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: 811-06292 |
UBS Investment Trust |
(Exact name of registrant as specified in charter) |
1285 Avenue of the Americas, New York, New York 10019-6028 |
(Address of principal executive offices) (Zip code) |
Mark F. Kemper, Esq. |
UBS Global Asset Management |
1285 Avenue of the Americas |
New York, NY 10019-6028 |
(Name and address of agent for service) |
Copy to: |
Jack W. Murphy, Esq. |
Dechert LLP |
1775 I Street, N.W. |
Washington, DC 20006-2401 |
Registrants telephone number, including area code: 212-821 3000 |
Date of fiscal year end: August 31 |
Date of reporting period: February 28, 2011 |
Item 1. Reports to Stockholders.
Asset Allocation |
UBS U.S. Allocation Fund |
UBS U.S. Allocation Fund
April 14, 2011
Dear
shareholder, We present you with the semiannual report for UBS U.S. Allocation Fund (the Fund) for the six months ended February 28, 2011. Performance Over the six months ended February 28, 2011, the Funds Class A shares returned 20.15% before deducting the maximum sales charge; after deducting the maximum sales charge, the Funds Class A shares returned 13.52%. During the same period, the Funds benchmark, the S&P 500 Index, which tracks large cap US equities, gained 27.73%. Since the Fund invests in both stocks and bonds, we feel it is appropriate to also compare its performance to the UBS U.S. Allocation Fund Index (the Index),1 which returned 18.65%. (Returns for all share classes over various time periods and descriptions of the indices are shown in Performance at a glance on pages 810; please note that the returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.) |
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UBS U.S. Allocation Fund | ||||
Investment goal: | ||||
Total return, consisting of long-term capital appreciation and current income |
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Portfolio Managers: | ||||
Portfolio Management Team, | ||||
including Curt Custard, Aaron Balsam and Andreas Koester UBS Global Asset Management (Americas) Inc. |
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Commencement: | ||||
Class AMay 10, 1993 Class BJanuary 30, 1996 Class CJuly 22, 1992 Class YMay 10, 1993 |
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Dividend payments: | ||||
Annually, if any | ||||
An interview with Lead Portfolio Manager Curt Custard | ||
Q. | How would you describe the economic environment during the reporting period? | |
A. | Although the overall US economy expanded during the reporting period, there continued to be several areas of weakness. These included elevated |
1 | The UBS U.S. Allocation Fund Index is an unmanaged index compiled by the Advisor, constructed as follows: from July 22, 1992 (the Funds inception) until February 29, 2004: 100% S&P 500 Index; from March 1, 2004 until May 31, 2005: 65% Russell 3000 Index, 30% Barclays Capital US Aggregate Index, and 5% BofA Merrill Lynch US High Yield Cash Pay Index; and from June 1, 2005 until present: 65% Russell 3000 Index, 30% Barclays Capital US Aggregate Index, and 5% BofA Merrill Lynch US High Yield Cash Pay Constrained Index. Investors should note that indices do not reflect the deduction of fees and expenses. |
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UBS U.S. Allocation Fund
unemployment levels and a weak housing market, which held back a more robust expansion. | ||
Looking back, gross domestic product (GDP) growth was 3.7% during the first quarter of 2010, followed by second and third quarter GDP growth of 1.7% and 2.6%, respectively. On March 25, 2011, after the Funds reporting period had ended, the Commerce Department announced that fourth quarter 2010 GDP growth had grown 3.1%. The US economy has now expanded for six consecutive quarters. | ||
Q. | How did the Federal Reserve Board (the Fed) react to the economic environment? | |
A. | Despite the economys ongoing growth, the Fed remained concerned about continued high unemployment levels. As a result, the Fed maintained its highly accommodative monetary policy, keeping the federal funds rate within a range of 0.00% to 0.25%a historic low. (The federal funds rate, or fed funds rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) At its meeting in March 2010, the Fed stated that the Committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate. | |
Given this statement, it was no surprise when the Fed took additional action in November 2010 in an attempt to stimulate the economy. Saying that the pace of recovery in output and employment continues to be slow, the Fed launched another round of quantitative easing that called for purchasing an additional $600 billion of longer-term US Treasury securities by the end of the second quarter of 2011. | ||
Q. | How did the stock market perform during the reporting period? | |
A. | In September, the S&P 500 Index got off to a strong start when the Fed indicated that it may introduce another round of quantitative easing to stimulate the economy and ward off deflation. The S&P 500 Index continued its ascent over the next five months, even with concerns regarding the sovereign debt crisis in Europe, and geopolitical issues toward the end of the period. Also, signs that the economy was gaining momentum supported the equity market, which in turn helped improve corporate profits and stoked |
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UBS U.S. Allocation Fund
robust demand. Altogether, the benchmark gained an impressive 27.73% during the six months ended February 28, 2011. | ||
Q. | How did the bond market perform during the reporting period? | |
A. | The US bond market produced mixed results during the reporting period. As the economy continued to expand, both short- and long-term interest rates moved higher, and the Fed vowed to keep short-term interest rates low for an extended period. Despite the fact that core inflation remained relatively benign, fears of inflation pushed Treasury yields higher and their prices lower. In contrast, a number of US spread sectors (non-Treasuries) produced strong results. In particular, demand for higher yielding securities, including high yield bonds and commercial mortgage-backed securities, was typically robust, driving their prices higher. | |
During the six months ended February 28, 2011, the Barclays Capital US Aggregate Index2 returned -0.83%, while, the Barclays Capital High Yield Municipal Bond Index3 gained 10.10% over the same period. | ||
Q. | How was the Fund allocated during the reporting period? | |
A. | Throughout the period, we had an overweight to equities versus the Index, as we felt the asset class was undervalued. However, as the period progressed, we pared our equity exposure from approximately 74% to 70.5% in order to capture profits and reduce the Funds overall risk exposure. | |
While the Funds fixed income exposure remained underweight versus the Index, we increased our position from roughly 23% to 24.5% as portions of the fixed income market sold off toward the end of the reporting period and became, in our view, relatively more attractively valued. Elsewhere, we maintained a neutral weighting to high yield bonds versus the Index (roughly 5% of the portfolio) and reduced the Funds cash position. |
2 | The Barclays Capital US Aggregate Index is an unmanaged broad-based index designed to measure the US dollar-denominated, investment grade, fixed rate taxable bond market. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed, asset-backed and commercial mortgage-backed sectors. US agency hybrid adjustable-rate mortgage (ARM) securities were added to the index on April 1, 2007. Investors should note that indices do not reflect the deduction of fees and expenses. | |
3 | The Barclays Capital High Yield Municipal Bond Index is an unmanaged index designed to measure the US dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Investors should note that indices do not reflect the deduction of fees and expenses. |
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UBS U.S. Allocation Fund
Please note, neutral Index weights for the Fund are 65% equities and 35% fixed income. | ||
Overall, our asset allocation strategy contributed to relative results, as stocks outperformed both US investment grade and high yield bonds. | ||
Q. | Which equity strategies performed well during the reporting period, and which areas produced disappointing results? | |
A. | Stock selection detracted from performance during the reporting period, whereas sector positioning was a modest contributor to relative results. In terms of stock selection, the Funds holdings in the information technology, consumer staples and telecommunication services sectors were the largest drags on performance. This was somewhat offset by stock selection in the financials, consumer discretionary and industrial sectors. | |
Looking at individual stocks, the Funds allocations to American Electric Power Co., Inc., Avon Products, Inc. and Cisco Systems, Inc. were the largest detracting names in the portfolio during the reporting period. American Electric Power, a major owner of electric utilities in the US, was negatively impacted by a weak rate environment. We continue to own the stock, as it trades at a discount to its regulated utility peers. In addition, we believe the company has significant growth opportunities in the future, in part due to its significant new transmission investment. Avon Products is a worldwide distributor of cosmetics, perfume and other products. The company faced several headwinds, including some difficulties in Brazil and Russia, two of Avons most important markets. We remain positive on the company given its recent restructuring, which has helped to trim its costs. In addition, Avons top-line growth remains strong, its fundamentals appear solid and we feel it has opportunities to expand in emerging market countries. Lastly, Cisco Systems stock was penalized after it reported disappointing earnings due to lower sales to government agencies. Additionally, there were concerns that the companythe worlds largest networking equipment makerwas facing increased competition and potentially narrowing margins. However, we still feel the company stands to benefit from further growth of the Internet; we are seeing increased wireless network demand and usage of Internet Protocol-based videotwo areas in which Cisco Systems is very well-positioned. |
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UBS U.S. Allocation Fund
The largest contributors to the Funds performance during the reporting period were Baker Hughes, Inc., Hess Corp. and Comcast Corp. Baker Hughes, the worlds largest oilfield services company, saw its shares rise sharply after the company posted strong fourth quarter earnings with solid cash flow. In addition, management boosted its outlook for the remainder of the year. Hess Corp. is an integrated oil company, with businesses in exploration, production, refining and retail sales. The companys shares responded favorably as it posted strong results, and we pared our position to capture profits. Lastly, Comcast Corp. is one of the countrys largest cable operators, home Internet service providers and home telephone service companies. Comcast recently completed a system-wide upgrade that provides high quality video and data under its Xfinity brand. It has also been a beneficiary of a trend toward bundling of Internet, cable and phone services by consumers and businesses. | ||
From a sector positioning perspective, underweights to consumer staples and financials, along with an overweight to the consumer discretionary sector, were the largest contributors to relative performance. Conversely, an overweight to health care, coupled with underweights to the materials and utility sectors, were the largest detractors from relative results. | ||
Q. | How did you manage the Funds fixed income exposure during the reporting period? | |
A. | Overall, investor demand for the spread sectors (non-US Treasuries) was robust during the period as investors looked to generate incremental yield given relatively low interest rates. Against this backdrop, the Funds spread sector overweight significantly contributed to performance. In particular, an overweight to investment grade corporate bonds, most notably financials, was rewarded. They performed well in an environment that was largely characterized by better-than-expected corporate profits and strong investor demand. Another meaningful contributor to relative performance was the Funds overweight to commercial mortgage-backed securities (CMBS), which were the beneficiaries of solid demand and improving fundamentals. Finally, the Funds high yield exposure was a positive for relative results as the high yield market posted very strong returns. | |
The Funds duration positioning was a positive for relative performance during the reporting period. (Duration measures the price sensitivity of a portfolio to interest rate changes.) We tactically adjusted the Funds duration, |
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UBS U.S. Allocation Fund
but generally had a neutral to short bias relative to the benchmark, which proved rewarding as yields rose during the period as a whole. Somewhat offsetting this positive was the Funds yield curve positioning. (The yield curve plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.) During much of the review period, the Fund was positioned for a flattening of the yield curve. Still, the yield curve steepened, as longer term rates moved higher than their short-term counterparts. This occurred as short-term rates were somewhat anchored by the Feds announcements that it would keep the federal funds rate at an historical low for an extended period. Longer term rates moved sharply higher due to fears of future inflation. | ||
Certain derivative instruments, namely interest rate futures, were used to facilitate specific duration and yield curve strategies. The results of derivatives used during the period were positive for performance. | ||
Q. | What is your outlook for the economy? | |
A. | We expect that the US economy, which surprised investors with its resiliency in 2010, will also surprise positively in 2011. We believe two forces will likely shape the macro picture in 2011. First, the global industrial cycle is reaccelerating after a brief dip, and this cyclical upswing will likely be an important driver for the financial markets. Second, the recovery appears to be on the threshold of moving from a rebound phase to an expansion phase, as suggested by recent movements of global risk appetite. In addition, accommodative Fed monetary policy could further support the solid foundation for broader and more sustainable growth. |
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UBS U.S. Allocation Fund
We thank you for your continued support and welcome any comments or questions you may have. For additional information on the UBS family of funds,* please contact your financial advisor or visit us at www.ubs.com/globalam-us.
Sincerely, | |||
Mark E. Carver | Curt Custard | ||
President | Portfolio Manager | ||
UBS U.S. Allocation Fund | UBS U.S. Allocation Fund | ||
Managing Director | Group Managing Director | ||
UBS Global Asset Management | UBS Global Asset Management | ||
(Americas) Inc. | (Americas) Inc. | ||
Andreas Koester | Aaron Balsam | ||
Portfolio Manager | Portfolio Manager | ||
UBS U.S. Allocation Fund | UBS U.S. Allocation Fund | ||
Managing Director | Director | ||
UBS Global Asset Management | UBS Global Asset Management | ||
(Americas) Inc. | (Americas) Inc. | ||
This letter is intended to assist shareholders in understanding how the Fund performed during the six months ended February 28, 2011. The views and opinions in the letter were current as of April 14, 2011. 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 Funds future investment intent. We encourage you to consult your financial advisor regarding your personal investment program. |
* | Mutual funds are sold by prospectus only. You should read it carefully and consider a funds investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. The prospectus contains this and other information about the fund. Prospectuses for most of our funds can be obtained from your Financial Advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/globalam-us. |
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UBS U.S. Allocation Fund
Performance at a glance (unaudited)
Average annual total returns for periods ended 02/28/11
6 months | 1 year | 5 years | 10 years | ||||||||||||||||
Before deducting maximum sales charge | Class A1 | 20.15 | % | 17.42 | % | 1.82 | % | 1.98 | % | ||||||||||
Class B2 | 19.63 | 16.44 | 0.91 | 1.50 | 5 | ||||||||||||||
Class C3 | 19.73 | 16.59 | 1.06 | 1.22 | |||||||||||||||
Class Y4 | 20.32 | 17.77 | 2.18 | 2.33 | |||||||||||||||
After deducting maximum sales charge | Class A1 | 13.52 | 10.96 | 0.67 | 1.40 | ||||||||||||||
Class B2 | 14.63 | 11.44 | 0.53 | 1.50 | 5 | ||||||||||||||
Class C3 | 18.73 | 15.59 | 1.06 | 1.22 | |||||||||||||||
S&P 500 Index6 | 27.73 | 22.57 | 2.87 | 2.62 | |||||||||||||||
UBS U.S. Allocation Fund Index7 | 18.65 | 18.28 | 4.65 | 3.38 | |||||||||||||||
Lipper Flexible Portfolio Funds median | 16.55 | 15.93 | 4.31 | 4.50 | |||||||||||||||
Most recent quarter-end returns
Average annual total returns for periods ended 03/31/11
6 months | 1 year | 5 years | 10 years | ||||||||||||||||
Before deducting maximum sales charge | Class A1 | 11.59 | % | 12.15 | % | 1.65 | % | 2.63 | % | ||||||||||
Class B2 | 11.11 | 11.15 | 0.74 | 2.15 | 5 | ||||||||||||||
Class C3 | 11.15 | 11.28 | 0.88 | 1.86 | |||||||||||||||
Class Y4 | 11.73 | 12.46 | 2.00 | 2.98 | |||||||||||||||
After deducting maximum sales charge | Class A1 | 5.45 | 5.99 | 0.51 | 2.05 | ||||||||||||||
Class B2 | 6.11 | 6.15 | 0.35 | 2.15 | 5 | ||||||||||||||
Class C3 | 10.15 | 10.28 | 0.88 | 1.86 | |||||||||||||||
The annualized gross and net expense ratios, respectively, for each class of shares as in the December 29, 2010 prospectuses, were as follows: Class A1.03% and 1.03%; Class B1.91% and 1.90%; Class C1.78% and 1.78%; and Class Y0.70% and 0.70%.
Net expenses reflect fee waivers and/or expense reimbursements, if any, pursuant to an agreement that is in effect to cap the expenses. The Fund and UBS Global Asset Management (Americas) Inc. (UBS Global AM) have entered into: (1) a written agreement, separate from UBS Global AMs investment advisory agreement with the fund, whereby UBS Global AM has agreed to permanently reduce its management fee based on the Funds average daily net assets to the following rates: $0 to $250 million0.50%; in excess of $250 million up to $500 million0.45%; in excess of $500 million up to $2 billion0.40%; and over $2 billion0.35%; and (2) a written fee waiver/expense reimbursement agreement pursuant to which UBS Global AM is contractually obligated to waive its management fees and/or reimburse expenses so that the Funds ordinary total operating expenses of each class through December 31, 2011 (excluding
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UBS U.S. Allocation Fund
Performance at a glance (unaudited) (continued)
dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses) would not exceed 1.15% for Class A, 1.90% for Class B, 1.90% for Class C and 0.90% for Class Y (the fee waiver/expense reimbursement agreement). The Fund has agreed to repay UBS Global AM for any waived fees/reimbursed expenses (pursuant to the fee waiver/expense reimbursement agreement) to the extent that it can do so over the following three fiscal years without causing the Funds expenses in any of those three years to exceed these expense caps. The agreements may be terminated by the Funds board at any time and also will terminate automatically upon the expiration or termination of the Funds advisory contract with UBS Global AM. Upon termination of the fee waiver/expense reimbursement agreement, however, UBS Global AMs three year recoupment rights will survive.
