasury Services PLC (2) 01/12/07 3.125 383,606
500 HBOS Treasury Services PLC (2) 09/30/08 3.750 485,213
1,400 Kreditanstalt Fuer Wiederaufbau 09/21/07 3.250 1,368,682
5,225 L-Bank BW Foerderbank 07/27/06 3.420 5,192,960
650 National Westminster Bank 10/16/07++++ 7.750^^ 676,393
625 Sumitomo Mitsui Banking (2) 10/15/15++++ 5.625^^ 620,211
425 Swedish Export Credit Corp. 01/15/08 3.500 415,154
- ----------------------------------------------------------------------------------------------------------------------------------
9,142,219
- ----------------------------------------------------------------------------------------------------------------------------------
BANKING-U.S. - 5.31%
400 BankBoston N.A. 04/15/08 6.375 411,544
260 Bank of America Corp. 04/15/06 7.200 261,084
1,315 Bank of America Corp. 02/15/10 7.800 1,445,469
90 Bank of America Corp. 08/01/10 4.500 88,157
250 Bank One Corp. 06/30/08 2.625 236,614
975 Bank One N.A., Illinois ++++++ 01/15/08 3.700 953,038
1,300 DEPFA Asset Covered Securities Bank (2) 10/28/15 4.875 1,284,010
825 Deutsche Bank AG NY 03/15/07 3.843~ 818,648
3,925 HSBC Bank USA 06/07/07 3.870 3,925,000
250 Huntington National Bank 10/16/06 2.750 246,162
635 Suntrust Bank 10/15/07 3.625 620,387
430 Suntrust Bank 10/15/08 4.000 419,383
500 Suntrust Bank 06/15/09 4.415 490,405
1,425 U.S. Bank N.A. 03/12/07 2.400 1,383,242
860 U.S. Bank N.A. 02/01/08 6.500 886,986
</Table>
79
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONTINUED)
BANKING--U.S. - (CONCLUDED)
785 U.S. Central Credit Union 05/30/08 2.750% $ 748,044
1,245 Wachovia Capital Trust III 03/15/11++++ 5.800^^ 1,247,522
1,500 Wachovia Corp. 11/01/06 4.950 1,499,127
840 Wachovia Corp. 12/15/08 5.625 855,846
925 Wells Fargo & Co. 05/21/06 5.900 927,574
1,150 Wells Fargo & Co. 08/15/08 3.120 1,101,012
1,545 Wells Fargo & Co. 01/15/10 4.200 1,500,730
220 Wells Fargo & Co. 01/12/11 4.875 218,647
- ----------------------------------------------------------------------------------------------------------------------------------
21,568,631
- ----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.44%
750 Encana Holdings Financial Corp. 05/01/14 5.800 774,260
845 Nationwide Building Society (2) 01/30/07 2.625 825,767
180 Nationwide Building Society (2) 02/01/10 4.250 174,723
- ----------------------------------------------------------------------------------------------------------------------------------
1,774,750
- ----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 0.42%
690 Tyco International Group SA 08/01/06 5.800 692,327
975 Tyco International Group SA 10/15/11 6.375 1,020,616
- ----------------------------------------------------------------------------------------------------------------------------------
1,712,943
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.92%
520 American Electric Power 08/16/07 4.709 516,416
415 Carolina Power & Light 12/15/15 5.250 410,289
625 DTE Energy Co. 08/16/07 5.630 628,678
650 PSEG Funding Trust 11/16/07 5.381 649,976
950 Scottish Power PLC 03/15/10 4.910 936,954
600 SP Powerassets Ltd. (2) 10/22/08 3.800 581,898
- ----------------------------------------------------------------------------------------------------------------------------------
3,724,211
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 0.03%
115 Loral Corp. 09/15/23 7.000 131,473
ENERGY - 0.42%
675 Anadarko Petroleum Corp. 05/01/08 3.250 650,436
60 Conoco Funding Co. 10/15/06 5.450 60,177
340 Florida Power Corp. 03/01/13 4.800 330,471
675 Ocean Energy, Inc. 10/01/07 4.375 666,437
- ----------------------------------------------------------------------------------------------------------------------------------
1,707,521
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCE-CONSUMER - 0.30%
1,175 Commercial Credit Co. 07/01/07 6.750 1,201,946
FINANCIAL SERVICES - 9.43%
450 Bank of New York Co., Inc. MTN ++++++ 09/01/07 3.900 442,721
550 Bear Stearns Co., Inc. 03/25/09 3.250 521,389
670 Bear Stearns Co., Inc. 06/23/10 4.550 655,247
4,445 Citigroup, Inc. 02/22/10 4.125 4,304,956
340 Citigroup, Inc. 08/03/10 4.625 334,438
2,875 Eksportfinans 07/15/09 4.375 2,827,732
</Table>
80
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONTINUED)
FINANCIAL SERVICES - (CONCLUDED)
1,225 General Electric Capital Corp. 08/15/07 3.500% $ 1,199,252
4,555 General Electric Capital Corp. 11/15/11 5.000 4,533,942
3,650 General Electric Capital Corp. MTN 01/15/08 3.450~ 3,625,330
695 General Electric Capital Corp. MTN 09/01/09 4.125 674,286
2,350 General Electric Capital Corp. MTN 10/21/10 4.875 2,333,609
3,925 Goldman Sachs Group, Inc. 01/15/11 5.000 3,898,086
675 HSBC Finance Corp. 07/15/06 7.200 681,689
350 HSBC Finance Corp. 01/30/07 5.750 352,347
50 HSBC Finance Corp. 08/01/10 6.375 52,410
1,530 J.P. Morgan Chase & Co. 02/01/08 4.000 1,501,860
375 Lehman Brothers Holdings, Inc. 02/05/06 6.625 375,036
450 Lehman Brothers Holdings, Inc. 03/13/09 3.600 431,924
1,800 Lehman Brothers Holdings, Inc. 01/14/11 5.000 1,789,108
800 Massmutual Global Funding (2) 07/15/08 2.550 754,711
2,650 Morgan Stanley 01/21/11 5.050 2,632,335
250 Morgan Stanley 04/15/11 6.750 267,747
575 Morgan Stanley 04/01/12 6.600 612,673
1,000 New York Life Global Funding MTN (2) 01/15/09 3.875 968,759
400 Nuveen Investments 09/15/15 5.500 391,796
455 Principal Life Global Funding (2) 04/30/08 3.625 441,487
345 State Street Corp. 06/15/10 7.650 383,186
250 TIAA Global Markets (2) 01/22/08 3.875 244,808
375 U.S. Bancorp 08/23/07 3.950 369,639
700 Washington Mutual Finance Corp. 05/15/06 6.250 702,820
- ----------------------------------------------------------------------------------------------------------------------------------
38,305,323
- ----------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 1.29%
575 Allstate Financial Global Funding II (2) 10/22/06 2.625 564,467
1,430 Berkshire Hathaway Finance Corp. 01/15/10 4.125 1,384,274
1,350 Chubb Corp. 11/16/07 4.934 1,346,459
750 Metlife, Inc. 06/15/15 5.000 732,967
235 Metropolitan Life Global Funding (2) 07/30/09 4.250 229,831
165 Protective Life Second Trust 11/24/08 3.700 159,632
850 Prudential Financial, Inc. 05/01/08 3.750 827,126
- ----------------------------------------------------------------------------------------------------------------------------------
5,244,756
- ----------------------------------------------------------------------------------------------------------------------------------
MEDIA - 0.85%
1,525 Comcast Corp. 11/15/10 5.450 1,529,060
745 Lenfest Communications, Inc. 02/15/08 7.625 777,705
225 News America Holdings 07/15/24 9.500 290,645
200 News America Holdings 02/23/25 8.500 237,043
255 News America, Inc. 12/15/14 5.300 250,594
350 Time Warner, Inc. 02/01/24 7.570 382,103
- ----------------------------------------------------------------------------------------------------------------------------------
3,467,150
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
81
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONTINUED)
MEDICAL PROVIDERS - 0.65%
1,700 Wellpoint, Inc. 06/15/06 6.375% $ 1,708,731
950 Wellpoint, Inc. 01/15/11 5.000 942,984
- ----------------------------------------------------------------------------------------------------------------------------------
2,651,715
- ----------------------------------------------------------------------------------------------------------------------------------
OIL & GAS - 0.69%
1,250 ConocoPhillips Co. 05/25/10 8.750 1,429,102
150 Encana Corp. 08/15/09 4.600 147,914
400 Gulfstream Natural Gas (2) 11/01/15 5.560 401,784
825 Kinder Morgan Finance (2) 01/05/11 5.350 823,059
- ----------------------------------------------------------------------------------------------------------------------------------
2,801,859
- ----------------------------------------------------------------------------------------------------------------------------------
OIL REFINING - 0.13%
225 Enterprise Products Operating LP 10/15/07 4.000 220,255
300 Tosco Corp. 01/01/07 7.250 305,277
- ----------------------------------------------------------------------------------------------------------------------------------
525,532
- ----------------------------------------------------------------------------------------------------------------------------------
OIL SERVICES - 0.13%
525 Halliburton Co. 10/15/10 5.500 533,854
PHARMACEUTICALS - 0.85%
305 Merck & Co., Inc. 07/01/06 5.250 305,232
460 Merck & Co., Inc. 03/30/07 2.500 447,718
340 Schering-Plough Corp. 12/01/13 5.550 342,998
2,340 Wyeth (2) 02/15/16 5.500 2,347,161
- ----------------------------------------------------------------------------------------------------------------------------------
3,443,109
- ----------------------------------------------------------------------------------------------------------------------------------
RAILROADS - 0.31%
750 Canadian National Railway Co. 03/15/13 4.400 713,407
555 Union Pacific Corp. 12/01/06 6.700 562,148
- ----------------------------------------------------------------------------------------------------------------------------------
1,275,555
- ----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 0.93%
340 Archstone-Smith Operating Trust 08/15/07 5.000 340,196
555 AvalonBay Communities, Inc. MTN 08/01/07 5.000 553,712
280 AvalonBay Communities, Inc. MTN 11/01/12 6.125 291,038
780 ERP Operating LP 03/15/12 6.625 833,125
800 Prologis (2) 11/15/10 5.250 797,489
225 Rouse Co. 03/15/09 3.625 209,775
315 Rouse Co. 11/26/13 5.375 296,649
460 Spieker Properties LP 01/15/08 6.750 472,880
- ----------------------------------------------------------------------------------------------------------------------------------
3,794,864
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL - 0.15%
130 Federated Department Stores 09/01/08 6.625 134,198
440 May Department Stores Co. 10/15/16 7.450 490,156
- ----------------------------------------------------------------------------------------------------------------------------------
624,354
- ----------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.42%
1,700 Oracle Corp./Ozark Holdings(2) 01/15/11 5.000 1,685,268
</Table>
82
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONCLUDED)
SPECIALTY PURPOSE ENTITY - 0.08%
330 BAE Systems Holdings, Inc. (2) 08/15/15 5.200% $ 320,342
TELECOMMUNICATIONS - 2.00%
1,585 AT&T Broadband Corp. 03/15/13 8.375 1,814,200
1,760 Bellsouth Corp. (2) 04/26/06 4.258~ 1,757,584
110 Cox Communications, Inc. 11/01/10 7.750 118,535
350 Cox Communications, Inc. 10/01/12 7.125 372,505
725 SBC Communications, Inc. (2) 06/05/06 4.389 723,492
95 SBC Communications, Inc. 02/01/12 5.875 96,997
475 Sprint Capital Corp. 01/30/11 7.625 522,576
100 TCI Communications, Inc. 08/01/13 7.875 111,824
50 TCI Communications, Inc. 08/01/15 8.750 59,883
265 Telecom Italia Capital 11/15/13 5.250 257,418
235 Telefonica Europe BV 09/15/10 7.750 256,340
2,030 Verizon New Jersey, Inc. 01/17/12 5.875 2,044,709
- ----------------------------------------------------------------------------------------------------------------------------------
8,136,063
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.74%
875 Dominion Resources, Inc. 11/15/06 3.660 864,861
650 Dominion Resources, Inc. 12/15/09 5.125 646,319
100 Dominion Resources, Inc. 09/15/14 7.195 110,209
950 Nisource Finance Corp. 11/23/09 4.950~ 953,083
375 Nisource Finance Corp. 11/15/10 7.875 414,145
- ----------------------------------------------------------------------------------------------------------------------------------
2,988,617
- ----------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATIONS - 0.47%
900 Vodafone Group PLC 01/30/08 3.950 882,658
920 Vodafone Group PLC 02/15/10 7.750 1,003,859
- ----------------------------------------------------------------------------------------------------------------------------------
1,886,517
- ----------------------------------------------------------------------------------------------------------------------------------
Total Corporate Notes (cost - $123,611,461) 122,086,597
- ----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GOVERNMENT OBLIGATIONS - 1.34%
EUR 500 Federal Republic of Germany 07/04/34 4.750 712,543
EUR 2,025 Federal Republic of Germany 01/04/37 4.000 2,570,670
955 Quebec Province of Canada 02/15/09 5.750 979,388
685 United Mexican States 03/03/15 6.625 739,800
400 United Mexican States 09/27/34 6.750 428,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total International Government Obligations (cost - $5,428,786) 5,430,401
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATION ~~ - 2.12%
8,600 Federal National Mortgage Association Corp.
(cost - $8,600,000) 02/01/06 4.350 8,600,000
REPURCHASE AGREEMENT - 0.02%
66 Repurchase Agreement dated 01/31/06 with State Street
Bank & Trust Co., collateralized by $53,491
U.S. Treasury Bills, zero coupon due 04/13/06 to
05/25/06 and $14,379 U.S. Treasury Notes, 2.500%
due 05/31/06; (value - $67,322); proceeds: $66,007
(cost - $66,000) 02/01/06 4.000 66,000
</Table>
83
<Page>
<Table>
<Caption>
NUMBER OF
SHARES INTEREST
(000) RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 10.26%
MONEY MARKET FUNDS++ - 0.83%
+++ 0 AIM Liquid Assets Portfolio 4.350% $ 44
164 AIM Prime Portfolio 4.346 164,082
+++ 0 Barclays Prime Money Market Fund 4.303 32
+++ 0 BlackRock Provident Institutional TempFund 4.318 342
2 Scudder Money Market Series 4.247 1,714
3,190 UBS Private Money Market Fund LLC** 4.347 3,189,886
- ----------------------------------------------------------------------------------------------------------------------------------
Total Money Market Funds (cost - $3,356,100) 3,356,100
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT MATURITY
(000)* DATES
- ----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--9.43%
18,083 Repurchase Agreement dated 01/31/06 with Deutsche Bank
Securities, Inc., collateralized by $17,385,000 Federal
Home Loan Bank obligations, 5.750% due 05/15/12;
(value - $18,448,943); proceeds: $18,084,856 02/01/06 4.440 18,082,626
20,203 Repurchase Agreement dated 01/31/06 with Merrill
Lynch & Co., collateralized by $20,715,000 Federal
Farm Credit Bank obligations, 5.625% to 6.000% due
05/14/13 to 10/19/20; (value - $20,610,861);
proceeds: $20,205,002 02/01/06 4.430 20,202,516
- ----------------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost - $38,285,142) 38,285,142
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investments of Cash Collateral from Securities Loaned
(cost - $41,641,242) 41,641,242
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investments Before Investments Sold Short
(cost - $460,709,267) - 112.48% 456,805,897
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT SOLD SHORT - (1.68)%
(6,900) FHLMC TBA (proceeds - $6,835,852) TBA 5.000 (6,813,750)
Liabilities in excess of other assets - (10.80)% (43,843,945)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% $ 406,148,202
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Security, or portion thereof, was on loan at January 31, 2006.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 6.08% of net assets as of
January 31, 2006, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
* In U.S. Dollars unless otherwise indicated.
~ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2006.
~~ 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.
## Entire or partial amount pledged as collateral for investments sold
short.
+ 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, 2006.
+++ Amount represents less than 500 shares.
++++ Perpetual bond security. The maturity date reflects the next call date.
^^ Variable rate securities - The interest rates shown are the current rates
as of January 31, 2006, and reset at the next call date.
++++++ Entire amount pledged as collateral for futures transactions.
ARM Adjustable Rate Mortgage - The interest rates shown are the current rates
as of January 31, 2006.
EUR Euro Dollars
FHLB Federal Home Loan Bank.
FHLMC Federal Home Loan Mortgage Corporation.
FNMA Federal National Mortgage Association.
GMAC General Motors Acceptance Corporation.
GNMA Government National Mortgage Association.
MTN Medium Term Note.
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.
84
<Page>
** The table below details the Portfolio's transaction activity in an
affiliated issuer for the six months ended January 31, 2006.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
VALUE AT ENDED ENDED VALUE AT ENDED
SECURITY DESCRIPTION 07/31/05 01/31/06 01/31/06 01/31/06 01/31/06
- --------------------------------------------------------------------------------------------------------------------------
UBS Private Money Market Fund LLC $ 21,399,173 $ 202,561,992 $ 220,771,279 $ 3,189,886 $ 7,378
- --------------------------------------------------------------------------------------------------------------------------
</Table>
FUTURES CONTRACTS
<Table>
<Caption>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION
CONTRACTS CURRENCY CONTRACTS TO RECEIVE EXCHANGE FOR DATES (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------------
29 USD 90 Day Euro Dollar Futures $ 6,901,107 June 2007 $ (194)
29 USD 90 Day Euro Dollar Futures 6,900,495 September 2007 1,142
68 USD U.S. Treasury Bond 20 Year Futures 7,695,131 March 2006 (21,756)
89 USD U.S. Treasury Note 2 Year Futures 18,250,510 March 2006 (19,416)
500 USD U.S. Treasury Note 10 Year Futures 54,314,738 March 2006 (95,988)
(136,212)
- -----------------------------------------------------------------------------------------------------------------------
CONTRACTS TO DELIVER
89 EUR Federal Republic of Germany Bond 5 Year Futures 12,203,993 March 2006 76,078
296 USD U.S. Treasury Note 5 Year Futures 31,390,401 March 2006 93,026
169,104
$ 32,892
- -----------------------------------------------------------------------------------------------------------------------
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS
<Table>
<Caption>
CONTRACTS TO IN MATURITY UNREALIZED
DELIVER EXCHANGE FOR DATES DEPRECIATION
- ------------------------------------------------------------------------------
Euro Dollar 2,877,107 USD 3,488,492 04/06/06 $ 21,063
New Zealand Dollar 8,028,009 USD 5,455,032 04/12/06 25,540
United States Dollar 3,282,005 EUR 2,655,000 04/06/06 43,380
United States Dollar 5,486,237 NZD 8,028,009 04/12/06 5,665
- ------------------------------------------------------------------------------
$ 95,648
- ------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
EUR Euro Dollars
NZD New Zealand Dollars
USD U.S. Dollars
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- --------------------------------------------------------
United States 94.8%
Germany 1.4
United Kingdom 1.2
Canada 0.6
Norway 0.6
Luxembourg 0.4
Ireland 0.3
Mexico 0.3
Japan 0.1
Singapore 0.1
Sweden 0.1
Netherlands 0.1
- --------------------------------------------------------
Total 100.0%
- --------------------------------------------------------
</Table>
See accompanying notes to financial statements
85
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- ------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 2.95%
$15,400 U.S. Treasury Notes (2) (cost - $15,100,441) 05/15/10 3.875% $ 15,021,021
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 0.13%
120 GNMA 06/15/17 8.000 128,427
124 GNMA 07/15/17 8.000 132,944
73 GNMA 09/15/17 8.000 77,617
158 GNMA 11/15/17 8.000 168,421
18 GNMA II ARM 11/20/23 4.125 18,439
22 GNMA II ARM 07/20/25 4.750 21,855
49 GNMA II ARM 01/20/26 4.375 49,221
71 GNMA II ARM 05/20/26 4.375 70,546
- ------------------------------------------------------------------------------------------------------------------------
Total Government National Mortgage Association Certificates (cost - $662,540) 667,470
- ------------------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION CERTIFICATES - 1.60%
4,324 FHLMC 11/01/08 4.500 4,282,101
1,548 FHLMC 05/01/25 7.645 1,680,726
387 FHLMC 09/01/35 5.000 374,099
192 FHLMC 10/01/35 5.000 185,262
1,712 FHLMC 11/01/35 5.000 1,653,656
- ------------------------------------------------------------------------------------------------------------------------
Total Federal Home Loan Mortgage Corporation Certificates (cost - $8,178,006) 8,175,844
- ------------------------------------------------------------------------------------------------------------------------
FEDERAL HOUSING ADMINISTRATION CERTIFICATES - 0.07%
208 FHA GMAC 12/01/21 7.430 210,007
84 FHA Reilly 08/01/20 7.430 85,019
65 FHA Reilly 10/01/20 7.430 65,728
- ------------------------------------------------------------------------------------------------------------------------
Total Federal Housing Administration Certificates (cost - $371,769) 360,754
- ------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION CERTIFICATES - 8.14%
3,681 FNMA 12/01/09 6.970 3,881,304
79 FNMA 01/01/35 5.500 77,770
2,965 FNMA 09/01/35 5.000 2,865,416
94 FNMA ARM 04/01/27 5.497 96,350
127 FNMA ARM 05/01/27 5.311 129,154
302 FNMA ARM 05/01/30 4.738 305,553
3,450 FNMA ARM 07/01/34 4.530 3,399,508
20,531 FNMA ARM 11/01/34 4.195 20,285,424
770 FNMA ARM 08/01/40 4.726 778,589
289 FNMA ARM COFI 11/01/26 3.311 289,977
9,500 FNMA TBA TBA 5.500 9,396,089
- ------------------------------------------------------------------------------------------------------------------------
Total Federal National Mortgage Association Certificates (cost - $41,644,369) 41,505,134
- ------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 53.23%
8,044 Banc of America Funding Corp., Series 2005-D, Class A1 05/25/35 4.116~ 7,835,176
19 Bank of America Mortgage Securities, Inc., Series 2002-G, Class 1A3 07/20/32 6.633~ 19,542
109 Bear Stearns, Series 2002-2, Class 3A 06/25/31 6.784~ 107,850
117 Bear Stearns, Series 2003-1, Class 5A1 04/25/33 5.450~ 116,409
389 Bear Stearns, Series 2003-1, Class 6A1 04/25/33 5.062~ 384,852
1,239 Bear Stearns, Series 2003-3, Class 1A 10/25/33 4.428~ 1,215,954
</Table>
86
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - (CONTINUED)
$ 4,138 Bear Stearns, Series 2004-3, Class 1A2 07/25/34 3.850%~ $ 4,099,909
6,437 Bear Stearns, Series 2004-6, Class 1A1 09/25/34 4.573~ 6,386,766
6,703 Bear Stearns, Series 2004-6, Class 2A1 09/25/34 5.104~ 6,668,516
6,418 Bear Stearns, Series 2004-7, Class 1A1 10/25/34 4.923~ 6,408,102
3,312 Bear Stearns, Series 2004-9, Class 2A1 09/25/34 5.378~ 3,306,167
366 Citicorp Mortgage Securities, Inc., Series 2002-12, Class 2A1 12/25/32 5.250 362,432
2,980 Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class A1A 12/25/35 4.900~ 2,957,045
1,971 Countrywide Alternative Loan Trust, Series 2003-J3, Class 2A1 12/25/33 6.250 1,971,977
3,463 Countrywide Home Loans, Series 2003-R4, Class 2A (1) 01/25/34 6.500 3,530,614
3,737 Countrywide Home Loans, Series 2004-12, Class 11A2 08/25/34 4.242~ 3,728,276
371 FHLMC REMIC, Series 1278, Class K 05/15/22 7.000 371,129
6 FHLMC REMIC, Series 1367, Class KA 09/15/22 6.500 5,755
1,511 FHLMC REMIC, Series 1502, Class PXZ 04/15/23 7.000 1,551,517
510 FHLMC REMIC, Series 1503, Class PZ 05/15/23 7.000 523,096
587 FHLMC REMIC, Series 1534, Class Z 06/15/23 5.000 581,683
441 FHLMC REMIC, Series 1548, Class Z 07/15/23 7.000 453,823
652 FHLMC REMIC, Series 1562, Class Z 07/15/23 7.000 663,837
149 FHLMC REMIC, Series 1694, Class Z 03/15/24 6.500 148,949
1,304 FHLMC REMIC, Series 2061, Class Z 06/15/28 6.500 1,322,460
587 FHLMC REMIC, Series 2400, Class FQ 01/15/32 4.970~ 591,357
5,479 FHLMC REMIC, Series 2579, Class DZ 03/15/34 5.000 4,824,898
2,800 FHLMC REMIC, Series 2581, Class QG 12/15/31 5.000 2,715,464
670 FHLMC REMIC, Series 2731, Class EZ 01/15/34 5.500 620,438
2,172 FHLMC REMIC, Series 2764, Class LZ 03/15/34 4.500 1,738,792
3,870 FHLMC REMIC, Series 2764, Class ZG 03/15/34 5.500 3,647,623
2,164 FHLMC REMIC, Series 2785, Class ZE 04/15/34 4.500 1,749,397
3,005 FHLMC REMIC, Series 2835, Class JZ 08/15/34 5.000 2,768,435
10,410 FHLMC REMIC, Series 2849, Class PZ 07/15/33 5.000 9,378,521
6,200 FHLMC REMIC, Series 2921, Class PG 01/15/35 5.000 5,796,242
314 FHLMC REMIC, Series 2931, Class ZY 02/15/35 5.000 276,647
4,032 FHLMC REMIC, Series 2981, Class XZ 03/15/35 5.000 3,533,620
4,475 FHLMC REMIC, Series 2983, Class TZ 05/15/35 6.000 4,489,830
921 FHLMC REMIC, Series 3022, Class EZ 08/15/35 5.500 855,907
392 FHLMC REMIC, Series G23, Class KZ 11/25/23 6.500 399,881
10,645 FHLMC REMIC, Series R003, Class ZA 10/15/35 5.500 9,886,170
2,364 FHLMC REMIC, Series T-054, Class 2A 02/25/43 6.500 2,419,780
8,652 FHLMC REMIC, Series T-058, Class 2A 09/25/43 6.500 8,845,045
7,628 FHLMC REMIC, Series T-061, Class 1A1 07/25/44 4.726~ 7,728,714
283 FNMA REMIC, Series 1998-066, Class FG 12/25/28 4.830~ 284,157
46 FNMA REMIC, Series 2000-034, Class F 10/25/30 4.980~ 46,656
4,267 FNMA REMIC, Series 2002-080, Class A1 11/25/42 6.500 4,368,265
5,700 FNMA REMIC, Series 2002-085, Class PE 12/25/32 5.500 5,532,960
8,170 FNMA REMIC, Series 2003-064, Class AH 07/25/33 6.000 8,167,489
294 FNMA REMIC, Series 2003-W8, Class 2A 10/25/42 7.000 304,116
</Table>
87
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - (CONTINUED)
$ 5,062 FNMA REMIC, Series 2004-T1, Class 1A1 01/25/44 6.000% $ 5,111,362
6,358 FNMA REMIC, Series 2004-W8, Class 2A 06/25/44 6.500 6,511,731
3,574 FNMA REMIC, Series 2005-09, Class ZA 02/25/35 5.000 3,057,892
4,900 FNMA REMIC, Series 2005-22, Class ZK 04/25/35 5.000 4,184,060
1,186 FNMA REMIC, Series 2005-024, Class ZE 04/25/35 5.000 1,019,626
1,758 FNMA REMIC, Series 2005-040, Class Z 05/25/35 4.500 1,398,232
412 FNMA REMIC, Series 2005-054, Class ZM 06/25/35 4.500 326,645
5,525 FNMA REMIC, Series 2005-116, Class TZ 01/25/36 5.500 5,164,989
6,028 FNMA REMIC, Series 2005-120, Class ZU 01/25/36 5.500 5,662,974
28 FNMA REMIC, Trust Series 1991-065, Class Z 06/25/21 6.500 29,101
65 FNMA REMIC, Trust Series 1992-040, Class ZC 07/25/22 7.000 67,469
33 FNMA REMIC, Trust Series 1992-129, Class L 07/25/22 6.000 33,367
92 FNMA REMIC, Trust Series 1993-037, Class PX 03/25/23 7.000 95,930
516 FNMA REMIC, Trust Series 1993-060, Class Z 05/25/23 7.000 536,670
671 FNMA REMIC, Trust Series 1993-065, Class ZZ 06/25/13 7.000 687,198
83 FNMA REMIC, Trust Series 1993-070, Class Z 05/25/23 6.900 83,748
492 FNMA REMIC, Trust Series 1993-096, Class PZ 06/25/23 7.000 517,852
68 FNMA REMIC, Trust Series 1993-160, Class ZB 09/25/23 6.500 68,072
43 FNMA REMIC, Trust Series 1993-163, Class ZA 09/25/23 7.000 44,434
418 FNMA REMIC, Trust Series 1994-023, Class PX 08/25/23 6.000 424,214
2,425 FNMA REMIC, Trust Series 1998-M5, Class B 09/25/07 6.270 2,442,322
2,192 FNMA REMIC, Trust Series 1998-M7, Class Z 05/25/36 6.390 2,297,913
2,027 FNMA REMIC, Trust Series 1999-W4, Class A9 02/25/29 6.250 2,065,451
3,523 GNMA REMIC, Series 2003-075, Class ZA 09/20/33 5.500 3,467,745
3,281 GNMA REMIC, Series 2003-085, Class TZ 10/20/33 5.500 3,027,262
340 GNMA REMIC, Trust Series 2000-009, Class FG 02/16/30 5.070~ 343,849
373 GNMA REMIC, Trust Series 2002-031, Class FW 06/16/31 4.870~ 375,810
11,385 GNMA REMIC, Trust Series 2003-098, Class Z 11/20/33 6.000 11,503,158
5,025 GNMA REMIC, Trust Series 2005-026, Class ZA 01/20/35 5.500 4,786,807
4,561 GSR Mortgage Loan Trust, Series 2005-AR6, Class 2A1 09/25/35 4.541 4,482,336
768 Housing Security, Inc., Series 1992-8, Class B 06/25/24 4.616~ 763,499
490 Keycorp Student Loan Trust, Series 1996-A, Class A2 08/27/25 5.047~ 491,465
1,488 Lehman Brothers Mortgage Trust, Series 1991-2, Class A3 01/20/17 8.412~ 1,616,405
2,200 Residential Asset Mortgage Products, Inc., Series 2006-RS1, Class AI1 01/25/36 4.610~ 2,199,991
2,259 Residential Funding Mortgage Security I, Series 2004-S2, Class A1 03/25/34 5.250 2,225,808
2,300 Residential Funding Mortgage Security I, Series 2004-S9, Class 1A23 12/25/34 5.500 2,108,508
1,254 Small Business Administration, Series 1999-20K, Class 1 11/01/19 7.060 1,316,793
1,598 Small Business Administration, Series 2000-20K, Class 1 11/01/20 7.220 1,713,296
3,780 Small Business Administration, Series 2001-P10B, Class 1 08/01/11 6.344 3,919,699
4,950 Small Business Administration, Series 2002-20K, Class 1 11/01/22 5.080 4,951,106
887 Small Business Administration, Series 2003-20I, Class 1 09/01/23 5.130 888,879
2,480 Small Business Administration, Series 2003-20L, Class 1 12/01/23 4.890 2,451,090
8,963 Small Business Administration, Series 2004-P10A, Class 1 02/10/14 4.504 8,709,935
2,800 Small Business Administration, Series 2005-20H, Class 1 08/01/25 5.110 2,793,217
</Table>
88
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - (CONCLUDED)
$ 3,114 Structured Adjustable Rate Mortgage Loan Trust, Series 2004-8, Class 3A 07/25/34 5.000% $ 3,086,596
2,051 Structured Asset Mortgage Investments, Inc., Series 2002-AR3, Class A1 09/19/32 4.813~ 2,052,825
4,558 Structured Asset Securities Corp., Series 2001-SB1, Class A2 08/25/31 3.375 4,209,907
546 Washington Mutual Mortgage Securities Corp., Series 2002-AR6, Class A 06/25/42 4.878~ 547,110
189 Washington Mutual Mortgage Securities Corp., Series 2002-AR11, Class A1 10/25/32 5.128~ 188,547
768 Washington Mutual Mortgage Securities Corp., Series 2005-AR1, Class A1A 01/25/45 4.850~ 768,263
889 Washington Mutual Mortgage Securities Corp., Series 2005-AR2, Class 2A1A 01/25/45 4.840~ 891,842
3,051 Wells Fargo Mortgage Backed Securities Trust, Series 2003-M, Class A1 12/25/33 4.715~ 2,949,989
5,100 Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 13 12/25/33 4.980 5,048,203
- -------------------------------------------------------------------------------------------------------------------------------
Total Collateralized Mortgage Obligations (cost - $274,930,432) 271,403,432
- -------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 2.75%
3,678 Ace Securities Corp., Series 2005-HE6, Class A2A 10/25/35 4.640~ 3,678,130
4,573 Argent Securities, Inc., Series 2005-W4, Class A2A 02/25/36 4.670~ 4,574,159
809 Asset Backed Funding Certificates, Series 2005-HE2, Class A2A 06/25/35 4.640~ 808,396
52 C-Bass Trust, Series 2000-CB4, Class A1A 02/25/30 4.850~ 51,897
128 Delta Funding Home Equity Loan Trust, Series 1999-003, Class A1A 09/15/29 4.880~ 127,986
4,000 First USA Credit Card Master Trust, Series 2001-4, Class A 01/12/09 4.560~ 4,001,573
759 Mid-State Trust, Series 4, Class A 04/01/30 8.330 799,795
- -------------------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities (cost - $14,031,151) 14,041,936
- -------------------------------------------------------------------------------------------------------------------------------
STRIPPED MORTGAGE-BACKED SECURITIES~ - 0.00%
25 FNMA REMIC, Trust Series 1993-40, Class P + (cost - $1,341) 04/25/08 7.000 1,544
CORPORATE NOTES - 13.02%
AEROSPACE & DEFENSE - 0.24%
1,200 BAE Systems Holdings, Inc. (1) 08/15/08 4.740~ 1,201,144
AIRLINE - 0.06%
376 United Air Lines, Inc. (a) 11/27/12 10.360 291,400
AUTOMOBILES - 0.10%
500 Daimler Chrysler N.A. Holding 11/15/13 6.500 519,082
BANKING - 0.90%
700 Republic NY Corp. 05/15/21 9.125 912,222
2,900 Resona Bank Ltd. (1) 09/29/49 5.850~ 2,882,629
800 VTB Capital (Vneshtorgbank) (1) 09/21/07 5.247~ 802,200
- -------------------------------------------------------------------------------------------------------------------------------
4,597,051
- -------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 2.72%
4,900 CIT Group, Inc. 11/24/08 5.000 4,888,975
2,500 Goldman Sachs Group, Inc. 12/22/08 4.591~ 2,499,202
400 Goldman Sachs Group, Inc. 10/15/13 5.250 395,816
1,200 Hutchison Whampoa International Ltd. 11/24/10 5.450 1,205,696
2,600 Lehman Brothers Holdings 01/23/09 4.713~ 2,599,041
2,300 Sumitomo Mitsui Banking (1) 12/31/49 5.625~ 2,282,375
- -------------------------------------------------------------------------------------------------------------------------------
13,871,105
- -------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.34%
1,800 PSE&G Power LLC 04/01/14 5.000 1,732,280
</Table>
89
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONTINUED)
ENERGY EQUIPMENT & SERVICES - 0.16%
$ 800 Panhandle Eastern Pipeline 08/15/08 4.800% $ 789,930
ENERGY-INTEGRATED - 0.31%
1,500 CMS Energy Corp. 07/15/08 8.900 1,597,500
FINANCE--NONCAPTIVE DIVERSIFIED - 0.36%
800 Ford Motor Credit Corp. 03/13/07 4.680~ 748,640
1,100 Ford Motor Credit Corp. 03/21/07 5.450~ 1,077,773
- -------------------------------------------------------------------------------------------------------------------------------
1,826,413
- -------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 3.27%
900 Bear Stearns Co., Inc. 01/31/11 4.898~ 900,395
200 Bombardier Capital, Inc. + 03/30/07 7.090 200,500
1,200 Citigroup, Inc. 05/02/08 4.310~ 1,200,635
1,400 Devon Financing Corp. 09/30/31 7.875 1,758,679
1,400 General Motors Acceptance Corp. 09/15/06 6.125 1,385,152
3,500 General Motors Acceptance Corp. 03/20/07 5.220~ 3,392,781
2,300 HSBC Bank USA 08/15/35 5.625 2,230,735
1,400 HSBC Finance Capital Trust IX 11/30/35 5.911~ 1,403,171
300 HSBC Finance Corp. 09/15/08 4.621~ 300,224
4,000 Infrastructure Finance Corp. 03/26/09 4.090~ 3,920,000
- -------------------------------------------------------------------------------------------------------------------------------
16,692,272
- -------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.49%
1,200 Host Marriott LP 10/01/07 9.250 1,272,000
1,200 Starwood Hotels Resorts 05/01/07 7.375 1,228,500
- -------------------------------------------------------------------------------------------------------------------------------
2,500,500
- -------------------------------------------------------------------------------------------------------------------------------
HOTELS/GAMING - 0.52%
1,100 MGM Mirage, Inc. 08/01/07 6.750 1,113,750
1,400 MGM Mirage, Inc. 09/15/10 8.500 1,519,000
- -------------------------------------------------------------------------------------------------------------------------------
2,632,750
- -------------------------------------------------------------------------------------------------------------------------------
MEDIA - 0.66%
2,000 Cox Enterprises, Inc. (1) 02/15/07 8.000 2,043,432
1,300 Time Warner, Inc. 08/15/06 8.110 1,319,345
- -------------------------------------------------------------------------------------------------------------------------------
3,362,777
- -------------------------------------------------------------------------------------------------------------------------------
MEDICAL PROVIDERS - 0.19%
1,000 HCA, Inc. 11/06/08 5.250 991,404
OIL & GAS - 0.62%
1,200 Ras Laffan LNG II (1) 09/30/20 5.298 1,170,324
2,000 Williams Cos., Inc. 02/16/07 5.935 2,002,500
- -------------------------------------------------------------------------------------------------------------------------------
3,172,824
- -------------------------------------------------------------------------------------------------------------------------------
OIL REFINING - 0.19%
1,000 Enterprise Products Operating L.P., Series B 10/15/09 4.625 973,474
OIL SERVICES - 0.71%
300 Pemex Project Funding Master Trust (1) 12/03/12 5.010~ 299,400
3,000 Pemex Project Funding Master Trust 12/15/14 7.375 3,312,000
- -------------------------------------------------------------------------------------------------------------------------------
3,611,400
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
90
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
CORPORATE NOTES - (CONCLUDED)
PAPER & PACKAGING - 0.17%
$ 900 Packaging Corp. of America 08/01/13 5.750% $ 887,106
SOFTWARE - 0.28%
1,400 Oracle Corp./ Ozark Holding (1) 01/13/09 4.810~ 1,399,705
TELECOMMUNICATION SERVICES - 0.73%
2,700 MCI, Inc. 05/01/09 6.688 2,784,375
1,000 Verizon North, Inc. * 01/01/21 5.634 959,260
3,743,635
- ---------------------------------------------------------------------------------------------------------------------------------
Total Corporate Notes (cost - $66,333,235) 66,393,752
- ---------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GOVERNMENT OBLIGATIONS - 3.64%
408 Federal Republic of Brazil 04/15/06 5.188~ 408,490
200 Federal Republic of Brazil 03/12/08 11.500 224,900
288 Federal Republic of Brazil 04/15/09 5.250~ 288,462
700 Federal Republic of Brazil 06/29/09 10.271~ 813,750
1,835 Federal Republic of Brazil 04/15/12 5.250~ 1,827,252
432 Federal Republic of Brazil 01/15/18 8.000 472,392
100 Federal Republic of Brazil 10/14/19 8.875 115,250
1,500 Federal Republic of Panama 07/23/12 9.375 1,773,750
600 Federal Republic of Panama 09/30/27 8.875 739,500
2,250 Federal Republic of Peru 02/21/12 9.125 2,598,750
JPY484,000 Republic of Italy 03/27/08 3.800 4,428,494
2,000 Russian Federation 06/26/07 10.000 2,128,400
1,675 Russian Federation 03/31/30 5.000~ 1,871,645
500 United Mexican States 09/24/22 8.000 610,000
200 United Mexican States 08/15/31 8.300 252,000
- ---------------------------------------------------------------------------------------------------------------------------------
Total International Government Obligations (cost - $17,753,473) 18,553,035
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - 3.99%
EDUCATION - 0.54%
600 Akron Ohio Income Tax, Revenue Community Learning Centers, Series A 12/01/33 5.000 621,174
1,300 Clark County Nevada School District, Series C 06/15/13 5.375 1,426,750
650 Detroit City School District, School Building & Site Improvement, Series A 05/01/32 5.000 701,519
- ---------------------------------------------------------------------------------------------------------------------------------
2,749,443
- ---------------------------------------------------------------------------------------------------------------------------------
TOBACCO - 2.58%
200 Golden State Tobacco Securitization Corp. 06/01/39 6.750 225,034
830 Golden State Tobacco Securitization Corp., Series 2003 A-1 06/01/33 6.250 905,721
3,100 Tobacco Settlement Funding Corp. 06/01/39 6.750 3,457,492
1,135 Tobacco Settlement Funding Corp., New Jersey 06/01/32 5.750 1,174,203
230 Tobacco Settlement Funding Corp., New Jersey 06/01/32 6.375 251,850
900 Tobacco Settlement Funding Corp., New Jersey 06/01/42 6.125 943,200
200 Tobacco Settlement Funding Corp., Rhode Island, Series A 06/01/42 6.250 208,742
1,075 Tobacco Settlement Funding Corp., Series 2001-B 05/15/39 5.875 1,133,233
240 Tobacco Settlement Funding Corp., Virginia 06/01/13 4.000 239,520
1,100 Tobacco Settlement Funding Corp., Virginia 06/01/37 5.625 1,116,478
125 Tobacco Settlement Revenue Management Authority, South Carolina Tobacco
Settlement Revenue, Series A 05/15/16 7.666 127,972
</Table>
91
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)# DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONCLUDED)
TOBACCO - (CONCLUDED)
$ 3,030 Tobacco Settlement Revenue Management Authority, South Carolina
Tobacco Settlement Revenue, Series B 05/15/30 6.375% $ 3,374,481
- -------------------------------------------------------------------------------------------------------------------------------
13,157,926
- -------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.18%
400 California Infrastructure & Economic Development Revenue 07/01/36 5.000 415,048
500 Harris County Texas, Refunding Toll Road Senior Lien 08/15/33 5.000 516,830
- -------------------------------------------------------------------------------------------------------------------------------
931,878
- -------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.69%
1,300 Energy Northwest Washington Electric Revenue 07/01/15 5.500 1,458,132
500 Lower Colorado River Authority Revenue 05/15/28 5.000 515,985
1,500 New York City Municipal Water Finance Authority 06/15/34 5.000 1,544,610
- -------------------------------------------------------------------------------------------------------------------------------
3,518,727
- -------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds and Notes (cost - $19,339,541) 20,357,974
- -------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INTERNATIONAL GOVERNMENT OBLIGATIONS - 0.04%
EUR 170 Republic of France Treasury Bill (cost - $202,379) 03/30/06 2.330 205,811
COMMERCIAL PAPER@ - 10.22%
BANKING--NON-U.S. - 6.91%
13,200 BNP Paribas 02/28/06 to 05/10/06 4.305 to 4.480 13,104,479
13,800 SwedBank 03/28/06 4.405 13,707,128
1,200 Westpac Banking Corp. 02/21/06 4.300 1,197,133
7,300 Westpac Trust Securities NZ Ltd. 04/28/06 4.440 7,222,572
- -------------------------------------------------------------------------------------------------------------------------------
35,231,312
- -------------------------------------------------------------------------------------------------------------------------------
BANKING--U.S. - 3.31%
600 Dexia Delaware LLC 04/04/06 4.425 595,427
2,100 Rabobank USA Financial Corp. 02/01/06 4.470 2,100,000
14,300 Societe Generale N.A., Inc. 02/21/06 to 04/20/06 4.110 to 4.430 14,204,145
- -------------------------------------------------------------------------------------------------------------------------------
16,899,572
- -------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper (cost - $52,130,884) 52,130,884
- -------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE OBLIGATIONS - 0.06%
FINANCE-NONCAPTIVE DIVERSIFIED - 0.06%
300 Ford Motor Credit Corp. (cost - $300,000) 02/01/06 6.875 300,000
U.S. GOVERNMENT AGENCY OBLIGATIONS@ - 0.56%
2,885 U.S. Treasury Bills ~~ (cost - $2,874,608) 03/02/06 to 03/16/06 3.830 to 4.117 2,874,608
REPURCHASE AGREEMENTS - 1.75%
5,000 Repurchase Agreement dated 01/31/06 with Credit Suisse First
Boston, collateralized by $5,151,759 U.S. Treasury Notes,
4.375% due 01/31/08; (value - $5,126,000); proceeds:$5,000,600 02/01/06 4.320 5,000,000
3,904 Repurchase Agreement dated 01/31/06 with State Street Bank &
Trust Co., collateralized by $4,020,000 U.S. Treasury Bills,
zero coupon due 04/13/06; (value - $3,985,830); proceeds:
$3,904,434 02/01/06 4.000 3,904,000
- -------------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost - $8,904,000) 8,904,000
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
92
<Page>
<Table>
<Caption>
NUMBER OF
CONTRACTS MATURITY INTEREST
(000) DATES RATES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
OPTIONS - 0.01%
CALL OPTIONS PURCHASED - 0.01%
31,000 3 Month LIBOR Interest Rate Swap (3), strike @ 4.25% , expires 10/12/06 $ 8,680
10,000 3 Month LIBOR Interest Rate Swap (3), strike @ 4.25% , expires 10/19/06 2,900
27,000 3 Month LIBOR Interest Rate Swap (3), strike @ 4.50% , expires 10/18/06 24,570
- ---------------------------------------------------------------------------------------------------------------------------
Total Options (cost - $243,275) 36,150
- ---------------------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 2.97%
MONEY MARKET FUND+++ - 0.62%
3,150 UBS Private Money Market Fund LLC** (cost - $3,150,036) 4.347% 3,150,036
<Caption>
PRINCIPAL
AMOUNT
(000)
- ---------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.35%
$ 12,009 Repurchase Agreement dated 01/31/06 with Merrill Lynch & Co., collateralized
by $12,325,000 Federal Farm Credit Bank obligations, 5.625% due 10/19/20;
(value - $12,253,777); proceeds: $12,010,240 (cost - $12,008,762) 02/01/06 4.430 12,008,762
- ---------------------------------------------------------------------------------------------------------------------------
Total Investments of Cash Collateral from Securities Loaned (cost - $15,158,798) 15,158,798
- ---------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $538,160,242) - 105.13% 536,092,147
Liabilities in excess of other assets - (5.13)% (26,163,923)
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% $ 509,928,224
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
+ Illiquid securities representing 0.04% of net assets as of January 31,
2006.
++ 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 rate shown reflects yield at January 31, 2006.
~ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2006.
~~ 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 3.06% of net assets as of
January 31, 2006, 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, 2006.
(3) 3 Month LIBOR (London Interbank Offered Rate) at January 31, 2006 was
4.680%.
(a) Bond interest in default.
ARM Adjustable Rate Mortgage-The interest rates shown are the current rates
as of January 31, 2006.
COFI Cost of Funds Index.
EUR Euro Dollars
FHA Federal Housing Administration.
FHLMC Federal Home Loan Mortgage Corporation.
FNMA Federal National Mortgage Association.
GMAC General Motors Acceptance Corporation.
GNMA Government National Mortgage Association.
JPY Japanese Yen
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.
93
<Page>
* Security exempt from registration under Rule 144A of the Securities Act of
1933. This security, which represents 0.19% of net assets as of January 31,
2006, is considered illiquid and restricted (see table below for more
information).
<Table>
<Caption>
ACQUISITION COST MARKET VALUE
AS A AS A
PERCENTAGE OF PERCENTAGE OF
ACQUISITION PORTFOLIO'S NET MARKET PORTFOLIO'S NET
ILLIQUID AND RESTRICTED SECURITY ACQUISITION DATE COST ASSETS VALUE ASSETS
- --------------------------------------------------------------------------------------------------------------------
Verizon North, Inc. 5.634%, 01/01/21 04/25/03 $ 1,000,000 0.20% $ 959,260 0.19%
</Table>
** The table below details the Portfolio's transaction activity in an
affiliated issuer for the six months ended January 31, 2006.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
VALUE AT ENDED ENDED VALUE AT ENDED
SECURITY DESCRIPTION 07/31/05 01/31/06 01/31/06 01/31/06 01/31/06
- ---------------------------------------------------------------------------------------------------------------------
UBS Private Money Market Fund LLC $ 8,798,893 $ 48,210,997 $ 53,859,854 $ 3,150,036 $ 10,477
</Table>
WRITTEN OPTIONS
<Table>
<Caption>
NUMBER OF
CONTRACTS
(000) VALUE
- -----------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN
13,000 3 Month LIBOR Interest Rate Swap (3), strike @ 4.30%, expires 10/12/06 $ 16,900
4,500 3 Month LIBOR Interest Rate Swap (3), strike @ 4.31%, expires 10/19/06 6,390
12,000 3 Month LIBOR Interest Rate Swap (3), strike @ 4.56%, expires 10/18/06 40,800
- -----------------------------------------------------------------------------------------------------
Total Call Options Written (premiums received - $245,225) $ 64,090
- -----------------------------------------------------------------------------------------------------
</Table>
(3) 3 Month LIBOR (London Interbank Offered Rate) at January 31, 2006 was
4.680%.
FUTURES CONTRACTS
<Table>
<Caption>
NUMBER OF IN EXPIRATION UNREALIZED
CONTRACTS CURRENCY CONTRACTS TO RECEIVE EXCHANGE FOR DATES DEPRECIATION
- ---------------------------------------------------------------------------------------------------------
403 USD 90 Day Euro Dollar Futures $ 96,440,250 March 2006 $ 551,438
227 USD 90 Day Euro Dollar Futures 54,213,550 June 2006 258,488
105 USD 90 Day Euro Dollar Futures 24,986,138 September 2006 28,950
46 USD 90 Day Euro Dollar Futures 11,009,075 December 2006 71,425
44 USD 90 Day Euro Dollar Futures 10,531,125 March 2007 63,525
44 USD 90 Day Euro Dollar Futures 10,527,825 June 2007 57,475
180 USD 90 Day Euro Dollar Futures 42,843,250 December 2007 10,000
180 USD 90 Day Euro Dollar Futures 42,836,500 March 2008 5,500
180 USD 90 Day Euro Dollar Futures 42,827,000 June 2008 5,000
180 USD 90 Day Euro Dollar Futures 42,818,500 September 2008 7,750
46 USD U.S. Treasury Note 5 Year Futures 4,882,875 March 2006 19,094
22 USD U.S. Treasury Note 10 Year Futures 2,388,547 March 2006 2,922
24 JPY Japan Bonds 10 Year Futures 28,074,659 March 2006 30,751
- ---------------------------------------------------------------------------------------------------------
$ 1,112,318
- ---------------------------------------------------------------------------------------------------------
</Table>
94
<Page>
FORWARD FOREIGN CURRENCY CONTRACTS
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN APPRECIATION
DELIVER EXCHANGE FOR MATURITY DATES (DEPRECIATION)
- ----------------------------------------------------------------------------------------------
Japanese Yen 506,764,000 USD 4,442,999 02/14/06 $ 115,359
United States Dollar 153,458 JPY 17,900,000 02/14/06 (596)
United States Dollar 884,897 EUR 731,000 02/22/06 4,560
United States Dollar 666,752 GBP 378,000 02/23/06 5,734
- ----------------------------------------------------------------------------------------------
$ 125,057
- ----------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
EUR Euro Dollars
GBP Great Britain Pounds
JPY Japanese Yen
USD U.S. Dollars
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- -----------------------------------------------------------
United States 88.3%
Sweden 2.6
France 2.4
Australia 1.6
Italy 0.8
Brazil 0.8
Cayman Islands 0.8
Russia 0.7
Peru 0.5
Panama 0.5
Japan 0.4
Qatar 0.2
Mexico 0.2
Luxembourg 0.1
Canada 0.1
- -----------------------------------------------------------
Total 100.0%
- -----------------------------------------------------------
</Table>
See accompanying notes to financial statements
95
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE MUNICIPAL FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - 98.52%
ALABAMA - 0.59%
$ 1,500 Montgomery Special Care Facilities Financing Authority Revenue Capital
Appreciation Refunding Series B-2 (Escrowed to Maturity) (FSA Insured) 11/15/10 5.000%++ $ 1,460,715
ALASKA - 1.65%
970 Alaska Housing Finance Corp. AMT Mortgage Series A-2* 12/01/10 5.650 1,000,409
900 Alaska Student Loan Corp. Revenue Series A (AMBAC Insured)* 07/01/06 5.350 906,867
1,155 Alaska Student Loan Corp. Revenue Series A (AMBAC Insured)* 07/01/09 5.550 1,219,611
975 Northern Tobacco Securitization Corp. Alaska Tobacco Settlement
Asset-Backed Bonds 06/01/15 4.750 983,073
- ----------------------------------------------------------------------------------------------------------------------
4,109,960
- ----------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.05%
2,000 Maricopa County Pollution Control Revenue Refunding Edison Co. Series A
(Mandatory Put 03/02/09 @ $100) 06/01/35 2.900# 1,932,560
25 Pima County Hospital Revenue St. Joseph Hospital Project (Escrowed to
Maturity) 01/01/09 7.500 26,616
1,345 Pima County Industrial Development Authority Single-Family Mortgage
Revenue Capital Appreciation Series B (FNMA/GNMA Collateralized)* 09/01/25 4.550 1,342,283
1,800 San Manuel Entertainment Series 04-C** 12/01/16 4.500 1,807,002
- ----------------------------------------------------------------------------------------------------------------------
5,108,461
- ----------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.00%
12 Springdale Residential Housing Mortgage Series A (FNMA Collateralized) 09/01/11 7.650 11,806
CALIFORNIA - 10.03%
60 California Pollution Control Financing Kaiser Steel Corp. Project
(Escrowed to Maturity) 10/01/08 7.250 63,109
1,465 California State 10/01/08 6.100 1,564,019
2,000 California State 02/01/10 5.000 2,107,860
1,000 California State 04/01/10 5.000 1,055,850
2,000 California State 10/01/10 5.250 2,143,600
1,000 California State 10/01/11 5.000 1,066,650
1,000 California State 02/01/12 5.000 1,066,880
2,000 California State 02/01/13 5.000 2,143,120
1,000 California State Department Water Resources Power Supply Revenue
Series A 05/01/10 5.500 1,075,550
3,000 California State Economic Recovery Series B (Mandatory Put 07/01/08
@ $100) 07/01/23 5.000 3,104,040
1,000 California Statewide Communities Development Authority Revenue Kaiser
Permanente Series B (Mandatory Put 07/01/14 @ $100) 08/01/31 3.900# 970,180
1,000 California Statewide Communities Development Authority Revenue Kaiser
Permanente Series E (Mandatory Put 04/01/10 @ $100) 04/01/32 3.875 997,480
1,000 California Statewide Communities Development Authority Revenue Kaiser
Permanente Series H (Mandatory Put 05/01/08 @ $100) 04/01/34 2.625# 972,090
1,200 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue
Enhanced Asset-Backed Series A (AMBAC Insured) 06/01/20 5.000 1,248,216
3,730 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue
Series A-1 06/01/21 5.000 3,754,767
55 Los Angeles Multi-Family Revenue Housing Earthquake Rehabilitation
Project Series C (FNMA Collateralized)* 07/01/07 5.150 56,042
425 Sacramento Utility District Electric Revenue, White Rock Project
(Escrowed to Maturity) 03/01/10 6.750 451,236
195 Sacramento Utility District Electric Revenue, White Rock Project
(Escrowed to Maturity) 05/01/10 6.800 208,096
1,000 Tobacco Securitization Authority Northern California Tobacco Settlement
Revenue Asset-Backed Bonds Series A-1 06/01/23 4.750 992,940
- ----------------------------------------------------------------------------------------------------------------------
25,041,725
- ----------------------------------------------------------------------------------------------------------------------
</Table>
96
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
CONNECTICUT - 0.82%
$ 2,000 Stamford Housing Authority Multi-Family Revenue Refunding Fairfield
Apartments Project (Mandatory Put 12/01/08 @ $100)* 12/01/28 4.750%# $ 2,040,140
DISTRICT OF COLUMBIA - 0.51%
210 District of Columbia Housing Finance Authority Certificates of
Participation (Asset Guaranty Insured) 06/01/08 4.850 210,197
1,000 Metropolitan Airport Authority System AMT Series A (MBIA Insured)* 10/01/12 5.000 1,053,770
- ----------------------------------------------------------------------------------------------------------------------
1,263,967
- ----------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.57%
500 Escambia County Health Facilities Authority Revenue Ascension Health
Credit Series A 11/15/11 5.250 535,850
2,000 Hialeah Housing Authority Municipal Housing Revenue (Pre-refunded with
U.S. Government Securities to 11/01/06 @ $103) 11/01/21 9.500 2,148,560
1,915 Leon County Educational Facilities Authority Certificates of
Participation (Escrowed to Maturity) 09/01/11 9.000 2,417,898
1,260 North Miami Educational Facilities Revenue Johnston & Wales University
Project Series A (XL Capital Insured) 04/01/09 5.000 1,316,511
- ----------------------------------------------------------------------------------------------------------------------
6,418,819
- ----------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.86%
2,000 Georgia State Series D 10/01/10 6.000 2,222,080
1,250 Henry County School District Series A 08/01/11 6.450 1,376,200
1,000 Municipal Electric Authority Project One Subseries D (MBIA Insured) 01/01/10 5.000 1,054,430
- ----------------------------------------------------------------------------------------------------------------------
4,652,710
- ----------------------------------------------------------------------------------------------------------------------
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 1,016,370
IDAHO - 0.49%
790 Idaho Housing & Finance Association Single-Family Mortgage Series G-2,
Class III* 07/01/19 5.950 818,329
405 Idaho Housing & Finance Association Single-Family Mortgage
Subseries D-3* 07/01/13 5.150 408,941
- ----------------------------------------------------------------------------------------------------------------------
1,227,270
- ----------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.56%
170 Belleville St. Clair County (Escrowed to Maturity) (MGIC Insured) 11/01/09 7.250 183,952
1,000 Chicago O'Hare International Airport Revenue Passenger Facility Second
Lien Series A (AMBAC Insured)* 01/01/10 5.500 1,060,170
2,000 Chicago School Finance Authority Refunding Series A (FGIC Insured) 06/01/09 6.250 2,136,280
4,340 Cook County Community Consolidated School District Number 15 Palatine
Capital Appreciation (FGIC Insured) 12/01/15 5.440^ 2,867,872
4,890 Cook County Community Consolidated School District Number 15 Palatine
Capital Appreciation (FGIC Insured) 12/01/16 5.510^ 3,072,143
1,000 Illinois Development Finance Authority Revenue DePaul University
Series C 10/01/13 5.500 1,082,020
1,625 Illinois Development Finance Authority Revenue Refunding Community
Rehabilitation Providers Series A 07/01/09 5.900 1,666,649
660 Illinois Educational Facilities Authority Revenue Evangelical Series A
(Escrowed to Maturity) 04/15/17 6.750 787,479
700 Illinois Finance Authority Student Housing Revenue MJH Education
Assistance IV Senior Series A 06/01/08 5.000 714,252
810 Illinois Finance Authority Student Housing Revenue MJH Education
Assistance IV Senior Series A 06/01/10 5.000 833,117
5,990 Illinois Health Facilities Authority Revenue Advocate Network
Health Care 11/15/10 6.000 6,547,909
</Table>
97
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
ILLINOIS - (CONCLUDED)
$ 125 Illinois Health Facilities Authority Revenue Ravenswood Hospital
Medical Center (Escrowed to Maturity) 08/01/06 7.250% $ 127,451
285 St. Clair County Certificates of Participation Series A (FSA Insured) 10/01/08 5.000 295,633
- ----------------------------------------------------------------------------------------------------------------------
21,374,927
- ----------------------------------------------------------------------------------------------------------------------
INDIANA - 3.89%
5,000 Indiana Health Facility Financing Authority Revenue Ascension Health
Subordinated Credit Series A 04/01/10 5.000 5,245,650
1,345 Indiana Health Facility Financing Authority Revenue Health Systems
Sisters of St. Francis 11/01/08 5.500 1,407,421
1,500 Indianapolis Airport Authority Revenue Refunding Special Facilities
Federal Express Corp. Project (Federal Express Co. Insured)* 01/15/17 5.100 1,565,250
1,410 Wayne Township Marion County School Building Corp. First Mortgage
(FGIC Insured) 07/15/10 5.000 1,493,430
- ----------------------------------------------------------------------------------------------------------------------
9,711,751
- ----------------------------------------------------------------------------------------------------------------------
IOWA - 0.44%
1,000 Tobacco Settlement Authority Asset-Backed Revenue Bonds Series B
(Pre-refunded with Agency Securities to 06/01/11 @ $101) 06/01/35 5.600 1,099,520
KANSAS - 0.41%
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# 997,590
15 Wichita Hospital Revenue St. Francis Hospital & Nursing Series A
(Escrowed to Maturity) 10/01/07 6.750 15,487
- ----------------------------------------------------------------------------------------------------------------------
1,013,077
- ----------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.10%
170 East Baton Rouge Parish Womans Hospital Foundation (Escrowed to
Maturity) 10/01/08 7.200 179,542
5 East Baton Rouge Single-Family Mortgage Series C (FNMA/GNMA
Collateralized) 04/01/32 7.000 5,006
60 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 60,709
- ----------------------------------------------------------------------------------------------------------------------
245,257
- ----------------------------------------------------------------------------------------------------------------------
MAINE - 0.07%
185 Maine State Housing Authority Mortgage Purchase Series D-1 11/15/16 5.050 185,396
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 1,009,590
MASSACHUSETTS - 7.70%
2,000 Massachusetts Bay Transportation Authority Sales Tax Revenue Series A 07/01/10 5.000 2,123,400
3,115 Massachusetts Municipal Wholesale Electric Co. Power Supply Systems
Revenue Nuclear Project 4-A (MBIA Insured) 07/01/11 5.000 3,319,905
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 3,403,149
2,500 Massachusetts State Consolidated Loan Series C (Pre-refunded with U.S.
