-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M7RGvaoFxQjoDnV67mxXK2hMXc1Dlvv6uGyEyXi8Qrvf5fDujLoJw/8oqIqIZkaT WFIKlLYGH0P6YL4ranB+eQ== 0000950136-02-001714.txt : 20020610 0000950136-02-001714.hdr.sgml : 20020610 20020607094514 ACCESSION NUMBER: 0000950136-02-001714 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020331 FILED AS OF DATE: 20020607 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PAINEWEBBER PACE SELECT ADVISORS TRUST CENTRAL INDEX KEY: 0000930007 STATE OF INCORPORATION: DE FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08764 FILM NUMBER: 02672947 BUSINESS ADDRESS: STREET 1: C/O BRINSON ADVISORS, INC. STREET 2: 51 WEST 52ND ST CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127133269 MAIL ADDRESS: STREET 1: C/O BRINSON ADVISORS, INC. STREET 2: 51 WEST 52ND ST CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: PAINEWEBBER CONSULTING FUND PRODUCT DATE OF NAME CHANGE: 19940914 FORMER COMPANY: FORMER CONFORMED NAME: MANAGED ACCOUNTS SERVICES PORTFOLIO TRUST DATE OF NAME CHANGE: 19941212 N-30D 1 file001.txt SEMI-ANNUAL REPORT [GRAPHIC OMITTED] UBS Global Asset Management Enhanced S&P 500 Fund Enhanced Nasdaq-100 Fund Semiannual Report March 31, 2002 UBS Enhanced Index Funds UBS Enhanced S&P 500 Fund UBS ENHANCES NASDAQ-100 FUND INVESTMENT GOAL: Higher total return over the long term than the respective Index PORTFOLIO MANAGER: DSI Team DSI International Management, Inc. COMMENCEMENT: April 26, 2000 (Classes A, B, C and Y) DIVIDEND PAYMENTS: Annually May 15, 2002 DEAR SHAREHOLDER, We present you with the semiannual report Enhanced Nasdaq-100 for the UBS Enhanced S&P 500 Fund and Fund the UBS Enhanced Nasdaq-100 Fund for the six months ended March 31, 2002. A NEW GLOBAL BRAND Effective April 8, 2002, Brinson Advisors, Inc. changed its name to UBS Global Asset Management (US) Inc., a member of the UBS Global Asset Management division of UBS AG, one of the largest financial services firms in the world. This strategic branding move reflects the global integration and scope of the organization's investment approach and offerings. The UBS Global Asset Management organization strives to deliver superior investment performance to clients through the management and allocation of their investments across and within all major asset classes. Our strength lies in our globally integrated investment platform. With investment professionals throughout the world, the UBS Global Asset Management organization provides clients with uncommon research, asset allocation and risk management conducted on a fully global basis. We seek to maximize the benefits to clients, through understanding and acting upon their risk and return objectives. This covenant with our clients is the basis for the success of our business. Effective on the same date, the funds comprising the Brinson Mutual Fund Family will be known as UBS Funds. The Funds' investment objectives and investment processes remain the same. - -------------------------------------------------------------------------------- UBS Global Asset Management 1 UBS Enhanced Index Funds AN INTERVIEW WITH THE PORTFOLIO MANAGER UBS ENHANCED S&P 500 FUND Q. HOW DID THE UBS ENHANCED S&P 500 FUND PERFORM OVER THE SIX MONTHS ENDED MARCH 31, 2002? A. During a difficult period for stock investors, the Fund's Class A shares gained 10.1% (before deducting sales charges; 6.8% after deducting maximum sales charges), performing in lockstep with that of its peer group but slightly underperforming the index. For the period, the S&P 500 Index and the Lipper Large Cap Core Funds Median returned 11.0% and 10.1%, respectively. Q. WHAT WAS THE ECONOMIC ENVIRONMENT LIKE DURING THE SEMIANNUAL PERIOD? A. The economic environment improved dramatically during the six months. As we entered the period, the economy had been dealt a sharp blow by the events of September 11. While the economy had been slowing since March 2001, the terrorist attacks made a bad situation worse. In this environment, the Federal Reserve (the "Fed") continued to reduce short-term interest rates in an effort to boost economic growth. However, gross domestic product (GDP), a measure of economic growth, declined 1.3% for the third calendar quarter of 2001. As we moved into the first calendar quarter of 2002, the economic picture began to change for the better as orders for durable goods, productivity and manufacturing output showed improvement. Consumer spending and home sales, which had been relatively strong throughout the economic downturn, remained robust. While there were slight pullbacks in some economic indicators toward the end of the first quarter, GDP growth came in at 5.8% for the quarter. Q. HOW DID STOCKS PERFORM IN THIS ECONOMIC ENVIRONMENT? A. While there were strong stock market rallies during the period, these were short-lived and many stocks struggled. Even as the fundamentals of the economy improved, corporate earnings remained in the doldrums. Because stock prices tend to follow earnings growth, investors had relatively little incentive to invest in companies that, in many cases, could offer little guidance as to when their earnings might improve. As had been the case for several months, technology and telecommunications stocks were the worst performing - -------------------------------------------------------------------------------- 2 UBS Global Asset Management UBS Enhanced Index Funds sectors of the market. Growth stocks continued to be out of favor with investors, but value stocks-stocks whose prices do not reflect the intrinsic value of the underlying company-remained popular. Q. HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT? A. Our dynamic stock-ranking model ranks the stocks in the Index by considering independent composite factors such as earnings expectations, earnings growth, valuation, dividend yield, return on equity and sales/margins. These factors have varying influences during different phases of the stock market cycle and we reevaluate the relative importance and weighting of each factor on a monthly basis. Our enhanced S&P 500 strategy includes measures of both growth characteristics and value characteristics. The model continues to assign a higher weighting to those factors biased toward value. However, the growth measures in our ranking system continued to rise in importance except for the growth factor measuring earnings expectations . Therefore, the Fund was tilted towards value by most traditional measures of valuation and emphasized expectations for increasing return on equity and for earnings growth. The Fund's strategy was balanced between its value and growth measures* and had a slightly higher market capitalization than the S&P 500 Index. The Fund's measures for earnings yield, dividend yield, return on equity and earnings growth were slightly higher than those of the S&P 500 Index. Q. WHAT SECTORS WERE ATTRACTIVE DURING THE PERIOD? A. We invested in areas that we believed had the potential to perform well in the sluggish economic environment and that could do well in the future as the economy strengthens. For example, we overweighted the Fund in the financials sector, particularly banks, which benefited from declining interest rates. We also had an overweighting in consumer staples stocks, which tend to perform well in virtually any economic environment. In this area, we emphasized food, beverage and tobacco stocks. In the broad industrials sector, we emphasized commercial services businesses that provide services to other companies, such as outsourcing companies. Such companies tend to do well when economic growth begins to accelerate. The Fund also was overweighted in Internet software and services stocks. Among individual companies, Boeing (0.5%) and United Technologies (0.5%) contributed the most to performance.* * Weightings represent percentages of net assets as of March 31, 2002. The Fund's portfolio is actively managed and its composition will differ over time. - -------------------------------------------------------------------------------- UBS Global Asset Management 3 UBS Enhanced Index Funds We underweighted the Fund in the insurance, information technology (computer hardware) and consumer discretionary sectors. The Fund was underweighted in Qwest Communications (0.1%) and Nortel Networks (0.1%) relative to the S&P 500 Index stock weights.* These stocks declined substantially during the six months, but their downward trend had a relatively small impact on the Fund's return. Q. WHAT IS YOUR OUTLOOK? A. Our outlook is relatively positive, as we believe the economy will continue to recover in the months ahead. While corporate earnings in the first quarter of 2002 were generally lackluster, in many cases they showed improvement over previous quarters. Should corporate earnings begin to accelerate in future quarters, the market should respond favorably. Over the long term, it is likely that equities will remain a solid performing asset class from a return perspective when compared to cash and bonds. Going forward, we will continue to follow our proprietary enhanced S&P 500 strategy. * Weightings represent percentages of net assets as of March 31, 2002. The Fund's portfolio is actively managed and its composition will differ over time. - -------------------------------------------------------------------------------- 4 UBS Global Asset Management UBS Enhanced Index Funds Performance At a Glance
Average Annual Total Returns, Periods Ended 3/31/02 6 Months 1 Year Inception* - --------------------------------------------------------------------------------------- Before Deducting Class A* 10.08% -0.22% -12.00% ------------------------------------------------------ Maximum Sales Charge Class B** 9.94 -0.64 -12.33 ------------------------------------------------------ Class C+ 9.96 -0.51 -12.35 ------------------------------------------------------ Class Y++ 10.28 -0.01 -11.75 - --------------------------------------------------------------------------------------- After Deducting Class A* 6.76 -3.20 -13.38 ------------------------------------------------------ Maximum Sales Charge Class B** 6.94 -3.62 -13.70 ------------------------------------------------------ Class C+ 8.22 -2.18 -12.80 - --------------------------------------------------------------------------------------- S&P 500 Index 10.97 0.21 -10.46 - --------------------------------------------------------------------------------------- Lipper Large Cap Core 10.11 -1.57 -11.30 Funds Median - ---------------------------------------------------------------------------------------
Past performance is no guarantee of future performance. Performance results for the Fund assume reinvestment of all dividends and capital gains; however, the results do not reflect the federal, state or local taxes to which an investor may have been subject. The investment return and the principal value of an investment in the Fund will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns for periods of one year or less are cumulative. o Inception: since commencement of issuance on April 26, 2000 for share classes A, B, C and Y. Inception for the Index and Lipper Median is as of the nearest month end of the Fund's inception: April 30, 2000. * Maximum sales charge for Class A shares is 3.0% of the public offering price. Class A shares bear ongoing 12b-1 service fees. ** Maximum contingent deferred sales charge for Class B shares is 3.0% and is reduced to 0% after six years. Class B shares bear ongoing 12b-1 distribution and service fees. + Maximum sales charge for Class C shares is 1.65%, consisting of a maximum sales charge of 1% imposed on purchases and a maximum contingent deferred sales charge of 0.65% for redemptions, which is reduced to 0% after one year. Class C shares bear ongoing 12b-1 distribution and service fees. ++ The Fund offers Class Y shares to a limited group of eligible investors. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 distribution and service fees. - -------------------------------------------------------------------------------- UBS Global Asset Management 5 UBS Enhanced Index Funds Portfolio Statistics
CHARACTERISTICS* 3/31/02 9/30/01 - ------------------------------------------------------------------------------------------------- Average Market Capitalization (bln) $ 101.5 N/A - ------------------------------------------------------------------------------------------------- Wtd. Price/Earnings Ratio 28.1x 20.0x - ------------------------------------------------------------------------------------------------- Wtd. Price/Book Ratio 5.8x 5.2x - ------------------------------------------------------------------------------------------------- Net Assets ($mm) $ 72.2 $ 54.2 - ------------------------------------------------------------------------------------------------- Number of Securities 398 413 - ------------------------------------------------------------------------------------------------- Stocks 99.8% 99.8% - ------------------------------------------------------------------------------------------------- Cash & Equivalents 0.2% 0.2% - ------------------------------------------------------------------------------------------------- TOP FIVE SECTORS* 3/31/02 9/30/01 - ------------------------------------------------------------------------------------------------- Financials 19.8% Financials 22.7% - ------------------------------------------------------------------------------------------------- Information Technology 15.4 Health Care 15.0 - ------------------------------------------------------------------------------------------------- Health Care 14.3 Information Technology 14.9 - ------------------------------------------------------------------------------------------------- Consumer Discretionary 12.7 Consumer Discretionary 12.1 - ------------------------------------------------------------------------------------------------- Industrials 11.4 Consumer Non-Discretionary 8.7 - ------------------------------------------------------------------------------------------------- Total 73.6% Total 73.4% - ------------------------------------------------------------------------------------------------- TOP TEN HOLDINGS* 3/31/02 9/30/01 - ------------------------------------------------------------------------------------------------- General Electric 3.6% General Electric 3.9% - ------------------------------------------------------------------------------------------------- Microsoft 3.2 Microsoft 2.9 - ------------------------------------------------------------------------------------------------- Exxon Mobil 2.8 Exxon Mobil 2.8 - ------------------------------------------------------------------------------------------------- Citigroup 2.5 Pfizer 2.7 - ------------------------------------------------------------------------------------------------- Wal-Mart Stores 2.5 Wal-Mart Stores 2.3 - ------------------------------------------------------------------------------------------------- Pfizer 2.5 Citigroup 2.1 - ------------------------------------------------------------------------------------------------- Intel 1.9 American International Group 2.0 - ------------------------------------------------------------------------------------------------- American International Group 1.9 SPDR Trust Series 1 1.9 - ------------------------------------------------------------------------------------------------- Johnson & Johnson 1.8 SBC Communications 1.8 - ------------------------------------------------------------------------------------------------- International Business Machines 1.7 Merck & Co. 1.7 - ------------------------------------------------------------------------------------------------- TOTAL 24.4% TOTAL 24.1% - -------------------------------------------------------------------------------------------------
* Weightings represent percentages of net assets as of the dates indicated. The Fund's portfolio is actively managed and its composition will vary over time. - -------------------------------------------------------------------------------- 6 UBS Global Asset Management UBS Enhanced Index Funds UBS Enhanced Nasdaq-100 Fund Q. HOW DID THE UBS ENHANCED NASDAQ-100 FUND PERFORM OVER THE SIX MONTHS ENDED MARCH 31, 2002? A. During a difficult period for stock investors, the Fund's Class A shares advanced a robust 23.8% (before deducting sales charges; 16.9% after deducting sales charges), strongly outpacing that of its peer group-the Lipper Multi Cap Growth Funds Median-which returned 13.7%. The Fund slightly underperformed the 24.4% return of the Nasdaq-100 Index. Q. WHAT WAS THE ECONOMIC ENVIRONMENT LIKE DURING THE SEMIANNUAL PERIOD? A. The economic environment improved dramatically during the six months ended March 31, 2002. As we entered the period, the economy had been dealt a sharp blow by the events of September 11. However, gross domestic product (GDP), a measure of economic growth, declined 1.3% for the third calendar quarter of 2001. As we moved into the first calendar quarter of 2002, the economic picture began to change for the better as orders for durable goods, productivity and manufacturing output showed improvement. Consumer spending and home sales, which had been relatively strong throughout the economic downturn, remained robust. While there were slight pullbacks in some economic indicators toward the end of the first quarter, GDP growth came in at 5.8% for the quarter. Q. HOW DID STOCKS PERFORM IN THIS ECONOMIC ENVIRONMENT? A. While there were strong stock market rallies during the period, these were short-lived and many stocks struggled. Even as the fundamentals of the economy improved, corporate earnings remained in the doldrums. Because stock prices tend to follow earnings growth, investors had relatively little incentive to invest in companies that, in many cases, could offer little guidance as to when their earnings might improve. As had been the case for several months, technology and telecommunications stocks were the worst performing sectors of the market. Growth stocks continued to be out of favor with investors, but value stocks-stocks whose prices do not reflect the intrinsic value of the underlying company-remained popular. Q. HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT? A. Our dynamic stock-ranking model ranks the stocks in the Index by considering independent composite factors such as earnings expectations, earnings - -------------------------------------------------------------------------------- UBS Global Asset Management 7 UBS Enhanced Index Funds growth, valuation, return on equity and sales/margins. These factors have varying influences during different phases of the stock market cycle and we reevaluate the relative importance and weighting of each factor on a monthly basis. Our enhanced Nasdaq-100 strategy, which includes measures of both growth characteristics and value characteristics, was focused primarily on growth because the stocks in the Nasdaq-100 Index maintained a bias toward sales-related factors. The model continues to assign a higher weighting to those factors biased towards value by most traditional measures of value and emphasized expectations for increasing return on equity, cash earnings growth and relative sales margins. The Fund had a slightly higher market capitalization than the Nasdaq-100 Index. Q. WHAT SECTORS WERE ATTRACTIVE DURING THE PERIOD? A. We overweighted the Fund in the industrial and information technology sectors and underweighted it in the health care sector. In looking at the performance of individual stocks, the Fund's overweighting in Siebel Systems (1.8%) and Starbucks (1.3%), both of which rose significantly during the quarter, contributed to performance.* The Fund was underweighted in Adelphia Communications 0.3%, which provides an array of communications services to businesses and consumers, and Sepacor (0.1%), which makes new versions of existing drugs.* These two stocks declined substantially during the six months, but their downward trend had a relatively small impact on the Fund's return as the Fund held underweight positions relative to the Nasdaq-100 Index. Q. WHAT IS YOUR OUTLOOK? A. Our outlook is relatively positive, as we believe the economy will continue to recover in the months ahead. While corporate earnings in the first quarter of 2002 were generally lackluster, in many cases they showed improvement over previous quarters. Should corporate earnings begin to accelerate in future quarters, the market should respond favorably. Over the long term, it is likely that equities will remain a solid performing asset class from a return perspective when compared to cash and bonds. Going forward, we will continue to follow our proprietary enhanced Nasdaq-100 strategy. Therefore, substantially all of our investments will be in the stocks of the Nasdaq-100 Index. * Weightings represent percentage of net assets as of March 31, 2002. The Fund's portfolio is actively managed and its composition will vary over time. - -------------------------------------------------------------------------------- 8 UBS Global Asset Management UBS Enhanced Index Funds PERFORMANCE AT A GLANCE