1 | Maximum sales charge for Class A shares is 5.5%. Class A shares bear ongoing 12b-1 service fees. | |
2 | 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. | |
3 | 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. Prior to September 30, 2003, Class C shares were subject to a maximum front-end sales charge of 1.00%; this front-end sales charge is not reflected in the average annual total return presented for the Class C shares shown above. | |
4 | The Fund 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. | |
5 | Assumes the conversion of Class B to Class A shares at the end of the sixth year. | |
6 | The S&P 500 Index is an unmanaged, weighted index comprising 500 widely held common stocks varying in composition and is not available for direct investment. Investors should note that indices do not reflect the deduction of fees and expenses. | |
7 | The UBS
U.S. Allocation Fund Index is an unmanaged index compiled by the Advisor, constructed
as follows: from July 22, 1992 (the Funds inception) until February 29, 2004:
100% S&P 500 Index; from March 1, 2004 until May 31, 2005: 65% Russell
3000 Index, 30% Barclays Capital US Aggregate Index, and 5% BofA Merrill Lynch US
High Yield Cash Pay Index; and from June 1, 2005 until present: 65% Russell 3000
Index, 30% Barclays Capital US Aggregate Index, and 5% BofA Merrill Lynch US High
Yield Cash Pay Constrained Index. Investors should note that indices do not reflect
the deduction of fees and expenses. If an investor sells or exchanges shares less than 90 days after purchase, a redemption fee of 1.00% of the amount sold or exchanged will be deducted at the time of the transaction, except as noted otherwise in the prospectus. |
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UBS U.S. Allocation Fund
Performance at a glance (unaudited) (concluded)
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 Fund distributions or the redemption of Fund shares. The return and principal value of an investment will fluctuate, so that an investors 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 the period 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 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.
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UBS U.S. Allocation Fund
Understanding your Funds expenses
(unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transactional
costs (as applicable), including sales charges (loads); and (2) ongoing costs, including
management fees; service and/or distribution (12b-1) fees (if applicable); and other
Fund expenses. This example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund 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, September 1, 2010 to February 28, 2011.
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 Funds
actual expense ratios for each class of shares and an assumed rate of return of
5% per year before expenses, which is not the Funds 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 Fund
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 Fund costs only and do not reflect any transactional costs (as applicable), such as sales charges (loads). Therefore, the second line in the table for each class of shares is useful in comparing ongoing Fund costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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UBS U.S. Allocation Fund
Understanding your Funds expenses (unaudited) (concluded)
Expenses paid | Expense | |||||||||||||||||
Beginning | Ending | during period1 | ratio | |||||||||||||||
account value | account value | 09/01/10 - | during the | |||||||||||||||
September 1, 2010 | February 28, 2011 | 02/28/11 | period | |||||||||||||||
Class A | Actual | $1,000.00 | $1,201.50 | $5.57 | 1.02 | % | ||||||||||||
Hypothetical | ||||||||||||||||||
(5% annual return | ||||||||||||||||||
before expenses) | 1,000.00 | 1,019.74 | 5.11 | 1.02 | ||||||||||||||
Class B | Actual | 1,000.00 | 1,196.30 | 10.24 | 1.88 | |||||||||||||
Hypothetical | ||||||||||||||||||
(5% annual return | ||||||||||||||||||
before expenses) | 1,000.00 | 1,015.47 | 9.39 | 1.88 | ||||||||||||||
Class C | Actual | 1,000.00 | 1,197.30 | 9.70 | 1.78 | |||||||||||||
Hypothetical | ||||||||||||||||||
(5% annual return | ||||||||||||||||||
before expenses) | 1,000.00 | 1,015.97 | 8.90 | 1.78 | ||||||||||||||
Class Y | Actual | 1,000.00 | 1,203.20 | 3.99 | 0.73 | |||||||||||||
Hypothetical | ||||||||||||||||||
(5% annual return | ||||||||||||||||||
before expenses) | 1,000.00 | 1,021.17 | 3.66 | 0.73 | ||||||||||||||
1 | Expenses are equal to the Funds annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half year period). |
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UBS U.S. Allocation Fund
Portfolio statistics (unaudited) | ||||||||||||||||||
Characteristics | 02/28/11 | 08/31/10 | 02/28/10 | |||||||||||||||
Net assets (mm) | $313.6 | $296.5 | $341.8 | |||||||||||||||
Number of securities | 542 | 589 | 577 | |||||||||||||||
Portfolio composition1 | 02/28/11 | 08/31/10 | 02/28/10 | |||||||||||||||
Stocks | 73.1% | 69.9% | 68.5% | |||||||||||||||
Bonds | 19.9 | 18.6 | 28.2 | |||||||||||||||
Investment company | 4.0 | 8.0 | 0.2 | |||||||||||||||
Futures, options | ||||||||||||||||||
and swap contracts | (0.2) | | 0.1 | |||||||||||||||
Cash equivalents and | ||||||||||||||||||
other assets less liabilities | 3.2 | 3.5 | 3.0 | |||||||||||||||
Total | 100.0% | 100.0% | 100.0% | |||||||||||||||
Top five equity sectors1 | 02/28/11 | 08/31/10 | 02/28/10 | |||||||||||||||
Information | Information | Information | ||||||||||||||||
technology | 15.5% | technology | 14.7% | technology | 12.7% | |||||||||||||
Consumer discretionary | 12.0 | Consumer discretionary | 10.2 | Health care | 10.2 | |||||||||||||
Financials | 9.6 | Health care | 9.5 | Consumer discretionary | 9.5 | |||||||||||||
Energy | 8.9 | Financials | 8.5 | Financials | 8.7 | |||||||||||||
Health care | 8.9 | Industrials | 7.8 | Industrials | 8.7 | |||||||||||||
Total | 54.9% | 50.7% | 49.8% | |||||||||||||||
Top ten equity securities1 | 02/28/11 | 08/31/10 | 02/28/10 | |||||||||||||||
Apple, Inc. | 2.9% | Apple, Inc. | 2.5% | Apple, Inc. | 1.8% | |||||||||||||
Exxon Mobil Corp. | 2.8 | Exxon Mobil Corp. | 1.9 | Covidien PLC | 1.7 | |||||||||||||
The Procter & | ||||||||||||||||||
QUALCOMM, Inc. | 1.5 | JPMorgan Chase & Co. | 1.5 | Gamble Co. | 1.7 | |||||||||||||
Wells Fargo & Co. | 1.5 | Comcast Corp., Class A | 1.5 | Microsoft Corp. | 1.7 | |||||||||||||
JPMorgan | ||||||||||||||||||
Microsoft Corp. | 1.5 | Allergan, Inc. | 1.4 | Chase & Co. | 1.6 | |||||||||||||
JPMorgan Chase & Co. | 1.4 | AT&T, Inc. | 1.4 | Exxon Mobil Corp. | 1.5 | |||||||||||||
General Dynamics | ||||||||||||||||||
Amazon.com, Inc. | 1.3 | Wells Fargo & Co. | 1.3 | Corp. | 1.3 | |||||||||||||
Adobe Systems, Inc. | 1.2 | Johnson & Johnson | 1.3 | Wells Fargo & Co. | 1.3 | |||||||||||||
Comcast Corp., Class A | 1.2 | PepsiCo, Inc. | 1.3 | Pfizer, Inc. | 1.3 | |||||||||||||
AT&T, Inc. | 1.2 | Illinois Tool Works, Inc. | 1.2 | FedEx Corp. | 1.3 | |||||||||||||
Total | 16.5% | 15.3% | 15.2% | |||||||||||||||
1 | Weightings represent percentages of the Funds net assets as of the dates indicated. |
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UBS U.S. Allocation Fund
Portfolio statistics (unaudited) (continued)
Long-term fixed income | ||||||||||||
sector allocation1 | 02/28/11 | 08/31/10 | 02/28/10 | |||||||||
Mortgage & agency | ||||||||||||
debt securities | 6.8 | % | 6.9 | % | 10.3 | % | ||||||
US government obligations | 6.6 | 4.9 | 11.4 | |||||||||
Corporate bonds | 5.9 | 6.2 | 6.0 | |||||||||
Commercial | ||||||||||||
mortgage-backed securities | 0.6 | 0.6 | 0.5 | |||||||||
Asset-backed securities | | 0.0 | 2 | 0.0 | 2 | |||||||
Total | 19.9 | % | 18.6 | % | 28.2 | % | ||||||
1 | Weightings represent percentages of the Funds net assets as of the dates indicated. | |
2 | Weighting represents less than 0.05% of the Funds net assets as of the dates indicated. |
14 |
UBS U.S. Allocation Fund
Portfolio statistics (unaudited) (concluded)
Top ten fixed | |||||||||||||||||
income securities1 | 02/28/11 | 08/31/10 | 02/28/10 | ||||||||||||||
US Treasury Notes, | US Treasury Notes, | ||||||||||||||||
US Treasury Notes, | 0.625%, | 2.250% | |||||||||||||||
0.625%, due 01/31/13 | 2.2 | % | due 06/30/12 | 2.2 | % | due 01/31/15 | 3.5 | % | |||||||||
US Treasury Notes, | US Treasury Notes, | ||||||||||||||||
US Treasury Notes, | 0.625%, | 1.000% | |||||||||||||||
2.000%, due 01/31/16 | 1.5 | due 07/31/12 | 1.4 | due 10/31/11 | 2.6 | ||||||||||||
FNMA Certificates, | US Treasury Notes, | ||||||||||||||||
US Treasury Notes, | 2.375%, | 3.375% | |||||||||||||||
0.625%, due 12/31/12 | 1.4 | due 07/28/15 | 1.2 | due 11/15/19 | 1.5 | ||||||||||||
FHLMC Certificates, | FHLMC Certificates, | ||||||||||||||||
FNMA Certificates, | 5.500%, | 2.875% | |||||||||||||||
1.625%, due 10/26/15 | 0.9 | due 05/01/37 | 0.8 | due 02/09/15 | 1.0 | ||||||||||||
US Treasury Bonds, | US Treasury Notes, | ||||||||||||||||
FNMA Certificates, | 4.625%, | 0.750% | |||||||||||||||
4.000%, TBA | 0.9 | due 02/15/40 | 0.6 | due 11/30/11 | 1.0 | ||||||||||||
FNMA Certificates, | FNMA Certificates, | ||||||||||||||||
US Treasury Notes, | 4.500%, | 4.500% | |||||||||||||||
2.625%, due 11/15/20 | 0.8 | due 04/01/39 | 0.5 | due 04/01/39 | 1.0 | ||||||||||||
US Treasury Bonds, | US Treasury Notes, | ||||||||||||||||
FNMA Certificates, | 4.375%, | 0.875% | |||||||||||||||
5.000%, TBA | 0.6 | due 05/15/40 | 0.5 | due 05/31/11 | 1.0 | ||||||||||||
GNMA Certificates II, | US Treasury Bonds, | ||||||||||||||||
FNMA Certificates, | 6.000%, | 4.375% | |||||||||||||||
4.500%, TBA | 0.6 | due 02/20/34 | 0.4 | due 11/15/39 | 0.8 | ||||||||||||
FNMA Certificates, | FNMA Certificates, | ||||||||||||||||
FHLMC Certificates, | 5.000%, | 6.000% | |||||||||||||||
5.00%, 05/01/37 | 0.5 | due 09/01/39 | 0.3 | due 11/01/38 | 0.8 | ||||||||||||
GS Mortgage | |||||||||||||||||
Securities Corp. II, | FHLMC Certificates, | ||||||||||||||||
US Treasury Bonds, | 6.002%, | 5.500% | |||||||||||||||
4.250%, due 11/15/40 | 0.5 | due 08/10/45 | 0.3 | due 05/01/37 | 0.7 | ||||||||||||
Total | 9.9 | % | 8.2 | % | 13.9 | % | |||||||||||
1 | Weightings represent percentages of the Funds net assets as of the dates indicated. |
15 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Security description | Shares | Value | |||||
Common stocks73.07% | |||||||
Aerospace & defense2.03% | |||||||
Aerovironment, Inc.* | 2,100 | $60,921 | |||||
BE Aerospace, Inc.* | 3,000 | 101,160 | |||||
General Dynamics Corp. | 29,200 | 2,222,704 | |||||
Precision Castparts Corp. | 4,100 | 581,175 | |||||
The Boeing Co. | 36,800 | 2,649,968 | |||||
United Technologies Corp. | 9,000 | 751,860 | |||||
6,367,788 | |||||||
Air freight & logistics1.00% | |||||||
C.H. Robinson Worldwide, Inc. | 8,100 | 586,359 | |||||
FedEx Corp. | 27,300 | 2,457,546 | |||||
Hub Group, Inc., Class A* | 2,900 | 101,384 | |||||
3,145,289 | |||||||
Airlines0.47% | |||||||
Southwest Airlines Co. | 123,500 | 1,461,005 | |||||
Auto components0.94% | |||||||
Johnson Controls, Inc. | 68,700 | 2,802,960 | |||||
Tenneco, Inc.* | 3,700 | 147,556 | |||||
2,950,516 | |||||||
Automobiles0.60% | |||||||
General Motors Co.* | 56,000 | 1,877,680 | |||||
Beverages1.06% | |||||||
PepsiCo, Inc. | 52,300 | 3,316,866 | |||||
Biotechnology1.24% | |||||||
Acorda Therapeutics, Inc.* | 19,600 | 411,012 | |||||
Alexion Pharmaceuticals, Inc.* | 12,400 | 1,193,872 | |||||
Amgen, Inc.* | 28,400 | 1,457,772 | |||||
Amylin Pharmaceuticals, Inc.* | 30,800 | 471,240 | |||||
Pharmasset, Inc.* | 7,400 | 370,000 | |||||
3,903,896 | |||||||
Building products0.05% | |||||||
A.O. Smith Corp. | 500 | 20,200 | |||||
Trex Co., Inc.1,* | 4,500 | 134,775 | |||||
154,975 | |||||||
Security description | Shares | Value | |||||
Common stocks(continued) | |||||||
Capital markets2.74% | |||||||
Apollo Investment Corp. | 8,905 | $110,155 | |||||
Evercore Partners, Inc., Class A | 3,300 | 113,784 | |||||
Goldman Sachs Group, Inc. | 16,800 | 2,751,504 | |||||
Golub Capital BDC, Inc. | 4,100 | 70,848 | |||||
Morgan Stanley | 111,900 | 3,321,192 | |||||
PennantPark Investment Corp. | 8,500 | 107,950 | |||||
The Bank of New York Mellon Corp. | 69,600 | 2,115,144 | |||||
8,590,577 | |||||||
Chemicals1.08% | |||||||
Celanese Corp., Series A | 43,100 | 1,786,495 | |||||
Cytec Industries, Inc. | 1,900 | 107,977 | |||||
Potash Corporation of | |||||||
Saskatchewan, Inc. | 8,100 | 498,960 | |||||
Praxair, Inc. | 3,500 | 347,830 | |||||
The Sherwin-Williams Co. | 7,800 | 640,536 | |||||
3,381,798 | |||||||
Commercial banks2.48% | |||||||
Bank of Hawaii Corp. | 1,300 | 61,308 | |||||
Center Financial Corp.* | 9,300 | 74,121 | |||||
City National Corp. | 1,100 | 64,801 | |||||
Prosperity Bancshares, Inc. | 1,800 | 73,476 | |||||
U.S. Bancorp | 101,300 | 2,809,049 | |||||
Webster Financial Corp. | 3,200 | 74,176 | |||||
Wells Fargo & Co. | 142,800 | 4,606,728 | |||||
7,763,659 | |||||||
Commercial services & supplies0.02% | |||||||
Innerworkings, Inc.1,* | 8,800 | 71,896 | |||||
Communications equipment2.95% | |||||||
Cisco Systems, Inc.* | 177,600 | 3,296,256 | |||||
Juniper Networks, Inc.* | 10,300 | 453,200 | |||||
NETGEAR, Inc.* | 3,000 | 98,400 | |||||
16 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Security description | Shares | Value | |||||
Common stocks(continued) | |||||||
Communications equipment(concluded) | |||||||
Nortel Networks Corp.* | 25,433 | $686 | |||||
QUALCOMM, Inc. | 79,900 | 4,760,442 | |||||
Riverbed Technology, Inc.* | 15,400 | 635,866 | |||||
9,244,850 | |||||||
Computers & peripherals5.01% | |||||||
Apple, Inc.* | 25,400 | 8,971,534 | |||||
EMC Corp.* | 50,700 | 1,379,547 | |||||
Hewlett-Packard Co. | 79,100 | 3,451,133 | |||||
SanDisk Corp.* | 9,200 | 456,320 | |||||
Seagate Technology* | 109,500 | 1,390,650 | |||||
SMART Technologies, Inc., Class A1,* | 6,700 | 61,573 | |||||
15,710,757 | |||||||
Construction & engineering0.03% | |||||||
MasTec, Inc.* | 5,500 | 102,410 | |||||
Diversified consumer services0.51% | |||||||
Apollo Group, Inc., Class A* | 30,700 | 1,389,482 | |||||
Coinstar, Inc.1,* | 2,800 | 119,504 | |||||
Universal Technical Institute, Inc. | 5,700 | 104,880 | |||||
1,613,866 | |||||||
Diversified financial services2.46% | |||||||
Citigroup, Inc.* | 457,100 | 2,139,228 | |||||
CME Group, Inc. | 2,300 | 715,944 | |||||
IntercontinentalExchange, Inc.* | 2,600 | 333,320 | |||||
JPMorgan Chase & Co. | 97,000 | 4,528,930 | |||||
7,717,422 | |||||||
Diversified telecommunication services1.19% | |||||||
AT&T, Inc. | 128,600 | 3,649,668 | |||||
Cbeyond, Inc.* | 5,100 | 71,298 | |||||
3,720,966 | |||||||
Security description | Shares | Value | |||||
Common stocks(continued) | |||||||
Electric utilities2.03% | |||||||
American Electric Power Co., Inc. | 84,500 | $3,023,410 | |||||
FirstEnergy Corp. | 45,500 | 1,742,650 | |||||
NextEra Energy, Inc. | 28,600 | 1,586,442 | |||||
6,352,502 | |||||||