Government Securities to 10/01/10 @ $100) 10/01/19 5.750 2,726,625
2,000 Massachusetts State Development Finance Agency Solid Waste Disposal
Revenue Waste Management Income Project (XL Capital Insured)* 06/01/14 5.450 2,128,540
5,000 Massachusetts State Refunding Series A 11/01/10 6.000 5,526,200
- ----------------------------------------------------------------------------------------------------------------------
19,227,819
- ----------------------------------------------------------------------------------------------------------------------
</Table>
98
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
MICHIGAN - 0.32%
$ 800 Michigan State Strategic Fund Waste Management Income Project
(Mandatory Put 08/01/07 @ $100)* 08/01/27 3.750%# $ 796,344
MINNESOTA - 0.02%
35 Moorhead Residential Mortgage (Escrowed to Maturity) (FHA/VA Insured) 08/01/11 7.100 38,618
MISSOURI - 1.28%
1,375 St. Louis Airport Revenue Airport Development Program Series A
(Escrowed to Maturity) (MBIA Insured) 07/01/09 5.500 1,465,984
1,625 St. Louis Airport Revenue Airport Development Program Unrefunded
Balance Series A (MBIA Insured) 07/01/09 5.500 1,731,990
5 St. Louis County Single-Family Housing (AMBAC Insured) 10/01/16 9.250 5,041
- ----------------------------------------------------------------------------------------------------------------------
3,203,015
- ----------------------------------------------------------------------------------------------------------------------
NEVADA - 0.78%
2,000 Clark County Pollution Control Revenue Refunding Series C
(Mandatory Put 03/02/09 @ $100)* 06/01/31 3.250# 1,947,520
NEW JERSEY - 5.38%
1,500 New Jersey Economic Development Authority Market Transition Facility
Revenue Refunding Senior Lien Series A (MBIA Insured) 07/01/11 5.000 1,601,700
1,000 New Jersey Economic Development Authority Revenue School Facilities
Construction Series I 09/01/14 5.000 1,069,540
1,000 New Jersey Economic Development Authority Revenue School Facilities
Construction Series O 03/01/11 5.000 1,060,040
1,000 New Jersey Health Care Facilities Financing Authority Department of
Human Services Greystone Park Psychiatric Hospital 09/15/10 5.000 1,056,600
2,500 New Jersey State Transportation Trust Fund Authority Transportation
Systems Series B (FGIC Insured) 12/15/11 5.250 2,704,525
4,000 New Jersey State Transportation Trust Fund Authority Transportation
Systems Series C (FSA Insured) 12/15/10 5.500 4,340,960
545 Tobacco Settlement Financing Corp. New Jersey 06/01/19 4.375 545,986
1,000 Tobacco Settlement Financing Corp. New Jersey Asset-Backed Revenue
Bonds 06/01/11 5.500 1,055,610
- ----------------------------------------------------------------------------------------------------------------------
13,434,961
- ----------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.68%
2,000 Farmington Pollution Control Revenue Refunding Series B (Mandatory
Put 04/10/10 @ $100) (FGIC Insured) 04/01/29 3.550# 1,989,200
2,000 New Mexico State Highway Commission Revenue Senior Subordinated Lien
Tax Series A 06/15/10 5.250 2,136,580
2,500 New Mexico State Severance Tax Refunding Series A (Partially
Pre-refunded with U.S. Government Securities to 07/01/07 @ $100) 07/01/08 5.000 2,558,625
- ----------------------------------------------------------------------------------------------------------------------
6,684,405
- ----------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.49%
1,000 Nassau Health Care Corp. Health Systems Revenue (Pre-refunded with cash
and U.S. Government Securities to 08/01/09 @ $102) (FSA Insured) 08/01/11 6.000 1,103,240
4,000 New York City Industrial Development Agency Special Facility Revenue
Terminal One Group Association Project* 01/01/11 5.000 4,153,280
1,000 New York City Municipal Water Finance Authority Water & Sewer Systems
Revenue Series D 06/15/10 5.500 1,079,170
1,000 New York City Refunding Series B 08/01/11 5.500 1,082,990
385 New York City Series A (Escrowed to Maturity) 11/01/08 5.250 404,046
750 New York City Series C 08/01/09 5.250 791,437
3,000 New York City Series C 08/01/11 5.250 3,215,160
65 New York City Series E (Pre-refunded with U.S. Government Securities to
08/01/06 @ $101.50) 08/01/16 6.000 66,855
</Table>
99
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
NEW YORK - (CONCLUDED)
$ 3,045 New York City Series H 08/01/10 5.000% $ 3,210,953
1,500 New York City Series J 06/01/11 5.250 1,605,300
2,000 New York City Transitional Finance Authority Revenue Future Tax Secured
Series A 11/01/26 5.500# 2,179,180
1,615 New York City Unrefunded Balance Series A 11/01/08 5.250 1,690,388
135 New York City Unrefunded Balance Series E 08/01/16 6.000 138,696
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# 1,634,325
2,000 New York State Dorm Authority Revenue Series B (Mandatory Put
05/15/12 @ $100) 11/15/23 5.250 2,153,800
3,000 New York State Housing Finance Agency Service Contract Revenue
Refunding Series K 03/15/08 5.000 3,095,010
1,000 New York State Urban Development Corp. Correctional & Youth Facilities
Service Series A (Mandatory Put 01/01/11 @ $100) 01/01/17 5.500 1,078,110
- ----------------------------------------------------------------------------------------------------------------------
28,681,940
- ----------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.13%
2,650 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue
Series A (MBIA Insured) 01/01/09 5.750 2,819,176
OHIO - 2.47%
1,145 Butler County Transportation Improvement District Series A
(Pre-refunded with U.S. Government Securities to 04/01/08 @ $102)
(FSA Insured) 04/01/11 6.000 1,228,402
2,265 Cleveland Waterworks Revenue Refunding First Mortgage Series G
(MBIA Insured) 01/01/13 5.500 2,431,183
1,680 Franklin County Revenue Refunding Trinity Health Credit Series A 06/01/11 5.000 1,778,666
730 Ohio Housing Finance Agency Mortgage Revenue Residential Series B-2
(GNMA Collateralized)* 09/01/18 5.350 730,708
- ----------------------------------------------------------------------------------------------------------------------
6,168,959
- ----------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.48%
800 Allegheny County Sanitation Authority Sewer Revenue (Pre-refunded with
U.S. Government Securities and a Repurchase Agreement to 12/01/10
@ $101) (MBIA Insured) 12/01/15 5.750 879,752
25 Chester County Hospital Authority Revenue (Escrowed to Maturity) 07/01/09 7.500 26,607
50 Lancaster Sewer Authority (Escrowed to Maturity) 04/01/12 6.000 53,267
2,000 Pennsylvania Economic Development Financing Authority Resource Recovery
Revenue Refunding Colver Project Series F (AMBAC Insured)* 12/01/12 5.000 2,113,180
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# 2,963,730
1,000 Philadelphia Airport Revenue Series A (MBIA Insured)* 06/15/10 5.000 1,050,020
1,500 Philadelphia School District Refunding Series B (AMBAC Insured) 04/01/13 5.000 1,611,435
- ----------------------------------------------------------------------------------------------------------------------
8,697,991
- ----------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 6.02%
1,000 Puerto Rico Commonwealth Refunding Series A (Mandatory Put 07/01/12
@ $100) 07/01/30 5.000# 1,050,870
2,000 Puerto Rico Commonwealth Refunding Series C (Mandatory Put 07/01/08
@ $100) 07/01/13 6.000 2,096,360
1,000 Puerto Rico Commonwealth Refunding Series C (Mandatory Put 07/01/08
@ $100) 07/01/18 5.000# 1,025,800
3,000 Puerto Rico Public Buildings Authority Revenue Guaranteed Refunding
Government Facilities Series J (Mandatory Put 07/01/12 @ $100)
(Commonwealth GTD) 07/01/28 5.000# 3,152,610
2,800 Puerto Rico Public Finance Corp. Commonwealth Appropriations Series
E (Pre-refunded with U.S. Government Securities to 02/01/12 @ $100) 08/01/29 5.500 3,078,460
4,250 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# 4,622,725
- ----------------------------------------------------------------------------------------------------------------------
15,026,825
- ----------------------------------------------------------------------------------------------------------------------
</Table>
100
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - (CONCLUDED)
SOUTH CAROLINA - 3.01%
$ 2,000 Richland County Environmental Improvement Revenue Refunding
International Paper Co. Projects Series A 10/01/07 4.250% $ 2,010,460
5,070 South Carolina Transportation Infrastructure Bank Revenue Series A
(MBIA Insured) 10/01/09 6.000 5,513,270
- ----------------------------------------------------------------------------------------------------------------------
7,523,730
- ----------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.32%
3,030 South Dakota Health & Educational Facilities Authority Revenue
Refunding Prairie Lakes Healthcare (ACA/CBI Insured) 04/01/13 5.450 3,155,139
140 South Dakota State Health & Educational Revenue St. Lukes Hospital
Project (Escrowed to Maturity) 10/01/07 6.800 144,550
- ----------------------------------------------------------------------------------------------------------------------
3,299,689
- ----------------------------------------------------------------------------------------------------------------------
TENNESSEE - 3.88%
8,300 Metropolitan Government Nashville & Davidson County Water Sewer Revenue
Cab Converter Refunding (Mandatory Put 01/01/09 @ $100) (FGIC/TCRs) 01/01/12 7.700 9,681,950
TEXAS - 7.54%
3,400 Austin Texas Utility Systems Revenue Refunding (AMBAC Insured) 11/15/09 6.750 3,782,942
1,000 Canutillo Independent School District Refunding (PSF-GTD) 08/15/10 5.000 1,061,700
1,000 Dallas Texas Refunding Series A 02/15/10 5.000 1,056,330
2,480 Fort Bend Independent School District (PSF-GTD) 08/15/07 7.000 2,613,845
5,000 Harris County Refunding Tax & Subordinated Lien Series B (Mandatory Put
08/15/12 @ $100) (FSA Insured) 08/15/32 5.000 5,311,100
1,500 Harris County Refunding Toll Road B-2 (Mandatory Put 08/15/09 @ $100)
(FGIC Insured) 08/15/21 5.000# 1,571,610
170 Houston Texas Airport Systems Revenue (Escrowed to Maturity) 07/01/10 7.600 188,068
2,000 Katy Independent School District School Building Series A (PSF-GTD) 02/15/14 5.000 2,138,700
1,020 Lamar Consolidated Independent School District Refunding Schoolhouse
(PSF-GTD) 02/15/11 5.000 1,085,260
25 Texas Municipal Power Agency Revenue (Escrowed to Maturity)
(MBIA Insured) 09/01/13 6.100^ 18,469
- ----------------------------------------------------------------------------------------------------------------------
18,828,024
- ----------------------------------------------------------------------------------------------------------------------
UTAH - 0.52%
1,255 Utah State Housing Finance Agency Single-Family Mortgage Series G-3,
Class III* 07/01/15 5.700 1,277,992
10 Utah State Housing Finance Agency Single-Family Mortgage Subseries
A-1 (AMBAC Insured) 07/01/08 5.900 10,212
- ----------------------------------------------------------------------------------------------------------------------
1,288,204
- ----------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.88%
2,000 Fairfax County Economic Development Authority Resource Recovery Revenue
Refunding Series A (AMBAC Insured)* 02/01/11 6.100 2,195,560
WASHINGTON - 2.35%
4,000 Washington State Public Power Supply Systems Nuclear Project Number 1
Revenue Refunding Series A (AMBAC Insured) 07/01/08 6.000 4,239,200
20 Washington State Series 93-A (Pre-refunded with U.S. Government
Securities to 10/01/08 @ $100) 10/01/12 5.750 21,924
1,480 Washington State Unrefunded Balance Series 93-A (FSA Insured) 10/01/12 5.750 1,612,283
- ----------------------------------------------------------------------------------------------------------------------
5,873,407
- ----------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.42%
2,150 Badger Tobacco Asset Securitization Corp. 06/01/10 5.500 2,254,339
1,200 Badger Tobacco Asset Securitization Corp. Asset-Backed Revenue Bonds 06/01/11 5.750 1,279,116
- ----------------------------------------------------------------------------------------------------------------------
3,533,455
- ----------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds and Notes (cost - $244,590,160) 245,943,053
- ----------------------------------------------------------------------------------------------------------------------
</Table>
101
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ----------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL NOTES~ - 0.36%
INDIANA - 0.32%
$ 800 Indiana Health Facility Financing Authority Hospital Revenue, Clarian
Health Obligation Series B (Chase Manhattan Bank Insured) 02/01/06 3.090% $ 800,000
KANSAS - 0.04%
100 Kansas Department of Transportation Highway Revenue Series B-1
(Pooled Money Investment Board Insured) 02/01/06 3.020 100,000
- ----------------------------------------------------------------------------------------------------------------------
Total Short-Term Municipal Notes (cost - $900,000) 900,000
- ----------------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- ----------------------------------------------------------------------------------------------------------------------
TAX-FREE MONEY MARKET FUND+ - 0.03%
82 State Street Global Advisors Tax Free Money Market Fund
(cost - $81,820) 2.470 81,820
- ----------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $245,571,980) - 98.91% 246,924,873
- ----------------------------------------------------------------------------------------------------------------------
Other assets in excess of liabilities - 1.09% 2,717,918
- ----------------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% $ 249,642,791
- ----------------------------------------------------------------------------------------------------------------------
</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, 2006.
* Security subject to Alternative Minimum Tax.
** Security exempt from registration under Rule 144A of the Securities Act
of 1933. This security, which represents 0.72% of net assets as of
January 31, 2006, 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, 2006.
++ Step-up bond that converts to the noted fixed rate at a designated future
date.
~ 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, 2006.
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 Administration.
See accompanying notes to financial statements
102
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE GLOBAL FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - 87.72%
AUSTRALIA - 5.99%
EUR 450 Australia & New Zealand Banking Group Ltd. 02/05/15 4.450% $ 566,509
19,290 Government of Australia 06/15/11 5.750 14,935,560
7,340 Government of Australia 04/15/15 6.250 5,922,687
7,760 New South Wales Treasury Corp. 08/01/14 5.500 5,860,367
- -------------------------------------------------------------------------------------------------------------------------------
27,285,123
- -------------------------------------------------------------------------------------------------------------------------------
AUSTRIA - 6.49%
9,910 Republic of Austria 07/15/09 4.000 12,378,492
13,770 Republic of Austria 10/20/13 3.800 17,208,367
- -------------------------------------------------------------------------------------------------------------------------------
29,586,859
- -------------------------------------------------------------------------------------------------------------------------------
BELGIUM - 1.38%
250 Kingdom of Belgium 03/28/15 8.000 411,025
3,830 Kingdom of Belgium 03/28/28 5.500 5,869,793
- -------------------------------------------------------------------------------------------------------------------------------
6,280,818
- -------------------------------------------------------------------------------------------------------------------------------
CANADA - 2.30%
9,640 Government of Canada 06/01/33 5.750 10,468,970
CAYMAN ISLANDS - 1.15%
EUR 1,450 Hutchison Whampoa Finance 07/08/13 5.875 1,961,069
EUR 590 Mizuho Finance 04/15/14 4.750+ 741,650
GBP 1,400 Pacific Life Funding LLC 01/20/15 5.125 2,548,340
- -------------------------------------------------------------------------------------------------------------------------------
5,251,059
- -------------------------------------------------------------------------------------------------------------------------------
CHANNEL ISLANDS - 0.17%
EUR 550 Credit Suisse Group Finance 06/07/13 6.375 783,065
DENMARK - 3.92%
EUR 920 Danske Bank A/S 11/12/12 5.125+ 1,182,001
EUR 1,400 Dong A/S 06/29/12 3.500 1,673,663
1 Kingdom of Denmark 11/15/07 7.000 87
1 Kingdom of Denmark 11/15/09 6.000 90
3,110 Kingdom of Denmark 11/15/11 6.000 578,270
51,620 Kingdom of Denmark 11/15/13 5.000 9,338,913
30,050 Kingdom of Denmark 11/15/15 4.000 5,107,866
- -------------------------------------------------------------------------------------------------------------------------------
17,880,890
- -------------------------------------------------------------------------------------------------------------------------------
FINLAND - 2.14%
3,000 Government of Finland 07/04/06 2.750 3,648,248
4,500 Government of Finland 02/23/11 5.750 6,100,529
- -------------------------------------------------------------------------------------------------------------------------------
9,748,777
- -------------------------------------------------------------------------------------------------------------------------------
FRANCE - 12.17%
1,500 BNP Paribas 01/23/14 5.250+ 1,919,562
1,950 ERAP 04/25/08 3.375 2,387,773
1,100 France Telecom 01/28/13 7.250 1,596,908
11,250 Republic of France 04/25/09 4.000 14,049,868
11,720 Republic of France 04/25/10 5.500 15,529,416
9,150 Republic of France 10/25/32 5.750 14,829,045
</Table>
103
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - (CONTINUED)
FRANCE - (CONCLUDED)
2,480 Republic of France 04/25/55 4.000% $ 3,200,412
1,600 Societe Generale 01/26/15++++ 4.196~~ 1,939,451
- -------------------------------------------------------------------------------------------------------------------------------
55,452,435
- -------------------------------------------------------------------------------------------------------------------------------
GERMANY - 7.14%
18,000 Federal Republic of Germany 09/22/06 2.500 21,845,525
4,580 Federal Republic of Germany 07/04/14 4.250 5,890,258
2,300 Kreditanstalt Fuer Wiederaufbau 08/18/06 4.750 2,824,601
1,610 Kreditanstalt Fuer Wiederaufbau 04/17/09 3.500 1,974,096
- -------------------------------------------------------------------------------------------------------------------------------
32,534,480
- -------------------------------------------------------------------------------------------------------------------------------
ICELAND - 0.80%
29,900 Housing Finance Fund Series 2 04/15/34 3.750 443,600
217,500 Housing Finance Fund Series 3 06/15/44 3.750 3,216,748
- -------------------------------------------------------------------------------------------------------------------------------
3,660,348
- -------------------------------------------------------------------------------------------------------------------------------
IRELAND - 0.72%
1,500 Bank of Ireland 02/27/19 4.625+ 1,928,633
1,100 Bank of Ireland Mortgage Bank 09/22/09 3.500 1,348,037
- -------------------------------------------------------------------------------------------------------------------------------
3,276,670
- -------------------------------------------------------------------------------------------------------------------------------
ITALY - 0.81%
1,200 Edison SpA 12/10/10 5.125 1,552,516
580 Sanpaolo IMI SpA 04/06/10 6.375 783,210
1,000 UniCredito Italiano SpA 02/28/12 6.100 1,363,505
- -------------------------------------------------------------------------------------------------------------------------------
3,699,231
- -------------------------------------------------------------------------------------------------------------------------------
JAPAN - 10.54%
EUR 1,000 Bank of Tokyo-Mitsubishi UFJ 12/16/15 3.500+ 1,200,858
977,600 Government of Japan 06/20/06 0.500 8,349,523
905,800 Government of Japan 09/20/06 0.500 7,744,206
363,000 Government of Japan 03/20/13 0.700 2,973,580
2,462,766 Government of Japan 09/10/15 0.800 21,135,218
647,000 Government of Japan 09/20/24 2.100 5,580,647
EUR 850 Sumitomo Mitsui Banking 10/15/49 4.375+ 1,039,084
- -------------------------------------------------------------------------------------------------------------------------------
48,023,116
- -------------------------------------------------------------------------------------------------------------------------------
LUXEMBOURG - 0.91%
3,200 Gaz Capital (Gazprom) 12/09/12 4.560 3,866,314
230 Sogerim SA 04/20/06 6.125 281,375
- -------------------------------------------------------------------------------------------------------------------------------
4,147,689
- -------------------------------------------------------------------------------------------------------------------------------
MALAYSIA - 0.06%
EUR 200 Petronas Capital Ltd. 05/22/09 6.375 265,270
MEXICO - 2.72%
EUR 800 United Mexican States 03/08/10 7.500 1,108,411
40,820 United Mexican States 12/22/11 9.000 4,099,791
12,700 United Mexican States 12/19/13 8.000 1,211,302
</Table>
104
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - (CONTINUED)
MEXICO - (CONCLUDED)
31,500 United Mexican States 12/18/14 9.500% $ 3,263,303
EUR 800 United Mexican States 02/17/20 5.500 1,047,653
15,150 United Mexican States 12/05/24 10.000 1,668,467
- -------------------------------------------------------------------------------------------------------------------------------
12,398,927
- -------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS - 4.83%
1,800 BHP Billiton Finance BV 10/10/07 4.375 2,231,397
1,200 BMW Finance NV 08/06/18 5.000 1,577,537
950 Deutsche Telekom International Finance 03/29/18 6.625 1,381,577
420 EADS Finance BV 03/03/10 4.625 531,813
1 Government of the Netherlands 07/15/08 5.250 1,855
7,040 Government of the Netherlands 01/15/10 3.000 8,499,389
2,020 Government of the Netherlands 01/15/23 7.500 3,629,532
1 Government of the Netherlands 01/15/28 5.500 767
700 ING Bank NV 09/16/20 3.500+ 823,722
1,000 Repsol International Finance BV 07/22/13 5.000 1,289,013
1,500 RWE Finance BV 07/23/18 5.125 2,023,466
- -------------------------------------------------------------------------------------------------------------------------------
21,990,068
- -------------------------------------------------------------------------------------------------------------------------------
NEW ZEALAND - 0.59%
2,910 Government of New Zealand 02/15/16 4.500 2,689,061
NORWAY - 2.66%
35,260 Government of Norway 05/15/13 6.500 6,239,180
35,800 Government of Norway 05/15/15 5.000 5,889,925
- -------------------------------------------------------------------------------------------------------------------------------
12,129,105
- -------------------------------------------------------------------------------------------------------------------------------
POLAND - 0.36%
5,000 Government of Poland 11/24/10 6.000 1,664,292
SOUTH KOREA - 0.63%
700,000 Republic of South Korea 04/10/07 7.170 746,072
2,000,000 Republic of South Korea 07/10/07 6.150 2,111,819
- -------------------------------------------------------------------------------------------------------------------------------
2,857,891
- -------------------------------------------------------------------------------------------------------------------------------
SWEDEN - 1.77%
18,830 Kingdom of Sweden 12/01/15 3.500 3,188,462
16,250 Kingdom of Sweden 12/01/28 3.500 3,140,612
EUR 1,400 Nordea Bank AB 09/30/16 4.000+ 1,730,613
- -------------------------------------------------------------------------------------------------------------------------------
8,059,687
- -------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM - 10.95%
1,400 Alliance & Leicester PLC 03/22/49 5.827+ 2,624,343
EUR 550 Barclays Bank PLC 03/08/11 5.750 736,714
EUR 2,200 Barclays Bank PLC 03/04/19 4.500+ 2,800,293
EUR 1,230 BAT International Finance PLC 02/25/09 4.875 1,548,937
EUR 1,900 HBOS PLC 10/30/19 4.375+ 2,393,105
EUR 1,800 HSBC Bank PLC 03/18/16 4.250 2,256,330
EUR 1,260 Imperial Tobacco Finance 06/06/07 6.250 1,592,254
</Table>
105
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
LONG-TERM GLOBAL DEBT SECURITIES - (CONCLUDED)
UNITED KINGDOM - (CONCLUDED)
370 Mitchells & Butlers Finance 09/15/30 6.469% $ 766,837
EUR 1,750 Nationwide Building Society 08/17/15 3.375+ 2,104,942
EUR 180 RBS Capital Trust I 06/30/12 6.467+ 250,311
EUR 1,800 Rio Tinto Finance PLC 05/10/07 5.125 2,242,520
EUR 1,100 Rolls-Royce Group PLC Euro MTN 03/16/11 4.500 1,388,860
EUR 1,400 Standard Chartered Bank 02/03/17 3.625+ 1,690,800
5 United Kingdom Treasury Bonds 12/07/09 5.750 9,349
10,460 United Kingdom Treasury Bonds 06/07/10 4.750 18,958,552
30 United Kingdom Treasury Bonds 12/07/15 8.000 70,066
1,450 United Kingdom Treasury Bonds 03/07/36 4.250 2,762,410
1,800 United Kingdom Treasury Bonds 12/07/55 4.250 3,603,433
EUR 1,750 United Utilities Water PLC 01/24/20 4.250 2,110,284
- -------------------------------------------------------------------------------------------------------------------------------
49,910,340
- -------------------------------------------------------------------------------------------------------------------------------
UNITED STATES - 6.52%
EUR 250 Bank of America Corp. 05/06/19 4.750+ 323,371
GBP 1,600 Bear Stearns Co., Inc. 01/20/10 5.125 2,871,770
EUR 1,150 BMW U.S. Capital LLC 09/23/10 2.750 1,352,302
GBP 550 Capital One Multi-Asset 06/17/14 6.625 1,067,141
EUR 1,150 Citigroup, Inc. 11/14/07 4.625 1,433,385
JPY 74,000 Citigroup, Inc. 10/31/25 2.400 633,344
EUR 740 Goldman Sachs Group, Inc. 02/04/13 3.750 895,164
1,218 INTERSTAR Millennium Trust, Series 2005-1G,
Class A 12/08/36 4.577+ 1,218,445
655 INTERSTAR Millennium Trust, Series 2005-2L,
Class A1 (1) 07/27/38 4.790+ 654,721
479 Long Beach Mortgage Loan Trust Series 2004-1,
Class A3 02/25/34 4.830+ 479,547
GBP 230 MBNA Credit Card, Series 03C4 05/17/13 6.100 430,545
171 Novastar Home Equity Loan Series 2003-1,
Class A1 05/25/33 4.910+ 171,394
463 Option One Trust 02/25/32 4.820+ 463,329
319 Residential Asset Securities Corp. Series
2003-KS6, Class A2 08/25/33 4.830+ 319,523
234 Residential Asset Securities Corp. Series
2003-KS7, Class AIIB 09/25/33 4.850+ 234,693
878 Residential Asset Securities Corp. Series
2003-RS4, Class AIIB 05/25/33 4.860+ 884,473
1,034 Residential Asset Securities Corp. Series
2004-RS4, Class A2B1 04/25/34 4.790+ 1,035,752
774 SMHL Global Fund, Series 6, Class A 11/09/35 4.464+ 775,539
4,365 U.S. Treasury Bonds (2) 05/15/30 6.250 5,323,082
4,313 U.S. Treasury Inflation Index Bonds (3) 01/15/25 2.375 4,558,225
4,521 U.S. Treasury Inflation Index Bonds (3) 01/15/26 2.000 4,512,953
180 U.S. Treasury Stripped Principal Payment
Bonds # 02/15/19 8.875^^ 97,597
- -------------------------------------------------------------------------------------------------------------------------------
29,736,295
- -------------------------------------------------------------------------------------------------------------------------------
Total Long-Term Global Debt Securities (cost - $400,497,087) 399,780,466
- -------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - 2.30%
SWEDEN - 1.20%
BANKING - 1.20%
USD 5,500 Svenska Handelsbanken 03/01/06 4.490 5,480,793
</Table>
106
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000)* DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@ - (CONCLUDED)
UNITED STATES - 1.10%
BANKING - 1.10%
5,000 Societe Generale N.A., Inc. 02/17/06 3.105% $ 4,990,067
- -------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper (cost - $10,470,860) 10,470,860
- -------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT AND AGENCY OBLIGATIONS@ - 1.47%
5,000 Federal Home Loan Bank 02/17/06 4.310 4,990,422
1,730 U.S. Treasury Bills~ 05/18/06 to 06/22/06 4.195 to 4.220 1,704,478
- -------------------------------------------------------------------------------------------------------------------------------
Total Short-Term U.S. Government and Agency Obligations
(cost - $6,694,900) 6,694,900
- -------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 4.55%
USD 20,731 Repurchase Agreement dated 01/31/06 with State
Street Bank & Trust Co., collateralized by
$16,801,752 U.S. Treasury Bills, zero coupon
due 04/13/06 to 05/25/06 and $4,516,478 U.S.
Treasury Notes, 2.500% due 05/31/06; (value -
$21,146,101); proceeds: $20,733,303 (cost -
$20,731,000) 02/01/06 4.000 20,731,000
<Caption>
NUMBER OF
SHARES
(000)
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 0.59%
MONEY MARKET FUNDS++ - 0.15%
7 AIM Liquid Assets Portfolio 4.350 6,736
+++ 0 Barclays Prime Money Market Fund 4.303 21
+++ 0 Deutsche Cash Reserve Institutional Fund 4.191 55
+++ 0 Scudder Money Market Series 4.247 72
671 UBS Private Money Market Fund LLC** 4.347 670,729
- -------------------------------------------------------------------------------------------------------------------------------
Total Money Market Funds (cost-$677,613) 677,613
- -------------------------------------------------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT
(000)*
- -------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.44%
USD 2,002 Repurchase Agreement dated 01/31/06 with Merrill
Lynch & Co., collateralized by $2,055,000
Federal Farm Credit Bank obligations, 5.625%
due 10/19/20; (value - $2,043,125); proceeds:
$2,002,178 (cost - $2,001,932) 02/01/06 4.430 2,001,932
- -------------------------------------------------------------------------------------------------------------------------------
Total Investments of Cash Collateral from Securities Loaned
(cost - $2,679,545) 2,679,545
- -------------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $441,073,392) - 96.63% 440,356,771
Other assets in excess of liabilities - 3.37% 15,349,623
- -------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% $ 455,706,394
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
Note: The Portfolio of Investments is listed by the issuer's country of origin.
* In local currency unless otherwise indicated.
+ Floating rate securities. The interest rates shown are the current rates
as of January 31, 2006.
++ Interest rates shown reflect yield at January 31, 2006.
+++ Amount represents less than 500 shares.
++++ Perpetual bond security. The maturity date reflects the next call date.
~~ Variable rate security - The interest rate shown is the current rate as
of January 31, 2006, and resets at the next call date.
~ Partial amount pledged as collateral for futures transactions.
^^ 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.
@ Interest rates shown are the discount rates at date of purchase.
(1) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities, which represent 0.14% of net assets as of
January 31, 2006, are considered liquid and may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
107
<Page>
(2) Security, or portion thereof, was on loan at January 31, 2006.
(3) Principal amount for accrual purposes is adjusted based on changes in the
Consumer Price Index.
EUR Euro Dollars
GBP Great Britain Pounds
JPY Japanese Yen
MTN Medium Term Note
USD U.S. Dollars
** The table below details the Portfolio's transaction activity in an
affiliated issuer for the six months ended January 31, 2006.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
VALUE AT ENDED ENDED VALUE AT ENDED
SECURITY DESCRIPTION 07/31/05 01/31/06 01/31/06 01/31/06 01/31/06
- ---------------------------------------------------------------------------------------------------------------------------
UBS Private Money Market Fund LLC $ 2,554,483 $ 65,022,158 $ 66,905,912 $ 670,729 $ 4,760
</Table>
FUTURES CONTRACTS
<Table>
<Caption>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION
CONTRACTS CURRENCY CONTRACTS TO RECEIVE EXCHANGE FOR DATES (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
36 EUR Euro Bond 10 Year Futures $ 5,265,212 March 2006 $ (640)
6 JPY Japan Bond 10 Year Futures 7,014,698 March 2006 (3,690)
151 USD U.S. Treasury Note 10 Year Futures 16,403,086 March 2006 (29,024)
183 GBP United Kingdom Long Gilt 10 Year Futures 36,994,823 March 2006 110,299
- -----------------------------------------------------------------------------------------------------------------
76,945
- -----------------------------------------------------------------------------------------------------------------
CONTRACTS TO DELIVER
300 EUR Euro Bond 2 Year Futures 38,411,605 March 2006 102,882
308 EUR Euro Bond 5 Year Futures 42,105,946 March 2006 135,187
24 USD U.S. Treasury Bond 20 YearFutures 2,678,853 March 2006 (29,397)
139 USD U.S. Treasury Note 2 YearFutures 28,561,307 March 2006 88,026
94 USD U.S. Treasury Note 5 YearFutures 9,977,685 March 2006 38,653
- -----------------------------------------------------------------------------------------------------------------
335,351
- -----------------------------------------------------------------------------------------------------------------
$ 412,296
- -----------------------------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
EUR Euro Dollars
GBP Great Britain Pounds
JPY Japanese Yen
USD U.S. Dollars
108
<Page>
UBS PACE GLOBAL FIXED INCOME INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
FORWARD FOREIGN CURRENCY CONTRACTS
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN APPRECIATION
DELIVER EXCHANGE FOR MATURITY DATES (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------
Australian Dollar 48,025,135 EUR 29,432,577 04/12/06 $ (217,578)
Australian Dollar 860,000 JPY 73,551,500 02/22/06 (11,487)
Australian Dollar 2,660,000 JPY 227,430,000 02/22/06 (35,814)
Australian Dollar 120,000 USD 89,504 02/22/06 (1,433)
Australian Dollar 17,114,265 USD 12,613,213 04/12/06 (340,404)
Australian Dollar 70,000 USD 52,402 05/23/06 (537)
Australian Dollar 140,000 USD 104,846 05/23/06 (1,031)
Australian Dollar 320,000 USD 239,619 05/23/06 (2,386)
Canadian Dollar 16,584,114 EUR 12,020,000 02/22/06 28,249
Canadian Dollar 536,788 USD 460,000 02/22/06 (11,565)
Canadian Dollar 1,132,873 USD 970,000 02/22/06 (25,222)
Canadian Dollar 1,481,988 USD 1,270,000 02/22/06 (31,918)
Canadian Dollar 2,268,090 USD 1,977,411 04/12/06 (17,763)
Canadian Dollar 5,749,684 USD 4,924,762 04/12/06 (133,071)
Danish Krone 78,298,613 USD 12,542,227 04/12/06 (258,692)
Euro Dollar 680,000 CAD 932,443 02/22/06 (4,128)
Euro Dollar 1,280,000 CAD 1,754,675 02/22/06 (7,995)
Euro Dollar 4,920,000 CAD 6,749,896 02/22/06 (28,376)
Euro Dollar 19,036,193 CAD 26,653,430 04/12/06 108,839
Euro Dollar 18,537,120 DKK 138,240,574 04/12/06 (9,431)
Euro Dollar 206,978 GBP 140,000 02/22/06 (1,388)
Euro Dollar 440,000 GBP 299,977 02/22/06 (850)
Euro Dollar 560,000 GBP 381,696 02/22/06 (1,165)
Euro Dollar 1,860,000 GBP 1,267,404 02/22/06 (4,199)
Euro Dollar 2,160,000 GBP 1,471,878 02/22/06 (4,828)
Euro Dollar 4,760,000 GBP 3,247,790 02/22/06 (6,898)
Euro Dollar 30,982,694 GBP 21,061,726 04/12/06 (163,730)
Euro Dollar 1,000,000 GBP 690,341 05/23/06 2,930
Euro Dollar 1,405,427 HUF 360,000,000 06/22/06 2,976
Euro Dollar 1,900,000 ISK 141,731,440 02/22/06 (24,082)
Euro Dollar 1,060,000 ISK 81,207,978 05/23/06 (7,773)
Euro Dollar 460,000 JPY 64,411,500 02/22/06 (4,551)
Euro Dollar 4,000,000 JPY 560,360,000 02/22/06 (38,464)
Euro Dollar 5,078,075 PLN 20,000,000 06/22/06 74,006
Euro Dollar 7,651,709 PLN 30,000,000 06/22/06 89,817
Euro Dollar 3,217,280 SEK 30,309,995 04/12/06 43,115
Euro Dollar 40,000 SEK 369,360 05/23/06 55
Euro Dollar 160,000 SEK 1,477,600 05/23/06 231
Euro Dollar 1,920,000 SEK 17,731,584 05/23/06 2,802
Euro Dollar 2,114,098 SKK 80,000,000 06/22/06 16,249
Euro Dollar 2,720,000 USD 3,240,357 02/22/06 (69,251)
Euro Dollar 2,809,692 USD 3,343,209 02/22/06 (75,533)
Euro Dollar 5,580,000 USD 6,655,044 02/22/06 (134,519)
Euro Dollar 5,653,079 USD 6,768,208 02/22/06 (110,275)
Euro Dollar 18,092,663 USD 21,361,645 02/22/06 (652,919)
</Table>
109
<Page>
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN APPRECIATION
DELIVER EXCHANGE FOR MATURITY DATES (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------
Euro Dollar 28,530,511 USD 34,259,120 02/22/06 $ (455,879)
Euro Dollar 868,624 USD 1,055,361 04/12/06 (4,563)
Great Britain Pounds 6,906,971 AUD 16,520,265 04/12/06 106,651
Great Britain Pounds 41,492 EUR 60,000 02/22/06 (406)
Great Britain Pounds 1,574,508 EUR 2,280,000 02/22/06 (13,458)
Great Britain Pounds 9,731,171 JPY 1,977,276,576 04/12/06 (153,197)
Great Britain Pounds 20,000 USD 34,398 02/22/06 (1,183)
Great Britain Pounds 50,000 USD 85,978 02/22/06 (2,975)
Great Britain Pounds 1,113,177 USD 1,974,220 02/22/06 (6,191)
Great Britain Pounds 1,620,000 USD 2,785,396 02/22/06 (96,684)
Great Britain Pounds 1,880,251 USD 3,336,693 02/22/06 (8,389)
Great Britain Pounds 10,551,611 USD 18,776,126 02/22/06 4,162
Iceland Krona 56,817,200 EUR 740,000 02/22/06 (3,530)
Iceland Krona 129,051,900 EUR 1,740,000 02/22/06 27,998
Iceland Krona 223,318,601 USD 3,658,741 02/22/06 91,960
Japanese Yen 898,747,414 AUD 10,610,949 04/12/06 149,838
Japanese Yen 2,829,426 EUR 20,000 02/22/06 74
Japanese Yen 220,656,540 EUR 1,560,000 02/22/06 5,956
Japanese Yen 422,643,680 EUR 3,026,255 04/12/06 28,431
Japanese Yen 917,933,358 EUR 6,666,183 04/12/06 118,799
Japanese Yen 147,573,040 USD 1,290,000 02/22/06 28,497
Japanese Yen 191,672,100 USD 1,650,000 02/22/06 11,524
Japanese Yen 252,015,660 USD 2,140,000 02/22/06 (14,313)
Japanese Yen 409,222,270 USD 3,550,000 02/22/06 51,833
Japanese Yen 536,899,720 USD 4,610,000 02/22/06 20,404
Japanese Yen 860,485,940 USD 7,306,050 02/22/06 (49,667)
Japanese Yen 907,000,647 USD 7,844,293 02/22/06 90,952
Japanese Yen 3,437,520 USD 30,000 05/23/06 270
Japanese Yen 18,333,280 USD 160,000 05/23/06 1,443
Japanese Yen 183,301,600 USD 1,600,000 05/23/06 14,702
Mexican Peso 1,802,272 USD 170,000 02/22/06 (2,297)
Mexican Peso 8,584,400 USD 800,000 02/22/06 (20,669)
Mexican Peso 74,368,726 USD 6,772,800 02/22/06 (336,856)
New Zealand Dollar 3,705,072 USD 2,569,560 02/22/06 30,503
Norwegian Krone 34,086,892 EUR 4,231,768 04/12/06 8,595
Norwegian Krone 12,933,917 GBP 1,097,304 04/12/06 (95)
Norwegian Krone 13,648,736 USD 2,040,170 04/12/06 (20,561)
Polish Zloty 6,000,000 EUR 1,583,740 06/22/06 14,747
South Korean Won 4,038,503,645 USD 4,163,406 02/22/06 (24,967)
South Korean Won 1,500,000,000 USD 1,536,885 06/08/06 (21,258)
Swedish Krona 2,094,000 EUR 220,000 02/22/06 (4,255)
Swedish Krona 41,900,559 EUR 4,400,000 02/22/06 (86,458)
Swedish Krona 2,651,746 USD 336,000 04/12/06 (15,005)
Swedish Krona 65,385,783 USD 8,329,399 04/12/06 (325,559)
United States Dollar 657,888 AUD 890,000 02/22/06 16,563
</Table>
110
<Page>
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN APPRECIATION
DELIVER EXCHANGE FOR MATURITY DATES (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------
United States Dollar 1,138,564 AUD 1,531,563 02/22/06 $ 22,070
United States Dollar 1,579,213 AUD 2,109,837 04/12/06 17,702
United States Dollar 130,000 CAD 151,577 02/22/06 3,160
United States Dollar 220,000 CAD 256,004 02/22/06 4,898
United States Dollar 300,000 CAD 348,333 02/22/06 6,009
United States Dollar 550,000 CAD 638,484 02/22/06 10,905
United States Dollar 2,110,000 CAD 2,463,552 02/22/06 54,216
United States Dollar 10,108,985 CAD 11,986,223 02/22/06 420,843
United States Dollar 1,310,000 DKK 8,299,898 02/22/06 43,040
United States Dollar 806,051 EUR 680,000 02/22/06 21,351
United States Dollar 959,227 EUR 809,000 02/22/06 25,138
United States Dollar 2,266,862 EUR 1,920,000 02/22/06 69,332
United States Dollar 3,896,396 EUR 3,240,000 02/22/06 45,930
United States Dollar 4,202,554 EUR 3,552,500 02/22/06 120,012
United States Dollar 6,410,412 EUR 5,371,202 02/22/06 125,092
United States Dollar 7,497,137 EUR 6,280,000 02/22/06 144,163
United States Dollar 48,608,631 EUR 41,266,517 02/22/06 1,603,125
United States Dollar 389,599 EUR 326,647 04/12/06 8,987
United States Dollar 241,184 GBP 140,000 02/22/06 7,885
United States Dollar 864,877 GBP 500,507 02/22/06 25,557
United States Dollar 911,491 GBP 530,000 02/22/06 31,411
United States Dollar 1,310,556 GBP 760,000 02/22/06 41,531
United States Dollar 1,499,556 GBP 860,000 02/22/06 30,437
United States Dollar 9,051,441 GBP 5,230,331 02/22/06 253,638
United States Dollar 413,020 GBP 234,364 04/12/06 4,023
United States Dollar 262,344 HUF 54,951,550 02/22/06 2,514
United States Dollar 1,019,701 ISK 65,021,057 02/22/06 18,796
United States Dollar 1,919,352 ISK 118,274,057 02/22/06 (30,312)
United States Dollar 920,000 JPY 108,986,880 02/22/06 11,656
United States Dollar 3,467,514 JPY 407,059,320 02/22/06 12,163
United States Dollar 3,650,000 JPY 425,126,360 02/22/06 (15,880)
United States Dollar 5,240,000 JPY 603,554,590 02/22/06 (80,616)
United States Dollar 5,740,000 JPY 661,154,690 02/22/06 (88,232)
United States Dollar 28,109,178 JPY 3,264,051,799 02/22/06 (206,986)
United States Dollar 28,510,000 JPY 3,389,176,206 02/22/06 461,796
United States Dollar 35,814,882 JPY 4,142,170,128 04/12/06 (181,073)
United States Dollar 3,863,967 KRW 4,038,503,645 02/22/06 324,406
United States Dollar 4,170,500 KRW 4,038,503,645 05/23/06 23,578
United States Dollar 1,505,268 KRW 1,500,000,000 06/08/06 52,874
United States Dollar 4,360,465 KRW 4,500,000,000 06/22/06 314,906
United States Dollar 443,299 MXN 4,751,938 02/22/06 10,987
United States Dollar 267,440 NOK 1,738,737 02/22/06 (5,717)
United States Dollar 531,180 PLN 1,761,922 02/22/06 28,863
United States Dollar 560,000 PLN 1,868,048 02/22/06 33,775
United States Dollar 501,424 SEK 3,949,900 02/22/06 19,568
</Table>
111
<Page>
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN APPRECIATION
DELIVER EXCHANGE FOR MATURITY DATES (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------
United States Dollar 680,000 SEK 5,478,964 02/22/06 $ 42,676
United States Dollar 3,462,610 SEK 27,421,099 02/22/06 154,239
United States Dollar 680,000 SEK 5,369,076 04/12/06 30,692
United States Dollar 140,000 SGD 228,662 02/22/06 1,066
United States Dollar 309,808 SGD 521,760 02/22/06 12,075
United States Dollar 1,237,512 ZAR 8,211,220 02/22/06 115,569
- -----------------------------------------------------------------------------------------------------------
$ 1,289,338
- -----------------------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
AUD Australian Dollars
CAD Canadian Dollars
DKK Danish Krone
EUR Euro Dollars
GBP Great Britain Pounds
HUF Hungarian Forints
ISK Iceland Krona
JPY Japanese Yen
KRW South Korean Won
MXN Mexican Peso
NOK Norwegian Krone
PLN Polish Zloties
SEK Swedish Krona
SGD Singapore Dollar
SKK Slovakian Koruna
USD U.S. Dollars
ZAR South African Rand
INVESTMENTS BY TYPE OF ISSUER
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
-------------------------------
LONG-TERM SHORT-TERM
- -----------------------------------------------------------------------------------------------------
Government and other public issuers 70.62% 1.52%
Repurchase agreements -- 5.16
Bank and other financial institutions 15.97 2.38
Industrial 4.20 --
Money market funds -- 0.15
- -----------------------------------------------------------------------------------------------------
90.79% 9.21%
- -----------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
112
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE LARGE CO VALUE EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
COMMON STOCKS - 97.28%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE - 1.77%
Boeing Co. 63,500 $ 4,337,685
Lockheed Martin Corp. 227,700 15,403,905
United Technologies Corp. 77,498 4,523,558
- --------------------------------------------------------------------------------------------------------------------
24,265,148
- --------------------------------------------------------------------------------------------------------------------
AIR FREIGHT & COURIERS - 0.83%
CNF, Inc. 140,700 7,210,875
FedEx Corp. 42,100 4,258,415
- --------------------------------------------------------------------------------------------------------------------
11,469,290
- --------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.18%
Lear Corp. 95,700 2,425,995
AUTOMOBILES - 0.68%
Ford Motor Co. (1) 1,087,000 9,326,460
BANKS - 9.82%
Bank of America Corp. 1,063,400 47,034,182
Bank of New York Co., Inc. 204,400 6,501,964
Downey Financial Corp. 151,100 9,894,028
Golden West Financial Corp. (1) 119,600 8,446,152
KeyCorp 203,000 7,184,170
PNC Financial Services Group, Inc. 10,300 668,058
SunTrust Banks, Inc. 108,400 7,745,180
U.S. Bancorp 327,100 9,783,561
Wachovia Corp. (1) 164,500 9,019,535
Washington Mutual, Inc. 317,336 13,429,660
Wells Fargo & Co. 245,450 15,306,262
- --------------------------------------------------------------------------------------------------------------------
135,012,752
- --------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.65%
Pepsi Bottling Group, Inc. 145,600 4,222,400
PepsiCo, Inc. 83,600 4,780,248
- --------------------------------------------------------------------------------------------------------------------
9,002,648
- --------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 0.18%
Invitrogen Corp.* 36,800 2,534,784
BUILDING PRODUCTS - 0.03%
USG Corp. (1)* 3,800 361,760
CHEMICALS - 1.79%
BASF AG, ADR 66,150 5,210,635
E.I. du Pont de Nemours and Co. (1) 107,550 4,210,583
Eastman Chemical Co. 60,000 2,892,600
FMC Corp.* 47,500 2,679,950
PPG Industries, Inc. 72,500 4,313,750
Scotts Co., Class A 107,600 5,326,200
- --------------------------------------------------------------------------------------------------------------------
24,633,718
- --------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.33%
Donnelley, R.R. & Sons Co. 8,729 $ 284,565
YRC Worldwide, Inc.* 86,000 4,286,240
- --------------------------------------------------------------------------------------------------------------------
4,570,805
- --------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.96%
Harris Corp. 99,400 4,615,142
Motorola, Inc. 375,100 8,518,521
- --------------------------------------------------------------------------------------------------------------------
13,133,663
- --------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 4.04%
Apple Computer, Inc.* 131,600 9,937,116
Hewlett-Packard Co. 596,050 18,584,839
International Business Machines Corp. 332,050 26,995,665
- --------------------------------------------------------------------------------------------------------------------
55,517,620
- --------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.18%
Temple-Inland Inc. 54,350 2,549,015
DIVERSIFIED FINANCIALS - 13.74%
American Express Co. 162,881 8,543,108
Bear Stearns Cos., Inc. 166,600 21,068,236
Capital One Financial Corp. 141,100 11,753,630
CIT Group, Inc. 296,700 15,825,978
Citigroup, Inc. 855,412 39,845,091
Franklin Resources, Inc. 42,600 4,196,100
Goldman Sachs Group, Inc. 101,750 14,372,188
J.P. Morgan Chase & Co. 647,270 25,728,982
Legg Mason, Inc. 64,200 8,326,740
Lehman Brothers Holdings, Inc. (1) 165,200 23,202,340
Merrill Lynch & Co., Inc. 46,100 3,460,727
Morgan Stanley & Co. 72,700 4,467,415
Principal Financial Group, Inc. 169,300 7,984,188
- --------------------------------------------------------------------------------------------------------------------
188,774,723
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 5.34%
ALLTEL Corp. 142,400 8,548,272
AT&T, Inc. 437,759 11,359,846
BellSouth Corp. 368,650 10,606,060
Sprint Corp. (1) 802,000 18,357,780
Verizon Communications, Inc. 774,601 24,523,868
- --------------------------------------------------------------------------------------------------------------------
73,395,826
- --------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 3.28%
Constellation Energy Group, Inc. 71,000 4,137,170
Dominion Resources, Inc. (1) 116,900 8,829,457
DTE Energy Co. (1) 150,400 6,346,880
Entergy Corp. (1) 113,600 7,896,336
Exelon Corp. 153,000 8,785,260
</Table>
113
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES (CONCLUDED)
PPL Corp. 92,900 $ 2,799,077
TXU Corp. 123,700 6,264,168
- --------------------------------------------------------------------------------------------------------------------
45,058,348
- --------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.39%
Cooper Industries Ltd., Class A 66,050 5,392,983
ENERGY EQUIPMENT & SERVICES - 1.75%
Baker Hughes, Inc. 117,000 9,060,480
Halliburton Co. 116,550 9,271,553
Weatherford International Ltd.* 127,450 5,707,211
- --------------------------------------------------------------------------------------------------------------------
24,039,244
- --------------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.31%
SUPERVALU, INC. (1) 134,500 4,294,585
FOOD PRODUCTS - 1.60%
Bunge Ltd. (1) 141,250 8,328,100
Cadbury Schweppes PLC, ADR 129,400 5,154,002
General Mills, Inc. 174,100 8,463,001
- --------------------------------------------------------------------------------------------------------------------
21,945,103
- --------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.84%
Sempra Energy 239,200 11,493,560
HEALTH CARE EQUIPMENT & SUPPLIES - 0.34%
Kinetic Concepts, Inc.* 130,400 4,719,176
HEALTH CARE PROVIDERS & SERVICES - 2.02%
AmerisourceBergen Corp. 263,800 11,512,232
CIGNA Corp. 104,600 12,719,360
McKesson Corp. 66,400 3,519,200
- --------------------------------------------------------------------------------------------------------------------
27,750,792
- --------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 2.64%
Carnival Corp. 124,700 6,454,472
Darden Restaurants, Inc. 287,900 11,706,014
McDonald's Corp. 281,100 9,841,311
Starwood Hotels & Resorts Worldwide, Inc. 137,000 8,330,970
- --------------------------------------------------------------------------------------------------------------------
36,332,767
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.68%
Colgate-Palmolive Co. 157,800 8,661,642
Kimberly-Clark Corp. 11,100 634,032
- --------------------------------------------------------------------------------------------------------------------
9,295,674
- --------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 2.90%
3M Co. 112,400 8,177,100
General Electric Co. 257,000 8,416,750
Honeywell International, Inc. 217,900 8,371,718
Textron, Inc. 176,250 14,886,075
- --------------------------------------------------------------------------------------------------------------------
39,851,643
- --------------------------------------------------------------------------------------------------------------------
INSURANCE - 5.28%
Allstate Corp. 169,700 $ 8,832,885
American International Group, Inc. 43,500 2,847,510
Aon Corp. (1) 147,946 5,062,712
Assurant, Inc. 84,300 3,871,056
Chubb Corp. 116,700 11,010,645
Fidelity National Financial, Inc. 36,150 1,426,841
First American Corp. (1) 136,400 6,386,248
MetLife, Inc. 209,300 10,498,488
Prudential Financial, Inc. 57,000 4,294,380
St. Paul Cos., Inc. 243,372 11,044,221
W.R. Berkley Corp. 146,550 7,239,570
- --------------------------------------------------------------------------------------------------------------------
72,514,556
- --------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.42%
McAfee, Inc.* 246,400 5,714,016
IT CONSULTING & SERVICES - 0.31%
Computer Sciences Corp.* 83,900 4,253,730
MACHINERY - 1.63%
Caterpillar, Inc. 83,050 5,639,095
Cummins, Inc. (1) 44,800 4,359,040
Eaton Corp. 63,300 4,190,460
ITT Industries, Inc. 80,500 8,251,250
- --------------------------------------------------------------------------------------------------------------------
22,439,845
- --------------------------------------------------------------------------------------------------------------------
MARINE - 0.31%
Overseas Shipholding Group, Inc. 82,300 4,245,034
MEDIA - 1.58%
CBS Corp., Class B 155,650 4,067,135
Comcast Corp., Class A-Special* 161,400 4,474,008
Time Warner, Inc. (1) 382,500 6,705,225
Viacom Inc., Class B* 155,650 6,456,362
- --------------------------------------------------------------------------------------------------------------------
21,702,730
- --------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.68%
Phelps Dodge Corp. (1) 29,600 4,750,800
U.S. Steel Corp. 77,950 4,657,513
- --------------------------------------------------------------------------------------------------------------------
9,408,313
- --------------------------------------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 1.83%
Federated Department Stores, Inc. 128,500 8,561,955
Sears Holdings Corp.* 64,413 7,822,315
Wal-Mart Stores, Inc. 188,850 8,707,873
- --------------------------------------------------------------------------------------------------------------------
25,092,143
- --------------------------------------------------------------------------------------------------------------------
OIL & GAS - 13.94%
Amerada Hess Corp. 26,100 4,040,280
Apache Corp. 124,302 9,388,530
</Table>
114
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
OIL & GAS (CONCLUDED)
ChevronTexaco Corp. 231,800 $ 13,764,284
ConocoPhillips (1) 132,500 8,572,750
Exxon Mobil Corp. 1,204,762 75,598,815
Kerr-McGee Corp. 123,800 13,666,282
Marathon Oil Corp. 207,300 15,935,151
Murphy Oil Corp. 77,606 4,423,542
Occidental Petroleum Corp. 230,050 22,478,186
Sunoco, Inc. 102,000 9,710,400
Valero Energy Corp. 224,200 13,996,806
- --------------------------------------------------------------------------------------------------------------------
191,575,026
- --------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.64%
Louisiana-Pacific Corp. 139,700 4,114,165
Rayonier, Inc. (1) 109,227 4,669,454
- --------------------------------------------------------------------------------------------------------------------
8,783,619
- --------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 4.30%
Abbott Laboratories 216,650 9,348,447
Eli Lilly & Co. 86,500 4,897,630
Merck & Co., Inc. 518,000 17,871,000
Novartis AG, ADR 150,750 8,315,370
Pfizer, Inc. 430,600 11,057,808
Sanofi-Aventis, ADR (1) 165,913 7,631,998
- --------------------------------------------------------------------------------------------------------------------
59,122,253
- --------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.62%
General Growth Properties, Inc. 42,000 2,167,200
Highwoods Properties, Inc. 56,200 1,772,548
Host Marriott Corp. (1) 123,700 2,467,815
Thornburg Mortgage, Inc. (1) 81,200 2,081,156
- --------------------------------------------------------------------------------------------------------------------
8,488,719
- --------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 2.52%
Burlington Northern Santa Fe Corp. 259,600 $ 20,799,152
CSX Corp. 89,600 4,796,288
Norfolk Southern Corp. 181,550 9,048,452
- --------------------------------------------------------------------------------------------------------------------
34,643,892
- --------------------------------------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.49%
National Semiconductor Corp. 240,600 6,787,326
SOFTWARE - 1.74%
Microsoft Corp. 693,500 19,522,025
Oracle Corp.* 344,800 4,334,136
- --------------------------------------------------------------------------------------------------------------------
23,856,161
- --------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 1.90%
AnnTaylor Stores Corp.* 253,100 8,433,292
Barnes & Noble, Inc. 235,400 9,985,668
Payless ShoeSource, Inc.* 284,600 6,932,856
Sherwin-Williams Co. 14,900 788,210
- --------------------------------------------------------------------------------------------------------------------
26,140,026
- --------------------------------------------------------------------------------------------------------------------
TOBACCO - 1.82%
Altria Group, Inc. 248,100 17,947,554
Loews Corp. - Carolina Group 152,700 7,042,524
- --------------------------------------------------------------------------------------------------------------------
24,990,078
- --------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost - $1,111,386,981) 1,336,905,549
- --------------------------------------------------------------------------------------------------------------------
</Table>
115
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.37%
$ 32,575 Repurchase Agreement dated 01/31/06 with State Street Bank &
Trust Co., collateralized by $13,675,000 Federal National
Mortgage Association obligations, 5.050% due 01/12/09,
$15,549,583 U.S. Treasury Bills, zero coupon due 04/13/06
to 05/25/06 and $4,179,883 U.S. Treasury Note, 2.500% due
05/31/06; (value - $33,228,071); proceeds: $32,578,619
(cost - $32,575,000) 02/01/06 4.000% $ 32,575,000
- ------------------------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF
SHARES
(000)
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 6.39%
MONEY MARKET FUNDS+ - 0.87%
210 AIM Liquid Assets Portfolio 4.350 209,663
30 AIM Prime Portfolio 4.346 30,052
3 Barclays Prime Money Market Fund 4.303 3,085
6 BlackRock Provident Institutional TempFund 4.318 6,125
~ 0 Scudder Money Market Series 4.247 158
11,653 UBS Private Money Market Fund LLC** 4.347 11,653,495
- ------------------------------------------------------------------------------------------------------------------------
Total Money Market Funds (cost - $11,902,578) 11,902,578
- ------------------------------------------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT
(000)
- ------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 5.52%
$ 34,748 Repurchase Agreement dated 01/31/06 with Deutsche Bank 02/01/06 4.440 34,748,354
Securities, Inc., collateralized by $35,873,000 Federal
Home Loan Mortgage Corp. obligations, 2.050% due 07/21/06;
(value - $35,443,939); proceeds: $34,752,640
41,090 Repurchase Agreement dated 01/31/06 with Merrill Lynch & 02/01/06 4.430 41,090,355
Co., collateralized by $42,152,000 Federal Farm Credit
Bank obligations, 4.125% to 5.625% due 04/15/09 to
10/19/20; (value - $41,915,809); proceeds: $41,095,411
- ------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost - $75,838,709) 75,838,709
- ------------------------------------------------------------------------------------------------------------------------
Total Investments of Cash Collateral from Securities Loaned
(cost - $87,741,287) 87,741,287
- ------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $1,231,703,268) - 106.04% 1,457,221,836
Liabilities in excess of other assets - (6.04)% (83,001,611)
Net Assets - 100.00% $ 1,374,220,225
- ------------------------------------------------------------------------------------------------------------------------
</Table>
* Non-income producing security.
(1) Security, or portion thereof, was on loan at January 31, 2006.
+ Interest rates shown reflect yield at January 31, 2006.
~ Amount represents less than 500 shares.
ADR American Depositary Receipt.