Average Annual Total Returns, Periods Ended 3/31/02 6 Months 1 Year Inception* - --------------------------------------------------------------------------------------- Before Deducting Class A* 23.77% -8.24% -37.69% ------------------------------------------------------ Maximum Sales Charge Class B** 23.05 -8.99 -38.18 ------------------------------------------------------ Class C+ 23.05 -8.99 -38.18 ------------------------------------------------------ Class Y++ 24.00 -7.99 -37.53 - --------------------------------------------------------------------------------------- After Deducting Class A* 16.91 -13.20 -39.49 ------------------------------------------------------ Maximum Sales Charge Class B** 18.05 -13.54 -39.47 ------------------------------------------------------ Class C+ 20.91 -10.73 -38.50 - --------------------------------------------------------------------------------------- Nasdaq-100 Index 24.35 -7.66 -39.22 - --------------------------------------------------------------------------------------- Lipper Multi Cap Growth Funds Median 13.66 -6.93 -23.65 - ---------------------------------------------------------------------------------------
Past performance is no guarantee of future performance. Performance results for the Fund assume reinvestment of all dividends and capital gains; however, the results do not reflect the federal, state or local taxes to which an investor may have been subject. The investment return and the principal value of an investment in the Fund will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns for periods of one year or less are cumulative. o Inception: since commencement of issuance on April 26, 2000 for share classes A, B, C and Y. Inception for the Index and Lipper Median is as of the nearest month end of the Fund's inception: April 30, 2000. * Maximum sales charge for Class A shares is 5.5% of the public offering price. Class A shares bear ongoing 12b-1 service fees. ** Maximum contingent deferred sales charge for Class B shares is 5% and is reduced to 0% after six years. Class B shares bear ongoing 12b-1 distribution and service fees. + Maximum sales charge for Class C shares is 2%, consisting of a maximum sales charge of 1% imposed on purchases and a maximum contingent deferred sales charge of 1% for redemptions, which is reduced to 0% after one year. Class C shares bear ongoing 12b-1 distribution and service fees. ++ The Fund offers Class Y shares to a limited group of eligible investors. Class Y shares do not bear initial or contingent deferred sales charges or ongoing 12b-1 distribution and service fees. - -------------------------------------------------------------------------------- UBS Global Asset Management 9 UBS Enhanced Index Funds PORTFOLIO STATISTICS
CHARACTERISTICS* 3/31/02 9/30/01 - -------------------------------------------------------------------------------------------------- Average Market Capitalization (bln) $ 68.7 N/A - -------------------------------------------------------------------------------------------------- Weighted Price/Earnings Ratio N/A 30.0x - -------------------------------------------------------------------------------------------------- Weighted Price/Book Ratio 6.7x 5.4x - -------------------------------------------------------------------------------------------------- Net Assets (mm) $ 52.2 $ 43.3 - -------------------------------------------------------------------------------------------------- Number of Securities 101 97 - -------------------------------------------------------------------------------------------------- Stocks 100.2% 100.2% - -------------------------------------------------------------------------------------------------- Liabilities in Excess of Other Assets -0.2% -0.2% - -------------------------------------------------------------------------------------------------- Cash & Equivalents 0.0% 0.0% - -------------------------------------------------------------------------------------------------- TOP FIVE SECTORS* 3/31/02 9/30/01 - -------------------------------------------------------------------------------------------------- Information Technology 65.5% Information Technology 68.8% - -------------------------------------------------------------------------------------------------- Health Care 14.8 Health Care 14.5 - -------------------------------------------------------------------------------------------------- Consumer Discretionary 10.8 Consumer Discretionary 10.9 - -------------------------------------------------------------------------------------------------- Industrials 6.7 Telecommunication Services 3.2 - -------------------------------------------------------------------------------------------------- Telecommunications Services 1.6 Financials 1.8 - -------------------------------------------------------------------------------------------------- TOTAL 99.4% TOTAL 99.2% - -------------------------------------------------------------------------------------------------- TOP TEN HOLDINGS* 3/31/02 9/30/01 - -------------------------------------------------------------------------------------------------- Microsoft 10.8% Microsoft 12.1% - -------------------------------------------------------------------------------------------------- Intel 6.8 Intel 6.1 - -------------------------------------------------------------------------------------------------- Cisco Systems 4.3 Qualcomm 5.4 - -------------------------------------------------------------------------------------------------- Qualcomm 3.4 Cisco Systems 4.0 - -------------------------------------------------------------------------------------------------- Oracle 2.9 Oracle 3.8 - -------------------------------------------------------------------------------------------------- Amgen 2.8 Amgen 3.6 - -------------------------------------------------------------------------------------------------- Dell Computer 2.5 Dell Computer 2.4 - -------------------------------------------------------------------------------------------------- Maxim Integrated Products 2.4 Maxim Integrated Products 2.1 - -------------------------------------------------------------------------------------------------- Immunex 2.2 MCI WorldCom 2.1 - -------------------------------------------------------------------------------------------------- Applied Materials 2.1 Comcast 2.0 - -------------------------------------------------------------------------------------------------- TOTAL 40.2% TOTAL 43.6% - --------------------------------------------------------------------------------------------------
* Weightings represent percentages of net assets as of the dates indicated. The Fund's portfolio is actively managed and its composition will vary over time. - -------------------------------------------------------------------------------- 10 UBS Global Asset Management UBS Enhanced Index Funds Our ultimate objective in managing your investments is to help you successfully meet your financial goals. We thank you for your continued support and welcome any comments or questions you may have. For more information on the UBS Funds,1please contact your financial advisor or visit us at www.ubs.com. Sincerely, [GRAPHIC OMITTED] /s/ Brian M. Storms - ------------------- Brian M. Storms President UBS Enhanced S&P 500 Fund UBS Enhanced Nasdaq-100 Fund President and Chief Operating Officer UBS Global Asset Management (US) Inc. DSI Team DSI International Management, Inc. Portfolio Manager UBS Enhanced S&P 500 Fund UBS Enhanced Nasdaq-100 Fund This letter is intended to assist shareholders in understanding how the Funds performed during the six months ended March 31, 2002, and reflects our views at the time of its writing. Of course, these views may change in response to changing circumstances. We encourage you to consult your financial advisor regarding your personal investment program. 1. Mutual funds are sold by prospectus only. The prospectuses for the funds contain more complete information regarding risks, charges and expenses, and should be read carefully before investing. - -------------------------------------------------------------------------------- UBS Global Asset Management 11 UBS Enhanced S&P 500 Fund Performance Results (unaudited)
NET ASSET VALUE TOTAL RETURN1 -------------------------------- ------------------------- 12 MONTHS 6 MONTHS ENDED ENDED 03/31/02 09/30/01 03/31/01 03/31/02 03/31/02 - ------------------------------------------------------------------------------ Class A Shares $ 7.77 $ 7.07 $ 7.80 (0.22)% 10.08% - ------------------------------------------------------------------------------ Class B Shares 7.74 7.04 7.79 (0.64) 9.94 - ------------------------------------------------------------------------------ Class C Shares 7.73 7.03 7.77 (0.51) 9.96 - ------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS A SHARES
NET ASSET VALUE CAPITAL ------------------------ GAINS DIVIDENDS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1) - ------------------------------------------------------------------------------------- 04/26/00-12/31/00 $ 10.00 $ 8.87 $ 0.0184 $ 0.0155 (10.97)% - ------------------------------------------------------------------------------------- 2001 8.87 7.77 - 0.0127 (12.26) - ------------------------------------------------------------------------------------ 01/01/02-03/31/02 7.77 7.77 - - 0.00 - ------------------------------------------------------------------------------------ Totals: $ 0.0184 $ 0.0282 - ------------------------------------------------------------------------------------ CUMULATIVE TOTAL RETURN AS OF 03/31/02: (21.88)% - ------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS B SHARES
NET ASSET VALUE CAPITAL ------------------------- GAINS DIVIDENDS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1) - ----------------------------------------------------------------------------------------------- 04/26/00-12/31/00 $ 10.00 $ 8.87 $ 0.0184 $ - (11.12)% - ----------------------------------------------------------------------------------------------- 2001 8.87 7.75 - - (12.63) - ----------------------------------------------------------------------------------------------- 01/01/02-03/31/02 7.75 7.74 - - (0.13) - ----------------------------------------------------------------------------------------------- Totals: $ 0.0184 $ - - ----------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 03/31/02: (22.45)% - -----------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS C SHARES
NET ASSET VALUE CAPITAL ------------------------ GAINS DIVIDENDS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1) - ------------------------------------------------------------------------------------- 04/26/00-12/31/00 $ 10.00 $ 8.87 $ 0.0184 $ 0.0088 (11.04)% - ------------------------------------------------------------------------------------- 2001 8.87 7.74 - - (12.74) - ------------------------------------------------------------------------------------- 01/01/02-03/31/02 7.74 7.73 - - (0.13) - ------------------------------------------------------------------------------------- Totals: $ 0.0184 $ 0.0088 - ------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 03/31/02: (22.47)% - -------------------------------------------------------------------------------------
1. Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend dates and do not include sales charges; results for each class would be lower if sales charges were included. Total investment return for periods of less than one year has not been annualized. Note: The Fund offers Class Y shares to a limited group of eligible investors. For the six months ended March 31, 2002 and since inception, April 26, 2000 through March 31, 2002, Class Y shares have a total return of 10.28% and (21.45)%, respectively. Class Y shares do not have initial or contingent deferred sales charges or ongoing 12b-1 distribution and service fees. The data above represents past performance of the Fund's shares, which is no guarantee of future results. The principal value of an investment in the Fund will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. - -------------------------------------------------------------------------------- 12 UBS Global Asset Management UBS Enhanced Nasdaq-100 Fund Performance Results (unaudited)
NET ASSET VALUE TOTAL RETURN(1) -------------------------------- ----------------------- 12 MONTHS 6 MONTHS ENDED ENDED 03/31/02 09/30/01 03/31/01 03/31/02 03/31/02 - ------------------------------------------------------------------------------ Class A Shares $ 4.01 $ 3.24 $ 4.37 (8.24)% 23.77% - ------------------------------------------------------------------------------ Class B Shares 3.95 3.21 4.34 (8.99) 23.05 - ------------------------------------------------------------------------------ Class C Shares 3.95 3.21 4.34 (8.99) 23.05 - ------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS A SHARES
NET ASSET VALUE CAPITAL ----------------------- GAINS DIVIDENDS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1) - -------------------------------------------------------------------------------------- 04/26/00-12/31/00 $ 10.00 $ 6.50 $ - $ - (35.00)% - -------------------------------------------------------------------------------------- 2001 6.50 4.36 - - (32.92) - -------------------------------------------------------------------------------------- 01/01/02-03/31/02 4.36 4.01 - - (8.03) - -------------------------------------------------------------------------------------- Totals: $ - $ - - -------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 03/31/02: (59.90)% - --------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS B SHARES
NET ASSET VALUE CAPITAL ------------------------ GAINS DIVIDENDS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1) - -------------------------------------------------------------------------------------- 04/26/00-12/31/00 $ 10.00 $ 6.47 $ - $ - (35.30)% - -------------------------------------------------------------------------------------- 2001 6.47 4.30 - - (33.54) - -------------------------------------------------------------------------------------- 01/01/02-03/31/02 4.30 3.95 - - (8.14) - -------------------------------------------------------------------------------------- Totals: $ - $ - - -------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 03/31/02: (60.50)% - --------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS C SHARES
NET ASSET VALUE CAPITAL ------------------------ GAINS DIVIDENDS TOTAL PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1) - -------------------------------------------------------------------------------------- 04/26/00-12/31/00 $ 10.00 $ 6.47 $ - $ - (35.30)% - -------------------------------------------------------------------------------------- 2001 6.47 4.30 - - (33.54) - -------------------------------------------------------------------------------------- 01/01/02-03/31/02 4.30 3.95 - - (8.14) - -------------------------------------------------------------------------------------- Totals: $ - $ - - -------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURN AS OF 03/31/02: (60.50)% - --------------------------------------------------------------------------------------
1. Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend dates and do not include sales charges; results for each class would be lower if sales charges were included. Total investment return for periods of less than one year has not been annualized. Note: The Fund offers Class Y shares to a limited group of eligible investors. For the six months ended March 31, 2002 and since inception, April 26, 2000 through March 31, 2002, Class Y shares have a total return of 24.00% and (59.70)%, respectively. Class Y shares do not have initial or contingent deferred sales charges or ongoing 12b-1 distribution and service fees. The data above represents past performance of the Fund's shares, which is no guarantee of future results. The principal value of an investment in the Fund will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. - -------------------------------------------------------------------------------- UBS Global Asset Management 13 UBS Enhanced S&P 500 Fund Portfolio of Investments - March 31, 2002 (unaudited) Common Stocks - 99.00%