Electrical equipment0.20% | |||||||
Regal-Beloit Corp. | 2,100 | 153,195 | |||||
Roper Industries, Inc. | 5,600 | 471,128 | |||||
624,323 | |||||||
Electronic equipment, instruments & components0.05% | |||||||
NeoPhotonics Corp.* | 2,500 | 45,875 | |||||
Rofin-Sinar Technologies, Inc.* | 2,900 | 112,462 | |||||
158,337 | |||||||
Energy equipment & services2.83% | |||||||
Baker Hughes, Inc. | 28,700 | 2,039,135 | |||||
Bristow Group, Inc.* | 2,100 | 100,632 | |||||
Dril-Quip, Inc.* | 1,100 | 84,370 | |||||
Ensco PLC, ADR | 36,900 | 2,070,090 | |||||
FMC Technologies, Inc.* | 4,100 | 385,605 | |||||
Noble Corp. | 74,200 | 3,317,482 | |||||
Schlumberger Ltd. | 6,500 | 607,230 | |||||
TETRA Technologies, Inc.* | 11,000 | 151,910 | |||||
Willbros Group, Inc.* | 10,800 | 122,688 | |||||
8,879,142 | |||||||
Food & staples retailing1.05% | |||||||
CVS Caremark Corp. | 19,500 | 644,670 | |||||
Kroger Co. | 115,500 | 2,644,950 | |||||
3,289,620 | |||||||
Food products0.88% | |||||||
Kellogg Co. | 51,400 | 2,752,984 | |||||
Gas utilities0.02% | |||||||
AGL Resources, Inc. | 1,700 | 64,617 | |||||
17 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Security description | Shares | Value | |||||
Common stocks(continued) | |||||||
Health care equipment & supplies2.64% | |||||||
AngioDynamics, Inc.* | 5,400 | $90,828 | |||||
Baxter International, Inc. | 33,200 | 1,764,580 | |||||
CONMED Corp.* | 3,200 | 84,736 | |||||
Covidien PLC | 63,600 | 3,272,220 | |||||
Greatbatch, Inc.* | 3,300 | 82,104 | |||||
ICU Medical, Inc.* | 2,700 | 113,373 | |||||
Integra LifeSciences Holdings* | 2,400 | 120,360 | |||||
Medtronic, Inc. | 64,700 | 2,582,824 | |||||
Synovis Life Technologies, Inc.* | 3,100 | 61,194 | |||||
The Cooper Cos., Inc. | 1,900 | 117,458 | |||||
8,289,677 | |||||||
Health care providers & services1.35% | |||||||
ePocrates, Inc.1,* | 1,200 | 26,040 | |||||
Express Scripts, Inc.* | 7,300 | 410,406 | |||||
Owens & Minor, Inc. | 3,700 | 115,440 | |||||
Patterson Cos., Inc. | 2,600 | 86,788 | |||||
PSS World Medical, Inc.* | 3,700 | 96,274 | |||||
UnitedHealth Group, Inc. | 82,100 | 3,495,818 | |||||
4,230,766 | |||||||
Health care technology0.06% | |||||||
Emdeon, Inc., Class A* | 12,547 | 196,988 | |||||
Hotels, restaurants & leisure2.32% | |||||||
Carnival Corp. | 79,300 | 3,383,731 | |||||
International Game Technology | 112,300 | 1,848,458 | |||||
Las Vegas Sands Corp.* | 13,800 | 643,632 | |||||
McDonalds Corp. | 15,600 | 1,180,608 | |||||
OCharleys, Inc.* | 9,800 | 62,230 | |||||
Summit Hotel Properties, Inc.* | 7,400 | 72,150 | |||||
WMS Industries, Inc.* | 2,500 | 99,475 | |||||
7,290,284 | |||||||
Security description | Shares | Value | |||||
Common stocks(continued) | |||||||
Household durables0.85% | |||||||
Fortune Brands, Inc. | 43,100 | $2,666,166 | |||||
Household products1.05% | |||||||
Spectrum Brands Holdings, Inc.* | 3,700 | 106,190 | |||||
The Procter & Gamble Co. | 50,400 | 3,177,720 | |||||
3,283,910 | |||||||
Insurance1.82% | |||||||
AFLAC, Inc. | 48,200 | 2,837,052 | |||||
MetLife, Inc. | 58,500 | 2,770,560 | |||||
Seabright Insurance Holdings | 7,200 | 75,816 | |||||
Tower Group, Inc. | 1,300 | 35,334 | |||||
5,718,762 | |||||||
Internet & catalog retail1.58% | |||||||
Amazon.com, Inc.* | 23,300 | 4,037,657 | |||||
Priceline.com, Inc.* | 2,000 | 907,760 | |||||
4,945,417 | |||||||
Internet software & services0.86% | |||||||
Baidu, Inc., ADR* | 5,800 | 702,728 | |||||
Digital River, Inc.* | 2,300 | 77,234 | |||||
Google, Inc., Class A* | 2,800 | 1,717,520 | |||||
Intralinks Holdings, Inc.* | 2,000 | 56,380 | |||||
RightNow Technologies, Inc.* | 2,200 | 58,718 | |||||
ValueClick, Inc.* | 6,700 | 100,031 | |||||
2,712,611 | |||||||
IT services0.86% | |||||||
MasterCard, Inc., Class A | 1,600 | 384,896 | |||||
Teradata Corp.* | 12,300 | 588,186 | |||||
Visa, Inc., Class A | 23,500 | 1,716,675 | |||||
2,689,757 | |||||||
Life sciences tools & services0.43% | |||||||
Agilent Technologies, Inc.* | 16,700 | 702,736 | |||||
Bio-Rad Laboratories, Inc., Class A* | 5,700 | 650,712 | |||||
1,353,448 | |||||||
18 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Security description | Shares | Value | |||||
Common stocks(continued) | |||||||
Machinery3.05% | |||||||
Danaher Corp. | 12,600 | $637,560 | |||||
Dover Corp. | 40,300 | 2,589,275 | |||||
Illinois Tool Works, Inc. | 63,400 | 3,429,940 | |||||
Kaydon Corp. | 2,200 | 86,328 | |||||
PACCAR, Inc. | 15,700 | 787,041 | |||||
Pall Corp. | 29,200 | 1,587,312 | |||||
Parker Hannifin Corp. | 4,900 | 436,982 | |||||
9,554,438 | |||||||
Media3.41% | |||||||
Cinemark Holdings, Inc. | 5,200 | 104,416 | |||||
Comcast Corp., Class A | 143,500 | 3,696,560 | |||||
Discovery Communications, Inc., Class A* | 14,000 | 603,540 | |||||
Focus Media Holding Ltd., ADR* | 20,600 | 546,312 | |||||
ReachLocal, Inc.1,* | 2,600 | 49,504 | |||||
Time Warner, Inc. | 88,000 | 3,361,600 | |||||
Valassis Communications, Inc.* | 3,000 | 84,660 | |||||
Viacom Inc., Class B | 50,300 | 2,246,398 | |||||
10,692,990 | |||||||
Metals & mining0.17% | |||||||
Freeport-McMoRan Copper & Gold, Inc. | 10,200 | 540,090 | |||||
Oil, gas & consumable fuels6.10% | |||||||
Anadarko Petroleum Corp. | 7,000 | 572,810 | |||||
Cimarex Energy Co. | 3,300 | 383,229 | |||||
Comstock Resources, Inc.* | 3,400 | 90,270 | |||||
Concho Resources, Inc.* | 6,500 | 692,380 | |||||
CONSOL Energy, Inc. | 10,100 | 512,171 | |||||
EOG Resources, Inc. | 17,000 | 1,909,270 | |||||
Exxon Mobil Corp. | 104,300 | 8,920,779 | |||||
Hess Corp. | 28,100 | 2,445,543 | |||||
Security description | Shares | Value | |||||
Common stocks(continued) | |||||||
Oil, gas & consumable fuels(concluded) | |||||||
Occidental Petroleum Corp. | 4,700 | $479,259 | |||||
Suncor Energy, Inc. | 7,600 | 357,352 | |||||
Ultra Petroleum Corp.* | 61,000 | 2,766,350 | |||||
19,129,413 | |||||||
Personal products0.77% | |||||||
Avon Products, Inc. | 83,700 | 2,327,697 | |||||
Prestige Brands Holdings, Inc.* | 7,900 | 87,058 | |||||
2,414,755 | |||||||
Pharmaceuticals3.36% | |||||||
Allergan, Inc. | 45,700 | 3,389,569 | |||||
Johnson & Johnson | 58,900 | 3,618,816 | |||||
Merck & Co., Inc. | 93,200 | 3,035,524 | |||||
Watson Pharmaceuticals, Inc.* | 8,900 | 498,311 | |||||
10,542,220 | |||||||
Professional services0.02% | |||||||
Heidrick & Struggles International, Inc. | 2,900 | 78,967 | |||||
Real estate investment trusts0.13% | |||||||
American Campus Communities, Inc. | 1,900 | 63,498 | |||||
Cypress Sharpridge Investments, Inc. | 6,800 | 84,728 | |||||
Entertainment Properties Trust | 1,700 | 81,039 | |||||
Hudson Pacific Properties, Inc. | 5,700 | 85,785 | |||||
Invesco Mortgage Capital, Inc. | 4,000 | 93,360 | |||||
408,410 | |||||||
Road & rail1.81% | |||||||
Hertz Global Holdings, Inc.* | 103,100 | 1,568,151 | |||||
Norfolk Southern Corp. | 35,800 | 2,347,764 | |||||
Ryder System, Inc. | 28,700 | 1,372,721 | |||||
Union Pacific Corp. | 4,000 | 381,640 | |||||
5,670,276 | |||||||
19 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Security description | Shares | Value | |||||
Common stocks(continued) | |||||||
Semiconductors & semiconductor equipment0.94% | |||||||
Intersil Corp., Class A | 94,800 | $1,212,492 | |||||
National Semiconductor Corp. | 106,200 | 1,646,100 | |||||
ON Semiconductor Corp.* | 7,200 | 80,280 | |||||
2,938,872 | |||||||
Software4.57% | |||||||
Adobe Systems, Inc.* | 109,800 | 3,788,100 | |||||
Autodesk, Inc.* | 52,800 | 2,220,240 | |||||
Blackboard, Inc.1,* | 2,000 | 70,020 | |||||
Cadence Design Systems, Inc.* | 7,200 | 71,640 | |||||
Microsoft Corp. | 172,000 | 4,571,760 | |||||
NICE Systems Ltd., ADR* | 1,800 | 62,361 | |||||
Nuance Communications, Inc.* | 4,200 | 78,372 | |||||
Oracle Corp. | 27,600 | 908,040 | |||||
RealPage, Inc.* | 2,100 | 52,080 | |||||
Red Hat, Inc.* | 7,900 | 326,112 | |||||
Solera Holdings, Inc. | 1,200 | 61,296 | |||||
SS&C Technologies Holdings, Inc.* | 3,800 | 74,442 | |||||
Symantec Corp.* | 110,900 | 1,999,527 | |||||
Websense, Inc.* | 2,800 | 59,976 | |||||
14,343,966 | |||||||
Specialty retail1.31% | |||||||
Childrens Place Retail Stores, Inc.* | 1,800 | 82,260 | |||||
GameStop Corp., Class A1,* | 72,600 | 1,448,370 | |||||
Lowes Cos., Inc. | 95,200 | 2,491,384 | |||||
PetSmart, Inc. | 2,000 | 81,740 | |||||
4,103,754 | |||||||
Textiles, apparel & luxury goods0.27% | |||||||
Movado Group, Inc.* | 4,200 | 59,094 | |||||
Nike, Inc., Class B | 8,000 | 712,240 | |||||
Skechers USA, Inc., Class A* | 3,300 | 68,574 | |||||
839,908 | |||||||
Security description | Shares | Value | |||||
Common stocks(concluded) | |||||||
Trading companies & distributors0.06% | |||||||
Beacon Roofing Supply, Inc.* | 4,600 | $97,566 | |||||
Interline Brands, Inc.* | 4,300 | 94,213 | |||||
191,779 | |||||||
Wireless telecommunication services0.36% | |||||||
American Tower Corp., Class A* | 5,800 | 312,968 | |||||
Crown Castle International Corp.* | 19,300 | 813,495 | |||||
1,126,463 | |||||||
Total common stocks | |||||||
(cost$192,253,670) | 229,171,828 | ||||||
Preferred stocks0.00% | |||||||
Consumer finance0.00% | |||||||
Ally Financial, Inc.1,2,3,* | 5 | 4,765 | |||||
Media0.00% | |||||||
CMP Susquehanna Radio Holdings Corp., Series A4,5,6,* | 2,332 | 23 | |||||
Total preferred stocks | |||||||
(cost$271) | 4,788 | ||||||
Investment company4.03% | |||||||
UBS Credit Bond Relationship Fund7,* (cost$11,873,481) | 882,042 | 12,634,906 | |||||
Number of | |||||||
warrants | |||||||
Warrants*0.00% | |||||||
Commercial banks0.00% | |||||||
CNB Capital Trust I, expires 03/23/19 (cost$27)4,8 | 2,665 | 27 | |||||
20 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
US government obligations6.63% | |||||||
US Treasury Bonds | |||||||
4.250%, due 11/15/40 |
$ | 1,675,000 | $1,606,692 | ||||
US Treasury Inflation Indexed Bonds | |||||||
2.125%, due 02/15/41 |
470,000 | 487,588 | |||||
US Treasury Notes | |||||||
0.625%, due 12/31/12 |
4,475,000 | 4,475,349 | |||||
0.625%, due 01/31/13 |
6,865,000 | 6,861,513 | |||||
1.875%, due 06/30/15 |
160,000 | 160,350 | |||||
2.000%, due 01/31/16 |
4,600,000 | 4,578,076 | |||||
2.625%, due 11/15/20 |
2,705,000 | 2,530,866 | |||||
3.625%, due 02/15/21 |
80,000 | 81,412 | |||||
Total US government obligations (cost$20,741,192) | 20,781,846 | ||||||
Mortgage & agency debt securities6.84% | |||||||
Federal Home Loan Mortgage Corporation Certificates,** | |||||||
4.000%, due 05/01/23 |
438,859 | 451,890 | |||||
4.000%, due 01/01/41 |
723,660 | 713,241 | |||||
5.000%, due 11/01/38 |
97,699 | 102,323 | |||||
5.500%, due 05/01/37 |
1,576,760 | 1,699,804 | |||||
5.500%, due 07/01/38 |
152,431 | 162,873 | |||||
6.000%, due 10/01/36 |
244,260 | 268,130 | |||||
6.500%, due 08/01/28 |
315,465 | 357,448 | |||||
Federal National Mortgage Association Certificates,** | |||||||
1.250%, due 02/27/14 |
645,000 | 643,891 | |||||
1.625%, due 10/26/15 |
2,905,000 | 2,824,871 | |||||
2.875%, due 12/11/13 |
685,000 | 716,152 | |||||
4.000%, due 01/01/41 |
1,147,987 | 1,133,252 | |||||
4.500%, due 02/01/39 |
237,218 | 242,095 | |||||
4.500%, due 04/01/39 |
786,006 | 802,165 | |||||
4.500%, due 10/01/39 |
520,092 | 530,784 | |||||
5.000%, due 09/01/39 |
743,866 | 781,623 | |||||
5.000%, due 10/01/39 |
102,784 | 107,745 | |||||
5.000%, due 05/01/40 |
130,733 | 137,042 | |||||
5.500%, due 03/01/38 |
84,139 | 90,021 | |||||
5.500%, due 08/01/39 |
484,307 | 521,114 | |||||
6.000%, due 06/01/33 |
8,770 | 9,824 | |||||
21 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Mortgage & agency debt securities(concluded) | |||||||
Federal National Mortgage Association Certificates,** (concluded) | |||||||
6.000%, due 08/01/37 |
$310,739 | $341,449 | |||||
7.000%, due 08/01/32 |
589,646 | 677,532 | |||||
7.500%, due 02/01/33 |
8,997 | 10,407 | |||||
Federal National Mortgage Association Certificates,** | |||||||
4.000%, TBA |
2,800,000 | 2,780,369 | |||||
4.500%, TBA |
1,875,000 | 1,911,036 | |||||
5.000%, TBA |
1,850,000 | 1,937,007 | |||||
5.500%, TBA |
25,000 | 26,719 | |||||
6.000%, TBA |
225,000 | 244,477 | |||||
First Horizon Mortgage Pass-Through Trust, Series 2004-FL1, Class 1A1, | |||||||
0.532%, due 02/25/359 |
147,725 | 119,488 | |||||
Government National Mortgage Association Certificates, | |||||||
6.500%, due 10/15/28 |
6,259 | 7,113 | |||||
Government National Mortgage Association Certificates II, | |||||||
6.000%, due 11/20/28 |
2,783 | 3,069 | |||||
6.000%, due 02/20/29 |
6,564 | 7,243 | |||||
6.000%, due 02/20/34 |
981,978 | 1,089,072 | |||||
Total mortgage & agency debt securities (cost$21,054,214) | 21,451,269 | ||||||
Commercial mortgage-backed securities0.57% | |||||||
Bear Stearns Commercial Mortgage Securities, | |||||||
Series 2006-PW12, Class A4, |
|||||||
5.722%, due 09/11/389 |
300,000 | 330,210 | |||||
Commercial Mortgage Pass Through Certificates, | |||||||
Series 2006-C8, Class A4, |
|||||||
5.306%, due 12/10/46 |
200,000 | 211,483 | |||||
FDIC Structured Sale Guaranteed Notes, Series 2010-C1, Class A, | |||||||
2.980%, due 12/06/202 |
336,102 | 336,015 | |||||
Greenwich Capital Commercial Funding Corp., | |||||||
Series 2007-GG9, Class A4, |
|||||||
5.444%, due 03/10/39 |
375,000 | 400,614 | |||||
Series 2007-GG11, Class A4, |
|||||||
5.736%, due 12/10/49 |
250,000 | 267,976 | |||||
Holmes Master Issuer PLC, Series 2011-1A, Class A2, | |||||||
1.641%, due 10/15/542,9 |
225,000 | 224,995 | |||||
Total commercial mortgage-backed securities (cost$1,598,324) | 1,771,293 | ||||||
22 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds5.87% | |||||||
Aerospace & defense0.07% | |||||||
BE Aerospace, Inc. | |||||||
6.875%, due 10/01/20 |
$150,000 | $156,375 | |||||
DAE Aviation Holdings | |||||||
11.250%, due 08/01/152 |
35,000 | 36,837 | |||||
Spirit AeroSystems, Inc. | |||||||
7.500%, due 10/01/17 |
25,000 | 26,563 | |||||
219,775 | |||||||
Airlines0.05% | |||||||
AMGH Merger Sub, Inc. | |||||||
9.250%, due 11/01/182 |
25,000 | 26,938 | |||||
Delta Air Lines, Inc. | |||||||
12.250%, due 03/15/152,10 |
75,000 | 85,875 | |||||
Global Aviation Holdings, Inc. | |||||||
14.000%, due 08/15/13 |
45,000 | 51,862 | |||||
164,675 | |||||||
Automobile OEM0.04% | |||||||
Ford Motor Co. | |||||||
7.450%, due 07/16/311 |
115,000 | 125,171 | |||||
Automotive parts0.06% | |||||||
Allison Transmission, Inc. | |||||||
11.000%, due 11/01/152 |
50,000 | 54,375 | |||||
ArvinMeritor, Inc. | |||||||
10.625%, due 03/15/18 |
30,000 | 34,275 | |||||
Goodyear Tire & Rubber Co. | |||||||
10.500%, due 05/15/16 |
65,000 | 74,100 | |||||
Navistar International Corp. | |||||||
8.250%, due 11/01/21 |
25,000 | 27,687 | |||||
Tenneco, Inc. | |||||||
7.750%, due 08/15/18 |
10,000 | 10,763 | |||||
201,200 | |||||||
Banking-non-US0.04% | |||||||
HBOS Capital Funding LP | |||||||
6.071%, due 06/30/142,9,11 |
65,000 | 58,175 | |||||
ING Groep N.V. | |||||||
5.775%, due 12/08/159,11 |
50,000 | 44,500 | |||||
23 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Banking-non-US(concluded) | |||||||
NB Capital Trust II | |||||||
7.830%, due 12/15/26 |
$25,000 | $25,250 | |||||
127,925 | |||||||