** The table below details the Portfolio's transaction activity in an
affiliated issuer for the six months ended January 31, 2006.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
VALUE AT ENDED ENDED VALUE AT ENDED
SECURITY DESCRIPTION 07/31/05 01/31/06 01/31/06 01/31/06 01/31/06
- ---------------------------------------------------------------------------------------------------------------------------
UBS Private Money Market Fund LLC $ 124,567,523 $ 519,365,867 $ 632,279,895 $ 11,653,495 $ 12,347
</Table>
116
<Page>
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- --------------------------------------------------------------------------------------------
United States 96.4%
Bermuda 1.3
Switzerland 0.6
France 0.5
Panama 0.4
Germany 0.4
United Kingdom 0.4
- --------------------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
117
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE LARGE CO GROWTH EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
COMMON STOCKS - 96.58%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE - 1.86%
General Dynamics Corp. 55,046 $ 6,405,153
Lockheed Martin Corp. 86,300 5,838,195
United Technologies Corp. 120,100 7,010,237
- --------------------------------------------------------------------------------------------------------------------
19,253,585
- --------------------------------------------------------------------------------------------------------------------
AIR FREIGHT & COURIERS - 1.94%
CNF, Inc. 27,600 1,414,500
FedEx Corp. 185,340 18,747,141
- --------------------------------------------------------------------------------------------------------------------
20,161,641
- --------------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 1.00%
Toyota Motor Corp., ADR (1) 99,657 10,335,427
BEVERAGES - 0.93%
Coca-Cola Co. (1) 178,400 3,521,616
Pepsi Bottling Group, Inc. 145,300 4,213,700
PepsiCo, Inc. 33,100 1,892,658
- --------------------------------------------------------------------------------------------------------------------
9,627,974
- --------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 4.52%
Amgen, Inc.* 213,137 15,535,556
Biogen Idec, Inc.* 59,500 2,662,625
Genentech, Inc.* 277,451 23,838,590
Gilead Sciences, Inc.* 38,800 2,361,756
Kos Pharmaceuticals, Inc.* 57,100 2,501,551
- --------------------------------------------------------------------------------------------------------------------
46,900,078
- --------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 1.17%
Lennar Corp., Class A (1) 142,314 8,903,164
Masco Corp. 110,100 3,264,465
- --------------------------------------------------------------------------------------------------------------------
12,167,629
- --------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.49%
Monsanto Co. 157,566 13,331,659
Rohm and Haas Co. 41,600 2,117,440
- --------------------------------------------------------------------------------------------------------------------
15,449,099
- --------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 3.23%
Alliance Data Systems Corp.* 55,500 2,344,875
Career Education Corp. (1)* 85,900 2,790,891
Cendant Corp. 270,300 4,524,822
First Data Corp. 344,675 15,544,843
Fiserv, Inc.* 99,900 4,393,602
Paychex, Inc. 108,326 3,937,650
- --------------------------------------------------------------------------------------------------------------------
33,536,683
- --------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 5.28%
Cisco Systems, Inc.* 952,669 17,691,063
Motorola, Inc. 812,102 18,442,836
QUALCOMM, Inc. 388,407 18,628,000
- --------------------------------------------------------------------------------------------------------------------
54,761,899
- --------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 4.68%
Apple Computer, Inc.* 324,724 $ 24,519,909
Dell, Inc.* 275,741 8,081,969
EMC Corp.* 126,200 1,691,080
International Business Machines Corp. 119,700 9,731,610
Network Appliance, Inc.* 71,400 2,227,680
Western Digital Corp.* 103,700 2,266,882
- --------------------------------------------------------------------------------------------------------------------
48,519,130
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 10.10%
American Express Co. 98,700 5,176,815
Ameriprise Financial, Inc. 99,900 4,064,931
Capital One Financial Corp. 55,700 4,639,810
Chicago Mercantile Exchange Holdings, Inc. 35,352 14,962,734
Countrywide Financial Corp. 55,104 1,842,678
Fannie Mae 118,174 6,847,002
First Marblehead Corp. (1) 81,100 2,626,018
Goldman Sachs Group, Inc. 148,956 21,040,035
Lehman Brothers Holdings, Inc. 78,361 11,005,802
Morgan Stanley 62,300 3,828,335
SLM Corp. 513,073 28,711,565
- --------------------------------------------------------------------------------------------------------------------
104,745,725
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.29%
Sprint Nextel Corp. 121,600 2,783,424
Telefonaktiebolaget LM Ericsson, ADR 7,605 277,430
- --------------------------------------------------------------------------------------------------------------------
3,060,854
- --------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.41%
TXU Corp. 83,400 4,223,376
ELECTRICAL EQUIPMENT - 1.28%
Emerson Electric Co. 8,400 650,580
Molex, Inc., Class A 457,926 12,652,495
- --------------------------------------------------------------------------------------------------------------------
13,303,075
- --------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.12%
Broadcom Corp., Class A* 17,600 1,200,320
ENERGY EQUIPMENT & SERVICES - 4.80%
Baker Hughes, Inc. 126,053 9,761,544
Halliburton Co. 133,780 10,642,199
Schlumberger Ltd. 230,842 29,420,813
- --------------------------------------------------------------------------------------------------------------------
49,824,556
- --------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.46%
General Mills, Inc. 61,400 2,984,654
Pilgrim's Pride Corp., Class B (1) 64,100 1,560,194
Sara Lee Corp. 10,400 190,112
- --------------------------------------------------------------------------------------------------------------------
4,734,960
- --------------------------------------------------------------------------------------------------------------------
</Table>
118
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 4.28%
Baxter International, Inc. 42,300 $ 1,558,755
Becton, Dickinson and Co. 86,300 5,592,240
Kinetic Concepts, Inc.* 12,200 441,518
Medtronic, Inc. 289,913 16,371,387
Zimmer Holdings, Inc.* 295,782 20,394,169
- --------------------------------------------------------------------------------------------------------------------
44,358,069
- --------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 5.56%
Express Scripts, Inc., Class A* 18,800 1,716,252
Lincare Holdings, Inc.* 167,414 7,074,915
McKesson Corp. 43,300 2,294,900
UnitedHealth Group, Inc. 783,204 46,537,982
- --------------------------------------------------------------------------------------------------------------------
57,624,049
- --------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 3.88%
Carnival Corp. (1) 241,273 12,488,290
Darden Restaurants, Inc. 8,800 357,808
Four Seasons Hotels, Inc. (1) 37,859 2,181,436
MGM Mirage (1)* 276,868 10,260,728
Starbucks Corp.* 185,902 5,893,093
Wynn Resorts, Ltd. (1)* 140,134 9,049,854
- --------------------------------------------------------------------------------------------------------------------
40,231,209
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.60%
Black & Decker Corp. 9,800 845,740
Newell Rubbermaid, Inc. (1) 91,000 2,151,240
NVR, Inc. (1)* 4,000 3,177,000
- --------------------------------------------------------------------------------------------------------------------
6,173,980
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 2.28%
Procter & Gamble Co. 399,002 23,632,888
INSURANCE - 2.07%
AFLAC, Inc. 260,969 12,252,495
American International Group, Inc. 37,200 2,435,112
Prudential Financial, Inc. 23,200 1,747,888
St. Paul Travelers Cos., Inc. 62,700 2,845,326
W.R. Berkley Corp. 45,050 2,225,470
- --------------------------------------------------------------------------------------------------------------------
21,506,291
- --------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 1.12%
eBay, Inc.* 196,957 8,488,847
Expedia, Inc.* 122,000 3,174,440
- --------------------------------------------------------------------------------------------------------------------
11,663,287
- --------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 1.19%
Google, Inc., Class A* 900 389,925
McAfee, Inc.* 170,500 3,953,895
Yahoo!, Inc.* 232,285 7,976,667
- --------------------------------------------------------------------------------------------------------------------
12,320,487
- --------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.22%
Harley-Davidson, Inc. (1) 42,200 $ 2,258,966
MACHINERY - 3.54%
Caterpillar, Inc. 194,440 13,202,476
Danaher Corp. (1) 90,700 5,137,248
Dover Corp. 334,827 15,378,604
Navistar International Corp.* 108,800 2,959,360
- --------------------------------------------------------------------------------------------------------------------
36,677,688
- --------------------------------------------------------------------------------------------------------------------
MARINE - 0.25%
Overseas Shipholding Group, Inc. 50,400 2,599,632
MEDIA - 3.82%
CBS Corp., Class B 73,200 1,912,716
Comcast Corp., Class A* 374,219 10,373,351
Gannett Co., Inc. 7,100 438,780
Liberty Global, Inc.* 541,632 10,951,799
Liberty Media Corp., Class A* 1,319,613 11,031,964
Viacom, Inc., Class B* 49,300 2,044,964
Walt Disney Co. 114,800 2,905,588
- --------------------------------------------------------------------------------------------------------------------
39,659,162
- --------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.33%
Phelps Dodge Corp. 21,600 3,466,800
MULTI-LINE RETAIL - 0.98%
Costco Wholesale Corp. 68,700 3,427,443
J.C. Penney Co., Inc. (Holding Co.) 58,700 3,275,460
Target Corp. 20,200 1,105,950
Wal-Mart Stores, Inc. 51,200 2,360,832
- --------------------------------------------------------------------------------------------------------------------
10,169,685
- --------------------------------------------------------------------------------------------------------------------
OFFICE ELECTRONICS - 0.11%
Xerox Corp. (1)* 77,500 1,109,025
OIL & GAS - 1.10%
Kerr-McGee Corp. 11,300 1,247,407
Newfield Exploration Co.* 52,800 2,766,720
Pioneer Natural Resources Co. (1) 62,700 3,329,370
Sunoco, Inc. 42,700 4,065,040
- --------------------------------------------------------------------------------------------------------------------
11,408,537
- --------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 4.29%
Barr Pharmaceuticals, Inc.* 12,600 826,308
Eli Lilly & Co. 11,400 645,468
Forest Laboratories, Inc. (1)* 107,000 4,951,960
Johnson & Johnson 326,705 18,798,606
Merck & Co., Inc. 171,000 5,899,500
Pfizer, Inc. 521,667 13,396,408
- --------------------------------------------------------------------------------------------------------------------
44,518,250
- --------------------------------------------------------------------------------------------------------------------
</Table>
119
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 1.92%
Burlington Northern Santa Fe Corp. 154,752 $ 12,398,730
Laidlaw International, Inc. 33,300 905,760
Norfolk Southern Corp. 75,200 3,747,968
Union Pacific Corp. 32,492 2,874,243
- --------------------------------------------------------------------------------------------------------------------
19,926,701
- --------------------------------------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 3.66%
Analog Devices, Inc. 251,349 9,996,150
Intel Corp. 446,963 9,506,903
Lam Research Corp.* 22,500 1,044,675
Linear Technology Corp. 162,490 6,046,253
Maxim Integrated Products, Inc. 58,800 2,413,152
National Semiconductor Corp. 137,600 3,881,696
Texas Instruments, Inc. 174,600 5,103,558
- --------------------------------------------------------------------------------------------------------------------
37,992,387
- --------------------------------------------------------------------------------------------------------------------
SOFTWARE - 4.55%
Adobe Systems, Inc. 124,800 4,957,056
Intuit, Inc. (1)* 372,907 19,514,224
Microsoft Corp. 808,608 22,762,315
- --------------------------------------------------------------------------------------------------------------------
47,233,595
- --------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 6.00%
AnnTaylor Stores Corp.* 75,700 $ 2,522,324
AutoZone, Inc.* 20,400 1,994,100
Barnes & Noble, Inc. 25,200 1,068,984
Bed Bath & Beyond, Inc.* 251,121 9,394,437
Home Depot, Inc. 555,384 22,520,821
Lowe's Cos., Inc. (1) 276,221 17,553,845
Michaels Stores, Inc. 46,200 1,553,706
Sherwin-Williams Co. 42,700 2,258,830
Staples, Inc. 142,650 3,382,231
- --------------------------------------------------------------------------------------------------------------------
62,249,278
- --------------------------------------------------------------------------------------------------------------------
TEXTILES & APPAREL - 0.36%
Nike, Inc., Class B 46,200 3,739,890
WIRELESS TELECOMMUNICATION SERVICES - 0.91%
Vodafone Group PLC, ADR 448,078 9,458,927
- --------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost - $845,867,613) 1,001,784,794
- --------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATES VALUE
- ------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 3.14%
$ 32,579 Repurchase Agreement dated 01/31/06 with State Street Bank &
Trust Co., collateralized by $6,525,000 Federal Home Loan
Mortgage Corp. obligations, 4.250% due 07/15/09,
$21,298,212 U.S. Treasury Bills, zero coupon due 04/13/06
to 05/25/06 and $5,725,171 U.S. Treasury Notes, 2.500% due
05/31/06; (value - $33,232,315); proceeds: $32,582,620
(cost - $32,579,000) 02/01/06 4.000% 32,579,000
<Caption>
NUMBER OF
SHARES
(000)
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 4.85%
MONEY MARKET FUNDS+ - 0.39%
30 AIM Liquid Assets Portfolio 4.350 29,704
4 AIM Prime Portfolio 4.346 4,481
~ 0 Barclays Prime Money Market Fund 4.303 194
~ 0 BlackRock Provident Institutional TempFund 4.318 272
4,054 UBS Private Money Market Fund LLC** 4.347 4,053,754
- ------------------------------------------------------------------------------------------------------------------------
Total Money Market Funds (cost - $4,088,405) 4,088,405
- ------------------------------------------------------------------------------------------------------------------------
</Table>
120
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 4.46%
$ 20,966 Repurchase Agreement dated 01/31/06 with Deutsche Bank
Securities, Inc., collateralized by $21,325,000 Federal
National Mortgage Association obligations, 5.000% due
01/15/07; (value - $21,385,824); proceeds: $20,968,983 02/01/06 4.440% $ 20,966,397
25,245 Repurchase Agreement dated 01/31/06 with Merrill Lynch &
Co., collateralized by $25,850,000 Federal Farm Credit
Bank obligations, 4.125% to 4.330% due 02/01/07 to
04/15/09; (value - $25,754,539); proceeds: $25,247,916 02/01/06 4.430 25,244,809
- ------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost - $46,211,206) 46,211,206
- ------------------------------------------------------------------------------------------------------------------------
Total Investments of Cash Collateral from Securities Loaned
(cost - $50,299,611) 50,299,611
- ------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $928,746,224) - 104.57% 1,084,663,405
Liabilities in excess of other assets - (4.57)% (47,358,863)
Net Assets - 100.00% $ 1,037,304,542
- ------------------------------------------------------------------------------------------------------------------------
</Table>
* Non-Income producing security.
(1) Security, or portion thereof, was on loan at January 31, 2006.
+ Interest rates shown reflect yield at January 31, 2006.
~ Amount represents less than 500 shares.
ADR American Depositary Receipt.
** The table below details the Portfolio's transaction activity in an
affiliated issuer for the six months ended January 31, 2006.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
VALUE AT ENDED ENDED VALUE AT ENDED
SECURITY DESCRIPTION 07/31/05 01/31/06 01/31/06 01/31/06 01/31/06
- ---------------------------------------------------------------------------------------------------------------------------
UBS Private Money Market Fund LLC $ 46,286,284 $ 308,196,278 $ 350,428,808 $ 4,053,754 $ 19,611
</Table>
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- --------------------------------------------------------------------------------------------
United States 94.0%
Netherlands Antilles 2.7
Panama 1.2
Japan 1.0
United Kingdom 0.9
Canada 0.2
- --------------------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
121
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE SMALL/MEDIUM CO VALUE EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
COMMON STOCKS - 97.42%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE - 0.70%
Armor Holdings, Inc.* 45,700 $ 2,178,519
Herley Industries, Inc.* 60,110 1,050,122
- --------------------------------------------------------------------------------------------------------------------
3,228,641
- --------------------------------------------------------------------------------------------------------------------
AIR FREIGHT & COURIERS - 0.38%
CNF, Inc. 34,400 1,763,000
AIRLINES - 1.35%
AMR Corp. (1)* 115,000 2,610,500
Mesa Air Group, Inc. (1)* 222,400 2,590,960
SkyWest, Inc. 35,800 1,044,644
- --------------------------------------------------------------------------------------------------------------------
6,246,104
- --------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 1.28%
Aftermarket Technology Corp.* 78,800 1,665,832
BorgWarner, Inc. 53,300 2,938,429
Commercial Vehicle Group, Inc.* 62,100 1,340,118
- --------------------------------------------------------------------------------------------------------------------
5,944,379
- --------------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 0.46%
Thor Industries, Inc. (1) 29,800 1,270,970
Winnebago Industries, Inc. (1) 27,800 870,418
- --------------------------------------------------------------------------------------------------------------------
2,141,388
- --------------------------------------------------------------------------------------------------------------------
BANKS - 6.51%
Banc Corp.* 125,000 1,425,000
Cathay General Bancorp (1) 40,900 1,460,539
East West Bancorp, Inc. 53,500 1,974,685
First Republic Bank 58,500 2,220,660
IBERIABANK Corp. 22,100 1,222,130
Investors Financial Services Corp. (1) 169,600 7,961,024
Popular, Inc. 161,382 3,277,669
Prosperity Bancshares, Inc. 56,200 1,637,106
Sky Financial Group, Inc. (1) 123,600 3,178,992
TD Banknorth, Inc. (1) 139,042 4,029,437
UCBH Holdings, Inc. 106,400 1,846,040
- --------------------------------------------------------------------------------------------------------------------
30,233,282
- --------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.37%
ElkCorp 49,400 1,737,398
CHEMICALS - 1.19%
Agrium, Inc. 89,100 2,125,035
Arch Chemicals, Inc. 54,900 1,701,900
RPM International, Inc. 90,600 1,712,340
- --------------------------------------------------------------------------------------------------------------------
5,539,275
- --------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 9.69%
ARAMARK Corp., Class B 238,100 6,345,365
Central Parking Corp. 91,600 1,351,100
Dun & Bradstreet Corp.* 35,200 $ 2,544,256
Equifax, Inc. 134,000 5,134,880
Herman Miller, Inc. 160,400 4,860,120
Hewitt Associates, Inc., Class A (1)* 223,200 5,959,440
Pitney Bowes, Inc. 180,400 7,710,296
ServiceMaster Co. 235,800 3,051,252
Steelcase, Inc., Class A 231,100 3,894,035
Valassis Communications, Inc. (1)* 147,700 4,120,830
- --------------------------------------------------------------------------------------------------------------------
44,971,574
- --------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.98%
Andrew Corp.* 350,800 4,549,876
CONSTRUCTION PRODUCTS - 0.27%
Hughes Supply, Inc. 27,000 1,244,700
CONTAINERS & PACKAGING - 0.43%
AptarGroup, Inc. 35,700 2,014,908
DIVERSIFIED CONSUMER SERVICES - 2.20%
Career Education Corp. (1)* 205,400 6,673,446
Corinthian Colleges, Inc. (1)* 106,000 1,344,080
DeVry, Inc.* 95,800 2,202,442
- --------------------------------------------------------------------------------------------------------------------
10,219,968
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 4.69%
Ace Cash Express, Inc.* 55,000 1,445,400
Affiliated Managers Group, Inc. (1)* 22,700 2,106,560
American Capital Strategies, Ltd. (1) 45,100 1,603,305
Asset Acceptance Capital Corp.* 94,700 2,310,680
ASTA Funding, Inc. (1) 66,400 2,036,488
Boston Private Financial Holdings, Inc. (1) 51,560 1,574,642
Cash America International, Inc. 69,800 1,849,002
First Cash Financial Services, Inc.* 77,200 2,694,280
Janus Capital Group, Inc. 294,900 6,160,461
- --------------------------------------------------------------------------------------------------------------------
21,780,818
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.39%
General Communication, Inc., Class A* 166,000 1,801,100
ELECTRICAL EQUIPMENT - 3.10%
AMETEK, Inc. 29,400 1,209,516
Brady Corp., Class A 144,800 5,758,696
Energizer Holdings, Inc. (1)* 114,300 6,184,773
Genlyte Group, Inc.* 21,300 1,231,992
- --------------------------------------------------------------------------------------------------------------------
14,384,977
- --------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 4.74%
Anixter International, Inc. 96,500 4,466,985
Arrow Electronics, Inc.* 40,200 1,381,272
</Table>
122
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (CONCLUDED)
Avnet, Inc.* 54,700 $ 1,337,415
Benchmark Electronics, Inc.* 118,900 4,343,417
Coherent, Inc.* 38,700 1,198,152
Global Imaging Systems, Inc.* 24,800 876,928
Ingram Micro, Inc., Class A* 110,100 2,130,435
Insight Enterprises, Inc.* 89,000 1,860,990
Lipman (1)* 68,362 1,830,734
Methode Electronics, Inc. 106,900 1,314,870
Roper Industries, Inc. 31,100 1,254,885
- --------------------------------------------------------------------------------------------------------------------
21,996,083
- --------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 2.36%
Maverick Tube Corp. (1)* 45,900 2,196,315
Oceaneering International Inc.* 44,000 2,614,040
Oil States International, Inc.* 43,000 1,758,700
Unit Corp.* 39,800 2,376,060
Veritas DGC, Inc.* 44,100 1,987,146
- --------------------------------------------------------------------------------------------------------------------
10,932,261
- --------------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.29%
Performance Food Group Co. (1)* 48,400 1,334,388
FOOD PRODUCTS - 2.85%
Brooklyn Cheesecake & Desserts Co., Inc. (2)* 867,000 26,877
Delta & Pine Land Co. 50,400 1,186,416
Fresh Del Monte Produce, Inc. 52,215 1,200,423
J&J Snack Foods Corp. 55,000 1,665,400
J.M. Smucker Co. 100,100 4,354,350
McCormick & Co., Inc. 159,400 4,815,474
- --------------------------------------------------------------------------------------------------------------------
13,248,940
- --------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.46%
New Jersey Resources Corp. 46,700 2,122,515
HEALTH CARE EQUIPMENT & SUPPLIES - 4.22%
Advanced Medical Optics, Inc.* 45,700 2,037,306
Cooper Cos., Inc. (1) 32,100 1,779,303
Fisher Scientific International, Inc. (1)* 89,060 5,955,442
Invacare Corp. 89,300 3,088,887
Sybron Dental Specialties, Inc.* 129,899 5,533,698
Zoll Medical Corp.* 44,000 1,205,600
- --------------------------------------------------------------------------------------------------------------------
19,600,236
- --------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 2.75%
AMN Healthcare Services, Inc. (1)* 59,900 1,208,183
IMS Health, Inc. 216,500 5,325,900
Omnicare, Inc. (1) 59,700 2,967,090
Option Care, Inc. (1) 99,800 1,378,238
RehabCare Group Inc.* 46,700 $ 895,706
Triad Hospitals, Inc.* 23,800 977,228
- --------------------------------------------------------------------------------------------------------------------
12,752,345
- --------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.87%
CEC Entertainment, Inc.* 41,000 1,476,820
Landry's Restaurants, Inc. (1) 54,900 1,682,136
O'Charley's, Inc.* 49,500 856,845
- --------------------------------------------------------------------------------------------------------------------
4,015,801
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 7.08%
American Greetings Corp., Class A 164,100 3,349,281
Beazer Homes USA, Inc. (1) 30,800 2,243,472
Black & Decker Corp. 86,300 7,447,690
Hovnanian Enterprises, Inc., Class A* 41,500 2,009,430
M.D.C. Holdings, Inc. 45,500 2,886,975
Meritage Homes Corp.* 16,800 1,016,400
Mohawk Industries, Inc.* 85,600 7,279,424
Standard Pacific Corp. 96,700 3,761,630
Technical Olympic USA, Inc. 66,400 1,507,280
WCI Communities, Inc. (1)* 49,500 1,363,230
- --------------------------------------------------------------------------------------------------------------------
32,864,812
- --------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.26%
Tredegar Corp. 80,400 1,200,372
INSURANCE - 12.05%
Ambac Financial Group, Inc. (1) 113,900 8,748,659
American Financial Group, Inc. 52,600 1,978,812
AmerUs Group Co. 38,500 2,362,745
Arch Capital Group, Ltd.* 31,700 1,722,578
Bristol West Holdings, Inc. 58,900 1,074,925
HCC Insurance Holdings, Inc. 321,101 9,973,397
Infinity Property & Casualty Corp. 48,800 1,882,704
Markel Corp. (1)* 24,100 8,049,400
Max Re Capital, Ltd. 66,000 1,749,660
MBIA, Inc. (1) 136,800 8,421,408
Navigators Group, Inc.* 43,900 1,961,013
Selective Insurance Group, Inc. 37,400 2,169,200
StanCorp Financial Group, Inc. 76,000 3,781,000
Stewart Information Services Corp. 39,000 2,084,550
- --------------------------------------------------------------------------------------------------------------------
55,960,051
- --------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.32%
Schawk, Inc. (1) 68,000 1,496,000
IT CONSULTING & SERVICES - 1.29%
BearingPoint, Inc. (1)* 437,700 3,597,894
Gartner, Inc. (1)* 173,000 2,380,480
- --------------------------------------------------------------------------------------------------------------------
5,978,374
- --------------------------------------------------------------------------------------------------------------------
</Table>
123
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 2.51%
Hasbro, Inc. 199,800 $ 4,235,760
Mattel, Inc. 366,850 6,053,025
RC2 Corp.* 39,700 1,384,339
- --------------------------------------------------------------------------------------------------------------------
11,673,124
- --------------------------------------------------------------------------------------------------------------------
MACHINERY - 3.92%
AGCO Corp.* 97,000 1,746,970
Harsco Corp. 27,500 2,178,550
IDEX Corp. 161,000 7,406,000
Terex Corp.* 38,100 2,686,050
Timken Co. (1) 41,300 1,493,821
Wabash National Corp. 54,600 1,164,618
Watts Water Technologies, Inc., Class A 45,300 1,525,704
- --------------------------------------------------------------------------------------------------------------------
18,201,713
- --------------------------------------------------------------------------------------------------------------------
MEDIA - 4.91%
Carmike Cinemas, Inc. (1) 43,000 985,130
Central European Media Enterprises, Ltd., Class A* 38,200 2,304,224
Harte-Hanks, Inc. 87,750 2,490,345
Interpublic Group of Cos., Inc.* 506,700 5,117,670
Lee Enterprises, Inc. 119,350 4,199,926
McClatchy Co., Class A 70,300 3,971,950
Radio One, Inc., Class D (1)* 287,800 3,154,288
Saga Communications, Inc., Class A* 57,400 578,018
- --------------------------------------------------------------------------------------------------------------------
22,801,551
- --------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.63%
Gibraltar Industries, Inc. 77,200 2,086,716
Quanex Corp. 13,700 850,907
- --------------------------------------------------------------------------------------------------------------------
2,937,623
- --------------------------------------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 0.26%
Fred's, Inc. (1) 76,700 1,217,996
OIL & GAS - 2.58%
Edge Petroleum Corp.* 44,600 1,479,382
Energy Partners, Ltd. (1)* 41,700 1,170,519
Houston Exploration Co.* 21,600 1,341,144
OMI Corp. (1) 98,900 1,736,684
Quicksilver Resources, Inc.* 41,800 2,101,286
Remington Oil & Gas Corp.* 28,700 1,285,760
Tsakos Energy Navigation, Ltd.* 77,000 2,841,300
- --------------------------------------------------------------------------------------------------------------------
11,956,075
- --------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.35%
Neenah Paper, Inc. 55,000 1,611,500
PERSONAL PRODUCTS - 0.31%
Steiner Leisure, Ltd.* 37,500 $ 1,455,750
PHARMACEUTICALS - 0.51%
Par Pharmaceutical Cos., Inc. (1)* 37,300 1,233,884
SFBC International, Inc. (1)* 50,500 1,113,525
- --------------------------------------------------------------------------------------------------------------------
2,347,409
- --------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 2.11%
Bluegreen Corp.* 87,900 1,416,948
CenterPoint Properties Trust 21,900 1,087,116
Equity Inns, Inc. 120,500 1,903,900
Intrawest Corp. 75,500 2,120,795
LaSalle Hotel Properties 52,600 2,010,372
Pan Pacific Retail Properties, Inc. 18,200 1,259,440
- --------------------------------------------------------------------------------------------------------------------
9,798,571
- --------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 2.32%
Arkansas Best Corp. 37,300 1,596,813
Greenbrier Cos., Inc. 58,900 2,088,005
Landstar System, Inc. 54,000 2,284,200
SCS Transportation, Inc.* 48,200 1,290,796
USA Truck, Inc.* 59,500 1,599,955
YRC Worldwide, Inc.* 38,400 1,913,856
- --------------------------------------------------------------------------------------------------------------------
10,773,625
- --------------------------------------------------------------------------------------------------------------------
SOFTWARE - 1.30%
Business Objects S.A., ADR (1)* 69,000 2,863,500
Hyperion Solutions Corp.* 50,000 1,720,500
Manhattan Associates, Inc.* 66,200 1,440,512
- --------------------------------------------------------------------------------------------------------------------
6,024,512
- --------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 1.68%
Claire's Stores, Inc. 68,370 2,164,594
Men's Wearhouse, Inc.* 77,600 2,651,592
Regis Corp. 39,900 1,546,125
Rent-Way, Inc.* 214,000 1,457,340
- --------------------------------------------------------------------------------------------------------------------
7,819,651
- --------------------------------------------------------------------------------------------------------------------
TEXTILES & APPAREL - 0.28%
UniFirst Corp. 37,900 1,317,404
TRADING COMPANIES & DISTRIBUTORS - 0.22%
Huttig Building Products, Inc.* 112,000 1,003,520
- --------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost - $389,517,569) 452,243,590
- --------------------------------------------------------------------------------------------------------------------
</Table>
124
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION WARRANTS VALUE
- --------------------------------------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
- ------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.71%
$ 12,577 Repurchase Agreement dated 01/31/06 with State Street Bank &
Trust Co., collateralized by $10,193,219 U.S. Treasury
Bills, zero coupon due 04/13/06 to 05/25/06 and $2,740,039
U.S. Treasury Notes, 2.500% due 05/31/06; (value -
$12,828,832); proceeds: $12,578,397 (cost - $12,577,000) 02/01/06 4.000% 12,577,000
<Caption>
NUMBER OF
SHARES
(000)
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 16.17%
MONEY MARKET FUNDS+ - 7.43%
9 AIM Liquid Assets Portfolio 4.350 9,148
43 AIM Prime Portfolio 4.346 43,037
2 Barclays Prime Money Market Fund 4.303 2,282
1 BlackRock Provident Institutional TempFund 4.318 534
~ 0 Deutsche Cash Reserve Institutional Fund 4.191 136
1 Scudder Money Market Series 4.247 557
34,416 UBS Private Money Market Fund LLC** 4.347 34,415,630
- ------------------------------------------------------------------------------------------------------------------------
Total Money Market Funds (cost - $34,471,324) 34,471,324
- ------------------------------------------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT
(000)
- ------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 8.74%
$ 20,323 Repurchase Agreement dated 01/31/06 with Deutsche Bank
Securities, Inc., collateralized by $7,529,000 Federal
Home Loan Mortgage Corp. obligations, 5.000% due 01/30/14
and $13,294,000 Federal National Mortgage Association
obligations, 5.000% due 01/15/07; (value - $20,730,206);
proceeds: $20,325,511 02/01/06 4.440 20,323,004
20,273 Repurchase Agreement dated 01/31/06 with Merrill Lynch &
Co., collateralized by $20,685,000 Federal Farm Credit
Bank obligations, 4.330% due 02/01/07; (value -
$20,682,931); proceeds: $20,275,697 02/01/06 4.430 20,273,202
- ------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost - $40,596,206) 40,596,206
- ------------------------------------------------------------------------------------------------------------------------
Total Investments of Cash Collateral from Securities Loaned
(cost - $75,067,530) 75,067,530
- ------------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $477,162,099) - 116.30% 539,888,120
Liabilities in excess of other assets - (16.30)% (75,654,622)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% $ 464,233,498
- ------------------------------------------------------------------------------------------------------------------------
</Table>
125
<Page>
* Non-income producing security.
+ Interest rates shown reflect yield at January 31, 2006.
++ 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, 2006.
(2) Illiquid securities representing 0.01% of net assets as of January 31,
2006.
ADR American Depositary Receipt.
** The table below details the Portfolio's transaction activity in an
affiliated issuer for the six months ended January 31, 2006.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
VALUE AT ENDED ENDED VALUE AT ENDED
SECURITY DESCRIPTION 07/31/05 01/31/06 01/31/06 01/31/06 01/31/06
- ---------------------------------------------------------------------------------------------------------------------------
UBS Private Money Market Fund LLC $ 76,244,751 $ 219,490,019 $ 261,319,140 $ 34,415,630 $ 27,707
</Table>
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- --------------------------------------------------------------------------------------------
United States 96.0%
Bermuda 1.6
Canada 0.8
France 0.5
Israel 0.3
Marshall Islands 0.3
Bahamas 0.3
Cayman Islands 0.2
- --------------------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
126
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE SMALL/MEDIUM CO GROWTH EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
COMMON STOCKS - 95.58%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE - 0.34%
EDO Corp. 58,212 $ 1,608,398
AIR FREIGHT & COURIERS - 0.47%
UTI Worldwide, Inc. 21,200 2,220,276
AUTO COMPONENTS - 0.59%
Gentex Corp. 166,600 2,782,220
BANKS - 1.48%
City National Corp. 25,000 1,874,250
Colonial BancGroup, Inc. 89,200 2,221,080
East West Bancorp, Inc. 49,043 1,810,177
Zions Bancorp 12,900 1,020,003
- --------------------------------------------------------------------------------------------------------------------
6,925,510
- --------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 5.29%
Amylin Pharmaceuticals, Inc. (1)* 26,400 1,119,360
Cepheid, Inc.* 218,410 2,151,339
CV Therapeutics, Inc. (1)* 55,700 1,370,777
Encysive Pharmaceuticals, Inc.* 125,150 1,185,171
Invitrogen Corp.* 32,300 2,224,824
Neogen Corp.* 85,882 1,932,345
PDL BioPharma, Inc. (1)* 148,794 4,337,345
Progenics Pharmaceuticals, Inc.* 82,551 2,336,193
Rigel Pharmaceuticals, Inc. (1)* 112,400 875,596
Tanox, Inc. (1)* 63,600 1,147,980
Techne Corp.* 76,492 4,348,570
Telik, Inc.* 91,000 1,746,290
- --------------------------------------------------------------------------------------------------------------------
24,775,790
- --------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.36%
ElkCorp 47,600 1,674,092
CHEMICALS - 1.29%
Spartech Corp. 121,400 2,917,242
Symyx Technologies, Inc.* 113,768 3,146,823
- --------------------------------------------------------------------------------------------------------------------
6,064,065
- --------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 7.61%
BISYS Group, Inc.* 115,100 1,667,799
Bright Horizons Family Solutions, Inc.* 48,600 1,899,288
Cogent, Inc.* 51,800 1,244,754
Corporate Executive Board Co. 65,500 5,511,170
First Consulting Group, Inc.* 388,341 2,275,678
G & K Services, Inc., Class A 75,100 2,984,474
Mobile Mini, Inc. (1)* 45,200 2,247,344
MoneyGram International, Inc. 84,700 2,249,632
Monster Worldwide, Inc.* 55,984 2,388,277
Resources Connection, Inc.* 74,900 2,036,531
Rollins, Inc. 87,300 1,876,077
Stericycle, Inc.* 89,000 $ 5,319,530
Universal Technical Institute, Inc.* 60,670 2,217,489
Waste Connections, Inc.* 50,013 1,747,454
- --------------------------------------------------------------------------------------------------------------------
35,665,497
- --------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 4.72%
ADC Telecommunications, Inc.* 180,800 4,585,088
Digi International, Inc.* 191,672 2,171,644
Echelon Corp.* 147,610 1,313,729
F5 Networks, Inc.* 73,700 4,768,390
Ixia* 97,400 1,227,240
Polycom, Inc.* 113,700 2,203,506
Powerwave Technologies, Inc.* 152,069 2,221,728
Tekelec (1)* 130,900 2,048,585
Tellabs, Inc.* 123,800 1,583,402
- --------------------------------------------------------------------------------------------------------------------
22,123,312
- --------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 1.35%
ATI Technologies, Inc.* 204,007 3,641,525
Hutchinson Technology, Inc.* 49,500 1,370,160
Rackable Systems, Inc.* 43,900 1,319,195
- --------------------------------------------------------------------------------------------------------------------
6,330,880
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.51%
Jacobs Engineering Group, Inc. (1)* 28,659 2,389,301
DIVERSIFIED FINANCIALS - 4.50%
Affiliated Managers Group, Inc.* 24,900 2,310,720
AmeriCredit Corp.* 52,300 1,504,148
Cash America International, Inc. 85,467 2,264,021
Euronet Worldwide, Inc. (1)* 99,601 3,214,124
IndyMac Bancorp, Inc. 71,143 2,906,903
Investment Technology Group, Inc.* 81,100 3,647,878
Knight Capital Group, Inc., Class A (1)* 160,000 1,822,400
Nuveen Investments, Class A 39,900 1,810,263
Portfolio Recovery Associates, Inc.* 32,000 1,576,000
- --------------------------------------------------------------------------------------------------------------------
21,056,457
- --------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.42%
Regal-Beloit Corp. 53,900 1,988,371
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.44%
Greatbatch, Inc.* 131,048 3,412,490
Intersil Corp., Class A 46,000 1,336,760
Tech Data Corp.* 48,900 2,016,147
- --------------------------------------------------------------------------------------------------------------------
6,765,397
- --------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 4.00%
Atwood Oceanics, Inc.* 18,100 1,758,053
Cal Dive International, Inc. (1)* 68,000 2,854,640
</Table>
127
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
Energy Equipment & Services (Concluded)
Cooper Cameron Corp.* 60,200 $ 2,913,078
Oil States International, Inc.* 48,700 1,991,830
Veritas DGC, Inc.* 42,500 1,915,050
W-H Energy Services, Inc.* 151,100 7,295,108
- --------------------------------------------------------------------------------------------------------------------
18,727,759
- --------------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 1.39%
Performance Food Group Co.* 97,650 2,692,210
United Natural Foods, Inc. (1)* 118,348 3,826,191
- --------------------------------------------------------------------------------------------------------------------
6,518,401
- --------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.18%
Central Garden & Pet Co.* 16,500 818,070
HEALTH CARE EQUIPMENT & SUPPLIES - 7.68%
American Medical Systems Holdings, Inc. (1)* 88,300 2,000,878
AngioDynamics, Inc.* 81,960 2,303,896
Animas Corp.* 147,300 3,597,066
ArthroCare Corp. (1)* 57,600 2,579,904
Aspect Medical Systems, Inc.* 39,260 1,420,034
Cytyc Corp.* 76,300 2,296,630
Dade Behring Holdings, Inc. 31,600 1,236,508
Fisher Scientific International, Inc.* 27,400 1,832,238
I-Flow Corp. (1)* 76,141 1,209,119
Immucor, Inc.* 56,550 1,699,328
Integra LifeSciences Holdings* 75,390 2,940,210
Kinetic Concepts, Inc.* 35,700 1,291,983
Kyphon, Inc. (1)* 66,000 2,743,620
Millipore Corp.* 33,100 2,276,618
SurModics, Inc. (1)* 79,974 2,949,441
Synovis Life Technologies, Inc.* 146,744 1,482,114
West Pharmaceutical Services, Inc. 69,300 2,115,729
- --------------------------------------------------------------------------------------------------------------------
35,975,316
- --------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 6.99%
Apria Healthcare Group, Inc.* 77,045 1,877,587
Centene Corp.* 68,900 1,811,381
Community Health Systems, Inc.* 46,938 1,708,074
Covance, Inc.* 84,536 4,802,490
Express Scripts, Inc.* 19,600 1,789,284
First Horizon Pharmaceutical Corp. (1)* 116,617 1,960,332
LifePoint Hospitals, Inc. (1)* 70,616 2,178,504
MAXIMUS, Inc. 61,500 2,405,880
Omnicare, Inc. 13,600 675,920
Pediatrix Medical Group, Inc.* 67,452 5,914,191
PSS World Medical, Inc.* 116,500 2,067,875
Sierra Health Services, Inc.* 73,036 2,893,686
Sunrise Senior Living, Inc. (1)* 73,356 2,666,490
- --------------------------------------------------------------------------------------------------------------------
32,751,694
- --------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE 4.44%
Boyd Gaming Corp. 86,619 $ 3,915,179
Brinker International, Inc. (1) 43,747 1,780,503
Cheesecake Factory, Inc.* 110,705 4,079,479
Penn National Gaming, Inc.* 91,779 2,946,106
Royal Caribbean Cruises Ltd. 44,000 1,799,600
Scientific Games Corp., Class A* 90,586 2,903,281
Sonic Corp.* 49,393 1,429,927
Wynn Resorts Ltd. (1)* 30,000 1,937,400
- --------------------------------------------------------------------------------------------------------------------
20,791,475
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.97%
Hovnanian Enterprises, Inc., Class A* 33,500 1,622,070
M.D.C. Holdings, Inc. 21,600 1,370,520
Technical Olympic USA, Inc. 67,682 1,536,381
- --------------------------------------------------------------------------------------------------------------------
4,528,971
- --------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 1.24%
Chemed Corp. 109,564 5,824,422
INSURANCE - 1.16%
HCC Insurance Holdings, Inc. 95,693 2,972,225
PartnerRe Ltd. (1) 17,600 1,087,328
UnumProvident Corp. 68,500 1,392,605
- --------------------------------------------------------------------------------------------------------------------
5,452,158
- --------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 4.64%
Akamai Technologies, Inc.* 179,669 3,922,174
Blue Coat Systems, Inc.* 25,500 1,045,245
Digital Insight Corp.* 76,000 2,726,120
Equinix, Inc. (1)* 59,968 2,814,298
Jupitermedia Corp.* 139,323 2,255,640
McAfee, Inc.* 61,361 1,422,962
Openwave Systems, Inc. (1)* 163,922 3,534,158
WebEx Communications, Inc.* 165,286 4,013,144
- --------------------------------------------------------------------------------------------------------------------
21,733,741
- --------------------------------------------------------------------------------------------------------------------
IT CONSULTING & SERVICES - 1.97%
Keane, Inc.* 197,970 2,144,015
NAVTEQ Corp.* 13,900 624,249
Perot Systems Corp., Class A* 125,500 1,891,285
Redback Networks, Inc. (1)* 179,614 3,026,496
Satyam Computer Services Ltd., ADR 39,700 1,556,240
- --------------------------------------------------------------------------------------------------------------------
9,242,285
- --------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.50%
Build-A-Bear Workshop, Inc. (1)* 22,700 734,345
Nautilus, Inc. (1) 99,300 1,623,555
- --------------------------------------------------------------------------------------------------------------------
2,357,900
- --------------------------------------------------------------------------------------------------------------------
</Table>
128
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
MACHINERY - 1.63%
Joy Global, Inc. 55,200 $ 2,983,008
Middleby Corp.* 19,400 1,833,300
Oshkosh Truck Corp. 57,069 2,814,072
- --------------------------------------------------------------------------------------------------------------------
7,630,380
- --------------------------------------------------------------------------------------------------------------------
MEDIA - 0.34%
Getty Images, Inc.* 19,400 1,584,010
METALS & MINING - 0.58%
Allegheny Technologies, Inc. 52,400 2,716,940
MULTI-LINE RETAIL - 0.35%
Fred's, Inc. (1) 103,100 1,637,228
OIL & GAS - 1.99%
Denbury Resources, Inc.* 93,864 2,794,331
Encore Acquisition Co.* 65,313 2,361,065
Energy Partners Ltd. (1)* 70,582 1,981,237
Plains Exploration & Production Co.* 48,445 2,172,274
- --------------------------------------------------------------------------------------------------------------------
9,308,907
- --------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 2.04%
Anadys Pharmaceuticals, Inc.* 95,300 1,045,441
Discovery Laboratories, Inc. (1)* 183,320 1,457,394
Medicis Pharmaceutical Corp., Class A (1) 58,200 1,798,962
MGI Pharma, Inc.* 117,500 1,958,725
Nastech Pharmaceutical Co., Inc. (1)* 101,600 1,615,440
Watson Pharmaceuticals, Inc.* 50,920 1,684,943
- --------------------------------------------------------------------------------------------------------------------
9,560,905
- --------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 1.08%
Host Marriott Corp. (1) 72,300 1,442,385
Strategic Hotel Capital, Inc. 93,400 1,998,760
Williams Scotsman International, Inc.* 83,100 1,599,675
- --------------------------------------------------------------------------------------------------------------------
5,040,820
- --------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.38%
J.B. Hunt Transport Services, Inc. (1) 73,900 1,758,820
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 7.01%
August Technology Corp.* 124,900 1,423,860
Cree, Inc. (1)* 90,100 2,354,313
Cymer, Inc.* 34,400 1,552,816
Entegris, Inc.* 328,602 3,450,321
Lam Research Corp.* 61,619 2,860,970
Microsemi Corp.* 351,178 10,689,859
O2Micro International Ltd.* 164,400 1,788,672
Power Integrations, Inc.* 101,106 2,678,298
QLogic Corp.* 44,336 1,758,809
Semtech Corp.* 121,300 $ 2,338,664
Varian Semiconductor Equipment Associates, Inc.* 38,693 1,916,464
- --------------------------------------------------------------------------------------------------------------------
32,813,046
- --------------------------------------------------------------------------------------------------------------------
SOFTWARE - 7.22%
Activision, Inc.* 316,532 4,539,069
Amdocs Ltd. (1)* 77,800 2,505,160
Cognos, Inc.* 45,083 1,717,662
FARO Technologies, Inc. (1)* 79,700 1,269,621
Informatica Corp.* 338,849 4,987,857
National Instruments Corp. 109,077 3,609,358
SafeNet, Inc. (1)* 51,500 1,618,130
Salesforce.com, Inc. (1)* 48,200 1,978,610
TIBCO Software, Inc.* 167,500 1,338,325
Transaction Systems Architects, Inc.* 104,808 3,457,616
Unica Corp.* 139,800 1,975,374
Verint Systems, Inc.* 107,719 3,904,814
Witness Systems, Inc.* 46,000 917,240
- --------------------------------------------------------------------------------------------------------------------
33,818,836
- --------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 3.70%
AnnTaylor Stores Corp.* 72,850 2,427,362
Barnes & Noble, Inc. 81,025 3,437,080
Golf Galaxy, Inc.* 66,200 1,184,318
Gymboree Corp.* 30,800 758,912
Hibbett Sporting Goods, Inc.* 68,200 2,090,330
Hot Topic, Inc.* 119,100 1,710,276
Pacific Sunwear of California, Inc.* 53,415 1,309,202
PETCO Animal Supplies, Inc.* 76,400 1,670,104
Urban Outfitters, Inc. (1)* 100,300 2,739,193
- --------------------------------------------------------------------------------------------------------------------
17,326,777
- --------------------------------------------------------------------------------------------------------------------
TEXTILES & APPAREL - 1.96%
Carter's, Inc.* 40,200 2,733,198
Coach, Inc.* 100,800 3,623,760
Polo Ralph Lauren Corp. 49,492 2,803,227
- --------------------------------------------------------------------------------------------------------------------
9,160,185
- --------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.44%
MSC Industrial Direct Co., Inc., Class A 46,000 2,066,780
WIRELESS TELECOMMUNICATION SERVICES - 1.33%
Crown Castle International Corp.* 95,445 3,018,925
Syniverse Holdings, Inc.* 132,759 3,187,544
- --------------------------------------------------------------------------------------------------------------------
6,206,469
- --------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost - $380,443,345) 447,721,861
- --------------------------------------------------------------------------------------------------------------------
</Table>
129
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 5.03%
$ 23,569 Repurchase Agreement dated 01/31/06 with State Street
Bank & Trust Co., collateralized by $19,101,851 U.S.
Treasury Bills, zero coupon due 04/13/06 to 05/25/06
and $5,134,768 U.S. Treasury Notes, 2.500% due
05/31/06; (value - $24,040,927); proceeds:
$23,571,619 (cost - $23,569,000) 02/01/06 4.000% $ 23,569,000
<Caption>
NUMBER OF
SHARES
(000)
- --------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 12.10%
MONEY MARKET FUNDS+ - 6.89%
46 AIM Liquid Assets Portfolio 4.350 45,698
4 AIM Prime Portfolio 4.346 4,009
7 Barclays Prime Money Market Fund 4.303 6,875
~ 0 BlackRock Provident Institutional TempFund 4.318 140
1 Scudder Money Market Series 4.247 670
32,229 UBS Private Money Market Fund LLC** 4.347 32,228,795
Total Money Market Funds (cost - $32,286,187) 32,286,187
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 5.21%
$ 12,233 Repurchase Agreement dated 01/31/06 with Deutsche Bank
Securities, Inc., collateralized by $4,195,000
Federal Home Loan Bank obligations, 5.365% due
09/09/24 and $8,268,000 Federal Home Loan Mortgage
Corp. obligations, 5.000% due 01/30/14; (value -
$12,477,702); proceeds: $12,234,235 02/01/06 4.440 12,232,726
$ 12,152 Repurchase Agreement dated 01/31/06 with Merrill Lynch
& Co., collateralized by $12,400,000 Federal Farm
Credit Bank obligations, 4.330% due 02/01/07; (value
- $12,398,760); proceeds: $12,153,299 02/01/06 4.430 12,151,804
- --------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost - $24,384,530) 24,384,530
- --------------------------------------------------------------------------------------------------------------------
Total Investments of Cash Collateral from Securities Loaned (cost - $56,670,717) 56,670,717
- --------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $460,683,062) - 112.71% 527,961,578
Liabilities in excess of other assets - (12.71)% (59,516,531)
- --------------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% $ 468,445,047
- --------------------------------------------------------------------------------------------------------------------
</Table>
* Non-income producing security.
(1) Security, or portion thereof, was on loan at January 31, 2006.
+ Interest rates shown reflect yield at January 31, 2006.
~ Amount represents less than 500 shares.
ADR American Depositary Receipt.