SECURITY DESCRIPTION SHARES MARKET VALUE - ------------------------------------------------------------- AEROSPACE & DEFENSE - 2.08% Boeing Co. 6,800 $ 328,100 - ------------------------------------------------------------- General Dynamics Corp. 1,800 169,110 - ------------------------------------------------------------- Goodrich Corp. 1,500 47,460 - ------------------------------------------------------------- Honeywell International, Inc. 6,200 237,274 - ------------------------------------------------------------- Lockheed Martin Corp. 3,000 172,740 - ------------------------------------------------------------- Northrop Grumman Corp. 600 67,830 - ------------------------------------------------------------- Raytheon Co. 2,600 106,730 - ------------------------------------------------------------- Rockwell Collins, Inc. 1,600 40,352 - ------------------------------------------------------------- United Technologies Corp. 4,500 333,900 - ------------------------------------------------------------- 1,503,496 - ------------------------------------------------------------- AIRLINES - 0.09% Southwest Airlines Co. 3,200 61,920 - ------------------------------------------------------------- AIR FREIGHT & COURIERS - 0.19% FedEx Corp.* 1,900 110,390 - ------------------------------------------------------------- Ryder System, Inc. 1,000 29,540 - ------------------------------------------------------------- 139,930 - ------------------------------------------------------------- AUTO COMPONENTS - 0.16% Dana Corp. 1,000 21,470 - ------------------------------------------------------------- Johnson Controls, Inc. 500 44,155 - ------------------------------------------------------------- TRW, Inc. 1,000 51,470 - ------------------------------------------------------------- 117,095 - ------------------------------------------------------------- AUTOMOBILES - 0.59% - ------------------------------------------------------------- Ford Motor Co. 7,622 125,687 - ------------------------------------------------------------- General Motors Corp. 5,000 302,250 - ------------------------------------------------------------- 427,937 - ------------------------------------------------------------- BANKS - 7.35% AmSouth Bancorp 4,000 87,920 - ------------------------------------------------------------- Bank of America Corp. 11,300 768,626 - ------------------------------------------------------------- Bank of New York Co., Inc. 6,200 260,524 - ------------------------------------------------------------- Bank One Corp. 7,400 309,172 - ------------------------------------------------------------- BB&T Corp. 4,600 175,306 - ------------------------------------------------------------- Charter One Financial, Inc. 3,625 113,173 - ------------------------------------------------------------- Comerica, Inc. 1,900 118,883 - ------------------------------------------------------------- Fifth Third Bancorp 5,400 364,392 - ------------------------------------------------------------- FleetBoston Financial Corp. 8,012 280,420 - ------------------------------------------------------------- Golden West Financial Corp. 1,300 82,550 - ------------------------------------------------------------- Huntington Bancshares, Inc. 1,430 28,171 - ------------------------------------------------------------- KeyCorp 2,900 77,285 - ------------------------------------------------------------- Mellon Financial Corp. 1,500 57,885 - -------------------------------------------------------------
SECURITY DESCRIPTION SHARES MARKET VALUE - -------------------------------------------------------------- BANKS - (CONCLUDED) National City Corp. 6,600 $ 203,016 - -------------------------------------------------------------- Northern Trust Corp. 1,500 90,165 - -------------------------------------------------------------- PNC Financial Services Group 1,700 104,533 - -------------------------------------------------------------- Regions Financial Corp. 3,200 109,920 - -------------------------------------------------------------- Southtrust Corp. 4,000 105,600 - -------------------------------------------------------------- SunTrust Banks, Inc. 3,100 206,863 - -------------------------------------------------------------- Synovus Financial Corp. 4,000 121,920 - -------------------------------------------------------------- U.S. Bancorp 16,221 366,108 - -------------------------------------------------------------- Union Planters Corp. 900 42,651 - -------------------------------------------------------------- Wachovia Corp. 9,200 341,136 - -------------------------------------------------------------- Washington Mutual, Inc. 8,050 266,696 - -------------------------------------------------------------- Wells Fargo & Co. 12,000 592,800 - -------------------------------------------------------------- Zions Bancorp 500 29,635 - -------------------------------------------------------------- 5,305,350 - -------------------------------------------------------------- BEVERAGES - 2.80% Adolph Coors Co., Class B 500 33,735 - -------------------------------------------------------------- Anheuser-Busch Cos., Inc. 5,200 271,440 - -------------------------------------------------------------- Brown-Forman Corp., Class B 900 65,484 - -------------------------------------------------------------- Coca-Cola Co. 18,300 956,358 - -------------------------------------------------------------- Coca-Cola Enterprises, Inc. 5,800 108,924 - -------------------------------------------------------------- Pepsi Bottling Group, Inc. 1,200 31,044 - -------------------------------------------------------------- PepsiCo, Inc. 10,790 555,685 - -------------------------------------------------------------- 2,022,670 - -------------------------------------------------------------- BIOTECHNOLOGY - 1.06% Amgen, Inc.* 7,100 423,728 - -------------------------------------------------------------- Biogen, Inc.* 1,900 93,214 - -------------------------------------------------------------- Chiron Corp.* 1,000 45,890 - -------------------------------------------------------------- Immunex Corp.* 3,100 93,806 - -------------------------------------------------------------- Medimmune, Inc.* 2,800 110,124 - -------------------------------------------------------------- 766,762 - -------------------------------------------------------------- BUILDING PRODUCTS - 0.21% Crane Co. 1,800 49,212 - -------------------------------------------------------------- Masco Corp. 3,700 101,565 - -------------------------------------------------------------- 150,777 - -------------------------------------------------------------- CHEMICALS - 1.39% Air Products & Chemicals, Inc. 1,500 77,475 - -------------------------------------------------------------- Dow Chemical Co. 6,200 202,864 - -------------------------------------------------------------- DuPont (E.I.) de Nemours & Co. 8,400 396,060 - -------------------------------------------------------------- Ecolab, Inc. 800 36,576 - --------------------------------------------------------------
- -------------------------------------------------------------------------------- 14 UBS Global Asset Management UBS Enhanced S&P 500 Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 2002 (unaudited)
COMMON STOCKS - (CONTINUED) SECURITY DESCRIPTION SHARES MARKET VALUE - ------------------------------------------------------------ CHEMICALS - (CONCLUDED) Hercules, Inc. 1,700 $ 22,627 - ------------------------------------------------------------ International Flavors & Fragrances, Inc. 1,900 66,443 - ------------------------------------------------------------ PPG Industries, Inc. 1,300 71,383 - ------------------------------------------------------------ Praxair, Inc. 1,100 65,780 - ------------------------------------------------------------ Rohm & Haas Co. 500 21,135 - ------------------------------------------------------------ Sigma-Aldrich Corp. 900 42,264 - ------------------------------------------------------------ 1,002,607 - ------------------------------------------------------------ COMMERCIAL SERVICES & SUPPLIES - 2.50% Allied Waste Industries, Inc.* 3,800 49,400 - ------------------------------------------------------------ Automatic Data Processing, Inc. 5,800 337,966 - ------------------------------------------------------------ Avery Dennison Corp. 800 48,824 - ------------------------------------------------------------ Cendant Corp.* 10,500 201,600 - ------------------------------------------------------------ Cintas Corp. 1,700 84,762 - ------------------------------------------------------------ Concord EFS, Inc.* 5,400 179,550 - ------------------------------------------------------------ Convergys Corp.* 1,800 53,226 - ------------------------------------------------------------ First Data Corp. 2,100 183,225 - ------------------------------------------------------------ Fiserv, Inc.* 2,750 126,473 - ------------------------------------------------------------ H&R Block, Inc. 1,200 53,340 - ------------------------------------------------------------ IMS Health, Inc. 3,100 69,595 - ------------------------------------------------------------ Paychex, Inc. 4,100 162,770 - ------------------------------------------------------------ Pitney Bowes, Inc. 3,100 132,680 - ------------------------------------------------------------ Waste Management, Inc. 4,400 119,900 - ------------------------------------------------------------ 1,803,311 - ------------------------------------------------------------ COMMUNICATIONS EQUIPMENT - 2.16% Cisco Systems, Inc.* 50,800 860,044 - ------------------------------------------------------------ Comverse Technology, Inc.* 1,500 19,005 - ------------------------------------------------------------ Corning, Inc. 5,300 40,386 - ------------------------------------------------------------ JDS Uniphase Corp.* 8,700 51,243 - ------------------------------------------------------------ Lucent Technologies, Inc. 12,400 58,652 - ------------------------------------------------------------ Motorola, Inc. 15,400 218,680 - ------------------------------------------------------------ Nortel Networks Corp. 8,900 39,961 - ------------------------------------------------------------ Qualcomm, Inc.* 5,200 195,728 - ------------------------------------------------------------ Scientific-Atlanta, Inc. 2,100 48,510 - ------------------------------------------------------------ Tellabs, Inc.* 2,500 26,175 - ------------------------------------------------------------ 1,558,384 - ------------------------------------------------------------ COMPUTERS & PERIPHERALS - 3.60% Apple Computer, Inc.* 1,900 44,973 - ------------------------------------------------------------ Compaq Computer Corp. 12,100 126,445 - ------------------------------------------------------------ Dell Computer Corp.* 17,800 464,758 - ------------------------------------------------------------
SECURITY DESCRIPTION SHARES MARKET VALUE - ------------------------------------------------------------ COMPUTERS & PERIPHERALS - (CONCLUDED) EMC Corp. 12,900 $ 153,768 - ------------------------------------------------------------ Hewlett-Packard Co. 13,500 242,190 - ------------------------------------------------------------ International Business Machines Corp. 12,100 1,258,400 - ------------------------------------------------------------ Lexmark International Group, Inc.* 900 51,462 - ------------------------------------------------------------ NCR Corp.* 1,300 58,175 - ------------------------------------------------------------ Network Appliance, Inc.* 1,900 38,722 - ------------------------------------------------------------ Sun Microsystems, Inc.* 18,400 162,288 - ------------------------------------------------------------ 2,601,181 - ------------------------------------------------------------ CONSTRUCTION MATERIALS - 0.07% Vulcan Materials Co. 1,000 47,540 - ------------------------------------------------------------ CONTAINERS & PACKAGING - 0.13% Pactiv Corp.* 800 16,016 - ------------------------------------------------------------ Sealed Air Corp.* 1,200 56,496 - ------------------------------------------------------------ Temple-Inland, Inc. 400 22,688 - ------------------------------------------------------------ 95,200 - ------------------------------------------------------------ Diversified Financials - 7.62% Ambac Financial Group, Inc. 600 35,442 - ------------------------------------------------------------ American Express Co. 9,700 397,312 - ------------------------------------------------------------ Capital One Financial Corp. 2,100 134,085 - ------------------------------------------------------------ Charles Schwab Corp. 8,950 117,156 - ------------------------------------------------------------ Citigroup, Inc. 36,792 1,821,940 - ------------------------------------------------------------ Countrywide Credit Industries, Inc. 1,600 71,600 - ------------------------------------------------------------ Federal Home Loan Mortgage Corp. 4,700 297,839 - ------------------------------------------------------------ Federal National Mortgage Association 7,300 583,124 - ------------------------------------------------------------ Franklin Resources, Inc. 1,900 79,648 - ------------------------------------------------------------ Household International, Inc. 3,300 187,440 - ------------------------------------------------------------ J.P. Morgan Chase & Co. 13,430 478,779 - ------------------------------------------------------------ Lehman Brothers Holdings, Inc. 900 58,176 - ------------------------------------------------------------ MBNA Corp. 6,300 242,991 - ------------------------------------------------------------ Merrill Lynch & Co., Inc. 5,100 282,438 - ------------------------------------------------------------ Moody's Corp. 1,300 53,430 - ------------------------------------------------------------ Morgan Stanley Dean Witter & Co. 7,400 424,094 - ------------------------------------------------------------ State Street Corp. 2,300 127,374 - ------------------------------------------------------------ Stilwell Financial, Inc. 1,400 34,286 - ------------------------------------------------------------ T. Rowe Price Group, Inc. 900 35,037 - ------------------------------------------------------------
- -------------------------------------------------------------------------------- UBS Global Asset Management 15 UBS Enhanced S&P 500 Fund Portfolio of Investments - March 31, 2002 (unaudited) Common Stocks - (continued)
SECURITY DESCRIPTION SHARES MARKET VALUE - ------------------------------------------------------------ DIVERSIFIED FINANCIALS - (CONCLUDED) USA Education, Inc. 400 $ 39,120 - ------------------------------------------------------------ 5,501,311 - ------------------------------------------------------------ DIVERSIFIED TELECOMMUNICATION SERVICES - 4.25% ALLTEL Corp. 2,800 155,540 - ------------------------------------------------------------ AT&T Corp. 18,547 291,188 - ------------------------------------------------------------ BellSouth Corp. 13,200 486,552 - ------------------------------------------------------------ CenturyTel, Inc. 2,500 85,000 - ------------------------------------------------------------ Citizens Communications Co.* 2,100 22,575 - ------------------------------------------------------------ Qwest Communications International, Inc. 5,437 44,692 - ------------------------------------------------------------ SBC Communications, Inc. 24,200 906,048 - ------------------------------------------------------------ Sprint Corp. 5,900 90,211 - ------------------------------------------------------------ Verizon Communications 18,608 849,455 - ------------------------------------------------------------ WorldCom, Inc. - WorldCom Group 20,400 137,496 - ------------------------------------------------------------ 3,068,757 - ------------------------------------------------------------ ELECTRIC UTILITIES - 1.99% Allegheny Energy, Inc. 1,700 70,295 - ------------------------------------------------------------ Ameren Corp. 1,300 55,575 - ------------------------------------------------------------ American Electric Power Co., Inc. 2,200 101,398 - ------------------------------------------------------------ Cinergy Corp. 1,400 50,050 - ------------------------------------------------------------ Consolidated Edison, Inc. 900 37,719 - ------------------------------------------------------------ Dominion Resources, Inc. 700 45,612 - ------------------------------------------------------------ Edison International, Inc. 3,400 56,950 - ------------------------------------------------------------ Entergy Corp. 800 34,728 - ------------------------------------------------------------ Exelon Corp. 3,862 204,570 - ------------------------------------------------------------ FirstEnergy Corp. 1,999 69,125 - ------------------------------------------------------------ FPL Group, Inc. 1,200 71,460 - ------------------------------------------------------------ PG&E Corp. 2,600 61,256 - ------------------------------------------------------------ Pinnacle West Capital Corp. 800 36,280 - ------------------------------------------------------------ PPL Corp. 1,000 39,610 - ------------------------------------------------------------ Progress Energy, Inc. 2,200 110,088 - ------------------------------------------------------------ Public Service Enterprise Group, Inc. 2,200 100,760 - ------------------------------------------------------------ Reliant Energy, Inc. 1,800 46,422 - ------------------------------------------------------------ Southern Co. 1,800 47,682 - ------------------------------------------------------------ TECO Energy, Inc. 1,000 28,630 - ------------------------------------------------------------ TXU Corp. 1,700 92,667 - ------------------------------------------------------------ Xcel Energy, Inc. 2,910 73,769 - ------------------------------------------------------------ 1,434,646 - ------------------------------------------------------------
SECURITY DESCRIPTION SHARES MARKET VALUE - ------------------------------------------------------------ ELECTRICAL EQUIPMENT - 0.46% American Power Conversion Corp.* 3,900 $ 57,642 - ------------------------------------------------------------ Cooper Industries, Inc. 1,200 50,340 - ------------------------------------------------------------ Emerson Electric Co. 3,400 195,126 - ------------------------------------------------------------ Rockwell Automation, Inc. 1,600 32,096 - ------------------------------------------------------------ 335,204 - ------------------------------------------------------------ ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.34% Agilent Technologies, Inc.* 2,519 88,064 - ------------------------------------------------------------ Jabil Circuit, Inc.* 1,300 30,589 - ------------------------------------------------------------ Sanmina-SCI Corp.* 2,500 29,375 - ------------------------------------------------------------ Solectron Corp.* 4,900 38,220 - ------------------------------------------------------------ Symbol Technologies, Inc. 1,800 20,232 - ------------------------------------------------------------ Waters Corp.* 1,300 36,361 - ------------------------------------------------------------ 242,841 - ------------------------------------------------------------ ENERGY EQUIPMENT & SERVICES - 0.73% Baker Hughes, Inc. 700 26,775 - ------------------------------------------------------------ Halliburton Co. 4,000 68,280 - ------------------------------------------------------------ Nabors Industries, Inc.* 900 38,025 - ------------------------------------------------------------ Noble Drilling Corp.* 1,300 53,807 - ------------------------------------------------------------ Schlumberger Ltd. 4,600 270,572 - ------------------------------------------------------------ Transocean Sedco Forex, Inc. 2,200 73,106 - ------------------------------------------------------------ 530,565 - ------------------------------------------------------------ FOOD & DRUG RETAILING - 1.37% Albertson's, Inc. 2,600 86,164 - ------------------------------------------------------------ CVS Corp. 4,400 151,052 - ------------------------------------------------------------ Kroger Co.* 5,300 117,448 - ------------------------------------------------------------ Safeway, Inc.* 5,300 238,606 - ------------------------------------------------------------ Sysco Corp. 3,500 104,370 - ------------------------------------------------------------ Walgreen Co. 7,400 290,006 - ------------------------------------------------------------ 987,646 - ------------------------------------------------------------ FOOD PRODUCTS - 1.55% Archer-Daniels-Midland Co. 5,005 69,720 - ------------------------------------------------------------ Campbell Soup Co. 3,600 96,480 - ------------------------------------------------------------ ConAgra Foods, Inc. 5,000 121,250 - ------------------------------------------------------------ General Mills, Inc. 1,900 92,815 - ------------------------------------------------------------ Heinz, H.J. Co. 3,100 128,650 - ------------------------------------------------------------ Kellogg Co. 4,400 147,708 - ------------------------------------------------------------ Sara Lee Corp. 5,600 116,256 - ------------------------------------------------------------ Unilever N.V. 3,700 210,160 - ------------------------------------------------------------