Banking-US0.63% | |||||||
Bank of America Corp. | |||||||
5.420%, due 03/15/17 |
300,000 | 307,359 | |||||
BankAmerica Capital II | |||||||
8.000%, due 12/15/26 |
75,000 | 76,125 | |||||
CIT Group, Inc. | |||||||
7.000%, due 05/01/13 |
30,494 | 31,104 | |||||
7.000%, due 05/01/17 |
450,000 | 453,375 | |||||
Citigroup Capital XXI | |||||||
8.300%, due 12/21/579 |
135,000 | 139,050 | |||||
Citigroup, Inc. | |||||||
6.125%, due 05/15/18 |
150,000 | 164,485 | |||||
Merrill Lynch & Co. | |||||||
5.700%, due 05/02/17 |
105,000 | 109,243 | |||||
Morgan Stanley | |||||||
5.500%, due 01/26/20 |
65,000 | 65,850 | |||||
Morgan Stanley MTN | |||||||
6.625%, due 04/01/18 |
250,000 | 276,360 | |||||
Washington Mutual, Inc. | |||||||
5.500%, due 01/15/1312 |
585,000 | 731 | |||||
Wells Fargo Bank N.A. | |||||||
5.950%, due 08/26/36 |
310,000 | 324,634 | |||||
Zions Bancorp. | |||||||
5.500%, due 11/16/15 |
30,000 | 30,138 | |||||
1,978,454 | |||||||
Beverage/bottling0.05% | |||||||
Anheuser-Busch InBev Worldwide, Inc. | |||||||
4.125%, due 01/15/15 |
85,000 | 90,335 | |||||
Constellation Brands, Inc. | |||||||
8.375%, due 12/15/14 |
60,000 | 67,500 | |||||
157,835 | |||||||
24 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Building materials0.05% | |||||||
Cemex Espana Luxembourg | |||||||
9.250%, due 05/12/202 |
$75,000 | $77,250 | |||||
Hanson Ltd. | |||||||
6.125%, due 08/15/16 |
40,000 | 41,400 | |||||
USG Corp. | |||||||
9.750%, due 08/01/142 |
25,000 | 27,187 | |||||
145,837 | |||||||
Business services/office equipment0.06% | |||||||
Harland Clarke Holdings | |||||||
9.500%, due 05/15/15 |
75,000 | 73,687 | |||||
West Corp. | |||||||
7.875%, due 01/15/192 |
45,000 | 46,181 | |||||
11.000%, due 10/15/161 |
50,000 | 54,438 | |||||
174,306 | |||||||
Chemicals0.10% | |||||||
Ashland, Inc. | |||||||
9.125%, due 06/01/17 |
40,000 | 46,525 | |||||
Celanese US Holdings LLC | |||||||
6.625%, due 10/15/182 |
25,000 | 26,125 | |||||
Georgia Gulf Corp. | |||||||
9.000%, due 01/15/172 |
5,000 | 5,562 | |||||
Hexion US Finance Corp./Hexion Nova Scotia Finance ULC | |||||||
8.875%, due 02/01/18 |
25,000 | 26,844 | |||||
Ineos Group Holdings PLC | |||||||
8.500%, due 02/15/161,2 |
105,000 | 106,050 | |||||
Momentive Performance Materials, Inc. | |||||||
12.500%, due 06/15/14 |
15,000 | 16,744 | |||||
Nalco Co. | |||||||
6.625%, due 01/15/192 |
50,000 | 51,687 | |||||
NOVA Chemicals Corp. | |||||||
8.625%, due 11/01/19 |
25,000 | 27,625 | |||||
307,162 | |||||||
25 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Coal0.03% | |||||||
Consol Energy, Inc. | |||||||
8.000%, due 04/01/172 |
$45,000 | $48,825 | |||||
Patriot Coal Corp. | |||||||
8.250%, due 04/30/18 |
50,000 | 53,500 | |||||
102,325 | |||||||
Commercial services0.01% | |||||||
DynCorp International, Inc. | |||||||
10.375%, due 07/01/172 |
20,000 | 21,500 | |||||
Interactive Data Corp. | |||||||
10.250%, due 08/01/182 |
5,000 | 5,575 | |||||
27,075 | |||||||
Consumer products-non durables0.09% | |||||||
ACCO Brands Corp. | |||||||
10.625%, due 03/15/15 |
25,000 | 28,250 | |||||
Sealy Mattress Co. | |||||||
10.875%, due 04/15/162 |
9,000 | 10,215 | |||||
Toys R US Property Co. II LLC | |||||||
8.500%, due 12/01/17 |
120,000 | 130,500 | |||||
Yankee Acquisition Corp., Series B | |||||||
8.500%, due 02/15/151 |
20,000 | 20,925 | |||||
9.750%, due 02/15/171 |
50,000 | 53,375 | |||||
YCC Holdings LLC/Yankee Finance, Inc. | |||||||
10.250%, due 02/15/161,2,13 |
50,000 | 51,500 | |||||
294,765 | |||||||
Consumer services0.02% | |||||||
Avis Budget Car Rental/Avis Budget Finance, Inc. | |||||||
9.625%, due 03/15/18 |
20,000 | 22,350 | |||||
Hertz Corp. | |||||||
7.375%, due 01/15/212 |
50,000 | 52,250 | |||||
74,600 | |||||||
Distribution/wholesale0.04% | |||||||
McJunkin Red Man Corp. | |||||||
9.500%, due 12/15/162 |
130,000 | 128,700 | |||||
26 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Diversified manufacturing0.04% | |||||||
Bombardier, Inc. | |||||||
7.500%, due 03/15/182 |
$20,000 | $21,500 | |||||
7.750%, due 03/15/202 |
25,000 | 27,125 | |||||
SPX Corp. | |||||||
7.625%, due 12/15/14 |
65,000 | 71,175 | |||||
119,800 | |||||||
Electric-generation0.19% | |||||||
AES Corp. | |||||||
8.000%, due 06/01/20 |
100,000 | 109,500 | |||||
Calpine Construction Finance/CCFC Finance Corp. | |||||||
8.000%, due 06/01/162 |
50,000 | 54,250 | |||||
Calpine Corp. | |||||||
7.875%, due 07/31/202 |
115,000 | 121,613 | |||||
Dynegy Holdings, Inc. | |||||||
8.375%, due 05/01/16 |
40,000 | 32,100 | |||||
Edison Mission Energy | |||||||
7.000%, due 05/15/17 |
100,000 | 81,250 | |||||
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc. | |||||||
10.000%, due 12/01/20 |
80,000 | 83,508 | |||||
Mirant Americas Generation LLC | |||||||
9.125%, due 05/01/31 |
40,000 | 41,600 | |||||
North American Energy Alliance LLC/ North American Energy Finance Corp. | |||||||
10.875%, due 06/01/162 |
50,000 | 56,500 | |||||
NRG Energy, Inc. | |||||||
8.500%, due 06/15/19 |
15,000 | 15,975 | |||||
596,296 | |||||||
Electric-integrated0.06% | |||||||
E.ON International Finance BV | |||||||
5.800%, due 04/30/182 |
80,000 | 90,133 | |||||
Oncor Electric Delivery Co. LLC | |||||||
6.800%, due 09/01/18 |
80,000 | 92,898 | |||||
Texas Competitive Electric Holdings Co. LLC, Series A | |||||||
10.250%, due 11/01/1510 |
35,000 | 19,688 | |||||
202,719 | |||||||
27 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Electronics0.11% | |||||||
Freescale Semiconductor, Inc. | |||||||
9.250%, due 04/15/182 |
$25,000 | $27,875 | |||||
10.750%, due 08/01/201,2 |
60,000 | 69,300 | |||||
KEMET Corp. | |||||||
10.500%, due 05/01/18 |
25,000 | 28,375 | |||||
NXP BV/NXP Funding LLC | |||||||
9.500%, due 10/15/151 |
100,000 | 106,750 | |||||
Sanmina-SCI Corp. | |||||||
8.125%, due 03/01/16 |
100,000 | 103,000 | |||||
335,300 | |||||||
Energy-exploration & production0.22% | |||||||
Alta Mesa Holdings/Alta Mesa Finance Services Corp. | |||||||
9.625%, due 10/15/182 |
100,000 | 101,250 | |||||
Denbury Resources, Inc. | |||||||
8.250%, due 02/15/20 |
25,000 | 27,812 | |||||
9.750%, due 03/01/16 |
75,000 | 85,125 | |||||
Forest Oil Corp. | |||||||
8.500%, due 02/15/14 |
30,000 | 33,375 | |||||
Helix Energy Solutions | |||||||
9.500%, due 01/15/162 |
100,000 | 104,000 | |||||
Hilcorp Energy I LP/Hilcorp Finance Co. | |||||||
7.625%, due 04/15/212 |
10,000 | 10,550 | |||||
8.000%, due 02/15/202 |
20,000 | 21,450 | |||||
Linn Energy LLC/Linn Energy Finance Corp. | |||||||
7.750%, due 02/01/212 |
50,000 | 53,125 | |||||
11.750%, due 05/15/17 |
35,000 | 40,775 | |||||
Plains Exploration & Production Co. | |||||||
10.000%, due 03/01/16 |
55,000 | 62,425 | |||||
Pride International, Inc. | |||||||
6.875%, due 08/15/20 |
5,000 | 5,575 | |||||
Quicksilver Resources, Inc. | |||||||
11.750%, due 01/01/16 |
30,000 | 35,025 | |||||
SandRidge Energy, Inc. | |||||||
8.750%, due 01/15/201 |
45,000 | 48,600 | |||||
9.875%, due 05/15/162 |
45,000 | 49,950 | |||||
679,037 | |||||||
28 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Energy-independent0.17% | |||||||
Chesapeake Energy Corp. | |||||||
6.625%, due 08/15/20 |
$30,000 | $31,500 | |||||
9.500%, due 02/15/15 |
115,000 | 142,600 | |||||
Comstock Resources, Inc. | |||||||
8.375%, due 10/15/17 |
20,000 | 20,825 | |||||
Encore Acquisition Co. | |||||||
9.500%, due 05/01/16 |
30,000 | 33,900 | |||||
Gulfmark Offshore, Inc. | |||||||
7.750%, due 07/15/1410 |
40,000 | 40,600 | |||||
Key Energy Services, Inc. | |||||||
8.375%, due 12/01/14 |
80,000 | 87,000 | |||||
PetroHawk Energy Corp. | |||||||
7.875%, due 06/01/15 |
80,000 | 84,800 | |||||
10.500%, due 08/01/14 |
50,000 | 57,500 | |||||
Swift Energy Co. | |||||||
8.875%, due 01/15/20 |
30,000 | 32,850 | |||||
531,575 | |||||||
Energy-oilfield services0.04% | |||||||
Aquilex Holdings/Aquilex Finance Corp. | |||||||
11.125%, due 12/15/16 |
10,000 | 10,525 | |||||
Cie Generale de Geophysique-Veritas | |||||||
7.750%, due 05/15/17 |
35,000 | 37,013 | |||||
Expro Finance Luxembourg SCA | |||||||
8.500%, due 12/15/162 |
75,000 | 77,062 | |||||
124,600 | |||||||
Energy-refining & marketing0.02% | |||||||
Tesoro Corp. | |||||||
9.750%, due 06/01/19 |
55,000 | 62,013 | |||||
Entertainment0.05% | |||||||
AMC Entertainment, Inc. | |||||||
8.750%, due 06/01/19 |
40,000 | 42,950 | |||||
WMG Acquisition Corp. | |||||||
9.500%, due 06/15/16 |
95,000 | 101,175 | |||||
144,125 | |||||||
29 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Environmental0.01% | |||||||
Casella Waste Systems, Inc. | |||||||
11.000%, due 07/15/14 |
$25,000 | $28,375 | |||||
Finance-noncaptive consumer0.01% | |||||||
Residential Capital LLC | |||||||
9.625%, due 05/15/15 |
25,000 | 25,250 | |||||
Finance-noncaptive diversified0.17% | |||||||
Ally Financial, Inc. | |||||||
6.875%, due 09/15/11 |
24,000 | 24,540 | |||||
7.500%, due 09/15/202 |
50,000 | 54,688 | |||||
8.000%, due 03/15/20 |
60,000 | 67,575 | |||||
8.300%, due 02/12/15 |
70,000 | 79,012 | |||||
BNP Paribas MTN | |||||||
3.600%, due 02/23/16 |
220,000 | 221,336 | |||||
E*Trade Financial Corp. | |||||||
12.500%, due 11/30/1713 |
63,000 | 74,655 | |||||
521,806 | |||||||
Finance-other0.17% | |||||||
Ford Motor Credit Co. LLC | |||||||
12.000%, due 05/15/15 |
100,000 | 126,287 | |||||
FTI Consulting, Inc. | |||||||
6.750%, due 10/01/202 |
25,000 | 25,000 | |||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | |||||||
8.000%, due 01/15/18 |
25,000 | 25,875 | |||||
International Lease Finance Corp. | |||||||
7.125%, due 09/01/182 |
100,000 | 109,125 | |||||
8.625%, due 09/15/152 |
70,000 | 78,925 | |||||
8.750%, due 03/15/172 |
20,000 | 22,850 | |||||
Pinafore LLC/Pinafore, Inc. | |||||||
9.000%, due 10/01/182 |
70,000 | 77,875 | |||||
SquareTwo Financial Corp. | |||||||
11.625%, due 04/01/172 |
75,000 | 75,188 | |||||
541,125 | |||||||
30 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Food0.09% | |||||||
Land OLakes Capital Trust I | |||||||
7.450%, due 03/15/282 |
$75,000 | $67,594 | |||||
Michael Foods, Inc. | |||||||
9.750%, due 07/15/182 |
50,000 | 54,750 | |||||
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp. | |||||||
10.625%, due 04/01/171 |
55,000 | 58,987 | |||||
Smithfield Foods, Inc. | |||||||
10.000%, due 07/15/14 |
22,000 | 25,960 | |||||
Tyson Foods, Inc. | |||||||
10.500%, due 03/01/14 |
35,000 | 42,263 | |||||
Viskase Cos., Inc. | |||||||
9.875%, due 01/15/182 |
40,000 | 42,800 | |||||
292,354 | |||||||
Food-wholesale0.03% | |||||||
ARAMARK Corp. | |||||||
8.500%, due 02/01/15 |
85,000 | 88,825 | |||||
Gaming0.43% | |||||||
Boyd Gaming Corp. | |||||||
9.125%, due 12/01/182 |
100,000 | 105,000 | |||||
FireKeepers Development Authority | |||||||
13.875%, due 05/01/152 |
165,000 | 196,556 | |||||
Harrahs Operating Co., Inc. | |||||||
10.000%, due 12/15/18 |
175,000 | 164,500 | |||||
11.250%, due 06/01/17 |
155,000 | 175,925 | |||||
Marina District Finance Co., Inc. | |||||||
9.500%, due 10/15/152 |
105,000 | 109,462 | |||||
MGM Resorts International | |||||||
10.000%, due 11/01/161,2 |
110,000 | 116,875 | |||||
10.375%, due 05/15/14 |
30,000 | 33,600 | |||||
11.125%, due 11/15/17 |
70,000 | 80,675 | |||||
13.000%, due 11/15/13 |
40,000 | 47,900 | |||||
Peninsula Gaming LLC | |||||||
8.375%, due 08/15/15 |
25,000 | 26,813 | |||||
Pokagon Gaming Authority | |||||||
10.375%, due 06/15/142 |
93,000 | 96,952 | |||||
31 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Gaming(concluded) | |||||||
Shingle Springs Tribal Gaming Authority | |||||||
9.375%, due 06/15/152 |
$75,000 | $51,000 | |||||
Tunica-Biloxi Gaming Authority | |||||||
9.000%, due 11/15/152 |
75,000 | 74,813 | |||||
Yonkers Racing Corp. | |||||||
11.375%, due 07/15/162 |
50,000 | 56,125 | |||||
1,336,196 | |||||||
Gas distributors0.06% | |||||||
Ferrellgas Partners LP | |||||||
8.625%, due 06/15/20 |
40,000 | 43,500 | |||||
9.125%, due 10/01/17 |
60,000 | 66,300 | |||||
Niska Gas Storage US LLC/Niska Gas Storage Canada ULC | |||||||
8.875%, due 03/15/182 |
75,000 | 81,750 | |||||
191,550 | |||||||
Gas pipelines0.14% | |||||||
Atlas Pipeline Partners LP | |||||||
8.750%, due 06/15/18 |
40,000 | 42,800 | |||||
Nustar Logistics LP | |||||||
7.650%, due 04/15/18 |
140,000 | 163,279 | |||||
Sonat, Inc. | |||||||
7.000%, due 02/01/18 |
150,000 | 166,748 | |||||
Trans-Canada Pipelines Ltd. | |||||||
7.625%, due 01/15/39 |
60,000 | 74,548 | |||||
447,375 | |||||||
Health care0.26% | |||||||
Accellent, Inc. | |||||||
8.375%, due 02/01/17 |
50,000 | 53,000 | |||||
Apria Healthcare Group, Inc. | |||||||
11.250%, due 11/01/14 |
135,000 | 146,137 | |||||
Biomet, Inc. | |||||||
10.375%, due 10/15/1713 |
75,000 | 83,906 | |||||
Capella Healthcare, Inc. | |||||||
9.250%, due 07/01/172 |
10,000 | 10,750 | |||||
Carriage Services, Inc. | |||||||
7.875%, due 01/15/15 |
70,000 | 71,050 | |||||
32 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Health care(concluded) | |||||||
HCA Holdings, Inc. | |||||||
7.750%, due 05/15/211,2 |
$50,000 | $52,625 | |||||
Multiplan, Inc. | |||||||
9.875%, due 09/01/182 |
125,000 | 134,531 | |||||
Prospect Medical Holdings, Inc. | |||||||
12.750%, due 07/15/14 |
40,000 | 44,150 | |||||
Radiation Therapy Services, Inc. | |||||||
9.875%, due 04/15/17 |
25,000 | 25,750 | |||||
Tenet Healthcare Corp. | |||||||
6.875%, due 11/15/31 |
50,000 | 40,125 | |||||
8.875%, due 07/01/19 |
75,000 | 85,313 | |||||
Universal Hospital Services | |||||||
8.500%, due 06/01/1513 |
10,000 | 10,450 | |||||
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II, Inc. | |||||||
8.000%, due 02/01/18 |
50,000 | 51,375 | |||||
809,162 | |||||||
Home construction0.08% | |||||||
Beazer Homes USA, Inc. | |||||||
6.875%, due 07/15/15 |
25,000 | 24,813 | |||||
8.125%, due 06/15/16 |
25,000 | 25,406 | |||||
K Hovnanian Enterprises, Inc. | |||||||
10.625%, due 10/15/16 |
30,000 | 32,512 | |||||
KB Home | |||||||
5.875%, due 01/15/15 |
25,000 | 24,937 | |||||
6.250%, due 06/15/15 |
25,000 | 25,000 | |||||
Ryland Group, Inc. | |||||||
6.625%, due 05/01/20 |
50,000 | 49,000 | |||||
Standard Pacific Corp. | |||||||
10.750%, due 09/15/16 |
25,000 | 29,375 | |||||
Toll Brothers Finance Corp. | |||||||
8.910%, due 10/15/17 |
35,000 | 41,160 | |||||
252,203 | |||||||
Housewares0.01% | |||||||
Libbey Glass, Inc. | |||||||
10.000%, due 02/15/15 |
25,000 | 27,313 | |||||
33 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Industrial-other0.02% | |||||||
Belden, Inc. | |||||||
9.250%, due 06/15/19 |
$20,000 | $22,150 | |||||
RBS Global, Inc./Rexnord LLC | |||||||
8.500%, due 05/01/18 |
30,000 | 32,663 | |||||
54,813 | |||||||
Insurance-life0.13% | |||||||
American General Institutional Capital A | |||||||
7.570%, due 12/01/452 |
100,000 | 103,000 | |||||
American International Group, Inc. | |||||||
8.175%, due 05/15/589 |
100,000 | 109,750 | |||||
American International Group, Inc. MTN | |||||||
5.850%, due 01/16/18 |
100,000 | 105,573 | |||||
Hartford Financial Services Group | |||||||
8.125%, due 06/15/389 |
95,000 | 104,975 | |||||
423,298 | |||||||
Insurance-multiline0.06% | |||||||