130
<Page>
** The table below details the Portfolio's transaction activity in an affiliated
issuer for the six months ended January 31, 2006.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
VALUE AT ENDED ENDED VALUE AT ENDED
SECURITY DESCRIPTION 07/31/2005 01/31/2006 01/31/2006 01/31/2006 01/31/2006
- -----------------------------------------------------------------------------------------------------------------------
UBS Private Money Market Fund LLC $ 139,819,700 $ 226,064,936 $ 333,655,841 $ 32,228,795 $ 71,710
</Table>
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- -----------------------------------------------------------------------------------------------------------------------
United States 97.0%
Canada 1.0
Guernsey 0.5
Virgin Islands 0.4
India 0.3
Cayman Islands 0.3
Republic of Liberia 0.3
Bermuda 0.2
- -----------------------------------------------------------------------------------------------------------------------
Total 100.0%
- -----------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
131
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERNATIONAL EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
COMMON STOCKS - 98.20%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
AUSTRALIA - 5.44%
AIR FREIGHT & COURIERS - 0.01%
Toll Holdings Ltd. (1) 8,869 $ 76,193
AIRLINES - 0.02%
Qantas Airways Ltd. 74,072 231,962
BANKS - 1.48%
Australia & New Zealand Banking Group Ltd. 73,146 1,381,028
Commonwealth Bank of Australia 38,429 1,301,047
Macquarie Bank Ltd. 8,293 429,985
National Australia Bank Ltd. 376,199 9,664,370
Suncorp-Metway Ltd. 26,437 443,014
Westpac Banking Corp. 73,320 1,293,693
- --------------------------------------------------------------------------------------------------------------------
14,513,137
- --------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.73%
Coca Cola Amatil Ltd. 38,725 225,510
Foster's Group Ltd. 1,694,875 6,772,683
Lion Nathan Ltd. 27,767 157,697
- --------------------------------------------------------------------------------------------------------------------
7,155,890
- --------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.03%
Orica Ltd. 14,677 243,833
COMMERCIAL SERVICES & SUPPLIES - 0.05%
Brambles Industries Ltd. (1) 49,009 368,638
Computershare Ltd. 19,883 103,876
- --------------------------------------------------------------------------------------------------------------------
472,514
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.02%
Leighton Holdings Ltd. 11,751 180,432
CONSTRUCTION MATERIALS - 0.06%
CSR Ltd. 46,375 149,095
Rinker Group Ltd. 37,745 480,246
- --------------------------------------------------------------------------------------------------------------------
629,341
- --------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.36%
Amcor Ltd. 673,473 3,498,028
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.55%
Telstra Corp. Ltd. (1) 1,791,930 5,407,750
FOOD & DRUG RETAILING - 0.50%
Coles Myer Ltd. 561,559 4,449,633
Woolworths Ltd. 36,792 481,232
- --------------------------------------------------------------------------------------------------------------------
4,930,865
- --------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.02%
Australian Gas Light Co. Ltd. 14,921 203,649
HEALTH CARE EQUIPMENT & SUPPLIES - 0.01%
Cochlear Ltd. 1,900 66,487
HOTELS, RESTAURANTS & LEISURE - 0.04%
Aristocrat Leisure Ltd. 12,869 $ 112,704
TABCORP Holdings Ltd. 28,302 325,977
- --------------------------------------------------------------------------------------------------------------------
438,681
- --------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.24%
Wesfarmers Ltd. 82,520 2,380,819
INSURANCE - 0.12%
AMP Ltd. 63,408 395,211
AXA Asia Pacific Holdings Ltd. 62,969 260,217
Insurance Australia Group Ltd. 48,610 205,302
QBE Insurance Group Ltd. 19,816 290,743
- --------------------------------------------------------------------------------------------------------------------
1,151,473
- --------------------------------------------------------------------------------------------------------------------
MEDIA - 0.00%
John Fairfax Holdings Ltd. 7,707 24,778
METALS & MINING - 0.83%
Alumina Ltd. 49,505 281,904
BHP Billiton Ltd. 122,749 2,401,321
BlueScope Steel Ltd. 26,209 155,605
Iluka Resources Ltd. 14,410 80,200
Newcrest Mining Ltd. 10,127 201,184
Oxiana Ltd.* 2,876,473 4,405,794
Rio Tinto Ltd. (1) 10,226 587,898
- --------------------------------------------------------------------------------------------------------------------
8,113,906
- --------------------------------------------------------------------------------------------------------------------
OIL & GAS - 0.10%
Origin Energy Ltd. 36,717 203,237
Santos Ltd. 27,922 277,351
Woodside Petroleum Ltd. 14,413 494,194
- --------------------------------------------------------------------------------------------------------------------
974,782
- --------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.05%
CSL Ltd. 9,309 307,047
Mayne Pharma Ltd.* 44,122 85,312
Symbion Health Ltd. 44,122 115,421
- --------------------------------------------------------------------------------------------------------------------
507,780
- --------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.18%
General Property Trust 103,631 318,242
Lend Lease Corp. Ltd. 18,721 206,256
Mirvac Group 38,206 117,617
Stockland 76,872 378,290
Westfield Group 56,367 756,931
- --------------------------------------------------------------------------------------------------------------------
1,777,336
- --------------------------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.04%
Patrick Corp. Ltd. 23,252 119,890
Transurban Group (1) 47,018 255,264
375,154
- --------------------------------------------------------------------------------------------------------------------
Total Australia Common Stocks 53,354,790
- --------------------------------------------------------------------------------------------------------------------
</Table>
132
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
AUSTRIA - 0.59%
MACHINERY - 0.14%
Andritz AG 12,169 $ 1,399,308
OIL & GAS - 0.45%
OMV AG 62,810 4,438,214
- --------------------------------------------------------------------------------------------------------------------
Total Austria Common Stocks 5,837,522
- --------------------------------------------------------------------------------------------------------------------
BELGIUM - 1.42%
BANKS - 0.54%
KBC Bancassurance Holding 52,496 5,272,284
BEVERAGES - 0.01%
InBev NV 1,581 74,483
CHEMICALS - 0.06%
Solvay SA 5,148 581,457
DIVERSIFIED FINANCIALS - 0.81%
Fortis 228,620 7,985,466
- --------------------------------------------------------------------------------------------------------------------
Total Belgium Common Stocks 13,913,690
- --------------------------------------------------------------------------------------------------------------------
BERMUDA - 0.12%
MARINE - 0.12%
Frontline Ltd. (1) 29,559 1,175,233
BRAZIL - 1.25%
BANKS - 0.58%
Unibanco - Uniao de Bancos Brasileiros SA, ADR 67,600 5,693,272
OIL & GAS - 0.67%
Petroleo Brasileiro SA, ADR (1) 75,760 6,530,512
- --------------------------------------------------------------------------------------------------------------------
Total Brazil Common Stocks 12,223,784
- --------------------------------------------------------------------------------------------------------------------
DENMARK - 0.12%
BANKS - 0.07%
Danske Bank AS 19,600 688,427
PHARMACEUTICALS - 0.05%
Novo-Nordisk AS 8,858 496,073
- --------------------------------------------------------------------------------------------------------------------
Total Denmark Common Stocks 1,184,500
- --------------------------------------------------------------------------------------------------------------------
FINLAND - 1.07%
COMMUNICATIONS EQUIPMENT - 0.31%
Nokia Oyj (1) 168,866 3,088,221
IT CONSULTING & SERVICES - 0.12%
Tietoenator Oyj 30,026 1,167,554
MACHINERY - 0.16%
Metso Oyj (1) 45,530 1,491,029
Wartsila Corp., B Shares 2,206 72,270
- --------------------------------------------------------------------------------------------------------------------
1,563,299
- --------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.48%
Stora Enso Oyj 13,804 $ 191,391
UPM-Kymmene Oyj (1) 219,300 4,479,567
- --------------------------------------------------------------------------------------------------------------------
4,670,958
- --------------------------------------------------------------------------------------------------------------------
Total Finland Common Stocks 10,490,032
- --------------------------------------------------------------------------------------------------------------------
FRANCE - 8.81%
AEROSPACE & DEFENSE - 0.51%
Safran SA (1) 178,670 4,719,988
Thales SA 5,830 282,027
- --------------------------------------------------------------------------------------------------------------------
5,002,015
- --------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.03%
Air France-KLM 12,190 277,293
AUTO COMPONENTS - 0.04%
Compagnie Generale des Etablissements Michelin 6,218 371,368
AUTOMOBILES - 0.31%
Peugeot SA (1)* 21,810 1,295,173
Renault SA (1)* 18,799 1,774,947
- --------------------------------------------------------------------------------------------------------------------
3,070,120
- --------------------------------------------------------------------------------------------------------------------
BANKS - 1.63%
BNP Paribas SA (1) 45,041 4,017,296
Credit Agricole SA (1) 44,376 1,566,477
Societe Generale (1) 78,722 10,398,133
- --------------------------------------------------------------------------------------------------------------------
15,981,906
- --------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.70%
Cie de Saint-Gobain (1) 105,425 6,911,380
COMMUNICATIONS EQUIPMENT - 0.03%
Alcatel SA* 19,105 251,887
CONSTRUCTION & ENGINEERING - 0.47%
Alstom* 60,274 4,581,282
CONSTRUCTION MATERIALS - 0.07%
Lafarge SA (1)* 6,798 715,367
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.22%
France Telecom (1)* 92,702 2,108,748
ELECTRICAL EQUIPMENT - 0.09%
Schneider Electric SA 8,828 922,551
FOOD & DRUG RETAILING - 0.02%
Casino Guichard-Perrachon SA* 3,811 225,295
FOOD PRODUCTS - 0.03%
Groupe Danone 2,882 314,135
HOUSEHOLD DURABLES - 0.04%
Thomson 17,160 351,981
</Table>
133
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
FRANCE - (CONCLUDED)
INSURANCE - 0.25%
Axa (1) 72,426 $ 2,455,435
IT CONSULTING & SERVICES - 0.11%
Cap Gemini SA* 22,528 1,029,296
MACHINERY - 0.86%
Vallourec SA 12,072 8,464,177
MEDIA - 0.26%
Lagardere S.C.A 10,246 816,748
Societe Television Francaise 1* 13,899 440,474
Vivendi Universal SA (1) 41,603 1,303,279
- --------------------------------------------------------------------------------------------------------------------
2,560,501
- --------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.15%
Arcelor 43,174 1,516,177
MULTI-UTILITIES - 0.20%
Suez SA (1) 52,517 1,942,263
Suez SA STRIP VVPR* 24,336 296
- --------------------------------------------------------------------------------------------------------------------
1,942,559
- --------------------------------------------------------------------------------------------------------------------
OIL & GAS - 1.52%
Total SA 54,054 14,923,335
PERSONAL PRODUCTS - 0.20%
L'Oreal SA (1) 23,850 1,935,952
PHARMACEUTICALS - 0.42%
Sanofi-Synthelabo SA (1) 44,987 4,124,545
TEXTILES & APPAREL - 0.65%
LVMH Moet Hennessy Louis Vuitton SA (1) 70,446 6,355,980
- --------------------------------------------------------------------------------------------------------------------
Total France Common Stocks 86,393,285
- --------------------------------------------------------------------------------------------------------------------
GERMANY - 6.01%
AUTO COMPONENTS - 0.03%
Continental AG 3,062 298,035
AUTOMOBILES - 0.14%
Bayerische Motoren Werke (BMW) AG* 10,486 474,387
DaimlerChrysler AG* 4,717 270,888
Volkswagen AG (1) 10,750 637,467
- --------------------------------------------------------------------------------------------------------------------
1,382,742
- --------------------------------------------------------------------------------------------------------------------
BANKS - 0.90%
Commerzbank AG 174,495 5,934,930
Deutsche Bank AG (1) 27,223 2,923,612
- --------------------------------------------------------------------------------------------------------------------
8,858,542
- --------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.06%
BASF AG (1) 23,343 1,839,769
Bayer AG (1) 206,223 8,612,839
- --------------------------------------------------------------------------------------------------------------------
10,452,608
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.11%
Deutsche Boerse AG* 8,179 $ 1,034,619
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.18%
Deutsche Telekom AG (1)* 109,363 1,731,588
ELECTRIC UTILITIES - 0.17%
E.ON AG* 15,265 1,705,233
ELECTRICAL EQUIPMENT - 0.11%
Siemens AG 11,360 1,036,136
HEALTH CARE PROVIDERS & SERVICES - 0.48%
Celesio AG 3,205 300,076
Fresenius Medical Care AG (1) 41,414 4,414,942
- --------------------------------------------------------------------------------------------------------------------
4,715,018
- --------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.10%
TUI AG (1)* 45,170 958,899
INSURANCE - 0.62%
Allianz AG 10,193 1,643,006
Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe) 32,656 4,433,661
- --------------------------------------------------------------------------------------------------------------------
6,076,667
- --------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.16%
ThyssenKrupp AG (1) 60,028 1,536,179
MULTI-UTILITIES - 1.72%
RWE AG (1) 205,182 16,909,344
PHARMACEUTICALS - 0.09%
Schering AG 13,570 928,363
SOFTWARE - 0.14%
SAP AG (1)* 6,511 1,333,145
- --------------------------------------------------------------------------------------------------------------------
Total Germany Common Stocks 58,957,118
- --------------------------------------------------------------------------------------------------------------------
GREECE - 1.53%
BANKS - 0.58%
Alpha Bank A.E 10,250 351,737
National Bank of Greece SA 115,485 5,321,372
- --------------------------------------------------------------------------------------------------------------------
5,673,109
- --------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS-CEMENT - 0.43%
Titan Cement Co. 96,320 4,236,964
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.30%
Hellenic Telecommunications Organization SA* 126,918 2,936,432
ELECTRIC UTILITIES - 0.08%
Public Power Corp. 37,918 818,310
GAMING - 0.14%
OPAP SA 35,554 1,336,714
- --------------------------------------------------------------------------------------------------------------------
Total Greece Common Stocks 15,001,529
- --------------------------------------------------------------------------------------------------------------------
</Table>
134
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
HONG KONG - 1.90%
AIRLINES - 0.02%
Cathay Pacific Airways Ltd. 94,000 $ 171,454
BANKS - 0.08%
BOC Hong Kong Holdings Ltd. 37,500 75,167
Dah Sing Financial Group 25,200 176,224
Hang Seng Bank Ltd. 12,100 161,432
Wing Hang Bank Ltd. 28,000 202,120
Wing Lung Bank Ltd. 23,300 183,210
- --------------------------------------------------------------------------------------------------------------------
798,153
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.06%
Hong Kong Exchanges & Clearing Ltd. 35,000 170,765
Swire Pacific Ltd. 51,000 474,976
- --------------------------------------------------------------------------------------------------------------------
645,741
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.01%
PCCW Ltd. 150,000 101,511
ELECTRIC UTILITIES - 0.55%
CLP Holdings Ltd. 89,500 510,505
Hong Kong Electric Holdings 1,019,000 4,886,314
- --------------------------------------------------------------------------------------------------------------------
5,396,819
- --------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.01%
Hong Kong & China Gas 47,134 103,591
HOTELS, RESTAURANTS & LEISURE - 0.01%
Shangri-La Asia Ltd. 52,000 84,458
INDUSTRIAL CONGLOMERATES - 0.49%
Hutchison Whampoa Ltd. 474,836 4,853,791
MEDIA - 0.02%
Television Broadcasts Ltd. 31,000 168,232
REAL ESTATE - 0.58%
Cheung Kong Holdings Ltd. 53,500 574,464
Hang Lung Properties Ltd. 34,000 66,179
Henderson Land Development (1) 63,000 320,370
Hysan Development Co. Ltd. 27,000 68,564
Sun Hung Kai Properties Ltd. 52,000 537,579
Wharf Holdings Ltd. 1,066,000 4,108,588
- --------------------------------------------------------------------------------------------------------------------
5,675,744
- --------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.01%
MTR Corp. 32,367 68,216
SPECIALTY RETAIL - 0.05%
Esprit Holdings Ltd. 49,000 426,032
Yue Yuen Industrial Holdings 19,500 60,453
- --------------------------------------------------------------------------------------------------------------------
486,485
- --------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.01%
SmarTone Telecommunications Holdings Ltd. 92,000 $ 104,953
- --------------------------------------------------------------------------------------------------------------------
Total Hong Kong Common Stocks 18,659,148
- --------------------------------------------------------------------------------------------------------------------
INDIA - 0.28%
IT CONSULTING & SERVICES - 0.28%
Infosys Technologies Ltd., ADR 36,069 2,750,983
IRELAND - 0.76%
BANKS - 0.66%
Allied Irish Banks PLC 68,214 1,533,469
Anglo Irish Bank Corp. PLC 299,144 4,721,926
Bank of Ireland 10,400 179,201
- --------------------------------------------------------------------------------------------------------------------
6,434,596
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.09%
CRH PLC 30,168 934,795
INDUSTRIAL CONGLOMERATES - 0.01%
DCC PLC 2,945 66,562
- --------------------------------------------------------------------------------------------------------------------
Total Ireland Common Stocks 7,435,953
- --------------------------------------------------------------------------------------------------------------------
ITALY - 4.00%
BANKS - 3.10%
Banca Intesa SpA* 1,998,524 11,371,477
Banca Popolare Italiana 43,473 434,231
Banche Popolari Unite Scrl 13,043 305,890
Banco Popolare di Verona e Novara 23,181 532,383
Capitalia SpA* 689,879 4,455,597
UniCredito Italiano SpA* (2) 1,087,207 7,761,574
UniCredito Italiano SpA (3) 782,418 5,561,916
- --------------------------------------------------------------------------------------------------------------------
30,423,068
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.20%
Buzzi Unicem SpA 68,335 1,276,282
Italcementi SpA 34,655 660,722
- --------------------------------------------------------------------------------------------------------------------
1,937,004
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 0.08%
Mediolanum SpA (1) 100,432 775,564
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.13%
Telecom Italia SpA 238,560 670,361
Telecom Italia SpA~~ 262,793 619,506
- --------------------------------------------------------------------------------------------------------------------
1,289,867
- --------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.00%
Enel SpA 4,270 36,139
GAS UTILITIES - 0.12%
Snam Rete Gas SpA 262,792 1,139,215
</Table>
135
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
ITALY - (CONCLUDED)
OIL & GAS - 0.24%
ENI SpA 77,311 $ 2,337,337
TRANSPORTATION INFRASTRUCTURE - 0.13%
Autostrade SpA 51,909 1,313,267
- --------------------------------------------------------------------------------------------------------------------
Total Italy Common Stocks 39,251,461
- --------------------------------------------------------------------------------------------------------------------
JAPAN - 22.76%
AUTO COMPONENTS - 0.57%
Bridgestone Corp. 1,000 20,332
Denso Corp. 157,700 5,552,201
- --------------------------------------------------------------------------------------------------------------------
5,572,533
- --------------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 2.39%
Honda Motor Co. Ltd. 108,100 6,137,385
Mitsubishi Motors Corp. (1)* 10,000 21,909
Nissan Motor Co. Ltd. 110,400 1,242,300
Suzuki Motor Corp. 2,900 59,085
Toyota Motor Corp. 309,100 16,020,869
- --------------------------------------------------------------------------------------------------------------------
23,481,548
- --------------------------------------------------------------------------------------------------------------------
BANKS - 1.63%
77 Bank Ltd. 7,000 52,751
Bank of Fukuoka Ltd. (1) 20,000 172,030
Bank of Kyoto Ltd. 40,000 477,729
Chiba Bank Ltd. 39,000 352,747
Chugoku Bank Ltd. 24,000 356,404
Gunma Bank Ltd. 14,000 102,042
Joyo Bank Ltd. 44,000 292,946
Mitsubishi Tokyo Financial Group, Inc. 276 3,976,301
Resona Holdings, Inc.* 51 200,426
Sumitomo Mitsui Financial Group, Inc. 811 9,471,634
Sumitomo Trust & Banking Co. Ltd. 42,000 462,231
Suruga Bank Ltd. 8,000 102,843
- --------------------------------------------------------------------------------------------------------------------
16,020,084
- --------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.08%
Asahi Breweries Ltd. 20,500 257,244
ITO EN Ltd. (1) 4,200 287,507
Kirin Brewery Co. Ltd. 21,000 262,086
- --------------------------------------------------------------------------------------------------------------------
806,837
- --------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.08%
Asahi Glass Co. Ltd. 22,000 318,077
JS Group Corp. 14,500 304,697
Nippon Sheet Glass Co. Ltd. 12,000 53,297
TOTO Ltd. 11,000 98,461
- --------------------------------------------------------------------------------------------------------------------
774,532
- --------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.47%
Asahi Kasei Corp. 135,000 $ 919,526
Dainippon Ink and Chemicals, Inc. 141,000 613,017
JSR Corp. 184,800 5,498,078
Mitsui Chemicals, Inc. 113,000 854,448
Shin-Etsu Chemical Co. Ltd. 86,800 4,935,476
Showa Denko K.K 41,000 180,001
Sumitomo Chemical Co. Ltd. 41,000 315,963
Ube Industries Ltd. 192,000 527,036
Zeon Corp. 41,900 602,934
- --------------------------------------------------------------------------------------------------------------------
14,446,479
- --------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.06%
Benesse Corp. 7,400 266,212
Nichii Gakkan Co. (1) 10,800 286,331
Secom Co. Ltd. 1,300 67,269
- --------------------------------------------------------------------------------------------------------------------
619,812
- --------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.01%
NEC Fielding Ltd. 5,800 105,562
COMPUTERS & PERIPHERALS - 0.30%
Elpida Memory, Inc. (1)* 13,200 546,882
Fujitsu Ltd. 145,000 1,278,121
NEC Electronics Corp. 51,000 330,421
Toshiba Corp. 127,000 813,068
- --------------------------------------------------------------------------------------------------------------------
2,968,492
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.14%
COMSYS Holdings Corp. 10,000 149,610
JGC Corp. 17,000 360,854
Kurita Water Industries Ltd. 20,700 484,391
Nishimatsu Construction Co. Ltd. (1) 34,000 162,312
Obayashi Corp. 26,000 209,011
Taisei Corp. 10,000 50,978
- --------------------------------------------------------------------------------------------------------------------
1,417,156
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.03%
Taiheiyo Cement Corp. 79,000 319,893
DIVERSIFIED FINANCIALS - 2.32%
ACOM Co. Ltd. 7,300 418,192
Aeon Credit Service Co. Ltd. 49,700 4,448,659
Aiful Corp. 8,500 573,889
Daiwa Securities Group, Inc. 108,000 1,267,772
Hitachi Capital Corp. 2,100 40,101
Hokuhoku Financial Group, Inc. 94,000 444,738
Mitsui Trust Holdings, Inc. 1,000 14,773
Mizuho Financial Group, Inc. 283 2,316,014
</Table>
136
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
JAPAN - (CONTINUED)
Diversified Financials (concluded)
Nomura Holdings Co. Ltd. 358,600 $ 7,000,503
Orix Corp. 24,050 6,222,390
Promise Co. Ltd. 300 17,391
- --------------------------------------------------------------------------------------------------------------------
22,764,422
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.15%
Nippon Telegraph & Telephone Corp. (NTT) 322 1,493,270
ELECTRIC UTILITIES - 0.31%
Chubu Electric Power Co., Inc. 32,500 793,764
Kyushu Electric Power Co., Inc. 18,900 430,186
Tohoku Electric Power Co., Inc. 3,700 79,643
Tokyo Electric Power Co., Inc. 69,400 1,745,280
- --------------------------------------------------------------------------------------------------------------------
3,048,873
- --------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.83%
Fanuc Ltd. 15,100 1,329,721
Fujikura Ltd. 24,200 239,308
Mitsubishi Electric Corp. 147,000 1,196,752
Nitto Denko Corp. 9,900 838,046
Sumitomo Electric Industries Ltd. 274,900 4,558,037
- --------------------------------------------------------------------------------------------------------------------
8,161,864
- --------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.73%
Alps Electric Co. Ltd. 34,300 484,215
Casio Computer Co. Ltd. 5,200 91,318
Citizen Watch Co. Ltd. 32,600 289,580
Hirose Electric Co. Ltd. 1,000 151,826
Hitachi Chemical Co. Ltd. 2,900 89,740
Hitachi Ltd. 471,000 3,320,549
Hoya Corp. 11,300 452,751
Keyence Corp. 800 219,940
Kyocera Corp. 12,000 1,069,008
Nidec Corp. 1,800 164,955
Nippon Electric Glass Co., Ltd. 4,000 105,366
Omron Corp. 1,800 42,428
Rohm Co. Ltd. 1,000 108,094
TDK Corp. 7,300 528,341
- --------------------------------------------------------------------------------------------------------------------
7,118,111
- --------------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.09%
FamilyMart Co. Ltd. 1,900 63,655
Seven & I Holdings Co. Ltd.* 13,700 579,276
York-Benimaru Co. Ltd. 5,500 197,391
- --------------------------------------------------------------------------------------------------------------------
840,322
- --------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.08%
Ajinomoto Co., Inc. 17,000 176,514
Katokichi Co., Ltd. 7,500 $ 51,788
Yakult Honsha Co. Ltd. (1) 26,100 570,705
- --------------------------------------------------------------------------------------------------------------------
799,007
- --------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.07%
Tokyo Gas Co. Ltd. 138,000 641,149
HEALTH CARE EQUIPMENT & SUPPLIES - 0.03%
Olympus Corp. 6,000 158,561
Terumo Corp. 3,300 94,242
- --------------------------------------------------------------------------------------------------------------------
252,803
- --------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.05%
MEDICEO Holdings Co., Ltd. 5,200 87,328
Suzuken Co. Ltd. 12,100 405,379
- --------------------------------------------------------------------------------------------------------------------
492,707
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 1.26%
Daito Trust Construction Co., Ltd. 81,300 3,811,858
Daiwa House Industry Co. Ltd. 16,000 268,701
Funai Electric Co., Ltd. 1,600 168,859
Matsushita Electric Industrial Co. Ltd. 166,000 3,608,542
Matsushita Electric Works, Ltd. 10,000 112,186
Nintendo Co. Ltd. 10,000 1,371,638
Sekisui House Ltd. (1) 44,000 685,666
Sharp Corp. 57,000 1,042,283
Sony Corp. 19,800 962,107
Sumitomo Forestry Co. Ltd. 27,000 292,315
- --------------------------------------------------------------------------------------------------------------------
12,324,155
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.10%
Kao Corp. 32,000 922,041
Uni-Charm Corp. 600 28,336
- --------------------------------------------------------------------------------------------------------------------
950,377
- --------------------------------------------------------------------------------------------------------------------
INSURANCE - 1.04%
Millea Holdings, Inc. 230 4,411,577
Mitsui Sumitomo Insurance Co. Ltd. 413,000 5,069,861
NIPPONKOA Insurance Co. Ltd. 53,000 448,651
Sompo Japan Insurance, Inc. 21,000 298,606
- --------------------------------------------------------------------------------------------------------------------
10,228,695
- --------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.01%
Rakuten, Inc. 93 79,281
INTERNET SOFTWARE & SERVICES - 0.06%
Softbank Corp. (1) 16,200 545,501
IT CONSULTING & SERVICES - 0.09%
CSK Corp. 16,400 746,566
Itochu Techno-Science Corp. 3,900 167,231
- --------------------------------------------------------------------------------------------------------------------
913,797
- --------------------------------------------------------------------------------------------------------------------
</Table>
137
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
JAPAN - (CONTINUED)
LEISURE EQUIPMENT & PRODUCTS - 0.10%
Konica Minolta Holdings, Inc. 73,500 $ 823,942
NAMCO BANDAI Holdings, Inc. 8,600 129,178
Sega Sammy Holdings, Inc. 600 21,533
- --------------------------------------------------------------------------------------------------------------------
974,653
- --------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.86%
Amada Co., Ltd. 25,000 226,546
Daikin Industries Ltd. 16,300 534,973
Komatsu Ltd. 19,000 350,667
Kubota Corp. 111,000 1,057,909
Minebea Co. Ltd. 58,000 347,590
Mitsubishi Heavy Industries Ltd. 32,000 144,853
SMC Corp. 1,800 275,743
THK Co. Ltd. 174,900 5,531,554
- --------------------------------------------------------------------------------------------------------------------
8,469,835
- --------------------------------------------------------------------------------------------------------------------
MARINE - 0.14%
Mitsubishi Logistics Corp. 27,000 461,489
Mitsui OSK Lines Ltd. 98,000 888,061
- --------------------------------------------------------------------------------------------------------------------
1,349,550
- --------------------------------------------------------------------------------------------------------------------
MEDIA - 0.01%
Nippon Television Network Corp. (1) 700 97,686
METALS & MINING - 0.41%
Dowa Mining Co. Ltd. 6,000 70,330
Hitachi Metals Ltd. 19,000 222,548
JFE Holdings, Inc. 27,600 990,546
Kobe Steel Ltd. 126,000 431,797
Mitsubishi Materials Corp. (1) 76,000 393,265
Mitsui Mining & Smelting Co. Ltd. 50,000 395,550
Nippon Steel Corp. 321,000 1,187,622
Nisshin Steel Co. Ltd. 52,000 176,872
Sumitomo Metal Industries Ltd. 42,000 170,428
- --------------------------------------------------------------------------------------------------------------------
4,038,958
- --------------------------------------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 0.75%
Aeon Co. Ltd. 195,000 5,136,610
Daimaru, Inc. 19,000 295,435
Hankyu Department Stores (1) 58,000 561,681
Isetan Co. Ltd. 11,700 255,833
Marui Co. Ltd. 27,200 499,689
Ryohin Keikaku Co. Ltd. 1,800 141,324
Takashimaya Co. Ltd. (1) 25,000 391,287
UNY Co. Ltd. 4,000 62,640
- --------------------------------------------------------------------------------------------------------------------
7,344,499
- --------------------------------------------------------------------------------------------------------------------
OFFICE ELECTRONICS - 1.10%
Canon, Inc. 171,900 $ 10,375,107
Ricoh Co. Ltd. 22,000 377,904
- --------------------------------------------------------------------------------------------------------------------
10,753,011
- --------------------------------------------------------------------------------------------------------------------
OIL & GAS - 0.14%
Nippon Mining Holdings, Inc. 73,000 599,284
Nippon Oil Corp. 92,000 730,165
- --------------------------------------------------------------------------------------------------------------------
1,329,449
- --------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.01%
OJI Paper Co. Ltd. 21,000 122,629
PERSONAL PRODUCTS - 0.06%
Shiseido Co. Ltd. 30,000 575,423
PHARMACEUTICALS - 2.31%
Astellas Pharmaceutical Co. Ltd. 18,400 760,752
Chugai Pharmaceutical Co. Ltd. 40,200 815,617
Daiichi Sankyo Co. Ltd. 58,900 1,220,127
Eisai Co. Ltd. 100,700 4,300,814
Kyowa Hakko Kogyo Co. Ltd. 38,000 302,886
Mitsubishi Chemical Holdings Corp. 88,000 562,636
Takeda Pharmaceutical Co. 260,000 14,717,190
- --------------------------------------------------------------------------------------------------------------------
22,680,022
- --------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.22%
Mitsubishi Estate Co. Ltd. 67,000 1,556,413
Mitsui Fudosan Co. Ltd. 17,000 357,956
NTT Urban Development Corp. 23 179,600
Sumitomo Realty & Development Co. Ltd. 4,000 90,704
- --------------------------------------------------------------------------------------------------------------------
2,184,673
- --------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 1.05%
Central Japan Railway Co. 129 1,319,637
East Japan Railway Co. 213 1,479,860
Tokyu Corp. 631,000 4,410,895
West Japan Railway Co. 748 3,079,869
- --------------------------------------------------------------------------------------------------------------------
10,290,261
- --------------------------------------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.07%
Advantest. Corp. 3,400 417,373
Tokyo Electron Ltd. 4,200 321,879
- --------------------------------------------------------------------------------------------------------------------
739,252
- --------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.03%
Capcom Co. Ltd. (1) 12,800 141,744
Fuji Soft ABC, Inc. 4,500 150,377
- --------------------------------------------------------------------------------------------------------------------
292,121
- --------------------------------------------------------------------------------------------------------------------
</Table>
138
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
JAPAN - (CONCLUDED)
SPECIALTY RETAIL - 0.07%
Autobacs Seven Co. Ltd. 3,500 $ 179,020
Nitori Co., Ltd. 2,350 249,414
Shimamura Co. Ltd. 1,900 241,013
- --------------------------------------------------------------------------------------------------------------------
669,447
- --------------------------------------------------------------------------------------------------------------------
TEXTILES & APPAREL - 0.24%
Onward Kashiyama Co. Ltd. 127,000 2,376,412
TOBACCO - 0.08%
Japan Tobacco, Inc. 49 760,240
TRADING COMPANIES & DISTRIBUTORS - 0.32%
Itochu Corp. 127,000 1,078,317
Marubeni Corp. 71,000 378,893
Mitsubishi Corp. 14,100 329,347
Mitsui & Co. Ltd. 24,700 355,218
Sumitomo Corp. 73,000 998,806
- --------------------------------------------------------------------------------------------------------------------
3,140,581
- --------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.81%
KDDI Corp. 1,193 6,305,443
NTT DoCoMo, Inc. 1,023 1,656,963
- --------------------------------------------------------------------------------------------------------------------
7,962,406
- --------------------------------------------------------------------------------------------------------------------
Total Japan Common Stocks 223,338,370
- --------------------------------------------------------------------------------------------------------------------
LUXEMBOURG - 0.09%
MARINE - 0.09%
Stolt-Nielsen SA 25,400 855,245
NETHERLANDS - 3.72%
AEROSPACE & DEFENSE - 0.01%
European Aeronautic Defense and Space Co.* 1,818 71,245
BANKS - 0.28%
ABN AMRO Holdings N.V 100,693 2,795,859
CHEMICALS - 0.21%
Akzo Nobel N.V.* 23,492 1,137,284
DSM NV 21,080 943,157
- --------------------------------------------------------------------------------------------------------------------
2,080,441
- --------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.07%
Buhrmann N.V.* 44,348 693,018
CONSTRUCTION & ENGINEERING - 0.04%
Koninklijke BAM Groep N.V 4,211 377,634
DIVERSIFIED FINANCIALS - 1.24%
ING Groep N.V 339,851 12,128,922
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.06%
Koninklijke (Royal) KPN N.V 63,304 611,544
FOOD PRODUCTS - 0.16%
Koninklijke Wessanen N.V 42,913 $ 673,201
Unilever N.V 12,572 882,239
- --------------------------------------------------------------------------------------------------------------------
1,555,440
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.82%
Koninklijke (Royal) Philips Electronics N.V.* 237,443 8,015,329
INSURANCE - 0.08%
Aegon N.V 46,906 758,071
MEDIA - 0.59%
Reed Elsevier N.V.* 413,310 5,810,841
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.02%
STMicroelectronics N.V.* 10,608 195,933
TRADING COMPANIES & DISTRIBUTORS - 0.14%
Hagemeyer N.V. (1)* 388,117 1,381,847
- --------------------------------------------------------------------------------------------------------------------
Total Netherlands Common Stocks 36,476,124
- --------------------------------------------------------------------------------------------------------------------
NEW ZEALAND - 0.51%
CONSTRUCTION MATERIALS - 0.01%
Fletcher Building Ltd. 27,628 142,829
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.50%
Telecom Corp. of New Zealand Ltd. 1,249,032 4,853,580
- --------------------------------------------------------------------------------------------------------------------
Total New Zealand Common Stocks 4,996,409
- --------------------------------------------------------------------------------------------------------------------
NORWAY - 0.62%
BEVERAGES - 0.09%
Orkla ASA 21,657 862,686
ENERGY EQUIPMENT & SERVICES - 0.33%
Petroleum Geo-Services ASA* 91,977 3,304,348
OIL & GAS - 0.15%
Statoil ASA 52,875 1,454,488
TRANSPORTATION SERVICES - 0.05%
Bergesen Worldwide Gas ASA* 36,238 509,312
- --------------------------------------------------------------------------------------------------------------------
Total Norway Common Stocks 6,130,834
- --------------------------------------------------------------------------------------------------------------------
PORTUGAL - 0.21%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.11%
Portugal Telecom SGPS SA 103,341 1,037,247
ELECTRIC UTILITIES - 0.10%
Electricidade de Portugal SA 299,407 985,964
- --------------------------------------------------------------------------------------------------------------------
Total Portugal Common Stocks 2,023,211
- --------------------------------------------------------------------------------------------------------------------
SINGAPORE - 1.40%
AEROSPACE & DEFENSE - 0.01%
Singapore Technologies Engineering Ltd. 72,000 132,717
</Table>
139
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
SINGAPORE - (CONCLUDED)
AIRLINES - 0.02%
Singapore Airlines Ltd. 22,000 $ 192,590
BANKS - 0.66%
DBS Group Holdings Ltd. 45,000 454,966
Oversea-Chinese Banking Corp. 1,337,800 5,608,187
United Overseas Bank Ltd. 40,000 357,561
- --------------------------------------------------------------------------------------------------------------------
6,420,714
- --------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.01%
Fraser and Neave Ltd. 12,000 139,079
CONSTRUCTION & ENGINEERING - 0.01%
SembCorp Industries Ltd. 53,580 97,772
DIVERSIFIED FINANCIALS - 0.01%
Keppel Corp. Ltd. 13,000 104,987
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.32%
Singapore Telecommunications Ltd. (1) 2,030,860 3,180,066
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.02%
Venture Corp. Ltd. 22,000 181,740
HOTELS, RESTAURANTS & LEISURE - 0.00%
United Overseas Land Ltd. 100 171
MEDIA - 0.02%
Singapore Press Holdings Ltd. 72,750 192,852
OIL & GAS - 0.27%
Singapore Petroleum Co. Ltd. (1) 769,000 2,631,126
REAL ESTATE - 0.05%
CapitaLand Ltd. 85,000 207,509
City Developments Ltd. 27,000 142,316
Keppel Land Ltd. 58,000 135,873
- --------------------------------------------------------------------------------------------------------------------
485,698
- --------------------------------------------------------------------------------------------------------------------
Total Singapore Common Stocks 13,759,512
- --------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA - 0.30%
OIL & GAS - 0.30%
Sasol Ltd. 72,436 2,976,576
SOUTH KOREA - 0.65%
BANKS - 0.35%
Kookmin Bank, ADR 42,628 3,399,157
METALS & MINING - 0.30%
POSCO ADR 51,600 2,961,324
- --------------------------------------------------------------------------------------------------------------------
Total South Korea Common Stocks 6,360,481
- --------------------------------------------------------------------------------------------------------------------
SPAIN - 4.32%
BANKS - 1.64%
Banco Bilbao Vizcaya Argentaria SA (1) 379,007 $ 7,654,344
Banco Santander Central Hispano SA (1) 583,992 8,402,109
- --------------------------------------------------------------------------------------------------------------------
16,056,453
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.35%
Telefonica SA 866,737 13,228,381
ELECTRIC UTILITIES - 0.94%
Iberdrola SA 323,932 9,222,653
GAS UTILITIES - 0.02%
Gas Natural SDG, SA (1) 6,537 188,895
IT CONSULTING & SERVICES - 0.01%
Indra Sistemas SA 6,525 126,148
METALS & MINING - 0.00%
Acerinox SA 2,217 35,614
OIL & GAS - 0.20%
Repsol YPF SA 74,377 2,016,359
SPECIALTY RETAIL - 0.14%
Inditex SA 39,167 1,345,476
TOBACCO - 0.02%
Altadis, SA 4,811 199,995
- --------------------------------------------------------------------------------------------------------------------
Total Spain Common Stocks 42,419,974
- --------------------------------------------------------------------------------------------------------------------
SWEDEN - 2.64%
BANKS - 0.18%
ForeningsSparbanken AB (Swedbank)* 36,049 1,027,720
Svenska Handelsbanken, Series A 32,162 791,969
- --------------------------------------------------------------------------------------------------------------------
1,819,689
- --------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.75%
Telefonaktiebolaget LM Ericsson (1) 2,044,966 7,378,369
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.61%
TeliaSonera AB 1,047,433 5,958,455
MACHINERY - 0.13%
Atlas Copco AB, A Shares 52,637 1,237,237
MEDIA - 0.06%
Eniro AB 45,866 597,929
METALS & MINING - 0.70%
AB SKF, B Shares 487,168 6,832,066
PAPER & FOREST PRODUCTS - 0.15%
Svenska Cellulosa AB 35,570 1,482,454
SPECIALTY RETAIL - 0.06%
Hennes & Mauritz AB 16,777 617,476
- --------------------------------------------------------------------------------------------------------------------
Total Sweden Common Stocks 25,923,675
- --------------------------------------------------------------------------------------------------------------------
</Table>
140
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
SWITZERLAND - 4.24%
BANKS - 1.31%
Credit Suisse Group (1)* 220,278 $ 12,862,257
CHEMICALS - 0.03%
Ciba Specialty Chemicals AG 3,438 218,363
Clariant AG* 7,025 106,052
- --------------------------------------------------------------------------------------------------------------------
324,415
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.19%
Holcim Ltd. 24,438 1,849,409
ELECTRICAL EQUIPMENT - 0.46%
ABB Ltd.* 418,329 4,548,299
FOOD PRODUCTS - 0.52%
Nestle SA 17,339 5,085,944
HOTELS, RESTAURANTS & LEISURE - 0.02%
Kuoni Reisen Holding AG* 367 171,666
INSURANCE - 0.37%
Swiss Re* 49,072 3,648,397
INSURANCE-MULTILINE - 0.25%
Zurich Financial Services AG* 11,230 2,459,541
MACHINERY - 0.01%
Georg Fischer AG* 282 105,823
MEDICAL PRODUCTS - 0.04%
Synthes, Inc. 3,205 383,813
PHARMACEUTICALS - 0.80%
Novartis AG (1) 68,227 3,746,361
Roche Holdings AG 800 138,918
Roche Holding Genussehein AG 24,980 3,946,936
- --------------------------------------------------------------------------------------------------------------------
7,832,215
- --------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.24%
Compagnie Financiere Richemont AG 50,772 2,309,352
- --------------------------------------------------------------------------------------------------------------------
Total Switzerland Common Stocks 41,581,131
- --------------------------------------------------------------------------------------------------------------------
TAIWAN - 0.74%
COMPUTERS & PERIPHERALS - 0.53%
High Tech Computer Corp. 245,000 5,201,682
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.21%
Chunghwa Telecom Co. Ltd., ADR 110,000 2,048,200
- --------------------------------------------------------------------------------------------------------------------
Total Taiwan Common Stocks 7,249,882
- --------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM - 22.70%
AEROSPACE & DEFENSE - 0.05%
BAE Systems PLC 60,647 449,905
AUTO COMPONENTS - 0.28%
GKN PLC 525,871 $ 2,778,505
BANKS - 4.39%
Barclays PLC 338,054 3,614,399
HBOS PLC 606,333 10,662,609
HSBC Holdings PLC 443,014 7,361,053
Lloyds TSB Group PLC 876,419 7,943,860
Royal Bank of Scotland Group PLC 437,051 13,528,728
- --------------------------------------------------------------------------------------------------------------------
43,110,649
- --------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.13%
Diageo PLC 74,834 1,113,629
SABMiller PLC 8,239 167,678
- --------------------------------------------------------------------------------------------------------------------
1,281,307
- --------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.02%
Pilkington PLC 86,101 238,951
CHEMICALS - 0.53%
BOC Group PLC 170,927 4,506,449
Imperial Chemical Industries PLC 101,090 655,963
- --------------------------------------------------------------------------------------------------------------------
5,162,412
- --------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.48%
Brambles Industries PLC 601,568 4,352,992
Hays PLC 151,288 353,248
- --------------------------------------------------------------------------------------------------------------------
4,706,240
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.02%
AMEC PLC 28,652 192,164
DIVERSIFIED FINANCIALS - 0.11%
3i Group PLC 14,785 241,194
Man Group PLC 23,932 870,233
- --------------------------------------------------------------------------------------------------------------------
1,111,427
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.07%
BT Group PLC 190,026 694,705
ELECTRIC UTILITIES - 0.24%
International Power PLC 273,082 1,317,766
Scottish & Southern Energy PLC 52,250 993,664
- --------------------------------------------------------------------------------------------------------------------
2,311,430
- --------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.08%
Cookson Group PLC* 28,819 239,939
Premier Farnell PLC 152,063 562,005
- --------------------------------------------------------------------------------------------------------------------
801,944
- --------------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.94%
Boots Group PLC (1) 426,235 4,822,606
Premier Foods PLC 84,626 465,951
</Table>
141
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM - (CONTINUED)
FOOD & DRUG RETAILING (CONCLUDED)
RHM PLC* 132,948 $ 644,501
Tesco PLC 582,802 3,297,037
- --------------------------------------------------------------------------------------------------------------------
9,230,095
- --------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.88%
Cadbury Schweppes PLC 31,083 305,237
Tate & Lyle PLC 32,480 332,824
Unilever PLC 761,722 8,008,655
- --------------------------------------------------------------------------------------------------------------------
8,646,716
- --------------------------------------------------------------------------------------------------------------------
GAMING - 0.01%
PartyGaming PLC* 41,144 93,873
GAS UTILITIES - 0.02%
Centrica PLC 29,958 142,165
HOTELS, RESTAURANTS & LEISURE - 0.71%
Compass Group PLC 170,797 673,782
Enterprise Inns PLC 34,209 562,326
Intercontinental Hotels Group PLC 328,558 5,061,806
Punch Taverns PLC 36,340 559,859
Rank Group PLC 18,439 88,322
- --------------------------------------------------------------------------------------------------------------------
6,946,095
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.03%
Taylor Woodrow PLC 44,343 307,656
HOUSEHOLD PRODUCTS - 0.12%
Reckitt Benckiser PLC 36,058 1,184,156
INDUSTRIAL CONGLOMERATES - 0.17%
Smiths Group PLC 25,067 442,374
Tomkins PLC 228,794 1,248,547
- --------------------------------------------------------------------------------------------------------------------
1,690,921
- --------------------------------------------------------------------------------------------------------------------
INSURANCE - 1.70%
Aviva PLC 378,499 4,851,481
Legal & General Group PLC 11,902 26,520
Old Mutual PLC 1,477,742 5,060,634
Prudential PLC 645,947 6,550,091
Resolution PLC 12,066 137,915
- --------------------------------------------------------------------------------------------------------------------
16,626,641
- --------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.03%
Gus PLC 17,446 320,606
IT CONSULTING & SERVICES - 0.03%
LogicaCMG PLC 85,253 275,272
MEDIA - 0.30%
British Sky Broadcasting Group PLC 92,868 802,931
Emap PLC 36,124 543,999
ITV PLC 381,851 735,356
Johnston Press PLC 39,568 $ 334,007
Trinity Mirror PLC 50,546 550,318
- --------------------------------------------------------------------------------------------------------------------
2,966,611
- --------------------------------------------------------------------------------------------------------------------
METALS & MINING - 1.44%
Anglo American PLC 70,084 2,693,074
BHP Billiton PLC 326,476 6,031,612
Corus Group PLC 134,292 166,636
Johnson Matthey PLC 8,421 218,272
Rio Tinto PLC 93,131 4,750,043
Vedanta Resources PLC 16,137 278,178
- --------------------------------------------------------------------------------------------------------------------
14,137,815
- --------------------------------------------------------------------------------------------------------------------
MULTI-LINE RETAIL - 0.08%
Next PLC 26,620 820,696
MULTI-UTILITIES - 0.28%
National Grid PLC 263,603 2,698,804
OIL & GAS - 5.43%
BG Group PLC 696,233 7,865,094
BP PLC 2,327,327 27,988,505
Royal Dutch Shell PLC, A Shares (1)++ 147,756 5,028,468
Royal Dutch Shell PLC, A Shares+++ 252,923 8,611,646
Royal Dutch Shell PLC, B Shares 105,968 3,800,501
- --------------------------------------------------------------------------------------------------------------------
53,294,214
- --------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 2.72%
Astra Zeneca PLC 70,831 3,429,944
GlaxoSmithKline PLC 909,762 23,273,531
- --------------------------------------------------------------------------------------------------------------------
26,703,475
- --------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.04%
Berkeley Group Holdings PLC* 1,913 37,708
Slough Estates PLC 29,611 311,590
- --------------------------------------------------------------------------------------------------------------------
349,298
- --------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.03%
Sage Group PLC 65,336 309,469
SPECIALTY RETAIL - 0.05%
Travis Perkins PLC 20,062 527,145
TOBACCO - 0.21%
British America Tobacco PLC 75,874 1,710,193
Imperial Tobacco Group PLC 10,971 326,331
- --------------------------------------------------------------------------------------------------------------------
2,036,524
- --------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.42%
Wolseley PLC 172,871 4,164,054
</Table>
142
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM - (CONCLUED)
WATER UTILITIES - 0.08%
Northumbrian Water Group PLC 106,078 $ 457,628
Pennon Group PLC 14,163 302,352
- --------------------------------------------------------------------------------------------------------------------
759,980
- --------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.58%
Vodafone Group PLC 2,689,219 5,645,258
- --------------------------------------------------------------------------------------------------------------------
Total United Kingdom Common Stocks 222,717,178
- --------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost - $753,697,428) 963,437,630
- --------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 0.20%
GERMANY - 0.20%
AUTOMOBILES - 0.06%
Volkswagen AG 13,606 586,272
HOUSEHOLD PRODUCTS - 0.06%
Henkel KGaA* 5,393 603,952
MEDIA - 0.08%
ProSieben SAT.1 Media AG 35,160 803,224
- --------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks (cost - $1,638,703) 1,993,448
- --------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANY - 0.04%
AUSTRALIA - 0.04%
REAL ESTATE - 0.04%
Macquarie Infrastructure Group (cost - $364,160) 137,694 $ 368,555
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
WARRANTS - 0.00%
SINGAPORE - 0.00%
Real Estate - 0.00%
City Developments Ltd., strike price $2.50, expires 05/10/06* (cost - $0) 2,300 8,578
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
RIGHTS - 0.00%
ITALY - 0.00%
DIVERSIFIED FINANCIALS - 0.00%
3 Italia SpA Assured Ent, expires 01/17/06* (cost - $0) 469 0
</Table>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
- --------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATION@ - 0.05%
$ 480 U.S. Treasury Bills~ (cost - $475,183) 04/27/06 3.375% 475,183
REPURCHASE AGREEMENT - 1.46%
14,374 Repurchase Agreement dated 01/31/06 with State Street
Bank & Trust Co., collateralized by $11,649,625 U.S.
Treasury Bills, zero coupon due 04/13/06 to 05/25/06
and $3,131,535 U.S. Treasury Notes, 2.500% due
05/31/06 (value - $14,661,813); proceeds: $14,375,597
(cost - $14,374,000) 02/01/06 4.000 14,374,000
<Caption>
NUMBER OF
SHARES
(000)
- --------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 14.07%
MONEY MARKET FUNDS+ - 6.81%
10,951 AIM Liquid Assets Portfolio 4.350 10,950,773
14 AIM Prime Portfolio 4.346 13,529
6 Barclays Prime Money Market Fund 4.303 6,265
# 0 BlackRock Provident Institutional TempFund 4.318 361
1 Scudder Money Market Series 4.247 854
55,856 UBS Private Money Market Fund LLC** 4.347 55,856,386
- --------------------------------------------------------------------------------------------------------------------
Total Money Market Funds (cost - $66,828,168) 66,828,168
- --------------------------------------------------------------------------------------------------------------------
</Table>
143
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 7.26%
$ 41,366 Repurchase Agreement dated 01/31/06 with Deutsche Bank
Securities, Inc., collateralized by $42,266,000
Federal Home Loan Mortgage Corp. obligations, 4.625%
due 02/21/08, (value - $42,194,071); proceeds:
$41,370,925 02/01/06 4.440% $ 41,365,823
29,865 Repurchase Agreement dated 01/31/06 with Merrill Lynch
& Co., collateralized by $30,470,000 Federal Farm
Credit Bank obligations, 4.330% due 02/01/07; (value
- $30,466,952); proceeds: $29,868,552 02/01/06 4.430% $ 29,864,877
- --------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost - $71,230,700) 71,230,700
- --------------------------------------------------------------------------------------------------------------------
Total Investments of Cash Collateral from Securities Loaned
(cost - $138,058,868) 138,058,868
- --------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $908,608,342) - 114.02% 1,118,716,262
Liabilities in excess of other assets - (14.02)% (137,604,560)
- --------------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% $ 981,111,702
- --------------------------------------------------------------------------------------------------------------------
</Table>
* Non-income producing security.
(1) Security, or portion thereof, was on loan at January 31, 2006.
(2) Security is traded on the Milan Exchange.
(3) Security is traded on the Xetra (Exchange Electronic Trading) Exchange.
+ Interest rates shown reflect yield at January 31, 2006.
++ Security is traded on the London Exchange.
+++ Security is traded on the Netherlands Exchange.
~ Entire amount pledged as collateral for futures transactions.
~~ Non-convertible savings shares.
@ Interest rate shown is discount rate at date of purchase.
# Amount represents less than 500 shares.
ADR American Depositary Receipt.
STRIP Separate Trading of Registered Interest and Principal of Securities.
VVPR Verminderde Voorheffing Precompte Reduit (Belgium dividend coupon).
** The table below details the Portfolio's transaction activity in an
affiliated issuer for the six months ended January 31, 2006.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
VALUE AT ENDED ENDED VALUE AT ENDED
SECURITY DESCRIPTION 07/31/05 01/31/06 01/31/06 01/31/06 01/31/06
- -----------------------------------------------------------------------------------------------------------------------
UBS Private Money Market Fund LLC $ 64,652,176 $ 578,864,110 $ 587,659,900 $ 55,856,386 $ 33,564
</Table>
FUTURES CONTRACTS
<Table>
<Caption>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION
CONTRACTS CURRENCY CONTRACTS TO RECEIVE EXCHANGE FOR DATES (DEPRECIATION)
- ----------------------------------------------------------------------------------------------
13 AUD SPI 200 Index Futures $ 1,129,723 March 2006 $ 80,824
24 EUR Dow Jones Euro STOXX 50 Futures 1,077,035 March 2006 2,720
7 GBP FTSE 100 Index Futures 717,782 March 2006 (3,331)
- ----------------------------------------------------------------------------------------------
$ 80,213
- ----------------------------------------------------------------------------------------------
</Table>
144
<Page>
FORWARD FOREIGN CURRENCY CONTRACTS
<Table>
<Caption>
UNREALIZED
CONTRACT TO IN MATURITY APPRECIATION
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------
Euro Dollar 4,460,236 USD 5,418,942 04/07/06 $ (22,054)
Norwegian Krone 17,535,155 USD 2,631,207 04/07/06 (15,509)
Pound Sterling 1,040,528 USD 1,839,226 04/07/06 (12,285)
Pound Sterling 8,257,500 USD 14,761,355 04/28/06 65,560
United States Dollar 2,463,657 CHF 3,123,178 04/07/06 (4,247)
United States Dollar 3,173,356 EUR 2,603,694 04/07/06 2,863
United States Dollar 1,825,731 GBP 1,040,528 04/07/06 25,781
- ------------------------------------------------------------------------------------------------------------------
$ 40,109
- ------------------------------------------------------------------------------------------------------------------
</Table>
CURRENCY TYPE ABBREVIATIONS:
AUD Australian Dollar
EUR Euro Dollar
GBP Great Britain Pounds
CHF Swiss Franc
USD U.S. Dollars
See accompanying notes to financial statements
145
<Page>
UBS PACE SELECT ADVISORS TRUST
UBS PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
PORTFOLIO OF INVESTMENTS - JANUARY 31, 2006 (UNAUDITED)
COMMON STOCKS - 87.17%
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
BRAZIL - 6.27%
BANKS - 0.74%
Unibanco - Uniao de Bancos Brasileiros SA, GDR 28,100 $ 2,366,582
BEVERAGES - 0.05%
Cia Brasileira Bebida 502,200 175,157
ELECTRIC UTILITIES - 0.25%
AES Tiete SA 32,600,000 816,916
INSURANCE - 0.38%
Porto Seguro SA 90,700 1,230,109
METALS & MINING - 1.33%
Companhia Siderurgica Nacional SA 70,600 2,074,274
Companhia Vale do Rio Doce (CVRD), ADR (1) 49,200 2,183,496
- --------------------------------------------------------------------------------------------------------------------
4,257,770
- --------------------------------------------------------------------------------------------------------------------
OIL & GAS - 0.97%
Petroleo Brasileiro SA- Petrobras (1) 32,822 3,101,679
PAPER & FOREST PRODUCTS - 0.84%
Votorantim Celulose e Papel SA, ADR (1) 215,350 2,685,414
RETAIL - 0.91%
Lojas Renner SA 68,800 2,923,689
TRANSPORTATION INFRASTRUCTURE - 0.80%
Companhia de Concessoes Rodoviarias (CCR) 63,000 2,563,291
- --------------------------------------------------------------------------------------------------------------------
Total Brazil Common Stocks 20,120,607
- --------------------------------------------------------------------------------------------------------------------
CHILE - 1.19%
BANKS - 0.73%
Banco Santander Chile SA, ADR (1) 47,300 2,357,905
DIVERSIFIED FINANCIALS - 0.23%
Administradora de Fondos de Pensiones Provida SA 403,178 739,003
WATER UTILITIES - 0.23%
Inversiones Aguas Metropolitanas SA, ADR (2)* 36,000 724,716
- --------------------------------------------------------------------------------------------------------------------
Total Chile Common Stocks 3,821,624
- --------------------------------------------------------------------------------------------------------------------
CHINA - 4.59%
BANKS - 0.50%
China Construction Bank* 4,098,000 1,611,150
BUILDING PRODUCTS - 0.21%
Asia Aluminum Holdings Ltd. 7,046,000 681,190
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.82%
China Telecom Corp. Ltd. 6,936,000 2,615,165
MACHINERY (DIVERSIFIED) - 0.58%
Shanghai Electric Group Co. Ltd.* 4,718,000 1,870,110
METALS & MINING - 0.50%
Aluminum Corp. of China Ltd. (1) 1,752,000 1,614,747
ROAD & RAIL - 0.23%
Guangshen Railway Co. Ltd. 1,964,000 $ 753,169
TECHNOLOGY, HARDWARE & EQUIPMENT - 0.29%
TPV Technology Ltd. 814,000 928,607
TEXTILES & APPAREL - 0.65%
Fountain Set (Holdings) Ltd. 1,404,000 660,578
Texwinca Holdings Ltd. 1,890,000 1,413,039
- --------------------------------------------------------------------------------------------------------------------
2,073,617
- --------------------------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.81%
China Merchants Holdings International Co. Ltd. 306,000 796,777
Zhejiang Expressway Co. Ltd. 2,806,000 1,790,429
- --------------------------------------------------------------------------------------------------------------------
2,587,206
- --------------------------------------------------------------------------------------------------------------------
Total China Common Stocks 14,734,961
- --------------------------------------------------------------------------------------------------------------------
CZECH REPUBLIC - 1.18%
BANKS - 0.46%
Komercni Banka A.S 9,943 1,474,069
MEDIA - 0.54%
Central European Media Enterprises Ltd., Class A (1)* 28,600 1,725,152
TOBACCO - 0.18%
Philip Morris CR A.S 757 591,980
- --------------------------------------------------------------------------------------------------------------------
Total Czech Republic Common Stocks 3,791,201
- --------------------------------------------------------------------------------------------------------------------
EGYPT - 0.45%
WIRELESS TELECOMMUNICATION SERVICES - 0.45%
Egyptian Co. for Mobile Services (MobiNil) 41,245 1,439,177
HONG KONG - 2.00%
AUTOMOBILES - 0.47%
Dongfeng Motor Corp. Ltd.* 4,654,000 1,499,791
DISTRIBUTORS - 0.46%
China Resources Enterprise Ltd. 694,000 1,476,072
OIL & GAS - 0.66%
China Petroleum & Chemical Corp. (Sinopec) 3,478,000 2,118,340
WIRELESS TELECOMMUNICATION SERVICES - 0.41%
Foxconn International Holdings Ltd.* 741,000 1,313,364
- --------------------------------------------------------------------------------------------------------------------
Total Hong Kong Common Stocks 6,407,567
- --------------------------------------------------------------------------------------------------------------------
HUNGARY - 1.15%
BANKS - 0.34%
OTP Bank Rt 20,122 694,086
OTP Bank Rt., ADR (1)(2) 5,800 400,200
- --------------------------------------------------------------------------------------------------------------------
1,094,286
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.45%
Magyar Tavkozlesi Rt. (Matav) 305,584 1,441,802
</Table>
146
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
HUNGARY - (CONCLUDED)
OIL & GAS - 0.36%
MOL Magyar Olaj-es Gazipari Rt. 11,102 $ 1,154,210
- --------------------------------------------------------------------------------------------------------------------
Total Hungary Common Stocks 3,690,298
- --------------------------------------------------------------------------------------------------------------------
INDIA - 2.77%
AUTOMOBILES - 0.53%
Tata Motors Ltd., ADR (1) 106,200 1,705,572
CHEMICALS - 0.35%
Reliance Industries Ltd. 68,800 1,112,884
COMPUTER SOFTWARE & SERVICES - 0.41%
Tata Consultancy Services 34,900 1,321,652
CONSTRUCTION MATERIALS - 0.53%
India Cements Ltd.* 572,000 1,695,583
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.70%
Bharti Tele-Ventures Ltd.* 279,150 2,253,128
ENERGY - 0.02%
Reliance Energy Ventures Ltd.*#(3) 68,800 68,605
FINANCIAL SERVICES - 0.01%
Reliance Capital Ventures Ltd.*#(3) 68,800 33,523
OIL & GAS - 0.00%
Reliance Natural Resources Ltd.*#(3) 68,800 7,796
PHARMACEUTICALS - 0.12%
Ranbaxy Laboratories Ltd., GDR 39,280 362,555
TELECOMMUNICATIONS - 0.10%
Reliance Communication Ventures Ltd*#(3) 68,800 319,637
- --------------------------------------------------------------------------------------------------------------------
Total India Common Stocks 8,880,935
- --------------------------------------------------------------------------------------------------------------------
INDONESIA - 0.56%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.56%
PT Telekomunikasi Indonesia, Series B 2,666,500 1,792,844
ISRAEL - 2.12%
BANKS - 1.49%
Bank Hapoalim Ltd. 622,424 2,858,989
Bank Leumi Le-Israel 507,500 1,905,587
- --------------------------------------------------------------------------------------------------------------------
4,764,576
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.24%
Bezeq Israeli Telecommunication Corp. Ltd.* 573,013 766,631
SOFTWARE - 0.39%
Retalix Ltd.* 48,900 1,261,620
- --------------------------------------------------------------------------------------------------------------------
Total Israel Common Stocks 6,792,827
- --------------------------------------------------------------------------------------------------------------------
KAZAKHSTAN - 0.32%
METALS & MINING - 0.32%
KazakhGold Group Ltd., GDR* 38,800 $ 1,028,200
LEBANON - 0.47%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.47%
Investcom LLC, GDR* 85,100 1,498,611
MALAYSIA - 5.04%
BANKS - 1.51%
Commerce Asset-Holding Berhad 913,700 1,352,096
Hong Leong Bank Berhad 1,392,800 1,875,387
Public Bank Berhad 916,600 1,637,440
- --------------------------------------------------------------------------------------------------------------------
4,864,923
- --------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES - 0.65%
Tanjong PLC 526,100 2,076,065
ELECTRIC UTILITIES - 0.27%
Tenaga Nasional Berhad 306,000 864,845
MARINE - 0.73%
Malaysia International Shipping Co. Berhad 895,000 2,350,553
TRANSPORTATION INFRASTRUCTURE - 0.64%
PLUS (Projek Lebuhraya Utara Selatan) Expressways Berhad 2,549,400 2,052,843
WIRELESS TELECOMMUNICATION SERVICES - 1.24%
Maxis Communications Berhad 1,731,200 3,969,689
- --------------------------------------------------------------------------------------------------------------------
Total Malaysia Common Stocks 16,178,918
- --------------------------------------------------------------------------------------------------------------------
MEXICO - 6.82%
BANKS - 0.85%
Grupo Financiero Banorte SA de C.V., Series O 1,139,148 2,717,064
BEVERAGES - 0.60%
Grupo Continential SA 306,700 514,129
Grupo Modelo, SA de C.V., Series C 382,600 1,414,662
- --------------------------------------------------------------------------------------------------------------------
1,928,791
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 1.67%
Cemex SA de C.V., ADR (1) 80,949 5,341,015
HOUSEHOLD PRODUCTS - 0.76%
Kimberly-Clark de Mexico SA de C.V., Series A 666,400 2,420,603
INDUSTRIAL CONGLOMERATES - 0.35%
Grupo Carso SA de C.V., Series A1 411,096 1,130,174
MEDIA - 0.74%
Grupo Televisa SA, ADR 28,500 2,381,175
METALS & MINING - 0.33%
Industrias CH, SA, Series B* 437,000 1,065,343
</Table>
147
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
MEXICO - (CONCLUDED)
MULTI-LINE RETAIL - 0.43%
Wal-Mart de Mexico SA de C.V., Series V (1) 238,900 $ 1,392,506
TRANSPORTATION INFRASTRUCTURE - 0.24%
Grupo Aeroportuario del Sureste SA de C.V., ADR (1) 25,000 780,000
WIRELESS TELECOMMUNICATION SERVICES - 0.85%
America Movil SA de C.V., ADR, Series L 80,388 2,711,487
- --------------------------------------------------------------------------------------------------------------------
Total Mexico Common Stocks 21,868,158
- --------------------------------------------------------------------------------------------------------------------
MOROCCO - 0.38%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.38%
Maroc Telecom (1) 97,789 1,205,993
PANAMA - 0.39%
BANKS - 0.39%
Banco Latinoamericano de Exportaciones SA, Class E 71,800 1,256,500
PERU - 0.40%
METALS & MINING - 0.40%
Compania de Minas Buenaventura SA, ADR 45,900 1,272,348
PHILIPPINES - 0.09%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.09%
Philippine Long Distance Telephone Co., ADR 8,400 300,636
POLAND - 0.88%
BANKS - 0.54%
Bank Pekao SA 30,969 1,727,253
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.34%
Telekomunikacja Polska SA 151,561 1,112,630
- --------------------------------------------------------------------------------------------------------------------
Total Poland Common Stocks 2,839,883
- --------------------------------------------------------------------------------------------------------------------
RUSSIA - 4.90%
AUTO MANUFACTURING/SUPPLIERS - 0.35%
JSC Severstal-Avto 54,800 1,117,920
BEVERAGES - 0.23%
Efes Breweries International, GDR* 19,500 735,150
ELECTRIC UTILITIES - 0.47%
RAO Unified Energy System (UES), GDR 30,900 1,507,920
FOOD & DRUG RETAILING - 0.59%
Pyaterochka Holding NV, GDR (1)* 121,789 1,912,087
OIL & GAS - 2.65%
Gazprom, ADR (1) 14,900 1,275,440
LUKOIL, ADR 66,512 5,088,168
NovaTek OAO, GDR* 75,983 2,127,524
- --------------------------------------------------------------------------------------------------------------------
8,491,132
- --------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.61%
Mobile TeleSystems, ADR 52,100 $ 1,952,708
- --------------------------------------------------------------------------------------------------------------------
Total Russia Common Stocks 15,716,917
- --------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA - 11.79%
BANKS - 2.49%
ABSA Group Ltd. 270,092 4,987,754
African Bank Investments Ltd. 639,073 2,992,079
- --------------------------------------------------------------------------------------------------------------------
7,979,833
- --------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.35%
SABMiller PLC 55,700 1,133,592
CONTAINERS & PACKAGING - 0.23%
Nampak Ltd. 263,702 739,819
DIVERSIFIED FINANCIALS - 1.49%
Alexander Forbes Ltd. 614,584 1,648,154
Standard Bank Group Ltd. 231,676 3,134,766
- --------------------------------------------------------------------------------------------------------------------
4,782,920
- --------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.25%
Tiger Brands Ltd. 30,557 806,348
HEALTH CARE EQUIPMENT & SUPPLIES - 0.36%
Aspen Pharmacare Holdings Ltd. 167,644 1,134,319
HOUSEHOLD DURABLES - 0.96%
Steinhoff International Holdings Ltd. 887,288 3,083,800
INDUSTRIAL CONGLOMERATES - 1.67%
Barloworld Ltd. 127,900 2,459,006
Remgro Ltd. 141,680 2,899,302
- --------------------------------------------------------------------------------------------------------------------
5,358,308
- --------------------------------------------------------------------------------------------------------------------
METALS & MINING - 1.63%
Anglo American PLC 42,722 1,653,323
Harmony Gold Mining Co. Ltd.(1)* 151,000 2,759,840
Impala Platinum Holdings Ltd. 4,744 822,048
- --------------------------------------------------------------------------------------------------------------------
5,235,211
- --------------------------------------------------------------------------------------------------------------------
OIL & GAS - 1.26%
Sasol Ltd. 98,372 4,042,351
WIRELESS TELECOMMUNICATION SERVICES - 1.10%
MTN Group Ltd. 338,945 3,529,570
- --------------------------------------------------------------------------------------------------------------------
Total South Africa Common Stocks 37,826,071
- --------------------------------------------------------------------------------------------------------------------
SOUTH KOREA - 15.80%
AUTOMOBILES - 0.31%
Ssangyong Motor Co.* 123,800 998,460
BANKS - 1.02%
Kookmin Bank 41,358 3,290,176
</Table>
148
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
SOUTH KOREA - (CONCLUDED)
BEVERAGES - 0.56%
Hite Brewery Co., Ltd. 13,948 $ 1,785,703
CONSTRUCTION & ENGINEERING - 1.14%
GS Engineering & Construction Corp. 29,880 1,511,578
Hyundai Development Co. 54,160 2,133,499
- --------------------------------------------------------------------------------------------------------------------
3,645,077
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS - 2.37%
Daishin Securities Co. 70,000 1,788,731
Hana Financial Group, Inc.* 76,143 3,733,545
LG Card Co. Ltd.* 37,500 2,087,545
- --------------------------------------------------------------------------------------------------------------------
7,609,821
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.09%
KT Corp. 38,390 1,530,188
KT Corp., ADR 92,500 1,952,675
- --------------------------------------------------------------------------------------------------------------------
3,482,863
- --------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.08%
Korea Electric Power Corp. (KEPCO) 80,700 3,471,777
ELECTRICAL EQUIPMENT - 1.06%
KH Vatec Co. Ltd. 32,363 1,023,243
Kumho Electric, Inc. 33,008 2,374,701
- --------------------------------------------------------------------------------------------------------------------
3,397,944
- --------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.70%
Korea Gas Corp. 73,030 2,259,830
INDUSTRIAL CONGLOMERATES - 0.30%
LG Corp. 26,900 971,819
MULTI-LINE RETAIL - 1.00%
Hyundai Department Store Co. Ltd. 28,400 3,209,040
OIL & GAS - 0.98%
SK Corp. 51,000 3,145,700
RETAIL - 0.34%
Lotte Shopping Co., Ltd., GDR# (2)(3) 52,156 1,078,065
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 3.38%
Hynix Semiconductor, Inc.* 56,020 2,166,118
Samsung Electronics Co. Ltd. 11,306 8,673,032
- --------------------------------------------------------------------------------------------------------------------
10,839,150
- --------------------------------------------------------------------------------------------------------------------
TOBACCO - 0.47%
KT&G Corp. 30,970 1,499,299
- --------------------------------------------------------------------------------------------------------------------
Total South Korea Common Stocks 50,684,724
- --------------------------------------------------------------------------------------------------------------------
TAIWAN - 10.46%
BANKS - 1.07%
Mega Financial Holding Co. Ltd. 3,654,000 2,450,777
Ta Chong Bank Ltd.* 3,630,802 987,711
- --------------------------------------------------------------------------------------------------------------------
3,438,488
- --------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.57%
Taiwan Fertilizer Co. Ltd. 1,478,000 $ 1,820,869
COMPUTERS & PERIPHERALS - 2.56%
Asustek Computer, Inc. 1,579,500 5,161,119
Compal Electronics, Inc. 1,886,077 1,739,760
Foxconn Technology Co. Ltd. 259,900 1,300,272
- --------------------------------------------------------------------------------------------------------------------
8,201,151
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.36%
Taiwan Cement Corp. 1,540,100 1,150,945
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.31%
Chunghwa Telecom Co. Ltd. 1,271,000 2,241,468
Chunghwa Telecom Co. Ltd., ADR 105,400 1,962,548
- --------------------------------------------------------------------------------------------------------------------
4,204,016
- --------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.61%
AU Optronics Corp. 1,341,520 1,948,457
Delta Electronics, Inc. 971,000 2,022,094
Synnex Technology International Corp. 936,200 1,188,510
- --------------------------------------------------------------------------------------------------------------------
5,159,061
- --------------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING - 0.81%
President Chain Store Corp. 1,159,000 2,605,675
HEALTH CARE EQUIPMENT & SUPPLIES - 0.20%
Pihsiang Machinery Manufacturing Co. Ltd. (3) 439,350 645,679
HOUSEHOLD DURABLES - 0.82%
Inventec Appliances Corp. 369,000 2,642,225
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 1.15%
Taiwan Semiconductor Manufacturing Co. Ltd. 1,848,000 3,669,304
- --------------------------------------------------------------------------------------------------------------------
Total Taiwan Common Stocks 33,537,413
- --------------------------------------------------------------------------------------------------------------------
THAILAND - 5.49%
BANKS - 1.12%
Kasikornbank Public Co. Ltd. 611,900 1,131,693
Kasikornbank Public Co. Ltd., NVDR 737,700 1,279,084
Siam City Bank Public Co. Ltd. 598,300 403,426
Siam City Bank Public Co. Ltd., NVDR 1,167,000 771,905
- --------------------------------------------------------------------------------------------------------------------
3,586,108
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.93%
Siam Cement Public Co. Ltd., NVDR 475,100 3,002,173
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.53%
Shin Corp., NVDR 1,369,400 1,697,240
FINANCIAL SERVICES - 0.35%
Phatra Securities Co. Ltd., NVDR* 944,500 1,109,963
</Table>
149
<Page>
<Table>
<Caption>
NUMBER OF
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------
THAILAND - (CONCLUDED)
FOOD PRODUCTS - 0.47%
Thai Union Frozen Products Public Co. Ltd., NVDR (3) 2,013,700 $ 1,525,922
HOME BUILDERS - 0.72%
Land & Houses Public Co. Ltd, NVDR (1) 9,368,200 2,298,133
OIL REFINING, DISTRIBUTION - 0.54%
Thai Oil Public Co. Ltd., NVDR 999,100 1,719,489
WIRELESS TELECOMMUNICATION SERVICES - 0.83%
Advanced Information Services Public Co. Ltd. (1) 1,008,400 2,667,999
- --------------------------------------------------------------------------------------------------------------------
Total Thailand Common Stocks 17,607,027
- --------------------------------------------------------------------------------------------------------------------
TURKEY - 1.66%
AUTOMOBILES - 0.41%
Ford Otomotiv Sanayi A.S 142,069 1,312,565
BANKS - 0.67%
Denizbank A.S.* 218,752 1,871,941
Finansbank A.S.* 51,000 289,663
- --------------------------------------------------------------------------------------------------------------------
2,161,604
- --------------------------------------------------------------------------------------------------------------------
Household Durables - 0.24%
Vestel Elektronik Sanayi ve Ticaret A.S.* 195,503 777,274
WIRELESS TELECOMMUNICATION SERVICES - 0.34%
Turkcell Iletisim Hizmetleri A.S (Turkcell) 156,700 1,073,938
- --------------------------------------------------------------------------------------------------------------------
Total Turkey Common Stocks 5,325,381
- --------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost - $213,688,680) 279,618,821
- --------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 10.56%
BRAZIL - 8.73%
BANKS - 1.73%
Banco Bradesco SA 47,100 1,852,486
Itausa - Investimentos Itau SA 906,000 3,686,257
- --------------------------------------------------------------------------------------------------------------------
5,538,743
- --------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.43%
Cia Brasileira Bebida 3,366,000 1,384,595
CHEMICALS - 0.27%
Ultrapar Participacoes SA 58,540 878,629
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.44%
Brasil Telecom SA 75,350 325
Tele Norte Leste Participacoes SA, ADR (1) 80,300 1,426,128
- --------------------------------------------------------------------------------------------------------------------
1,426,453
- --------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.86%
AES Tiete SA 32,600,000 826,938
Companhia Energetica de Minas Gerais (CEMIG) 39,995,260 1,926,715
- --------------------------------------------------------------------------------------------------------------------
2,753,653
- --------------------------------------------------------------------------------------------------------------------
METALS & MINING - 2.79%
Caemi Mineracao e Metalurgia SA 1,662,000 $ 2,982,884
Companhia Vale do Rio Doce (CVRD), Class A 63,000 2,785,443
Usinas Siderurgicas de Minas Gerais SA (Usiminas), Class A 97,100 3,174,187
- --------------------------------------------------------------------------------------------------------------------
8,942,514
- --------------------------------------------------------------------------------------------------------------------
OIL & GAS - 2.21%
Petroleo Brasileiro SA - Petrobras 126,920 2,696,763
Petroleo Brasileiro SA - Petrobras, ADR (1) 50,828 4,381,374
- --------------------------------------------------------------------------------------------------------------------
7,078,137
- --------------------------------------------------------------------------------------------------------------------
Total Brazil Preferred Stocks 28,002,724
- --------------------------------------------------------------------------------------------------------------------
SOUTH KOREA - 1.83%
AUTOMOBILES - 0.61%
Hyundai Motor Co. 34,630 1,963,677
Semiconductor Equipment & Products - 1.22%
Samsung Electronics Co. Ltd. 6,670 3,913,565
- --------------------------------------------------------------------------------------------------------------------
Total South Korea Preferred Stocks 5,877,242
- --------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks (cost - $17,523,988) 33,879,966
- --------------------------------------------------------------------------------------------------------------------
<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
</Table>
150
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------------------------------------------------------------------------------------------------------------
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 - 1.01%
3,246 Repurchase Agreement dated 01/31/06 with State Street
Bank & Trust Co., collateralized by $2,630,770 U.S.