- -------------------------------------------------------------------------------- 16 UBS Global Asset Management UBS Enhanced S&P 500 Fund Portfolio of Investments - March 31, 2002 (unaudited) Common Stocks - (continued)
SECURITY DESCRIPTION SHARES MARKET VALUE - ---------------------------------------------------------------- FOOD PRODUCTS - (CONCLUDED) Wrigley Wm. Jr. Co. 2,600 $ 138,606 - ---------------------------------------------------------------- 1,121,645 - ---------------------------------------------------------------- GAS UTILITIES - 0.48% El Paso Corp. 3,761 165,597 - ---------------------------------------------------------------- KeySpan Corp. 900 32,751 - ---------------------------------------------------------------- NiSource, Inc. 2,400 55,080 - ---------------------------------------------------------------- Sempra Energy 3,600 90,540 - ---------------------------------------------------------------- 343,968 - ---------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES - 1.44% Applera Corp.Applied Biosystems Group 2,300 51,405 - ---------------------------------------------------------------- Bausch & Lomb, Inc. 800 35,656 - ---------------------------------------------------------------- Baxter International, Inc. 2,500 148,800 - ---------------------------------------------------------------- Becton, Dickinson and Co. 3,500 132,020 - ---------------------------------------------------------------- Boston Scientific Corp.* 2,600 65,234 - ---------------------------------------------------------------- Guidant Corp.* 3,000 129,960 - ---------------------------------------------------------------- Medtronic, Inc. 8,300 375,243 - ---------------------------------------------------------------- St. Jude Medical, Inc.* 200 15,430 - ---------------------------------------------------------------- Stryker Corp. 700 42,231 - ---------------------------------------------------------------- Zimmer Holdings, Inc.* 1,320 44,946 - ---------------------------------------------------------------- 1,040,925 - ---------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES - 1.72% AmerisourceBergen Corp. 1,500 102,450 - ---------------------------------------------------------------- Cardinal Health, Inc. 3,000 212,670 - ---------------------------------------------------------------- CIGNA Corp. 1,000 101,390 - ---------------------------------------------------------------- HCA, Inc. 3,400 149,872 - ---------------------------------------------------------------- Health Management Associates, Inc., Class A* 2,600 53,898 - ---------------------------------------------------------------- HEALTHSOUTH Corp.* 5,500 78,925 - ---------------------------------------------------------------- Humana, Inc.* 2,700 36,531 - ---------------------------------------------------------------- McKesson Corp. 800 29,944 - ---------------------------------------------------------------- Quintiles Transnational Corp.* 1,200 21,300 - ---------------------------------------------------------------- Tenet Healthcare Corp.* 2,200 147,444 - ---------------------------------------------------------------- UnitedHealth Group, Inc. 2,200 168,124 - ---------------------------------------------------------------- Wellpoint Health Networks, Inc.* 2,200 140,074 - ---------------------------------------------------------------- 1,242,622 - ---------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE - 1.13% Carnival Corp. 4,000 130,600 - ---------------------------------------------------------------- Harrah's Entertainment, Inc.* 700 30,982 - ----------------------------------------------------------------
Security Description Shares Market Value - --------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE - (CONCLUDED) - --------------------------------------------------------------- International Game Technology* 1,500 $ 93,480 - --------------------------------------------------------------- Marriott International, Inc. 1,100 49,445 - --------------------------------------------------------------- McDonalds Corp. 9,400 260,850 - --------------------------------------------------------------- Starbucks Corp.* 5,000 115,650 - --------------------------------------------------------------- Starwood Hotels & Resorts Worldwide, Inc., Class B 1,400 52,654 - --------------------------------------------------------------- Tricon Global Restaurants, Inc.* 1,400 82,292 - --------------------------------------------------------------- 815,953 - --------------------------------------------------------------- HOUSEHOLD DURABLES - 0.34% Centex Corp. 400 20,772 - --------------------------------------------------------------- KB Home 300 13,020 - --------------------------------------------------------------- Leggett & Platt, Inc. 1,500 37,200 - --------------------------------------------------------------- Maytag Corp. 1,000 44,250 - --------------------------------------------------------------- Newell Rubbermaid, Inc. 1,800 57,528 - --------------------------------------------------------------- Pulte Homes, Inc. 600 28,710 - --------------------------------------------------------------- Tupperware Corp. 2,100 47,775 - --------------------------------------------------------------- 249,255 - --------------------------------------------------------------- HOUSEHOLD PRODUCTS - 1.96% Clorox Co. 2,000 87,260 - --------------------------------------------------------------- Colgate-Palmolive Co. 4,500 257,175 - --------------------------------------------------------------- Kimberly-Clark Corp. 4,000 258,600 - --------------------------------------------------------------- Procter & Gamble Co. 9,000 810,810 - --------------------------------------------------------------- 1,413,845 - --------------------------------------------------------------- INDUSTRIAL CONGLOMERATES - 4.75% 3M Co. 2,300 264,523 - --------------------------------------------------------------- General Electric Co. 69,600 2,606,520 - --------------------------------------------------------------- Textron, Inc. 2,300 117,530 - --------------------------------------------------------------- Tyco International Ltd. 13,697 442,687 - --------------------------------------------------------------- 3,431,260 - --------------------------------------------------------------- INSURANCE - 3.75% ACE Ltd. 500 20,850 - --------------------------------------------------------------- AFLAC, Inc. 4,700 138,650 - --------------------------------------------------------------- Allstate Corp. 5,500 207,735 - --------------------------------------------------------------- American International Group, Inc. 18,602 1,341,948 - --------------------------------------------------------------- AON Corp. 1,600 56,000 - --------------------------------------------------------------- Chubb Corp. 400 29,240 - --------------------------------------------------------------- Cincinnati Financial Corp. 900 39,294 - --------------------------------------------------------------- Conseco, Inc.* 800 2,896 - ---------------------------------------------------------------
- -------------------------------------------------------------------------------- UBS Global Asset Management 17 UBS Enhanced S&P 500 Fund Portfolio of Investments - March 31, 2002 (unaudited) Common Stocks - (continued)
SECURITY DESCRIPTION SHARES MARKET VALUE - ------------------------------------------------------------- INSURANCE - (CONCLUDED) Hartford Financial Services Group, Inc. 700 $ 47,684 - ------------------------------------------------------------- Jefferson-Pilot Corp. 1,000 50,080 - ------------------------------------------------------------- John Hancock Financial Services, Inc. 2,000 76,380 - ------------------------------------------------------------- Lincoln National Corp. 1,000 50,730 - ------------------------------------------------------------- Loews Corp. 700 41,006 - ------------------------------------------------------------- Marsh & McLennan Cos., Inc. 1,200 135,288 - ------------------------------------------------------------- Metlife, Inc. 4,000 126,000 - ------------------------------------------------------------- MGIC Investment Corp. 1,500 102,645 - ------------------------------------------------------------- Progressive Corp. 400 66,648 - ------------------------------------------------------------- Torchmark Corp. 1,500 60,435 - ------------------------------------------------------------- Unum Provident Corp. 3,000 83,790 - ------------------------------------------------------------- XL Capital Ltd., Class A 300 28,005 - ------------------------------------------------------------- 2,705,304 - ------------------------------------------------------------- INTERNET SOFTWARE & SERVICES - 0.10% Yahoo!, Inc.* 4,100 75,727 - ------------------------------------------------------------- IT CONSULTING & SERVICES - 0.53% Computer Sciences Corp.* 2,400 121,800 - ------------------------------------------------------------- Electronic Data Systems Corp. 4,200 243,558 - ------------------------------------------------------------- Unisys Corp.* 1,600 20,208 - ------------------------------------------------------------- 385,566 - ------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS - 0.45% Brunswick Corp. 1,100 30,052 - ------------------------------------------------------------- Eastman Kodak Co. 4,100 127,797 - ------------------------------------------------------------- Harley-Davidson, Inc. 2,000 110,260 - ------------------------------------------------------------- Mattel, Inc. 2,800 58,352 - ------------------------------------------------------------- 326,461 - ------------------------------------------------------------- MACHINERY - 0.66% Caterpillar, Inc. 700 39,795 - ------------------------------------------------------------- Danaher Corp. 500 35,510 - ------------------------------------------------------------- Deere & Co. 1,200 54,660 - ------------------------------------------------------------- Dover Corp. 700 28,700 - ------------------------------------------------------------- Illinois Tool Works, Inc. 2,100 151,935 - ------------------------------------------------------------- Ingersoll-Rand Co., Class A 1,500 75,030 - ------------------------------------------------------------- Navistar International Corp. 500 22,150 - ------------------------------------------------------------- PACCAR, Inc. 500 36,605 - ------------------------------------------------------------- Parker-Hannifin Corp. 700 34,930 - ------------------------------------------------------------- 479,315 - -------------------------------------------------------------
SECURITY DESCRIPTION SHARES MARKET VALUE - ------------------------------------------------------------- MEDIA - 3.47% AOL Time Warner, Inc.* 30,200 $ 714,230 - ------------------------------------------------------------- Clear Channel Communications* 4,700 241,627 - ------------------------------------------------------------- Comcast Corp., Class A* 5,400 171,720 - ------------------------------------------------------------- Disney, Walt Co. 15,000 346,200 - ------------------------------------------------------------- Gannett Co., Inc. 1,900 144,590 - ------------------------------------------------------------- Interpublic Group Cos., Inc. 2,000 68,560 - ------------------------------------------------------------- McGraw-Hill Cos., Inc. 700 47,775 - ------------------------------------------------------------- Omnicom Group, Inc. 1,200 113,280 - ------------------------------------------------------------- TMP Worldwide, Inc.* 700 24,129 - ------------------------------------------------------------- Tribune Co. 1,400 63,644 - ------------------------------------------------------------- Univision Communications, Inc., Class A* 300 12,600 - ------------------------------------------------------------- Viacom, Inc., Class B* 11,493 555,916 - ------------------------------------------------------------- 2,504,271 - ------------------------------------------------------------- METALS & MINING - 0.55% Alcan, Inc. 2,100 83,223 - ------------------------------------------------------------- Alcoa, Inc. 4,800 181,152 - ------------------------------------------------------------- Barrick Gold Corp. 3,500 64,960 - ------------------------------------------------------------- Newmont Mining Corp. (Holding Co.) 1,300 35,997 - ------------------------------------------------------------- Nucor Corp. 500 32,120 - ------------------------------------------------------------- United States Steel Corp. 100 1,815 - ------------------------------------------------------------- 399,267 - ------------------------------------------------------------- MULTI-LINE RETAIL -3.79% Costco Wholesale Corp.* 3,100 123,442 - ------------------------------------------------------------- Dollar General Corp. 4,475 72,853 - ------------------------------------------------------------- Family Dollar Stores, Inc. 2,300 77,073 - ------------------------------------------------------------- Federated Department Stores, Inc.* 900 36,765 - ------------------------------------------------------------- J.C. Penney Co., Inc. (Holding Co.) 2,100 43,491 - ------------------------------------------------------------- Kohl's Corp.* 1,700 120,955 - ------------------------------------------------------------- May Department Stores Co. 3,200 111,520 - ------------------------------------------------------------- Nordstrom, Inc. 1,000 24,500 - ------------------------------------------------------------- Sears, Roebuck & Co. 1,800 92,286 - ------------------------------------------------------------- Target Corp. 4,900 211,288 - ------------------------------------------------------------- Wal-Mart Stores, Inc. 29,700 1,820,313 - ------------------------------------------------------------- 2,734,486 - ------------------------------------------------------------- MULTI-UTILITIES - 0.54% Duke Energy Corp. 5,300 200,340 - ------------------------------------------------------------- Dynegy, Inc., Class A 3,600 104,400 - -------------------------------------------------------------
- -------------------------------------------------------------------------------- 18 UBS Global Asset Management UBS Enhanced S&P 500 Fund Portfolio of Investments - March 31, 2002 (unaudited)
COMMON STOCKS - (CONTINUED) SECURITY DESCRIPTION SHARES MARKET VALUE - ------------------------------------------------------------ MULTI-UTILITIES - (CONCLUDED) Williams Cos., Inc. 3,700 $ 87,172 - ------------------------------------------------------------ 391,912 - ------------------------------------------------------------ OFFICE ELECTRONICS - 0.06% Xerox Corp. 4,100 44,075 - ------------------------------------------------------------ OIL & GAS - 6.04% Amerada Hess Corp. 800 63,488 - ------------------------------------------------------------ Anadarko Petroleum Corp. 2,891 163,168 - ------------------------------------------------------------ Apache Corp. 990 56,311 - ------------------------------------------------------------ Ashland, Inc. 900 40,959 - ------------------------------------------------------------ Burlington Resources, Inc. 1,000 40,090 - ------------------------------------------------------------ ChevronTexaco Corp. 6,810 614,739 - ------------------------------------------------------------ Conoco, Inc. 5,200 151,736 - ------------------------------------------------------------ Devon Energy Corp. 1,100 53,097 - ------------------------------------------------------------ Exxon Mobil Corp. 45,800 2,007,414 - ------------------------------------------------------------ Kerr-McGee Corp. 700 43,995 - ------------------------------------------------------------ Marathon Oil Corp. 2,300 66,240 - ------------------------------------------------------------ Occidental Petroleum Corp. 2,600 75,790 - ------------------------------------------------------------ Phillips Petroleum Co. 2,340 146,952 - ------------------------------------------------------------ Royal Dutch Petroleum Co., ADR 14,600 793,072 - ------------------------------------------------------------ Sunoco, Inc. 600 24,006 - ------------------------------------------------------------ Unocal Corp. 500 19,475 - ------------------------------------------------------------ 4,360,532 - ------------------------------------------------------------ PAPER & FOREST PRODUCTS - 0.44% Georgia-Pacific Corp. 4,100 122,795 - ------------------------------------------------------------ International Paper Co. 2,100 90,321 - ------------------------------------------------------------ MeadWestvaco Corp. 776 25,724 - ------------------------------------------------------------ Weyerhaeuser Co. 1,300 81,718 - ------------------------------------------------------------ 320,558 - ------------------------------------------------------------ PERSONAL PRODUCTS - 0.51% Avon Products, Inc. 1,400 76,048 - ------------------------------------------------------------ Gillette Co. 8,500 289,085 - ------------------------------------------------------------ 365,133 - ------------------------------------------------------------ PHARMACEUTICALS - 10.10% Abbott Laboratories 10,300 541,780 - ------------------------------------------------------------ Allergan, Inc. 900 58,185 - ------------------------------------------------------------ Bristol-Myers Squibb Co. 14,000 566,860 - ------------------------------------------------------------ Eli Lilly & Co. 8,000 609,600 - ------------------------------------------------------------ Forest Laboratories, Inc.* 1,200 98,040 - ------------------------------------------------------------ Johnson & Johnson 19,878 1,291,076 - ------------------------------------------------------------