Glen Meadow Pass-Through Trust | |||||||
6.505%, due 02/12/672,9 |
60,000 | 53,250 | |||||
ING Capital Funding Trust III | |||||||
3.903%, due 06/30/119,11 |
40,000 | 38,381 | |||||
Lincoln National Corp. | |||||||
7.000%, due 05/17/669 |
100,000 | 99,500 | |||||
191,131 | |||||||
Insurance-personal & casualty0.06% | |||||||
Liberty Mutual Group, Inc. | |||||||
7.800%, due 03/15/372 |
25,000 | 25,000 | |||||
10.750%, due 06/15/582,9 |
70,000 | 91,175 | |||||
XL Capital Ltd. | |||||||
6.500%, due 04/15/179,11 |
85,000 | 78,625 | |||||
194,800 | |||||||
Internet software & services0.03% | |||||||
Equinix, Inc. | |||||||
8.125%, due 03/01/18 |
50,000 | 54,250 | |||||
34 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Internet software & services(concluded) | |||||||
MedAssets, Inc. | |||||||
8.000%, due 11/15/182 |
$50,000 | $51,375 | |||||
105,625 | |||||||
Leisure0.02% | |||||||
Brunswick Corp. | |||||||
11.250%, due 11/01/161,2 |
15,000 | 18,038 | |||||
Royal Caribbean Cruises Ltd. | |||||||
7.500%, due 10/15/27 |
40,000 | 39,800 | |||||
57,838 | |||||||
Lodging0.06% | |||||||
Diamond Resorts Corp. | |||||||
12.000%, due 08/15/182 |
125,000 | 134,062 | |||||
Host Hotels & Resorts LP | |||||||
9.000%, due 05/15/171 |
40,000 | 44,900 | |||||
178,962 | |||||||
Machinery-agriculture & construction0.07% | |||||||
Case New Holland, Inc. | |||||||
7.875%, due 12/01/172 |
55,000 | 61,463 | |||||
Caterpillar Financial Services Corp. | |||||||
6.125%, due 02/17/14 |
100,000 | 112,783 | |||||
CPM Holdings, Inc. | |||||||
10.875%, due 09/01/142,10 |
30,000 | 32,475 | |||||
206,721 | |||||||
Manufacturing-diversified0.00% | |||||||
Trimas Corp. | |||||||
9.750%, due 12/15/17 |
10,000 | 11,100 | |||||
Media-broadcast/outdoor0.04% | |||||||
Clear Channel Communications, Inc. | |||||||
10.750%, due 08/01/16 |
50,000 | 48,750 | |||||
Clear Channel Worldwide Holdings, Inc. | |||||||
9.250%, due 12/15/17 |
30,000 | 33,363 | |||||
Nexstar Broadcasting, Inc./Mission Broadcasting, Inc. | |||||||
8.875%, due 04/15/17 |
25,000 | 27,125 | |||||
35 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Media-broadcast/outdoor(concluded) | |||||||
XM Satellite Radio, Inc. | |||||||
13.000%, due 08/01/132 |
$25,000 | $29,812 | |||||
139,050 | |||||||
Media-cable0.11% | |||||||
Cablevision Systems Corp. | |||||||
8.625%, due 09/15/17 |
50,000 | 56,000 | |||||
CSC Holdings LLC | |||||||
8.625%, due 02/15/19 |
25,000 | 28,813 | |||||
DISH DBS Corp. | |||||||
7.750%, due 05/31/15 |
35,000 | 38,237 | |||||
7.875%, due 09/01/19 |
75,000 | 81,281 | |||||
Insight Communications Co., Inc. | |||||||
9.375%, due 07/15/182 |
10,000 | 11,025 | |||||
Time Warner Cable, Inc. | |||||||
6.750%, due 07/01/18 |
100,000 | 114,819 | |||||
UPC Germany GmbH | |||||||
8.125%, due 12/01/172 |
25,000 | 26,813 | |||||
356,988 | |||||||
Media-non cable0.06% | |||||||
CMP Susquehanna Corp. | |||||||
9.875%, due 05/15/144,9,14 |
10,000 | 7,049 | |||||
Gannett Co., Inc. | |||||||
8.750%, due 11/15/14 |
25,000 | 28,687 | |||||
LIN Television Corp. | |||||||
8.375%, due 04/15/18 |
25,000 | 27,188 | |||||
Nielsen Finance LLC/ Nielsen Finance Co. | |||||||
11.625%, due 02/01/14 |
13,000 | 15,275 | |||||
Sinclair Television Group | |||||||
9.250%, due 11/01/172 |
20,000 | 22,600 | |||||
Univision Communications, Inc. | |||||||
8.500%, due 05/15/211,2 |
50,000 | 52,125 | |||||
12.000%, due 07/01/142 |
45,000 | 49,050 | |||||
201,974 | |||||||
36 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Media-publishing0.03% | |||||||
Cengage Learning Acquisitions, Inc. | |||||||
10.500%, due 01/15/152,10 |
$40,000 | $41,500 | |||||
McClatchy Co. | |||||||
11.500%, due 02/15/17 |
35,000 | 39,725 | |||||
81,225 | |||||||
Metals & mining0.08% | |||||||
Freeport-McMoRan Copper & Gold, Inc. | |||||||
8.375%, due 04/01/17 |
40,000 | 44,400 | |||||
Murray Energy Corp. | |||||||
10.250%, due 10/15/152 |
40,000 | 42,700 | |||||
Ryerson, Inc. | |||||||
12.000%, due 11/01/1510 |
105,000 | 112,875 | |||||
Tube City IMS Corp. | |||||||
9.750%, due 02/01/15 |
50,000 | 52,375 | |||||
252,350 | |||||||
Packaging & containers0.04% | |||||||
Berry Plastics Corp. | |||||||
8.250%, due 11/15/151 |
30,000 | 32,137 | |||||
Exopack Holding Corp. | |||||||
11.250%, due 02/01/14 |
40,000 | 41,450 | |||||
Graphic Packaging International, Inc. | |||||||
9.500%, due 06/15/17 |
5,000 | 5,550 | |||||
Owens-Brockway Glass Container, Inc. | |||||||
7.375%, due 05/15/16 |
25,000 | 27,250 | |||||
Solo Cup Co. | |||||||
8.500%, due 02/15/14 |
35,000 | 29,838 | |||||
136,225 | |||||||
Paper & forest products0.12% | |||||||
Boise Paper Holdings LLC/ Boise Finance Co. | |||||||
9.000%, due 11/01/17 |
15,000 | 16,725 | |||||
Georgia-Pacific LLC | |||||||
5.400%, due 11/01/202 |
25,000 | 24,868 | |||||
8.250%, due 05/01/162 |
50,000 | 56,375 | |||||
8.875%, due 05/15/31 |
100,000 | 122,250 | |||||
37 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Paper & forest products(concluded) | |||||||
Sino-Forest Corp. | |||||||
6.250%, due 10/21/171,2 |
$15,000 | $14,625 | |||||
Verso Paper Holdings LLC | |||||||
11.500%, due 07/01/141 |
50,000 | 55,125 | |||||
Series B | |||||||
11.375%, due 08/01/161 |
65,000 | 69,063 | |||||
Weyerhaeuser Co. | |||||||
7.375%, due 03/15/32 |
25,000 | 27,184 | |||||
386,215 | |||||||
Pharmaceuticals0.02% | |||||||
Mylan, Inc. | |||||||
7.625%, due 07/15/172 |
50,000 | 54,938 | |||||
Pipelines0.03% | |||||||
Crosstex Energy LP/Crosstex Energy Finance Corp. | |||||||
8.875%, due 02/15/18 |
80,000 | 88,200 | |||||
Railroads0.05% | |||||||
Burlington Northern Santa Fe Corp. | |||||||
7.082%, due 05/13/29 |
85,000 | 97,976 | |||||
Union Pacific Corp. | |||||||
5.780%, due 07/15/40 |
55,000 | 57,806 | |||||
155,782 | |||||||
Real estate development & management0.03% | |||||||
Realogy Corp. | |||||||
10.500%, due 04/15/14 |
80,000 | 83,200 | |||||
Real estate investment trusts0.07% | |||||||
CB Richard Ellis Services, Inc. | |||||||
11.625%, due 06/15/17 |
50,000 | 58,938 | |||||
Developers Diversified Realty Corp. | |||||||
9.625%, due 03/15/16 |
70,000 | 85,047 | |||||
DuPont Fabros Technology LP | |||||||
8.500%, due 12/15/17 |
75,000 | 82,687 | |||||
226,672 | |||||||
38 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Retail-department0.06% | |||||||
Bon-Ton Department Stores, Inc. | |||||||
10.250%, due 03/15/141 |
$60,000 | $61,575 | |||||
JC Penney Corp., Inc. | |||||||
7.125%, due 11/15/23 |
60,000 | 61,800 | |||||
Macys Retail Holdings, Inc. | |||||||
6.375%, due 03/15/37 |
35,000 | 34,650 | |||||
Neiman Marcus Group, Inc. | |||||||
9.000%, due 10/15/151,13 |
38,982 | 40,834 | |||||
198,859 | |||||||
Retail-discount0.02% | |||||||
Dollar General Corp. | |||||||
11.875%, due 07/15/1713 |
65,000 | 75,400 | |||||
Retail-restaurants0.01% | |||||||
Landrys Restaurants, Inc. | |||||||
11.625%, due 12/01/15 |
40,000 | 43,400 | |||||
Retail-specialty0.14% | |||||||
Burlington Coat Factory | |||||||
10.000%, due 02/15/192 |
100,000 | 101,000 | |||||
Ingles Markets, Inc. | |||||||
8.875%, due 05/15/17 |
70,000 | 75,250 | |||||
Limited Brands, Inc. | |||||||
8.500%, due 06/15/19 |
45,000 | 51,525 | |||||
Michaels Stores, Inc. | |||||||
11.375%, due 11/01/161 |
50,000 | 54,625 | |||||
Petco Animal Supplies, Inc. | |||||||
9.250%, due 12/01/182 |
40,000 | 43,200 | |||||
QVC, Inc. | |||||||
7.125%, due 04/15/172 |
20,000 | 21,350 | |||||
7.500%, due 10/01/192 |
25,000 | 26,687 | |||||
RITE AID Corp. | |||||||
10.375%, due 07/15/16 |
60,000 | 64,500 | |||||
438,137 | |||||||
39 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Steel producers/products0.05% | |||||||
AK Steel Corp. | |||||||
7.625%, due 05/15/20 |
$50,000 | $51,000 | |||||
Severstal Columbus LLC | |||||||
10.250%, due 02/15/182 |
50,000 | 54,500 | |||||
US Steel Corp. | |||||||
7.375%, due 04/01/20 |
50,000 | 52,875 | |||||
158,375 | |||||||
Technology-hardware0.03% | |||||||
Advanced Micro Devices, Inc. | |||||||
8.125%, due 12/15/17 |
25,000 | 26,625 | |||||
Jabil Circuit, Inc. | |||||||
8.250%, due 03/15/18 |
25,000 | 28,437 | |||||
Seagate HDD Cayman | |||||||
7.750%, due 12/15/182 |
50,000 | 51,250 | |||||
106,312 | |||||||
Technology-software0.10% | |||||||
Aspect Software, Inc. | |||||||
10.625%, due 05/15/172 |
10,000 | 10,650 | |||||
First Data Corp. | |||||||
9.875%, due 09/24/151 |
40,000 | 40,400 | |||||
11.250%, due 03/31/161 |
25,000 | 24,125 | |||||
Sungard Data Systems, Inc. | |||||||
10.250%, due 08/15/15 |
165,000 | 173,869 | |||||
Unisys Corp. | |||||||
12.750%, due 10/15/142 |
50,000 | 59,125 | |||||
308,169 | |||||||
Telecom-satellite0.03% | |||||||
Intelsat Bermuda Ltd. | |||||||
11.250%, due 02/04/17 |
75,000 | 82,969 | |||||
Telecom-wireless0.13% | |||||||
Clearwire Communications LLC/Clearwire Finance, Inc. | |||||||
12.000%, due 12/01/152 |
250,000 | 272,500 | |||||
SBA Telecommunications, Inc. | |||||||
8.250%, due 08/15/19 |
75,000 | 82,687 | |||||
40 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(continued) | |||||||
Telecom-wireless(concluded) | |||||||
Wind Acquisition Finance SA | |||||||
11.750%, due 07/15/172 |
$40,000 | $45,900 | |||||
401,087 | |||||||
Telecom-wirelines0.15% | |||||||
BellSouth Corp. | |||||||
6.875%, due 10/15/31 |
65,000 | 71,671 | |||||
Cincinnati Bell, Inc. | |||||||
8.250%, due 10/15/17 |
50,000 | 50,500 | |||||
Qwest Capital Funding, Inc. | |||||||
7.750%, due 02/15/31 |
125,000 | 130,000 | |||||
Verizon Communications, Inc. | |||||||
6.100%, due 04/15/18 |
100,000 | 112,600 | |||||
Windstream Corp. | |||||||
8.625%, due 08/01/16 |
90,000 | 95,175 | |||||
459,946 | |||||||
Telecommunication services0.04% | |||||||
Global Crossing UK Finance PLC | |||||||
10.750%, due 12/15/14 |
50,000 | 51,938 | |||||
PAETEC Escrow Corp. | |||||||
9.875%, due 12/01/182 |
55,000 | 59,262 | |||||
111,200 | |||||||
Telephone-integrated0.12% | |||||||
Frontier Communications Corp. | |||||||
7.875%, due 04/15/15 |
30,000 | 33,225 | |||||
Level 3 Financing, Inc. | |||||||
9.250%, due 11/01/14 |
25,000 | 25,813 | |||||
10.000%, due 02/01/18 |
25,000 | 25,469 | |||||
Sprint Capital Corp. | |||||||
8.375%, due 03/15/12 |
25,000 | 26,531 | |||||
8.750%, due 03/15/32 |
80,000 | 83,200 | |||||
Sprint Nextel Corp. | |||||||
8.375%, due 08/15/171 |
75,000 | 83,156 | |||||
Virgin Media Finance PLC | |||||||
9.125%, due 08/15/16 |
50,000 | 53,375 | |||||
41 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Face | |||||||
Security description | amount | Value | |||||
Corporate bonds(concluded) | |||||||
Telephone-integrated(concluded) | |||||||
Virgin Media Secured Finance PLC | |||||||
6.500%, due 01/15/18 |
$50,000 | $54,750 | |||||
385,519 | |||||||
Textile/apparel0.01% | |||||||
Quiksilver, Inc. | |||||||
6.875%, due 04/15/15 |
25,000 | 24,813 | |||||
Tobacco0.03% | |||||||
Altria Group, Inc. | |||||||
9.950%, due 11/10/38 |
60,000 | 83,418 | |||||
Transportation services0.09% | |||||||
ERAC USA Finance Co. | |||||||
7.000%, due 10/15/372 |
115,000 | 125,590 | |||||
Marquette Transportation Co./Marquette Transportation Finance Corp. | |||||||
10.875%, due 01/15/172 |
50,000 | 53,000 | |||||
Navios Maritime Acquisition Corp. | |||||||
8.625%, due 11/01/172 |
75,000 | 78,188 | |||||
Navios Maritime Holdings, Inc./Navios Maritime Finance US, Inc. | |||||||
8.875%, due 11/01/17 |
30,000 | 32,400 | |||||
289,178 | |||||||
Utilities-other0.03% | |||||||
NRG Energy, Inc. | |||||||
7.375%, due 02/01/16 |
80,000 | 82,800 | |||||
Total corporate bonds (cost$17,203,429) | 18,423,493 | ||||||
Repurchase agreement4.80% | |||||||
Repurchase agreement dated 02/28/11 with | |||||||
State Street Bank & Trust Co., 0.010% |
|||||||
due 03/01/11, collateralized by $15,333,091 |
|||||||
US Treasury Bonds, 4.500% due 08/15/39; |
|||||||
(value$15,352,258); proceeds: $15,051,004 |
|||||||
(cost$15,051,000) |
15,051,000 | 15,051,000 | |||||
42 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
Number of | |||||||
Security description | shares | Value | |||||
Investment of cash collateral from securities loaned1.09% | |||||||
Money market fund1.09% | |||||||
UBS Private Money Market Fund LLC7 | |||||||
(cost$3,424,900) |
3,424,900 | $3,424,900 | |||||
Total investments (cost$283,200,508)102.90% | 322,715,350 | ||||||
Liabilities in excess of other assets(2.90)% | (9,087,472 | ) | |||||
Net assets100.00% | $313,627,878 | ||||||
Aggregate cost for federal income tax purposes, which was substantially the same for book purposes, was $283,200,508; and net unrealized appreciation consisted of:
Gross unrealized appreciation | $42,918,764 | ||||||
Gross unrealized depreciation | (3,403,922 | ) | |||||
Net unrealized appreciation | $39,514,842 | ||||||
* | Non-income producing security. | |
** | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations. | |
1 | Security, or portion thereof, was on loan at February 28, 2011. | |
2 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 1.93% of net assets as of February 28, 2011, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. | |
3 | Cumulative preferred stock. The next call date is 12/31/11. | |
4 | Illiquid securities representing less than 0.01% of net assets as of February 28, 2011. | |
5 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security, which represents less than 0.01% of net assets as of February 28, 2011, is considered illiquid and restricted, and may be resold in transactions exempt from registration, normally to qualified buyers. (See table below for more information). | |
Acquisition | ||||||||||||||
Illiquid and | cost as a | Value as a | ||||||||||||
restricted | Acquisition | Acquisition | percentage | Value at | percentage | |||||||||
security | date | cost | of net assets | 02/28/11 | of net assets | |||||||||
CMP Susquehanna Radio Holdings Corp., Series A | 3/26/09 | $23 | 0.00% | $23 | 0.00% | |||||||||
6 | Cumulative preferred stock. | |
7 | Investment in affiliated investment company. See Notes to financial statements for additional information. | |
43 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
8 | Security is being fair valued by a valuation committee under the direction of the board of trustees. | |
9 | Variable or floating rate security. The interest rate shown is the current rate as of February 28, 2011 and changes periodically. | |
10 | Step bond. Coupon rate increases in increments to maturity. Rate disclosed is as of February 28, 2011. Maturity date indicated represents the instruments ultimate maturity date. | |
11 | Perpetual bond security. The maturity date reflects the next call date. | |
12 | Bond interest in default. | |
13 | PIKPayment-in-kind security. Income may be paid in cash or additional notes, at the discretion of the issuer. | |
14 | This security, which represents less than 0.01% of net assets as of February 28, 2011, is considered illiquid and restricted. (See table for more information). |
Acquisition | ||||||||||||||
Illiquid and | cost as a | Value as a | ||||||||||||
restricted | Acquisition | Acquisition | percentage | Value at | percentage | |||||||||