Treasury Bills, zero coupon due 04/13/06 to 05/25/06
and $707,177 U.S. Treasury Notes, 2.500% due
05/31/06; (value - $3,310,995); proceeds: $3,246,361
(cost - $3,246,000) 02/01/06 4.000 3,246,000
<Caption>
NUMBER OF
SHARES
(000)
- --------------------------------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED - 8.72%
MONEY MARKET FUNDS+ - 4.57%
42 AIM Liquid Assets Portfolio 4.350 41,923
12 AIM Prime Portfolio 4.346 11,874
1 Barclays Prime Money Market Fund 4.303 531
1 BlackRock Provident Institutional TempFund 4.318 733
14,585 UBS Private Money Market Fund LLC** 4.347 14,584,91
- --------------------------------------------------------------------------------------------------------------------
Total Money Market Funds (cost - $14,639,979) 14,639,97
- --------------------------------------------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT
(000)
- --------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 4.15%
$ 8,181 Repurchase Agreement dated 01/31/06 with Deutsche Bank
Securities, Inc., collateralized by $8,492,000
Federal Home Loan Mortgage Corp. obligations, 5.000%
due 01/30/14 (value - $8,344,569); proceeds:
$8,181,535 02/01/06 4.440 8,180,526
5,145 Repurchase Agreement dated 01/31/06 with Merrill Lynch
& Co., collateralized by $5,250,000 Federal Farm
Credit Bank obligations, 4.330% due 02/01/07 (value -
$5,249,475); proceeds: $5,145,510 02/01/06 4.430 5,144,877
- --------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost - $13,325,403) 13,325,403
- --------------------------------------------------------------------------------------------------------------------
Total Investments of Cash Collateral from Securities Loaned
(cost - $27,965,382) 27,965,382
- --------------------------------------------------------------------------------------------------------------------
Total Investments (cost - $262,424,050) - 107.46% 344,710,169
Liabilities in excess of other assets - (7.46)% (23,949,206)
- --------------------------------------------------------------------------------------------------------------------
Net Assets - 100.00% $ 320,760,963
- --------------------------------------------------------------------------------------------------------------------
</Table>
151
<Page>
* Non-income producing security.
(a) Bond interest in default.
(1) Security, or portion thereof, was on loan at January 31, 2006.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities, which represent 0.69% of net assets as of January
31, 2006, are considered liquid and may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
(3) Illiquid securities representing 1.15% of net assets.
+ Interest rates shown reflect yields at January 31, 2006.
# Security is being fair valued by a valuation committee under the direction
of the board of trustees.
ADR American Depositary Receipt.
GDR Global Depositary Receipt.
NVDR Non-Voting Depositary Receipt.
** The table below details the Portfolio's transaction activity in an
affiliated issuer for the six months ended January 31, 2006.
<Table>
<Caption>
INCOME
PURCHASES SALES EARNED FROM
DURING THE DURING THE AFFILIATE FOR
SIX MONTHS SIX MONTHS THE SIX MONTHS
VALUE AT ENDED ENDED VALUE AT ENDED
SECURITY DESCRIPTION 07/31/05 01/31/06 01/31/06 01/31/06 01/31/06
- -----------------------------------------------------------------------------------------------------------------------
UBS Private Money Market Fund LLC $ 22,579,243 $ 114,000,62 $ 121,994,947 $ 14,584,918 $ 23,461
</Table>
See accompanying notes to financial statements
152
<Page>
(This page has been left blank intentionally)
153
<Page>
UBS PACE SELECT ADVISORS TRUST
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 2006 (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 - $266,623,137;
$786,540,545; $457,519,381; $535,010,206;
$245,571,980; $440,402,663; $1,220,049,773;
$924,692,470; $442,746,469; $428,454,267;
$852,751,956 ; $247,839,132, respectively)* $ 266,623,137 $ 778,941,039 $ 453,616,011 $ 532,942,111
Investments in an affiliated security, at value
(cost - $0; $0; $3,189,886; $3,150,036; $0;
$670,729; $11,653,495; $4,053,754; $34,415,630;
$32,228,795; $55,856,386; $14,584,918,
respectively) -- -- 3,189,886 3,150,036
Total investments in securities, at value
(cost - $266,623,137; $786,540,545; $460,709,267;
$538,160,242; $245,571,980; $441,073,392;
$1,231,703,268; $928,746,224; $477,162,099;
$460,683,062; $908,608,342; $262,424,050,
respectively) $ 266,623,137 $ 778,941,039 $ 456,805,897 $ 536,092,147
Cash 952 595 -- 586
Foreign currency, at value (cost - $0; $0;
$4,352,432; $1,837,696; $0; $9,661,898; $0; $0;
$0; $0; $3,891,429; $3,254,665, respectively) -- -- 4,364,706 1,821,485
Receivable from investment manager and
administrator 3,572 -- -- --
Receivable for investments sold -- 212,967,438 14,942,436 13,200,068
Receivable for shares of beneficial interest sold 1,156,345 760,541 355,382 907,659
Receivable for dividends and interest 638,228 2,105,395 3,578,312 3,390,860
Receivable for interest rate swaps, net -- 64,801 -- --
(cost - $0; $141,154; $0; $0; $0; $0; $0;
$0; $0; $0; $0; $0, respectively)
Unrealized appreciation of forward foreign
currency contracts -- -- -- 125,653
Receivable for variation margin -- -- -- --
Receivable for foreign tax reclaim -- -- 4,927 2,540
Other assets 24,175 54,460 50,089 53,889
- ------------------------------------------------------------------------------------------------------------------------------
Total assets 268,446,409 994,894,269 480,101,749 555,594,887
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for shares of beneficial interest
repurchased 2,853,464 1,021,854 718,364 680,684
Dividends payable to shareholders 405,194 -- -- --
Payable to custodian 3,142 17,719 195,485 17,148
Payable for investments purchased -- 446,114,524 24,077,875 27,008,270
Investments sold short, at value
(proceeds - $0; $21,370,703; $6,835,852; $0;
$0; $0; $0; $0; $0; $0; $0; $0, respectively) -- 21,346,864 6,813,750 --
Payable to affiliates -- 331,947 225,375 294,993
Payable for options written, at value -- 146,200 -- 64,090
(premiums received - $0; $508,550; $0;
$245,225; $0; $0; $0; $0; $0; $0; $0; $0,
respectively)
Payable for cash collateral from securities
loaned -- -- 41,641,242 15,158,798
Unrealized depreciation of forward foreign
currency contracts -- -- 95,648 596
Payable for interest sold short -- -- 14,375 --
Payable for variation margin -- -- 7,355 64,690
Payable for swap contracts, net
(proceeds - $0; $0; $0; $1,852,283; $0; $0; $0;
$0; $0; $0; $0; $0, respectively) -- -- -- 2,105,752
Payable for foreign withholding taxes -- -- -- 5,080
Accrued expenses and other liabilities 291,845 256,128 164,078 266,562
- ------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,553,645 469,235,236 73,953,547 45,666,663
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beneficial interest shares of $0.001 par value
(unlimited amount authorized) 264,893,360 535,197,723 455,428,835 523,777,576
Accumulated undistributed (distributions in
excess of) net investment income (loss) -- (547,365) 72,906 182,932
Accumulated net realized gains (losses)
from investments, futures, options written,
short sales, swaps, forward foreign currency
contracts and foreign currency transactions (596) (1,667,905) (45,421,922) (10,880,160)
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 -- (7,323,420) (3,931,617) (3,152,124)
- ------------------------------------------------------------------------------------------------------------------------------
Net assets $ 264,892,764 $ 525,659,033 $ 406,148,202 $ 509,928,224
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
* Includes $0; $0; $45,112,177; $14,630,865; $0; $2,591,421; $92,608,138;
$65,184,113; $72,908,264; $54,393,938; $132,173,772; $26,847,704,
respectively, of investments in securities on loan, at value.
+ Includes restricted cash of $3,544,536 on deposit as initial margin for
futures contracts for UBS PACE Global Fixed Income Investments.
154
<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 - $266,623,137;
$786,540,545; $457,519,381; $535,010,206;
$245,571,980; $440,402,663; $1,220,049,773;
$924,692,470; $442,746,469; $428,454,267;
$852,751,956 ; $247,839,132, respectively)* $ 246,924,873 $ 439,686,042 $ 1,445,568,341 $ 1,080,609,651
Investments in an affiliated security, at value
(cost - $0; $0; $3,189,886; $3,150,036; $0;
$670,729; $11,653,495; $4,053,754; $34,415,630;
$32,228,795; $55,856,386; $14,584,918,
respectively) -- 670,729 11,653,495 4,053,754
Total investments in securities, at value
(cost - $266,623,137; $786,540,545; $460,709,267;
$538,160,242; $245,571,980; $441,073,392;
$1,231,703,268; $928,746,224; $477,162,099;
$460,683,062; $908,608,342; $262,424,050,
respectively) $ 246,924,873 $ 440,356,771 $ 1,457,221,836 $ 1,084,663,405
Cash -- 3,546,132+ 2,595 2,654
Foreign currency, at value (cost - $0; $0;
$4,352,432; $1,837,696; $0; $9,661,898; $0; $0;
$0; $0; $3,891,429; $3,254,665, respectively) -- 9,717,047 -- --
Receivable from investment manager and
administrator -- -- -- --
Receivable for investments sold -- 14,765,351 8,274,866 11,485,783
Receivable for shares of beneficial interest sold 336,187 635,507 1,142,742 1,090,666
Receivable for dividends and interest 3,063,623 6,350,037 1,144,520 586,064
Receivable for interest rate swaps, net -- -- -- --
(cost - $0; $141,154; $0; $0; $0; $0; $0;
$0; $0; $0; $0; $0, respectively)
Unrealized appreciation of forward foreign
currency contracts -- 6,005,825 -- --
Receivable for variation margin -- -- -- --
Receivable for foreign tax reclaim -- 7,856 -- --
Other assets 37,599 48,673 95,914 76,191
- ------------------------------------------------------------------------------------------------------------------------------
Total assets 250,362,282 481,433,199 1,467,882,473 1,097,904,763
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for shares of beneficial interest
repurchased 458,354 637,203 1,516,290 981,106
Dividends payable to shareholders -- -- -- --
Payable to custodian 8,326 38,531 45,679 34,663
Payable for investments purchased -- 16,995,674 3,058,595 8,250,934
Investments sold short, at value
(proceeds - $0; $21,370,703; $6,835,852; $0;
$0; $0; $0; $0; $0; $0; $0; $0, respectively) -- -- -- --
Payable to affiliates 154,195 313,928 881,220 696,991
Payable for options written, at value -- -- -- --
(premiums received - $0; $508,550; $0;
$245,225; $0; $0; $0; $0; $0; $0; $0; $0,
respectively)
Payable for cash collateral from securities
loaned -- 2,679,545 87,741,287 50,299,611
Unrealized depreciation of forward foreign
currency contracts -- 4,716,487 -- --
Payable for interest sold short -- -- -- --
Payable for variation margin -- -- -- --
Payable for swap contracts, net
(proceeds - $0; $0; $0; $1,852,283; $0; $0; $0;
$0; $0; $0; $0; $0, respectively) -- -- -- --
Payable for foreign withholding taxes -- 31,314 -- --
Accrued expenses and other liabilities 98,616 314,123 419,177 336,916
- ------------------------------------------------------------------------------------------------------------------------------
Total liabilities 719,491 25,726,805 93,662,248 60,600,221
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beneficial interest shares of $0.001 par value
(unlimited amount authorized) 250,237,189 459,580,852 1,113,867,313 1,022,110,206
Accumulated undistributed (distributions in
excess of) net investment income (loss) 632 2,940,372 676,559 (707,429)
Accumulated net realized gains (losses)
from investments, futures, options written,
short sales, swaps, forward foreign currency
contracts and foreign currency transactions (1,947,923) (7,901,796) 34,157,785 (140,015,416)
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 1,352,893 1,086,966 225,518,568 155,917,181
- ------------------------------------------------------------------------------------------------------------------------------
Net assets $ 249,642,791 $ 455,706,394 $ 1,374,220,225 $ 1,037,304,542
- ------------------------------------------------------------------------------------------------------------------------------
<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 - $266,623,137;
$786,540,545; $457,519,381; $535,010,206;
$245,571,980; $440,402,663; $1,220,049,773;
$924,692,470; $442,746,469; $428,454,267;
$852,751,956 ; $247,839,132, respectively)* $ 505,472,490 $ 495,732,783 $ 1,062,859,876 $ 330,125,251
Investments in an affiliated security, at value
(cost - $0; $0; $3,189,886; $3,150,036; $0;
$670,729; $11,653,495; $4,053,754; $34,415,630;
$32,228,795; $55,856,386; $14,584,918,
respectively) 34,415,630 32,228,795 55,856,386 14,584,918
Total investments in securities, at value
(cost - $266,623,137; $786,540,545; $460,709,267;
$538,160,242; $245,571,980; $441,073,392;
$1,231,703,268; $928,746,224; $477,162,099;
$460,683,062; $908,608,342; $262,424,050,
respectively) $ 539,888,120 $ 527,961,578 $ 1,118,716,262 $ 344,710,169
Cash 1,742 1,198 1,438 --
Foreign currency, at value (cost - $0; $0;
$4,352,432; $1,837,696; $0; $9,661,898; $0; $0;
$0; $0; $3,891,429; $3,254,665, respectively) -- -- 3,930,842 3,274,077
Receivable from investment manager and
administrator -- -- -- --
Receivable for investments sold -- 4,926,648 2,017,583 3,698,384
Receivable for shares of beneficial interest sold 475,885 423,264 962,752 703,605
Receivable for dividends and interest 97,256 52,329 683,217 1,408,634
Receivable for interest rate swaps, net -- -- -- --
(cost - $0; $141,154; $0; $0; $0; $0; $0;
$0; $0; $0; $0; $0, respectively)
Unrealized appreciation of forward foreign
currency contracts -- -- 94,204 --
Receivable for variation margin -- -- 16,521 --
Receivable for foreign tax reclaim -- 416 71,319 --
Other assets 49,377 55,854 71,611 39,380
- ------------------------------------------------------------------------------------------------------------------------------
Total assets 540,512,380 533,421,287 1,126,565,749 353,834,249
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for shares of beneficial interest
repurchased 525,629 571,598 980,180 257,638
Dividends payable to shareholders -- -- -- --
Payable to custodian 15,362 30,042 80,663 895,183
Payable for investments purchased 65,654 7,110,492 5,173,410 2,987,618
Investments sold short, at value
(proceeds - $0; $21,370,703; $6,835,852; $0;
$0; $0; $0; $0; $0; $0; $0; $0, respectively) -- -- -- --
Payable to affiliates 336,224 322,033 766,727 326,564
Payable for options written, at value -- -- -- --
(premiums received - $0; $508,550; $0;
$245,225; $0; $0; $0; $0; $0; $0; $0; $0,
respectively)
Payable for cash collateral from securities
loaned 75,067,530 56,670,717 138,058,868 27,965,382
Unrealized depreciation of forward foreign
currency contracts -- -- 54,095 --
Payable for interest sold short -- -- -- --
Payable for variation margin -- -- -- --
Payable for swap contracts, net
(proceeds - $0; $0; $0; $1,852,283; $0; $0; $0;
$0; $0; $0; $0; $0, respectively) -- -- -- --
Payable for foreign withholding taxes 774 -- 24,767 386,410
Accrued expenses and other liabilities 267,709 271,358 315,337 254,491
- ------------------------------------------------------------------------------------------------------------------------------
Total liabilities 76,278,882 64,976,240 145,454,047 33,073,286
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beneficial interest shares of $0.001 par value
(unlimited amount authorized) 400,363,864 394,843,251 788,134,140 222,122,921
Accumulated undistributed (distributions in
excess of) net investment income (loss) 51,194 (1,232,208) (3,205,321) 584,538
Accumulated net realized gains (losses)
from investments, futures, options written,
short sales, swaps, forward foreign currency
contracts and foreign currency transactions 1,092,315 7,555,488 (14,149,493) 15,913,605
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 62,726,125 67,278,516 210,332,376 82,139,899
- ------------------------------------------------------------------------------------------------------------------------------
Net assets $ 464,233,498 $ 468,445,047 $ 981,111,702 $ 320,760,963
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
155
<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 $ -- $ 128,652,405 $ 67,062,689 $ 22,422,978
Shares outstanding -- 9,989,308 5,914,060 1,660,405
- --------------------------------------------------------------------------------------------------------------------------
Net asset value per share $ -- $ 12.88 $ 11.34 $ 13.50
- --------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share $ -- $ 13.49 $ 11.87 $ 14.14
- --------------------------------------------------------------------------------------------------------------------------
CLASS B:
Net assets $ -- $ 3,238,543 $ 888,836 $ 1,273,295
Shares outstanding -- 251,396 78,240 94,318
- --------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ -- $ 12.88 $ 11.36 $ 13.50
- --------------------------------------------------------------------------------------------------------------------------
CLASS C:
Net assets $ -- $ 32,805,479 $ 6,533,528 $ 7,131,574
Shares outstanding -- 2,545,851 575,238 528,094
- --------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ -- $ 12.89 $ 11.36 $ 13.50
- --------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Net assets $ -- $ 9,312,869 $ 1,014,978 $ 876,297
Shares outstanding -- 722,726 89,447 64,934
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ -- $ 12.89 $ 11.35 $ 13.50
- --------------------------------------------------------------------------------------------------------------------------
CLASS P:
Net assets $ 264,892,764 $ 351,649,737 $ 330,648,171 $ 478,224,080
Shares outstanding 264,893,361 27,294,154 29,141,378 35,428,022
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 1.00 $ 12.88 $ 11.35 $ 13.50
- --------------------------------------------------------------------------------------------------------------------------
</Table>
156
<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 $ 106,094,309 $ 130,879,730 $ 304,694,330 $ 91,651,053
Shares outstanding 8,567,208 11,707,932 14,078,304 5,500,246
- --------------------------------------------------------------------------------------------------------------------------
Net asset value per share $ 12.38 $ 11.18 $ 21.64 $ 16.66
- --------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share $ 12.96 $ 11.71 $ 22.90 $ 17.63
- --------------------------------------------------------------------------------------------------------------------------
CLASS B:
Net assets $ 1,654,297 $ 1,121,703 $ 6,286,121 $ 2,148,764
Shares outstanding 133,552 100,143 289,360 134,468
- --------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ 12.39 $ 11.20 $ 21.72 $ 15.98
- --------------------------------------------------------------------------------------------------------------------------
CLASS C:
Net assets $ 19,543,181 $ 8,262,721 $ 38,236,110 $ 8,765,612
Shares outstanding 1,578,164 739,118 1,764,214 547,393
- --------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ 12.38 $ 11.18 $ 21.67 $ 16.01
- --------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Net assets $ 185,823 $ 7,871,301 $ 43,790,396 $ 25,046,401
Shares outstanding 14,998 704,659 2,018,296 1,478,073
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 12.39 $ 11.17 $ 21.70 $ 16.95
- --------------------------------------------------------------------------------------------------------------------------
CLASS P:
Net assets $ 122,165,181 $ 307,570,939 $ 981,213,268 $ 909,692,712
Shares outstanding 9,863,960 27,515,772 45,332,908 53,916,856
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 12.39 $ 11.18 $ 21.64 $ 16.87
- --------------------------------------------------------------------------------------------------------------------------
<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 $ 52,342,729 $ 57,369,823 $ 108,375,703 $ 23,621,592
Shares outstanding 2,888,704 3,614,081 6,017,414 1,237,072
- ------------------------------------------------------------------------------------------------------------------------
Net asset value per share $ 18.12 $ 15.87 $ 18.01 $ 19.09
- ------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share $ 19.17 $ 16.79 $ 19.06 $ 20.20
- ------------------------------------------------------------------------------------------------------------------------
CLASS B:
Net assets $ 2,691,511 $ 1,217,468 $ 760,944 $ 587,726
Shares outstanding 156,318 80,619 43,026 31,890
- ------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ 17.22 $ 15.10 $ 17.69 $ 18.43
- ------------------------------------------------------------------------------------------------------------------------
CLASS C:
Net assets $ 13,446,765 $ 7,970,648 $ 8,214,798 $ 5,988,742
Shares outstanding 779,498 525,795 463,339 324,440
- ------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share $ 17.25 $ 15.16 $ 17.73 $ 18.46
- ------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Net assets $ 4,731,298 $ 4,562,464 $ 52,774,281 $ 21,135,744
Shares outstanding 256,772 282,530 2,931,106 1,095,357
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 18.43 $ 16.15 $ 18.00 $ 19.30
- ------------------------------------------------------------------------------------------------------------------------
CLASS P:
Net assets $ 391,021,195 $ 397,324,644 $ 810,985,976 $ 269,427,159
Shares outstanding 21,297,937 24,667,723 45,091,573 13,999,056
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price and redemption
value per share $ 18.36 $ 16.11 $ 17.99 $ 19.25
- ------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
157
<Page>
UBS PACE SELECT ADVISORS TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006 (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; $1,524; $4,436; $0; $24,126;
$0; $0; $0; $0; $0; $201, respectively) $ 5,141,141 $ 12,766,939 $ 8,623,810 $ 13,428,343
Dividends (net of foreign withholding taxes of
$0; $0; $0; $0; $0; $0; $2,934; $12,889;
$6,307; $623; $359,938; $450,756, respectively) -- -- -- --
Securities lending income (includes $0; $0;
$7,378; $10,477; $0; $4,760; $12,347; $19,611;
$27,707; $71,710; $33,564; $23,461,
respectively, earned from an affiliated entity) -- -- 24,046 12,768
- ------------------------------------------------------------------------------------------------------------------------------
5,141,141 12,766,939 8,647,856 13,441,111
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management and administration fees 454,530 1,819,023 1,229,287 1,723,051
Service fees - Class A -- 168,574 90,055 28,821
Service and distribution fees - Class B -- 19,085 5,670 8,184
Service and distribution fees - Class C -- 131,198 26,566 28,890
Transfer agency and related services fees 536,637 342,621 200,672 377,410
Reports and notices to shareholders 140,897 52,513 28,273 43,285
Professional fees 33,238 56,106 50,386 56,412
Federal and state registration fees 18,025 30,756 31,587 32,806
Custody and accounting fees 14,818 138,551 109,106 130,484
Trustees' fees 6,161 7,368 6,942 7,437
Interest expense -- -- -- --
Other expenses 10,734 25,536 22,287 24,050
- ------------------------------------------------------------------------------------------------------------------------------
1,215,040 2,791,331 1,800,831 2,460,830
- ------------------------------------------------------------------------------------------------------------------------------
Less: Fee waivers and/or expense reimbursements
by investment manager and administrator (435,875) (229,204) (34,217) (103,961)
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses 779,165 2,562,127 1,766,614 2,356,869
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 4,361,976 10,204,812 6,881,242 11,084,242
- ------------------------------------------------------------------------------------------------------------------------------
NET 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; $18,472) (309) (652,413) (3,329,964) (1,336,509)
Commissions recaptured -- -- -- --
Futures -- (233,530) (944,513) (302,838)
Options written -- 433,500 84,762 103,347
Short sales -- (24,609) (36,656) --
Swaps -- (425,715) -- (4,105,644)
Forward foreign currency contracts and foreign
currency transactions -- -- (339,078) (1,551,896)
- ------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation/depreciation of:
Investments -- (4,505,783) 408,756 (5,782,015)
Futures -- (95,508) 601,570 (628,467)
Options written -- (62,450) (80,013) 199,414
Short sales -- 23,839 22,102 --
Swaps -- (76,353) -- 2,572,529
Other assets and liabilities denominated in
foreign currency and forward foreign currency
contracts -- -- (112,022) 136,624
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investment activities (309) (5,619,022) (3,725,056) (10,695,455)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations $ 4,361,667 $ 4,585,790 $ 3,156,186 $ 388,787
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
158
<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; $1,524; $4,436; $0; $24,126;
$0; $0; $0; $0; $0; $201, respectively) $ 5,192,536 $ 8,138,851 $ 503,389 $ 521,130
Dividends (net of foreign withholding taxes of
$0; $0; $0; $0; $0; $0; $2,934; $12,889;
$6,307; $623; $359,938; $450,756, respectively) -- -- 13,269,736 3,460,429
Securities lending income (includes $0; $0;
$7,378; $10,477; $0; $4,760; $12,347; $19,611;
$27,707; $71,710; $33,564; $23,461,
respectively, earned from an affiliated entity) -- 12,625 37,739 56,436
- ------------------------------------------------------------------------------------------------------------------------------
5,192,536 8,151,476 13,810,864 4,037,995
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management and administration fees 753,062 1,795,453 5,161,930 3,803,232
Service fees - Class A 139,163 172,752 378,066 115,093
Service and distribution fees - Class B 10,095 6,686 35,043 12,541
Service and distribution fees - Class C 77,316 32,089 192,303 46,412
Transfer agency and related services fees 88,259 482,979 649,087 528,744
Reports and notices to shareholders 15,630 60,721 96,594 69,264
Professional fees 47,699 54,912 51,062 52,117
Federal and state registration fees 28,154 30,702 36,593 36,605
Custody and accounting fees 66,881 298,581 340,791 254,016
Trustees' fees 6,301 7,186 10,547 8,928
Interest expense -- -- -- --
Other expenses 18,334 23,770 45,017 34,476
- ------------------------------------------------------------------------------------------------------------------------------
1,250,894 2,965,831 6,997,033 4,961,428
- ------------------------------------------------------------------------------------------------------------------------------
Less: Fee waivers and/or expense reimbursements
by investment manager and administrator (91,280) (232,982) (804,399) (218,638)
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,159,614 2,732,849 6,192,634 4,742,790
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 4,032,922 5,418,627 7,618,230 (704,795)
- ------------------------------------------------------------------------------------------------------------------------------
NET 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; $18,472) (243,242) (389,349) 82,052,515 40,439,988
Commissions recaptured -- -- 51,371 --
Futures -- 954,601 -- --
Options written -- -- -- --
Short sales -- -- -- --
Swaps -- -- -- --
Forward foreign currency contracts and foreign
currency transactions -- (5,920,499) 40 238
- ------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation/depreciation of:
Investments (1,832,217) (1,658,678) 15,001,401 13,105,213
Futures -- (63,659) -- --
Options written -- -- -- --
Short sales -- -- -- --
Swaps -- -- -- --
Other assets and liabilities denominated in
foreign currency and forward foreign currency
contracts -- 3,446,784 -- --
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investment activities (2,075,459) (3,630,800) 97,105,327 53,545,439
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations $ 1,957,463 $ 1,787,827 $ 104,723,557 $ 52,840,644
- ------------------------------------------------------------------------------------------------------------------------------
<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; $1,524; $4,436; $0; $24,126;
$0; $0; $0; $0; $0; $201, respectively) $ 263,389 $ 385,254 $ 350,915 $ 61,937
Dividends (net of foreign withholding taxes of
$0; $0; $0; $0; $0; $0; $2,934; $12,889;
$6,307; $623; $359,938; $450,756, respectively) 2,427,051 794,396 7,552,092 3,907,168
Securities lending income (includes $0; $0;
$7,378; $10,477; $0; $4,760; $12,347; $19,611;
$27,707; $71,710; $33,564; $23,461,
respectively, earned from an affiliated entity) 28,592 106,138 99,576 72,327
- ------------------------------------------------------------------------------------------------------------------------------
2,719,032 1,285,788 8,002,583 4,041,432
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management and administration fees 1,768,072 1,714,000 3,884,228 1,553,005
Service fees - Class A 65,633 70,639 127,469 23,612
Service and distribution fees - Class B 16,998 7,659 3,862 3,148
Service and distribution fees - Class C 68,071 39,485 40,197 25,469
Transfer agency and related services fees 456,045 472,888 492,820 396,981
Reports and notices to shareholders 65,590 56,229 66,930 49,847
Professional fees 48,872 49,141 54,403 50,706
Federal and state registration fees 30,539 25,691 35,317 27,746
Custody and accounting fees 117,320 113,529 571,055 440,640
Trustees' fees 7,021 6,952 8,454 6,150
Interest expense -- -- -- 1,415
Other expenses 23,829 23,951 38,840 24,444
- ------------------------------------------------------------------------------------------------------------------------------
2,667,990 2,580,164 5,323,575 2,603,163
- ------------------------------------------------------------------------------------------------------------------------------
Less: Fee waivers and/or expense reimbursements
by investment manager and administrator (152) (62,168) (42) --
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,667,838 2,517,996 5,323,533 2,603,163
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 51,194 (1,232,208) 2,679,050 1,438,269
- ------------------------------------------------------------------------------------------------------------------------------
NET 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; $18,472) 34,194,525 53,361,922 31,636,744 21,673,923
Commissions recaptured 10,997 23,923 28,659 132
Futures -- -- 740,556 --
Options written -- -- -- --
Short sales -- -- -- --
Swaps -- -- -- --
Forward foreign currency contracts and foreign
currency transactions -- -- (491,770) (184,451)
- ------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation/depreciation of:
Investments (25,662,358) (28,201,404) 112,841,254 44,121,768
Futures -- -- (85,178) --
Options written -- -- -- --
Short sales -- -- -- --
Swaps -- -- -- --
Other assets and liabilities denominated in
foreign currency and forward foreign currency
contracts 104 -- 305,414 (92,979)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investment activities 8,543,268 25,184,441 144,975,679 65,518,393
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations $ 8,594,462 $ 23,952,233 $ 147,654,729 $ 66,956,662
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
159
<Page>
UBS PACE SELECT ADVISORS TRUST
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, 2006 YEAR ENDED JANUARY 31, 2006 YEAR ENDED
(UNAUDITED) JULY 31, 2005 (UNAUDITED) JULY 31, 2005
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 4,361,976 $ 3,634,028 $ 10,204,812 $ 12,954,024
Net realized gains (losses) from:
Investments, futures, options written, short
sales and swaps (309) (126) (902,767) 7,458,542
Forward foreign currency contracts and foreign
currency transactions -- -- -- --
Net change in unrealized appreciation/depreciation
of:
Investments, futures, options written, short
sales and swaps -- -- (4,716,255) (1,472,002)
Other assets and liabilities denominated in
foreign currency and forward foreign currency
contracts -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 4,361,667 3,633,902 4,585,790 18,940,564
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income - Class A -- -- (2,691,101) (4,052,501)
Net investment income - Class B -- -- (61,526) (113,234)
Net investment income - Class C -- -- (605,076) (852,567)
Net investment income - Class Y -- -- (208,113) (309,378)
Net investment income - Class P (4,361,976) (3,634,028) (7,186,361) (8,525,424)
Net realized gains from investment
activities - Class A -- -- (1,629,364) --
Net realized gains from investment
activities - Class B -- -- (42,754) --
Net realized gains from investment
activities - Class C -- -- (423,048) --
Net realized gains from investment
activities - Class Y -- -- (118,841) --
Net realized gains from investment
activities - Class P -- -- (4,301,214) --
(4,361,976) (3,634,028) (17,267,398) (13,853,104)
- -------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 147,688,648 224,445,629 65,408,598 119,794,862
Cost of shares repurchased (114,448,678) (166,362,878) (52,294,460) (99,721,593)
Proceeds from dividends reinvested 4,124,994 3,378,866 15,439,707 12,161,782
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
beneficial interest transactions 37,364,964 61,461,617 28,553,845 32,235,051
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 37,364,655 61,461,491 15,872,237 37,322,511
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 227,528,109 166,066,618 509,786,796 472,464,285
End of period $ 264,892,764 $ 227,528,109 $ 525,659,033 $ 509,786,796
- -------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess
of) net investment income (loss) $ -- $ -- $ (547,365) $ --
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
160
<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, 2006 YEAR ENDED JANUARY 31, 2006 YEAR ENDED
(UNAUDITED) JULY 31, 2005 (UNAUDITED) JULY 31, 2005
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 6,881,242 $ 11,979,348 $ 11,084,242 $ 14,904,819
Net realized gains (losses) from:
Investments, futures, options written, short
sales and swaps (4,226,371) 722,344 (5,641,644) 10,817,038
Forward foreign currency contracts and foreign
currency transactions (339,078) 721,567 (1,551,896) 2,314,558
Net change in unrealized appreciation/depreciation
of:
Investments, futures, options written, short
sales and swaps 952,415 (3,368,192) (3,638,539) (3,637,089)
Other assets and liabilities denominated in
foreign currency and forward foreign currency
contracts (112,022) (444,969) 136,624 (154,439)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 3,156,186 9,610,098 388,787 24,244,887
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income - Class A (1,135,234) (2,461,828) (620,760) (771,766)
Net investment income - Class B (13,393) (60,885) (35,308) (87,621)
Net investment income - Class C (93,507) (216,782) (187,686) (237,708)
Net investment income - Class Y (18,312) (39,084) (27,254) (28,544)
Net investment income - Class P (5,670,571) (9,313,207) (13,244,399) (14,147,579)
Net realized gains from investment
activities - Class A -- -- -- (548,508)
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 -- -- -- (8,912,182)
(6,931,017) (12,091,786) (14,115,407) (25,038,881)
- -------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 61,664,933 125,092,768 94,577,492 165,854,478
Cost of shares repurchased (56,772,108) (102,710,498) (48,434,836) (112,018,802)
Proceeds from dividends reinvested 6,418,049 11,049,220 13,776,184 24,338,634
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
beneficial interest transactions 11,310,874 33,431,490 59,918,840 78,174,310
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 7,536,043 30,949,802 46,192,220 77,380,316
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 398,612,159 367,662,357 463,736,004 386,355,688
End of period $ 406,148,202 $ 398,612,159 $ 509,928,224 $ 463,736,004
- -------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess
of) net investment income (loss) $ 72,906 $ 122,681 $ 182,932 $ 3,295,114
- -------------------------------------------------------------------------------------------------------------------------------
<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, 2006 YEAR ENDED JANUARY 31, 2006 YEAR ENDED
(UNAUDITED) JULY 31, 2005 (UNAUDITED) JULY 31, 2005
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 4,032,922 $ 8,052,730 $ 5,418,627 $ 8,980,486
Net realized gains (losses) from:
Investments, futures, options written, short
sales and swaps (243,242) 941,267 565,252 11,805,323
Forward foreign currency contracts and foreign
currency transactions -- -- (5,920,499) 15,854,189
Net change in unrealized appreciation/depreciation
of:
Investments, futures, options written, short
sales and swaps (1,832,217) (2,299,471) (1,722,337) (10,440,003)
Other assets and liabilities denominated in
foreign currency and forward foreign currency
contracts -- -- 3,446,784 (2,146,423)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 1,957,463 6,694,526 1,787,827 24,053,572
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income - Class A (1,748,737) (3,913,061) (4,941,912) (9,288,996)
Net investment income - Class B (23,737) (85,409) (42,576) (93,928)
Net investment income - Class C (271,667) (605,527) (287,097) (484,134)
Net investment income - Class Y (3,166) (6,550) (320,973) (608,419)
Net investment income - Class P (1,984,983) (3,444,998) (11,215,330) (14,601,051)
Net realized gains from investment
activities - Class A -- -- (2,103,145) (275,150)
Net realized gains from investment
activities - Class B -- -- (20,197) (3,248)
Net realized gains from investment
activities - Class C -- -- (131,657) (15,545)
Net realized gains from investment
activities - Class Y -- -- (130,019) (17,005)
Net realized gains from investment
activities - Class P -- -- (4,705,956) (402,636)
(4,032,290) (8,055,545) (23,898,862) (25,790,112)
- -------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 23,850,602 43,903,633 61,702,570 110,053,612
Cost of shares repurchased (26,812,526) (54,324,278) (44,000,555) (76,153,174)
Proceeds from dividends reinvested 3,343,968 6,533,146 21,748,555 22,748,986
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
beneficial interest transactions 382,044 (3,887,499) 39,450,570 56,649,424
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (1,692,783) (5,248,518) 17,339,535 54,912,884
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 251,335,574 256,584,092 438,366,859 383,453,975
End of period $ 249,642,791 $ 251,335,574 $ 455,706,394 $ 438,366,859
- -------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess
of) net investment income (loss) $ 632 $ -- $ 2,940,372 $ 14,329,633
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
161
<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, 2006 YEAR ENDED JANUARY 31, 2006 YEAR ENDED
(UNAUDITED) JULY 31, 2005 (UNAUDITED) JULY 31, 2005
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 7,618,230 $ 14,166,765 $ (704,795) $ 1,012,868
Net realized gains (losses) from:
Investments, commissions recaptured and futures 82,103,886 74,056,309 40,439,988 38,148,379
Forward foreign currency contracts and foreign
currency transactions 40 (40) 238 16
Net change in unrealized
appreciation/depreciation of:
Investments and futures 15,001,401 104,074,063 13,105,213 87,547,937
Other assets and liabilities denominated in
foreign currency and forward foreign currency
contracts -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 104,723,557 192,297,097 52,840,644 126,709,200
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income - Class A (2,811,131) (3,302,996) -- --
Net investment income - Class B -- -- -- --
Net investment income - Class C (40,382) (94,894) -- --
Net investment income - Class Y (494,689) (518,871) (38,639) --
Net investment income - Class P (10,815,370) (8,802,029) (976,879) --
Net realized gains from investment
activities - Class A (6,563,489) -- -- --
Net realized gains from investment
activities - Class B (139,073) -- -- --
Net realized gains from investment
activities - Class C (826,430) -- -- --
Net realized gains from investment
activities - Class Y (925,110) -- -- --
Net realized gains from investment
activities - Class P (20,225,630) -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
(42,841,304) (12,718,790) (1,015,518) --
- -------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 150,718,898 262,895,159 153,133,431 259,793,530
Cost of shares repurchased (115,378,996) (225,829,854) (82,748,500) (157,328,240)
Proceeds from dividends reinvested 41,467,749 12,283,985 1,000,787 --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from beneficial
interest transactions 76,807,651 49,349,290 71,385,718 102,465,290
- -------------------------------------------------------------------------------------------------------------------------------
Redemption fees -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 138,689,904 228,927,597 123,210,844 229,174,490
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,235,530,321 1,006,602,724 914,093,698 684,919,208
End of period $ 1,374,220,225 $ 1,235,530,321 $ 1,037,304,542 $ 914,093,698
- -------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in
excess of) net investment income (loss) $ 676,559 $ 7,219,901 $ (707,429) $ 1,012,884
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
162
<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, 2006 YEAR ENDED JANUARY 31, 2006 YEAR ENDED
(UNAUDITED) JULY 31, 2005 (UNAUDITED) JULY 31, 2005
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 51,194 $ (661,592) $ (1,232,208) $ (2,956,668)
Net realized gains (losses) from:
Investments, commissions recaptured and futures 34,205,522 62,560,612 53,385,845 20,928,779
Forward foreign currency contracts and foreign
currency transactions -- 388 -- 45
Net change in unrealized
appreciation/depreciation of:
Investments and futures (25,662,358) 18,054,483 (28,201,404) 66,820,351
Other assets and liabilities denominated in
foreign currency and forward foreign currency
contracts 104 -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 8,594,462 79,953,891 23,952,233 84,792,507
- -------------------------------------------------------------------------------------------------------------------------------
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 (9,372,561) (5,167,885) (7,647,042) (246,244)
Net realized gains from investment
activities - Class B (526,355) (576,683) (183,663) (10,739)
Net realized gains from investment
activities - Class C (2,507,674) (1,406,141) (1,102,955) (37,275)
Net realized gains from investment
activities - Class Y (817,914) (394,662) (543,931) (13,563)
Net realized gains from investment
activities - Class P (66,750,635) (29,368,166) (49,707,564) (1,173,710)
- -------------------------------------------------------------------------------------------------------------------------------
(79,975,139) (36,913,537) (59,185,155) (1,481,531)
- -------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 55,426,446 98,632,360 55,762,393 95,303,311
Cost of shares repurchased (43,726,294) (84,662,517) (41,671,665) (86,010,378)
Proceeds from dividends reinvested 78,650,331 36,228,640 58,111,179 1,450,971
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from beneficial
interest transactions 90,350,483 50,198,483 72,201,907 10,743,904
- -------------------------------------------------------------------------------------------------------------------------------
Redemption fees -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 18,969,806 93,238,837 36,968,985 94,054,880
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 445,263,692 352,024,855 431,476,062 337,421,182
End of period $ 464,233,498 $ 445,263,692 $ 468,445,047 $ 431,476,062
- -------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in
excess of) net investment income (loss) $ 51,194 $ -- $ (1,232,208) $ --
- -------------------------------------------------------------------------------------------------------------------------------
<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, 2006 YEAR ENDED JANUARY 31, 2006 YEAR ENDED
(UNAUDITED) JULY 31, 2005 (UNAUDITED) JULY 31, 2005
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 2,679,050 $ 11,962,129 $ 1,438,269 $ 2,357,525
Net realized gains (losses) from:
Investments, commissions recaptured and futures 32,405,959 27,977,503 21,674,055 29,966,063
Forward foreign currency contracts and foreign
currency transactions (491,770) (272,002) (184,451) (582,938)
Net change in unrealized
appreciation/depreciation of:
Investments and futures 112,756,076 78,881,825 44,121,768 33,018,810
Other assets and liabilities denominated in
foreign currency and forward foreign currency
contracts 305,414 (162,864) (92,979) 32,868
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 147,654,729 118,386,591 66,956,662 64,792,328
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income - Class A (1,382,690) (407,967) (165,084) (743)
Net investment income - Class B (1,002) -- -- --
Net investment income - Class C (42,341) -- (8,961) --
Net investment income - Class Y (868,192) (366,534) (195,302) (22,732)
Net investment income - Class P (12,323,927) (3,759,389) (2,035,705) (144,070)
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 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
(14,618,152) (4,533,890) (2,405,052) (167,545)
- -------------------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares 127,349,147 218,161,287 45,771,758 69,352,891
Cost of shares repurchased (69,747,177) (126,855,189) (27,861,858) (37,568,480)
Proceeds from dividends reinvested 14,298,782 4,442,443 2,371,526 165,698
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from beneficial
interest transactions 71,900,752 95,748,541 20,281,426 31,950,109
- -------------------------------------------------------------------------------------------------------------------------------
Redemption fees -- 15 -- 499
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 204,937,329 209,601,257 84,833,036 96,575,391
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 776,174,373 566,573,116 235,927,927 139,352,536
End of period $ 981,111,702 $ 776,174,373 $ 320,760,963 $ 235,927,927
- -------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in
excess of) net investment income (loss) $ (3,205,321) $ 8,733,781 $ 584,538 $ 1,551,321
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
163
<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 PACESM Select Advisors Program, except that UBS PACE
Money Market Investments shares are also available to participants in the UBS
PACESM 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 the Trust'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 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. UBS PACE International Equity Investments and UBS PACE International
Emerging Markets Equity Investments may use a systematic fair valuation model
provided by an independent third party to value securities principally traded in
foreign markets in order to adjust for possible stale pricing that may occur
between the close of the foreign exchanges and the time for valuation. If a
security is valued at a "fair value", that value is likely to be different from
the last quoted market price for the security. 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 and Basel, 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"). Various factors may be
164
<Page>
reviewed in order to make a good faith determination of a security's fair value.
These factors include, but are not limited to, the type and cost of the
security; contractual or legal restrictions on resale of the security; relevant
financial or business developments of the issuer; actively traded similar or
related securities; conversion or exchange rights on the security; related
corporate actions; and changes in overall market conditions. If events occur
that materially affect the value of securities (particularly non-U.S.
securities) between the close of trading in those securities and the close of
regular trading on the New York Stock Exchange ("NYSE"), the securities are fair
valued. 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 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.
Prior to November 1, 2005, foreign currency exchange rates were generally
determined prior to the close of the NYSE. Occasionally, events affecting the
value of foreign investments and such exchange rates occurred between the time
at which they were determined and the close of the NYSE, which would not have
been reflected in the computation of the Portfolios' net asset value. If events
materially affecting the value of such securities or currency exchange rates
occurred during such time periods, the securities were valued at their fair
value as determined in good faith by or under the direction of the Board.
Effective November 1, 2005, the Portfolios began using the foreign currency
exchange rates determined as of the close of regular trading on the NYSE.
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 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 foreign currency exchange rates determined as of the close of
regular trading on the NYSE; 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.
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<Page>
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.
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.
SECURITIES TRADED ON TO-BE-ANNOUNCED BASIS - The Portfolios may from time to
time purchase securities on to-be-announced ("TBA") basis. In a TBA transaction,
the Portfolio commits to purchasing or selling securities for which all specific
information is not yet known at the time of the trade, particularly the face
amount and maturity date of the underlying security transactions. Securities
purchased on a TBA basis are not settled until they are delivered to the
Portfolio, normally 15 to 45 days later. Beginning on the date the Portfolio
enters into a TBA transaction, cash, U.S. government securities or other liquid
securities are segregated in an amount in value to the purchase price of the TBA
security. These transactions are subject to market fluctuations and their
current value is determined in the same manner as for other securities.
At January 31, 2006, UBS PACE Government Securities Fixed Income Investments and
UBS PACE Strategic Fixed Income Investments held TBA securities with a total
cost of $261,848,086 and $9,439,141, respectively.
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.
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<Page>
Written option activity for the six months ended January 31, 2006 for UBS PACE
Government Securities Fixed Income Investments, UBS PACE Intermediate Fixed
Income Investments and UBS PACE Strategic Fixed Income Investments was as
follows:
<Table>
<Caption>
UBS PACE GOVERNMENT UBS PACE INTERMEDIATE UBS PACE STRATEGIC
SECURITIES FIXED INCOME FIXED INCOME FIXED INCOME
INVESTMENTS INVESTMENTS INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------
NUMBER OF AMOUNT OF AMOUNT OF NUMBER OF AMOUNT OF
CONTRACTS PREMIUMS NUMBER OF PREMIUMS CONTRACTS PREMIUMS
(000) RECEIVED CONTRACTS RECEIVED (000) RECEIVED
- -----------------------------------------------------------------------------------------------------------------------------
Options outstanding at July 31, 2005 30,000 $ 433,500 116 $ 84,763 0* $ 103,346
Options written 43,001 508,550 -- -- 29,500 245,225
Options expired prior to exercise (30,000) (433,500) (116) (84,763) (0)* (103,346)
- -----------------------------------------------------------------------------------------------------------------------------
Options outstanding at January 31, 2006** 43,001 $ 508,550 -- $ -- 29,500 $ 245,225
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
* Amount represents less than 500 contracts.
** For additional information regarding the written options outstanding at
January 31, 2006, please refer to the footnotes in the Portfolio of
Investments for the respective Portfolios.
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 $146,200 and
$64,090 for UBS PACE Government Securities Fixed Income Investments and UBS PACE
Strategic Fixed Income Investments, respectively, at January 31, 2006.
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. At January 31, 2006, none of the Portfolios held written
put options.
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
deliver 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 depending on the fluctuations in the value of the
underlying financial futures contracts, except that in the case of UBS PACE
Global Fixed Income Investments, which certain futures contracts call for
payments to be made or received at settlement. 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 its custodian,
the securities that could be
167
<Page>
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, 2006.
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.
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, 2006, 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 ------------------------------------- UNREALIZED
AMOUNT TERMINATION PAYMENTS MADE PAYMENTS RECEIVED APPRECIATION
(000) DATES BY THE FUND BY THE FUND (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------------
USD 3,000 12/15/15 5.000% 4.680%+ $ 7,551
USD 3,600 06/21/16 5.000 4.680+ (22,210)
USD 10,000 06/21/16 5.000 4.680+ (61,694)
- ----------------------------------------------------------------------------------------------------------------------
$ (76,353)
- ----------------------------------------------------------------------------------------------------------------------
</Table>
168
<Page>
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 200 06/18/34 2.699%++ 6.000% $ (4,707)
EUR 1,900 06/18/34 2.699++ 6.000 9,594
GBP 21,300 09/20/09 4.616+++ 4.500 (126,126)
GBP 4,600 09/15/10 4.616+++ 5.000 156,072
GBP 6,700 09/15/10 4.616+++ 5.000 235,967
GBP 7,100 09/15/10 4.616+++ 5.000 232,843
GBP 7,900 09/15/10 4.616+++ 5.000 53,684
GBP 200 06/18/34 5.000 4.616+++ 9,632
GBP 3,100 06/18/34 5.000 4.616+++ (54,547)
GBP 6,600 06/18/34 5.000 4.616+++ (119,770)
JPY 3,000,000 06/15/12 2.000 0.086++++ (685,114)
USD 8,300 06/21/11 4.680+ 5.000 15,007
USD 10,700 06/21/11 4.680+ 5.000 (34,154)
USD 45,500 06/21/11 4.680+ 5.000 69,526
USD 4,300 06/21/16 4.680+ 5.000 26,528
USD 8,900 12/15/25 5.000 4.680+ 592,255
USD 1,700 06/15/31 6.000 4.680+ (318,730)
USD 2,500 12/17/31 6.000 4.680+ (389,832)
- -----------------------------------------------------------------------------------------------------------------------
$ (331,872)
- -----------------------------------------------------------------------------------------------------------------------
</Table>
+ 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).
EUR Euro Dollars
GBP Great Britain Pounds
JPY Japanese Yen
USD U.S. Dollars
CREDIT DEFAULT SWAP AGREEMENTS - Credit default swap agreements involve
commitments to pay interest and principal in the event of a default of a
security or a credit event. The Portfolio would receive periodic payments from
the counterparty, and the Portfolio would make payments only upon the occurrence
of a default or credit event.
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 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.
If no default or credit event occurs, the counterparty will lose its periodic
stream of payments over the term of the contract. However, if a default or
credit event occurs, the Portfolio typically pays full notional value for a
reference obligation that may have little or no value. Credit default swaps may
involve greater risks than if the Portfolio had invested in the reference
obligation directly. Credit default swaps are subject to general market risk,
liquidity risk, and credit risk.
169
<Page>
At January 31, 2006, UBS PACE Strategic Fixed Income Investments had outstanding
credit default swap contracts with the following terms:
UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
<Table>
<Caption>
RATE TYPE
NOTIONAL -------------------------------------
AMOUNT TERMINATION PAYMENTS MADE PAYMENTS RECEIVED UNREALIZED
(000) DATES BY THE FUND BY THE FUND APPRECIATION
- ----------------------------------------------------------------------------------------------------------------------
USD 3,300 03/20/07 0.000%* 4.650% $ 26,457
USD 6,000 03/20/07 0.000** 4.100 51,946
- ----------------------------------------------------------------------------------------------------------------------
$ 78,403
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* Payment to the counterparty will be made upon the occurrence of bankruptcy
and/or by a restructuring event with respect to the General Motors
Acceptance Corporation bond, 6.875%, due 08/28/12.
** Payment to the counterparty will be made upon the occurrence of bankruptcy
and/or by a restructuring event with respect to the Ford Motor Credit Co.
bond, 7.000%, due 10/01/13.
DIVIDENDS AND DISTRIBUTIONS - Dividends and distributions to shareholders are
recorded on the ex-dividend 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%
</Table>
170
<Page>
<Table>
<Caption>
ANNUAL RATE
AS A PERCENTAGE OF
EACH PORTFOLIO'S
PORTFOLIO AVERAGE DAILY NET ASSETS
- ---------------------------------------------------------------------------------------------------------
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
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
</Table>
* See pages 173-174 for additional information.
171
<Page>
<Table>
<Caption>
ANNUAL RATE
AS A PERCENTAGE OF
EACH PORTFOLIO'S
PORTFOLIO AVERAGE DAILY NET ASSETS
- ---------------------------------------------------------------------------------------------------------
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>
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 Investments BlackRock Financial Management, Inc. 0.200% up to $120 million
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. (and affiliates) 0.250% up to $400 million
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 Metropolitan West Capital Management, LLC* 0.400%
Opus Capital Management, Inc.* 0.500% up to $75 million
0.450% above $75 million
UBS PACE Small/Medium Co Growth Equity Delaware Management Company, Inc. 0.400%
Investments 0.450% up to $100 million
Forstmann-Leff Associates, LLC** 0.400% above $100 million
0.400%
Riverbridge Partners, LLC**
</Table>
* Metropolitan West Capital Management, LLC and Opus Capital Management, Inc.
replaced ICM Asset Management, Inc. effective October 1, 2005.
** Forstmann-Leff Associates, LLC and Riverbridge Partners, LLC became
sub-advisors effective October 1, 2005.
172
<Page>
<Table>
<Caption>
ANNUAL RATE
AS A PERCENTAGE OF
EACH PORTFOLIO'S
PORTFOLIO INVESTMENT SUB-ADVISOR AVERAGE DAILY NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------------
UBS PACE International Equity Investments J.P. Morgan Asset Management, Inc. 0.200%
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
Gartmore Global Partners .500%
</Table>
At January 31, 2006, certain Portfolios owed UBS Global AM for investment
management and administration fees as follows:
<Table>
<Caption>
AMOUNTS
PORTFOLIO OWED
- --------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 81,677
UBS PACE Government Securities Fixed Income Investments 311,193
UBS PACE Intermediate Fixed Income Investments 207,095
UBS PACE Strategic Fixed Income Investments 301,994
UBS PACE Municipal Fixed Income Investments 126,761
UBS PACE Global Fixed Income Investments 309,249
UBS PACE Large Co Value Equity Investments 768,244
UBS PACE Large Co Growth Equity Investments 642,757
UBS PACE Small/Medium Co Value Equity Investments 307,247
UBS PACE Small/Medium Co Growth Equity Investments 306,130
UBS PACE International Equity Investments 717,513
UBS PACE International Emerging Markets Equity Investments 283,076
</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 sub-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%.
173
<Page>
For the six months ended January 31, 2006, UBS Global AM was contractually
obligated to waive $803,857 and $216,204 in investment management and
administration fees for UBS PACE Large Co Value Equity Investments and UBS PACE
Large Co Growth Investments, respectively. Additionally, for the six months
ended January 31, 2006, UBS Global AM had the following voluntary expense
reimbursements and recoupments. The recoupments are included in the investment
management and administration fees on the Statement of Operations. The expense
reimbursements for the six months ended January 31, 2006, which are subject to
repayment by the Portfolios through December 1, 2009, were as follows:
<Table>
<Caption>
EXPENSE
PORTFOLIO REIMBURSEMENTS RECOUPMENTS
- ----------------------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 435,875 --
UBS PACE Government Securities Fixed Income Investments 229,204 --
UBS PACE Intermediate Fixed Income Investments 34,217 --
UBS PACE Strategic Fixed Income Investments 103,961 $ 1,926
UBS PACE Municipal Fixed Income Investments 91,280 --
UBS PACE Global Fixed Income Investments 232,982 189
UBS PACE Large Co Value Equity Investments 542 15,011
UBS PACE Large Co Growth Equity Investments 2,434 17,170
UBS PACE Small/Medium Co Value Equity Investments 152 1,436
UBS PACE Small/Medium Co Growth Equity Investments 62,168 --
UBS PACE International Equity Investments 42 32,469
UBS PACE International Emerging Markets Equity Investments -- 90,976
</Table>
UBS Global AM is contractually obligated to waive all or a portion of its
investment management and administration fees and/or to reimburse certain
operating expenses for the twelve months ending December 1, 2006 to maintain the
total annual operating expenses at a level not to exceed the following:
<Table>
<Caption>
EFFECTIVE
PORTFOLIO 12/01/05
- ----------------------------------------------------------------------------------------------
UBS PACE Money Market Investments 0.60%
UBS PACE Government Securities Fixed Income Investments--Class A 1.12
UBS PACE Government Securities Fixed Income Investments--Class B 1.87
UBS PACE Government Securities Fixed Income Investments--Class C 1.62
UBS PACE Government Securities Fixed Income Investments--Class Y 0.87
UBS PACE Government Securities Fixed Income Investments--Class P 0.87
UBS PACE Intermediate Fixed Income Investments--Class A 1.05
UBS PACE Intermediate Fixed Income Investments--Class B 1.80
UBS PACE Intermediate Fixed Income Investments--Class C 1.55
UBS PACE Intermediate Fixed Income Investments--Class Y 0.80
UBS PACE Intermediate Fixed Income Investments--Class P 0.80
UBS PACE Strategic Fixed Income Investments--Class A 1.18
UBS PACE Strategic Fixed Income Investments--Class B 1.93
UBS PACE Strategic Fixed Income Investments--Class C 1.68
UBS PACE Strategic Fixed Income Investments--Class Y 0.93
UBS PACE Strategic Fixed Income Investments--Class P 0.93
UBS PACE Municipal Fixed Income Investments--Class A 1.01
UBS PACE Municipal Fixed Income Investments--Class B 1.76
UBS PACE Municipal Fixed Income Investments--Class C 1.51
UBS PACE Municipal Fixed Income Investments--Class Y 0.76
</Table>
174
<Page>
<Table>
<Caption>
EFFECTIVE
PORTFOLIO 12/01/05
- ----------------------------------------------------------------------------------------------
UBS PACE Municipal Fixed Income Investments--Class P 0.76%
UBS PACE Global Fixed Income Investments--Class A 1.38
UBS PACE Global Fixed Income Investments--Class B 2.13
UBS PACE Global Fixed Income Investments--Class C 1.88
UBS PACE Global Fixed Income Investments--Class Y 1.13
UBS PACE Global Fixed Income Investments--Class P 1.13
UBS PACE Large Co Value Equity Investments--Class A 1.27
UBS PACE Large Co Value Equity Investments--Class B 2.02
UBS PACE Large Co Value Equity Investments--Class C 2.02
UBS PACE Large Co Value Equity Investments--Class Y 1.02
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 2.05
UBS PACE Large Co Growth Equity Investments--Class C 2.05
UBS PACE Large Co Growth Equity Investments--Class Y 1.05
UBS PACE Large Co Growth Equity Investments--Class P 1.05
UBS PACE Small/Medium Co Value Equity Investments--Class A 1.41
UBS PACE Small/Medium Co Value Equity Investments--Class B 2.16
UBS PACE Small/Medium Co Value Equity Investments--Class C 2.16
UBS PACE Small/Medium Co Value Equity Investments--Class Y 1.16
UBS PACE Small/Medium Co Value Equity Investments--Class P 1.16
UBS PACE Small/Medium Co Growth Equity Investments--Class A 1.38
UBS PACE Small/Medium Co Growth Equity Investments--Class B 2.13
UBS PACE Small/Medium Co Growth Equity Investments--Class C 2.13
UBS PACE Small/Medium Co Growth Equity Investments--Class Y 1.13
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 2.40
UBS PACE International Equity Investments--Class C 2.40
UBS PACE International Equity Investments--Class Y 1.40
UBS PACE International Equity Investments--Class P 1.40
UBS PACE International Emerging Markets Equity Investments--Class A 2.25
UBS PACE International Emerging Markets Equity Investments--Class B 3.00
UBS PACE International Emerging Markets Equity Investments--Class C 3.00
UBS PACE International Emerging Markets Equity Investments--Class Y 2.00
UBS PACE International Emerging Markets Equity Investments--Class P 2.00
</Table>
Each Portfolio will repay UBS Global AM for any such reimbursed payments during
a three-year period following December 1, 2006, to the extent that operating
expenses are otherwise below the expense caps.