SECURITY DESCRIPTION SHARES MARKET VALUE - ----------------------------------------------------------- PHARMACEUTICALS - (CONCLUDED) King Pharmaceuticals, Inc.* 1,000 $ 35,010 - ----------------------------------------------------------- Merck & Co., Inc. 16,700 961,586 - ----------------------------------------------------------- Pfizer, Inc. 44,550 1,770,417 - ----------------------------------------------------------- Pharmacia Corp. 10,300 464,324 - ----------------------------------------------------------- Schering-Plough Corp. 10,700 334,910 - ----------------------------------------------------------- Watson Pharmaceuticals, Inc.* 1,000 27,090 - ----------------------------------------------------------- Wyeth Pharmaceuticals 8,200 538,330 - ----------------------------------------------------------- 7,297,208 - ----------------------------------------------------------- REAL ESTATE - 0.21% Equity Office Properties Trust 2,700 80,973 - ----------------------------------------------------------- Equity Residential Properties Trust 1,800 51,732 - ----------------------------------------------------------- Plum Creek Timber Co., Inc. 700 20,797 - ----------------------------------------------------------- 153,502 - ----------------------------------------------------------- ROAD & RAIL - 0.42% Burlington Northern Santa Fe Corp. 3,800 114,684 - ----------------------------------------------------------- CSX Corp. 1,400 53,354 - ----------------------------------------------------------- Norfolk Southern Corp. 2,700 64,638 - ----------------------------------------------------------- Union Pacific Corp. 1,100 68,354 - ----------------------------------------------------------- 301,030 - ----------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 3.93% Advanced Micro Devices, Inc.* 1,500 22,065 - ----------------------------------------------------------- Altera Corp.* 1,600 34,992 - ----------------------------------------------------------- Analog Devices, Inc.* 1,600 72,064 - ----------------------------------------------------------- Applied Materials, Inc.* 5,300 287,631 - ----------------------------------------------------------- Broadcom Corp.* 1,400 50,260 - ----------------------------------------------------------- Intel Corp. 44,800 1,362,368 - ----------------------------------------------------------- KLA-Tencor Corp.* 1,200 79,800 - ----------------------------------------------------------- Linear Technology Corp. 1,600 70,752 - ----------------------------------------------------------- LSI Logic Corp.* 1,300 22,100 - ----------------------------------------------------------- Maxim Integrated Products, Inc.* 2,200 122,562 - ----------------------------------------------------------- Micron Technology, Inc.* 4,200 138,180 - ----------------------------------------------------------- Novellus Systems, Inc.* 800 43,304 - ----------------------------------------------------------- NVIDIA Corp.* 1,200 53,232 - ----------------------------------------------------------- QLogic Corp.* 1,000 49,520 - ----------------------------------------------------------- Teradyne, Inc.* 700 27,601 - ----------------------------------------------------------- Texas Instruments, Inc. 10,000 331,000 - -----------------------------------------------------------
- -------------------------------------------------------------------------------- UBS Global Asset Management 19 UBS Enhanced S&P 500 Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 2002 (UNAUDITED) COMMON STOCKS - (CONCLUDED)
SECURITY DESCRIPTION SHARES MARKET VALUE - ----------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - (CONCLUDED) Vitesse Semiconductor Corp.* 500 $ 4,900 - ----------------------------------------------------- Xilinx, Inc.* 1,600 63,776 - ----------------------------------------------------- 2,836,107 - ----------------------------------------------------- SOFTWARE - 4.71% Adobe Systems, Inc. 1,500 60,435 - ----------------------------------------------------- Citrix Systems, Inc.* 2,400 41,472 - ----------------------------------------------------- Computer Associates International, Inc. 3,800 83,182 - ----------------------------------------------------- Compuware Corp.* 2,300 29,693 - ----------------------------------------------------- Intuit, Inc.* 1,000 38,360 - ----------------------------------------------------- Mercury Interactive Corp.* 800 30,120 - ----------------------------------------------------- Microsoft Corp.* 38,400 2,315,904 - ----------------------------------------------------- Oracle Corp.* 36,000 460,800 - ----------------------------------------------------- PeopleSoft, Inc.* 1,800 65,754 - ----------------------------------------------------- Siebel Systems, Inc.* 4,300 140,223 - ----------------------------------------------------- Veritas Software Co.* 3,078 134,909 - ----------------------------------------------------- 3,400,852 - ----------------------------------------------------- SPECIALTY RETAIL - 2.61% AutoZone, Inc.* 1,600 110,160 - ----------------------------------------------------- Bed, Bath & Beyond, Inc.* 2,100 70,875 - ----------------------------------------------------- Best Buy Co., Inc.* 1,600 126,720 - ----------------------------------------------------- Circuit City Stores-Circuit City Group 1,300 23,452 - ----------------------------------------------------- Gap, Inc. 6,000 90,240 - ----------------------------------------------------- Home Depot, Inc. 17,800 865,258 - ----------------------------------------------------- Limited, Inc. 2,400 42,960 - -----------------------------------------------------
SECURITY DESCRIPTION SHARES MARKET VALUE - ----------------------------------------------------- SPECIALTY RETAIL - (CONCLUDED) Lowe's Cos., Inc. 5,400 $ 234,846 - ----------------------------------------------------- Office Depot, Inc.* 2,200 43,670 - ----------------------------------------------------- RadioShack Corp. 1,100 33,044 - ----------------------------------------------------- Sherwin-Williams Co. 1,300 37,024 - ----------------------------------------------------- Staples, Inc.* 4,500 89,865 - ----------------------------------------------------- TJX Cos., Inc. 3,000 120,030 - ----------------------------------------------------- 1,888,144 - ----------------------------------------------------- TEXTILES & APPAREL - 0.17% Jones Apparel Group, Inc.* 2,000 69,900 - ----------------------------------------------------- Liz Claiborne, Inc. 600 17,016 - ----------------------------------------------------- Nike, Inc., Class B 600 36,006 - ----------------------------------------------------- 122,922 - ----------------------------------------------------- TOBACCO - 1.20% Philip Morris Cos., Inc. 15,500 816,385 - ----------------------------------------------------- UST, Inc. 1,300 50,609 - ----------------------------------------------------- 866,994 - ----------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES - 0.25% AT&T Wireless Services, Inc.* 12,392 110,908 - ----------------------------------------------------- Sprint Corp. (PCS Group)* 6,500 66,885 - ----------------------------------------------------- 177,793 - ----------------------------------------------------- Total Common Stocks (cost-$72,115,292) 71,501,762 - ----------------------------------------------------- TRACKING STOCK - 0.84% SPDR Trust Series 1 $570,270) 5,300 606,956 - -----------------------------------------------------
PRINCIPAL AMOUNT SECURITY MATURITY INTEREST MARKET (000) DESCRIPTION DATE RATE VALUE - ---------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATION - 0.01% $8 Federal Home Loan Mortgage Corp. (cost - $8,000) 04/01/02 1.70%@ $ 8,000 - ---------------------------------------------------------------------------------------- Total Investments (cost-$72,693,562)-99.85% 72,116,718 - ---------------------------------------------------------------------------------------- Other assets in excess of liabilities- 0.15% 109,781 - ---------------------------------------------------------------------------------------- Net Assets-100.00% $72,226,499 - ----------------------------------------------------------------------------------------
* Non-income producing security. ADR American Depositary Receipt @ Interest rate shown is the discount rate at date of purchase. See accompanying notes to financial statements - -------------------------------------------------------------------------------- 20 UBS Global Asset Management UBS Enhanced Nasdaq-100 Fund Portfolio of Investments - March 31, 2002 (unaudited)
COMMON STOCKS 99.86% SECURITY DESCRIPTION SHARES MARKET VALUE - ---------------------------------------------------------- BIOTECHNOLOGY - 12.85% Abgenix, Inc.* 5,100 $ 96,339 - ---------------------------------------------------------- Amgen, Inc.* 24,500 1,462,160 - ---------------------------------------------------------- Biogen, Inc.*(1) 9,800 480,788 - ---------------------------------------------------------- Cephalon, Inc.* 2,700 170,100 - ---------------------------------------------------------- Chiron Corp.*(1) 13,300 610,337 - ---------------------------------------------------------- Genzyme Corp.* 13,200 576,444 - ---------------------------------------------------------- Gilead Sciences, Inc.* 8,300 298,717 - ---------------------------------------------------------- Human Genome Sciences, Inc.* 6,600 143,814 - ---------------------------------------------------------- ICOS Corp.* 2,200 101,178 - ---------------------------------------------------------- IDEC Pharmaceuticals Corp.*(1) 8,500 546,550 - ---------------------------------------------------------- Immunex Corp.* 38,400 1,161,984 - ---------------------------------------------------------- Invitrogen Corp.*(1) 2,400 82,368 - ---------------------------------------------------------- Medimmune, Inc.* 12,900 507,357 - ---------------------------------------------------------- Millennium Pharmaceuticals, Inc.* 15,400 343,574 - ---------------------------------------------------------- Protein Design Labs, Inc.* 3,600 61,668 - ---------------------------------------------------------- Sepracor, Inc.* 3,400 65,960 - ---------------------------------------------------------- 6,709,338 - ---------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES - 5.96% Apollo Group, Inc., Class A* 5,300 283,815 - ---------------------------------------------------------- Cintas Corp. 10,100 503,586 - ---------------------------------------------------------- Concord EFS, Inc.* 29,700 987,525 - ---------------------------------------------------------- Fiserv, Inc.* 12,900 593,271 - ---------------------------------------------------------- Paychex, Inc. 18,750 744,375 - ---------------------------------------------------------- 3,112,572 - ---------------------------------------------------------- COMMUNICATIONS EQUIPMENT - 10.74% ADC Telecommunications, Inc.* 39,300 159,951 - ---------------------------------------------------------- Brocade Communications Systems, Inc.* 11,700 315,900 - ---------------------------------------------------------- CIENA Corp.* 18,000 162,000 - ---------------------------------------------------------- Cisco Systems, Inc.* 131,800 2,231,374 - ---------------------------------------------------------- Comverse Technology, Inc.* 10,400 131,768 - ---------------------------------------------------------- JDS Uniphase Corp.* 66,900 394,041 - ---------------------------------------------------------- Juniper Networks, Inc.* 9,900 124,938 - ---------------------------------------------------------- Qualcomm, Inc.* 46,700 1,757,788 - ---------------------------------------------------------- Telefonaktiebolaget LM Ericsson, ADR 50,500 211,090 - ---------------------------------------------------------- Tellabs, Inc.* 11,600 121,452 - ---------------------------------------------------------- 5,610,302 - ----------------------------------------------------------
SECURITY DESCRIPTION SHARES MARKET VALUE - -------------------------------------------------------- COMPUTERS & PERIPHERALS - 5.41% Apple Computer, Inc.* 23,700 $ 560,979 - -------------------------------------------------------- Dell Computer Corp.* 49,400 1,289,834 - -------------------------------------------------------- Network Appliance, Inc.* 17,400 354,612 - -------------------------------------------------------- Sun Microsystems, Inc.* 70,600 622,692 - -------------------------------------------------------- 2,828,117 - -------------------------------------------------------- CONTAINERS & PACKAGING - 0.40% Smurfit-Stone Container Corp.* 12,200 209,108 - -------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES - 0.69% WorldCom, Inc. - WorldCom Group 53,400 359,916 - -------------------------------------------------------- ELECTRICAL EQUIPMENT - 0.30% Molex, Inc. 4,500 156,015 - -------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.61% Flextronics International Ltd. 28,400 518,300 - -------------------------------------------------------- Sanmina-SCI Corp.* 27,600 324,300 - -------------------------------------------------------- 842,600 - -------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES - 1.19% Biomet, Inc. 16,600 449,196 - -------------------------------------------------------- Cytyc Corp.* 6,300 169,596 - -------------------------------------------------------- 618,792 - -------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES - 0.36% Express Scripts, Inc.* 3,300 190,047 - -------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE - 1.28% Starbucks Corp.* 28,900 668,457 - -------------------------------------------------------- INTERNET & CATALOG RETAIL - 1.51% Amazon.com, Inc.*(1) 13,300 190,190 - -------------------------------------------------------- eBay, Inc.* 10,600 600,384 - -------------------------------------------------------- 790,574 - -------------------------------------------------------- INTERNET SOFTWARE & SERVICES - 1.71% Check Point Software Technologies Ltd.* 11,600 352,640 - -------------------------------------------------------- VeriSign, Inc.* 10,602 286,254 - -------------------------------------------------------- Yahoo!, Inc.* 13,800 254,886 - -------------------------------------------------------- 893,780 - --------------------------------------------------------
- -------------------------------------------------------------------------------- UBS Global Asset Management 21 UBS Enhanced Nasdaq-100 Fund Portfolio of Investments - March 31, 2002 (unaudited)
COMMON STOCKS - (CONCLUDED) SECURITY DESCRIPTION SHARES MARKET VALUE - -------------------------------------------------------- MACHINERY - 0.45% PACCAR, Inc. 3,200 $ 234,272 - -------------------------------------------------------- MEDIA - 4.78% Adelphia Communications Corp., Class A 10,600 157,940 - -------------------------------------------------------- Charter Communications, Inc., Class A* 14,300 161,447 - -------------------------------------------------------- Comcast Corp., Class A* 22,400 712,320 - -------------------------------------------------------- Echostar Communications Corp.* 12,400 351,168 - -------------------------------------------------------- Gemstar-TV Guide International, Inc.* 21,600 319,464 - -------------------------------------------------------- TMP Worldwide, Inc.* 6,600 227,502 - -------------------------------------------------------- USA Networks, Inc.* 17,900 568,683 - -------------------------------------------------------- 2,498,524 - -------------------------------------------------------- MULTI-LINE RETAIL - 0.97% Costco Wholesale Corp.* 12,700 505,714 - -------------------------------------------------------- PHARMACEUTICALS - 0.46% Andrx Group* 4,200 159,348 - -------------------------------------------------------- ImClone Systems, Inc.* 3,200 78,816 - -------------------------------------------------------- 238,164 - -------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 21.55% Altera Corp.* 25,038 547,581 - -------------------------------------------------------- Applied Materials, Inc.* 20,400 1,107,108 - -------------------------------------------------------- Applied Micro Circuits Corp.* 13,500 108,000 - -------------------------------------------------------- Atmel Corp.* 15,700 159,198 - -------------------------------------------------------- Broadcom Corp.*(1) 7,900 283,610 - -------------------------------------------------------- Conexant Systems, Inc.* 11,200 134,960 - -------------------------------------------------------- Integrated Device Technology, Inc.* 3,900 129,636 - -------------------------------------------------------- Intel Corp. 117,600 3,576,216 - -------------------------------------------------------- KLA-Tencor Corp.* 10,400 691,600 - -------------------------------------------------------- Linear Technology Corp. 21,000 928,620 - -------------------------------------------------------- Maxim Integrated Products, Inc.* 22,200 1,236,762 - -------------------------------------------------------- Microchip Technology, Inc.* 4,650 194,510 - -------------------------------------------------------- Novellus Systems, Inc.* 6,300 341,019 - -------------------------------------------------------- NVIDIA Corp.* 8,300 368,188 - -------------------------------------------------------- PMC-Sierra, Inc.* 8,500 138,380 - -------------------------------------------------------- QLogic Corp.* 5,100 252,552 - --------------------------------------------------------