security | date | cost | of net assets | 02/28/11 | of net assets | |||||||||
CMP Susquehanna Corp., | ||||||||||||||
9.875%, 05/15/14 | 03/26/09 | $ | 9,195 | 0.00% | $ | 7,049 | 0.00% | |||||||
ADR | American Depositary Receipt | |
MTN | Medium Term Note | |
OEM | Original Equipment Manufacturer | |
TBA | (To Be Announced) 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. | |
Futures contracts | |||||||||||
Unrealized | |||||||||||
Number of | Expiration | Current | appreciation | ||||||||
contracts | Buy contracts | dates | Cost | value | (depreciation) | ||||||
110 | Russell 1000 Mini Index Futures | March 2011 | $7,951,199 | $8,092,700 | $141,501 | ||||||
111 | US Treasury Note 10 Year Futures | June 2011 | 13,158,881 | 13,214,203 | 55,322 | ||||||
$21,110,080 | $21,306,903 | $196,823 | |||||||||
Sale contracts | Proceeds | ||||||||||
76 | Russell 2000 Mini Index Futures | March 2011 | $6,067,745 | $6,254,040 | $(186,295 | ) | |||||
149 | S&P 500 E-Mini Index Futures | March 2011 | 9,147,408 | 9,879,445 | (732,037 | ) | |||||
15,215,153 | 16,133,485 | (918,332 | ) | ||||||||
$(721,509 | ) | ||||||||||
44 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
The following is a summary of the fair valuations according to the inputs used as of February 28, 2011 in valuing the Funds investments:
Unadjusted | |||||||||||
quoted prices in | Other | ||||||||||
active markets | significant | ||||||||||
for identical | observable | Unobservable | |||||||||
investments | inputs | inputs | |||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||
Common stocks | $229,171,828 | $ | $ | $229,171,828 | |||||||
Preferred stocks | | 4,788 | | 4,788 | |||||||
Investment company | | 12,634,906 | | 12,634,906 | |||||||
Warrants | | | 27 | 27 | |||||||
US government obligations | | 20,781,846 | | 20,781,846 | |||||||
Mortgage & agency debt securities | | 21,451,269 | | 21,451,269 | |||||||
Commercial mortgage-backed securities | | 1,771,293 | | 1,771,293 | |||||||
Corporate bonds | | 18,423,493 | | 18,423,493 | |||||||
Repurchase agreement | | 15,051,000 | | 15,051,000 | |||||||
Investment of cash collateral from securities loaned | | 3,424,900 | | 3,424,900 | |||||||
Futures contracts | (721,509 | ) | | | (721,509 | ) | |||||
Total | $228,450,319 | $93,543,495 | $27 | $321,993,841 | |||||||
45 |
UBS U.S. Allocation Fund
Portfolio of investmentsFebruary 28, 2011 (unaudited)
The following is a rollforward of the Funds investments that were valued using unobservable inputs (Level 3) for the six months ended February 28, 2011:
Preferred | Corporate | |||||||||||
stocks | Warrants | bond | Total | |||||||||
Beginning balance | $23 | $27 | $3,550 | $3,600 | ||||||||
Net purchases/(sales) | | | | | ||||||||
Accrued discounts/(premiums) | | | 69 | 69 | ||||||||
Total realized gain/(loss) | | | | | ||||||||
Net change in unrealized appreciation/depreciation | | | 3,430 | 3,430 | ||||||||
Net transfers in/(out) of Level 3 | (23 | ) | | (7,049 | ) | (7,072 | ) | |||||
Ending balance | $ | $27 | $ | $27 | ||||||||
The change in unrealized appreciation/depreciation relating to the Level 3 investments held at February 28, 2011 was $0.
Issuer breakdown by country or territory of origin | |||
Percentage of total investments | |||
United States | 93.7 | % | |
Ireland | 1.5 | ||
Canada | 1.2 | ||
Panama | 1.0 | ||
Switzerland | 1.0 | ||
United Kingdom | 0.7 | ||
Cayman Islands | 0.4 | ||
Netherlands Antilles | 0.2 | ||
France | 0.1 | ||
Netherlands | 0.1 | ||
Luxembourg | 0.1 | ||
Total | 100.0 | % | |
See accompanying notes to financial statements | ||
46 |
UBS U.S. Allocation Fund
Statement of assets and liabilitiesFebruary 28, 2011 (unaudited)
Assets: | |||
Investments in unaffiliated securities, at value (cost$267,902,127)1 | $306,655,544 | ||
Investments in affiliated securities, at value (cost$15,298,381) | 16,059,806 | ||
Total investments in securities, at value (cost$283,200,508) | 322,715,350 | ||
Cash2 | 2,078,594 | ||
Receivable for investments sold | 3,164,775 | ||
Receivable for shares of beneficial interest sold | 17,157 | ||
Receivable for dividends and interest | 894,245 | ||
Receivable for foreign tax reclaims | 1,962 | ||
Other assets | 26,002 | ||
Total assets | 328,898,085 | ||
Liabilities: | |||
Payable for investments purchased | 9,964,391 | ||
Payable for cash collateral from securities loaned | 3,424,900 | ||
Payable for shares of beneficial interest repurchased | 755,101 | ||
Payable for variation margin | 720,466 | ||
Payable to affiliates | 225,183 | ||
Accrued expenses and other liabilities | 180,166 | ||
Total liabilities | 15,270,207 | ||
Net assets: | |||
Beneficial interest$0.001 par value per share (unlimited amount authorized) | 464,973,060 | ||
Accumulated undistributed net investment income | 1,136,918 | ||
Accumulated net realized loss | (191,275,433 | ) | |
Net unrealized appreciation | 38,793,333 | ||
Net assets | $313,627,878 | ||
1 | Includes $3,369,684 of investments in securities on loan, at value. | |
2 | Includes restricted cash of $2,075,864 delivered to broker as initial margin for futures contracts. | |
See accompanying notes to financial statements | ||
47 |
UBS U.S. Allocation Fund
Statement of assets and liabilitiesFebruary 28, 2011 (unaudited)
Class A: | |||
Net assets | $204,578,739 | ||
Shares outstanding | 7,153,051 | ||
Net asset value per share | $28.60 | ||
Maximum offering price per share (net asset value plus maximum sales charge of 5.50%) | $30.26 | ||
Class B: | |||
Net assets | $1,930,882 | ||
Shares outstanding | 67,118 | ||
Net asset value and offering price per share | $28.77 | ||
Class C: | |||
Net assets | $85,216,298 | ||
Shares outstanding | 3,024,582 | ||
Net asset value and offering price per share | $28.17 | ||
Class Y: | |||
Net assets | $21,901,959 | ||
Shares outstanding | 756,345 | ||
Net asset value and offering price per share | $28.96 | ||
See accompanying notes to financial statements | ||
48 |
UBS U.S. Allocation Fund
Statement of operations
For the six | |||
months ended | |||
February 28, 2011 | |||
(unaudited) | |||
Investment income: | |||
Dividends (net of foreign witholding taxes of $44) | $1,777,174 | ||
Interest (net of foreign witholding taxes of $68) | 1,242,763 | ||
Affiliated securities lending income | 5,479 | ||
3,025,416 | |||
Expenses: | |||
Investment advisory and administration fees | 766,679 | ||
Service feesClass A | 252,410 | ||
Service and distribution feesClass B | 9,884 | ||
Service and distribution feesClass C | 421,420 | ||
Transfer agency and related service feesClass A | 125,364 | ||
Transfer agency and related service feesClass B | 2,199 | ||
Transfer agency and related service feesClass C | 55,496 | ||
Transfer agency and related service feesClass Y | 10,356 | ||
Professional fees | 72,890 | ||
Reports and notices to shareholders | 62,309 | ||
Custody and accounting fees | 55,338 | ||
State registration fees | 26,521 | ||
Trustees fees | 7,219 | ||
Insurance fees | 4,190 | ||
Other expenses | 15,855 | ||
Net expenses | 1,888,130 | ||
Net investment income | 1,137,286 | ||
Net realized and unrealized gains from investment activities: | |||
Net realized gains from: | |||
Investments in unaffiliated issuers | 14,427,515 | ||
Investments in affiliated issuers | 551,642 | ||
Futures | 513,873 | ||
Net realized gain | 15,493,030 | ||
Net change in unrealized appreciation/depreciation of: | |||
Investments in unaffiliated issuers | 41,471,177 | ||
Investments in affiliated issuers | (482,832 | ) | |
Futures | (575,809 | ) | |
Net change in unrealized appreciation/depreciation | 40,412,536 | ||
Net realized and unrealized gain from investment activities | 55,905,566 | ||
Net increase in net assets resulting from operations | $57,042,852 | ||
See accompanying notes to financial statements | ||
49 |
UBS U.S. Allocation Fund
Statement of changes in net assets
For the six | ||||||
months ended | For the | |||||
February 28, 2011 | year ended | |||||
(unaudited) | August 31, 2010 | |||||
From operations: | ||||||
Net investment income | $1,137,286 | $3,833,989 | ||||
Net realized gain | 15,493,030 | 13,747,432 | ||||
Net change in unrealized appreciation/depreciation | 40,412,536 | 10,762,626 | ||||
Net increase in net assets resulting from operations | 57,042,852 | 28,344,047 | ||||
Dividends to shareholders from: | ||||||
Net investment incomeClass A | (3,010,818 | ) | (5,329,904 | ) | ||
Net investment incomeClass B | (6,506 | ) | (33,642 | ) | ||
Net investment incomeClass C | (589,766 | ) | (1,617,375 | ) | ||
Net investment incomeClass Y | (491,920 | ) | (850,422 | ) | ||
Total dividends to shareholders | (4,099,010 | ) | (7,831,343 | ) | ||
From beneficial interest transactions: | ||||||
Net proceeds from shares sold | 1,664,671 | 3,471,436 | ||||
Cost of shares repurchased | (41,075,000 | ) | (89,121,567 | ) | ||
Proceeds from dividends reinvested | 3,634,299 | 7,189,773 | ||||
Net decrease in net assets from beneficial interest transactions | (35,776,030 | ) | (78,460,358 | ) | ||
Redemption fees | 2,663 | 1,632 | ||||
Net increase (decrease) in net assets | 17,170,475 | (57,946,022 | ) | |||
Net assets: | ||||||
Beginning of period | 296,457,403 | 354,403,425 | ||||
End of period | $313,627,878 | $296,457,403 | ||||
Accumulated undistributed net investment income | $1,136,918 | $4,098,642 | ||||
See accompanying notes to financial statements | ||
50 |
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51 |
UBS U.S. Allocation Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
Six months ended | |||
February 28, 2011 | |||
(unaudited) | |||
Net asset value, beginning of period | $24.16 | ||
Net investment income1 | 0.12 | ||
Net realized and unrealized gains (losses) | 4.73 | ||
Net increase (decrease) from operations | 4.85 | ||
Dividends from net investment income | (0.41 | ) | |
Net asset value, end of period | $28.60 | ||
Total investment return2 | 20.15 | % | |
Ratios to average net assets: | |||
Expenses before fee waivers by investment advisor and adminstrator | 1.02 | %3 | |
Expenses after fee waivers by investment advisor and administrator | 1.02 | %3 | |
Net investment income | 0.91 | %3 | |
Supplemental data: | |||
Net assets, end of period (000s) | $204,579 | ||
Portfolio turnover | 67 | % | |
1 | Calculated using the average shares method. | |
2 | 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 or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
3 | Annualized. | |
See accompanying notes to financial statements | ||
52 |
Class A | |||||||||||||
Years ended August 31, | |||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||
$22.96 | $28.83 | $32.53 | $29.94 | $28.60 | |||||||||
0.32 | 0.46 | 0.70 | 0.68 | 0.56 | |||||||||
1.47 | (5.65 | ) | (3.57 | ) | 2.60 | 1.38 | |||||||
1.79 | (5.19 | ) | (2.87 | ) | 3.28 | 1.94 | |||||||
(0.59 | ) | (0.68 | ) | (0.83 | ) | (0.69 | ) | (0.60 | ) | ||||
$24.16 | $22.96 | $28.83 | $32.53 | $29.94 | |||||||||
7.75 | % | (17.49 | )% | (9.02 | )% | 11.04 | % | 6.84 | % | ||||
1.03 | % | 1.05 | % | 0.95 | % | 0.92 | % | 0.94 | % | ||||
1.03 | % | 1.05 | % | 0.93 | % | 0.90 | % | 0.91 | % | ||||
1.30 | % | 2.26 | % | 2.28 | % | 2.12 | % | 1.91 | % | ||||
$190,007 | $221,983 | $344,910 | $452,439 | $472,213 | |||||||||
138 | % | 111 | % | 98 | % | 85 | % | 82 | % | ||||
53 |
UBS U.S. Allocation Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
Six months ended | |||
February 28, 2011 | |||
(unaudited) | |||
Net asset value, beginning of period | $24.13 | ||
Net investment income1 | 0.01 | ||
Net realized and unrealized gains (losses) | 4.72 | ||
Net increase (decrease) from operations | 4.73 | ||
Dividends from net investment income | (0.09 | ) | |
Net asset value, end of period | $28.77 | ||
Total investment return2 | 19.63 | % | |
Ratios to average net assets: | |||
Expenses before fee waivers by investment advisor and administrator | 1.88 | %3 | |
Expenses after fee waivers by and recoupments to investment advisor and administrator | 1.88 | %3,4 | |
Net investment income | 0.05 | %3 | |
Supplemental data: | |||
Net assets, end of period (000s) | $1,931 | ||
Portfolio turnover | 67 | % | |
1 | Calculated using the average shares method. | |
2 | 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 or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
3 | Annualized. | |
4 | The investment advisor and administrator recouped expenses previously reimbursed by the investment advisor and administrator on behalf of the Fund, not to exceed the expense cap. |
See accompanying notes to financial statements | ||
54 |
Class B | |||||||||||||
Years ended August 31, | |||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||
$22.88 | $28.41 | $31.87 | $29.24 | $27.81 | |||||||||
0.10 | 0.26 | 0.41 | 0.39 | 0.30 | |||||||||
1.46 | (5.51 | ) | (3.56 | ) | 2.57 | 1.36 | |||||||
1.56 | (5.25 | ) | (3.15 | ) | 2.96 | 1.66 | |||||||
(0.31 | ) | (0.28 | ) | (0.31 | ) | (0.33 | ) | (0.23 | ) | ||||
$24.13 | $22.88 | $28.41 | $31.87 | $29.24 | |||||||||
6.80 | % | (18.27 | )% | (9.96 | )% | 10.16 | % | 5.99 | % | ||||
1.91 | % | 2.02 | % | 1.82 | % | 1.74 | % | 1.74 | % | ||||
1.90 | % | 2.02 | % | 1.80 | % | 1.72 | % | 1.71 | % | ||||
0.43 | % | 1.29 | % | 1.39 | % | 1.29 | % | 1.07 | % | ||||
$1,934 | $2,972 | $6,864 | $28,167 | $77,296 | |||||||||
138 | % | 111 | % | 98 | % | 85 | % | 82 | % | ||||
55 |
UBS U.S. Allocation Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
Six months ended | |||
February 28, 2011 | |||
(unaudited) | |||
Net asset value, beginning of period | $23.70 | ||
Net investment income1 | 0.02 | ||
Net realized and unrealized gains (losses) | 4.64 | ||
Net increase (decrease) from operations | 4.66 | ||
Dividends from net investment income | (0.19 | ) | |
Net asset value, end of period | $28.17 | ||
Total investment return2 | 19.73 | % | |
Ratios to average net assets: | |||
Expenses before fee waivers by investment advisor and administrator | 1.78 | %3 | |
Expenses after fee waivers by investment advisor and administrator | 1.78 | %3 | |
Net investment income | 0.15 | %3 | |
Supplemental data: | |||
Net assets, end of period (000s) | $85,216 | ||
Portfolio turnover | 67 | % | |
1 | Calculated using the average shares method. | |
2 | 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 or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
3 | Annualized. |
See accompanying notes to financial statements |
56 |
Class C | |||||||||||||
Years ended August 31, | |||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||
$22.55 | $28.19 | $31.80 | $29.27 | $27.95 | |||||||||
0.13 | 0.30 | 0.46 | 0.43 | 0.33 | |||||||||
1.43 | (5.50 | ) | (3.50 | ) | 2.55 | 1.35 | |||||||
1.56 | (5.20 | ) | (3.04 | ) | 2.98 | 1.68 | |||||||
(0.41 | ) | (0.44 | ) | (0.57 | ) | (0.45 | ) | (0.36 | ) | ||||
$23.70 | $22.55 | $28.19 | $31.80 | $29.27 | |||||||||
6.90 | % | (18.10 | )% | (9.70 | )% | 10.23 | % | 6.02 | % | ||||
1.78 | % | 1.80 | % | 1.70 | % | 1.67 | % | 1.68 | % | ||||