Portfolio expense caps were changed effective 12/01/05. For this reason the
current expense caps may not correspond directly to the expense ratios disclosed
in the Financial Highlights as the periods reflected differ.
175
<Page>
At January 31, 2006, the following Portfolios had remaining expense
reimbursements subject to repayment to UBS Global AM and respective dates of
expiration as follows:
<Table>
<Caption>
EXPENSE
REIMBURSEMENTS EXPIRES EXPIRES EXPIRES EXPIRES
SUBJECT TO JULY 31, JULY 31, JULY 31, JULY 31,
PORTFOLIO REPAYMENT 2006 2007 2008 2009
- -----------------------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 2,368,548 $ 703,657 $ 510,180 $ 718,836 $ 435,875
UBS PACE Government Securities Fixed Income Investments--Class A 732,683 329,289 216,241 131,857 55,296
UBS PACE Government Securities Fixed Income Investments--Class B 41,719 21,806 12,369 5,606 1,938
UBS PACE Government Securities Fixed Income Investments--Class C 255,503 108,668 75,838 47,054 23,943
UBS PACE Government Securities Fixed Income Investments--Class Y 59,732 32,896 15,212 8,778 2,846
UBS PACE Government Securities Fixed Income Investments--Class P 1,017,063 311,241 295,474 265,167 145,181
UBS PACE Intermediate Fixed Income Investments--Class A 232,359 135,304 62,979 18,529 15,547
UBS PACE Intermediate Fixed Income Investments--Class B 14,744 9,127 3,162 1,730 725
UBS PACE Intermediate Fixed Income Investments--Class C 23,640 14,091 5,375 2,749 1,425
UBS PACE Intermediate Fixed Income Investments--Class Y 4,311 2,534 941 606 230
UBS PACE Intermediate Fixed Income Investments--Class P 352,505 188,642 105,228 42,345 16,290
UBS PACE Strategic Fixed Income Investments--Class A 14,117 9,761 4,356 -- --
UBS PACE Strategic Fixed Income Investments--Class B 5,038 2,614 977 770 677
UBS PACE Strategic Fixed Income Investments--Class C 2,802 2,802 -- -- --
UBS PACE Strategic Fixed Income Investments--Class P 736,049 231,947 186,960 213,858 103,284
UBS PACE Municipal Fixed Income Investments--Class A 513,263 207,083 175,866 92,476 37,838
UBS PACE Municipal Fixed Income Investments--Class B 23,280 12,234 7,322 2,881 843
UBS PACE Municipal Fixed Income Investments--Class C 87,404 34,944 30,233 15,723 6,504
UBS PACE Municipal Fixed Income Investments--Class Y 1,008 380 313 214 101
UBS PACE Municipal Fixed Income Investments--Class P 290,521 80,057 98,160 66,310 45,994
UBS PACE Global Fixed Income Investments--Class A 460,854 209,982 150,181 72,872 27,819
UBS PACE Global Fixed Income Investments--Class B 6,067 2,650 2,095 977 345
UBS PACE Global Fixed Income Investments--Class C 30,555 14,917 7,929 5,871 1,838
UBS PACE Global Fixed Income Investments--Class Y 8,953 6,563 2,390 -- --
UBS PACE Global Fixed Income Investments--Class P 1,193,024 286,377 334,334 369,333 202,980
UBS PACE Large Co Value Equity Investments--Class A 137,666 137,666 -- -- --
UBS PACE Large Co Value Equity Investments--Class B 32,635 32,093 -- -- 542
UBS PACE Large Co Value Equity Investments--Class C 22,764 22,764 -- -- --
UBS PACE Large Co Growth Equity Investments--Class A 93,681 93,681 -- -- --
UBS PACE Large Co Growth Equity Investments--Class B 29,547 18,937 5,487 2,941 2,182
UBS PACE Large Co Growth Equity Investments--Class C 21,019 19,064 1,704 -- 251
UBS PACE Large Co Growth Equity Investments--Class Y 7,603 7,603 -- -- --
UBS PACE Large Co Growth Equity Investments--Class P 129,929 129,929 -- -- --
UBS PACE Small/Medium Co Value Equity Investments--Class B 1,137 985 -- -- 152
UBS PACE Small/Medium Co Value Equity Investments--Class P 351,178 225,846 93,704 31,628 --
UBS PACE Small/Medium Co Growth Equity Investments--Class B 4,727 3,499 590 143 495
UBS PACE Small/Medium Co Growth Equity Investments--Class P 533,951 216,010 101,672 154,596 61,673
</Table>
176
<Page>
<Table>
<Caption>
EXPENSE
REIMBURSEMENTS EXPIRES EXPIRES EXPIRES EXPIRES
SUBJECT TO JULY 31, JULY 31, JULY 31, JULY 31,
PORTFOLIO REPAYMENT 2006 2007 2008 2009
- -----------------------------------------------------------------------------------------------------------------------------------
UBS PACE International Equity Investments--Class A $ 2,908 $ 2,908 -- -- --
UBS PACE International Equity Investments--Class B 735 693 -- -- $ 42
UBS PACE International Equity Investments--Class C 3,695 3,695 -- -- --
UBS PACE International Emerging Markets Equity
Investments--Class A 8,280 8,280 -- -- --
UBS PACE International Emerging Markets Equity
Investments--Class B 7,712 7,712 -- -- --
UBS PACE International Emerging Markets Equity
Investments--Class C 3,948 3,948 -- -- --
UBS PACE International Emerging Markets Equity
Investments--Class P 344,551 252,518 $ 82,182 $ 9,851 --
</Table>
UBS PACE Strategic Fixed Income Investments Class Y, UBS PACE Large Co Value
Equity Investments Class Y and Class P, UBS PACE Small/Medium Co Value Equity
Class A, Class C and Class Y, UBS PACE Small/Medium Co Growth Equity Investments
Class A, Class C and Class Y, UBS PACE International Equity Investments Class Y
and Class P and UBS PACE International Emerging Markets Equity Investments Class
Y have no remaining expense reimbursements subject to repayment.
At January 31, 2006, UBS Global AM owed (was owed by) certain Portfolios for
expense reimbursements (recouped expense reimbursements) as follows:
<Table>
<Caption>
AMOUNTS DUE
PORTFOLIO (OWED)
- ----------------------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 85,249
UBS PACE Government Securities Fixed Income Investments 30,774
UBS PACE Intermediate Fixed Income Investments 2,743
UBS PACE Strategic Fixed Income Investments 17,715
UBS PACE Municipal Fixed Income Investments 9,254
UBS PACE Global Fixed Income Investments 29,747
UBS PACE Large Co Value Equity Investments (8,954)
UBS PACE Large Co Growth Equity Investments (16,090)
UBS PACE Small/Medium Co Value Equity Investments (1,311)
UBS PACE Small/Medium Co Growth Equity Investments 6,791
UBS PACE International Equity Investments (10,991)
UBS PACE International Emerging Markets Equity Investments (29,582)
</Table>
During the six months ended January 31, 2006, UBS PACE Large Co Value Equity
Investments and UBS PACE Small/Medium Co Value Equity Investments paid $13,217
and $48, respectively, in brokerage commissions to UBS Securities LLC, an
indirect wholly owned subsidiary of UBS AG, and UBS PACE International Equity
Investments and UBS PACE International Emerging Markets Equity Investments paid
$448 and $61,872, respectively, in brokerage commissions to UBS AG, for
transactions executed on behalf of the respective Portfolios.
ADDITIONAL INFORMATION REGARDING COMPENSATION TO AFFILIATE OF A BOARD MEMBER
Effective March 1, 2005, Professor Meyer Feldberg accepted the position of
senior advisor to Morgan Stanley, resulting in him becoming an interested
trustee of the Portfolios. The Portfolios have been informed that Professor
Feldberg's role at Morgan Stanley does not involve matters directly affecting
any UBS funds. Portfolio transactions are executed through Morgan Stanley based
on that firm's ability to provide best execution of the transactions. During the
six months ended January 31, 2006, the following Portfolios paid brokerage
commissions to Morgan Stanley in the amounts as follows:
<Table>
UBS PACE Large Co Value Equity Investments $ 44,089
UBS PACE Large Co Growth Equity Investments 11,843
UBS PACE Small/Medium Co Value Equity Investments 4,144
UBS PACE Small/Medium Co Growth Equity Investments 20,907
UBS PACE International Equity Investments 76,730
UBS PACE International Emerging Markets Equity Investments 31,354
</Table>
177
<Page>
During the six months ended January 31, 2006, the following Portfolios purchased
and sold certain securities (e.g., fixed income securities) in principal trades
with Morgan Stanley having aggregate values as follows:
<Table>
UBS PACE Money Market Investments $ 95,517,589
UBS PACE Government Securities Fixed Income Investments 94,971,061
UBS PACE Intermediate Fixed Income Investments 55,086,236
UBS PACE Strategic Fixed Income Investments 191,486,307
UBS PACE Municipal Fixed Income Investments 5,373,614
UBS PACE Global Fixed Income Investments 90,125,342
UBS PACE Large Co Growth Equity Investments 2,553,145
UBS PACE Small/Medium Co Growth Equity Investments 136,400
UBS PACE International Equity Investments 223,047
UBS PACE International Emerging Markets Equity Investments 2,229,673
</Table>
Morgan Stanley received compensation in connection with these trades, which may
have been in the form of a "mark-up" or "mark-down" of the price of the
securities, a fee from the issuer for maintaining a commercial paper program, or
some other form of compensation. Although the precise amount of this
compensation is not generally known by UBS Global AM, UBS Global AM believes
that under normal circumstances it represents a small portion of the total value
of the transactions.
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.
At January 31, 2006, certain Portfolios owed UBS Global AM service and
distribution fees, and for the six months ended January 31, 2006, 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 $ 27,532 $ 12,343
UBS PACE Government Securities Fixed Income Investments--Class B 2,795 3,540
UBS PACE Government Securities Fixed Income Investments--Class C 21,201 58
UBS PACE Intermediate Fixed Income Investments--Class A 14,379 2,378
UBS PACE Intermediate Fixed Income Investments--Class B 758 179
UBS PACE Intermediate Fixed Income Investments--Class C 4,233 347
UBS PACE Strategic Fixed Income Investments--Class A 4,805 285
UBS PACE Strategic Fixed Income Investments--Class B 1,102 2,917
UBS PACE Strategic Fixed Income Investments--Class C 4,662 7
</Table>
178
<Page>
<Table>
<Caption>
SERVICE AND
DISTRIBUTION FEES SALES CHARGES
PORTFOLIO OWED EARNED
- ------------------------------------------------------------------------------------------------------------
UBS PACE Municipal Fixed Income Investments--Class A $ 22,744 $ 7,693
UBS PACE Municipal Fixed Income Investments--Class B 1,425 10,057
UBS PACE Municipal Fixed Income Investments--Class C 12,519 --
UBS PACE Global Fixed Income Investments--Class A 28,100 3,181
UBS PACE Global Fixed Income Investments--Class B 970 2,876
UBS PACE Global Fixed Income Investments--Class C 5,316 259
UBS PACE Large Co Value Equity Investments--Class A 64,215 16,015
UBS PACE Large Co Value Equity Investments--Class B 5,296 8,848
UBS PACE Large Co Value Equity Investments--Class C 32,245 994
UBS PACE Large Co Growth Equity Investments--Class A 19,474 10,395
UBS PACE Large Co Growth Equity Investments--Class B 1,829 3,104
UBS PACE Large Co Growth Equity Investments--Class C 7,443 441
UBS PACE Small/Medium Co Value Equity Investments--Class A 10,940 11,081
UBS PACE Small/Medium Co Value Equity Investments--Class B 2,261 3,112
UBS PACE Small/Medium Co Value Equity Investments--Class C 11,313 187
UBS PACE Small/Medium Co Growth Equity Investments--Class A 11,898 3,536
UBS PACE Small/Medium Co Growth Equity Investments--Class B 1,013 2,291
UBS PACE Small/Medium Co Growth Equity Investments--Class C 6,586 385
UBS PACE International Equity Investments--Class A 22,568 10,256
UBS PACE International Equity Investments--Class B 632 1,024
UBS PACE International Equity Investments--Class C 6,870 524
UBS PACE International Emerging Markets Equity Investments--Class A 4,558 25,369
UBS PACE International Emerging Markets Equity Investments--Class B 470 166
UBS PACE International Emerging Markets Equity Investments--Class C 4,779 120
</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, 2006, there were no redemption fees paid to UBS
PACE International Equity Investments and UBS PACE International Emerging
Markets Equity Investments.
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 was compensated for these services by PFPC, not
the Portfolios.
For the six months ended January 31, 2006, UBS Financial Services Inc. received
from PFPC, not the Portfolios, total transfer agency related services fees as
follows:
<Table>
<Caption>
TRANSFER AGENCY
RELATED SERVICES
PORTFOLIO FEES EARNED
- ----------------------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 252,237
UBS PACE Government Securities Fixed Income Investments 201,108
UBS PACE Intermediate Fixed Income Investments 111,236
UBS PACE Strategic Fixed Income Investments 227,627
UBS PACE Municipal Fixed Income Investments 50,818
</Table>
179
<Page>
<Table>
<Caption>
TRANSFER AGENCY
RELATED SERVICES
PORTFOLIO FEES EARNED
- ----------------------------------------------------------------------------------------------
UBS PACE Global Fixed Income Investments $ 281,491
UBS PACE Large Co Value Equity Investments 382,749
UBS PACE Large Co Growth Equity Investments 318,039
UBS PACE Small/Medium Co Value Equity Investments 282,289
UBS PACE Small/Medium Co Growth Equity Investments 285,695
UBS PACE International Equity Investments 299,742
UBS PACE International Emerging Markets Equity Investments 243,593
</Table>
For the six months ended January 31, 2006, each Portfolio accrued transfer
agency and related services fees payable to PFPC on each class as follows:
<Table>
<Caption>
TRANSFER AGENCY
AND RELATED
PORTFOLIO SERVICES FEES
- ----------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments--Class A $ 72,876
UBS PACE Government Securities Fixed Income Investments--Class B 2,568
UBS PACE Government Securities Fixed Income Investments--Class C 33,202
UBS PACE Government Securities Fixed Income Investments--Class Y 1,235
UBS PACE Government Securities Fixed Income Investments--Class P 232,740
UBS PACE Intermediate Fixed Income Investments--Class A 49,267
UBS PACE Intermediate Fixed Income Investments--Class B 1,243
UBS PACE Intermediate Fixed Income Investments--Class C 4,507
UBS PACE Intermediate Fixed Income Investments--Class Y 696
UBS PACE Intermediate Fixed Income Investments--Class P 144,959
UBS PACE Strategic Fixed Income Investments--Class A 14,634
UBS PACE Strategic Fixed Income Investments--Class B 1,683
UBS PACE Strategic Fixed Income Investments--Class C 4,490
UBS PACE Strategic Fixed Income Investments--Class Y 177
UBS PACE Strategic Fixed Income Investments--Class P 356,426
UBS PACE Municipal Fixed Income Investments--Class A 27,337
UBS PACE Municipal Fixed Income Investments--Class B 647
UBS PACE Municipal Fixed Income Investments--Class C 5,939
UBS PACE Municipal Fixed Income Investments--Class Y 103
UBS PACE Municipal Fixed Income Investments--Class P 54,233
UBS PACE Global Fixed Income Investments--Class A 100,253
UBS PACE Global Fixed Income Investments--Class B 1,041
UBS PACE Global Fixed Income Investments--Class C 5,948
UBS PACE Global Fixed Income Investments--Class Y 895
UBS PACE Global Fixed Income Investments--Class P 374,842
UBS PACE Large Co Value Equity Investments--Class A 165,815
UBS PACE Large Co Value Equity Investments--Class B 10,215
UBS PACE Large Co Value Equity Investments--Class C 29,300
UBS PACE Large Co Value Equity Investments--Class Y 1,513
UBS PACE Large Co Value Equity Investments--Class P 442,244
</Table>
180
<Page>
<Table>
<Caption>
TRANSFER AGENCY
AND RELATED
PORTFOLIO SERVICES FEES
- ----------------------------------------------------------------------------------------------
UBS PACE Large Co Growth Equity Investments--Class A $ 74,648
UBS PACE Large Co Growth Equity Investments--Class B 5,845
UBS PACE Large Co Growth Equity Investments--Class C 12,064
UBS PACE Large Co Growth Equity Investments--Class Y 498
UBS PACE Large Co Growth Equity Investments--Class P 435,689
UBS PACE Small/Medium Co Value Equity Investments--Class A 29,216
UBS PACE Small/Medium Co Value Equity Investments--Class B 3,781
UBS PACE Small/Medium Co Value Equity Investments--Class C 9,670
UBS PACE Small/Medium Co Value Equity Investments--Class Y 815
UBS PACE Small/Medium Co Value Equity Investments--Class P 412,563
UBS PACE Small/Medium Co Growth Equity Investments--Class A 40,015
UBS PACE Small/Medium Co Growth Equity Investments--Class B 2,837
UBS PACE Small/Medium Co Growth Equity Investments--Class C 7,275
UBS PACE Small/Medium Co Growth Equity Investments--Class Y 300
UBS PACE Small/Medium Co Growth Equity Investments--Class P 422,461
UBS PACE International Equity Investments--Class A 75,731
UBS PACE International Equity Investments--Class B 1,595
UBS PACE International Equity Investments--Class C 9,180
UBS PACE International Equity Investments--Class Y 1,571
UBS PACE International Equity Investments--Class P 404,743
UBS PACE International Emerging Markets Equity Investments--Class A 13,899
UBS PACE International Emerging Markets Equity Investments--Class B 808
UBS PACE International Emerging Markets Equity Investments--Class C 4,365
UBS PACE International Emerging Markets Equity Investments--Class Y 1,122
UBS PACE International Emerging Markets Equity Investments--Class P 376,787
</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 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 Portfolio's
lending agent.
For the six months ended January 31, 2006, UBS Securities LLC earned
compensation from certain Portfolios as the Portfolios' lending agent as
follows:
<Table>
<Caption>
PORTFOLIO COMPENSATION
- ----------------------------------------------------------------------------------------------
UBS PACE Intermediate Fixed Income Investments $ 7,164
UBS PACE Strategic Fixed Income Investments 4,397
UBS PACE Global Fixed Income Investments 4,834
UBS PACE Large Co Value Equity Investments 12,672
UBS PACE Large Co Growth Equity Investments 20,296
UBS PACE Small/Medium Co Value Equity Investments 11,190
UBS PACE Small/Medium Co Growth Equity Investments 36,827
UBS PACE International Equity Investments 38,363
UBS PACE International Emerging Markets Equity Investments 29,614
</Table>
181
<Page>
At January 31, 2006, certain Portfolios owed UBS Securities LLC compensation as
the Portfolios' lending agent as follows:
<Table>
<Caption>
AMOUNTS
PORTFOLIO OWED
- ----------------------------------------------------------------------------------------------
UBS PACE Intermediate Fixed Income Investments $ 1,653
UBS PACE Strategic Fixed Income Investments 145
UBS PACE Global Fixed Income Investments 40
UBS PACE Large Co Value Equity Investments 2,266
UBS PACE Large Co Growth Equity Investments 9,398
UBS PACE Small/Medium Co Value Equity Investments 3,152
UBS PACE Small/Medium Co Growth Equity Investments 3,197
UBS PACE International Equity Investments 8,153
UBS PACE International Emerging Markets Equity Investments 4,099
</Table>
At January 31, 2006, UBS PACE Intermediate Fixed Income Investments, UBS PACE
Large Co Value Equity Investments and UBS PACE Large Co Growth Equity
Investments had securities on loan having a market value of $45,112,177,
$92,608,138 and $65,184,113, respectively. The custodian for UBS PACE
Intermediate Fixed Income Investments, UBS PACE Large Co Value Equity
Investments and UBS PACE Large Co Growth Equity Investments held cash and cash
equivalents as collateral for securities loaned of $41,641,242, $87,741,287 and
$50,299,611, respectively. In addition, UBS PACE Intermediate Fixed Income
Investments, UBS PACE Large Co Value Equity Investments and UBS PACE Large Co
Growth Equity Investments held U.S. Government and agency securities having an
aggregate value of $5,176,158, $8,125,023 and $16,945,588, 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
$ 5,125 Federal Home Loan Mortgage Corp. 11/15/13 4.875% $ 5,176,158
UBS PACE LARGE CO VALUE EQUITY INVESTMENTS
$ 750 U.S. Treasury Bond 08/15/19 8.125% $ 1,032,506
5,038 U.S. Treasury Bond 08/15/21 8.125 7,092,517
$ 8,125,023
UBS PACE LARGE CO GROWTH EQUITY INVESTMENTS
$ 50 U.S. Treasury Bond 08/15/19 8.125% $ 68,834
11,988 U.S. Treasury Bond 08/15/21 8.125 16,876,754
$ 16,945,588
</Table>
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,
participates with other funds managed, advised or sub-advised by UBS Global AM
in a $100 million committed credit facility with State Street Bank and Trust
Company ("Committed Credit Facility"), to be utilized for temporary financing
until the settlement of sales or purchases of portfolio securities, the
repurchase or redemption of shares of 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 commitment fees,
pro rata, based on the relative asset size of the funds in the Committed Credit
Facility. Interest is 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, 2006, the following Portfolio had borrowings:
<Table>
<Caption>
AVERAGE DAILY WEIGHTED AVERAGE
AMOUNT OF BORROWING DAYS ANNUALIZED INTEREST
PORTFOLIO OUTSTANDING OUTSTANDING INTEREST RATE EXPENSE
- ----------------------------------------------------------------------------------------------------------------------------------
UBS PACE International Emerging Markets Equity Investments $ 1,110,071 10 4.589% $ 1,415
</Table>
182
<Page>
UBS PACE Large Co Value Equity Investments and UBS PACE Large Co Growth Equity
Investments participate with 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 commitment fees, 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, 2006, neither
Portfolio borrowed under the JPMorgan Chase Bank Facility.
PURCHASES AND SALES OF SECURITIES
For the six months ended January 31, 2006, aggregate purchases and sales of
portfolio securities, excluding short-term securities and U.S. Government and
agency securities, were as follows:
<Table>
<Caption>
PORTFOLIO PURCHASES SALES
- ----------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments $ 9,000,000 $ 19,011,103
UBS PACE Intermediate Fixed Income Investments 74,242,344 83,532,176
UBS PACE Strategic Fixed Income Investments 75,022,681 62,538,970
UBS PACE Municipal Fixed Income Investments 36,830,241 37,380,996
UBS PACE Global Fixed Income Investments 269,776,951 240,119,504
UBS PACE Large Co Value Equity Investments 496,668,479 461,358,796
UBS PACE Large Co Growth Equity Investments 402,303,006 327,669,479
UBS PACE Small/Medium Co Value Equity Investments 302,318,332 272,728,479
UBS PACE Small/Medium Co Growth Equity Investments 430,154,221 423,383,001
UBS PACE International Equity Investments 269,293,821 193,805,785
UBS PACE International Emerging Markets Equity Investments 127,130,877 108,250,207
</Table>
For the six months ended January 31, 2006, aggregate purchases and sales of U.S.
Government and agency securities, excluding short-term securities, were as
follows:
<Table>
<Caption>
PORTFOLIO PURCHASES SALES
- ----------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments $ 1,735,511,556 $ 1,654,071,025
UBS PACE Intermediate Fixed Income Investments 890,485,771 861,823,623
UBS PACE Strategic Fixed Income Investments 323,930,817 353,961,276
UBS PACE Global Fixed Income Investments 224,373,117 302,655,504
UBS PACE Large Co Value Equity Investments 130,030 5,712,218
UBS PACE Large Co Growth Equity Investments 474,246 3,427,312
</Table>
COMMISSION RECAPTURE PROGRAM
Effective November 1, 2005, the Board approved a brokerage commission recapture
program for the following Portfolios: 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. These Portfolios have established commission
recapture arrangements with certain participating brokers or dealers. If a
Portfolio's investment sub-advisor chooses to execute a transaction through a
participating broker, the broker will rebate a portion of the commission back to
the Portfolio. Any collateral benefit received through participation in the
commission recapture program is directed exclusively to the Portfolio. The
recaptured commissions are reflected on the Statement of Operations within the
net realized and unrealized gains (losses) on investment activities.
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,
183
<Page>
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,
2005 was as follows:
<Table>
<Caption>
TAX-EXEMPT ORDINARY LONG TERM REALIZED
PORTFOLIO INCOME INCOME CAPITAL GAINS
- --------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments -- $ 3,634,028 --
UBS PACE Government Securities Fixed Income Investments -- 13,853,104 --
UBS PACE Intermediate Fixed Income Investments -- 12,091,786 --
UBS PACE Strategic Fixed Income Investments -- 18,253,107 $ 6,785,774
UBS PACE Municipal Fixed Income Investments $ 8,042,174 13,371 --
UBS PACE Global Fixed Income Investments -- 25,076,528 713,584
UBS PACE Large Co Value Equity Investments -- 12,718,790 --
UBS PACE Small/Medium Co Value Equity Investments -- -- 36,913,537
UBS PACE Small/Medium Co Growth Equity Investments -- -- 1,481,531
UBS PACE International Equity Investments -- 4,533,890 --
UBS PACE International Emerging Markets Equity Investments -- 167,545 --
</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, 2006.
At July 31, 2005, 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
UBS PACE UBS PACE UBS PACE UBS PACE INTERNATIONAL
UBS PACE INTERMEDIATE STRATEGIC MUNICIPAL UBS PACE LARGE CO UBS PACE EMERGING
FISCAL MONEY FIXED FIXED FIXED LARGE CO GROWTH INTERNATIONAL MARKETS
YEAR MARKET INCOME INCOME INCOME VALUE EQUITY EQUITY EQUITY EQUITY
ENDING INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS
- --------------------------------------------------------------------------------------------------------------------------------
2006 -- -- -- -- -- -- -- --
2007 $ 161 $ 19,243,361 $ 3,237,458* -- -- -- -- --
2008 -- 3,620,638 -- $ 1,698,670 -- -- -- --
2009 -- -- -- -- -- -- -- --
2010 -- -- -- -- -- $ 49,256,059 -- --
2011 -- 9,353,216 -- -- $ 13,004,616 122,048,908 $ 43,798,411 $ 5,417,228
2012 -- 7,849,781 -- -- -- -- -- --
2013 -- -- -- -- -- -- -- --
TOTAL $ 161 $ 40,066,996 $ 3,237,458 $ 1,698,670 $ 13,004,616 $ 171,304,967 $ 43,798,411 $ 5,417,228
</Table>
* Utilization of these losses may be subject to annual limitations imposed by
the Internal Revenue Code.
During the fiscal year ended July 31, 2005, the following Portfolios utilized
capital loss carryforwards to offset realized gains:
<Table>
<Caption>
CAPITAL LOSS
PORTFOLIO CARRYFORWARDS UTILIZED
- -------------------------------------------------------------------------------------------------
UBS PACE Government Securities Fixed Income Investments $ 413,310
UBS PACE Intermediate Fixed Income Investments 1,293,417
UBS PACE Strategic Fixed Income Investments 3,549,840
UBS PACE Municipal Fixed Income Investments 293,182
UBS PACE Global Fixed Income Investments 3,143,386
UBS PACE Large Co Value Equity Investments 70,498,483
UBS PACE Large Co Growth Equity Investments 36,874,633
UBS PACE Small/Medium Co Growth Equity Investments 3,246,028
UBS PACE International Equity Investments 27,886,252
UBS PACE International Emerging Markets Equity Investments 29,325,948
</Table>
184
<Page>
In accordance with U.S. Treasury regulations, the following Portfolios have
elected to defer realized capital losses, foreign currency losses and passive
foreign investment company losses ("PFIC") arising after October 31, 2004. Such
losses are treated for tax purposes as arising on August 1, 2005:
<Table>
<Caption>
FOREIGN
CAPITAL CURRENCY PFIC
PORTFOLIO LOSSES LOSSES LOSSES
- -----------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 126 -- --
UBS PACE Government Securities Fixed Income Investments 233,126 -- --
UBS PACE Intermediate Fixed Income Investments 1,127,813 -- --
UBS PACE Strategic Fixed Income Investments 659,158 -- --
UBS PACE International Equity Investments -- -- $ 1,693
UBS PACE International Emerging Markets Equity Investments -- $ 341,516 --
</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, 2006 were as follows:
<Table>
<Caption>
NET
TAX GROSS GROSS UNREALIZED
COST OF UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO INVESTMENTS APPRECIATION DEPRECIATION (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market Investments $ 266,623,137 -- -- --
UBS PACE Government Securities Fixed Income Investments 786,540,545 $ 1,038,468 $ (8,637,974) $ (7,599,506)
UBS PACE Intermediate Fixed Income Investments 460,709,267 498,112 (4,401,482) (3,903,370)
UBS PACE Strategic Fixed Income Investments 538,160,242 5,596,816 (7,664,911) (2,068,095)
UBS PACE Municipal Fixed Income Investments 245,571,980 3,343,426 (1,990,533) 1,352,893
UBS PACE Global Fixed Income Investments 441,073,392 8,738,411 (9,455,032) (716,621)
UBS PACE Large Co Value Equity Investments 1,231,703,268 244,122,719 (18,604,151) 225,518,568
UBS PACE Large Co Growth Equity Investments 928,746,224 172,972,611 (17,055,430) 155,917,181
UBS PACE Small/Medium Co Value Equity Investments 477,162,099 77,761,853 (15,035,832) 62,726,021
UBS PACE Small/Medium Co Growth Equity Investments 460,683,062 74,686,505 (7,407,989) 67,278,516
UBS PACE International Equity Investments 908,608,342 215,670,792 (5,562,872) 210,107,920
UBS PACE International Emerging Markets Equity Investments 262,424,050 85,328,699 (3,042,580) 82,286,119
</Table>
185
<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, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
--------------------------- --------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------
Shares sold 61,044 $ 792,993 6,816 $ 89,217 3,455 $ 45,027
Shares repurchased (1,010,360) (13,222,140) (33,386) (435,557) (276,537) (3,610,220)
Shares converted from
Class B to Class A 50,820 661,436 (50,820) (661,436) -- --
Dividends reinvested 225,414 2,924,955 5,133 66,650 64,608 838,552
Net increase (decrease) (673,082) $ (8,842,756) (72,257) $ (941,126) (208,474) $ (2,726,641)
<Caption>
CLASS Y CLASS P
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------
Shares sold 15,360 $ 200,519 4,915,098 $ 64,280,842
Shares repurchased (80,050) (1,045,780) (2,600,302) (33,980,763)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 24,743 321,330 869,601 11,288,220
Net increase (decrease) (39,947) $ (523,931) 3,184,397 $ 41,588,299
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
--------------------------- --------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------
Shares sold 240,905 $ 3,196,768 12,070 $ 159,555 16,006 $ 212,204
Shares repurchased (2,187,606) (28,947,549) (130,237) (1,723,279) (507,096) (6,716,124)
Shares converted from
Class B to Class A 205,408 2,713,937 (205,408) (2,713,937) -- --
Dividends reinvested 206,517 2,732,966 5,889 77,950 51,924 687,575
Net increase (decrease) (1,534,776) $ (20,303,878) (317,686) $ (4,199,711) (439,166) $ (5,816,345)
<Caption>
CLASS Y CLASS P
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------
Shares sold 106,763 $ 1,414,427 8,665,864 $ 114,811,908
Shares repurchased (167,064) (2,211,297) (4,539,551) (60,123,344)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 22,900 303,063 631,549 8,360,228
Net increase (decrease) (37,401) $ (493,807) 4,757,862 $ 63,048,792
</Table>
UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
--------------------------- --------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------
Shares sold 64,260 $ 732,556 4 $ 44 10,870 $ 124,188
Shares repurchased (846,592) (9,656,061) (3,795) (43,334) (111,332) (1,271,969)
Shares converted from
Class B to Class A 45,902 522,775 (45,822) (522,775) -- --
Dividends reinvested 68,073 775,686 715 8,175 5,308 60,604
Net increase (decrease) (668,357) $ (7,625,044) (48,898) $ (557,890) (95,154) $ (1,087,177)
<Caption>
CLASS Y CLASS P
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------
Shares sold 13,204 $ 151,146 5,313,387 $ 60,656,999
Shares repurchased (22,113) (252,921) (3,995,668) (45,547,823)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 1,602 18,272 487,176 5,555,312
Net increase (decrease) (7,307) $ (83,503) 1,804,895 $ 20,664,488
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
--------------------------- --------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------
Shares sold 145,415 $ 1,683,948 7,980 $ 92,835 122,415 $ 1,421,230
Shares repurchased (1,803,042) (20,853,484) (81,133) (940,154) (295,408) (3,420,813)
Shares converted from
Class B to Class A 212,304 2,457,451 (212,022) (2,457,451) -- --
Dividends reinvested 147,589 1,705,775 3,673 42,600 12,260 141,912
Net increase (decrease) (1,297,734) $ (15,006,310) (281,502) $ (3,262,170) (160,733) $ (1,857,671)
<Caption>
CLASS Y CLASS P
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------
Shares sold 24,593 $ 284,804 10,515,412 $ 121,609,951
Shares repurchased (39,334) (454,827) (6,656,590) (77,041,220)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 3,376 39,036 789,224 9,119,897
Net increase (decrease) (11,365) $ (130,987) 4,648,046 $ 53,688,628
</Table>
186
<Page>
UBS PACE STRATEGIC FIXED INCOME INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 99,333 $ 1,363,110 320 $ 4,386 12,283 $ 168,487
Shares repurchased (199,737) (2,745,515) (15,317) (210,288) (77,493) (1,063,161)
Shares converted from
Class B to Class A 49,111 677,870 (49,120) (677,870) -- --
Dividends reinvested 35,901 490,073 1,719 23,489 11,230 153,249
Net increase (decrease) (15,392) $ (214,462) (62,398) $ (860,283) (53,980) $ (741,425)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 11,512 $ 159,384 6,768,502 $ 92,882,125
Shares repurchased (17,705) (242,712) (3,225,623) (44,173,160)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 1,997 27,254 959,179 13,082,119
Net increase (decrease) (4,196) $ (56,074) 4,502,058 $ 61,791,084
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 259,448 $ 3,627,280 13,622 $ 189,336 12,382 $ 173,278
Shares repurchased (590,864) (8,262,922) (77,946) (1,089,750) (101,174) (1,417,727)
Shares converted from
Class B to Class A 162,313 2,264,103 (162,388) (2,264,103) -- --
Dividends reinvested 73,892 1,028,986 9,451 131,517 25,348 352,832
Net increase (decrease) (95,211) $ (1,342,553) (217,261) $ (3,033,000) (63,444) $ (891,617)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 56,004 $ 782,946 11,528,532 $ 161,081,638
Shares repurchased (28,134) (392,683) (7,251,291) (100,855,720)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 3,239 45,055 1,636,913 22,780,244
Net increase (decrease) 31,109 $ 435,318 5,914,154 $ 83,006,162
</Table>
UBS PACE MUNICIPAL FIXED INCOME INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 56,371 $ 699,369 2,586 $ 32,270 1,800 $ 22,353
Shares repurchased (853,615) (10,607,317) (48,795) (607,945) (145,973) (1,811,286)
Shares converted from
Class B to Class A 34,713 430,086 (34,697) (430,086) -- --
Dividends reinvested 96,932 1,204,159 1,091 13,560 17,166 213,236
Net increase (decrease) (665,599) $ (8,273,703) (79,815) $ (992,201) (127,007) $ (1,575,697)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold -- -- 1,858,431 $ 23,096,610
Shares repurchased (7) $ (81) (1,109,570) (13,785,897)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 132 1,638 153,879 1,911,375
Net increase (decrease) 125 $ 1,557 902,740 $ 11,222,088
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 184,806 $ 2,333,285 7,648 $ 96,838 8,468 $ 107,288
Shares repurchased (1,765,519) (22,295,464) (88,323) (1,114,684) (347,520) (4,385,586)
Shares converted from
Class B to Class A 96,378 1,215,210 (96,366) (1,215,210) -- --
Dividends reinvested 213,046 2,688,917 3,358 42,444 37,894 478,372
Net increase (decrease) (1,271,289) $ (16,058,052) (173,683) $ (2,190,612) (301,158) $ (3,799,926)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 18 $ 231 3,274,677 $ 41,365,991
Shares repurchased (1,340) (16,963) (2,097,752) (26,511,581)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 295 3,725 263,129 3,319,688
Net increase (decrease) (1,027) $ (13,007) 1,440,054 $ 18,174,098
</Table>
187
<Page>
UBS PACE GLOBAL FIXED INCOME INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 93,224 $ 1,080,449 4,036 $ 47,059 28,261 $ 324,400
Shares repurchased (1,146,668) (13,260,083) (15,462) (174,610) (61,803) (709,855)
Shares converted from
Class B to Class A 14,292 163,131 (14,267) (163,131) -- --
Dividends reinvested 471,681 5,260,355 2,767 30,849 29,624 329,852
Net increase (decrease) (567,471) $ (6,756,148) (22,926) $ (259,833) (3,918) $ (55,603)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 25,397 $ 290,441 5,192,897 $ 59,960,221
Shares repurchased (150,689) (1,734,889) (2,438,643) (28,121,118)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 39,653 442,288 1,406,529 15,685,211
Net increase (decrease) (85,639) $ (1,002,160) 4,160,783 $ 47,524,314
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 225,024 $ 2,745,706 7,353 $ 89,537 73,884 $ 905,666
Shares repurchased (2,127,576) (25,994,815) (37,812) (457,120) (107,392) (1,312,955)
Shares converted from
Class B to Class A 12,406 151,246 (12,385) (151,246) -- --
Dividends reinvested 564,268 6,963,736 3,740 46,325 30,887 381,495
Net increase (decrease) (1,325,878) $ (16,134,127) (39,104) $ (472,504) (2,621) $ (25,794)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 94,818 $ 1,163,420 8,613,309 $ 105,149,283
Shares repurchased (178,850) (2,170,550) (3,785,099) (46,217,734)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 49,769 613,403 1,196,101 14,744,027
Net increase (decrease) (34,263) $ (393,727) 6,024,311 $ 73,675,576
</Table>
UBS PACE LARGE CO VALUE EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 133,263 $ 2,792,366 3,696 $ 77,593 14,380 $ 301,595
Shares repurchased (1,418,040) (29,656,861) (49,425) (1,031,038) (237,840) (4,957,149)
Shares converted from
Class B to Class A 85,449 1,775,835 (85,635) (1,775,835) -- --
Dividends reinvested 408,762 8,538,961 5,820 122,164 38,531 806,834
Net increase (decrease) (790,566) $ (16,549,699) (125,544) $ (2,607,116) (184,929) $ (3,848,720)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 54,206 $ 1,143,819 6,988,771 $ 146,403,525
Shares repurchased (134,215) (2,802,038) (3,671,066) (76,931,910)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 67,344 1,409,511 1,464,350 30,590,279
Net increase (decrease) (12,665) $ (248,708) 4,782,055 $ 100,061,894
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 237,169 $ 4,518,236 18,861 $ 360,045 34,191 $ 650,755
Shares repurchased (3,635,348) (69,095,333) (214,846) (4,023,485) (472,818) (8,931,212)
Shares converted from
Class B to Class A 717,005 13,504,079 (718,811) (13,504,079) -- --
Dividends reinvested 157,944 3,021,455 -- -- 4,610 88,379
Net increase (decrease) (2,523,230) $ (48,051,563) (914,796) $ (17,167,519) (434,017) $ (8,192,078)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 209,247 $ 4,027,746 13,233,106 $ 253,338,377
Shares repurchased (326,471) (6,183,235) (7,213,855) (137,596,589)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 26,899 515,123 452,878 8,659,028
Net increase (decrease) (90,325) $ (1,640,366) 6,472,129 $ 124,400,816
</Table>
188
<Page>
UBS PACE LARGE CO GROWTH EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 136,955 $ 2,181,009 3,420 $ 52,568 14,642 $ 227,707
Shares repurchased (706,710) (11,259,673) (24,906) (376,301) (118,238) (1,818,106)
Shares converted from
Class B to Class A 50,931 804,265 (52,969) (804,265) -- --
Dividends reinvested -- -- -- -- -- --
Net increase (decrease) (518,824) $ (8,274,399) (74,455) $ (1,127,998) (103,596) $ (1,590,399)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 68,237 $ 1,095,448 9,275,399 $ 149,576,699
Shares repurchased (147,430) (2,430,489) (4,151,372) (66,863,931)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 2,340 38,639 58,525 962,148
Net increase (decrease) (76,853) $ (1,296,402) 5,182,552 $ 83,674,916
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 232,651 $ 3,403,013 7,926 $ 112,555 28,985 $ 411,639
Shares repurchased (1,674,724) (24,482,064) (103,152) (1,446,913) (226,619) (3,239,241)
Shares converted from
Class B to Class A 151,027 2,186,315 (156,001) (2,186,315) -- --
Net increase (decrease) (1,291,046) $ (18,892,736) (251,227) $ (3,520,673) (197,634) $ (2,827,602)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 191,086 $ 2,848,767 17,006,259 $ 253,017,556
Shares repurchased (293,232) (4,297,181) (8,374,548) (123,862,841)
Shares converted from
Class B to Class A -- -- -- --
Net increase (decrease) (102,146) $ (1,448,414) 8,631,711 $ 129,154,715
</Table>
UBS PACE SMALL/MEDIUM CO VALUE EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 72,436 $ 1,423,631 1,153 $ 20,718 5,998 $ 120,213
Shares repurchased (291,300) (5,877,133) (24,379) (472,689) (64,831) (1,265,036)
Shares converted from
Class B to Class A 54,704 1,127,288 (56,932) (1,127,288) -- --
Dividends reinvested 516,462 8,919,301 28,265 464,390 147,996 2,436,018
Net increase (decrease) 352,302 $ 5,593,087 (51,893) $ (1,114,869) 89,163 $ 1,291,195
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 28,551 $ 574,740 2,619,679 $ 53,287,144
Shares repurchased (44,478) (913,551) (1,717,141) (35,197,885)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 46,375 813,889 3,772,385 66,016,733
Net increase (decrease) 30,448 $ 475,078 4,674,923 $ 84,105,992
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 146,353 $ 3,026,191 31,123 $ 605,486 34,122 $ 689,414
Shares repurchased (556,214) (11,383,972) (81,082) (1,588,431) (121,732) (2,403,231)
Shares converted from
Class B to Class A 114,676 2,339,460 (118,313) (2,339,460) -- --
Dividends reinvested 244,664 4,934,880 27,036 527,738 69,868 1,365,226
Net increase (decrease) (50,521) $ (1,083,441) (141,236) $ (2,794,667) (17,742) $ (348,591)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 94,103 $ 1,956,643 4,461,851 $ 92,354,626
Shares repurchased (76,715) (1,567,364) (3,280,232) (67,719,519)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 19,175 390,589 1,425,562 29,010,207
Net increase (decrease) 36,563 $ 779,868 2,607,181 $ 53,645,314
</Table>
189
<Page>
UBS PACE SMALL/MEDIUM CO GROWTH EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 66,793 $ 1,103,692 2,290 $ 36,111 17,851 $ 292,331
Shares repurchased (416,978) (6,830,059) (14,909) (235,792) (61,237) (971,839)
Shares converted from
Class B to Class A 30,421 497,722 (31,734) (497,722) -- --
Dividends reinvested 489,892 7,206,309 11,359 159,137 75,964 1,068,066
Net increase (decrease) 170,128 $ 1,977,664 (32,994) $ (538,266) 32,578 $ 388,558
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 46,050 $ 760,927 3,229,826 $ 53,569,332
Shares repurchased (28,561) (487,083) (1,990,278) (33,146,892)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 36,383 543,931 3,293,146 49,133,736
Net increase (decrease) 53,872 $ 817,775 4,532,694 $ 69,556,176
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 118,813 $ 1,868,161 20,426 $ 313,371 14,635 $ 220,203
Shares repurchased (1,021,850) (16,014,530) (58,745) (892,669) (169,665) (2,578,180)
Shares converted from
Class B to Class A 54,193 843,088 (56,013) (843,088) -- --
Dividends reinvested 14,305 232,734 589 9,273 2,291 36,156
Net increase (decrease) (834,539) $ (13,070,547) (93,743) $ (1,413,113) (152,739) $ (2,321,821)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 127,804 $ 2,048,643 5,695,228 $ 90,852,933
Shares repurchased (109,677) (1,719,002) (4,097,108) (64,805,997)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 823 13,539 70,515 1,159,269
Net increase (decrease) 18,950 $ 343,180 1,668,635 $ 27,206,205
</Table>
UBS PACE INTERNATIONAL EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 80,902 $ 1,329,311 2,458 $ 39,114 11,691 $ 189,800
Shares repurchased (422,370) (6,971,840) (7,157) (112,365) (85,085) (1,371,595)
Shares converted from
Class B to Class A 7,237 116,869 (7,436) (116,869) -- --
Dividends reinvested 74,768 1,259,848 58 953 2,415 40,091
Net increase (decrease) (259,463) $ (4,265,812) (12,077) $ (189,167) (70,979) $ (1,141,704)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 115,971 $ 1,931,569 7,504,932 $ 123,859,353
Shares repurchased (149,058) (2,462,812) (3,561,050) (58,828,565)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 51,414 865,304 721,319 12,132,586
Net increase (decrease) 18,327 $ 334,061 4,665,201 $ 77,163,374
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 208,491 $ 3,056,846 8,746 $ 124,528 44,799 $ 631,687
Shares repurchased (1,115,794) (16,162,878) (14,700) (209,809) (104,347) (1,482,780)
Shares converted from
Class B to Class A 15,391 226,205 (15,731) (226,205) -- --
Dividends reinvested 25,177 372,620 -- -- -- --
Net increase (decrease) (866,735) $ (12,507,207) (21,685) $ (311,486) (59,548) $ (851,093)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 419,174 $ 6,185,638 14,243,186 $ 208,162,588
Shares repurchased (571,956) (8,253,189) (6,927,175) (100,746,533)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 24,728 365,478 250,802 3,704,345
Net increase (decrease) (128,054) $ (1,702,073) 7,566,813 $ 111,120,400
</Table>
190
<Page>
UBS PACE INTERNATIONAL EMERGING MARKETS EQUITY INVESTMENTS
FOR THE SIX MONTHS ENDED JANUARY 31, 2006:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 235,319 $ 4,005,491 6,660 $ 106,242 43,807 $ 706,445
Shares repurchased (126,673) (2,055,159) (5,940) (96,627) (37,009) (592,977)
Shares converted from
Class B to Class A 15,637 251,109 (16,280) (251,109) -- --
Dividends reinvested 9,331 157,418 -- -- 518 8,446
Net increase (decrease) 133,614 $ 2,358,859 (15,560) $ (241,494) 7,316 $ 121,914
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 363,969 $ 6,163,883 2,096,188 $ 34,789,697
Shares repurchased (228,690) (3,793,022) (1,289,119) (21,324,073)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 11,459 195,256 118,259 2,010,406
Net increase (decrease) 146,738 $ 2,566,117 925,328 $ 15,476,030
</Table>
FOR THE YEAR ENDED JULY 31, 2005:
<Table>
<Caption>
CLASS A CLASS B CLASS C
------------------------------- ------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------------
Shares sold 201,368 $ 2,725,911 2,218 $ 29,682 17,564 $ 224,150
Shares repurchased (257,510) (3,294,141) (11,500) (147,232) (67,992) (858,524)
Shares converted from
Class B to Class A 25,999 333,114 (26,895) (333,114) -- --
Dividends reinvested 54 706 -- -- -- --
Net increase (decrease) (30,089) $ (234,410) (36,177) $ (450,664) (50,428) $ (634,374)
<Caption>
CLASS Y CLASS P
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
Shares sold 666,527 $ 9,014,442 4,332,885 $ 57,358,706
Shares repurchased (190,073) (2,429,464) (2,335,253) (30,839,119)
Shares converted from
Class B to Class A -- -- -- --
Dividends reinvested 1,728 22,725 10,835 142,267
Net increase (decrease) 478,182 $ 6,607,703 2,008,467 $ 26,661,854
</Table>
191
<Page>
(This page has been left blank intentionally)
192
<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 FOR THE YEARS ENDED JULY 31,
JANUARY 31, 2006 --------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.017 0.018 0.005 0.009 0.021 0.053
Dividends from net investment income (0.017) (0.018) (0.005) (0.009) (0.021) (0.053)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.70% 1.80% 0.51% 0.96% 2.10% 5.44%
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 264,893 $ 227,528 $ 166,067 $ 123,915 $ 112,001 $ 76,657
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by manager 0.60%* 0.60% 0.60% 0.57% 0.50% 0.50%
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 0.94%* 0.97% 0.96% 1.13% 1.43% 1.00%
Net investment income to average net
assets, net of fee waivers and/or
expense reimbursements by manager 3.36%* 1.85% 0.51% 0.94% 2.03% 5.26%
Net investment income to average net
assets, before fee waivers and/or
expense reimbursements by manager 3.02%* 1.48% 0.15% 0.38% 1.10% 4.76%
</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.
193
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004+ 2003 2002 2001(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.20 $ 13.05 $ 12.81 $ 13.08 $ 12.84 $ 12.65
Net investment income 0.25 0.34 0.26 0.33 0.64 0.39
Net realized and unrealized gains
(losses) from investment activities (0.15) 0.17 0.34 (0.18) 0.29 0.18
Net increase from operations 0.10 0.51 0.60 0.15 0.93 0.57
Dividends from net investment income (0.26) (0.36) (0.36) (0.42) (0.64) (0.38)
Distributions from net realized gains
from investment activities (0.16) -- -- -- (0.05) --
Total dividends and distributions (0.42) (0.36) (0.36) (0.42) (0.69) (0.38)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.88 $ 13.20 $ 13.05 $ 12.81 $ 13.08 $ 12.84
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.83% 3.97% 4.75% 1.13 7.47% 4.61%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 128,652 $ 140,734 $ 159,227 $ 190,933 $ 213,835 $ 224,837
Expenses to average net assets, net of
fee waivers and/or expense reimbursements
by manager 1.09%* 1.08% 1.08% 1.04% 0.96% 0.98%~*
Expenses to average net assets, before
fee waivers and/or expense reimbursements
by manager 1.17%* 1.17% 1.20% 1.20% 1.15% 1.14%~*
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by manager 3.80%* 2.54% 2.08% 2.57% 4.92% 6.09%*%
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 3.72%* 2.45% 1.96% 2.41% 4.73% 5.93%*%
Portfolio turnover 255% 665% 805% 741% 369% 631%
</Table>
* Annualized.
+ 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.
194
<Page>
<Table>
<Caption>
CLASS B
-------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004+ 2003 2002 2001(b)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.20 $ 13.05 $ 12.81 $ 13.08 $ 12.83 $ 12.47
Net investment income 0.19 0.22 0.14 0.23 0.53 0.47
Net realized and unrealized gains
(losses) from investment activities (0.14) 0.19 0.36 (0.18) 0.31 0.37
Net increase from operations 0.05 0.41 0.50 0.05 0.84 0.84
Dividends from net investment income (0.21) (0.26) (0.26) (0.32) (0.54) (0.48)
Distributions from net realized gains
from investment activities (0.16) -- -- -- (0.05) --
Total dividends and distributions (0.37) (0.26) (0.26) (0.32) (0.59) (0.48)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.88 $ 13.20 $ 13.05 $ 12.81 $ 13.08 $ 12.83
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.44% 3.17% 3.94% 0.34% 6.63% 6.96%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 3,239 $ 4,273 $ 8,373 $ 15,056 $ 16,966 $ 13,175
Expenses to average net assets, net of
fee waivers and/or expense reimbursements
by manager 1.85%* 1.84% 1.84% 1.82% 1.76% 1.75%~*
Expenses to average net assets, before
fee waivers and/or expense reimbursements
by manager 1.95%* 1.93% 1.95% 1.94% 1.90% 1.90%~*
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by manager 3.04%* 1.69% 1.33% 1.79% 4.12% 5.31%*
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.94%* 1.60% 1.22% 1.67% 3.99% 5.16%*
Portfolio turnover 255% 665% 805% 741% 369% 631%
<Caption>
CLASS C
-------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004+ 2003 2002 2001(c)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.21 $ 13.06 $ 12.82 $ 13.09 $ 12.84 $ 12.33
Net investment income 0.22 0.27 0.19 0.26 0.57 0.49
Net realized and unrealized gains
(losses) from investment activities (0.15) 0.17 0.34 (0.18) 0.30 0.51
Net increase from operations 0.07 0.44 0.53 0.08 0.87 1.00
Dividends from net investment income (0.23) (0.29) (0.29) (0.35) (0.57) (0.49)
Distributions from net realized gains
from investment activities (0.16) -- -- -- (0.05) --
Total dividends and distributions (0.39) (0.29) (0.29) (0.35) (0.62) (0.49)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.89 $ 13.21 $ 13.06 $ 12.82 $ 13.09 $ 12.84
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.56% 3.40% 4.18% 0.59% 6.99% 8.26%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 32,805 $ 36,372 $ 41,707 $ 50,245 $ 56,849 $ 57,745
Expenses to average net assets, net of
fee waivers and/or expense reimbursements
by manager 1.62%* 1.62% 1.62% 1.57% 1.48% 1.49%~*
Expenses to average net assets, before
fee waivers and/or expense reimbursements
by manager 1.76%* 1.74% 1.78% 1.77% 1.73% 1.70%~*
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by manager 3.28%* 2.00% 1.54% 2.04% 4.40% 5.59%*
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 3.14%* 1.88% 1.38% 1.84% 4.15% 5.38%*
Portfolio turnover 255% 665% 805% 741% 369% 631%
</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
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004+ 2003 2002 2001(b)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.20 $ 13.05 $ 12.80 $ 13.07 $ 12.84 $ 12.65
Net investment income 0.27 0.38 0.29 0.37 0.68 0.39
Net realized and unrealized gains (losses)
from investment activities (0.14) 0.17 0.36 (0.18) 0.29 0.20
Net increase from operations 0.13 0.55 0.65 0.19 0.97 0.59
Dividends from net investment income (0.28) (0.40) (0.40) (0.46) (0.69) (0.40)
Distributions from net realized gains from
investment activities (0.16) -- -- -- (0.05) --
Total dividends and distributions (0.44) (0.40) (0.40) (0.46) (0.74) (0.40)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.89 $ 13.20 $ 13.05 $ 12.80 $ 13.07 $ 12.84
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.04% 4.24% 5.12% 1.46% 7.77% 4.77%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 9,313 $ 10,069 $ 10,441 $ 16,466 $ 19,250 $ 133,649
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager 0.78%* 0.76% 0.76% 0.72% 0.64% 0.66%~*
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager 0.84%* 0.85% 0.88% 0.88% 0.80% 0.84%~*
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by manager 4.11%* 2.88% 2.41% 2.89% 5.32% 6.50%*
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 4.05%* 2.79% 2.30% 2.73% 5.16% 6.32%*
Portfolio turnover 255% 665% 805% 741% 369% 631%
</Table>
* Annualized.
+ 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% of interest expense related to reverse repurchase agreements
during the year 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.
(a) For the period February 2, 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,
2006 ----------------------------------------------------------------
(UNAUDITED) 2005 2004+ 2003 2002 2001
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.20 $ 13.06 $ 12.82 $ 13.09 $ 12.84 $ 12.09
Net investment income 0.27 0.37 0.30 0.36 0.67 0.84
Net realized and unrealized gains (losses)
from investment activities (0.15) 0.16 0.33 (0.18) 0.31 0.82
Net increase from operations 0.12 0.53 0.63 0.18 0.98 1.66
Dividends from net investment income (0.28) (0.39) (0.39) (0.45) (0.68) (0.91)
Distributions from net realized gains from
investment activities (0.16) -- -- -- (0.05) --
Total dividends and distributions (0.44) (0.39) (0.39) (0.45) (0.73) (0.91)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.88 $ 13.20 $ 13.06 $ 12.82 $ 13.09 $ 12.84
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.95% 4.11% 4.97% 1.35% 7.84% 14.21%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 351,650 $ 318,339 $ 252,716 $ 207,466 $ 201,378 $ 195,546
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager 0.87%* 0.87% 0.87% 0.83% 0.70% 0.78%~~
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager 0.96%* 0.96% 1.00% 0.98% 0.93% 0.87%~~
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by manager 4.04%* 2.82% 2.27% 2.76% 5.18% 6.69%
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 3.95%* 2.73% 2.14% 2.61% 4.95% 6.60%
Portfolio turnover 255% 665% 805% 741% 369% 631%
</Table>
197
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002^ 2001(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.44 $ 11.51 $ 11.46 $ 11.13 $ 12.32 $ 12.16
Net investment income 0.18@ 0.34@ 0.29 0.33 0.75 0.35
Net realized and unrealized gains
(losses) from investment activities (0.10) (0.07) 0.06 0.34 (1.19) 0.16
Net increase (decrease) from operations 0.08 0.27 0.35 0.67 (0.44) 0.51
Dividends from net investment income (0.18) (0.34) (0.30) (0.34) (0.75) (0.35)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.34 $ 11.44 $ 11.51 $ 11.46 $ 11.13 $ 12.32
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.73% 2.38% 3.08% 6.05% (3.90)% 4.24%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 67,063 $ 75,331 $ 90,732 $ 113,500 $ 129,520 $ 157,341
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager 1.06%* 1.07% 1.07% 1.03% 0.96% 0.97%*
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager 1.11%* 1.09% 1.13% 1.14% 1.10% 1.03%*
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by manager 3.15%* 2.93% 2.52% 2.86% 6.14% 5.77%*
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 3.10%* 2.91% 2.46% 2.75% 6.00% 5.71%*
Portfolio turnover 237% 221% 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
Metropolitan West Asset Management, LLC to BlackRock Financial Management,
Inc. 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.