SECURITY DESCRIPTION SHARES MARKET VALUE - -------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - (CONCLUDED) RF Micro Devices, Inc.* 9,200 $ 164,680 - -------------------------------------------------------- Vitesse Semiconductor Corp.* 6,800 66,640 - -------------------------------------------------------- Xilinx, Inc.* 20,800 829,088 - -------------------------------------------------------- 11,258,348 - -------------------------------------------------------- SOFTWARE - 24.44% Adobe Systems, Inc. 10,600 427,074 - -------------------------------------------------------- BEA Systems, Inc.* 18,100 248,151 - -------------------------------------------------------- Citrix Systems, Inc.* 14,200 245,376 - -------------------------------------------------------- Compuware Corp.* 13,500 174,285 - -------------------------------------------------------- Electronic Arts, Inc.* 6,900 419,520 - -------------------------------------------------------- I2 Technologies, Inc.* 20,200 102,212 - -------------------------------------------------------- Intuit, Inc.* 14,000 537,040 - -------------------------------------------------------- Mercury Interactive Corp.* 5,200 195,780 - -------------------------------------------------------- Microsoft Corp.* 93,600 5,645,016 - -------------------------------------------------------- Oracle Corp.* 118,100 1,511,680 - -------------------------------------------------------- PeopleSoft, Inc.* 23,000 840,190 - -------------------------------------------------------- Rational Software Corp.* 10,100 159,883 - -------------------------------------------------------- Siebel Systems, Inc.* 28,900 942,429 - -------------------------------------------------------- Symantec Corp.* 6,500 267,865 - -------------------------------------------------------- Synopsys, Inc.* 2,700 148,932 - -------------------------------------------------------- Veritas Software Co.* 20,500 898,515 - -------------------------------------------------------- 12,763,948 - -------------------------------------------------------- SPECIALTY RETAIL - 2.26% Bed, Bath & Beyond, Inc.* 19,300 651,375 - -------------------------------------------------------- CDW Computer Centers, Inc.* 3,900 196,326 - -------------------------------------------------------- Staples, Inc.* 16,700 333,499 - -------------------------------------------------------- 1,181,200 - -------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES - 0.94% Nextel Communications, Inc.* 44,900 241,562 - -------------------------------------------------------- PanAmSat Corp.* 10,800 246,780 - -------------------------------------------------------- 488,342 - -------------------------------------------------------- Total Common Stocks (Cost - $92,548,881) - -------------------------------------------------------- 52,158,130 - --------------------------------------------------------
- -------------------------------------------------------------------------------- 22 UBS Global Asset Management UBS Enhanced Nasdaq-100 Fund Portfolio of Investments - March 31, 2002 (Unaudited)
SECURITY DESCRIPTION SHARES MARKET VALUE - ---------------------------------------------------- TRACKING STOCK - 0.30% Nasdaq-100 Index Tracking Stock (cost - $ 160,842) 4,400 $ 158,664 - ---------------------------------------------------- Total Investments (cost - $92,709,723) - 100.16% 52,316,794 - ---------------------------------------------------- Liabilities in excess of other assets - (0.16)% (84,438) - ---------------------------------------------------- Net Assets - 100.00% $52,232,356 - ----------------------------------------------------
* Non-income producing security. ADR American Depositary Receipt (1) Security, or portion thereof, was on loan at March 31, 2002. See accompanying notes to financial statements - -------------------------------------------------------------------------------- UBS Global Asset Management 23 UBS Securities Trust Statement of Assets and Liabilities - March 31, 2002 (unaudited)
ENHANCED ENHANCED S&P 500 NASDAQ-100 FUND FUND - ---------------------------------------------------------------------------------------------- ASSETS Investments in securities, at value (cost-$72,693,562 and $92,709,723, respectively) $72,116,718 $52,316,794 - ---------------------------------------------------------------------------------------------- Investments of cash collateral received for securities loaned, at value (cost-$0 and $1,971,151, respectively) - 1,971,151 - ---------------------------------------------------------------------------------------------- Cash 46,227 - - ---------------------------------------------------------------------------------------------- Receivable for investments sold - 151,366 - ---------------------------------------------------------------------------------------------- Receivable for shares of beneficial interest sold 208,714 10,132 - ---------------------------------------------------------------------------------------------- Dividends and interest receivable 76,497 3,734 - ---------------------------------------------------------------------------------------------- Other assets 124,262 77,675 - ---------------------------------------------------------------------------------------------- Total assets 72,572,418 54,530,852 - ---------------------------------------------------------------------------------------------- LIABILITIES Payable for shares of beneficial interest repurchased 130,751 85,269 - ---------------------------------------------------------------------------------------------- Payable for investments purchased 114,720 - - ---------------------------------------------------------------------------------------------- Payable for cash collateral for securities loaned - 1,971,151 - ---------------------------------------------------------------------------------------------- Payable to custodian - 90,582 - ---------------------------------------------------------------------------------------------- Payable to affiliates 39,836 52,917 - ---------------------------------------------------------------------------------------------- Accrued expenses and other liabilities 60,612 98,577 - ---------------------------------------------------------------------------------------------- Total liabilities 345,919 2,298,496 - ---------------------------------------------------------------------------------------------- NET ASSETS Beneficial interest -$0.001 par value (unlimited amount authorized) 81,171,426 124,541,333 - ---------------------------------------------------------------------------------------------- Accumulated undistributed (distributions in excess of) net investment income (loss) 120,379 (530,419) - ---------------------------------------------------------------------------------------------- Accumulated net realized losses from investment transactions (8,488,462) (31,385,629) - ---------------------------------------------------------------------------------------------- Net unrealized depreciation of investments (576,844) (40,392,929) - ---------------------------------------------------------------------------------------------- Net assets $72,226,499 $52,232,356 - ----------------------------------------------------------------------------------------------
See accompanying notes to financial statements - -------------------------------------------------------------------------------- 24 UBS Global Asset Management UBS Securities Trust Statement of Assets and Liabilities - March 31, 2002 (unaudited)
ENHANCED ENHANCED S&P 500 NASDAQ-100 FUND FUND - ---------------------------------------------------------------------------------------------- CLASS A: Net assets $15,709,537 $15,050,151 - ---------------------------------------------------------------------------------------------- Shares outstanding 2,022,589 3,750,696 - ---------------------------------------------------------------------------------------------- Net asset value per share $ 7.77 $ 4.01 - ---------------------------------------------------------------------------------------------- Maximum offering price per share (net asset value plus sales charge of 3.00% and 5.50% of offering price, respectively) $ 8.01 $ 4.24 - ---------------------------------------------------------------------------------------------- CLASS B: Net assets $13,062,039 $18,814,420 - ---------------------------------------------------------------------------------------------- Shares outstanding 1,688,145 4,758,397 - ---------------------------------------------------------------------------------------------- Net asset value and offering price per share $ 7.74 $ 3.95 - ---------------------------------------------------------------------------------------------- CLASS C: Net assets $11,496,815 $17,098,560 - ---------------------------------------------------------------------------------------------- Shares outstanding 1,487,728 4,325,188 - ---------------------------------------------------------------------------------------------- Net asset value per share $ 7.73 $ 3.95 - ---------------------------------------------------------------------------------------------- Maximum offering price per share (net asset value plus sales charge of 1.00% of offering price) $ 7.81 $ 3.99 - ---------------------------------------------------------------------------------------------- CLASS Y: Net assets $31,958,108 $ 1,269,225 - ---------------------------------------------------------------------------------------------- Shares outstanding 4,100,545 314,854 - ---------------------------------------------------------------------------------------------- Net asset value, offering price and redemption value per share $ 7.79 $ 4.03 - ----------------------------------------------------------------------------------------------
See accompanying notes to financial statements - -------------------------------------------------------------------------------- UBS Global Asset Management 25 UBS Securities Trust Statement of Operations
FOR THE SIX MONTHS ENDED MARCH 31, 2002 (UNAUDITED) ------------------------------- ENHANCED ENHANCED S&P 500 NASDAQ-100 FUND FUND - ----------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends (net of foreign withholding tax of $407 and $0, respectively) $ 490,060 $ 17,340 - ----------------------------------------------------------------------------------------------- Interest 1,613 1,652 - ----------------------------------------------------------------------------------------------- 491,673 18,992 - ----------------------------------------------------------------------------------------------- EXPENSES: Investment advisory and administration fees 138,168 205,552 - ----------------------------------------------------------------------------------------------- Service fees-Class A 20,116 19,709 - ----------------------------------------------------------------------------------------------- Service and distribution fees-Class B 39,006 99,798 - ----------------------------------------------------------------------------------------------- Service and distribution fees-Class C 34,135 88,317 - ----------------------------------------------------------------------------------------------- Transfer agency and related services fees 21,672 64,455 - ----------------------------------------------------------------------------------------------- Federal and state registration 20,751 29,677 - ----------------------------------------------------------------------------------------------- Custody and accounting 20,725 16,444 - ----------------------------------------------------------------------------------------------- Professional fees 19,441 23,148 - ----------------------------------------------------------------------------------------------- Reports and notices to shareholders 10,117 39,289 - ----------------------------------------------------------------------------------------------- Trustees' fees 322 2,181 - ----------------------------------------------------------------------------------------------- Other expenses 3,631 5,980 - ----------------------------------------------------------------------------------------------- 328,084 594,550 - ----------------------------------------------------------------------------------------------- Fee recoupment to (waiver by) investment advisor 8,004 (104,327) - ----------------------------------------------------------------------------------------------- Net expenses 336,088 490,223 - ----------------------------------------------------------------------------------------------- Net investment income (loss) 155,585 (471,231) - ----------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT ACTIVITIES: Net realized losses from investment transactions (3,994,994) (11,212,311) - ----------------------------------------------------------------------------------------------- Net change in unrealized appreciation/depreciation of investments 9,855,868 21,896,878 - ----------------------------------------------------------------------------------------------- Net realized and unrealized gains from investment activities 5,860,874 10,684,567 - ----------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $6,016,459 $10,213,336 - -----------------------------------------------------------------------------------------------
See accompanying notes to financial statements - -------------------------------------------------------------------------------- 26 UBS Global Asset Management UBS Securities Trust Statement of Changes in Net Assets
ENHANCED S&P 500 FUND ------------------------------- FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED MARCH 31, 2002 SEPTEMBER 30, (unaudited) 2001 - --------------------------------------------------------------------------------------- FROM OPERATIONS: Net investment income $ 155,585 $ 133,853 - --------------------------------------------------------------------------------------- Net realized losses from investment transactions (3,994,994) (3,866,729) - --------------------------------------------------------------------------------------- Net change in unrealized appreciation/depreciation of investments 9,855,868 (9,935,661) - --------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 6,016,459 (13,668,537) - --------------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income-Class A (26,627) (20,389) - --------------------------------------------------------------------------------------- Net investment income-Class B - - - --------------------------------------------------------------------------------------- Net investment income-Class C - (6,963) - --------------------------------------------------------------------------------------- Net investment income-Class Y (114,534) (3,106) - --------------------------------------------------------------------------------------- Net realized gains from investment transactions-Class A - (24,204) - --------------------------------------------------------------------------------------- Net realized gains from investment transactions-Class B - (19,402) - --------------------------------------------------------------------------------------- Net realized gains from investment transactions-Class C - (14,559) - --------------------------------------------------------------------------------------- Net realized gains from investment transactions-Class Y - (2,391) - --------------------------------------------------------------------------------------- (141,161) (91,014) - --------------------------------------------------------------------------------------- FROM BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from the sale of shares 26,038,803 73,057,573 - --------------------------------------------------------------------------------------- Cost of shares repurchased (13,980,987) (25,736,789) - --------------------------------------------------------------------------------------- Proceeds from dividends reinvested 140,078 91,014 - --------------------------------------------------------------------------------------- Net increase in net assets from beneficial interest transactions 12,197,894 47,411,798 - --------------------------------------------------------------------------------------- Net increase in net assets 18,073,192 33,652,247 - --------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 54,153,307 20,501,060 - --------------------------------------------------------------------------------------- End of period $72,226,499 $54,153,307 - --------------------------------------------------------------------------------------- Accumulated undistributed net investment income $ 120,379 $ 105,955 - ---------------------------------------------------------------------------------------
See accompanying notes to financial statements - -------------------------------------------------------------------------------- UBS Global Asset Management 27 UBS Securities Trust Statement of Changes in Net Assets
ENHANCED NASDAQ-100 FUND -------------------------------- FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED MARCH 31, 2002 SEPTEMBER 30, (UNAUDITED) 2001 - ----------------------------------------------------------------------------------------- FROM OPERATIONS: Net investment loss $ (471,231) $(1,271,533) - ----------------------------------------------------------------------------------------- Net realized losses from investment transactions (11,212,311) (20,035,571) - ----------------------------------------------------------------------------------------- Net change in unrealized appreciation/depreciation of investments 21,896,878 (59,896,534) - ----------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 10,213,336 (81,203,638) - ----------------------------------------------------------------------------------------- FROM BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from the sale of shares 9,078,106 86,132,455 - ----------------------------------------------------------------------------------------- Cost of shares repurchased (10,359,323) (50,395,450) - ----------------------------------------------------------------------------------------- Net increase (decrease) in net assets from beneficial interest transactions (1,281,217) 35,737,005 - ----------------------------------------------------------------------------------------- Net increase (decrease) in net assets 8,932,119 (45,466,633) - ----------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 43,300,237 88,766,870 - ----------------------------------------------------------------------------------------- End of period $52,232,356 $43,300,237 - -----------------------------------------------------------------------------------------