1.78 | % | 1.80 | % | 1.68 | % | 1.65 | % | 1.65 | % | ||||
0.55 | % | 1.51 | % | 1.53 | % | 1.38 | % | 1.16 | % | ||||
$79,561 | $94,818 | $147,945 | $205,104 | $226,219 | |||||||||
138 | % | 111 | % | 98 | % | 85 | % | 82 | % | ||||
57 |
UBS U.S. Allocation Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
Six months ended | |||
February 28, 2011 | |||
(unaudited) | |||
Net asset value, beginning of period | $24.51 | ||
Net investment income1 | 0.17 | ||
Net realized and unrealized gains (losses) | 4.78 | ||
Net increase (decrease) from operations | 4.95 | ||
Dividends from net investment income | (0.50 | ) | |
Net asset value, end of period | $28.96 | ||
Total investment return2 | 20.32 | % | |
Ratios to average net assets: | |||
Expenses before fee waivers by investment advisor and administrator | 0.73 | %3 | |
Expenses after fee waivers by investment advisor and administrator | 0.73 | %3 | |
Net investment income | 1.21 | %3 | |
Supplemental data: | |||
Net assets, end of period (000s) | $21,902 | ||
Portfolio turnover | 67 | % | |
1 | Calculated using the average shares method. | |
2 | 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 or redemption fees; results would be lower if they were included. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. | |
3 | Annualized. |
See accompanying notes to financial statements |
58 |
Class Y | |||||||||||||
Years ended August 31, | |||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||
$23.29 | $29.27 | $33.03 | $30.39 | $29.02 | |||||||||
0.41 | 0.55 | 0.81 | 0.79 | 0.67 | |||||||||
1.49 | (5.75 | ) | (3.62 | ) | 2.66 | 1.40 | |||||||
1.90 | (5.20 | ) | (2.81 | ) | 3.45 | 2.07 | |||||||
(0.68 | ) | (0.78 | ) | (0.95 | ) | (0.81 | ) | (0.70 | ) | ||||
$24.51 | $23.29 | $29.27 | $33.03 | $30.39 | |||||||||
8.13 | % | (17.16 | )% | (8.69 | )% | 11.42 | % | 7.22 | % | ||||
0.70 | % | 0.65 | % | 0.61 | % | 0.57 | % | 0.57 | % | ||||
0.70 | % | 0.65 | % | 0.59 | % | 0.55 | % | 0.55 | % | ||||
1.63 | % | 2.65 | % | 2.62 | % | 2.48 | % | 2.27 | % | ||||
$24,955 | $34,630 | $46,994 | $59,330 | $116,888 | |||||||||
138 | % | 111 | % | 98 | % | 85 | % | 82 | % | ||||
59 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
Organization and significant accounting policies
UBS U.S. Allocation Fund (the Fund) is a series of UBS Investment
Trust (the Trust) and is registered with the Securities and Exchange
Commission (SEC) under the Investment Company Act of 1940, as amended,
as an open-end, diversified management investment company. The Trust was organized
on March 28, 1991, as a business trust under the laws of the Commonwealth of Massachusetts
and currently has one operating series.
Currently, the Fund offers Class A, Class B, Class C and Class Y shares. Each class represents interests in the same assets of the Fund, and the classes are identical except for differences in their sales charge structures, ongoing service and distribution charges and certain transfer agency and related services expenses. In addition, Class B shares and all corresponding reinvested dividend shares automatically convert to Class A shares within a certain number of years after issuance which varies depending upon the amount invested. All classes of shares have equal voting privileges except that Class A, Class B and Class C shares each have exclusive voting rights with respect to their respective service and/or distribution plans. Class Y shares have no service or distribution plan.
As of October 1, 2007, new or additional investments into Class B shares, including investments through an automatic investment plan, are not permitted. Existing shareholders of Class B shares may: (i) continue as Class B shareholders; (ii) continue to reinvest dividends and distributions into Class B shares; and (iii) exchange their Class B shares for Class B shares of other series of the UBS Family of Funds, as permitted by existing exchange privileges. For Class B shares outstanding on October 1, 2007 and Class B shares acquired upon reinvestment of dividends or distributions or through exchanges, all Class B share attributes, including the associated Rule 12b-1 service plan and distribution fees, contingent deferred sales charges and conversion features will continue.
In the normal course of business the Fund may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Funds maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) is the exclusive reference of authoritative US generally
60 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The Funds financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies:
Valuation of investmentsThe Fund calculates net asset values based on the current value for its portfolio securities. The Fund normally obtains values for its securities from independent pricing sources. Independent pricing sources may use last reported sale prices, official market closing 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 US and foreign stock exchanges normally are valued at the market close, last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. (UBS Global AM). 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 Trusts Board of Trustees (the Board). Various factors may be reviewed in order to make a good faith determination of a securitys fair value. These factors may 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-US 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. Futures contracts are generally valued at the settlement price established each day on the exchange on which they are traded. Swaps are marked to market daily based upon values from
61 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
third party vendors or quotations from market makers to the extent available and the change in value, if any, is recorded as an unrealized gain or loss on the Statement of assets and liabilities. In the event that market quotations are not readily available or deemed unreliable, swaps are valued at fair value as determined in good faith by or under the direction of the Board.
GAAP requires disclosure surrounding the various inputs that are used in determining the value of the Funds investments. These inputs are summarized into the three broad levels listed below:
Level 1Unadjusted quoted prices in active markets
for identical investments.
Level 2Other significant observable inputs, including
but not limited to, quoted prices for similar investments, interest rates, prepayment
speeds and credit risks.
Level 3Unobservable inputs inclusive of the Funds own
assumptions in determining the fair value of investments.
In accordance with the requirements of GAAP, a fair value hierarchy has been included near the end of the Funds Portfolio of investments.
In January 2010, FASB issued Accounting Standards Update (ASU) No. 2010-06 Improving Disclosures about Fair Value Measurements. ASU No. 2010-06 will require reporting entities to make new disclosures about amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, and information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. The new and revised disclosures have been implemented for annual and interim periods beginning after December 15, 2009 except for the disclosures surrounding purchases, sales, issuances and settlements on a gross basis in the reconciliation of Level 3 fair value measurements, which are effective for annual and interim periods beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of the remaining portion of ASU No. 2010-06 may have on the Funds financial statement disclosures.
The provisions of ASC Topic 815 Derivatives and Hedging (ASC Topic 815) require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative
62 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
instruments and disclosures about credit-risk related contingent features in derivative agreements. Since investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of operations, they do not qualify for hedge accounting under ASC Topic 815. Accordingly, even though a Funds investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of disclosure under ASC Topic 815. ASC Topic 815 requires (1) objectives for using derivative instruments be disclosed in terms of underlying risk and accounting designation, (2) the fair values of derivative instruments and their gains and losses be disclosed in a tabular format, and (3) information be disclosed about credit-risk contingent features of derivatives contracts. Details of this disclosure can be found below as well as in the Portfolio of investments. The volume of derivatives that is presented in the Portfolio of investments is consistent with the derivative activity during the period ended February 28, 2011. The Advisor is not aware of any credit-risk contingent features on derivative contracts held by the Fund.
At February 28, 2011, the Fund had the following derivatives categorized by underlying risk:
Asset derivatives1 | |||||||||
Interest | Equity | ||||||||
rate risk | risk | Total | |||||||
Futures contracts | $55,322 | $141,501 | $196,823 | ||||||
1 | Statement of assets and liabilities location: futures contracts are reported in the table above using the cumulative appreciation as detailed in the futures contract table at the end of the Portfolio of investments, but only the variation margin to be received, if any, is reported within the Statement of assets and liabilities. |
Liability derivatives2 | |||||||||
Interest | Equity | ||||||||
rate risk | risk | Total | |||||||
Futures contracts | $ | $(918,332) | $(918,332) | ||||||
2 | Statement of assets and liabilities location: futures contracts are reported in the table above using the cumulative depreciation as detailed in the futures contract table at the end of the Portfolio of investments, but only the variation margin to be paid, if any, is reported within the Statement of assets and liabilities. |
63 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
Transactions in derivative instruments during the six months ended February 28, 2011, were as follows:
Interest | Equity | |||||||||
rate risk | risk | Total | ||||||||
Realized gain (loss)2 | ||||||||||
Futures contracts | $(5,482) | $519,355 | $513,873 | |||||||
Net change in unrealized appreciation/depreciation3 | ||||||||||
Futures contracts | $70,802 | $(646,611) | $(575,809) | |||||||
2 | The net realized gains (losses) from futures are disclosed in the Statement of operations. | |
3 | The net change in unrealized appreciation/depreciation on futures are disclosed in the Statement of operations. |
Repurchase agreementsThe Fund may purchase securities or other obligations from a bank or securities dealer (or its affiliate), subject to the sellers agreement to repurchase them at an agreed upon date (or upon demand) and price. The Fund maintains custody of the underlying obligations prior to their repurchase, either through its regular custodian or through a special tri-party custodian or sub-custodian that maintains a separate account for both the Fund and its counterparty. The underlying collateral is valued daily to ensure that the value, including accrued interest, is at least equal to the repurchase price. In the event of default of the obligation to repurchase, the Fund generally has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements involving obligations other than US government securities (such as commercial paper, corporate bonds, equities 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 sellers guarantor, if any) becomes insolvent, the Fund 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 Fund may participate in joint repurchase agreement transactions with other funds managed, advised or sub-advised by UBS Global AM.
Under certain circumstances, the Fund may engage in a repurchase agreement transaction with a yield of zero in order to invest cash amounts remaining in its portfolio at the end of the day in order to avoid having the Fund assessed a fee for uninvested cash held in a business account at a bank.
64 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
Restricted securitiesThe Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of the Funds Portfolio of investments.
Investment transactions, investment income and expensesInvestment transactions are recorded on the trade date. Realized gains and losses from investment transactions are calculated using the identified cost method. Dividend income is recorded net of withholding taxes on the ex-dividend date (ex-date). Interest income is recorded on an accrual basis. Discounts are accreted and premiums are amortized as adjustments to interest income and the identified cost of investments.
Income, expenses (excluding class-specific expenses) and realized/unrealized gains/losses are allocated proportionately to each class of shares based upon the relative net asset value of outstanding shares (or the value of dividend eligible shares, as appropriate) of each class at the beginning of the day (after adjusting for current capital share activity of the respective classes). Class-specific expenses are charged directly to the applicable class of shares.
Investing in non-US securitiesInvesting in non-US securities may involve more risks than investing in US securities. Investments in non-US securities may involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which US and non-US issuers are subject. These risks may include expropriation, confiscatory taxation, withholding taxes on interest and/or dividends, limitations on the use of or transfer of Fund assets and political or social instability or diplomatic developments.
Securities of non-US issuers may not be registered with the SEC, and the issuers thereof may not be subject to its reporting requirements.
The Fund may invest in non-US securities by purchasing American Depositary Receipts (ADRs). ADRs are receipts typically issued by a US bank or trust company evidencing ownership of the underlying securities.
65 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
ADRs are publicly traded on exchanges or over-the-counter in the United States and are issued through sponsored or unsponsored arrangements. Under an unsponsored arrangement, the depositarys transaction fees are paid directly by the ADR holders.
Investment income and realized gains on certain non-US securities in which the Fund may invest may be subject to non-US withholding or other taxes that could reduce the return on the securities. Tax conventions between the United States and certain non-US countries, however, may reduce or eliminate the amount of non-US taxes to which the Fund would be subject.
Securities traded on to-be-announced
basisThe Fund may from time to time purchase securities on a to-be-announced
(TBA) basis. In a TBA transaction, the Fund 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 Fund, normally 15 to 45 days later. Beginning on the date the
Fund enters into a TBA transaction, cash, US government securities or other liquid
securities are segregated in an amount equal 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.