198
<Page>
<Table>
<Caption>
CLASS B
-------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002^ 2001(b)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.46 $ 11.53 $ 11.47 $ 11.15 $ 12.33 $ 12.03
Net investment income 0.13@ 0.24@ 0.21 0.24 0.65 0.41
Net realized and unrealized gains
(losses) from investment activities (0.09) (0.06) 0.06 0.33 (1.18) 0.30
Net increase (decrease) from operations 0.04 0.18 0.27 0.57 (0.53) 0.71
Dividends from net investment income (0.14) (0.25) (0.21) (0.25) (0.65) (0.41)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.36 $ 11.46 $ 11.53 $ 11.47 $ 11.15 $ 12.33
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.33% 1.60% 2.37% 5.13% (4.57)% 6.04%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 889 $ 1,458 $ 4,712 $ 9,871 $ 11,626 $ 15,168
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager 1.81%* 1.81% 1.81% 1.79% 1.74% 1.74%*
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager 1.94%* 1.87% 1.85% 1.87% 1.82% 1.78%*
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by manager 2.37%* 2.15% 1.75% 2.10% 5.35% 4.99%*
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.24%* 2.09% 1.71% 2.02% 5.27% 4.95%*
Portfolio turnover 237% 221% 299% 294% 121% 82%
<Caption>
CLASS C
-------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002^ 2001(c)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.46 $ 11.53 $ 11.48 $ 11.15 $ 12.3 $ 11.92
Net investment income 0.15@ 0.28@ 0.24 0.27 0.69 0.44
Net realized and unrealized gains
(losses) from investment activities (0.10) (0.06) 0.05 0.34 (1.19) 0.41
Net increase (decrease) from operations 0.05 0.22 0.29 0.61 (0.50) 0.85
Dividends from net investment income (0.15) (0.29) (0.24) (0.28) (0.68) (0.44)
NET ASSET VALUE, END OF PERIOD $ 11.36 $ 11.46 $ 11.53 $ 11.48 $ 11.1 $ 12.33
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.47% 1.87% 2.56% 5.49% (4.31)% 7.20%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 6,534 $ 7,684 $ 9,583 $ 12,281 $ 15,508 $ 19,529
Expenses to average net assets, net of fee
waivers and/or expense reimbursements
by manager 1.56%* 1.56% 1.56% 1.53% 1.47% 1.48%*
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager 1.60%* 1.59% 1.61% 1.63% 1.58% 1.54%*
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by manager 2.65%* 2.44% 2.03% 2.37% 5.63% 5.26%*
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.61%* 2.41% 1.98% 2.27% 5.52% 5.20%*
Portfolio turnover 237% 221% 299% 294% 121% 82%
</Table>
199
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
UBS PACE INTERMEDIATE FIXED INCOME INVESTMENTS (CONCLUDED)
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
2006 ------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002^ 2001(a)
-----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 11.45 $ 11.52 $ 11.47 $ 11.14 $ 12.33 $ 12.16
Net investment income 0.19@ 0.37@ 0.34 0.36 0.78 0.36
Net realized and unrealized
gains (losses) from
investment activities (0.09) (0.07) 0.04 0.34 (1.19) 0.17
Net increase (decrease) from
operations 0.10 0.30 0.38 0.70 (0.41) 0.53
Dividends from net
investment income (0.20) (0.37) (0.33) (0.37) (0.78) (0.36)
NET ASSET VALUE, END OF
PERIOD $ 11.35 $ 11.45 $ 11.52 $ 11.47 $ 11.14 $ 12.33
- -----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.85% 2.66% 3.34% 6.32% (3.64)% 4.45%
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 1,015 $ 1,108 $ 1,246 $ 1,730 $ 2,589 $ 3,613
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by manager 0.81%* 0.81% 0.81% 0.77% 0.71% 0.71%*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 0.85%* 0.86% 0.87% 0.89% 0.84% 0.79%*
Net investment income to
average net assets, net of
fee waivers and/or expense
reimbursements by manager 3.40%* 3.20% 2.79% 3.15% 6.39% 5.96%*
Net investment income to
average net assets, before
fee waivers and/or expense
reimbursements by manager 3.36%* 3.15% 2.73% 3.03% 6.26% 5.88%*
Portfolio turnover 237% 221% 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 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.
200
<Page>
<Table>
<Caption>
CLASS P
-----------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2006 -------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002^ 2001^
-----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 11.45 $ 11.52 $ 11.47 $ 11.14 $ 12.33 $ 11.82
Net investment income 0.20@ 0.37@ 0.33 0.36 0.77 0.74
Net realized and unrealized
gains (losses) from
investment activities (0.10) (0.07) 0.05 0.34 (1.18) 0.56
Net increase (decrease) from
operations 0.10 0.30 0.38 0.70 (0.41) 1.30
Dividends from net
investment income (0.20) (0.37) (0.33) (0.37) (0.78) (0.79)
NET ASSET VALUE, END OF
PERIOD $ 11.35 $ 11.45 $ 11.52 $ 11.47 $ 11.14 $ 12.33
- -----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.86% 2.66% 3.36% 6.34% (3.64)% 11.39%
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 330,648 $ 313,031 $ 261,390 $ 210,860 $ 161,702 $ 127,718
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by manager 0.80%* 0.80% 0.80% 0.77% 0.70% 0.75%
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 0.81%* 0.82% 0.84% 0.87% 0.82% 0.77%
Net investment income to
average net assets, net of
fee waivers and/or expense
reimbursements by manager 3.42%* 3.22% 2.81% 3.10% 6.45% 6.07%
Net investment income to
average net assets, before
fee waivers and/or expense
reimbursements by manager 3.41%* 3.20% 2.77% 3.00% 6.33% 6.05%
Portfolio turnover 237% 221% 299% 294% 121% 82%
</Table>
201
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 ------------------------------------------------------------ JULY 31,
(UNAUDITED) 2005 2004** 2003 2002 2001(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 13.89 $ 13.88 $ 13.44 $ 13.16 $ 12.91 $ 12.53
Net investment income 0.29@ 0.45@ 0.36@ 0.57@ 0.58@ 0.47
Net realized and
unrealized gains
(losses) from investment
activities (0.31) 0.35 0.44 0.25 0.25 0.38
Net increase (decrease)
from operations (0.02) 0.80 0.80 0.82 0.83 0.85
Dividends from net
investment income (0.37) (0.46) (0.36) (0.54) (0.58) (0.47)
Distributions from net
realized gains from
investment activities -- (0.33) -- -- -- --
Total dividends and
distributions (0.37) (0.79) (0.36) (0.54) (0.58) (0.47)
NET ASSET VALUE, END OF
PERIOD $ 13.50 $ 13.89 $ 13.88 $ 13.44 $ 13.16 $ 12.91
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) (0.12)% 5.88% 6.00% 6.22% 6.55% 6.93%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 22,423 $ 23,269 $ 24,587 $ 26,814 $ 26,242 $ 29,899
Expenses to average net
assets, net of fee
waivers and/or expense
reimbursements by and
recoupments to manager 1.21%+* 1.23%+ 1.21% 1.21% 1.14% 1.14%~*
Expenses to average net
assets, before fee
waivers and/or expense
reimbursements by
manager 1.21%* 1.23% 1.25% 1.25% 1.27% 1.21%~*
Net investment income to
average net assets, net
of fee waivers and/or
expense reimbursements
by and recoupments to
manager 4.24%+* 3.20%+ 2.56% 4.13% 4.41% 5.52%*
Net investment income to
average net assets,
before fee waivers
and/or expense
reimbursements by
manager 4.24%* 3.20% 2.52% 4.09% 4.28% 5.45%*
Portfolio turnover 87% 147% 185% 357% 375% 519%
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
+ The investment manager recouped expenses previously reimbursed 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.
202
<Page>
<Table>
<Caption>
CLASS B
----------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------------------ JULY 31,
(UNAUDITED) 2005 2004** 2003 2002 2001(b)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 13.88 $ 13.88 $ 13.44 $ 13.15 $ 12.91 $ 12.66
Net investment income 0.23@ 0.33@ 0.25@ 0.48@ 0.48@ 0.30
Net realized and
unrealized gains
(losses) from investment
activities (0.29) 0.36 0.45 0.25 0.24 0.25
Net increase (decrease)
from operations (0.06) 0.69 0.70 0.73 0.72 0.55
Dividends from net
investment income (0.32) (0.36) (0.26) (0.44) (0.48) (0.30)
Distributions from net
realized gains from
investment activities -- (0.33) -- -- -- --
Total dividends and
distributions (0.32) (0.69) (0.26) (0.44) (0.48) (0.30)
NET ASSET VALUE, END OF
PERIOD $ 13.50 $ 13.88 $ 13.88 $ 13.44 $ 13.15 $ 12.91
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) (0.43)% 5.06% 5.22% 5.52% 5.66% 4.38%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 1,273 $ 2,175 $ 5,190 $ 11,227 $ 16,337 $ 17,078
Expenses to average net
assets, net of fee
waivers and/or expense
reimbursements by and
recoupments to manager 1.94%* 1.94% 1.94% 1.93% 1.90% 1.91%~*
Expenses to average net
assets, before fee
waivers and/or expense
reimbursements by
manager 2.02%* 1.96% 1.95% 1.95% 1.93% 1.96%~*
Net investment income to
average net assets, net
of fee waivers and/or
expense reimbursements
by and recoupments to
manager 3.41%* 2.45% 1.83% 3.49% 3.64% 4.73%*
Net investment income to
average net assets,
before fee waivers
and/or expense
reimbursements by
manager 3.33%* 2.43% 1.82% 3.47% 3.61% 4.68%*
Portfolio turnover 87% 147% 185% 357% 375% 519%
</Table>
<Table>
<Caption>
CLASS C
----------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------------------ JULY 31,
(UNAUDITED) 2005 2004** 2003 2002 2001(c)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 13.89 $ 13.88 $ 13.44 $ 13.16 $ 12.91 $ 12.43
Net investment income 0.26@ 0.38@ 0.29@ 0.50@ 0.51@ 0.43
Net realized and
unrealized gains
(losses) from investment
activities (0.31) 0.35 0.44 0.25 0.25 0.48
Net increase (decrease)
from operations (0.05) 0.73 0.73 0.75 0.76 0.91
Dividends from net
investment income (0.34) (0.39) (0.29) (0.47) (0.51) (0.43)
Distributions from net
realized gains from
investment activities -- (0.33) -- -- -- --
Total dividends and
distributions (0.34) (0.72) (0.29) (0.47) (0.51) (0.43)
NET ASSET VALUE, END OF
PERIOD $ 13.50 $ 13.89 $ 13.88 $ 13.44 $ 13.16 $ 12.91
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) (0.36)% 5.38% 5.49% 5.69% 6.01% 7.43%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 7,132 $ 8,082 $ 8,960 $ 10,827 $ 13,325 $ 16,743
Expenses to average net
assets, net of fee
waivers and/or expense
reimbursements by and
recoupments to manager 1.69%+* 1.70%+ 1.70% 1.70% 1.65% 1.65%~*
Expenses to average net
assets, before fee
waivers and/or expense
reimbursements by
manager 1.69%* 1.70% 1.71% 1.72% 1.70% 1.71%~*
Net investment income to
average net assets, net
of fee waivers and/or
expense reimbursements
by and recoupments to
manager 3.75%+* 2.73%+ 2.08% 3.67% 3.90% 5.00%*
Net investment income to
average net assets,
before fee waivers
and/or expense
reimbursements by
manager 3.75%* 2.73% 2.07% 3.65% 3.85% 4.94%*
Portfolio turnover 87% 147% 185% 357% 375% 519%
</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
2006 ------------------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004** 2003 2002 2001(a)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 13.88 $ 13.87 $ 13.43 $ 13.16 $ 12.91 $ 12.77
Net investment income 0.32@ 0.51@ 0.40@ 0.61@ 0.61@ 0.36
Net realized and unrealized
gains (losses) from
investment activities (0.30) 0.34 0.44 0.23 0.25 0.14
Net increase from operations 0.02 0.85 0.84 0.84 0.86 0.50
Dividends from net
investment income (0.40) (0.51) (0.40) (0.57) (0.61) (0.36)
Distributions from net
realized gains from
investment activities -- (0.33) -- -- -- --
Total dividends and
distributions (0.40) (0.84) (0.40) (0.57) (0.61) (0.36)
NET ASSET VALUE, END OF
PERIOD $ 13.50 $ 13.88 $ 13.87 $ 13.43 $ 13.16 $ 12.91
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.14% 6.25% 6.27% 6.39% 6.80% 3.98%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 876 $ 959 $ 527 $ 551 $ 342 $ 613
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by and
recoupments to manager 0.86%* 0.89%+ 0.96%+ 0.98% 0.89% 0.88%~~*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 0.86%* 0.89% 0.96% 0.98% 0.99% 0.97%~~*
Net investment income to
average net assets, net of
fee waivers and/or expense
reimbursements by and
recoupments to manager 4.58%* 3.58%+ 2.81%+ 4.19% 4.65% 5.74%*
Net investment income to
average net assets, before
fee waivers and/or expense
reimbursements by manager 4.58%* 3.58% 2.81% 4.19% 4.55% 5.65%*
Portfolio turnover 87% 147% 185% 357% 375% 519%
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
+ The investment manager recouped expenses previously reimbursed 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, 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% and 0.17% on Class Y and Class
P, respectively.
(a) For the period February 2, 2001 (commencement of issuance) through July 31,
2001.
204
<Page>
<Table>
<Caption>
CLASS P
----------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31,
2006 -----------------------------------------------------------------------------
(UNAUDITED) 2005 2004** 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 13.88 $ 13.88 $ 13.44 $ 13.16 $ 12.91 $ 12.21
Net investment income 0.31@ 0.49@ 0.42@ 0 .61@ 0.61@ 0.73
Net realized and unrealized
gains (losses) from
investment activities (0.30) 0.34 0.42 0.25 0.26 0.78
Net increase from operations 0.01 0.83 0.84 0.86 0.87 1.51
Dividends from net
investment income (0.39) (0.50) (0.40) (0.58) (0.62) (0.81)
Distributions from net
realized gains from
investment activities -- (0.33) -- -- -- --
Total dividends and
distributions (0.39) (0.83) (0.40) (0.58) (0.62) (0.81)
NET ASSET VALUE, END OF
PERIOD $ 13.50 $ 13.88 $ 13.88 $ 13.44 $ 13.16 $ 12.91
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.10% 6.13% 6.31% 6.54% 6.86% 12.74%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 478,224 $ 429,250 $ 347,091 $ 252,219 $ 241,140 $ 210,444
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by and
recoupments to manager 0.93%* 0.93% 0.93% 0.90% 0.85% 0.91%~
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 0.98%* 0.98% 0.99% 1.00% 0.96% 0.93%~
Net investment income to
average net assets, net of
fee waivers and/or expense
reimbursements by and
recoupments to manager 4.54%* 3.51% 2.85% 4.44% 4.70% 6.09%
Net investment income to
average net assets, before
fee waivers and/or expense
reimbursements by manager 4.49%* 3.46% 2.79% 4.34% 4.59% 6.07%
Portfolio turnover 87% 147% 185% 357% 375% 519%
</Table>
205
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 ------------------------------------------------------------ JULY 31,
(UNAUDITED) 2005 2004 2003 2002 2001(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.43
Net investment income 0.20@ 0.40@ 0.39 0.45 0.51 0.26
Net realized and unrealized
gains (losses) from
investment activities (0.11) (0.07) 0.00~ (0.14) 0.18 0.09
Net increase from operations 0.09 0.33 0.39 0.31 0.69 0.35
Dividends from net
investment income (0.20) (0.40) (0.39) (0.45) (0.51) (0.26)
NET ASSET VALUE, END OF
PERIOD $ 12.38 $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.71% 2.61% 3.09% 2.42% 5.62% 2.86%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 106,094 $ 115,286 $ 131,888 $ 153,966 $ 167,685 $ 178,299
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by manager 0.98%* 0.96% 0.96% 0.93% 0.87% 0.88%*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 1.04%* 1.03% 1.08% 1.06% 1.05% 1.01%*
Net investment income to
average net assets, net of
fee waivers and/or expense
reimbursements by manager 3.15%* 3.12% 3.03% 3.49% 4.01% 4.16%*
Net investment income to
average net assets, before
fee waivers and/or expense
reimbursements by manager 3.09%* 3.05% 2.91% 3.36% 3.83% 4.03%*
Portfolio turnover 15% 35% 46% 42% 20% 68%
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
~ 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.
206
<Page>
<Table>
<Caption>
CLASS B
----------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------------------ JULY 31,
(UNAUDITED) 2005 2004 2003 2002 2001(b)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.42
Net investment income 0.15@ 0.30@ 0.30 0.35 0.41 0.19
Net realized and unrealized
gains (losses) from
investment activities (0.10) (0.07) (0.01) (0.14) 0.18 0.10
Net increase from operations 0.05 0.23 0.29 0.21 0.59 0.29
Dividends from net
investment income (0.15) (0.30) (0.29) (0.35) (0.41) (0.19)
NET ASSET VALUE, END OF
PERIOD $ 12.39 $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.40% 1.82% 2.31% 1.65% 4.81% 2.32%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 1,654 $ 2,665 $ 4,861 $ 7,870 $ 10,949 $ 14,518
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by manager 1.72%* 1.71% 1.71% 1.68% 1.62% 1.63%*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 1.81%* 1.79% 1.83% 1.80% 1.80% 1.76%*
Net investment income to
average net assets, net of
fee waivers and/or expense
reimbursements by manager 2.40%* 2.37% 2.28% 2.75% 3.26% 3.41%*
Net investment income to
average net assets, before
fee waivers and/or expense
reimbursements by manager 2.31%* 2.29% 2.16% 2.63% 3.08% 3.28%*
Portfolio turnover 15% 35% 46% 42% 20% 68%
</Table>
<Table>
<Caption>
CLASS C
----------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------------------ JULY 31,
(UNAUDITED) 2005 2004 2003 2002 2001(c)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.19
Net investment income 0.17@ 0.33@ 0.32 0.38 0.44 0.31
Net realized and unrealized
gains (losses) from
investment activities (0.11) (0.07) 0.00~ (0.14) 0.18 0.33
Net increase from operations 0.06 0.26 0.32 0.24 0.62 0.64
Dividends from net
investment income (0.17) (0.33) (0.32) (0.38) (0.44) (0.31)
NET ASSET VALUE, END OF
PERIOD $ 12.38 $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.45% 2.07% 2.56% 1.88% 5.07% 5.33%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 19,543 $ 21,291 $ 25,191 $ 28,882 $ 30,776 $ 32,075
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by manager 1.49%* 1.48% 1.48% 1.45% 1.39% 1.40%*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 1.55%* 1.55% 1.59% 1.56% 1.57% 1.53%*
Net investment income to
average net assets, net of
fee waivers and/or expense
reimbursements by manager 2.64%* 2.61% 2.51% 2.96% 3.50% 3.65%*
Net investment income to
average net assets, before
fee waivers and/or expense
reimbursements by manager 2.58%* 2.54% 2.40% 2.85% 3.32% 3.52%*
Portfolio turnover 15% 35% 46% 42% 20% 68%
</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
2006 ------------------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002 2001(a)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.42
Net investment income 0.21@ 0.42@ 0.41 0.48 0.54 0.24
Net realized and unrealized
gains (losses) from
investment activities (0.10) (0.07) 0.00~ (0.14) 0.18 0.10
Net increase from operations 0.11 0.35 0.41 0.34 0.72 0.34
Dividends from net investment
income (0.21) (0.42) (0.41) (0.48) (0.54) (0.24)
NET ASSET VALUE, END OF
PERIOD $ 12.39 $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.90% 2.83% 3.29% 2.65% 5.87% 2.72%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 186 $ 186 $ 200 $ 194 $ 316 $ 399
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by manager 0.75%* 0.74% 0.74% 0.69% 0.63% 0.64%*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 0.86%* 0.85% 0.90% 0.85% 0.84% 0.83%*
Net investment income to
average net assets, net of
fee waivers and/or expense
reimbursements by manager 3.39%* 3.35% 3.26% 3.73% 4.25% 4.40%*
Net investment income to
average net assets, before
fee waivers and/or expense
reimbursements by manager 3.28%* 3.24% 3.10% 3.57% 4.04% 4.21%*
Portfolio turnover 15% 35% 46% 42% 20% 68%
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
~ 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 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.
208
<Page>
<Table>
<Caption>
CLASS P
----------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2006 -----------------------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52 $ 12.15
Net investment income 0.21@ 0.42@ 0.41 0.47 0.54 0.55
Net realized and unrealized
gains (losses) from
investment activities (0.10) (0.07) 0.00~ (0.14) 0.18 0.42
Net increase from operations 0.11 0.35 0.41 0.33 0.72 0.97
Dividends from net investment
income (0.21) (0.42) (0.41) (0.47) (0.54) (0.60)
NET ASSET VALUE, END OF
PERIOD $ 12.39 $ 12.49 $ 12.56 $ 12.56 $ 12.70 $ 12.52
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.90% 2.81% 3.29% 2.64% 5.86% 8.20%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 122,165 $ 111,908 $ 94,445 $ 69,938 $ 61,739 $ 49,110
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by manager 0.76%* 0.76% 0.76% 0.72% 0.64% 0.76%
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 0.84%* 0.82% 0.88% 0.84% 0.85% 0.82%
Net investment income to
average net assets, net of
fee waivers and/or expense
reimbursements by manager 3.38%* 3.33% 3.24% 3.69% 4.24% 4.44%
Net investment income to
average net assets, before
fee waivers and/or expense
reimbursements by manager 3.30%* 3.27% 3.12% 3.57% 4.03% 4.38%
Portfolio turnover 15% 35% 46% 42% 20% 68%
</Table>
209
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002+ 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.76 $ 11.74 $ 11.78 $ 10.91 $ 10.27 $ 10.45
Net investment income 0.13@ 0.24@ 0.22@ 0.27@ 0.35@ 0.30
Net realized and unrealized gains (losses)
from investment activities (0.10) 0.52 0.70 0.92 0.67 (0.18)
Net increase (decrease) from operations 0.03 0.76 0.92 1.19 1.02 0.12
Dividends from net investment income (0.43) (0.72) (0.96) (0.32) -- --
Distributions from net realized gains from
investment activities (0.18) (0.02) -- -- -- --
Distributions from paid in capital -- -- -- -- (0.38) (0.30)
Total dividends and distributions (0.61) (0.74) (0.96) (0.32) (0.38) (0.30)
NET ASSET VALUE, END OF PERIOD $ 11.18 $ 11.76 $ 11.74 $ 11.78 $ 10.91 $ 10.27
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.31% 6.33% 7.76% 11.01% 10.20% 1.09%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 130,880 $ 144,325 $ 159,669 $ 176,124 $ 177,870 $ 190,838
Expenses to average net assets, net of
fee waivers and/or expense
reimbursements by manager 1.37%* 1.37%# 1.36% 1.33% 1.24% 1.21%*
Expenses to average net assets, before
fee waivers and/or expense
reimbursements by manager 1.41%* 1.41%# 1.45% 1.45% 1.42% 1.41%*
Net investment income to average net
assets, net of fee waivers and/or
expense reimbursements by manager 2.26%* 1.98% 1.83% 2.32% 3.40% 4.42%*
Net investment income to average net
assets, before fee waivers and/or
expense reimbursements by manager 2.22%* 1.94% 1.74% 2.20% 3.22% 4.22%*
Portfolio turnover 114% 260% 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.
# Includes 0.01% of interest expense related to the reverse repurchase
agreement during the year ended July 31, 2005.
(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 on all share classes, increase net
realized and unrealized gains from investment activities per share by $0.03
on all share classes, 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.
210
<Page>
<Table>
<Caption>
CLASS B
-------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002+ 2001(b)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.78 $ 11.76 $ 11.80 $ 10.93 $ 10.28 $ 10.81
Net investment income 0.09@ 0.15@ 0.13@ 0.18@ 0.27@ 0.18
Net realized and unrealized gains (losses)
from investment activities (0.11) 0.52 0.70 0.92 0.68 (0.54)
Net increase (decrease) from operations (0.02) 0.67 0.83 1.10 0.95 (0.36)
Dividends from net investment income (0.38) (0.63) (0.87) (0.23) -- --
Distributions from net realized gains from
investment activities (0.18) (0.02) -- -- -- --
Distributions from paid in capital -- -- -- -- (0.30) (0.17)
Total dividends and distributions (0.56) (0.65) (0.87) (0.23) (0.30) (0.17)
NET ASSET VALUE, END OF PERIOD $ 11.20 $ 11.78 $ 11.76 $ 11.80 $ 10.93 $ 10.28
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) (0.07)% 5.52% 6.94% 10.16% 9.44% (3.34)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 1,122 $ 1,450 $ 1,907 $ 2,233 $ 1,863 $ 2,381
Expenses to average net assets, net of
fee waivers and/or expense
reimbursements by manager 2.12%* 2.12%# 2.11% 2.09% 2.01% 1.98%*
Expenses to average net assets, before
fee waivers and/or expense
reimbursements by manager 2.17%* 2.17%# 2.21% 2.21% 2.29% 2.55%*
Net investment income to average net
assets, net of fee waivers and/or
expense reimbursements by manager 1.52%* 1.22% 1.08% 1.56% 2.65% 3.61%*
Net investment income to average net
assets, before fee waivers and/or
expense reimbursements by manager 1.47%* 1.17% 0.98% 1.44% 2.37% 3.04%*
Portfolio turnover 114% 260% 244% 274% 328% 270%
<Caption>
CLASS C
-------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002+ 2001(c)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.76 $ 11.74 $ 11.78 $ 10.91 $ 10.27 $ 10.38
Net investment income 0.10@ 0.18@ 0.16@ 0.21@ 0.30@ 0.26
Net realized and unrealized gains (losses)
from investment activities (0.10) 0.53 0.70 0.92 0.67 (0.11)
Net increase (decrease) from operations -- 0.71 0.86 1.13 0.97 0.15
Dividends from net investment income (0.40) (0.67) (0.90) (0.26) -- --
Distributions from net realized gains from
investment activities (0.18) (0.02) -- -- -- --
Distributions from paid in capital -- -- -- -- (0.33) (0.26)
Total dividends and distributions (0.58) (0.69) (0.90) (0.26) (0.33) (0.26)
NET ASSET VALUE, END OF PERIOD $ 11.18 $ 11.76 $ 11.74 $ 11.78 $ 10.91 $ 10.27
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.06% 5.82% 7.24% 10.43% 9.63% 1.45%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 8,263 $ 8,736 $ 8,754 $ 9,633 $ 13,025 $ 13,632
Expenses to average net assets, net of
fee waivers and/or expense
reimbursements by manager 1.86%* 1.86%# 1.85% 1.83% 1.76% 1.72%*
Expenses to average net assets, before
fee waivers and/or expense
reimbursements by manager 1.90%* 1.92%# 1.93% 1.97% 1.90% 1.90%*
Net investment income to average net
assets, net of fee waivers and/or
expense reimbursements by manager 1.77%* 1.50% 1.34% 1.84% 2.89% 3.91%*
Net investment income to average net
assets, before fee waivers and/or
expense reimbursements by manager 1.73%* 1.44% 1.26% 1.70% 2.75% 3.73%*
Portfolio turnover 114% 260% 244% 274% 328% 270%
</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
2006 ---------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002+ 2001(a)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.75 $ 11.73 $ 11.78 $ 10.91 $ 10.27 $ 10.73
Net investment income 0.15@ 0.28@ 0.26@ 0.30@ 0.36@ 0.27
Net realized and unrealized gains (losses)
from investment activities (0.10) 0.52 0.69 0.92 0.69 (0.46)
Net increase (decrease) from operations 0.05 0.80 0.95 1.22 1.05 (0.19)
Dividends from net investment income (0.45) (0.76) (1.00) (0.35) -- --
Distributions from net realized gains from
investment activities (0.18) (0.02) -- -- -- --
Distributions from paid in capital -- -- -- -- (0.41) (0.27)
Total dividends and distributions (0.63) (0.78) (1.00) (0.35) (0.41) (0.27)
NET ASSET VALUE, END OF PERIOD $ 11.17 $ 11.75 $ 11.73 $ 11.78 $ 10.91 $ 10.27
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.48% 6.67% 8.01% 11.34% 10.49% (1.76)%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 7,871 $ 9,285 $ 9,673 $ 12,429 $ 10,360 $ 4,825
Expenses to average net assets, net of
fee waivers and/or expense
reimbursements by manager 1.04%~* 1.06%~# 1.05% 1.04% 0.99% 0.95%*
Expenses to average net assets, before
fee waivers and/or expense
reimbursements by manager 1.04%* 1.06%# 1.08% 1.09% 1.08% 1.08%*
Net investment income to average net
assets, net of fee waivers and/or
expense reimbursements by manager 2.59%~* 2.30%~ 2.14% 2.61% 3.62% 4.69%*
Net investment income to average net
assets, before fee waivers and/or
expense reimbursements by manager 2.59%* 2.30% 2.11% 2.56% 3.53% 4.56%*
Portfolio turnover 114% 260% 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 recouped expenses previously reimbursed by the
investment manager on behalf of the Portfolio, not to exceed the expense
cap.
# Includes 0.01% of interest expense related to the reverse repurchase
agreement during the year ended July 31, 2005.
(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 on all share classes, increase net
realized and unrealized gains from investment activities per share by $0.03
on all share classes, 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.
212
<Page>
<Table>
<Caption>
CLASS P
----------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002+ 2001^
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.76 $ 11.74 $ 11.78 $ 10.91 $ 10.27 $ 10.68
Net investment income 0.14@ 0.27@ 0.25@ 0.30@ 0.38@ 0.43
Net realized and unrealized gains (losses)
from investment activities (0.10) 0.52 0.70 0.92 0.67 (0.35)
Net increase (decrease) from operations 0.04 0.79 0.95 1.22 1.05 0.08
Dividends from net investment income (0.44) (0.75) (0.99) (0.35) -- --
Distributions from net realized gains from
investment activities (0.18) (0.02) -- -- -- --
Distributions from paid in capital -- -- -- -- (0.41) (0.49)
Total dividends and distributions (0.62) (0.77) (0.99) (0.35) (0.41) (0.49)
NET ASSET VALUE, END OF PERIOD $ 11.18 $ 11.76 $ 11.74 $ 11.78 $ 10.91 $ 10.27
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 0.44% 6.58% 8.02% 11.31% 10.52% 0.71%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 307,571 $ 274,572 $ 203,450 $ 139,300 $ 114,790 $ 94,085
Expenses to average net assets, net of
fee waivers and/or expense
reimbursements by manager 1.13%* 1.14%# 1.13% 1.07% 0.95% 0.95%
Expenses to average net assets, before
fee waivers and/or expense
reimbursements by manager 1.27%* 1.29%# 1.32% 1.300% 1.27% 1.17%
Net investment income to average net
assets, net of fee waivers and/or
expense reimbursements by manager 2.50%* 2.25% 2.07% 2.57% 3.68% 4.23%
Net investment income to average net
assets, before fee waivers and/or
expense reimbursements by manager 2.36%* 2.10% 1.88% 2.34% 3.36% 4.01%
Portfolio turnover 114% 260% 244% 274% 328% 270%
</Table>
213
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 ------------------------------------------------------ JULY 31,
(UNAUDITED) 2005 2004 2003 2002 2001(a)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.64 $ 17.56 $ 15.39 $ 14.83 $ 17.52 $ 16.76
Net investment income (loss) 0.11@ 0.22@ 0.18 0.15 0.12 0.04
Net realized and unrealized gains
(losses) from investment
activities 1.56 3.06 2.13 0.55 (2.71) 0.72
Net increase (decrease) from
operations 1.67 3.28 2.31 0.70 (2.59) 0.76
Dividends from net investment income (0.20) (0.20) (0.14) (0.14) (0.10) --
Distributions from net realized
gains from investment activities (0.47) -- -- -- -- --
Total dividends and distributions (0.67) (0.20) (0.14) (0.14) (0.10) --
NET ASSET VALUE, END OF PERIOD $ 21.64 $ 20.64 $ 17.56 $ 15.39 $ 14.83 $ 17.52
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 8.22% 18.78% 15.06% 4.82% (14.85)% 4.53%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 304,694 $ 306,916 $ 305,359 $ 296,936 $ 325,252 $ 447,486
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 1.13%*~ 1.15%~ 1.21% 1.21% 1.14% 1.13%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 1.26%* 1.27% 1.31% 1.33% 1.28% 1.25%*
Net investment income(loss) to
average net assets, net of fee
waivers and/or expense
reimbursements by and
recoupments to manager 1.02%*~ 1.16%~ 0.98% 1.01% 0.71% 0.54%*
Net investment income(loss) to
average net assets, before fee
waivers and/or expense
reimbursements by manager 0.89%* 1.04% 0.88% 0.89% 0.57% 0.42%*
Portfolio turnover 37% 74% 73% 72% 79% 148%
</Table>
* Annualized.
@ Calculated using the average month-end shares outstanding for the period.
~ The investment manager recouped expenses previously reimbursed 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.
214
<Page>
<Table>
<Caption>
CLASS B
------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 --------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.62 $ 17.50 $ 15.34 $ 14.75 $ 17.46 $ 16.76
Net investment income(loss) 0.01@ 0.07@ 0.02 0.02 (0.02) (0.02)
Net realized and unrealized gains
(losses) from investment
activities 1.56 3.05 2.14 0.57 (2.69) 0.72
Net increase (decrease) from
operations 1.57 3.12 2.16 0.59 (2.71) 0.70
Dividends from net investment income -- -- -- -- -- --
Distributions from net realized
gains from investment activities (0.47) -- -- -- -- --
Total dividends and distributions (0.47) -- -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 21.72 $ 20.62 $ 17.50 $ 15.34 $ 14.75 $ 17.46
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 7.70% 17.83% 14.08% 4.00% (15.52)% 4.18%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 6,286 $ 8,554 $ 23,273 $ 58,523 $ 77,722 $ 131,700
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 2.04%* 2.02%~ 2.04%~ 2.01% 1.92% 1.90%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.18%* 2.13% 2.14% 2.13% 2.06% 2.04%*
Net investment income(loss) to
average net assets, net of fee
waivers and/or expense
reimbursements by and
recoupments to manager 0.10%* 0.36%~ 0.16%~ 0.21% (0.07)% (0.22)%*
Net investment income(loss) to
average net assets, before fee
waivers and/or expense
reimbursements by manager (0.04)%* 0.25% 0.06% 0.09% (0.21)% (0.38)%*
Portfolio turnover 37% 74% 73% 72% 79% 148%
<Caption>
CLASS C
------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 --------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.58 $ 17.50 $ 15.34 $ 14.75 $ 17.46 $ 16.76
Net investment income (loss) 0.02@ 0.07@ 0.03 0.03 (0.02) (0.02)
Net realized and unrealized gains
(losses) from investment
activities 1.56 3.05 2.14 0.57 (2.69) 0.72
Net increase (decrease) from
operations 1.58 3.12 2.17 0.60 (2.71) 0.70
Dividends from net investment income (0.02) (0.04) (0.01) (0.01) -- --
Distributions from net realized
gains from investment activities (0.47) -- -- -- -- --
Total dividends and distributions (0.49) (0.04) (0.01) (0.01) -- --
NET ASSET VALUE, END OF PERIOD $ 21.67 $ 20.58 $ 17.5 $ 15.34 $ 14.75 $ 17.46
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 7.78% 17.87% 14.14% 4.04% (15.52)% 4.18%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA: $ 38,236 $ 40,113 $ 41,701 $ 46,437 $ 52,912 $ 76,977
Net assets, end of period (000's)
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments 1.92%*~ 1.94%~ 2.00%~ 2.00% 1.92% 1.89%*
to manager
Expenses to average net assets,
before fee waivers and/or expense 2.05%* 2.06% 2.10% 2.12% 2.06% 2.04%*
reimbursements by manager
Net investment income(loss) to
average net assets, net of fee
waivers and/or expense
reimbursements by and 0.23%*~ 0.38%~ 0.19%~ 0.22% (0.07)% (0.21)%*
recoupments to manager
Net investment income(loss) to
average net assets, before fee
waivers and/or expense 0.10%* 0.26% 0.09% 0.10% (0.21)% (0.38)%*
reimbursements by manager
Portfolio turnover 37% 74% 73% 72% 79% 148%
</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
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.70 $ 17.60 $ 15.41 $ 14.85 $ 17.54 $ 17.15
Net investment income 0.15@ 0.28@ 0.24 0.20 0.16 0.06
Net realized and unrealized gains
(losses) from investment activities 1.57 3.07 2.14 0.55 (2.71) 0.33
Net increase (decrease) from
operations 1.72 3.35 2.38 0.75 (2.55) 0.39
Dividends from net investment income (0.25) (0.25) (0.19) (0.19) (0.14) --
Distributions from net realized gains
from investment activities (0.47) -- -- -- -- --
Total dividends and distributions (0.72) (0.25) (0.19) (0.19) (0.14) --
NET ASSET VALUE, END OF PERIOD $ 21.70 $ 20.70 $ 17.60 $ 15.41 $ 14.85 $ 17.54
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 8.45% 19.17% 15.49% 5.19% (14.63)% 2.27%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 43,790 $ 42,046 $ 37,336 $ 36,448 $ 41,046 $ 39,612
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 0.77%* 0.83%~ 0.85%~ 0.87% 0.84% 0.85%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 0.90%* 0.95% 0.95% 0.97% 0.93% 0.93%*
Net investment income to average net
assets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager 1.38%* 1.48%~ 1.33%~ 1.35% 0.99% 0.80%*
Net investment income to average net
assets, before fee waivers and/or
expense reimbursements by manager 1.25%* 1.36% 1.23% 1.25% 0.90% 0.72%*
Portfolio turnover 37% 74% 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 recouped expenses previously reimbursed 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.
216
<Page>
<Table>
<Caption>
CLASS P
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2006 -----------------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001^
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.66 $ 17.58 $ 15.40 $ 14.84 $ 17.54 $ 16.35
Net investment income 0.13@ 0.26@ 0.19 0.17 0.15 0.17
Net realized and unrealized gains
(losses) from investment activities 1.57 3.07 2.18 0.57 (2.71) 1.18
Net increase (decrease) from
operations 1.70 3.33 2.37 0.74 (2.56) 1.35
Dividends from net investment income (0.25) (0.25) (0.19) (0.18) (0.14) (0.16)
Distributions from net realized gains
from investment activities (0.47) -- -- -- -- --
Total dividends and distributions (0.72) (0.25) (0.19) (0.18) (0.14) (0.16)
NET ASSET VALUE, END OF PERIOD $ 21.64 $ 20.66 $ 17.58 $ 15.40 $ 14.84 $ 17.54
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 8.37% 19.03% 15.40% 5.09% (14.68)% 8.32%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 981,213 $ 837,901 $ 598,934 $ 400,188 $ 338,732 $ 348,068
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 0.86%* 0.91%~ 0.96% 0.97% 0.89% 0.88%
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 0.99%* 1.03% 1.06% 1.07% 1.03% 0.94%
Net investment income to average net
assets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager 1.28%* 1.38%~ 1.21% 1.24% 0.96% 0.99%
Net investment income to average net
assets, before fee waivers and/or
expense reimbursements by manager 1.15%* 1.26% 1.11% 1.14% 0.82% 0.93%
Portfolio turnover 37% 74% 73% 72% 79% 148%
</Table>
217
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003+ 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.83 $ 13.50 $ 12.78 $ 11.49 $ 16.86 $ 21.61
Net investment loss (0.03)@ (0.02)@ (0.07)@ (0.05)@ (0.08)@ (0.05)
Net realized and unrealized gains
(losses) from investment activities 0.86 2.35 0.79 1.34 (5.29) (4.70)
Net increase (decrease) from
operations 0.83 2.33 0.72 1.29 (5.37) (4.75)
NET ASSET VALUE, END OF PERIOD $ 16.66 $ 15.83 $ 13.50 $ 12.78 $ 11.49 $ 16.86
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 5.24% 17.26% 5.63% 11.23% (31.85)% (21.98)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 91,651 $ 95,264 $ 98,710 $ 109,326 $ 115,625 $ 208,102
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 1.25%* 1.28%~ 1.30%~ 1.25% 1.14% 1.11%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 1.29%* 1.32% 1.36% 1.40% 1.31% 1.25%*
Net investment loss to average net
asets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager (0.41)%* (0.11)%~ (0.48)%~ (0.46)% (0.52)% (0.54)%*
Net investment loss to average net
assets, before fee waivers and/or
expense reimbursements by manager (0.45)%* (0.15)% (0.54)% (0.61)% (0.69)% (0.68)%*
Portfolio turnover 36% 79% 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 recouped expenses previously reimbursed by the
investment manager on behalf of the Portfolio, not to exceed the expense
cap.
218
<Page>
<Table>
<Caption>
CLASS B
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003+ 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.25 $ 13.12 $ 12.53 $ 11.36 $ 16.80 $ 21.61
Net investment loss (0.10)@ (0.13)@ (0.18)@ (0.15)@ (0.19)@ (0.15)
Net realized and unrealized gains
(losses) from investment activities 0.83 2.26 0.77 1.32 (5.25) (4.66)
Net increase (decrease) from
operations 0.73 2.13 0.59 1.17 (5.44) (4.81)
NET ASSET VALUE, END OF PERIOD $ 15.98 $ 15.25 $ 13.12 $ 12.53 $ 11.36 $ 16.80
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 4.79% 16.24% 4.71% 10.30% (32.38)% (22.26)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 2,149 $ 3,185 $ 6,038 $ 10,503 $ 12,853 $ 29,814
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 2.13%* 2.16% 2.16% 2.09% 1.94% 1.88%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.35%* 2.27% 2.27% 2.31% 2.20% 2.09%*
Net investment loss to average net
asets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager (1.29)%* (0.98)% (1.35)% (1.29)% (1.32)% (1.32)%*
Net investment loss to average net
assets, before fee waivers and/or
expense reimbursements by manager (1.51)%* (1.09)% (1.46)% (1.51)% (1.58)% (1.53)%*
Portfolio turnover 36% 79% 82% 107% 57% 64%
<Caption>
CLASS C
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003+ 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.27 $ 13.14 $ 12.54 $ 11.36 $ 16.81 $ 21.61
Net investment loss (0.10)@ (0.13)@ (0.17)@ (0.14)@ (0.19)@ (0.14)
Net realized and unrealized gains
(losses) from investment activities 0.84 2.26 0.77 1.32 (5.26) (4.66)
Net increase (decrease) from
operations 0.74 2.13 0.60 1.18 (5.45) (4.80)
NET ASSET VALUE, END OF PERIOD $ 16.01 $ 15.27 $ 13.14 $ 12.54 $ 11.36 $ 16.81
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 4.85% 16.21% 4.78% 10.39% (32.42)% (22.21)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 8,766 $ 9,944 $ 11,152 $ 12,598 $ 13,845 $ 25,005
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 2.10%~* 2.11%~ 2.11% 2.05% 1.92% 1.87%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.14%* 2.15% 2.19% 2.24% 2.15% 2.07%*
Net investment loss to average net
asets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager (1.26)%~* (0.94)%~ (1.29)% (1.26)% (1.29)% (1.31)%*
Net investment loss to average net
assets, before fee waivers and/or
expense reimbursements by manager (1.30)%* (0.98)% (1.37)% (1.45)% (1.52)% (1.51)%*
Portfolio turnover 36% 79% 82% 107% 57% 64%
</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
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED) 2005 2004 2003~ 2002 2001(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.09 $ 13.67 $ 12.88 $ 11.54 $ 16.88 $ 20.02
Net investment income (loss) (0.00)@# 0.04@ (0.01)@ (0.01)@ (0.03)@ (0.02)
Net realized and unrealized gains
(losses) from investment activities 0.89 2.38 0.80 1.35 (5.31) (3.12)
Net increase (decrease) from
operations 0.89 2.42 0.79 1.34 (5.34) (3.14)
Distributions from net investment
income (0.03) -- -- -- -- --
Distributions from net realized gains
from investment activities -- -- -- -- -- --
Total dividends and distributions (0.03) -- -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 16.95 $ 16.09 $ 13.67 $ 12.88 $ 11.54 $ 16.88
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 5.51% 17.70% 6.13% 11.61% (31.64)% (15.63)%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 25,046 $ 25,014 $ 22,647 $ 23,829 $ 20,990 $ 29,634
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 0.85%~* 0.85% 0.89% 0.90% 0.85% 0.85%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 0.89%* 0.90% 0.93% 0.98% 0.95% 0.91%*
Net investment income (loss) to
average net assets, net of fee
waivers and/or expense
reimbursements by and recoupments
to manager (0.00)%~^* 0.30% (0.07)% (0.11)% (0.23)% (0.27)%*
Net investment income (loss) to
average net assets, before fee
waivers and/or expense
reimbursements by manager (0.04)%* 0.25% (0.11)% (0.19)% (0.33)% (0.33)%*
Portfolio turnover 36% 79% 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.
# Amount of net investment loss 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 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 recouped expenses previously reimbursed by the
investment manager on behalf of the Portfolio, not to exceed the expense
cap.
^ Ratio of net investment loss to average net assets represents less than
0.005%.
220
<Page>
<Table>
<Caption>
CLASS P
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2006 -----------------------------------------------------------------------
(UNAUDITED) 2005 2004 2003~ 2002 2001+
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.02 $ 13.62 $ 12.85 $ 11.53 $ 16.88 $ 29.70
Net investment income (loss) (0.01)@ 0.03@ (0.02)@ (0.03)@ (0.04)@ (0.07)
Net realized and unrealized gains
(losses) from investment activities 0.88 2.37 0.79 1.35 (5.31) (9.42)
Net increase (decrease) from
operations 0.87 2.40 0.77 1.32 (5.35) (9.49)
Distributions from net investment
income (0.02) -- -- -- -- --
Distributions from net realized gains
from investment activities -- -- -- -- -- (3.33)
Total dividends and distributions (0.02) -- -- -- -- (3.33)
NET ASSET VALUE, END OF PERIOD $ 16.87 $ 16.02 $ 13.62 $ 12.85 $ 11.53 $ 16.88
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 5.43% 17.62% 5.99% 11.45% (31.69)% (34.17)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 909,693 $ 780,687 $ 546,373 $ 389,805 $ 299,959 $ 333,003
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 0.95%~ * 0.97%~ 1.00% 1.01% 0.91% 0.89%
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 0.99%* 1.01% 1.05% 1.10% 1.05% 0.94%
Net investment income (loss) to
average net assets, net of fee
waivers and/or expense
reimbursements by and recoupments
to manager (0.11)%~* 0.18%~ (0.18)% (0.22)% (0.28)% (0.36)%
Net investment income (loss) to
average net assets, before fee
waivers and/or expense
reimbursements by manager (0.15)%* 0.14% (0.23)% (0.31)% (0.42)% (0.41)%
Portfolio turnover 36% 79% 82% 107% 57% 64%
</Table>
221
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED)# 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 21.80 $ 19.63 $ 16.49 $ 16.10 $ 17.00 $ 13.91
Net investment income (loss) (0.01)@ (0.05)@ (0.07)@ (0.04)@ (0.05) 0.03
Net realized and unrealized gains
(losses) from investment activities 0.21 4.27 3.21 1.57 (0.79) 3.06
Net increase (decrease) from
operations 0.20 4.22 3.14 1.53 (0.84) 3.09
Dividends from net investment income -- -- -- -- (0.04) --
Distributions from net realized gains
from investment activities (3.88) (2.05) -- (1.14) (0.02) --
Total dividends and distributions (3.88) (2.05) -- (1.14) (0.06) --
NET ASSET VALUE, END OF PERIOD $ 18.12 $ 21.80 $ 19.63 $ 16.49 $ 16.10 $ 17.00
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.80% 22.35% 19.04% 10.88% (4.95)% 22.21%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 52,343 $ 55,299 $ 50,786 $ 44,758 $ 44,464 $ 46,241
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 1.29%* 1.33%~ 1.36%~ 1.36% 1.30% 1.26%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 1.29%* 1.33% 1.36% 1.40% 1.32% 1.28%*
Net investment income (loss) to
average net assets, net of fee
waivers and/or expense
reimbursements by and recoupments
to manager (0.06)%* (0.27)%~ (0.38)%~ (0.27)% (0.19)% 0.41%*
Net investment income (loss) to
average net assets, before fee
waivers and/or expense
reimbursements by manager (0.06)%* (0.27)% (0.38)% (0.31)% (0.21)% 0.39%*
Portfolio turnover 64% 55% 36% 32% 44% 72%
</Table>
* Annualized.
# A portion of the investment advisory function for this Portfolio was
transferred from ICM Asset Management, Inc. to Metropolitan West Capital
Management, LLC and Opus Capital Management, Inc. on October 1, 2005. Ariel
Capital Management, LLC 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.
(b) For the period November 28, 2000 (commencement of issuance) through July
31, 2001.
~ The investment manager recouped expenses previously reimbursed by the
investment manager on behalf of the Portfolio, not to exceed the expense
cap.
222
<Page>
<Table>
<Caption>
CLASS B
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED)# 2005 2004 2003 2002 2001(b)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 21.00 $ 19.12 $ 16.19 $ 15.95 $ 16.94 $ 13.86
Net investment income (loss) (0.09)@ (0.21)@ (0.21)@ (0.16)@ (0.16) (0.03)
Net realized and unrealized gains
(losses) from investment activities 0.19 4.14 3.14 1.54 (0.81) 3.11
Net increase (decrease) from
operations 0.10 3.93 2.93 1.38 (0.97) 3.08
Dividends from net investment income -- -- -- -- -- --
Distributions from net realized gains
from investment activities (3.88) (2.05) -- (1.14) (0.02) --
Total dividends and distributions (3.88) (2.05) -- (1.14) (0.02) --
NET ASSET VALUE, END OF PERIOD $ 17.22 $ 21.00 $ 19.12 $ 16.19 $ 15.95 $ 16.94
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.37% 21.38% 18.10% 10.00% (5.72)% 22.22%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 2,692 $ 4,373 $ 6,683 $ 10,877 $ 12,953 $ 12,811
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 2.15%~* 2.14%~ 2.16%~ 2.17% 2.09% 2.03%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.15%~* 2.14% 2.16% 2.20% 2.11% 2.05%*
Net investment income (loss) to
average net assets, net of fee
waivers and/or expense
reimbursements by and recoupments
to manager (0.90)%* (1.09)%~ (1.19)%~ (1.08)% (0.98)% (0.37)%*
Net investment income (loss) to
average net assets, before fee
waivers and/or expense
reimbursements by manager (0.90)%* (1.09)% (1.19)% (1.11)% (1.00)% (0.39)%*
Portfolio turnover 64% 55% 36% 32% 44% 72%
<Caption>
CLASS C
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED)# 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 21.03 $ 19.13 $ 16.19 $ 15.95 $ 16.94 $ 13.91
Net investment income (loss) (0.08)@ (0.20)@ (0.21)@ (0.15)@ (0.17) (0.03)
Net realized and unrealized gains
(losses) from investment activities 0.18 4.15 3.15 1.53 (0.80) 3.06
Net increase (decrease) from
operations 0.10 3.95 2.94 1.38 (0.97) 3.03
Dividends from net investment income -- -- -- -- -- --
Distributions from net realized gains
from investment activities (3.88) (2.05) -- (1.14) (0.02) --
Total dividends and distributions (3.88) (2.05) -- (1.14) (0.02) --
NET ASSET VALUE, END OF PERIOD $ 17.25 $ 21.03 $ 19.13 $ 16.19 $ 15.95 $ 16.94
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.37% 21.48% 18.16% 10.00% (5.72)% 21.78%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 13,447 $ 14,515 $ 13,548 $ 12,759 $ 13,450 $ 13,741
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments to
manager 2.07%* 2.08%~ 2.13%~ 2.16% 2.09% 2.02%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.07%* 2.08% 2.13% 2.19% 2.10% 2.06%*
Net investment income (loss) to
average net assets, net of fee
waivers and/or
expense reimbursements by and
recoupments to manager (0.84)%* (1.03)%~ (1.15)%~ (1.07)% (0.98)% (0.36)%*
Net investment income (loss) to
average net assets, before fee
waivers and/or
expense reimbursements by manager (0.84)%* (1.03)% (1.15)% (1.10)% (0.99)% (0.40)%*
Portfolio turnover 64% 55% 36% 32% 44% 72%
</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
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED)# 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 22.07 $ 19.78 $ 16.56 $ 16.13 $ 17.02 $ 13.69
Net investment income (loss) 0.03@ 0.02@ (0.01)@ (0.01)@ 0.01 0.05
Net realized and unrealized gains
(losses) from investment activities 0.21 4.32 3.23 1.58 (0.81) 3.28
Net increase (decrease) from
operations 0.24 4.34 3.22 1.57 (0.80) 3.33
Dividends from net investment income -- -- -- -- (0.07) --
Distributions from net realized gains
from investment activities (3.88) (2.05) -- (1.14) (0.02) --
Total dividends and distributions (3.88) (2.05) -- (1.14) (0.09) --
NET ASSET VALUE, END OF PERIOD $ 18.43 $ 22.07 $ 19.78 $ 16.56 $ 16.13 $ 17.02
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.98% 22.82% 19.44% 11.12% (4.73)% 24.32%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 4,731 $ 4,994 $ 3,754 $ 1,813 $ 1,481 $ 1,699
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 0.97%* 0.98%~ 1.04%~ 1.14% 1.06% 1.00%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 0.97%* 0.98% 1.04% 1.16% 1.08% 1.03%*
Net investment income (loss) to
average net assets, net of fee
waivers and/or expense
reimbursements by and recoupments
to manager 0.27%* 0.08%~ (0.05)%~ (0.05)% 0.07% 0.67%*
Net investment income (loss) to
average net assets, before fee
waivers and/or expense
reimbursements by manager 0.27%* 0.08% (0.05)% (0.07)% 0.05% 0.64%*
Portfolio turnover 64% 55% 36% 32% 44% 72%
</Table>
* Annualized.
# A portion of the investment advisory function for this Portfolio was
transferred from ICM Asset Management, Inc. to Metropolitan West Capital
Management, LLC and Opus Capital Management, Inc. on October 1, 2005. Ariel
Capital Management, LLC continues to provide a portion of the investment
advisory function.
@ 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 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 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 recouped expenses previously reimbursed by the
investment manager on behalf of the Portfolio, not to exceed the expense
cap.
224
<Page>
<Table>
<Caption>
CLASS P
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2006 -----------------------------------------------------------------------
(UNAUDITED)# 2005 2004 2003 2002 2001^
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 22.02 $ 19.78 $ 16.58 $ 16.14 $ 17.02 $ 13.33
Net investment income (loss) 0.01@ (0.02)@ (0.03)@ (0.00)+@ 0.02 0.14
Net realized and unrealized gains
(losses) from investment activities 0.21 4.31 3.23 1.58 (0.81) 3.71
Net increase (decrease) from
operations 0.22 4.29 3.20 1.58 (0.79) 3.85
Dividends from net investment income -- -- -- -- (0.07) (0.16)
Distributions from net realized gains
from investment activities (3.88) (2.05) -- (1.14) (0.02) --
Total dividends and distributions (3.88) (2.05) -- (1.14) (0.09) (0.16)
NET ASSET VALUE, END OF PERIOD $ 18.36 $ 22.02 $ 19.78 $ 16.58 $ 16.14 $ 17.02
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.87% 22.55% 19.30% 11.18% (4.67)% 29.20%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 391,021 $ 366,083 $ 277,254 $ 204,028 $ 179,315 $ 224,026
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 1.16%~* 1.16% 1.16% 1.11% 0.99% 0.97%
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 1.16%* 1.17% 1.20% 1.25% 1.10% 0.99%
Net investment income (loss) to
average net assets, net of fee
waivers and/or expense
reimbursements by and recoupments
to manager 0.07%~* (0.10)% (0.17)% (0.01)% 0.12% 0.98%
Net investment income (loss) to
average net assets, before fee
waivers and/or expense
reimbursements by manager 0.07%* (0.11)% (0.21)% (0.15)% 0.01% 0.96%
Portfolio turnover 64% 55% 36% 32% 44% 72%
</Table>
225
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED)+ 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.52 $ 14.08 $ 13.08 $ 10.84 $ 13.65 $ 17.19
Net investment loss (0.06)@ (0.14)@ (0.13)@ (0.10)@ (0.11)@ (0.04)
Net realized and unrealized gains
(losses) from investment activities 0.78 3.64 1.13 2.34 (2.70) (3.50)
Net increase (decrease) from
operations 0.72 3.50 1.00 2.24 (2.81) (3.54)
Distributions from net realized gains
from investment activities (2.37) (0.06) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 15.87 $ 17.52 $ 14.08 $ 13.08 $ 10.84 $ 13.65
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 5.19% 24.91% 7.65% 20.66% (20.59)% (20.59)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 57,370 $ 60,328 $ 60,239 $ 63,435 $ 61,535 $ 89,283
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 1.32%* 1.33%~ 1.37%~ 1.38% 1.30% 1.21%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 1.32%* 1.33% 1.37% 1.41% 1.34% 1.29%*
Net investment loss to average net
assets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager (0.71)%* (0.92)%~ (0.88)%~ (0.87)% (0.88)% (0.56)%*
Net investment loss to average net
assets, before fee waivers and/or
expense reimbursements by manager (0.71)%* (0.92)% (0.88)% (0.90)% (0.92)% (0.64)%*
Portfolio turnover 103% 60% 85% 50% 48% 68%
</Table>
* Annualized.
+ A portion of the investment advisory function for this Portfolio was
transferred from Delaware Management Co., Inc. to Forstmann-Leff
Associates, LLC and Riverbridge Partners, LLC on October 1, 2005.
@ 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 recouped expenses previously reimbursed 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.
226
<Page>
<Table>
<Caption>
CLASS B
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED)+ 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.86 $ 13.68 $ 12.82 $ 10.71 $ 13.60 $ 17.19
Net investment loss (0.13)@ (0.28)@ (0.24)@ (0.19)@ (0.20)@ (0.09)
Net realized and unrealized gains
(losses) from investment activities 0.74 3.52 1.10 2.30 (2.69) (3.50)
Net increase (decrease) from
operations 0.61 3.24 0.86 2.11 (2.89) (3.59)
Distributions from net realized gains
from investment activities (2.37) (0.06) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 15.10 $ 16.86 $ 13.68 $ 12.82 $ 10.71 $ 13.60
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 4.72% 23.73% 6.71% 19.70% (21.25)% (20.88)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 1,217 $ 1,915 $ 2,836 $ 5,334 $ 6,795 $ 16,620
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments
to manager 2.23%* 2.27% 2.23% 2.24% 2.08% 1.98%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.30%* 2.28% 2.24% 2.30% 2.22% 2.12%*
Net investment loss to average net
assets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager (1.60)%* (1.85)% (1.74)% (1.72)% (1.63)% (1.24)%*
Net investment loss to average net
assets, before fee waivers and/or
expense reimbursements by manager (1.67)%* (1.86)% (1.75)% (1.78)% (1.77)% (1.38)%*
Portfolio turnover 103% 60% 85% 50% 48% 68%
<Caption>
CLASS C
---------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 -------------------------------------------------------- JULY 31,
(UNAUDITED)+ 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.90 $ 13.70 $ 12.83 $ 10.71 $ 13.60 $ 17.19
Net investment loss (0.12)@ (0.26)@ (0.24)@ (0.18)@ (0.21)@ (0.09)
Net realized and unrealized gains
(losses) from investment activities 0.75 3.52 1.11 2.30 (2.68) (3.50)
Net increase (decrease) from
operations 0.63 3.26 0.87 2.12 (2.89) (3.59)
Distributions from net realized gains
from investment activities (2.37) (0.06) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 15.16 $ 16.90 $ 13.70 $ 12.83 $ 10.71 $ 13.60
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 4.84% 23.84% 6.78% 19.79% (21.25)% (20.88)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 7,971 $ 8,337 $ 8,850 $ 9,459 $ 9,380 $ 13,654
Expenses to average net assets, net
of fee waivers and/or expense
reimbursements by and recoupments to
manager 2.11%* 2.15%~ 2.16%~ 2.18% 2.08% 1.97%*
Expenses to average net assets,
before fee waivers and/or expense
reimbursements by manager 2.11%* 2.15% 2.16% 2.22% 2.14% 2.09%*
Net investment loss to average net
assets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager (1.51)%* (1.74)%~ (1.68)%~ (1.67)% (1.65)% (1.24)%*
Net investment loss to average net
assets, before fee waivers and/or
expense reimbursements by manager (1.51)%* (1.74)% (1.68)% (1.71)% (1.71)% (1.36)%*
Portfolio turnover 103% 60% 85% 50% 48% 68%
</Table>
227
<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
2006 ---------------------------------------------------------------- JULY 31,
(UNAUDITED)+ 2005 2004 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 17.74 $ 14.21 $ 13.15 $ 10.87 $ 13.68 $ 14.93
Net investment loss (0.03)@ (0.09)@ (0.07)@ (0.08)@ (0.02)@ (0.02)
Net realized and unrealized
gains (losses) from
investment activities 0.81 3.68 1.13 2.36 (2.79) (1.23)
Net increase (decrease)
from investment
operations 0.78 3.59 1.06 2.28 (2.81) (1.25)
Distributions from net
realized gains from
investment activities (2.37) (0.06) -- -- -- --
NET ASSET VALUE, END OF
PERIOD $ 16.15 $ 17.74 $ 14.21 $ 13.15 $ 10.87 $ 13.68
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 5.48% 25.32% 8.06% 20.97% (20.54)% (8.37)%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 4,562 $ 4,057 $ 2,980 $ 1,372 $ 284 $ 390
Expenses to average net
assets, net of fee
waivers and/or expense
reimbursements by and
recoupments to manager 0.94%* 0.96% 0.97%~ 1.22%~ 1.04%~ 0.95%*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 0.94%* 0.96% 0.97% 1.16% 1.00% 1.13%*
Net investment loss to
average net assets, net
of fee waivers and/or
expense reimbursements
by and recoupments to
manager (0.34)%* (0.55)% (0.50)%~ (0.69)%~ (0.21)%~ (0.26)%*
Net investment loss to
average net assets,
before fee waivers and/or
expense reimbursements by
manager (0.34)%* (0.55)% (0.50)% (0.63)% (0.17)% (0.44)%*
Portfolio turnover 103% 60% 85% 50% 48% 68%
</Table>
* Annualized.
+ A portion of the investment advisory function for this Portfolio was
transferred from Delaware Management Co., Inc. to Forstmann-Leff Associates,
LLC and Riverbridge Partners, LLC on October 1, 2005.
@ 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.
~ The investment manager recouped expenses previously reimbursed 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.