See accompanying notes to financial statements - -------------------------------------------------------------------------------- 28 UBS Global Asset Management (This page has been left blank intentionally.) - -------------------------------------------------------------------------------- UBS Global Asset Management 29 UBS Securities Trust Notes to Financial Statements (unaudited) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES UBS Enhanced S&P 500 Fund is a diversified series of UBS Securities Trust ("Trust") and UBS Enhanced Nasdaq-100 Fund is a non-diversified series of the Trust. The Trust is a professionally managed, open-end management investment company organized as a Delaware business trust. The UBS Enhanced S&P 500 Fund and UBS Enhanced Nasdaq-100 Fund (collectively, the "Funds") investment objective is to seek higher total return over the long term than the S&P 500 Index and the Nasdaq 100 Index, respectively. Prior to the commencement of operations on April 26, 2000, the Funds had no activity other than the sale of total 5,000 shares of Class A, Class B, Class C and Class Y to UBS Global Asset Management (US) Inc. ("UBS Global AM," formerly known as Brinson Advisors, Inc.), the investment advisor, administrator and distributor of the Funds. UBS Global AM is an indirect wholly owned asset management subsidiary of UBS AG, an internationally diversified organization with headquarters in Zurich, Switzerland and operations in many areas of the financial services industry. Currently, each Fund offers Class A, Class B, Class C and Class Y shares. Each class represents interests in the same assets of the applicable 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 each class has exclusive voting rights with respect to its service and/or distribution plan, if any. Class Y shares have no service or distribution plan. The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires the Fund's management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies: VALUATION OF INVESTMENTS--Each Fund calculates its net asset value based on the current market value for its portfolio securities. The Funds normally obtain market values for their securities from independent pricing sources. Independent pricing sources may use reported last sale prices, current market quotations or valuations from computerized "matrix" systems that derive values based on comparable securities. Securities traded in the over-the-counter ("OTC") market and listed on The Nasdaq Stock Market, Inc. ("Nasdaq") normally are valued at the last sale price on Nasdaq prior to valuation. Other OTC securities are valued at the last bid price - -------------------------------------------------------------------------------- 30 UBS Global Asset Management UBS Securities Trust Notes to Financial Statements (unaudited) available prior to valuation. Securities which are listed on U.S. and foreign stock exchanges normally are valued at the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by UBS Global 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 Trust's board of trustees (the "Board"). The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity, unless the Board determines that this does not represent fair value. REPURCHASE AGREEMENTS--Each Fund's custodian takes possession of the collateral pledged for investments in repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to ensure that the value, including accrued interest, is at least equal to the repurchase price. In the event of default of the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. Each Fund may participate in joint repurchase agreement transactions with other funds managed, advised or sub-advised by UBS Global AM. INVESTMENT TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions are calculated using the identified cost method. Dividend income is recorded on the ex-dividend date ("ex-date"). Interest income is recorded on an accrual basis. Discounts are accreted and premiums are amortized as adjustments to interest income and the identified cost of investments. Income, expenses (excluding class-specific expenses) and realized/unrealized gains/losses are allocated proportionately to each class of shares based upon the relative net asset value of outstanding shares (or the value of dividend-eligible shares, as appropriate) of each class at the beginning of the day (after adjusting for current capital share activity of the respective classes). Class-specific expenses are charged directly to the applicable class of shares. DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are recorded on the ex-date. The amounts of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these - -------------------------------------------------------------------------------- UBS Global Asset Management 31 UBS Securities Trust Notes to Financial Statements (unaudited) differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. INVESTMENT ADVISOR AND ADMINISTRATOR The Board has approved an Investment Advisory and Administration Contract ("Advisory Contract") with UBS Global AM, under which UBS Global AM serves as investment advisor and administrator of the Funds. In accordance with the Advisory Contract, the Funds pay UBS Global AM an investment advisory and administration fee, which is accrued daily and paid monthly, at an annual rate of 0.40% of average daily net assets for Enhanced S&P 500 Fund and 0.75% of average daily net assets for Enhanced Nasdaq-100 Fund. UBS Global AM pays DSI International Management, Inc. ("DSI"), an indirect wholly owned asset management subsidiary of UBS AG, to serve as each Fund's sub-advisor. UBS Global AM (not the Funds) pays DSI a fee, accrued daily and paid monthly, at an annual rate of 0.20% of average daily net assets for Enhanced S&P 500 Fund and 0.35% of average daily net assets for Enhanced Nasdaq-100 Fund. At March 31, 2002, Enhanced S&P 500 Fund and Enhanced Nasdaq-100 Fund owed UBS Global AM $24,587 and $33,753 in investment advisory and administration fees, respectively. For the six months ended March 31, 2002, UBS Global AM has voluntarily undertaken to waive a portion of advisory fees and reimburse a portion of other expenses when necessary to maintain Enhanced S&P 500 Fund's and Enhanced Nasdaq-100 Fund's total annual operating expenses at a level not to exceed 0.98%, 1.38%, 1.38% and 0.73%, and 1.28%, 2.03%, 2.03% and 1.03% of each Fund's average daily net assets for Class A, Class B, Class C and Class Y shares, respectively. At March 31, 2002 UBS Global AM owed Enhanced S&P 500 Fund and Enhanced Nasdaq-100 Fund $1,695 and $15,172 respectively, for fee waivers under the above agreement. Each fund will reimburse UBS Global AM for any such payments during a three-year period to the extent that operating expenses are otherwise below the expense caps. For the six months ended March 31, 2002, the Funds did not pay any brokerage commissions to UBS PaineWebber, Inc. ("UBS PaineWebberSM*"), an indirect wholly owned subsidiary of UBS AG, or any other affiliated broker-dealer for transactions executed on behalf of the Funds. - -------------------------------------------------------------------------------- *UBS PaineWebber is a service mark of UBS AG. - -------------------------------------------------------------------------------- 32 UBS Global Asset Management UBS Securities Trust Notes to Financial Statements (unaudited) DISTRIBUTION PLANS UBS Global AM is the principal underwriter of each Fund's shares. Under separate plans of service and/or distribution pertaining to Class A, Class B and Class C shares, the Funds pay UBS Global AM monthly service fees at the annual rate of 0.25% of the average daily net assets of Class A, Class B and Class C shares, respectively, and monthly distribution fees (1) at the annual rate of 0.40% of average daily net assets on Class B and Class C shares for Enhanced S&P 500 Fund and (2) at the annual rate of 0.75% of average daily net assets on Class B and Class C shares for Enhanced Nasdaq-100 Fund. At March 31, 2002, the Enhanced S&P 500 Fund and Enhanced Nasdaq-100 Fund owed UBS Global AM $16,944 and $34,239 in service and distribution fees, respectively. UBS Global AM also receives the proceeds of the initial sales charges paid upon the purchase of Class A and Class C shares and the contingent deferred sales charges paid by shareholders upon certain redemptions of Class A, Class B and Class C shares. UBS Global AM has informed each Fund that for the six months ended March 31, 2002, it earned $26,204 and $87,478 in sales charges from the Enhanced S&P 500 Fund and Enhanced Nasdaq-100 Fund, respectively. TRANSFER AGENCY AND RELATED SERVICES FEES UBS PaineWebber provides transfer agency related services to each Fund pursuant to a delegation of authority from PFPC, Inc. ("PFPC"), each Fund's transfer agent, and is compensated for these services by PFPC not the Funds. For the six months ended March 31, 2002, UBS PaineWebber received from PFPC not the Funds, approximately 54% and 53% of the total transfer agency and related services fees collected by PFPC from the Enhanced S&P 500 Fund and Enhanced Nasdaq-100 Fund, respectively. SECURITIES LENDING Each Fund may lend securities up to 331|M/3% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, cash equivalents or U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. Each Fund will regain record ownership of loaned securities to exercise certain beneficial rights; however, each Fund may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower fail financially. Each Fund receives compensation, which is included in interest income, for lending its securities from interest earned on the cash, cash equivalents or U.S. government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. For the six months ended - -------------------------------------------------------------------------------- UBS Global Asset Management 33 UBS Securities Trust Notes to Financial Statements (unaudited) March 31, 2002, Enhanced Nasdaq-100 Fund earned $3,198 for lending securities. The Fund's lending agent is UBS PaineWebber, which earned $1,103 in compensation from the Fund in that capacity for the six months ended March 31, 2002. At March 31, 2002 Enhanced Nasdaq-100 Fund owed UBS PaineWebber $97 in compensation. For the six months ended March 31, 2002, Enhanced S&P 500 Fund did not participate in the securities lending program. At March 31, 2002, Enhanced Nasdaq-100 Fund had securities on loan having a market value of $1,888,464. The Enhanced Nasdaq-100 Fund's custodian held cash and/or equivalents having an aggregate value of $1,971,151 as collateral for portfolio securities loaned which was invested in the following money market funds:
NUMBER OF MARKET SHARES VALUE - -------------------------------------------------------------------------------------------------- 17 AIM Liquid Assets Portfolio $ 17 - -------------------------------------------------------------------------------------------------- 1,971,134 UBS Private Money Market Fund LLC 1,971,134 - -------------------------------------------------------------------------------------------------- Total investments of cash collateral received for securities loaned (cost--$1,971,151) $1,971,151 - --------------------------------------------------------------------------------------------------
BANK LINE OF CREDIT Each Fund participates with other funds managed, advised or sub-advised by UBS Global AM in a $300 million committed credit facility ("Facility") with UBS AG, Stamford Branch, to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of each Fund at the request of the shareholders or other temporary or emergency purposes. Under Facility arrangement, each Fund has agreed to pay commitment fees, pro rata, based on the relative asset size of the funds in the Facility. Interest is charged to each Fund at rates based on prevailing market rates in effect at the time of borrowings. For the six months ended March 31, 2002, the Funds did not borrow under the Facility. INVESTMENTS IN SECURITIES For federal income tax purposes, the cost of securities owned at March 31, 2002 was substantially the same as the cost of securities for financial statement purposes. At March 31, 2002, the components of net unrealized depreciation of investments were as follows: - -------------------------------------------------------------------------------- 34 UBS Global Asset Management UBS Securities Trust Notes to Financial Statements (unaudited)
ENHANCED ENHANCED S&P 500 NASDAQ-100 FUND FUND - --------------------------------------------------------------------------------------------- Gross appreciation (investments having an excess of value over cost) $5,827,834 $ 3,183,391 - --------------------------------------------------------------------------------------------- Gross depreciation (investments having an excess of cost over value) (6,404,678) (43,576,320) - --------------------------------------------------------------------------------------------- Net unrealized depreciation of investments $ (576,844) $ (40,392,929) - ---------------------------------------------------------------------------------------------
For the six months ended March 31, 2002, aggregate purchases and sales of portfolio securities, excluding short-term securities, were as follows:
ENHANCED ENHANCED S&P 500 NASDAQ-100 FUND FUND - ------------------------------------------- Purchases $42,539,416 $7,506,806 - ------------------------------------------- Sales $30,354,434 $9,264,827 - -------------------------------------------
FEDERAL TAX STATUS Each Fund intends to distribute substantially all of its taxable income and to comply with the other requirements of the Internal Revenue Code applicable to regulated investment companies. Accordingly, no provision for federal income taxes is required. In addition, by distributing during each calendar year, substantially all of its net investment income, capital gains and certain other amounts, if any, each Fund intends not to be subject to federal excise tax. At September 30, 2001, the Enhanced S&P 500 Fund and the Enhanced Nasdaq-100 Fund had net capital loss carryforwards of $15,413 and $365,067, respectively, which will expire by September 30, 2009. These losses are available as a reduction, to the extent provided in the regulations, of future net realized capital gains. In accordance with the U.S. Treasury regulations, the Enhanced S&P 500 Fund and the Enhanced Nasdaq-100 Fund have elected to defer $1,382,941 and $16,737,164, respectively, of net capital losses arising after October 31, 2000. Such losses are treated for tax purposes as arising on October 31, 2001. - -------------------------------------------------------------------------------- UBS Global Asset Management 35 UBS Securities Trust 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 --------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------- ENHANCED S&P 500 FUND FOR THE SIX MONTHS ENDED MARCH 31, 2002: - ------------------------------------------------------------------------------------------------- Shares sold 816,240 $ 6,249,608 762,907 $ 5,817,282 - ------------------------------------------------------------------------------------------------- Shares repurchased (1,001,893) (7,623,095) (429,538) (3,283,445) - ------------------------------------------------------------------------------------------------- Shares converted from Class B to Class A 7,756 33,722 (7,865) (33,722) - ------------------------------------------------------------------------------------------------- Dividends reinvested 3,326 25,544 - - - ------------------------------------------------------------------------------------------------- Net increase (decrease) (174,571) $(1,314,221) 325,504 $ 2,500,115 - ------------------------------------------------------------------------------------------------- ENHANCED S&P 500 FUND FOR THE YEAR ENDED SEPTEMBER 30, 2001: - ------------------------------------------------------------------------------------------------- Shares sold 3,071,524 $26,239,074 1,192,668 $10,248,155 - ------------------------------------------------------------------------------------------------- Shares repurchased (1,726,667) (14,642,089) (630,346) (5,260,201) - ------------------------------------------------------------------------------------------------- Shares converted from Class B to Class A 997 7,643 (1,000) (7,643) - ------------------------------------------------------------------------------------------------- Dividends reinvested 5,073 46,203 1,970 18,104 - ------------------------------------------------------------------------------------------------- Net increase 1,350,927 $11,650,831 563,292 $ 4,998,415 - ------------------------------------------------------------------------------------------------- ENHANCED NASDAQ-100 FUND FOR THE SIX MONTHS ENDED MARCH 31, 2002: - ------------------------------------------------------------------------------------------------- Shares sold 1,023,314 $ 4,295,001 465,853 $ 1,895,798 - ------------------------------------------------------------------------------------------------- Shares repurchased (1,040,539) (4,300,174) (781,031) (3,196,163) - ------------------------------------------------------------------------------------------------- Shares converted from Class B to Class A 9,081 39,320 (9,204) (39,320) - ------------------------------------------------------------------------------------------------- Net increase (decrease) (8,144) $ 34,147 (324,382) $(1,339,685) - ------------------------------------------------------------------------------------------------- ENHANCED NASDAQ-100 FUND FOR THE YEAR ENDED SEPTEMBER 30, 2001: - ------------------------------------------------------------------------------------------------- Shares sold 6,443,151 $44,106,524 3,202,645 $20,389,210 - ------------------------------------------------------------------------------------------------- Shares repurchased (5,265,194) (31,289,456) (1,959,106) (11,387,650) - ------------------------------------------------------------------------------------------------- Shares converted from Class B to Class A 8,108 47,806 (8,161) (47,806) - ------------------------------------------------------------------------------------------------- Net increase 1,186,065 $12,864,874 1,235,378 $ 8,953,754 - -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 36 UBS Global Asset Management UBS Securities Trust Notes to Financial Statements (unaudited)
CLASS C CLASS Y - ------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------- 661,186 $ 5,021,563 1,212,530 $ 8,950,350 - ------------------------------------------------------------------- (281,932) (2,153,444) (120,324) (921,003) - ------------------------------------------------------------------- - - - - - ------------------------------------------------------------------- - - 14,874 114,534 - ------------------------------------------------------------------- 379,254 $ 2,868,119 1,107,080 $ 8,143,881 - ------------------------------------------------------------------- 1,251,111 $10,797,582 3,077,488 $25,772,762 - ------------------------------------------------------------------- (553,481) (4,671,893) (147,918) (1,162,606) - ------------------------------------------------------------------- - - - - - ------------------------------------------------------------------- 2,308 21,210 597 5,497 - ------------------------------------------------------------------- 699,938 $ 6,146,899 2,930,167 $24,615,653 - ------------------------------------------------------------------- 666,447 $ 2,743,131 36,343 $ 144,176 - ------------------------------------------------------------------- (602,527) (2,548,913) (75,204) (314,073) - ------------------------------------------------------------------- - - - - - ------------------------------------------------------------------- 63,920 $ 194,218 (38,861) $ (169,897) - ------------------------------------------------------------------- 3,056,764 $19,165,163 354,220 $ 2,471,558 - ------------------------------------------------------------------- (1,245,233) (6,775,224) (177,283) (943,120) - ------------------------------------------------------------------- - - - - - ------------------------------------------------------------------- 1,811,531 $12,389,939 176,937 $ 1,528,438 - -------------------------------------------------------------------
- -------------------------------------------------------------------------------- UBS Global Asset Management 37 UBS Enhanced S&P 500 Fund Financial Highlights Selected data for a share of beneficial interest outstanding throughout each period is presented below:
CLASS A ------------------------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS FOR THE YEAR APRIL 26, 2000+ ENDED ENDED THROUGH MARCH 31, 2002 SEPTEMBER 30, SEPTEMBER 30, (UNAUDITED) 2001 2000 ------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.07 $ 9.69 $ 10.00 - ----------------------------------------------------------------------------------------------------- Net investment income (loss) 0.02@ 0.03@ 0.01 - ----------------------------------------------------------------------------------------------------- Net realized and unrealized gains (losses) from investments 0.69@ (2.61)@ (0.32) - ----------------------------------------------------------------------------------------------------- Net increase (decrease) from investment operations 0.71 (2.58) (0.31) - ----------------------------------------------------------------------------------------------------- Dividends from net investment income (0.01) (0.02) - - ----------------------------------------------------------------------------------------------------- Distributions from net realized gains from investment transactions - (0.02) - - ----------------------------------------------------------------------------------------------------- Total dividends and distributions to shareholders (0.01) (0.04) - - ----------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 7.77 $ 7.07 $ 9.69 - ----------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN (1) 10.08% (26.77)% (3.10)% - ----------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $ 15,710 $ 15,526 $ 8,197 - ----------------------------------------------------------------------------------------------------- Expenses to average net assets, net of waivers from advisor 0.98%* 0.98% 0.98%* - ----------------------------------------------------------------------------------------------------- Expenses to average net assets, before waivers from advisor 0.93%*(2) 1.31% 4.29%* - ----------------------------------------------------------------------------------------------------- Net investment income (loss) to average net assets, net of waivers from advisor 0.45%* 0.37% 0.24%* - ----------------------------------------------------------------------------------------------------- Net investment income (loss) to average net assets, before waivers from advisor 0.50%*(2) 0.04% (3.05)%* - ----------------------------------------------------------------------------------------------------- Portfolio turnover 45% 63% 74% - -----------------------------------------------------------------------------------------------------
* Annualized. + Commencement of operations. (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or program fees; results would be lower if they were included. Total investment return for periods less than one year has not been annualized. (2) For the six months ended March 31, 2002, the Investment Advisor was reimbursed for expenses previously paid by the Investment Advisor on behalf of the Fund, not to exceed the Fund's expense cap of 0.98% for Class A. # Actual amount is less than $(0.005) per share. @ Calculated using the average monthly shares outstanding for the period. - -------------------------------------------------------------------------------- 38 UBS Enhanced S&P 500 Fund Financial Highlights
CLASS B ------------------------------------------------------ FOR THE FOR THE PERIOD SIX MONTHS FOR THE YEAR APRIL 26, 2000+ ENDED ENDED THROUGH MARCH 31, 2002 SEPTEMBER 30, SEPTEMBER 30, (UNAUDITED) 2001 2000 ------------------------------------------------------ $ 7.04 $ 9.68 $ 10.00 - ------------------------------------------------------------- 0.00@# 0.00 @# (0.01) - ------------------------------------------------------------- 0.70@ (2.62)@ (0.31) - ------------------------------------------------------------- 0.70 (2.62) (0.32) - ------------------------------------------------------------- - - - - ------------------------------------------------------------- - (0.02) - - ------------------------------------------------------------- - (0.02) - - ------------------------------------------------------------- $ 7.74 $ 7.04 $ 9.68 - ------------------------------------------------------------- 9.94% (27.13)% (3.20)% - ------------------------------------------------------------- $ 13,062 $ 9,596 $ 7,735 - ------------------------------------------------------------- 1.38%* 1.38% 1.38%* - ------------------------------------------------------------- 1.39%* 1.80% 4.88%* - ------------------------------------------------------------- 0.05%* (0.05)% (0.20)%* - ------------------------------------------------------------- 0.04%* (0.47)% (3.70)%* - ------------------------------------------------------------- 45% 63% 74% - -------------------------------------------------------------
- -------------------------------------------------------------------------------- 39 UBS Enhanced S&P 500 Fund Financial Highlights
CLASS C ------------------------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS FOR THE YEAR APRIL 26, 2000+ ENDED ENDED THROUGH MARCH 31,2002 SEPTEMBER 30, SEPTEMBER 30, (UNAUDITED) 2001 2000 ------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.03 $ 9.68 $ 10.00 - ----------------------------------------------------------------------------------------------------- Net investment income (loss) 0.00@# 0.00 @# (0.01) - ----------------------------------------------------------------------------------------------------- Net realized and unrealized gains (losses) from investments 0.70@ (2.62)@ (0.31) - ----------------------------------------------------------------------------------------------------- Net increase (decrease) from investment operations 0.70 (2.62) (0.32) - ----------------------------------------------------------------------------------------------------- Dividends from net investment income - (0.01) - - ----------------------------------------------------------------------------------------------------- Distributions from net realized gains from investment transactions - (0.02) - - ----------------------------------------------------------------------------------------------------- Total dividends and distributions to shareholders - (0.03) - - ----------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 7.73 $ 7.03 $ 9.68 - ----------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN (1) 9.96% (27.16)% (3.20)% - ----------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $11,497 $7,796 $ 3,954 - ----------------------------------------------------------------------------------------------------- Expenses to average net assets, net of waivers from advisor 1.38%* 1.38% 1.38%* - ----------------------------------------------------------------------------------------------------- Expenses to average net assets, before waivers from advisor 1.37%*(2) 1.75% 4.88%* - ----------------------------------------------------------------------------------------------------- Net investment income (loss) to average net assets, net of waivers from advisor 0.05%* (0.04)% (0.21)%* - ----------------------------------------------------------------------------------------------------- Net investment income (loss) to average net assets, before waivers from advisor 0.06%*(2) (0.41)% (3.71)%* - ----------------------------------------------------------------------------------------------------- Portfolio turnover 45% 63% 74%
* Annualized. + Commencement of operations. (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or program fees; results would be lower if they were included. Total investment return for periods less than one year has not been annualized. (2) For the six months ended March 31, 2002, the Investment Advisor was reimbursed for expenses previously paid by the Investment Adviser on behalf of the Fund, not to exceed the Fund's expense cap of 1.38% and 0.73% for classes C and Y, respectively. # Actual amount is less than $(0.005) per share. @ Calculated using the average monthly shares outstanding for the period. - -------------------------------------------------------------------------------- 40 UBS Enhanced S&P 500 Fund Financial Highlights
CLASS Y -------------------------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS FOR THE YEAR APRIL 26, 2000+ ENDED ENDED THROUGH MARCH 31, 2002 SEPTEMBER 30, SEPTEMBER 30, (UNAUDITED) 2001 2000 -------------------------------------------------------- $ 7.09 $ 9.71 $ 10.00 - --------------------------------------------------------------- 0.03@ 0.05 @ 0.01 - --------------------------------------------------------------- 0.70@ (2.63)@ (0.30) - --------------------------------------------------------------- 0.73 (2.58) (0.29) - --------------------------------------------------------------- (0.03) (0.02) - - --------------------------------------------------------------- - (0.02) - - --------------------------------------------------------------- (0.03) (0.04) - - --------------------------------------------------------------- $ 7.79 $ 7.09 $ 9.71 - --------------------------------------------------------------- 10.28% (26.65)% (2.90)% - --------------------------------------------------------------- $ 31,958 $ 21,235 $ 615 - --------------------------------------------------------------- 0.67%* 0.73% 0.73%* - --------------------------------------------------------------- 0.64%*(2) 0.76% 4.23%* - --------------------------------------------------------------- 0.75%* 0.67% 0.41%* - --------------------------------------------------------------- 0.78%*(2) 0.64% (3.09)%* - --------------------------------------------------------------- 45% 63% 74% - ---------------------------------------------------------------
- -------------------------------------------------------------------------------- 41 UBS Enhanced Nasdaq-100 Fund Financial Highlights Selected data for a share of beneficial interest outstanding throughout each period is presented below:
CLASS A ------------------------------------------------------ FOR THE FOR THE PERIOD SIX MONTHS FOR THE YEAR APRIL 26, 2000+ ENDED ENDED THROUGH MARCH 31, 2002 SEPTEMBER 30, SEPTEMBER 30, (UNAUDITED) 2001 2000 ------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 3.24 $ 9.83 $ 10.00 - ----------------------------------------------------------------------------------------------------- Net investment loss (0.03) (0.07)@ (0.04) - ----------------------------------------------------------------------------------------------------- Net realized and unrealized gains (losses) from investments 0.80 (6.52)@ (0.13) - ----------------------------------------------------------------------------------------------------- Net increase (decrease) from investment operations 0.77 (6.59) (0.17) - ----------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 4.01 $ 3.24 $ 9.83 - ----------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN (1) 23.77% (67.04)% (1.70)% - ----------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $ 15,050 $ 12,187 $ 25,301 - ----------------------------------------------------------------------------------------------------- Expenses to average net assets, net of waivers from advisor 1.28%* 1.28% 1.28%* - ----------------------------------------------------------------------------------------------------- Expenses to average net assets, before waivers from advisor 1.61%* 1.62% 2.07%* - ----------------------------------------------------------------------------------------------------- Net investment loss to average net assets, net of waivers from advisor (1.21)%* (1.21)% (1.25)%* - ----------------------------------------------------------------------------------------------------- Net investment loss to average net assets, before waivers from advisor (1.54)%* (1.55)% (2.04)%* - ----------------------------------------------------------------------------------------------------- Portfolio turnover 14% 29% 5% - -----------------------------------------------------------------------------------------------------
* Annualized. + Commencement of operations. (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or program fees; results would be lower if they were included. Total investment return for periods less than one year has not been annualized. @ Calculated using the average monthly shares outstanding for the period. - -------------------------------------------------------------------------------- 42 UBS Enhanced Nasdaq-100 Fund Financial Highlights
CLASS B ------------------------------------------------------ FOR THE FOR THE PERIOD SIX MONTHS FOR THE YEAR APRIL 26, 2000+ ENDED ENDED THROUGH MARCH 31, 2002 SEPTEMBER 30, SEPTEMBER 30, (UNAUDITED) 2001 2000 ------------------------------------------------------ $ 3.21 $ 9.80 $ 10.00 - --------------------------------------------------------------- (0.04) (0.11)@ (0.06) - --------------------------------------------------------------- 0.78 (6.48)@ (0.14) - --------------------------------------------------------------- 0.74 (6.59) (0.20) - --------------------------------------------------------------- $ 3.95 $ 3.21 $ 9.80 - --------------------------------------------------------------- 23.05% (67.24)% (2.00)% - --------------------------------------------------------------- $ 18,814 $ 16,299 $ 37,714 - --------------------------------------------------------------- 2.03%* 2.03% 2.03%* - --------------------------------------------------------------- 2.47%* 2.42% 2.82%* - --------------------------------------------------------------- (1.96)%* (1.96)% (2.00)%* - --------------------------------------------------------------- (2.40)%* (2.35)% (2.79)%* - --------------------------------------------------------------- 14% 29% 5%
- -------------------------------------------------------------------------------- 43 UBS Enhanced Nasdaq-100 Fund Financial Highlights
CLASS C ------------------------------------------------------ FOR THE FOR THE PERIOD SIX MONTHS FOR THE YEAR APRIL 26, 2000+ ENDED ENDED THROUGH MARCH 31, 2002 SEPTEMBER 30, SEPTEMBER 30, (UNAUDITED) 2001 2000 ------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 3.21 $ 9.80 $ 10.00 - ---------------------------------------------------------------------------------------------------- Net investment loss (0.04) (0.11)@ (0.06) - ---------------------------------------------------------------------------------------------------- Net realized and unrealized gains (losses) from investments 0.78 (6.48)@ (0.14) - ---------------------------------------------------------------------------------------------------- Net increase (decrease) from investment operations 0.74 (6.59) (0.20) - ---------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 3.95 $ 3.21 $ 9.80 - ---------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN (1) 23.05% (67.24)% (2.00)% - ---------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $ 17,099 $ 13,663 $24,012 - ---------------------------------------------------------------------------------------------------- Expenses to average net assets, net of waivers from advisor 2.03%* 2.03% 2.03%* - ---------------------------------------------------------------------------------------------------- Expenses to average net assets, before waivers from advisor 2.39%* 2.36% 2.82%* - ---------------------------------------------------------------------------------------------------- Net investment loss to average net assets, net of waivers from advisor (1.96)%* (1.96)% (2.00)%* - ---------------------------------------------------------------------------------------------------- Net investment loss to average net assets, before waivers from advisor (2.32)%* (2.29)% (2.79)%* - ---------------------------------------------------------------------------------------------------- Portfolio turnover 14% 29% 5% - ----------------------------------------------------------------------------------------------------
* Annualized. + Commencement of operations. (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges or program fees; results would be lower if they were included. Total investment return for periods less than one year has not been annualized. @ Calculated using the average monthly shares outstanding for the period. - -------------------------------------------------------------------------------- 44 UBS Enhanced Nasdaq-100 Fund Financial Highlights
CLASS Y ------------------------------------------------------ FOR THE FOR THE PERIOD SIX MONTHS FOR THE YEAR APRIL 26, 2000+ ENDED ENDED THROUGH MARCH 31, 2002 SEPTEMBER 30, SEPTEMBER 30, (UNAUDITED) 2001 2000 ------------------------------------------------------ $ 3.25 $ 9.84 $ 10.00 - ------------------------------------------------------------- (0.02) (0.05)@ (0.03) - ------------------------------------------------------------- 0.80 (6.54)@ (0.13) - ------------------------------------------------------------- 0.78 (6.59) (0.16) - ------------------------------------------------------------- $ 4.03 $ 3.25 $ 9.84 - ------------------------------------------------------------- 24.00% (66.97)% (1.60)% - ------------------------------------------------------------- $ 1,269 $ 1,151 $ 1,740 - ------------------------------------------------------------- 1.03%* 1.03% 1.03%* - ------------------------------------------------------------- 1.45%* 1.40% 2.02%* - ------------------------------------------------------------- (0.96)%* (0.96)% (1.00)%* - ------------------------------------------------------------- (1.38)%* (1.33)% (1.99)%* - ------------------------------------------------------------- 14% 29% 5% - -------------------------------------------------------------
- -------------------------------------------------------------------------------- 45 (This page has been left blank intentionally.) (This page has been left blank intentionally.) (This page has been left blank intentionally.) TRUSTEES E. Garrett Bewkes, Jr. George W. Gowen Chairman William W. Hewitt, Jr. Margo N. Alexander Morton L. Janklow Richard Q. Armstrong Frederic V. Malek David J. Beaubien Carl W. Schafer Richard R. Burt William D. White Meyer Feldberg PRINCIPAL OFFICERS Brian M. Storms John J. Holmgren President Vice President Amy R. Doberman John J. Holmgren, Jr. Vice President and Secretary Vice President Paul H. Schubert Vice President and Treasurer INVESTMENT ADVISOR, ADMINISTRATOR AND PRINCIPAL UNDERWRITER UBS Global Asset Management (US), Inc. 51 West 52nd Street New York, New York 10019-6114 Sub-Advisor DSI International Management, Inc. 301 Merritt 7 Norwalk, CT 06851 This report is not to be used in connection with the offering of shares of the Funds unless accompanied or preceded by an effective prospectus. The financial information included herein is taken from the records of the Funds without examination by independent auditors who do not express an opinion thereon. [GRAPHIC OMITTED] UBS Global Asset Management [GRAPHIC OMITTED] UBS +---------------+ | | UBS GLOBAL ASSET MANAGEMENT (US) Inc. | | 51 West 52nd Street | | New York, NY 10019 | | | | +---------------+ -----END PRIVACY-ENHANCED MESSAGE-----