Futures contractsThe Fund may use futures contracts as part of its investment strategy, for hedging purposes to adjust exposure to US and foreign markets in connection with a reallocation of the Funds assets or to manage the average duration of the Fund. In addition, the Fund may purchase or sell futures contracts or purchase options thereon to increase or reduce its exposure to an asset class without purchasing or selling the underlying securities, either as a hedge or to enhance return or realize gains. Using futures contracts involves various market risks including interest rate and equity risk. 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 or the loss of the benefit of the transaction should the counterparty default.
Upon entering into a futures contract, the Fund 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
66 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
payments, known as variation margin, generally are made or received by the Fund each day, depending on the fluctuations in the value of the underlying futures contracts, except that in the case of certain futures contracts payments may 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 futures contract is closed, at which time the net gain or loss is reclassified to realized gain or loss on futures.
Dividends and distributionsDividends 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 GAAP. 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 US companies and US government securities.
The ability of the issuers of the debt securities held by the Fund to meet their obligations may be affected by economic developments, including those particular to a specific industry, country or region.
Investment advisor and administrator
fees and other transactions with affiliates
The Board has approved an Investment
Advisory and Administration Contract (Advisory Contract), under which
UBS Global AM serves as investment advisor and administrator of the Fund. In accordance
with the Advisory Contract, the Fund is to pay UBS Global AM an investment advisory
and administration fee, which is to be accrued daily and paid monthly, at an annual
rate of 0.50% of the Funds average daily net assets up to $250 million and
0.45% thereafter.
67 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
UBS Global AM has agreed to permanently reduce its advisory and administration fee based on the Funds average daily net assets so that it is assessed as follows: $0 to $250 million 0.50%; in excess of $250 million up to $500 million 0.45%; in excess of $500 million up to $2 billion 0.40%; and over $2 billion 0.35%. Accordingly, for the six months ended February 28, 2011, UBS Global AM did not waive any investment advisory and administration fees. At February 28, 2011, the Fund owed UBS Global AM $118,489 for investment advisory and administration fees.
UBS Global AM is contractually undertaken to waive fees/reimburse a portion of the Funds expenses, when necessary, to maintain the total annual operating expenses (excluding dividend expense, borrowing costs, and interest expense relating to short sales, and interest, taxes, brokerage commissions and extraordinary expenses, if any) of Class A, Class B, Class C and Class Y shares at a level not to exceed 1.15%, 1.90%, 1.90% and 0.90%, respectively through December 31, 2011. The Fund will repay UBS Global AM for any previously waived fees/ reimbursed expenses during the three-year period following August 31, 2010, to the extent that operating expenses are otherwise below the expense caps in effect at the time the fees or expenses were waived/reimbursed. For the six months ended February 28, 2011, UBS U.S. Allocation Class B had a recoupment of $144. The recoupment is included in the investment advisory and administration fees on the statement of operations. At February 28, 2011, the Fund had no fee waivers/expense reimbursements subject to repayment.
For the six months ended February 28, 2011, the Fund paid $4,605 in brokerage commissions to UBS Securities LLC., an indirect wholly owned subsidiary of UBS AG, for transactions executed on behalf of the Fund.
The Fund may invest in certain affiliated investment companies also advised or managed by the Advisor. Investments in affiliated investment companies for the six months ended February 28, 2011 were as follows:
Purchases | Sales | |||||||||||||||||
during the | during the | Change | ||||||||||||||||
Affiliated | six months | six months | Net | in net | ||||||||||||||
investment | Value at | ended | ended | realized | unrealized | Value at | ||||||||||||
company | 08/31/10 | 02/28/11 | 02/28/11 | gain | depreciation | 02/28/11 | ||||||||||||
UBS Credit Bond Relationship Fund | $23,616,096 | $ | $11,050,000 | $551,642 | $(482,832) | $12,634,906 | ||||||||||||
68 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
Under normal conditions, the Fund invests cash collateral from securities lending activities into an affiliated private money market fund, UBS Private Money Market Fund LLC (Private Money Market), which operates in compliance with most of the substantive provisions of Rule 2a-7 of the 1940 Act. Private Money Market is managed by the Advisor and is offered as a cash management option only to mutual funds and certain other accounts managed by the Advisor. The Advisor acts as managing member and receives a management fee from Private Money Market payable monthly in arrears at the annual rate of 0.10% of Private Money Markets average daily members equity, minus the aggregate operating expenses of, and incurred by, Private Money Market during each such related month, not including investment expenses (including brokerage commissions, taxes, interest charges and other costs with respect to transactions in securities) and extraordinary expenses including litigation expenses, if any. The Advisor may, in its sole discretion, waive all or any portion of the management fee to which it may be entitled from time to time in order to maintain operating expenses at a certain level. Distributions received from Private Money Market, net of fee rebates paid to borrowers, are reflected as affiliated securities lending income in the Statement of operations.
Amounts relating to the investment for the six months ended February 28, 2011 were as follows:
Purchases | Sales | ||||||||||||||
during the | during the | ||||||||||||||
six months | six months | ||||||||||||||
Value at | ended | ended | Value at | Net income | |||||||||||
08/31/10 | 02/28/11 | 02/28/11 | 02/28/11 | earned | |||||||||||
UBS Private Money Market Fund LLC | $1,694,234 | $22,130,480 | $20,399,814 | $3,424,900 | 5,479 | ||||||||||
Additional information regarding compensation
to affiliate of a board member
Professor Meyer Feldberg serves as a senior
advisor to Morgan Stanley, a financial services firm with which the Fund may conduct
transactions, resulting in him being an interested trustee of the Fund. The Fund
has been informed that Professor Feldbergs role at Morgan Stanley does not
involve matters directly affecting any UBS funds. Fund transactions are executed
through Morgan Stanley based on that firms ability to provide best execution
of the transactions.
69 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
During the six months ended February 28, 2011, the Fund paid brokerage commissions to Morgan Stanley in the amount of $9,268. During the six months ended February 28, 2011, the Fund purchased and sold certain securities (e.g., fixed income securities) in principal trades with Morgan Stanley, having an aggregate value of $46,110,714. 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 the Funds investment manager, it is believed that under normal circumstances it represents a small portion of the total value of the transactions.
Service and distribution plans
UBS Global Asset Management (US) Inc. (UBS Global AMUS) is the
principal underwriter of the Funds shares. Under separate plans of service
and/or distribution pertaining to Class A, Class B and Class C shares, the Fund
pays UBS Global AMUS monthly service fees at an annual rate of 0.25% of the
average daily net assets of Class A, Class B and Class C shares and monthly distribution
fees at the annual rate of 0.75% of the average daily net assets of Class B and
Class C shares. At February 28, 2011, the Fund owed UBS Global AMUS $106,694
for service and distribution fees.
UBS Global AMUS also receives the proceeds of the initial sales charges paid by shareholders upon the purchase of Class A shares and the contingent deferred sales charges paid by shareholders upon certain redemptions of Class A, Class B and Class C shares. UBS Global AMUS has informed the Fund that for the six months ended February 28, 2011, it earned $6,114, $433, and $73 in initial sales and deferred sales charges on Class A, Class B and Class C shares, respectively.
Transfer agency related services
UBS Financial Services Inc. provides certain services to the Fund pursuant to
a delegation of authority from BNY Mellon Investment Servicing (US) Inc. (BNY
Mellon), the Funds transfer agent, and is compensated for these services
by BNY Mellon, not the Fund.
For the six months ended February 28, 2011, UBS Financial Services, Inc. received from BNY Mellon, not the Fund, $81,827 of the total delegated services fees.
70 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
Securities lending
The Fund may
lend securities up to 331/3% of its total assets to qualified
broker-dealers or institutional investors. The loans are secured at all times by
cash, US 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 Fund will
regain ownership of loaned securities to exercise certain beneficial rights; however,
the Fund may bear the risk of delay in recovery of, or even loss of rights in, the
securities loaned should the borrower fail financially. The Fund receives compensation
for lending its securities from interest or dividends earned on the cash, US government
securities or irrevocable letters of credit held as collateral, net of fee rebates
paid to the borrower plus reasonable administrative and custody fees. State Street
Bank and Trust Company serves as the Funds lending agent.
Bank line of credit
The Fund 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 the Fund at the request of shareholders and other temporary or emergency purposes.
Under the Committed Credit Facility arrangement, the Fund has agreed to pay a commitment
fee, pro rata, based on the relative asset size of the funds in the Committed Credit
Facility. The Fund borrows at prevailing rates in effect at the time of the borrowings.
The Fund did not borrow under the Committed Credit Facility during the six months
ended February 28, 2011.
Purchases and sales of securities
For the six months ended February 28, 2011, aggregate purchases and sales of portfolio
securities, excluding short-term securities and US Government securities, were $80,482,014
and $125,687,177, respectively.
For the six months ended February 28, 2011, aggregate purchases and sales of US Government securities, excluding short-term securities, were $122,752,278 and $114,751,593, respectively.
71 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
Shares of beneficial interest
There is an unlimited amount of $0.001 par value shares of beneficial interest authorized.
Transactions in shares of beneficial interest were as follows:
Class A | Class B | |||||||||||||
For the six months ended February 28, 2011: | Shares | Amount | Shares | Amount | ||||||||||
Shares sold | 48,282 | $1,322,146 | 106 | $2,946 | ||||||||||
Shares repurchased | (870,651 | ) | (23,647,730 | ) | (1,756 | ) | (48,044 | ) | ||||||
Shares converted from Class B to Class A | 11,617 | 313,751 | (11,614 | ) | (313,751 | ) | ||||||||
Dividends reinvested | 99,056 | 2,700,257 | 209 | 5,732 | ||||||||||
Net decrease | (711,696 | ) | $(19,311,576 | ) | (13,055 | ) | $(353,117 | ) | ||||||
For the year ended August 31, 2010: | ||||||||||||||
Shares sold | 89,123 | $2,190,718 | 798 | $19,303 | ||||||||||
Shares repurchased | (2,126,709 | ) | (52,691,886 | ) | (14,902 | ) | (367,998 | ) | ||||||
Shares converted from Class B to Class A | 36,914 | 901,474 | (36,926 | ) | (901,474 | ) | ||||||||
Dividends reinvested | 198,277 | 4,847,877 | 1,282 | 31,512 | ||||||||||
Net decrease | (1,802,395 | ) | $(44,751,817 | ) | (49,748 | ) | $(1,218,657 | ) | ||||||
Class C | Class Y | |||||||||||||
For the six months ended February 28, 2011: | Shares | Amount | Shares | Amount | ||||||||||
Shares sold | 6,853 | $184,914 | 5,534 | $154,665 | ||||||||||
Shares repurchased | (358,913 | ) | (9,571,959 | ) | (281,751 | ) | (7,807,267 | ) | ||||||
Dividends reinvested | 19,947 | 536,374 | 14,211 | 391,936 | ||||||||||
Net decrease | (332,113 | ) | $(8,850,671 | ) | (262,006 | ) | $(7,260,666 | ) | ||||||
For the year ended August 31, 2010: | ||||||||||||||
Shares sold | 33,846 | $826,683 | 17,129 | $434,732 | ||||||||||
Shares repurchased | (944,259 | ) | (23,103,615 | ) | (518,928 | ) | (12,958,068 | ) | ||||||
Dividends reinvested | 61,468 | 1,482,603 | 33,446 | 827,781 | ||||||||||
Net decrease | (848,945 | ) | $(20,794,329 | ) | (468,353 | ) | $(11,695,555 | ) | ||||||
Redemption fees
Each class of
the Fund will impose a 1% redemption fee on shares sold or exchanged within 90 days
of their purchase date, subject to limited exemptions as noted in the prospectus;this
amount is paid to the Fund. Redemption fees, if
72 |
UBS U.S. Allocation Fund
Notes to financial statements (unaudited)
any, earned by the Fund are disclosed in the Statement of changes in net assets. For the six months ended February 28, 2011, redemption fees represent less than $0.005 per share.
Federal tax status
The Fund intends
to distribute substantially all of its income and to comply with the other requirements
of the Internal Revenue Code applicable to regulated investment companies. Accordingly,
no provision for federal income taxes is required. In addition, by distributing
during each calendar year substantially all of its net investment income, net realized
capital gains and certain other amounts, if any, the Fund intends not to be subject
to a federal excise tax.
The tax character of distributions paid during the fiscal year ended August 31, 2010 was as follows:
Distributions paid from: | 2010 | |
Ordinary Income | $7,831,343 | |
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 Funds fiscal year ending August 31, 2011.
At August 31, 2010, the Fund had a net capital loss carryforward of $198,585,157. This loss carryforward is available as a reduction, to the extent provided in the regulations, of any future net realized capital gains and will expire as follows: $76,727,703 in 2011, $39,436,357 in 2017 and $82,431,097 in 2018. To the extent that such losses are used to offset future net realized capital gains, it is probable these gains will not be distributed.
As of and during the period ended February 28, 2011, the Fund did not have any liabilities for any unrecognized tax positions. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as income tax expense in the Statement of operations. During the six months ended February 28, 2011, the Fund did not incur any interest or penalties.
Each of the tax years in the four year period ended August 31, 2010, remains subject to examination by the Internal Revenue Service and state taxing authorities.
73 |
UBS U.S. Allocation Fund
General information (unaudited)
Quarterly Form N-Q portfolio schedule
The Fund 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 Funds Forms N-Q are available on the SECs
Web site at http://www.sec.gov. The Funds Forms N-Q may be reviewed and copied
at the SECs Public Reference Room in Washington, D.C. Information on the operation
of the SECs Public Reference Room may be obtained by calling 1-800-SEC 0330.
Additionally, you may obtain copies of Forms N-Q from the Fund upon request by calling
1-800-647 1568.
Proxy voting policies, procedures and record
You may obtain a description of the Funds (1) proxy voting policies,
(2) proxy voting procedures and (3) information regarding how the Fund voted any
proxies related to portfolio securities during the most recent 12-month period ended
June 30 for which an SEC filing has been made, without charge, upon request by contacting
the Fund directly at 1-800-647 1568, online on the Funds Web site: www.ubs.com/ubsglobalam-proxy,
or on the EDGAR Database on the SECs Web site (http://www.sec.gov).
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Trustees | ||
Richard Q. Armstrong | Meyer Feldberg | |
Chairman | ||
Bernard H. Garil | ||
Alan S. Bernikow | ||
Heather R. Higgins | ||
Richard R. Burt | ||
Barry M. Mandinach | ||
Principal Officers | ||
Mark E. Carver | Thomas Disbrow | |
President | Vice President and Treasurer | |
Mark F. Kemper | ||
Vice President and Secretary |
Investment Advisor and Administrator
UBS Global Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
Principal Underwriter
UBS Global
Asset Management (US) Inc.
1285 Avenue of the Americas
New York, New York
10019-6028
The financial information included herein is taken from the records of the Fund 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 Fund unless accompanied or preceded by an effective prospectus.
© | 2011 UBS Global Asset Management (Americas) Inc. |
All rights reserved. |
©2011 UBS Global Asset Management (Americas)
Inc.
UBS Global Asset Management (Americas) Inc. is a
subsidiary of UBS AG.
All rights reserved.
Feb. 2011
www.ubs.com/globalam-us
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. Investments.
(a) Included as part of the report to shareholders
filed under Item 1 of this form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to the registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
The registrants 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, UBS Building, One North Wacker Drive, Chicago, IL 60606, Attn: Mark Kemper, Secretary, and indicate on the envelope Nominating and Corporate Governance Committee. The shareholders letter should state the nominees name and should include the nominees 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 registrants principal executive officer and principal financial officer have concluded that the
registrants 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. |
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(b) | The registrants principal executive officer and principal financial officer are aware of no
changes in the registrants 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 registrants
last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting. |
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Item 12. Exhibits. | ||
(a) | (1) Code of Ethics Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report. |
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(a) | (2) Certifications of principal executive officer and principal financial officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit EX-99.CERT. |
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(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 are attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
UBS Investment Trust
By: | /s/ Mark E. Carver | |
Mark E. Carver | ||
President | ||
Date: | May 9, 2011 |
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/ Mark E. Carver | |
Mark E. Carver | ||
President | ||
Date: | May 9, 2011 |
By: | /s/ Thomas Disbrow | |
Thomas Disbrow | ||
Vice President and Treasurer | ||
Date: | May 9, 2011 |
Exhibit EX-99.CERT
Certifications
I, Mark E. Carver, President of UBS Investment Trust, certify that:
1. | I have reviewed this report on Form N-CSR of UBS Investment Trust; |
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2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
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3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
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4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
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(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
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(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
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5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
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(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
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(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
By: | /s/ Mark E. Carver | |
Mark E. Carver | ||
President | ||
Date: | May 9, 2011 | |
I, Thomas Disbrow, Vice President and Treasurer of UBS Investment Trust, certify that:
1. | I have reviewed this report on Form N-CSR of UBS Investment Trust; |
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2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
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3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
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4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
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(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
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5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
||
By: | /s/ Thomas Disbrow | |
Thomas Disbrow | ||
Vice President and Treasurer | ||
Date: | May 9, 2011 |
Exhibit EX-99.906CERT
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)
In connection with the attached report of UBS Investment Trust (the Registrant) on Form N-CSR (the Report), each of the undersigned officers of the Registrant does hereby certify that, to the best of such officers knowledge:
1) | the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; |
|
2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant as of, and for, the periods presented in the Report. |
Dated: | May 9, 2011 | |
By: | /s/ Mark E. Carver | |
Mark E. Carver | ||
President | ||
Dated: | May 9, 2011 | |
By: | /s/ Thomas Disbrow | |
Thomas Disbrow | ||
Vice President and Treasurer |
This certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.
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