228
<Page>
<Table>
<Caption>
CLASS P
---------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2006 ----------------------------------------------------------------------------
(UNAUDITED)+ 2005 2004 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 17.72 $ 14.22 $ 13.18 $ 10.88 $ 13.67 $ 30.27
Net investment loss (0.04)@ (0.11)@ (0.10)@ (0.06)@ (0.07)@ (0.07)
Net realized and unrealized
gains (losses) from
investment activities 0.80 3.67 1.14 2.36 (2.72) (8.06)
Net increase (decrease)
from investment
operations 0.76 3.56 1.04 2.30 (2.79) (8.13)
Distributions from net
realized gains from
investment activities (2.37) (0.06) -- -- -- (8.47)
NET ASSET VALUE, END OF
PERIOD $ 16.11 $ 17.72 $ 14.22 $ 13.18 $ 10.88 $ 13.67
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 5.37% 25.08% 7.89% 21.14% (20.41)% (30.93)%
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 397,325 $ 356,839 $ 262,516 $ 216,911 $ 177,119 $ 244,247
Expenses to average net
assets, net of fee
waivers and/or expense
reimbursements by and
recoupments to manager 1.13%* 1.13% 1.13% 1.09% 0.98% 0.94%
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 1.16%* 1.18% 1.17% 1.22% 1.11% 0.97%
Net investment loss to
average net assets, net
of fee waivers and/or
expense reimbursements
by and recoupments to
manager (0.53)%* (0.72)% (0.65)% (0.57)% (0.56)% (0.48)%
Net investment loss to
average net assets,
before fee waivers and/or
expense reimbursements by
manager (0.56)%* (0.77)% (0.69)% (0.70)% (0.69)% (0.51)%
Portfolio turnover 103% 60% 85% 50% 48% 68%
</Table>
229
<Page>
FINANCIAL HIGHLIGHTS
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
2006 -------------------------------------------------------------- JULY 31,
(UNAUDITED) 2005^ 2004^ 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 15.46 $ 12.96 $ 10.37 $ 10.08 $ 12.58 $ 15.25
Net investment income (loss) 0.03@ 0.21@ 0.04@ 0.09 0.04 0.08
Net realized and unrealized
gains (losses) from
investment activities 2.75 2.35 2.60 0.21 (2.43) (2.75)
Net increase (decrease) from
operations 2.78 2.56 2.64 0.30 (2.39) (2.67)
Dividends from net
investment income (0.23) (0.06) (0.05) (0.01) (0.11) --
NET ASSET VALUE, END OF
PERIOD $ 18.01 $ 15.46 $ 12.96 $ 10.37 $ 10.08 $ 12.58
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 18.08% 19.78% 25.47% 2.95% (19.09)% (17.51)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 108,376 $ 97,046 $ 92,590 $ 90,630 $ 94,785 $ 143,163
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by and
recoupments to manager 1.53%+* 1.55%+ 1.59%+ 1.58% 1.52% 1.40%*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 1.53%* 1.55% 1.59% 1.62% 1.60% 1.50%*
Net investment income (loss)
to average net assets, net
of fee waivers and/or
expense reimbursements by
and recoupments to manager 0.35%+* 1.45%+ 0.33%+ 0.92% 0.20% 1.10%*
Net investment income (loss)
to average net assets,
before fee waivers and/or
expense reimbursements by
manager 0.35%* 1.45% 0.33% 0.88% 0.12% 1.00%*
Portfolio turnover 23% 39% 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 Advisors Ltd. on April 1, 2004. Delaware International
Advisors 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 recouped expenses previously reimbursed 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.
230
<Page>
<Table>
<Caption>
CLASS B
------------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 -------------------------------------------------------------- JULY 31,
(UNAUDITED) 2005^ 2004^ 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 15.07 $ 12.71 $ 10.23 $ 10.05 $ 12.53 $ 15.25
Net investment income (loss) (0.05)@ 0.05@ (0.09)@ (0.03) (0.03) 0.02
Net realized and unrealized
gains (losses) from
investment activities 2.69 2.31 2.57 0.21 (2.45) (2.74)
Net increase (decrease) from
operations 2.64 2.36 2.48 0.18 (2.48) (2.72)
Dividends from net
investment income (0.02) -- -- -- -- --
NET ASSET VALUE, END OF
PERIOD $ 17.69 $ 15.07 $ 12.71 $ 10.23 $ 10.05 $ 12.53
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 17.55% 18.57% 24.24% 1.79% (19.79)% (17.84)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 761 $ 831 $ 976 $ 1,235 $ 2,023 $ 4,630
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by and
recoupments to manager 2.50%+* 2.55%+ 2.63% 2.58% 2.37% 2.17%*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 2.50%* 2.55% 2.64% 2.65% 2.62% 2.43%*
Net investment income (loss)
to average net assets, net
of fee waivers and/or
expense reimbursements by
and recoupments to manager (0.56)%+* 0.39%+ (0.73)% (0.18)% (0.73)% 0.29%*
Net investment income (loss)
to average net assets,
before fee waivers and/or
expense reimbursements by
manager (0.56)%* 0.39% (0.74)% (0.25)% (0.98)% 0.03%*
Portfolio turnover 23% 39% 117% 88% 109% 60%
<Caption>
CLASS C
------------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 -------------------------------------------------------------- JULY 31,
(UNAUDITED) 2005^ 2004^ 2003 2002 2001(a)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 15.16 $ 12.76 $ 10.25 $ 10.04 $ 12.53 $ 15.25
Net investment income (loss) (0.03)@ 0.09@ (0.06)@ 0.00~ (0.05) 0.02
Net realized and unrealized
gains (losses) from
investment activities 2.69 2.31 2.57 0.21 (2.42) (2.74)
Net increase (decrease) from
operations 2.66 2.40 2.51 0.21 (2.47) (2.72)
Dividends from net
investment income (0.09) -- -- -- (0.02) --
NET ASSET VALUE, END OF
PERIOD $ 17.73 $ 15.16 $ 12.76 $ 10.25 $ 10.04 $ 12.53
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 17.58% 18.81% 24.49% 2.09% (19.75)% (17.84)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) $ 8,215 $ 8,099 $ 7,576 $ 7,598 $ 8,972 $ 13,304
Expenses to average net
assets, net of fee waivers
and/or expense
reimbursements by and
recoupments to manager 2.33%*+ 2.35%+ 2.44%+ 2.41% 2.30% 2.16%*
Expenses to average net
assets, before fee waivers
and/or expense
reimbursements by manager 2.33%* 2.35% 2.44% 2.48% 2.42% 2.31%*
Net investment income (loss)
to average net assets, net
of fee waivers and/or
expense reimbursements by
and recoupments to manager (0.42)%*+ 0.64%+ (0.53)%+ 0.05% (0.59)% 0.34%*
Net investment income (loss)
to average net assets,
before fee waivers and/or
expense reimbursements by
manager (0.42)%* 0.64% (0.53)% (0.02)% (0.71)% 0.19%*
Portfolio turnover 23% 39% 117% 88% 109% 60%
</Table>
231
<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
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005^ 2004^ 2003 2002 2001(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.49 $ 12.98 $ 10.37 $ 10.09 $ 12.59 $ 14.96
Net investment income 0.07@ 0.28@ 0.10@ 0.13 0.07 0.04
Net realized and unrealized gains (losses)
from investment activities 2.74 2.36 2.60 0.19 (2.43) (2.41)
Net increase from payments by advisor -- -- -- -- -- --
Net increase (decrease) from operations 2.81 2.64 2.70 0.32 (2.36) (2.37)
Dividends from net investment income (0.30) (0.13) (0.09) (0.04) (0.14) --
Distributions from net realized gains from
investment activities -- -- -- -- -- --
Total dividends and distributions (0.30) (0.13) (0.09) (0.04) (0.14) --
NET ASSET VALUE, END OF PERIOD $ 18.00 $ 15.49 $ 12.98 $ 10.37 $ 10.09 $ 12.59
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 18.28% 20.35% 26.12% 3.24% (18.84)% (15.84)%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 52,774 $ 45,107 $ 39,474 $ 33,813 $ 45,674 $ 45,414
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager 1.07%* 1.11% 1.15% 1.21%+ 1.20% 1.14%*
Expenses to average net assets, before fee
waivers and/or expense reimbursements by
manager 1.07%* 1.11% 1.15% 1.19% 1.20% 1.19%*
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by and recoupments to manager 0.79%* 1.93% 0.80% 1.25%+ 0.61% 1.11%*
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 0.79%* 1.93% 0.80% 1.27% 0.61% 1.06%*
Portfolio turnover 23% 39% 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
Septmenber 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 recouped expenses previously reimbursed by the
investment manager on behalf of the Porfolio, 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.
232
<Page>
<Table>
<Caption>
CLASS P
-------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2006 ----------------------------------------------------------------
(UNAUDITED) 2005^ 2004^ 2003 2002 2001
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.46 $ 12.96 $ 10.36 $ 10.08 $ 12.59 $ 18.67
Net investment income 0.05@ 0.27@ 0.09@ 0.11 0.06 0.06
Net realized and unrealized gains (losses)
from investment activities 2.76 2.34 2.59 0.20 (2.43) (4.88)
Net increase from payments by advisor -- -- -- -- -- 0.00~
Net increase (decrease) from operations 2.81 2.61 2.68 0.31 (2.37) (4.82)
Dividends from net investment income (0.28) (0.11) (0.08) (0.03) (0.14) (0.04)
Distributions from net realized gains from
investment activities -- -- -- -- -- (1.22)
Total dividends and distributions (0.28) (0.11) (0.08) (0.03) (0.14) (1.26)
NET ASSET VALUE, END OF PERIOD $ 17.99 $ 15.46 $ 12.96 $ 10.36 $ 10.08 $ 12.59
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 18.33% 20.16% 25.93% 3.10% (18.93)% (26.97)%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 810,986 $ 625,091 $ 425,956 $ 250,224 $ 203,148 $ 198,643
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager 1.18%* 1.24%+ 1.30% 1.35%+ 1.30% 1.13%
Expenses to average net assets, before fee
waivers and/or expense reimbursements by
manager 1.18%* 1.24% 1.30% 1.31% 1.34% 1.17%
Net investment income to average net assets,
net of fee waivers and/or expense
reimbursements by and recoupments to manager 0.66%* 1.83%+ 0.73% 1.21%+ 0.52% 0.36%
Net investment income to average net assets,
before fee waivers and/or expense
reimbursements by manager 0.66%* 1.83% 0.73% 1.25% 0.48% 0.32%
Portfolio turnover 23% 39% 117% 88% 109% 60%
</Table>
233
<Page>
UBS PACE SELECT ADVISORS TRUST
FINANCIAL HIGHLIGHTS
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
2006 ----------------------------------------------------- JULY 31,
(UNAUDITED) 2005^ 2004 2003^ 2002 2001(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.13 $ 10.55 $ 8.88 $ 7.74 $ 8.01 $ 9.82
Net investment income (loss) 0.09@ 0.15@ 0.02@ 0.07@ (0.03) 0.04
Net realized and unrealized gains
(losses) from investment activities 4.01 4.43 1.65 1.07 (0.24) (1.85)
Net increase (decrease) from operations 4.10 4.58 1.67 1.14 (0.27) (1.81)
Dividends from net investment income (0.14) (0.00)# -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 19.09 $ 15.13 $ 10.55 $ 8.88 $ 7.74 $ 8.01
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 27.24% 43.42% 18.81% 14.73% (3.37)% (18.43)%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 23,621 $ 16,691 $ 11,965 $ 9,810 $ 5,566 $ 8,219
Expenses to average net assets, net of
fee waivers and/or expense
reimbursements by and recoupments
to manager 1.96%*~ 2.09%~ 2.13%~ 2.18% 1.87% 1.76%*
Expenses to average net assets, before
fee waivers and/or expense
reimbursements by manager 1.96%* 2.09% 2.13% 2.36% 2.27% 2.06%*
Net investment income (loss) to average
net asets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager 1.07%*~ 1.13%~ 0.20%~ 0.91% (0.23)% 0.87%*
Net investment income (loss) to average
net assets, before fee waivers and/or
expense reimbursements by manager 1.07%* 1.13% 0.20% 0.73% (0.63)% 0.57%*
Portfolio turnover 42% 119% 128% 214% 129% 121%
</Table>
* Annualized.
# Amount of dividend paid represents less than $0.005 per share.
+ Amount represents 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 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 recouped expenses previously reimbursed 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.
234
<Page>
<Table>
<Caption>
CLASS B
--------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ----------------------------------------------------- JULY 31,
(UNAUDITED) 2005^ 2004 2003^ 2002 2001(b)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.55 $ 10.25 $ 8.70 $ 7.66 $ 7.98 $ 9.14
Net investment income (loss) 0.00+@ 0.01@ (0.09)@ (0.04)@ (0.11) 0.01
Net realized and unrealized gains
(losses) from investment activities 3.88 4.29 1.64 1.08 (0.21) (1.17)
Net increase (decrease) from operations 3.88 4.30 1.55 1.04 (0.32) (1.16)
Dividends from net investment income -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 18.43 $ 14.55 $ 10.25 $ 8.70 $ 7.66 $ 7.98
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 26.67% 41.95% 17.82% 13.58% (4.01)% (12.69%)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 588 $ 690 $ 857 $ 2,235 $ 5,426 $ 7,310
Expenses to average net assets, net of
fee waivers and/or expense
reimbursements by and recoupments
to manager 2.95%~* 3.02%~ 3.03%~ 2.91% 2.66% 2.53%*
Expenses to average net assets, before
fee waivers and/or expense
reimbursements by manager 2.95%* 3.02% 3.03% 3.18% 3.05% 2.85%*
Net investment income (loss) to average
net asets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager 0.06%~* 0.11~% (0.90)%~ (0.51)% (1.05)% 0.11%*
Net investment income (loss) to average
net assets, before fee waivers and/or
expense reimbursements by manager 0.06%* 0.11% (0.90)% (0.78)% (1.44)% (0.21)%*
Portfolio turnover 42% 119% 128% 214% 129% 121%
<Caption>
CLASS C
--------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, FOR THE YEARS ENDED JULY 31, PERIOD ENDED
2006 ----------------------------------------------------- JULY 31,
(UNAUDITED) 2005^ 2004 2003^ 2002 2001(c)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.58 $ 10.25 $ 8.69 $ 7.66 $ 7.98 $ 9.13
Net investment income (loss) 0.02@ 0.04@ (0.07)@ (0.01)@ (0.10) (0.01)
Net realized and unrealized gains
(losses) from investment activities 3.89 4.29 1.63 1.04 (0.22) (1.16)
Net increase (decrease) from operations 3.91 4.33 1.56 1.03 (0.32) (1.15)
Dividends from net investment income (0.03) -- -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 18.46 $ 14.58 $ 10.25 $ 8.69 $ 7.66 $ 7.98
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 26.83% 42.24% 17.95% 13.45% (4.01)% (12.60)%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 5,989 $ 4,625 $ 3,768 $ 3,752 $ 3,497 $ 4,105
Expenses to average net assets, net of
fee waivers and/or expense
reimbursements by and recoupments
to manager 2.76%~* 2.86~% 2.91~ 2.96% 2.67% 2.52%*
Expenses to average net assets, before
fee waivers and/or expense
reimbursements by manager 2.76%* 2.86% 2.91% 3.15% 3.07% 2.92%*
Net investment income (loss) to average
net asets, net of fee waivers and/or
expense reimbursements by and
recoupments to manager 0.28%~* 0.35~% (0.64)%~ (0.17)% (1.05)% 0.16%*
Net investment income (loss) to average
net assets, before fee waivers and/or
expense reimbursements by manager 0.28%* 0.35% (0.64)% (0.36)% (1.45)% (0.24)%*
Portfolio turnover 42% 119% 128% 214% 129% 121%
</Table>
235
<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
2006 ------------------------------------------------- JULY 31,
(UNAUDITED) 2005^ 2004 2003^ 2002 2001(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.30 $ 10.66 $ 8.94 $ 7.77 $ 8.02 $ 10.00
Net investment income (loss) 0.12@ 0.23@ 0.09@ 0.16@ (0.01) 0.05
Net realized and unrealized gains (losses)
from investment activities 4.08 4.45 1.63 1.01 (0.24) (2.03)
Net increase (decrease) from operations 4.20 4.68 1.72 1.17 (0.25) (1.98)
Dividends from net investment income (0.20) (0.04) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 19.30 $ 15.30 $ 10.66 $ 8.94 $ 7.77 $ 8.02
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 27.62% 43.97% 19.24% 15.06% (3.12)% (19.80)%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 21,136 $ 14,518 $ 5,017 $ 1,380 $ 462 $ 549
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager 1.57%* 1.67% 1.71%~ 1.96% 1.67% 1.50%*
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager 1.57%* 1.67% 1.71% 2.01% 2.07% 1.93%*
Net investment income (loss) to average net
assets, net of fee waivers and/or expense
reimbursements by and recoupments
to manager 1.48%* 1.72% 0.78%~ 2.03% (0.05)% 1.11%*
Net investment income (loss) to average net
assets, before fee waivers and/or expense
reimbursements by manager 1.48%* 1.72% 0.78% 1.98% (0.45)% 0.68%*
Portfolio turnover 42% 119% 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 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 9, 2001 (commencement of issuance) through July 31,
2001.
~ The investment manager recouped expenses previously reimbursed by the
investment manager on behalf of the Portfolio, not to exceed the
Portfolio's expense cap.
236
<Page>
<Table>
<Caption>
CLASS P
-------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JANUARY 31, FOR THE YEARS ENDED JULY 31,
2006 ----------------------------------------------------------------
(UNAUDITED) 2005^ 2004 2003^ 2002 2001
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.25 $ 10.64 $ 8.94 $ 7.79 $ 8.02 $ 11.96
Net investment income (loss) 0.09@ 0.17@ 0.04@ 0.07@ 0.01 0.02
Net realized and unrealized gains (losses)
from investment activities 4.06 4.45 1.66 1.08 (0.24) (3.96)
Net increase (decrease) from operations 4.15 4.62 1.70 1.15 (0.23) (3.94)
Dividends from net investment income (0.15) (0.01) -- -- -- --
NET ASSET VALUE, END OF PERIOD $ 19.25 $ 15.25 $ 10.64 $ 8.94 $ 7.79 $ 8.02
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 27.34% 43.46% 19.02% 14.76% (2.87)% (32.94)%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $ 269,427 $ 199,403 $ 117,746 $ 78,462 $ 62,376 $ 65,703
Expenses to average net assets, net of fee
waivers and/or expense reimbursements by
and recoupments to manager 1.97~* 2.00% 2.00% 1.84% 1.50% 1.50%
Expenses to average net assets, before fee
waivers and/or expense reimbursements
by manager 1.97%* 2.05% 2.08% 2.30% 2.18% 1.82%
Net investment income (loss) to average net
assets, net of fee waivers and/or expense
reimbursements by and recoupments
to manager 1.07~* 1.28% 0.37% 0.98% 0.13% 0.24%
Net investment income (loss) to average net
assets, before fee waivers and/or expense
reimbursements by manager 1.07%* 1.23% 0.29% 0.52% (0.55)% (0.08)%
Portfolio turnover 42% 119% 128% 214% 129% 121%
</Table>
237
<Page>
UBS PACE SELECT ADVISORS TRUST
GENERAL INFORMATION (UNAUDITED)
PROXY VOTING POLICIES, PROCEDURES AND RECORD (ALL PORTFOLIOS EXCEPT UBS PACE
MONEY MARKET INVESTMENTS)
You may obtain a description of the Portfolios' (1) proxy voting policies, (2)
proxy voting procedures and (3) information regarding how the Portfolios voted
any proxies related to portfolio securities during the 12-month period ended
June 30, 2005, without charge, upon request by contacting the Portfolios
directly at 1-800-647 1568, online on the Portfolios' Web site:
www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC's Web site
(http://www.sec.gov). (This does not apply to UBS PACE Money Market Investments
because that Portfolio does not own voting securities.)
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 Web site at http://www.sec.gov. The Portfolios' 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
Portfolios upon request by calling 1-800-647 1568.
SHAREHOLDER MEETING RESULTS
A special meeting of shareholders of UBS PACE Select Advisors Trust (the
"Trust") was held on December 21, 2005. 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 (each
a "Fund") are the twelve portfolios comprising the Trust. Shareholders of all
twelve portfolios of the Trust voted together as a single class in the election
of board members.
At the meeting, Richard Q. Armstrong, David J. Beaubien, Alan S. Bernikow,
Richard R. Burt, Meyer Feldberg, Bernard H. Garil, Heather Richardson Higgins
and William D. White were elected to serve as trustees for an indefinite term
until their successors are duly elected and qualified or until they retire,
resign or are earlier removed. The shares were voted as indicated below:
<Table>
<Caption>
TO VOTE FOR OR WITHHOLD IN THE ELECTION OF: SHARES VOTED FOR SHARES WITHHOLD AUTHORITY
Richard Q. Armstrong 632,581,067.546 18,706,812.516
David J. Beaubien 632,539,131.079 18,748,748.983
Alan S. Bernikow 633,197,848.624 18,090,031.438
Richard R. Burt 633,658,989.204 17,628,890.858
Meyer Feldberg 632,351,672.348 18,936,207.714
Bernard H. Garil 633,248,571.531 18,039,308.531
Heather Richardson Higgins 632,855,317.350 18,432,562.712
William D. White 632,319,876.693 18,968,003.369
</Table>
To the best of the Trust's knowledge, there were no "broker non-votes." (Broker
non-votes are shares held in street name for which the broker indicates that
instructions have not been received from the beneficial owners or other persons
entitled to vote and for which the broker does not have discretionary voting
authority.) Mr. White retired from the board at the end of January 2006.
238
<Page>
UBS PACE SELECT ADVISORS TRUST
BOARD APPROVAL OF SUB-ADVISORY AGREEMENTS (UNAUDITED)
UBS PACE SMALL/MEDIUM CO VALUE EQUITY INVESTMENTS AND UBS PACE SMALL/MEDIUM CO
GROWTH EQUITY INVESTMENTS
BACKGROUND
At meetings of UBS PACE Select Advisors Trust's (the "Trust") board on September
20, 2005, October 24, 2005, November 16, 2005 and February 8, 2006 (for UBS PACE
Small/Medium Co Growth Equity Investments (the "Small/Medium Co Growth
Portfolio")) and September 20, 2005 (for UBS PACE Small/Medium Co Value Equity
Investments (the "Small/Medium Co Value Portfolio" and, together with the
Small/Medium Co Growth Portfolio, the "Small/Medium Co Portfolios")), the
members of the board, including the Trustees who are not "interested persons" of
the Trust ("Independent Trustees"), as defined in the Investment Company Act of
1940, as amended (the "1940 Act"), considered and approved (a) proposed
sub-advisory agreements between UBS Global Asset Management (US) Inc. ("UBS
Global AM") and Forstmann-Leff Associates, LLC ("Forstmann-Leff") with respect
to the Small/Medium Co Growth Portfolio; (b) the proposed sub-advisory agreement
between UBS Global AM and Riverbridge Partners, LLC ("Riverbridge") with respect
to the Small/Medium Co Growth Portfolio; (c) the proposed sub-advisory agreement
between UBS Global AM and Metropolitan West Capital Management, LLC ("MetWest")
with respect to the Small/Medium Co Value Portfolio; and (d) the proposed
sub-advisory agreement between UBS Global AM and Opus Capital Management, Inc.
("Opus") with respect to the Small/Medium Co Value Portfolio. In considering the
approval of the new sub-advisory agreements, the board of trustees was able to
draw on its knowledge of the Trust, its Portfolios and UBS Global AM. The board
took note of its knowledge of UBS Global AM and the advisory and sub-advisory
agreements for the other Portfolios of the Trust, including the extensive
materials it had reviewed at its recent annual contract renewal meeting for the
Portfolios, and noted that it had at that time received a memorandum from its
independent legal counsel discussing, among other things, the duties of board
members in considering approval of advisory and sub-advisory agreements. At the
meetings, the board was provided with information about the proposed
sub-advisors for the Small/Medium Co Portfolios, including information about the
qualifications, backgrounds and responsibilities of each proposed sub-advisor's
portfolio management team, assets under management and investment philosophy and
process. The board was also provided by UBS Global AM with memoranda with
additional information about each proposed sub-advisor and UBS Global AM's
discussion of its reasons for recommending the proposed sub-advisors to the
board. The board also met with members of the portfolio management team for each
proposed sub-advisor, who discussed with the board their investment
philosophies.
With respect to its approval of Forstmann-Leff as sub-advisor to the
Small/Medium Co Growth Portfolio, the board initially met on September 20, 2005
and approved the proposed sub-advisory agreement, based on the factors discussed
below. Subsequent to its appointment as sub-advisor at the September 20, 2005
meeting, Forstmann-Leff announced a proposed change in its ownership and control
which would have resulted in the assignment and automatic termination of the
Forstmann-Leff sub-advisory agreement under the 1940 Act. Therefore, the board
met on October 24, 2005 to consider a new proposed sub-advisory agreement with
Forstmann-Leff. The initial proposed change in ownership and control did not
occur; however, Forstmann-Leff then announced a proposed management buyout of
that firm which would have resulted in the assignment and automatic termination
of the Forstmann-Leff sub-advisory agreement under the 1940 Act. Therefore, the
board met on November 16, 2005, to consider another new proposed sub-advisory
agreement with Forstmann-Leff, which was approved. After the new agreement was
in place, Forstmann-Leff signed a letter of intent to sell a majority ownership
interest to Angelo Gordon & Co., another asset management firm, which
transaction, when consummated, would also have resulted in the automatic
termination of the new Forstmann-Leff sub-advisory agreement. Thus, at its
February 8, 2006 meeting, the board approved a new sub-advisory agreement
between Forstmann-Leff and UBS Global AM on behalf of Small/Medium Co Growth
Portfolio, to take effect upon the closing of the transaction with Angelo Gordon
& Co. At its October 2005, November 2005 and February 2006 meetings, in addition
to the information and factors discussed below, the board also received
information on the proposed transfers and the new proposed controlling entity or
persons and considered certain other factors, including the effect on
Forstmann-Leff and the portfolio management team of each proposed change of
control, UBS Global AM's continued recommendation of Forstmann-Leff, the
expected continuity of the portfolio management team and the resources which UBS
Global AM believed would be available to Forstmann-Leff after each change in
control. The board also considered that the October 2005, November 2005 and
February 2006 proposed sub-advisory agreements were substantially identical to
the Forstmann-Leff sub-advisory agreement approved by the board in September
2005.
239
<Page>
In its consideration of the approval of the proposed sub-advisory agreements,
the board considered the following factors:
NATURE, EXTENT AND QUALITY OF THE SERVICES UNDER THE SUB-ADVISORY AGREEMENTS
The board took note that at its last annual contract renewal meeting for the
Trust, in connection with its review of the Trust's advisory, sub-advisory and
distribution agreements, it had received and considered extensive information
regarding UBS Global AM and a description of UBS Global AM's role in
coordinating providers of other services to the portfolios, including oversight
of the provision of sub-advisory services by the sub-advisors to the portfolios.
The board's evaluation of the services to be provided by the proposed
sub-advisors to the Small/Medium Co Portfolios took into account the board's
knowledge and familiarity gained as board members of funds in the UBS New York
Fund complex. As noted above, the board also received extensive materials from
UBS Global AM and from the proposed sub-advisors about the sub-advisors,
including memoranda from UBS Global AM discussing its reasons for recommending
the proposed sub-advisors.
The board concluded that, overall, it was satisfied with the nature, extent and
quality of services expected to be provided to the Small/Medium Co Portfolios
under the proposed sub-advisory agreements.
SUB-ADVISORY FEES
For each Small/Medium Co Portfolio, the board reviewed and considered the
proposed contractual sub-advisory fee to be payable by UBS Global AM in light of
the nature, extent and quality of the sub-advisory services anticipated to be
provided by the sub-advisor. The board noted that the compensation to be paid to
the proposed sub-advisors would be paid by UBS Global AM, not the particular
Small/Medium Co Portfolio and, accordingly, that the retention of the
sub-advisors would not increase the fees otherwise incurred by a Small/Medium Co
Portfolio's shareholders. The board also considered the relationship between the
fees being charged by the Small/Medium Co Portfolios' then current sub-advisors
and the proposed sub-advisors and the impact of the fee differentials on the
potential amount retained by UBS Global AM from the amounts it received with
respect to each Small/Medium Co Portfolio.
Taking all of the above into consideration, the board determined that the
proposed sub-advisory fees were reasonable in light of the nature, extent and
quality of the services proposed to be provided to the Small/Medium Co
Portfolios under the sub-advisory agreements.
SMALL/MEDIUM CO PORTFOLIO PERFORMANCE
The board received and considered information with respect to the proposed
sub-advisors' overall investment performance with funds and/or other accounts
similar to the Small/Medium Co Portfolios, to the extent the sub-advisors had
such experience and such information was available. The board noted that, as the
proposed sub-advisors would be new sub-advisors to the Small/Medium Co
Portfolios, the current performance of the Small/Medium Co Portfolios was not as
relevant to the consideration of the approval of the sub-advisory agreements
except as part of their consideration of why UBS Global AM was suggesting the
changes.
ADVISOR PROFITABILITY
Profitability of UBS Global AM or its affiliates in providing services to the
Small/Medium Co Portfolios was not a primary factor considered by the board, as
the sub-advisory fees would be paid by UBS Global AM out of the management fees
paid to it by the Small/Medium Co Portfolios, and not by the Small/Medium Co
Portfolios themselves.
The board noted that UBS Global AM would be paying more for sub-advisory
services to be provided to Small/Medium Co Value Portfolio by Opus and MetWest
than it had been paying to Ariel Capital Management, LLC ("Ariel") or ICM Asset
Management, Inc. ("ICM") for managing portions of the same portfolio. As a
result, UBS Global AM would be retaining less of the compensation it received
from Small/Medium Co Value Portfolio as a result of the changes. (The
sub-advisory agreement with ICM was terminated, and Opus and MetWest became
sub-advisors, effective early October 2005. As a result, Small/Medium Co Value
Portfolio has had three sub-advisors since that time, namely Ariel, Opus and
MetWest.)
The board noted that UBS Global AM would be paying the same or slightly more for
sub-advisory services to be provided to Small/Medium Co Growth Portfolio by
Forstmann-Leff and Riverbridge when compared to the amount it had been paying
Delaware Management Company ("Delaware") for serving as sub-advisor to the
portfolio. (Riverbridge charges a fee at the same rate as Delaware;
Forstmann-Leff charges a slightly higher fee.) As a result, UBS Global AM would
be retaining slightly less of the compensation
240
<Page>
it received from Small/Medium Co Growth Portfolio as a result of the changes.
(Effective early October 2005, Small/Medium Co Growth Portfolio has three
sub-advisors, namely Delaware, Riverbridge and Forstmann-Leff.)
ECONOMIES OF SCALE
The board noted that, as the sub-advisory fee for each Small/Medium Co Portfolio
would be paid by UBS Global AM, not by the Small/Medium Co Portfolio,
consideration of economies of scale with respect specifically to the
sub-advisory fee were not relevant.
OTHER BENEFITS TO THE SUB-ADVISORS
The board was informed by management that the proposed sub-advisors'
relationships with the Small/Medium Co Portfolios would be limited to their
provision of sub-advisory services to the Small/Medium Co Portfolios and that
therefore management believed that the sub-advisors did not receive material
ancillary benefits as a result of their relationships with the Small/Medium Co
Portfolios, with the exception of possible benefits from "soft dollars" (e.g.,
certain brokerage and research services) for the Small/Medium Co Portfolios
(which would also potentially benefit the Small/Medium Co Portfolios).
In light of all of the foregoing, the board approved each proposed sub-advisory
agreement for each Small/Medium Co Portfolio.
No single factor reviewed by the board was identified by the board as the
principal factor in determining whether to approve the sub-advisory agreements.
The Independent Trustees were advised by separate independent legal counsel
throughout the process. The board discussed the proposed approval of the
sub-advisory agreements in private sessions with their independent legal counsel
at which no representatives of UBS Global AM or the sub-advisors were present.
241
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UBS Global Asset Management (US) Inc. is a subsidiary of UBS AG.
All Rights Reserved
www.ubs.com
<Page>
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PRESORTED
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COMPUTERSHARE
UBS GLOBAL ASSET MANAGEMENT (US) INC.
51 West 52nd Street
New York, New York 10019-6114
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[UBS GLOBAL ASSET MANAGEMENT LOGO]
UBS PACE MONEY MARKET INVESTMENTS
SEMIANNUAL REPORT
JANUARY 31, 2006
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UBS PACE MONEY MARKET INVESTMENTS
March 15, 2006
DEAR SHAREHOLDER,
We present you with the semiannual report for UBS PACE Money Market Investments
for the six months ended January 31, 2006.
PERFORMANCE
For the six months ended January 31, 2006, the Portfolio returned 1.70% (before
the deduction of the maximum UBS PACE program fee; after the deduction of the
maximum program fee, the Portfolio returned 0.94%). In comparison, the 90-Day US
T-Bill Index and the Lipper Money Market Funds median returned 1.80% and 1.59%,
respectively. (Returns over various time periods are shown in the "Performance
at a Glance" table on page 4. Please note that the returns shown do not reflect
the deduction of taxes that a shareholder would pay on Portfolio distributions.)
MARKET REVIEW
Although the US economy faced a number of challenges during the reporting
period, including high oil prices, rising short-term interest rates, continuing
geopolitical challenges and a devastating hurricane season, it ultimately proved
to be quite resilient. Gross domestic product (GDP) growth rates for the first
three quarters of the year averaged more than 3.7%, although preliminary
estimates for the fourth quarter came in at 1.6%, which is well below the
current trend.
As expected, the Federal Reserve Board (the "Fed") continued to raise interest
rates in an attempt to temper growth and ward off a potential increase in
inflation. After nine rate hikes from June 2004 through July 2005, the Fed
increased the federal funds rate (or "fed funds" rate, meaning the rate that
banks charge one another for overnight loans) five additional times during the
six-month reporting period. In total, the Fed's 14 rate hikes have driven the
federal funds rate from 1.00% to 4.50%. Also of note, Ben Bernanke replaced Alan
Greenspan as Chairman of the
[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
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Fed when his term expired in February 2006. Mr. Bernanke has pledged continuity
with the Greenspan era, and we believe the market generally regards this
appointment as positive news.
ADVISOR'S COMMENTS
Throughout the period, we emphasized securities with maturities in the two-week
to six-month range. As the period progressed, however, we moved additional
assets into securities with one- to four-week maturities in an attempt to
capitalize on yield opportunities. We also employed a "bulleted" strategy during
the period, in which we targeted securities with maturities shortly before Fed
meetings. This enabled us to take advantage of changes in market yields as
interest rates rose over the reporting period. A bulleted strategy generally
helps performance in a rising rate environment such as this was. From a
weighted-average-maturity perspective, we remained within a fairly narrow range
through the period, typically between 40 and 44 days. This strategy was
beneficial to performance during the reporting period.
We maintained our strategy of emphasizing quality, liquidity and yield
throughout the past six months. With that said, there were no major shifts in
the Portfolio's composition over the period. We did reduce our exposure to
government agency obligations and increased our allocation to corporate floating
rate securities, which appeared attractively valued in the final months of 2005.
Commercial paper remained a substantial part of the Portfolio -- more than 60%
of the Portfolio's net assets at period end -- due to the yield advantages the
sector offered. This positioning helped maintain the Portfolio's overall level
of diversification, and allowed us to meet our liquidity requirements while
seeking to generate incremental yield.
2
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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/ W. Douglas Beck
W. DOUGLAS BECK, CFA
PRESIDENT
UBS PACE Select Advisors Trust
EXECUTIVE 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, 2006. The
views and opinions in this letter were current as of March 15, 2006. They are
not guarantees of performance or investment results and should not be taken as
investment advice. Investment decisions reflect a variety of factors, and we
reserve the right to change our views about individual securities, sectors and
markets at any time. As a result, the views expressed should not be relied upon
as a forecast of the Portfolio's future investment intent. We encourage you to
consult your financial advisor regarding your personal investment program.
3
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PERFORMANCE AT A GLANCE (UNAUDITED)
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED 1/31/06
<Table>
<Caption>
SINCE
6 MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION^
- -------------------------------------------------------------------------------------------------------------------
UBS PACE Money Market
Investments without maximum
UBS PACE program fee* 1.70% 2.87% 1.86% 3.57% 3.65%
UBS PACE Money Market
Investments with maximum
UBS PACE program fee* 0.94 1.33 0.35 2.03 2.10
90-Day U.S. T-Bill Index** 1.80 3.16 2.18 3.71 3.78
Lipper Money Market Funds median 1.59 2.66 1.64 3.38 3.46
</Table>
Average annual total returns for periods ended December 31, 2005, after
deduction of the maximum UBS PACE program fee, were as follows: 1-year period,
1.16%; 5-year period, 0.38%; 10-year period, 2.04%; since inception, 2.10%.
For UBS PACE Money Market Investments, the 7-day current yield for the period
ended January 31, 2006 was 3.85% (without maximum UBS PACE program fee and after
fee waivers/expense reimbursements; the yield was 3.46% before fee
waivers/expense reimbursements). With the maximum UBS PACE program fee, the
7-day current yield was 2.35% after fee waivers/expense reimbursements; the
yield was 1.96% before fee waivers/expense reimbursements. 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 U.S. T-Bills are promissory notes issued by the U.S. 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. PERFORMANCE RESULTS ASSUME REINVESTMENT OF ALL DIVIDENDS AND CAPITAL
GAINS DISTRIBUTIONS AT NET ASSET VALUE ON THE PAYABLE DATES. TOTAL RETURNS FOR
PERIODS OF LESS THAN ONE YEAR HAVE NOT BEEN ANNUALIZED. CURRENT PERFORMANCE MAY
BE HIGHER OR LOWER THAN THE PERFORMANCE DATA QUOTED.
Lipper peer group data calculated by Lipper Inc.; used with permission. The
Lipper median is the return of the fund that places in the middle of a Lipper
peer group.
AN INVESTMENT IN UBS PACE MONEY MARKET INVESTMENTS IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
ALTHOUGH THE PORTFOLIO SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00
PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE PORTFOLIO.
4
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UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
As a shareholder of the Portfolio, you incur two types of costs: (1) ongoing
program fees; and (2) ongoing Portfolio 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, 2005 to January 31,
2006.
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 Portfolio costs only and do not reflect any program fees. Therefore, the
second line in the table is useful in comparing ongoing Portfolio costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these program fees were included, your costs would have
been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
AUGUST 1, 2005 JANUARY 31, 2006 8/01/05 TO 1/31/06
- -------------------------------------------------------------------------------------------------------
Class P Actual $ 1,000.00 $ 1,017.00 $ 3.05
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).
5
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PORTFOLIO STATISTICS (UNAUDITED)
<Table>
<Caption>
CHARACTERISTICS 1/31/06
- ----------------------------------------------------------------------------------------------------
Net Assets (mm) $ 264.9
Number of Securities (excluding U.S. Government Agency Obligations) 64
Weighted Average Maturity 40 days
<Caption>
PORTFOLIO COMPOSITION* 1/31/06
- ----------------------------------------------------------------------------------------------------
Commercial Paper 62.7%
Certificates of Deposit 16.6
Short-Term Corporate Obligations 11.5
U.S. Government Agency Obligations 6.4
Bank Note 2.3
Money Market Funds 1.1
Repurchase Agreement 0.0**
Other Assets Less Liabilities (0.6)
- ----------------------------------------------------------------------------------------------------
Total 100.0%
====================================================================================================
<Caption>
TOP 10 SECURITIES (EXCLUDING U.S. GOVERNMENT AGENCY OBLIGATIONS)* 1/31/06
- ----------------------------------------------------------------------------------------------------
Scaldis Capital 2.6%
Allied Irish Banks 2.4
HSBC Finance 2.3
General Electric Capital 2.3
Bank of America 2.3
SunTrust Bank 2.3
Washington Mutual 2.3
Bryant Park Funding 2.3
Kitty Hawk Funding 2.3
Chariot Funding 2.3
- -----------------------------------------------------------------------------------------------------
Total 23.4%
=====================================================================================================
</Table>
* Weightings represent percentages of the Portfolio's net assets as of
January 31, 2006. 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, 2006.
6
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STATEMENT OF NET ASSETS -- JANUARY 31, 2006 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--6.42%
$ 9,000 Federal Farm Credit Bank 02/01/06 to 4.240 to
02/07/06 4.605%* $ 8,999,182
5,500 Federal Home Loan Bank 03/01/06 to 4.290 to
03/12/06 4.360* 5,499,364
2,500 Federal Home Loan Mortgage Corp. 10/23/06 4.250 2,500,000
- -----------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations (cost--$16,998,546) 16,998,546
=====================================================================================================
BANK NOTE--2.26%
BANKING-U.S.--2.26%
6,000 Bank of America N.A.
(cost--$6,000,000) 03/07/06 4.560* 6,000,000
CERTIFICATES OF DEPOSIT--16.61%
NON-U.S.--7.55%
1,000 Abbey National Treasury Services PLC 03/06/06 4.415 1,000,005
3,500 ABN AMRO Bank NV 01/24/07 4.850 3,500,000
5,000 Barclays Bank PLC 03/13/06 4.455 4,999,954
3,000 BNP Paribas 02/13/06 3.965 3,000,000
2,000 Deutsche Bank AG 08/03/06 4.170 2,000,000
3,000 Fortis Bank NV-SA 07/07/06 3.930 3,000,000
2,500 Svenska Handelsbanken 11/08/06 4.750 2,500,000
- -----------------------------------------------------------------------------------------------------
19,999,959
- -----------------------------------------------------------------------------------------------------
U.S.--9.06%
5,000 American Express Centurion Bank 02/13/06 4.380 5,000,000
2,000 First Tennessee Bank N.A. (Memphis) 03/27/06 4.450 2,000,000
6,000 SunTrust Bank 04/24/06 4.550 6,000,000
6,000 Washington Mutual Bank
Federal Association 02/16/06 4.390 6,000,000
5,000 Wells Fargo Bank N.A. 02/21/06 4.420 5,000,000
- -----------------------------------------------------------------------------------------------------
24,000,000
- -----------------------------------------------------------------------------------------------------
Total Certificates of Deposit (cost--$43,999,959) 43,999,959
=====================================================================================================
COMMERCIAL PAPER@--62.74%
ASSET BACKED-BANKING--1.87%
5,000 Atlantis One Funding 03/30/06 4.530 4,964,138
ASSET BACKED-MISCELLANEOUS--21.78%
5,000 Amsterdam Funding Corp. 02/08/06 4.340 4,995,781
</Table>
7
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<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -----------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@--(CONTINUED)
ASSET BACKED-MISCELLANEOUS--(CONCLUDED)
$ 6,000 Barton Capital LLC 03/02/06 4.430% $ 5,978,588
6,000 Bryant Park Funding LLC 02/09/06 to 4.350 to
02/17/06 4.440 5,992,187
6,000 Chariot Funding LLC 02/15/06 4.410 5,989,710
4,000 Falcon Asset Securitization Corp. 02/07/06 4.330 3,997,113
6,000 Kitty Hawk Funding Corp. 02/15/06 4.400 5,989,733
5,000 Old Line Funding Corp. 02/07/06 4.330 4,996,392
6,000 Preferred Receivables Funding Corp. 02/27/06 4.490 5,980,543
4,000 Thunderbay Funding 04/10/06 4.450 3,966,378
6,000 Windmill Funding Corp. 02/16/06 to 4.390 to
03/24/06 4.490 5,975,430
3,839 Yorktown Capital LLC 02/07/06 to 4.320 to
02/24/06 4.480 3,830,154
- -----------------------------------------------------------------------------------------------------
57,692,009
- -----------------------------------------------------------------------------------------------------
ASSET BACKED-SECURITIES--15.03%
6,000 Beta Finance, Inc. 02/28/06 to 4.370 to
04/12/06 4.450 5,969,585
5,000 Cancara Asset Securitization LLC 02/02/06 4.310 4,999,401
3,000 CC (USA), Inc. (Centauri) 03/20/06 4.380 2,982,845
6,000 Galaxy Funding, Inc. 03/06/06 to
03/22/06 4.410 5,969,865
3,500 Grampian Funding LLC 03/29/06 4.100 3,477,678
4,500 K2 (USA) LLC 02/13/06 to 4.220 to
03/09/06 4.380 4,486,237
1,000 Links Finance LLC 02/09/06 4.230 999,060
7,000 Scaldis Capital LLC 02/27/06 to 4.500 to
04/20/06 4.510 6,954,406
4,000 Solitaire Funding LLC 02/10/06 to 4.260 to
02/17/06 4.350 3,994,038
- -----------------------------------------------------------------------------------------------------
39,833,115
- -----------------------------------------------------------------------------------------------------
BANKING-NON-U.S.--11.26%
2,000 Alliance & Leicester PLC 02/21/06 4.300 1,995,222
6,500 Allied Irish Banks N.A., Inc. 02/16/06 to 4.390 to
04/05/06 4.425 6,458,538
2,500 Bank of Ireland 02/27/06 4.305 2,492,227
4,000 DNB NOR ASA 03/28/06 4.410 3,973,050
5,000 HBOS Treasury Services PLC 03/09/06 4.370 4,978,150
</Table>
8
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<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -----------------------------------------------------------------------------------------------------
COMMERCIAL PAPER@--(CONCLUDED)
BANKING-NON-U.S.--(CONCLUDED)
$ 6,000 KBC Financial Products
International, Ltd. 03/29/06 4.350% $ 5,959,400
1,000 Natexis Banques Populaires
U.S. Finance Co. LLC 04/19/06 4.490 990,396
3,000 Nationwide Building Society 04/12/06 4.470 2,973,925
- -----------------------------------------------------------------------------------------------------
29,820,908
- -----------------------------------------------------------------------------------------------------
BANKING-U.S.--5.08%
4,000 ING (US) Funding LLC 02/06/06 to 4.300 to
03/24/06 4.510 3,991,819
6,000 Nordea N.A., Inc. 02/09/06 to 4.225 to
04/06/06 4.420 5,980,529
3,500 Stadshypotek (Delaware), Inc. 03/21/06 4.470 3,479,140
- -----------------------------------------------------------------------------------------------------
13,451,488
- -----------------------------------------------------------------------------------------------------
BROKERAGE--6.40%
5,000 Bear Stearns Cos., Inc. 03/13/06 4.390 4,975,611
4,000 Credit Suisse First Boston USA, Inc. 02/16/06 to 4.260 to
03/14/06 4.380 3,984,867
5,000 Goldman Sachs Group, Inc. 02/23/06 4.280 4,986,922
3,000 Morgan Stanley 02/01/06 4.580* 3,000,000
- -----------------------------------------------------------------------------------------------------
16,947,400
- -----------------------------------------------------------------------------------------------------
FINANCE-NONCAPTIVE DIVERSIFIED--1.32%
3,500 International Lease Finance Corp. 02/06/06 4.190 3,497,963
- -----------------------------------------------------------------------------------------------------
Total Commercial Paper (cost--$166,207,021) 166,207,021
- -----------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE OBLIGATIONS--11.53%
ASSET BACKED-SECURITIES--1.79%
1,000 Dorada Finance, Inc.** 03/10/06 3.500 999,995
1,750 K2 (USA) LLC** 02/21/06 4.445* 1,749,963
2,000 Links Finance LLC** 04/13/06 4.590* 2,000,096
- -----------------------------------------------------------------------------------------------------
4,750,054
- -----------------------------------------------------------------------------------------------------
AUTOMOBILE OEM--0.75%
2,000 American Honda Finance Corp.** 03/13/06 4.440* 2,000,000
BANKING-NON-U.S.--1.89%
2,000 Nationwide Building Society** 03/13/06 4.600* 2,002,439
3,000 Societe Generale** 02/02/06 4.355* 3,000,000
- -----------------------------------------------------------------------------------------------------
5,002,439
- -----------------------------------------------------------------------------------------------------
</Table>
9
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<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -----------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE OBLIGATIONS--(CONCLUDED)
FINANCE-CAPTIVE AUTOMOTIVE--2.19%
$ 1,790 American Honda Finance Corp.** 04/11/06 4.730%* $ 1,791,331
4,000 Toyota Motor Credit Corp. 02/07/06 to 4.349 to
02/09/06 4.550* 3,999,924
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5,791,255
- -----------------------------------------------------------------------------------------------------
FINANCE-NONCAPTIVE CONSUMER--2.64%
1,000 CIT Group, Inc. 04/19/06 4.702* 1,000,104
6,000 HSBC Finance Corp. 02/01/06 4.645* 6,004,008
- -----------------------------------------------------------------------------------------------------
7,004,112
- -----------------------------------------------------------------------------------------------------
FINANCE-NONCAPTIVE DIVERSIFIED--2.27%
6,000 General Electric Capital Corp. 02/01/06 to 4.502 to
02/13/06 4.640* 6,000,897
- -----------------------------------------------------------------------------------------------------
Total Short-Term Corporate Obligations (cost--$30,548,757) 30,548,757
- -----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--0.04%
99 Repurchase Agreement dated
01/31/06 with State Street
Bank & Trust Co., collateralized by
$17,069 U.S. Treasury Bills, zero
coupon due 04/13/06 and
$84,688 U.S. Treasury Notes,
2.500% due 05/31/06; (value--
$101,400); proceeds: $99,011
(cost--$99,000) 02/01/06 4.000 99,000
</Table>
10
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<Table>
<Caption>
NUMBER OF
SHARES INTEREST
(000) RATES VALUE
- ---------------------------------------------------------------------------------------
MONEY MARKET FUNDS+--1.05%
1,779 AIM Liquid Assets Portfolio 4.350% $ 1,778,649
991 BlackRock Provident Institutional
TempFund 4.318 991,205
- ---------------------------------------------------------------------------------------
Total Money Market Funds (cost--$2,769,854) 2,769,854
- ---------------------------------------------------------------------------------------
Total Investments (cost--$266,623,137
which approximates cost for federal income
tax purposes)--100.65% 266,623,137
- ---------------------------------------------------------------------------------------
Liabilities in excess of other assets--(0.65)% (1,730,373)
- ---------------------------------------------------------------------------------------
Net Assets (applicable to 264,893,361 shares
of beneficial interest outstanding equivalent to
$1.00 per share)--100.00% $ 264,892,76
=======================================================================================
</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, 2006, and reset periodically.
** Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities, which represent 5.11% of net assets as of January
31, 2006, 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, 2006.
OEM Original Equipment Manufacturer
ISSUER BREAKDOWN BY COUNTRY
<Table>
<Caption>
PERCENTAGE OF PORTFOLIO ASSETS
- --------------------------------------------------------------------------------
United States 79.4%
United Kingdom 6.7
Belgium 3.4
Ireland 3.4
France 2.6
Norway 1.5
Netherlands 1.3
Sweden 0.9
Germany 0.8
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
Weighted average maturity -- 40 days
See accompanying notes to financial statements
11
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STATEMENT OF OPERATIONS
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED
JANUARY 31, 2006
(UNAUDITED)
- ------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 5,141,141
EXPENSES:
Transfer agency and related services fees 536,637
Investment management and administration fees 454,530
Reports and notices to shareholders 140,897
Professional fees 33,238
Federal and state registration fees 18,025
Custody and accounting fees 14,818
Trustees' fees 6,161
Other expenses 10,734
- ------------------------------------------------------------------------------------------------------
1,215,040
- ------------------------------------------------------------------------------------------------------
Less: Fee waivers and/or expense reimbursements by investment manager
and administrator (435,875)
Net expenses 779,165
Net investment income 4,361,976
Net realized loss from investment activities (309)
- ------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 4,361,667
======================================================================================================
</Table>
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE
JANUARY 31, 2006 YEAR ENDED
(UNAUDITED) JULY 31, 2005
- -------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 4,361,976 $ 3,634,028
Net realized losses from investment activities (309) (126)
- -------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 4,361,667 3,633,902
- -------------------------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (4,361,976) (3,634,028)
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net increase in net assets from
beneficial interest transactions 37,364,964 61,461,617
- -------------------------------------------------------------------------------------------------------
Net increase in net assets 37,364,655 61,461,491
- -------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 227,528,109 166,066,618
End of period $ 264,892,764 $ 227,528,109
Accumulated undistributed net investment income $ -- $ --
</Table>
See accompanying notes to financial statements
12
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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 thereafter, 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, unless the Trust's Board of Trustees (the "Board")
determines that this does not represent fair value. Periodic review and
monitoring of the valuation of the securities held by the Porfolio is performed
in an effort to ensure amortized cost approximates market 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 repurchase, either through its regular custodian or through a special
"tri-party"
13
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custodian or sub-custodian that maintains a separate account for both the
Portfolio and its counterparty. The underlying collateral is valued daily 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 and Basel, 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, 2006, the
Portfolio owed UBS Global AM $81,677 for investment management and
administration fees.
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
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Portfolio's other expenses, when necessary, to maintain the total annual
operating expenses at a level not exceeding 0.60%. The Portfolio will make a
payment to UBS Global AM for any previously reimbursed expenses during a three
year period to the extent that operating expenses are otherwise below the
expense cap. For the six months ended January 31, 2006, UBS Global AM reimbursed
the Portfolio for non-management fee expenses totalling $435,875. At January 31,
2006, UBS Global AM owed the Portfolio $85,249 for expense reimbursements.
At January 31, 2006, the Portfolio had expense reimbursements subject to
repayment and respective dates of expirations as follows:
<Table>
<Caption>
EXPENSE EXPIRES EXPIRES EXPIRES EXPIRES
REIMBURSEMENTS JULY 31, JULY 31, JULY 31, JULY 31,
SUBJECT TO REPAYMENT 2006 2007 2008 2009
- -----------------------------------------------------------------------------
$ 2,368,548 $ 703,657 $ 510,180 $ 718,836 $ 435,875
</Table>
ADDITIONAL INFORMATION REGARDING COMPENSATION TO AFFILIATE OF A BOARD MEMBER
Effective March 1, 2005, Professor Meyer Feldberg accepted the position of
senior advisor to Morgan Stanley, resulting in him becoming an interested
trustee of the Portfolio. The Portfolio has been informed that Professor
Feldberg's role at Morgan Stanley does not involve matters directly affecting
any UBS funds. Portfolio transactions are executed through Morgan Stanley based
on that firm's ability to provide best execution of the transactions. During the
six months ended January 31, 2006, the Portfolio purchased and sold certain
securities (e.g., fixed income securities) in principal trades with Morgan
Stanley having an aggregate value of $95,517,589. Morgan Stanley received
compensation in connection with these trades, which may have been in the form of
a "mark-up" or "mark-down" of the price of the securities, a fee from the issuer
for maintaining a commercial paper program, or some other form of compensation.
Although the precise amount of this compensation is not generally known by UBS
Global AM, UBS Global AM believes that under normal circumstances it represents
a small portion of the total value of the transactions.
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, 2006, UBS Financial Services Inc. received
from PFPC, not the Portfolio, $252,237 of the total transfer agency and related
services fees paid by the Portfolio to PFPC.
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OTHER LIABILITIES AND COMPONENTS OF NET ASSETS
At January 31, 2006, payable for shares of beneficial interest repurchased,
dividends payable and other accrued expenses (excluding investment management
and administration fees) were $2,853,464, $405,194 and $294,987, respectively.
At January 31, 2006, the Portfolio had the following components of net assets:
paid in capital of $264,893,360 and an accumulated net realized loss of $596 for
total net assets of $264,892,764.
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, net realized capital gains and certain other
amounts, if any, the Portfolio intends not to be subject to a federal excise
tax.
The tax character of distributions paid to shareholders by the Portfolio during
the six months ended January 31, 2006 and the fiscal year ended July 31, 2005
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,
2006.
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, 2006 JULY 31, 2005
- -----------------------------------------------------------------------------------------------------
Shares sold 147,688,648 224,445,629
Shares repurchased (114,448,67) (166,362,87)
Dividends reinvested 4,124,994 3,378,866
- -----------------------------------------------------------------------------------------------------
Net increase in shares outstanding 37,364,964 61,461,617
=====================================================================================================
</Table>
16
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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, 2006 ------------------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
BEGINNING OF PERIOD
Net investment income 0.017 0.018 0.005 0.009 0.021 0.053
Dividends from net
investment income (0.017) (0.018) (0.005) (0.009) (0.021) (0.053)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(1) 1.70% 1.80% 0.51% 0.96% 2.10% 5.44%
===========================================================================================================================
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end
of period (000's) $ 264,893 $ 227,528 $ 166,067 $ 123,915 $ 112,001 $ 76,657
Expenses to average
net assets, net of fee
waivers and/or expense
reimbursements
by manager 0.60%* 0.60% 0.60% 0.57% 0.50% 0.50%
Expenses to average
net assets, before fee
waivers and/or expense
reimbursements
by manager 0.94%* 0.97% 0.96% 1.13% 1.43% 1.00%
Net investment income
to average net assets,
net of fee waivers and/or
expense reimbursements
by manager 3.36%* 1.85% 0.51% 0.94% 2.03% 5.26%
Net investment income
to average net assets,
before fee waivers and/or
expense reimbursements
by manager 3.02%* 1.48% 0.15% 0.38% 1.10% 4.76%
</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.
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GENERAL 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 Web site at http://www.sec.gov. The Portfolio's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, D.C. Information on
the operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC 0330. Additionally, you may obtain copies of Forms N-Q from the
Portfolio upon request by calling 1-800-647 1568.
SHAREHOLDER MEETING RESULTS
A special meeting of shareholders of UBS PACE Select Advisors Trust (the
"Trust") was held on December 21, 2005. UBS PACE Money Market Investments (the
"Fund") is one of twelve portfolios comprising the Trust. Shareholders of all
twelve portfolios of the Trust, including the Fund, voted together as a single
class in the election of board members.
At the meeting, Richard Q. Armstrong, David J. Beaubien, Alan S. Bernikow,
Richard R. Burt, Meyer Feldberg, Bernard H. Garil, Heather Richardson Higgins
and William D. White were elected to serve as trustees for an indefinite term
until their successors are duly elected and qualified or until they retire,
resign or are earlier removed. The shares were voted as indicated below:
<Table>
<Caption>
TO VOTE FOR OR WITHHOLD
IN THE ELECTION OF: SHARES VOTED FOR SHARES WITHHOLD AUTHORITY
- ----------------------------------------------------------------------------------------------------------
Richard Q. Armstrong 632,581,067.546 18,706,812.516
David J. Beaubien 632,539,131.079 18,748,748.983
Alan S. Bernikow 633,197,848.624 18,090,031.438
Richard R. Burt 633,658,989.204 17,628,890.858
Meyer Feldberg 632,351,672.348 18,936,207.714
Bernard H. Garil 633,248,571.531 18,039,308.531
Heather Richardson Higgins 632,855,317.350 18,432,562.712
William D. White 632,319,876.693 18,968,003.369
</Table>
To the best of the Trust's knowledge, there were no "broker non-votes." (Broker
non-votes are shares held in street name for which the broker indicates that
instructions have not been received from the beneficial owners or other persons
entitled to vote and for which the broker does not have discretionary voting
authority.) Mr. White retired from the board at the end of January 2006.
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TRUSTEES
Richard Q. Armstrong
CHAIRMAN
David J. Beaubien
Alan S. Bernikow
Richard R. Burt
Meyer Feldberg
Bernard H. Garil
Heather Richardson Higgins
PRINCIPAL OFFICERS
W. Douglas Beck
PRESIDENT
Mark F. Kemper
VICE PRESIDENT AND SECRETARY
Thomas Disbrow
VICE PRESIDENT AND TREASURER
Michael H. Markowitz
VICE PRESIDENT
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 REGISTERED PUBLIC ACCOUNTANTS 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)2006 UBS GLOBAL ASSET MANAGEMENT (US) INC. ALL RIGHTS RESERVED.
<Page>
[UBS LOGO]
PRESORTED
UBS GLOBAL ASSET MANAGEMENT (US) INC. STANDARD
51 West 52nd Street U.S. POSTAGE
New York, New York 10019 PAID
COMPUTERSHARE
<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.
<Page>
The registrant's Board has established a Nominating and Corporate Governance
Committee. The Nominating and Corporate Governance Committee will consider
nominees recommended by shareholders if a vacancy occurs among those board
members who are not "interested persons" as defined in Section 2(a)(19) of
the Investment Company Act of 1940, as amended. In order to recommend a
nominee, a shareholder should send a letter to the chairperson of the
Nominating and Corporate Governance Committee, Richard R. Burt, care of the
Secretary of the registrant at UBS Global Asset Management, 51 West 52nd
Street, New York, New York 10019-6114, and indicate on the envelope
"Nominating and Corporate Governance Committee." The shareholder's letter
should state the nominee's name and should include the nominee's resume or
curriculum vitae, and must be accompanied by a written consent of the
individual to stand for election if nominated for the Board and to serve if
elected by shareholders.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act
of 1940, as amended) are effective based on their evaluation of these
controls and procedures as of a date within 90 days of the filing date
of this document.
(b) The registrant's principal executive officer and principal financial
officer are aware of no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940, as amended) that occurred during the
registrant's last fiscal quarter 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/ W. Douglas Beck
-------------------
W. Douglas Beck
President
Date: April 7, 2006
-------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ W. Douglas Beck
-------------------
W. Douglas Beck
President
Date: April 7, 2006
-------------
By: /s/ Thomas Disbrow
------------------
Thomas Disbrow
Vice President and Treasurer
Date: April 7, 2006
-------------